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Generational Dynamics Web Log for 16-Nov-2011
16-Nov-11 World View -- Germany's economy dominates Europe, as bond rout expands

Web Log - November, 2011

16-Nov-11 World View -- Germany's economy dominates Europe, as bond rout expands

Qatar accused of arming opposition, as Syria violence escalates

This morning's key headlines from GenerationalDynamics.com.

* Turkey's Erdogan threatens 'response' to Syria's embassy attack
* Over 70 killed in Syria's bloodiest day
* Qatar accused of arming opposition, as Syria violence escalates
* Defectors in the Free Syrian Army attack regime intelligence complex
* Germany's economy dominates Europe, as bond rout expands
* German official clashes with UK, saying, 'Now Europe is speaking German'
* Deadlocked Congressional 'Super Committee' agree to freeze time
* Islamist terrorist threat grows in Kazakhstan

Turkey's Erdogan threatens 'response' to Syria's embassy attack

Erdogan addresses a parliamentary meeting on Tuesday (AA)

Erdogan addresses a parliamentary meeting on Tuesday (AA)

Turkey's Prime Minister Recep Tayyip Erdogan used his bluntest language yet against Syria's president Bashar al-Assad, even addressing him directly by his first name, following regime-sanctioned attacks on Turkey's embassy in Latakia on Saturday:

"Bashar, you who have thousands of people in jail, must find those who attacked the Turkish flag and punish them.
I want to make this clear to the Assad regime: Throughout history, those who have tried to touch the Turkish flag were given their response. They will receive a response in the future as well. Once again, we strongly condemn these attacks. We want the Syrian regime not only to apologize, but also to find the culprits. ... Those who fire on their own people will go down in history as leaders who feed on blood. You are on the same path. ...
Nobody now expects the (Syrian) people's demands to be met. We all want the Syrian administration, which is now on a knife-edge, to turn back from the edge of the cliff."

Zaman (Istanbul)

Over 70 killed in Syria's bloodiest day

More than 70 people died in one of the bloodiest days of Syria's eight month uprising, activists said on Tuesday, as president Bashar al-Assad's loyalists reacted angrily to the growing harsh criticism from other Arab and Turkish leaders. Around 100 of his supporters stormed the Jordanian embassy in Damascus overnight, after Jordan's King Abdullah II became the first Arab leader to publicly call for Assad to quit. The Assad regime has announced that it will not send a representative to the Arab League meeting on Wednesday, the date of the deadline that was set for Assad to end the violence against protesters. This makes it certain that the suspension will go ahead. AFP

Qatar accused of arming opposition, as Syria violence escalates

The escalating violence in Syria comes amid reports that Qatar is supplying money and arms to the regime's opposition, a claim that the Qataris deny. However, Qatar has taken a leading role in getting the Arab League to suspend Syria, a symbolic act that's taken on huge significance. Independent

Defectors in the Free Syrian Army attack regime intelligence complex

Syrian army defectors attacked an intelligence complex on the edge of Damascus early on Wednesday, in the first reported assault on a major security facility in the eight-month uprising. Members of the Free Syrian Army fired shoulder-mounted rockets and machine guns at a large Air Force Intelligence complex situated on the northern edge of Damascus. A gunfight ensued and helicopters circled the area. Reuters

The international situation with respect to Syria is becoming more dangerous every day. When comparing Libya with Syria, there's an interesting irony. In Libya, the West established a no-fly zone and supported the rebels, with the consent and approval of the Arab League, with the result that the Libyan action was kept under control. But it's pretty clear that the West will not be establishing a no-fly zone over Syria, and will participate little or not at all in a Syrian military action launched by countries like Turkey and Qatar, if one occurs. Without the "calming" influence of the West, it's quite possible that such a military action, if it occurs, will spiral into a regional war. Indeed, Bashar al-Assad has already promised that he will make sure that it happens.

Germany's economy dominates Europe, as bond rout expands

Bond prices in countries across Europe plummeted on Tuesday, pushing bond yields (interest rates) to crisis levels. It's no longer a crisis confined to Greece and Italy; it's now Europe itself that's beginning to experience full scale panic -- almost everywhere except in Germany. The problem is illustrated by the following charts:

Nov 15 bond yields for Germany (1.8%), France (3.7%), Spain (6.1%) and Belgium (4.9%)

Nov 15 bond yields for Germany (1.8%), France (3.7%), Spain (6.1%) and Belgium (4.9%)

Germany is remaining a tower of strength, but bond prices in France, Spain and Belgium are crashing, pushing yields up to crisis levels, indicating a full-scale panic. Italy's bond yields are above 7% again. Even countries like Norway and Finland are experiencing increases in bond yields, though they're still relatively low compared to the others.

The crash in France's bonds is particularly dangerous, as France is considered the strongest economy in Europe, along with Germany. France has been desperate to preserve its AAA rating, but that may now be in jeopardy. Bloomberg

German official clashes with UK, saying, 'Now Europe is speaking German'

Volker Kauder, a senior member of German Chancellor Angela Merkel's conservative Christian Democrats (CDU) party said that Germany's fiscal policies had become a model for the rest of Europe. "Suddenly Europe is speaking German," he said. Kauder added that the UK, as a member of the EU "also carries a responsibility for the success of Europe. Just looking for their own advantage and not being prepared to contribute -- that cannot be the message we accept from the British," he said, referring to Britain's opposition to the financial transaction tax that Germany has been lobbying for in order to raise revenue for future bank bailouts. Britain derives 30% of its economic output from the City of London financial center, and would lose some of that benefit with a financial transaction tax. Germany and Britain are headed for a major collision on this issue, as Merkel has been quoted as saying that she won't let the U.K. "get away" with its refusal to back a financial transaction tax, and British Prime Minister David Cameron dismissed the "utopian" idea, pointing out that 80% of the money collected on the tax would come from Britain. Spiegel and Bloomberg

Deadlocked Congressional 'Super Committee' agree to freeze time

As the deadlocked Congressional "Super Committee" tries to follow Europe's example, the desperate members may have found a way to kick the can down the road. Reports indicate that the members have agreed to freeze time on November 22, so that the deadline date of November 23 never happens. Huffington Post (Satire)

Islamist terrorist threat grows in Kazakhstan

Central Asia, highlighting Islamist groups in North Caucasus, Uzbekistan, Xinjiang

Central Asia, highlighting Islamist groups in North Caucasus, Uzbekistan, Xinjiang

Kazakhstan was once depicted as an island of stability invulnerable to the encroachments of Islamist extremists. However, a recent series of such attacks have forced Kazakh officials to at least partially abandon their blissful state of denial. In May of this year, the first warning came from the Taliban who accused Kazakhstan of supporting NATO forces in Afghanistan. It appears that Islamist extremists are not only targeting the power structures, trying to frustrate government institutions, but also they are attempting to disrupt economic ties between Kazakhstan and western companies, by attacking the oil-producing infrastructure. Jamestown

(Comments: For reader comments, questions and discussion, see the 16-Nov-11 World View -- Germany's economy dominates Europe, as bond rout expands thread of the Generational Dynamics forum. Comments may be posted anonymously.) (16-Nov-2011) Permanent Link
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Generational Dynamics Web Log for 16-Nov-2011 16-Nov-11 World View -- Germany's economy dominates Europe, as bond rout expands

Turkey's Erdogan threatens 'response' to Syria's embassy attack

Over 70 killed in Syria's bloodiest day

Qatar accused of arming opposition, as Syria violence escalates

Defectors in the Free Syrian Army attack regime intelligence complex

Germany's economy dominates Europe, as bond rout expands

German official clashes with UK, saying, 'Now Europe is speaking German'

Deadlocked Congressional 'Super Committee' agree to freeze time

Islamist terrorist threat grows in Kazakhstan

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Generational Dynamics Web Log for 16-Nov-2011
16-Nov-11 World View -- Germany's economy dominates Europe, as bond rout expands