US Reliability Questioned Overseas

That “Smart Diplomacy” Is Really Paying Off

 

 

 

 

” An unmistakable sense of unease has been growing in capitals around the world as the U.S. government from afar looks increasingly befuddled – shirking from a military confrontation in Syria, stymied at home by a gridlocked Congress and in danger of defaulting on sovereign debt, which could plunge the world’s financial system into chaos.

While each of the factors may be unrelated to the direct exercise of U.S. foreign policy, taken together they give some allies the sense that Washington is not as firm as it used to be in its resolve and its financial capacity, providing an opening for China or Russia to fill the void, an Asian foreign minister told a group of journalists in New York this week.

Concerns will only deepen now that President Barack Obama canceled travel this weekend to the Asia Pacific Economic Cooperation Forum in Bali and the East Asia Summit in Brunei. He pulled out of the gatherings to stay home to deal with the government shutdown and looming fears that Congress will block an increase in U.S. borrowing power, a move that could lead to a U.S. default.

The political turbulence in Washington and potential economic bombshells still to come over the U.S. government shutdown and a possible debt default this month have sent shivers through Europe. The head of the European Central Bank, Mario Draghi, worried about the continent’s rebound from the 2008 economic downturn.

“We view this recovery as weak, as fragile, as uneven,” Draghi said at a news conference.

As Europe worries about economics, Asian allies watch in some confusion about what the U.S. is up to with its promise to rebalance military forces and diplomacy in the face of an increasingly robust China.

Global concerns about U.S. policy came to a head with Obama’s handling of the civil war in Syria and the alleged use of chemical weapons by the regime of President Bashar Assad. But, in fact, the worries go far deeper.”

 

 

 

Read the whole scathing piece on the diminution of the USA under Obama.

 

 

 

 

 

 

 

 

 

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Cyprus Robbery Rising From 10% To 25%

Cyprus Depositor Haircut: 25% Off the Top for the Rich

 

 

” Cyprus said on Saturday it was looking at seizing a quarter of the value of big deposits at its largest bank as it races to raise the funds for a bailout from the European Union and avert financial collapse.

Finance Minister Michael Sarris said “significant progress” had been made in talks in Nicosia with officials from the European Union, European Central Bank and International Monetary Fund.

He confirmed discussions were centered on a possible levy of around 25 percent on holdings of over 100,000 euros at Bank of Cyprus, and expressed hope that a package could be ready by the end of the day for approval by parliament.”

Related articles

• Cyprus discussing 25% levy on big bank savers (itv.com)
• DISY apologises to Cyprus but says ‘we all share the blame’ (cyprus-mail.com)
• Cyprus considers 25 percent bank account levy (worldnews.nbcnews.com)
• Cyprus, Troika agree to 20% tax on deposits over 100,000 euros at Bank of Cyprus (rt.com)
• Cyprus closes in on EU bailout, U-turn on levy (ekathimerini.com)

 

 

 

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