US unemployment rate reaches 9.8%

Friday, October 2, 2009

Companies in the United States are shedding more jobs, pushing the country’s unemployment rate to a 26-year high of 9.8%.

The US Labor Department said on Friday that employers cut 263,000 jobs in September, with companies in the service industries — including banks, restaurants and retailers — hit especially hard. This is the 21st consecutive month of job losses in the country.

The United States has now lost 7.2 million jobs since the recession officially began in December 2007. The new data has sparked fears that unemployment could threaten an economic recovery. Top US officials have warned that any recovery would be slow and uneven, and some have predicted the unemployment rate will top 10% before the situation improves.

“Continued household deleveraging and rising unemployment may weigh more on consumption than forecast, and accelerating corporate and commercial property defaults could slow the improvement in financial conditions,” read a report by the International Monetary Fund’s World Economic Outlook, predicting that unemployment will average 10.1% by next year and not go back down to five percent until 2014.

Mark Zandi, chief economist at Moody’s Economy.com, said that “it’s a very fragile and tentative recovery. Policy makers need to do more.”

“The number came in weaker than expected. We saw a lot of artificial involvement by the government to prop up the markets, and now that that is starting to end, the private sector isn’t yet showing signs of life,” said Kevin Caron, a market strategist for Stifel, Nicolaus & Co.

Also on Thursday, the US Commerce Department said factory orders fell for the first time in five months, dropping eight-tenths of a percent in August. Orders for durable goods — items intended to last several years (including everything from appliances to airliners) — fell 2.6%, the largest drop since January of this year.

The US government has been spending billions of dollars — part of a $787 billion stimulus package — to help spark economic growth. There have been some signs the economy is improving.

The Commerce Department said on Thursday that spending on home construction jumped in August for its biggest increase in 16 years. A real estate trade group, the National Association of Realtors, said pending sales of previously owned homes rose more than 12 percent in August, compared to August 2008.

A separate Commerce Department report said that consumer spending, which accounts for more than two-thirds of US economic activity, rose at its fastest pace in nearly eight years, jumping 1.3 percent in August.

Other reports have provided cause for concern. A banking industry trade group said Thursday the number of US consumers making late payments, or failing to make payments, on loans and credit cards is on the rise. A survey by a business group, the Institute for Supply Management, Thursday showed US manufacturing grew in September, but at a slower pace than in August when manufacturing increased for the first time in a year and a half.

Stock markets reacted negatively to the reports. The Dow Jones Industrial Average fell 41 points in early trading, reaching a level of 9467. This follows a drop of 203 points on Thursday, its largest loss in a single day since July. The London FTSE index fell 55 points, or 1.1%, to reach 4993 points by 15.00 local time.

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Asbestos controversy aboard Scientology ship Freewinds

Friday, May 16, 2008

Controversy has arisen over the reported presence of blue asbestos on the MV Freewinds, a cruise ship owned by the Church of Scientology. According to the Saint Martin newspaper The Daily Herald and the shipping news journal Lloyd’s List, the Freewinds was sealed in April and local public health officials on the Caribbean island of Curaçao where the ship is docked began an investigation into the presence of asbestos dust on the ship. Former Scientologist Lawrence Woodcraft supervised work on the ship in 1987, and attested to the presence of blue asbestos on the Freewinds in an affidavit posted to the Internet in 2001. Woodcraft, a licensed architect by profession, gave a statement to Wikinews and commented on the recent events.

According to The Daily Herald, the Freewinds was in the process of being renovated by the Curaçao Drydock Company. The article states that samples taken from paneling in the ship were sent to the Netherlands, where an analysis revealed that they “contained significant levels of blue asbestos”. An employee of the Curaçao Drydock Company told Radar Online in an April 30 article that the Freewinds has been docked and sealed, and confirmed that an article about asbestos ran in the local paper.

Lloyd’s List reported that work on the interior of the Freewinds was suspended on April 27 after health inspectors found traces of blue asbestos on the ship. According to Lloyd’s List, Frank Esser, Curaçao Drydock Company’s interim director, joined Curaçao’s head of the department of labor affairs Christiene van der Biezen along with the head of the local health department Tico Ras and two inspectors in an April 25 inspection of the ship. “We are sending someone so that they can tell us what happened, where it came from, since when it has been there,” said Panama Maritime Authority’s director of merchant marine Alfonso Castillero in a statement to Lloyd’s List.

The Church of Scientology purchased the ship, then known as the Bohème, in 1987, through an organization called Flag Ship Trust. After being renovated and refitted, it was put into service in June 1988. The ship is used by the Church of Scientology for advanced Scientology training in “Operating Thetan” levels, as well as for spiritual retreats for its members. Curaçao has been the ship’s homeport since it was purchased by the Church of Scientology.

According to his 2001 statement, Lawrence Woodcraft had been an architect in London, England since 1975, and joined Scientology’s elite “Sea Organization” (Sea Org) in 1986. He wrote that he was asked by the Sea Org to work on the Freewinds in 1987, and during his work on the ship “noticed a powdery blue fibrous substance approximately 1 ½” thick between the paint and the steel wall,” which he believed to be asbestos. He also discovered what he thought was blue asbestos in other parts of the ship, and reported his findings to Church of Scientology executives. Woodcraft discussed his experiences in a 2001 interview published online by the Lisa McPherson Trust, a now-defunct organization which was critical of the Church of Scientology.

The Freewinds regularly inspects the air quality on board and always meets or exceeds US standards.

Church of Scientology spokeswoman Karin Pouw responded to Radar Online about the asbestos reports, in an email published in an article in Radar on May 1. “The Freewinds regularly inspects the air quality on board and always meets or exceeds US standards,” said Pouw. She stated that two inspections performed in April “confirmed that the air quality is safe,” and asserted that the inspections revealed the Freewinds satisfies standards set by the United States Occupational Safety and Health Administration and the U.S. Clean Air Act.

Pouw told Radar that “The Freewinds will be completing its refit on schedule.” The Church of Scientology-affiliated organization Citizens Commission on Human Rights (CCHR) had been planning a cruise aboard the Freewinds scheduled for May 8, but according to Radar an individual who called the booking number for the cruise received a message that the cruise had been delayed due to ongoing work on the ship. Citing an article in the Netherlands Antilles newspaper Amigoe, Radar reported on May 6 that a team from the United States and supervised by an independent bureau from the Netherlands traveled to Curaçao in order to remove asbestos from the Freewinds.

…if the Church of Scientology claims to have removed the blue asbestos, I just don’t see how, it’s everywhere. You would first have to remove all the pipes, plumbing, a/c ducts, electrical wiring etc. etc. just a maze of stuff.

“I stand by everything I wrote in my 2001 affidavit,” said Lawrence Woodcraft in an exclusive statement given to Wikinews. Woodcraft went on to state: “I would also comment that if the Church of Scientology claims to have removed the blue asbestos, I just don’t see how, it’s everywhere. You would first have to remove all the pipes, plumbing, a/c ducts, electrical wiring etc. etc. just a maze of stuff. Also panelling as well, basically strip the ship back to a steel hull. Also blue asbestos is sprayed onto the outer walls and then covered in paint. It’s in every nook and cranny.”

Many Scientologist celebrities have spent time aboard the Freewinds, including Tom Cruise, Katie Holmes, John Travolta, Kelly Preston, Chick Corea, Lisa Marie Presley, Catherine Bell, Kate Ceberano, and Juliette Lewis. Now magazine reported that Tom Cruise has been urged to seek medical attention regarding potential asbestos exposure, however a representative for Cruise stated he has “absolutely no knowledge” of the recent asbestos controversy. Cruise, Holmes, Travolta and Preston have celebrated birthdays and other events on the Freewinds.

There is not now and never has been a situation of asbestos exposure on the Freewinds.

In a May 15 statement to the United Kingdom daily newspaper Metro, a representative for the Church of Scientology said that “There is not now and never has been a situation of asbestos exposure on the Freewinds.” The Asbestos and Mesothelioma Center notes that agencies have recommended anyone who has spent time on the Freewinds consult with their physician to determine if possible asbestos exposure may have affected their health.

Raw blue asbestos is the most hazardous form of asbestos, and has been banned in the United Kingdom since 1970. Blue asbestos fibers are very narrow and thus easily inhaled, and are a major cause of mesothelioma. Mesothelioma is a form of cancer which can develop in the lining of the lungs and chest cavity, the lining of the abdominal cavity, or the pericardium sac surrounding the heart. The cancer is incurable, and can manifest over 40 years after the initial exposure to asbestos.

“This is the most dangerous type of asbestos because the fibres are smaller than the white asbestos and can penetrate the lung more easily,” said toxicologist Dr. Chris Coggins in a statement published in OK! Magazine. Dr. Coggins went on to note that “Once diagnosed with mesothelioma, the victim has six months to a year to live. It gradually reduces lung function until the victim is no longer able to breathe and dies.”

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Stanford physicists print smallest-ever letters ‘SU’ at subatomic level of 1.5 nanometres tall

Wednesday, February 4, 2009

A new historic physics record has been set by scientists for exceedingly small writing, opening a new door to computing‘s future. Stanford University physicists have claimed to have written the letters “SU” at sub-atomic size.

Graduate students Christopher Moon, Laila Mattos, Brian Foster and Gabriel Zeltzer, under the direction of assistant professor of physics Hari Manoharan, have produced the world’s smallest lettering, which is approximately 1.5 nanometres tall, using a molecular projector, called Scanning Tunneling Microscope (STM) to push individual carbon monoxide molecules on a copper or silver sheet surface, based on interference of electron energy states.

A nanometre (Greek: ?????, nanos, dwarf; ?????, metr?, count) is a unit of length in the metric system, equal to one billionth of a metre (i.e., 10-9 m or one millionth of a millimetre), and also equals ten Ångström, an internationally recognized non-SI unit of length. It is often associated with the field of nanotechnology.

“We miniaturised their size so drastically that we ended up with the smallest writing in history,” said Manoharan. “S” and “U,” the two letters in honor of their employer have been reduced so tiny in nanoimprint that if used to print out 32 volumes of an Encyclopedia, 2,000 times, the contents would easily fit on a pinhead.

In the world of downsizing, nanoscribes Manoharan and Moon have proven that information, if reduced in size smaller than an atom, can be stored in more compact form than previously thought. In computing jargon, small sizing results to greater speed and better computer data storage.

“Writing really small has a long history. We wondered: What are the limits? How far can you go? Because materials are made of atoms, it was always believed that if you continue scaling down, you’d end up at that fundamental limit. You’d hit a wall,” said Manoharan.

In writing the letters, the Stanford team utilized an electron‘s unique feature of “pinball table for electrons” — its ability to bounce between different quantum states. In the vibration-proof basement lab of Stanford’s Varian Physics Building, the physicists used a Scanning tunneling microscope in encoding the “S” and “U” within the patterns formed by the electron’s activity, called wave function, arranging carbon monoxide molecules in a very specific pattern on a copper or silver sheet surface.

“Imagine [the copper as] a very shallow pool of water into which we put some rocks [the carbon monoxide molecules]. The water waves scatter and interfere off the rocks, making well defined standing wave patterns,” Manoharan noted. If the “rocks” are placed just right, then the shapes of the waves will form any letters in the alphabet, the researchers said. They used the quantum properties of electrons, rather than photons, as their source of illumination.

According to the study, the atoms were ordered in a circular fashion, with a hole in the middle. A flow of electrons was thereafter fired at the copper support, which resulted into a ripple effect in between the existing atoms. These were pushed aside, and a holographic projection of the letters “SU” became visible in the space between them. “What we did is show that the atom is not the limit — that you can go below that,” Manoharan said.

“It’s difficult to properly express the size of their stacked S and U, but the equivalent would be 0.3 nanometres. This is sufficiently small that you could copy out the Encyclopaedia Britannica on the head of a pin not just once, but thousands of times over,” Manoharan and his nanohologram collaborator Christopher Moon explained.

The team has also shown the salient features of the holographic principle, a property of quantum gravity theories which resolves the black hole information paradox within string theory. They stacked “S” and the “U” – two layers, or pages, of information — within the hologram.

The team stressed their discovery was concentrating electrons in space, in essence, a wire, hoping such a structure could be used to wire together a super-fast quantum computer in the future. In essence, “these electron patterns can act as holograms, that pack information into subatomic spaces, which could one day lead to unlimited information storage,” the study states.

The “Conclusion” of the Stanford article goes as follows:

According to theory, a quantum state can encode any amount of information (at zero temperature), requiring only sufficiently high bandwidth and time in which to read it out. In practice, only recently has progress been made towards encoding several bits into the shapes of bosonic single-photon wave functions, which has applications in quantum key distribution. We have experimentally demonstrated that 35 bits can be permanently encoded into a time-independent fermionic state, and that two such states can be simultaneously prepared in the same area of space. We have simulated hundreds of stacked pairs of random 7 times 5-pixel arrays as well as various ideas for pathological bit patterns, and in every case the information was theoretically encodable. In all experimental attempts, extending down to the subatomic regime, the encoding was successful and the data were retrieved at 100% fidelity. We believe the limitations on bit size are approxlambda/4, but surprisingly the information density can be significantly boosted by using higher-energy electrons and stacking multiple pages holographically. Determining the full theoretical and practical limits of this technique—the trade-offs between information content (the number of pages and bits per page), contrast (the number of measurements required per bit to overcome noise), and the number of atoms in the hologram—will involve further work.—Quantum holographic encoding in a two-dimensional electron gas, Christopher R. Moon, Laila S. Mattos, Brian K. Foster, Gabriel Zeltzer & Hari C. Manoharan

The team is not the first to design or print small letters, as attempts have been made since as early as 1960. In December 1959, Nobel Prize-winning physicist Richard Feynman, who delivered his now-legendary lecture entitled “There’s Plenty of Room at the Bottom,” promised new opportunities for those who “thought small.”

Feynman was an American physicist known for the path integral formulation of quantum mechanics, the theory of quantum electrodynamics and the physics of the superfluidity of supercooled liquid helium, as well as work in particle physics (he proposed the parton model).

Feynman offered two challenges at the annual meeting of the American Physical Society, held that year in Caltech, offering a $1000 prize to the first person to solve each of them. Both challenges involved nanotechnology, and the first prize was won by William McLellan, who solved the first. The first problem required someone to build a working electric motor that would fit inside a cube 1/64 inches on each side. McLellan achieved this feat by November 1960 with his 250-microgram 2000-rpm motor consisting of 13 separate parts.

In 1985, the prize for the second challenge was claimed by Stanford Tom Newman, who, working with electrical engineering professor Fabian Pease, used electron lithography. He wrote or engraved the first page of Charles Dickens’ A Tale of Two Cities, at the required scale, on the head of a pin, with a beam of electrons. The main problem he had before he could claim the prize was finding the text after he had written it; the head of the pin was a huge empty space compared with the text inscribed on it. Such small print could only be read with an electron microscope.

In 1989, however, Stanford lost its record, when Donald Eigler and Erhard Schweizer, scientists at IBM’s Almaden Research Center in San Jose were the first to position or manipulate 35 individual atoms of xenon one at a time to form the letters I, B and M using a STM. The atoms were pushed on the surface of the nickel to create letters 5nm tall.

In 1991, Japanese researchers managed to chisel 1.5 nm-tall characters onto a molybdenum disulphide crystal, using the same STM method. Hitachi, at that time, set the record for the smallest microscopic calligraphy ever designed. The Stanford effort failed to surpass the feat, but it, however, introduced a novel technique. Having equaled Hitachi’s record, the Stanford team went a step further. They used a holographic variation on the IBM technique, for instead of fixing the letters onto a support, the new method created them holographically.

In the scientific breakthrough, the Stanford team has now claimed they have written the smallest letters ever – assembled from subatomic-sized bits as small as 0.3 nanometers, or roughly one third of a billionth of a meter. The new super-mini letters created are 40 times smaller than the original effort and more than four times smaller than the IBM initials, states the paper Quantum holographic encoding in a two-dimensional electron gas, published online in the journal Nature Nanotechnology. The new sub-atomic size letters are around a third of the size of the atomic ones created by Eigler and Schweizer at IBM.

A subatomic particle is an elementary or composite particle smaller than an atom. Particle physics and nuclear physics are concerned with the study of these particles, their interactions, and non-atomic matter. Subatomic particles include the atomic constituents electrons, protons, and neutrons. Protons and neutrons are composite particles, consisting of quarks.

“Everyone can look around and see the growing amount of information we deal with on a daily basis. All that knowledge is out there. For society to move forward, we need a better way to process it, and store it more densely,” Manoharan said. “Although these projections are stable — they’ll last as long as none of the carbon dioxide molecules move — this technique is unlikely to revolutionize storage, as it’s currently a bit too challenging to determine and create the appropriate pattern of molecules to create a desired hologram,” the authors cautioned. Nevertheless, they suggest that “the practical limits of both the technique and the data density it enables merit further research.”

In 2000, it was Hari Manoharan, Christopher Lutz and Donald Eigler who first experimentally observed quantum mirage at the IBM Almaden Research Center in San Jose, California. In physics, a quantum mirage is a peculiar result in quantum chaos. Their study in a paper published in Nature, states they demonstrated that the Kondo resonance signature of a magnetic adatom located at one focus of an elliptically shaped quantum corral could be projected to, and made large at the other focus of the corral.

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China calls Japan’s gas drilling plan ‘a serious provocation’

Thursday, April 14, 2005

Chinese Foreign Ministry spokesman Qin Gang told reporters that China is protesting Japan’s plan to allow drilling for gas and oil in disputed waters in the East China Sea, characterizing the move as “a serious provocation”.

On Wednesday, Japan announced that they would begin processing applications to allow oil and gas drilling firms to explore in the disputed area, east of the “demarcation line” which has held up applications to drill in the area for decades.

“The Chinese and Japanese positions differ on that matter, but we need to continue talks from a big point of view, without inflaming conflicts, and to turn the sea of conflict into a sea of coordination,” Japanese Prime Minister Junichiro Koizumi told a news conference.

Qin Gang said that China reserved “the right to take further reaction,” according to Xinhua.

“China has never ever recognized and will never recognize the demarcation line,” Qin told reporters.

Japan’s exploration of the disputed zone could start early next month, and will be defended by Japanese military vessels, according to the Sydney Morning Herald.

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Ontario Votes 2007: Interview with Family Coalition Party candidate Ray Scott, Algoma-Manitoulin

Tuesday, October 2, 2007

Ray Scott is running for the Family Coalition Party in the Ontario provincial election, in the Algoma-Manitoulin riding. Wikinews’ Nick Moreau interviewed him regarding his values, his experience, and his campaign.

Stay tuned for further interviews; every candidate from every party is eligible, and will be contacted. Expect interviews from Liberals, Progressive Conservatives, New Democratic Party members, Ontario Greens, as well as members from the Family Coalition, Freedom, Communist, Libertarian, and Confederation of Regions parties, as well as independents.

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Fuel leak prompts 17,000-vehicle recall by Toyota

Sunday, June 27, 2010

Toyota announced on Friday that it will recall around 17,000 Lexus vehicles in response to risks of the fuel tank in the cars leaking after a collision.

The Lexus HS 250h model was subjected to the recall following a US National Highway Traffic Safety Administration (NHTSA) investigation. Despite previously passing Toyota safety inspections, the conclusions of an NHTSA sub-contracted investigator were that; when the vehicles in question collided with an object at more than fifty-miles-per hour, more than 142 grams of fuel, the maximum allowed by US law, leaked from the crashed car.

According to Toyota, further tests did not show any additional failure of the fuel tank.

In response to the findings, Toyota issued a recall of all affected vehicles, since the company had no solution immediately available. The recall includes 13,000 cars already sold, as well as another 4,000 still at dealerships.

Toyota says it plans to conduct further tests to determine the cause of the leak. A Toyota spokesman, Brian Lyons, said that the company was “still working to determine what the root cause of the condition is.” It’s still unclear when exactly the recall will take place, or when dealerships will be allowed to sell this model again. Lyons said that Toyota is “working feverishly to get this resolved as soon as possible.”

Toyota isn’t aware of any accidents stemming from the leaking fuel tank in the affected vehicles, first introduced in the summer of 2009.

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Middle Eastern troops enter Bahrain after protests

Tuesday, March 15, 2011

Troops from Saudi Arabia and the United Arab Emirates have arrived in Bahrain at the government’s request after major protests on Sunday.

An estimated 1,000 Saudi Arabian troops entered the country early Monday, followed by around 500 troops from the UAE. The troops entered as part of a broader deployment by the Cooperation Council for the Arab States of the Gulf (GCC), a regional group of six countries. It is unclear what purpose the troops are serving, though speculation is that they will guard major infrastructure facilities.

Al Wefaq, the leading opposition party, said it considered “the entry of any soldier or military machinery into the Kingdom of Bahrain’s air, sea or land territories a blatant occupation” and that the presence of foreign troops “puts the Bahraini people in real danger, and threatens them with an undeclared war by armed troops.”

Statements from the US government, a major Bahrain ally, said that “[t]his is not an invasion of a country” and that it urged both the Bahrain government and the GCC “to exercise restraint” and “act in a way that supports dialogue instead of undermining it.”

An official of Iranian Foreign Ministry also criticized the Saudi invasion of Bahrain, saying “it is surprising to see that immediately after the recent trip of the US Defense Secretary [Robert Gates] we see the intensified use of violence against the people of Bahrain.”

The intervention came a day after the country saw the worst protests since February, as several dozen people were injured in clashes with police.

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Ontario Votes 2007: Interview with Family Coalition Party candidate Ray Scott, Algoma-Manitoulin

Tuesday, October 2, 2007

Ray Scott is running for the Family Coalition Party in the Ontario provincial election, in the Algoma-Manitoulin riding. Wikinews’ Nick Moreau interviewed him regarding his values, his experience, and his campaign.

Stay tuned for further interviews; every candidate from every party is eligible, and will be contacted. Expect interviews from Liberals, Progressive Conservatives, New Democratic Party members, Ontario Greens, as well as members from the Family Coalition, Freedom, Communist, Libertarian, and Confederation of Regions parties, as well as independents.

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Asian countries call for global currency

Monday, April 6, 2009

Leaders and central banks in Russia, China, Malaysia, Indonesia, Thailand, and Kazakhstan have called for an international currency system.

Speaking on April 1 in advance of the G-20 summit in London, Russian president Dmitry Medvedev argued that the international finance system needed a “new construction” including “new currency systems”, saying that such a new system could be the purpose of a revamped IMF and World Bank. The IMF was originally founded in 1946 as the overseer of the Bretton Woods system, which from its founding until the 1970s tied the western world’s currencies to the US Dollar, which was in turn backed by gold. Russia’s proposal was for the new currency to serve as a reserve currency, one which would take the place of the dollar, euro, and other heavily-traded currencies as an international standard of exchange.

Medvedev’s comments are a reversal of Russian position from a lukewarm response following a looser outline for a worldwide currency by Kazakhstani president Nursultan Nazarbayev. On March 11, Nazarbayev suggested the establishment of the “acmetal”, a portmanteau of “acme” and “capital“, as a reserve currency replacing the ruble in international transactions, first for Central Asia and then worldwide. 1999 Economics Nobel laureate Robert Mundell, speaking to the Daily Telegraph, endorsed the idea, saying “It would be a very good idea if the G-20 took that idea up in London”.

2001 Nobel economics prize winner Joseph Stiglitz, meanwhile, said the new currency could come about quickly if it was based on an expansion of the IMF’s already established system of Special Drawing Rights, units of exchange used by the IMF which already have some of the features of currency. Stiglitz argued that, as the US dollar has become the standard global reserve currency, it has inadvertently created a system which hurts the world economy. “It’s a net transfer, in a sense, to the United States of foreign aid,” he argued, reasoning that when other countries purchase US dollars in order to use them on international markets (such as for the buying and selling of petroleum), they effectively give the US a zero-interest loan — sometimes at times when they can least afford it. Stiglitz made his comments as head of a United Nations panel of economists giving recommendations to address the global financial crisis.

In the weeks leading up to the G-20 conference, the People’s Republic of China also began discussing a new system for reserve currencies. In a March 23 speech, Zhou Xiaochuan, governor of the People’s Bank of China, endorsed a new reserve currency, saying “the desirable goal of reforming the international monetary system, therefore, is to create an international reserve currency that is disconnected from individual nations and is able to remain stable in the long run, thus removing the inherent deficiencies caused by using credit-based national currencies.” Zhou went on to endorse the expansion of the SDR system in the long-term creation of a reserve currency government by the IMF. While Zhou did not mention the US dollar specifically, analysis by Qu Hongbin, chief China economist for HSBC, for the Financial Times said that the speech “is a clear sign that China, as the largest holder of US dollar financial assets, is concerned about the potential inflationary risk of the US Federal Reserve printing money”.

China holds $740 billion as assets; inflation in the US economy, which has been low in recent years, would directly cause those assets to lose value.

While the Chinese government has engaged in currency swaps with several other growing economies, such as South Korea, Argentina, Malaysia and Indonesia, the Chinese Yuan cannot be used itself as a reserve currency as it cannot be freely traded on the global market.

The Chinese-Russian proposal was not entered onto the agenda at the G-20 meeting itself. Nonetheless, British Prime Minister Gordon Brown said that the G-20 was open to considering the proposal if and when a detailed one is presented. United States President Barack Obama, meanwhile, endorsed the continuation of dollar supremacy, saying that the US dollar is “extraordinarily strong” and arguing that its strength was the result of the intrinsic stability of the United States economic and political system; US treasury secretary Timothy Geithner had, the week before, made comments that while he supported an expansion in the SDR mechanism he rejected the idea of a global currency. Rather than change the role of SDRs, the G-20 meeting instead added $250 billion in support to the fund backing SDRs.

After the G-20 conference ended on Thursday, Malaysia’s The Star BizWeek reported that the central banks of Indonesia, Malaysia and Thailand had endorsed the Chinese proposal. All three countries have close economic ties with China and suffered heavily from the collapse of their currencies in the 1997 Asian Financial Crisis; the sudden growth in the value of the US dollar relative to those countries’ native currencies sharply increased debt in Southeast Asia’s economies, leading to a wave of bankruptcies.

International reaction from other economies has been mixed and guarded. Luiz Inacio Lula da Silva, President of Brazil, said that the currency proposal was important to discuss but did not give extensive comment. And while UPI reports that India supported the SDR proposal at the G-20 conference, the Indian Press Trust quotes Indian Prime Minister Manmohan Singh as saying last month, “It is too early to talk about common currency.”

Calls for an independent global reserve currency are not new. In 1944, John Maynard Keynes proposed the “bancor“, a unit like the SDR supported by a basket of commodities. Keynes’ idea was rejected and the US dollar took the equivalent role under the Bretton Woods system. Keynes proposed that the bancor system would be reinforced by a tax on participating countries’ current accounts, the difference between their exports and their imports, in order to encourage balanced trade. Meanwhile, monetary unions have become more popular since the end of the gold standard, with most of the European Union now trading the euro, and several countries outside the EU using it as a de facto currency; five West African countries adopting the eco at the end of this year; and the African Union planning to introduce the afro in 2028. Proposals for a North American currency union based around the so-called “amero” have been frequently discussed as the focus of conspiracy theories in the United States, but none of the US, Canada or Mexico have actively pursued the establishment of any such monetary union, however the dollar is the currency of several Latin American countries.

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Burris sworn in as US Senator for Illinois

Friday, January 16, 2009

American politician Roland Burris of the United States Democratic Party was sworn in Thursday as US president-elect Barack Obama’s replacement in the United States Senate.

Burris was initially not admitted into the Senate, even though Governor of Illinois Rod Blagojevich appointed him to the position, due to allegations that the governor tried to sell the seat. Blagojevich was arrested and has been impeached for the alleged crime. Burris was denied his position on January 6 by other Democratic members of the Congress because his appointment papers were not signed by Jesse White, the Illinois Secretary of State, who had refused to sign his name due to the charges faced by Blagojevich.

Burris was officially sworn in by United States Vice President Dick Cheney with no objections from other members of the Congress. Harry Reid, the senior Democratic senator from Nevada and majority leader, who had led the opposition to Burris being appointed, welcomed him into the Senate.

“On behalf of all senators, Democrats and Republicans, we welcome you as a colleague and a friend,” Reid said.

“No one’s ever had anything against Sen. Burris. Like any other senator, he’ll have to learn the ropes and not get lost getting to committee hearings, like I have. I think he’ll come in with people open to meeting with him and getting to know him. I think it will be just fine,” said Senator Amy Klobuchar of Minnesota on the matter. Most other comments by senators stated that they were not against Burris as a person, but were against his appointment by Rod Blagojevich.

With the appointment, Burris becomes the only African-American member of the United States Senate. This makes the count of Democrats to Republicans in the Senate 58 Democrats and 41 Republicans, with the final seat waiting on a vote recount ordered by Norm Coleman in his loss to Al Franken of Minnesota.

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