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Thursday, July 21, 2011

Wendi Deng, Murdoch's Tiger wife loyalty and ambition !




Wendi, Rupert Murdoch True to Character, Biographer Says

PHOTO: Wendi and Rupert Murdoch


Rupert and Wendi Murdoch were true to character Tuesday when she went from the statuesque, socialite wife of a media mogul to a protective spouse with a steady right hook, according to Murdoch biographer Michael Wolff.

"I thought, 'That's our Rupert and that's our Wendi,'" Wolff told ABC News of his reaction to the couple's behavior during the otherwise solemn parliamentary hearing.
"She's kind of fearless, actually," he said of Wendi Deng Murdoch.

In an unexpected twist of events at the hearing Tuesday in which Murdoch and son James were peppered with questions about allegations of phone hacking, Murdoch's wife was the first to jump to her husband's side as an attacker threw what looked like a shaving-cream pie in the News Corp. chairman and CEO's face.

Wearing a pink suit jacket, video footage shows Deng, 42 and married to the 80-year-old Murdoch for 12 years, jump up and lunge after the attacker faster than anyone, taking an open-handed swing at the man who was arrested shortly thereafter.



 That doesn't surprise me. She's fairly feisty," said Eric Ellis, who wrote a detailed profile on Deng for the Monthly in June 2007. "I think it was an instinctive reaction that anyone would have … looking after her partner."

But Deng is much more than a protective trophy wife and mother to two of Murdoch's children. She is a Yale University business school graduate and former News Corp. employee who also worked as the head of MySpace China, purchased by Murdoch in 2005.

"She's in there living the life," biographer Wolff said. "This is a woman who came to the U.S. when she was 18 from China, speaking no English, with her first job in a Chinese restaurant.

"She's done it all," he said. "She's had no pretense that she's taking it and grabbing it for herself, and the thing you feel is kind of good for her."

Deng's background is as feisty as the right hook and quick reflexes she displayed to protect her husband as he faced tense questioning by a British parliamentary panel, and now sees his media empire rollicked by scandal and arrests.

Born in the northeastern province of Shandong in China, Deng traveled to California in 1988 at the age of 18 after working as an interpreter in China for a Los Angeles couple, Jake and Joyce Cherry. She stayed in the United States, under a visa sponsored by the Cherrys, to work and to study.

Deng eventually became romantically involved with Jake Cherry and, when the Cherry's marriage ended, Deng and Jake married, only to divorce less than three years later.

"The husband was much more in love with Wendi than Wendi was with the husband," Steve Fishman, contributing editor for New York Magazine told ABC News.
 
Deng's love affair with Murdoch began under a cloud of scandal as well.

The couple met in 1989, when Deng was living in Hong Kong and working for Murdoch's Star TV. They were married in June of 1999, 17 days after his divorce from his second wife of 31 years, Anna Murdoch, was finalized.

"She was interested in his business and he's flattered and says he wants to get to know her," Fishman said of how the couple's relationship grew.

The couple have two young daughters together, Grace and Chloe. Murdoch has four grown children, Prudence from his first marriage and Lachlan, James and Elisabeth from his second marriage to Anna.

Loyal Wife, Family Tensions

"The other thing is nobody really likes Wendi," Wolff said, alluding to family tensions that arose when Deng reportedly battled Murdoch's adult children to secure a voting position for her children in the family trust, giving them access to a stake of News Corp., worth billions of dollars.

"Despite all this, she has persevered ...," Wolff said. "The feeling you come away with is this is a person with incredible faith and vitality."

Rupert Murdoch's Wife Hits Attacker Watch Video

Rupert Murdoch Testimony: Headlines Watch Video

Rupert Murdoch: When Protesters Attack Watch Video
 
As Murdoch's wife, Deng became a red-carpet regular in the United States herself, counting many of the rich and famous among her friends.

Just as the scandal embroiling her husband and her family's fortunes exploded this weekend, Deng was in New York's glitzy Hamptons, attending a screening of the film she produced, the just-released "Snow Flower and the Secret Fan," a story set in 19th century China about the tough cultural norms imposed on women.

She reportedly flew to London Tuesday to be there for her husband's hearing.

"Their relationship has changed over the years, she provided him company and comfort in the early days," the Monthly's Ellis said. "[She's] probably become closer to him and more of an advisor more recently."

The Associated Press contributed to this story.

Murdoch’s wife leaps into global spotlight
(AFP)

Shanghai — Wendi Deng, who has emerged as an unlikely heroine after leaping to defend her 80-year-old husband Rupert Murdoch from a pie-wielding protester, has a reputation for fierce loyalty and ambition.

Her full-blooded swing at her husband’s assailant during a British parliamentary hearing on the News of the World phone hacking scandal has catapulted the former volleyball player into the global spotlight.

But even before that, the Chinese-born American was known as a formidable operator at the heart of one of the world’s most powerful families.
Although she holds no formal role in the company, Deng remains a constant presence at her husband’s side and is said to take an active interest in his business affairs.
The couple’s two young daughters will inherit a large stake in Murdoch’s News Corporation — a huge media conglomerate that owns newspapers and television companies around the world, including Fox and Sky TV.
Deng, who at 42 is 38 years Murdoch’s junior, met her media tycoon husband while working at his Star Television company in Hong Kong, where former colleagues have described her as an expert networker with big ambitions.
Born in the eastern Chinese city of Xuzhou in 1968 — at the height of the Cultural Revolution — she left China aged 19 to study in the United States, where she befriended an American couple, Jake and Joyce Cherry.
Deng initially lived in the couple’s California home, but moved out after Joyce discovered that she and Jake were having an affair.
The pair were married, but divorced after less than three years together, during which time Deng took US citizenship.
After graduating from Yale School of Management in 1996, she took an internship with Star, where she met her future husband — then still married to his second wife, Anna — at a company cocktail party.
In 1999, the pair were married in the United States aboard a private yacht that Murdoch had reportedly bought for his retirement.
The couple now live in New York with daughters Grace and Chloe, who will inherit a huge fortune after their father changed his will in 2005 to give them an equal interest with his adult children in the family’s News Corp. holding.
Under that deal, Deng will become the most powerful player in the family trust when Murdoch dies because she will act as guardian to her two children until they can claim their inheritance at the age of 30.
At the hearing Tuesday — a day her husband called the most humble in his life — she sat directly behind the News Corp. chairman and chief executive, regularly reaching over to give him a reassuring pat on the shoulder.
Pictures of Deng in an eye-catching bright pink jacket and pencil skirt dominated the front pages of British newspapers on Wednesday, along with praise for her lightning reactions.
The Daily Mail tabloid called her the ‘hero of the hour’ for springing into action, clouting Murdoch’s attacker on the head and managing to push the plate of gunk he was carrying back into his face.
Opposition parliamentarian Tom Watson, who played a key role in bringing revelations about phone hacking by the News of the World to light, finished the session with the words: ‘Mr Murdoch, your wife has a very good left hook.’

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The world is run by Tiger Wives, Tiger Moms

News of the World, Murdoch hacking scandals: 'Shocked, appalled and ashamed', attacked!  

Wednesday, July 20, 2011

News of the World, Murdoch hacking scandals: 'Shocked, appalled and ashamed', attacked!




'Shocked, appalled and ashamed': quotes from Murdoch hacking hearing 

Rupert Murdoch ... the most humble day of his life. Rupert Murdoch ... the most humble day of his life. Photo: Reuters


Selected quotes from the Murdochs' appearance at the parliamentary inquiry into media phone hacking, which produced reactions ranging from table-banging, to abject apology, to staunch denial of any knowledge of wrongdoing.

- "I just want to say one sentence. This is the most humble day of my life." - Rupert Murdoch's opening remarks.

- "No." - Rupert Murdoch's remark when asked by Labour MP Jim Sheridan if he accepted that "ultimately you are responsible for this whole fiasco".



- "The people that I trusted to run it [his media empire] and then maybe the people they trusted." - Rupert Murdoch when asked who he blamed.

- "We felt ashamed at what happened. We had broken our trust with our readers." - Rupert Murdoch explains why the News of the World tabloid was shut down after 168 years.

- "We have seen no evidence of that at all and as far as we know the FBI haven't either." - Murdoch on allegations the paper hacked 9/11 victims.

- "I would like to say just how sorry I am and how sorry we are, to particularly the victims of illegal voicemail interceptions, and to their families." - James Murdoch's opening statement.

- "The News of the World is less than 1 per cent of our company. I employ 53,000 people around the world who are proud and great and ethical and distinguished people, professionals in their work. I'm spread watching and appointing people whom I trust to run those divisions." - Rupert Murdoch on his empire.

- "Endemic is a very hard, a very wide ranging word. I also have to be very careful not to prejudice the course of justice that is taking place now." - Rupert Murdoch in answer to Labour Party lawmaker Tom Watson, who asked Murdoch when he became aware that criminality was "endemic" at the News of the World.

- "I was absolutely shocked, appalled and ashamed when I heard about the Milly Dowler case only two weeks ago." - Rupert Murdoch on allegations that the News of the World hacked into the murdered teenager's phone.

"I was invited within days [of the general election in May last year] to have a cup of tea to be thanked for the support by Mr Cameron. No other conversation took place." - Rupert Murdoch revealing that he had been invited to have a cup of tea with Prime Minister David Cameron within days of the election that brought Cameron to power at the head of a coalition government.

- "There are no immediate plans for that." - James Murdoch, saying no plans were afoot for News International, the British newspaper wing of News Corp, to launch a new Sunday tabloid to replace the News of the World.

- "Because I believed her and I trusted her and I do trust her. In the event she just insisted. She was at a point of extreme anguish." - Rupert Murdoch when asked why he did not accept former News International chief executive Rebekah Brooks's original offer to resign before she finally quit last Friday.

- "They caught us with dirty hands." - Rupert Murdoch on opposition within the media industry to his abandoned BSkyB bid.

- "Your wife has a very good left hook [sic]." - British Labour MP Tom Watson after protester and comedian Jonnie Marbles pelted Rupert Murdoch with foam and his wife Wendi hit back.



- "You naughty billionaire." - Jonnie Marbles after the attack.

Rupert Murdoch was attacked with what appears to be a pie during a hearing before members of Parliament. The videotape appears to show a protester heading toward Rupert Murdoch. Murdoch's wife, Wendi Deng, then lunged at the protester.

  - "As Mr Murdoch himself said, I'm afraid I cannot comment on an ongoing police investigation." - Jonnie Marbles to reporters later.

- "Once that trust was broken, we felt that that was the right decision. Of course, it wasn't the right decision for the hundreds of journalists who worked on there, had done nothing wrong, were in no way responsible. Every single one of them [the journalists] will be offered a job." - Rebekah Brooks on the decision to close the News of the World.

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Wendi Deng, Murdoch's Tiger wife loyalty and ambition !

The world is run by Tiger Wives, Tiger Moms  

The polarised world of politics




Musings By Marina Mahathir

Politicians of every stripe have two bad habits. Firstly, they think that those who don’t belong to any political party are incapable of having a single political thought. Secondly, when non-politicians think of a good populist idea, politicians of all stripes rush to hijack it.
Marina Mahathir, daughter of Mahathir MohamadImage via Wikipedia

George W. Bush, that giant of intellectuals, famously said after the Sept 11, 2001 attacks that “Either you’re with us, or you’re against us.”

Those words unleashed a world polarised by politics with no hope for peace, which necessarily requires a coming to the table of all sides to discuss common issues.

This “Us versus Them” mentality is an affliction that has befallen not only American politicians but many others around the world, including in our own country.

It creates an illness known as hyperpartisanship, which can be defined simply as “if you’re not on my side, you must be wrong.”

It’s the only explanation I can give for the consistently delusional statements that tend to come out from our politicians’ mouths.

To their minds, nobody can be right unless they’re on the same side.

Additionally, if you don’t agree with them, then you must surely be on the “other” side. Politicians can’t seem to fathom anything but a bipolar world.

They can’t seem to get it into their heads that firstly, there may yet be a third (or fourth, fifth) way of looking at things, and secondly, that the ones with these different perspectives could conceivably be civilians.



Politicians of every stripe have two bad habits.

Firstly, they think those who don’t belong to any political party are incapable of having a single political thought.

They forget that every five years or so, it is they who insist that we think of politics when we go and vote.

Secondly, when non-politicians think of a good populist idea, politicians of all stripes rush to hijack it.

Non-politicians, otherwise known as civil society, then have to fight them off tooth and nail.

How many times have we had politicians turning up at big events organised by non-politicians and trying and making it sound as if it’s a big endorsement of themselves?

Some politicians are certainly more delusional than others. Since Bersih 2.0 shocked them, they have been working overtime to demonise it.

It is one thing to badmouth the rally in the days before it happened but it’s quite shocking to see the pathetic attempts to paint it as a riot when it was clearly not.

From calling the teargassing “mild” to denying that the police had fired teargas into the Tung Shin Hospital, to trying to check the motives and bank accounts of those who went for the rally, our dear leaders insult us every day.

Yet all they have to do is, instead of surrounding themselves with sycophants who will only tell them what they want to hear, read all the heartrending and heartwarming personal accounts written by the many ordinary people who went to the Bersih 2.0 rally.

These were housewives, retirees and young people, all fearful of what violence they might encounter, but who steeled themselves to go and exercise their right to voice their opinions.

These were people who had probably never done anything more confrontational than argue with a salesperson in their entire lives, who faced teargas and water cannons fired at them by a government they probably voted in.

How much courage does it take to insult your own people from an airconditioned room compared to facing the FRU?

If our leaders think teargas is something mild, they should ask the FRU to try it on them. I was lucky that day because I chose a route where the police decided not to deploy their gas and water cannons on us.

But many of my friends and colleagues were not so lucky. I feel ashamed that I suffered no more than tiredness, compared with what they so courageously went through.

And all our hapless leaders can do is call them names. The people who went to Bersih 2.0 are Malaysians who will forever feel united and bound to each other because of that experience. Some may have been politicians and NGOs but so many more were just people of every race, religion, age and creed.

So many have said they never felt more Malaysian than they did that day. At a time when everyone has been lamenting how divided we are, we came together. What more could we have wished for?

Perhaps we should take another leaf from Sept 11. In the wake of the death and destruction wreaked by the US government to avenge the World Trade Centre deaths, some of the families of those who died, horrified by such violent vengeance, started an NGO called Not In Our Name.

Perhaps those many decent Malaysians, the “silent majority” our leaders like to claim as their own, can come out and say that, even if they disagree with Bersih 2.0, they will not stand by and let their fellow citizens be insulted and abused in this way.

At least, not in their name.

Tuesday, July 19, 2011

Malaysia establishes diplomatic ties with Vatican Papal




Pope Benedict XVI and Malaysia PM Najib Razak in Castel Gandolfo (18 July 2011) The Vatican said the talks between the two leaders had been "cordial"
The Vatican and Malaysia have agreed to establish diplomatic ties, following a meeting between Pope Benedict XVI and Malaysian Prime Minister Najib Razak.
The move comes after years of talks between the Catholic Church and the government of majority-Muslim Malaysia.

Mr Najib's visit was said to have been intended to reassure Christians in his country, who have long complained of discrimination.

Ethnic and religious tensions have risen ahead of expected national polls. On Monday Mr Najib met the Pope at his summer home near Rome.

In a statement, the Vatican said that during their "cordial conversations, the positive developments in bilateral relations were discussed and an agreement was reached to establish diplomatic relations between Malaysia and the Holy See".



The Vatican said the two leaders had also discussed the importance of cultural and religious dialogue for the promotion of peace, Associated Press news agency reports.

Mr Najib's meeting with the Pope is significant for Malaysia's Christian community, which makes up about 9% of the population.

Malaysia's constitution promises freedom of worship to all faiths, but a string of religious disputes in recent years has raised fears among the country's religious minorities that their rights are being eroded, says the BBC's Kuala Lumpur correspondent Jennifer Pak.

Pigs heads In 2009 the authorities tried to enforce a ban on Christians using the word "Allah" when referring to God in the Malay language - Christian leaders said the word had been used in their bibles for decades.

The authorities' efforts heightened tensions, leading to arson attacks on churches and tit-for-tat defacing of mosques, including the leaving of pigs' heads at doorways to Islamic prayer halls.

Ramon Navaratnam, who works for a Malaysian inter-faith council, said earlier that forming ties with the Vatican would give the concerns of Christians a better hearing.

"We now will be saying things the way we have, what is right, what is wrong, what we like, what we don't like about religious freedoms or the lack of it, and we know we will have somebody in the Vatican who would be able to at least talk to them, the government, privately and say 'look, we can't accept this. Please moderate your views'," he said.

Mr Navaratnam said the government could no longer ignore religious minorities, most of whom are ethnically Chinese and Indian.

However, some Malay Muslim groups have become more vocal in demanding privileges and support from the government.

In 2008, Chinese and Indian minorities across Malaysia, who are mainly Christians, Hindus and Buddhists, abandoned the government and voted for the opposition.

Many complained of racism and a lack of religious freedom.

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Poor attitude caused jobless, low income, poor career!




The problem with fresh grads

By P. ARUNA aruna@thestar.com.my

 PETALING JAYA: Poor attitude -including asking for too much money - is the chief reason why employers shy away from hiring fresh graduates. Another common complaint is that many graduates are poor in English.

A survey by online recruitment agency Jobstreet.com showed that 55% of employers cited unrealistic expectations of salaries while 48% of them said poor English was the main reason why Malaysian fresh graduates from both public and private institutions remain unemployed.

“While previous surveys named poor English as the main cause for unemployment, bad attitude has now topped the list,” said its chief operating officer Suresh Thiru.

He said their attitudes were so bad that some did not even bother to inform the companies if they were running late or unable to attend scheduled interviews.

It was announced that the number of jobless graduates had increased from 65,500 to 71,600 although the overall unemployment rate had dropped from 3.4% last year to 3.1% during the first quarter of this year.

Another study by recruitment agency Kelly Services showed that fresh graduates asked for flexible working hours and expected their work to accommodate their personal life, not vice versa.

Its marketing director Jeannie Khoo said employers were also turned off by the lackadaisical attitude and lack of drive to improve among many of them.

“They have the misconception that they can earn high salaries at entry-level. They enter the banking industry expecting to earn RM3,000 while the market rate is only RM2,200,” she said.

PricewaterhouseCoopers Malaysia head of recruitment Salika Suksuwan said some candidates had many offers in hand but acted unprofessionally in rejecting job offers - by not turning up for interviews or the first day at work.

“We sometimes have to call them and remind them about a scheduled interview when they didn't turn up,” she said.

Talent Corp CEO Johan Mahmood Merican urged fresh graduates not to make demands on their salary.
“It is more important to join a company that can develop your skills and prepare you for future opportunities,” he said.

In a related development, Human Resource Deputy Minister Datuk Maznah Mazlan said half of the applicants who registered with the JobsMalaysia portal (www.jobsmalaysia.gov.my) had found employment.

Speaking when launching the Graduan Aspire 2011 employment fair yesterday, she said about 300,000 job applicants were currently registered with the website.


Star readers come to fresh grads’ defence

By P. ARUNA aruna@thestar.com.my

PETALING JAYA: Readers of The Star have come to the defence of unemployed graduates who are accused of demanding high salaries, saying it was almost impossible to survive in the city with the entry-level pay offered by many companies.

Karthikumaran Nadarajan, 26, who was unemployed for six months, said he had never demanded a high salary and had attended every interview.

The electrical and electronics graduate felt that job offers had not come his way due to stiff competition, especially for jobs advertised on major online recruitment agencies.

It was reported yesterday that poor attitude including asking for too much money was among reasons why employers shied away from hiring fresh graduates.

A survey by online recruitment agency Jobstreet.com showed that 55% of employers cited unrealistic expectations of salaries while 48% of them said poor English was the main reason.

Photography graduate Noorezerey Abdul Ghafar, 23, has been unemployed for the past two years and has not received any offer despite actively applying for jobs online.

“I have never been demanding about salary,” he said.

On The Star's Facebook page, some readers agreed that many fresh graduates had bad attitude while many defended fresh graduates.

“I absolutely agree. Poor attitude, arrogance, and they think they deserve a high pay with their bad English,” said reader Patrick Yau while human resources practitioner Vincent Cheong said he had seen some fresh graduates who even had difficulty filling up an application form.

“Worst of all, they demand high salary and benefits to support their social life expenses,” he said.
Another user Yew Lee Yin said some showed up for interviews wearing unsuitable attire and others never bothered to show up.

However, David Hamtaro said anyone living in Kuala Lumpur needed to earn a minimum of RM3,000 to be able to survive while Ong Joo Parn argued that employers needed to realise that the cost of living had gone up.

Bank Negara training aims to make youths marketable

KUALA LUMPUR: Despite holding an industrial bio-technology degree, Thiyagarajan Subramaniam had difficulty finding a job as he was unable to speak English fluently and lacked self-confidence.

However, now he is an administrator at IBM and is able to speak the language more confidently after joining the Bank Negara's Graduates Programme (GP), a corporate social responsibility initiative.

He said the programme, which is aimed at enhancing employability of graduates under the age of 25 from low income families, helped him discover that he could quickly come up with ideas and to be more disciplined.

Prior to joining the programme, the 26-year-old attended more than 10 interviews with multinational companies but none got back to him after that.

“I took up some part-time jobs for income as it was difficult to get a job in bio-technology,” Klang-born Thiyagarajan said.

Fellow coursemate Edmond Leo Lopus, 26, repeatedly sent his resume to various companies but only one offered an interview after he had completed his degree in Mechanical and Manufacturing Engineering in October 2009.

But his fortunes changed once he was accepted in the Bank Negara's Graduates Programme. Even before completing 23 months of on-the-job training at Swedish Motor (Volvo) through the programme, he was absorbed as a process quality engineer at the company.

“This is my dream job as I've always loved cars and aeroplanes,” he said.

Johor-born Siti Syarah Sanip (pic) said she was afraid of ending up like her friends, who did better than her in university but worked as cashiers and salesmen after not being able to secure a corporate job.

After joining the programme, she now works as a junior executive at Proton Holdings Berhad's finance and planning department and is grateful to Bank Negara for choosing her to join the programme.

Bank Negara assistant governor Marzunisham Omar said 98% out of the 500 of the programme's first batch have been employed while 14 participants from the 200 graduates in the second batch secured permanent employment after one month of attachment.

He said training for the second batch started on March 28 and would end next year. He added that plans for a third batch were in the pipeline.

A recent Jobstreet.com survey cited poor attitude and poor English as among the reasons many fresh graduates were having difficulty in securing jobs.

Jobstreet.com chief operating officer Suresh Thiru said previous surveys named the poor command of English as the main cause for unemployment, but bad attitude had now topped the list.

Monday, July 18, 2011

US debt impasse a global issue




GLOBAL TRENDS By MARTIN KHOR

The political deadlock in Washington on whether and how to increase the United States’ debt limit is causing anxiety over a possible default and the consequent global economic downturn.

Global Unease on U.S. Debt Impasse - global-unease-on-us-debt-impasse 
A Chinese 100 yuan banknote is placed under a $100 banknote. (Petar Kujundzic/Courtesy Reuters

THE deepening of the Eurozone debt crisis last week through contagion, spreading to Italy, was more than matched by the growing chance that the US government would not be able to pay its bills or service its debts starting Aug 2.

Week-long negotiations took place between US President Barack Obama, and the Democrat and Republican party leaders to avert a partial closing down of the federal government.

The US currently has a limit to its federal debt of US$14.29tril. This limit will be reached by Aug 2.

Congress has to approve raising this limit before then, or else the Administration will have to postpone meeting some of its financial commitments.

Federal Reserve chairman Ben Bernanke warned that default would send shockwaves throughout the global economy.

The alarm bells rang even louder when two rating agencies, Moody’s and Standard and Poor, warned they might downgrade US debt from its AAA status if the political impasse continues.

There are several reasons why the world, and especially the developing countries, should be alarmed at this situation.

First, many developing countries hold many billions of dollars of US Treasury bills as part of their foreign reserves.

An actual default raises the unthinkable prospect of the countries having to take a haircut, being only paid back a part of their bonds. This is unlikely to happen.

But even the prospect of default and a credit status downgrade would reduce the value of their bonds. Moreover the recent decline of the dollar’s value will likely accelerate, causing further losses.

Last week, China (which holds US$1.15tril in Treasury bonds) called on the United States to adopt responsible policies and measures to protect investors of US bonds.

Second, economic growth in the developing economies will be hit if the standoff or the eventual solution causes the US economy to move to a standstill or a new recession.

Whatever the final deal between the President and the two Parties, its centrepiece is certain to be deep cuts in government spending. This will reduce effective demand in the economy.

The effect will be opposite to the Obama administration’s recession-busting fiscal stimulus that enabled the economy to bounce back after the 2008-09 recession.

Third, the uncertainties in Washington emphasise the present unhealthy dependence on the US dollar as the international reserve currency.

The need for reform to reduce this dependence on a single currency, for example, by greater use of the special drawing rights (a basket of major currencies) as a global reserve currency, has been advocated by several prominent economists such as Joseph Stiglitz, Jose Antonio Ocampo and Yilmaz Akyuz as well as policy makers such as the Governor of the Chinese Central Bank.

A default in servicing US debt has moved from the unthinkable to the possible, though still in the realm of most unlikely. It may reignite the debate on reform of the global reserve system.

The facts of the impasse in Washington are as follows.

The current debt limit of US$14.29tril is forecast to be reached on Aug 2, so no new loans are allowed after that.

The administration estimates that the debt limit has to be increased by US$2.4tril so that the govern­ment can meet its commitments up to November 2012, after the Presidential elections.

Many Republicans in Congress, especially those under the influence of the Tea Party group, want the government to achieve budget balance through slashing spending without any increase in taxes, and to achieve budget balance.

A few Republican leaders, however, are willing to consider a small increase in taxes, or rather in closing tax loopholes, but they are finding difficulty in convincing their colleagues. They also want spending cuts to exceed the rise in the debt limit.

The President and Democrats are willing to cut spending significantly, but want also to raise taxes of the rich, so that both can contribute to the deficit reduction.

Democrat leaders are adamant that social and medical security should not be affected by the cuts, though Obama is willing to allow some cuts there as well.

If the extreme stance of the Tea Party faction becomes the overall Republican line as well, a deal would be extremely difficult.

To meet it, the Democrats and President would have to move their compromise position to the degree of total capitulation.

If the deadlock continues, a possible solution may be the proposal of Senate Minority Leader Mitch McConnell: the president submits his plan to increase the debt limit and to cut the budget, the Congress rejects it, the President vetoes the rejection, and his proposal is adopted unless two-thirds of Congress rejects it again.

This will allows all sides to claim that they stuck to their positions, while avoiding a crisis.
If there is still no agreement by Aug 2, then the administration will have to choose which items not to pay and when.

These include interest on Treasury bills, social security, medicare, defence vendors, unemployment benefits, food stamps, military pay, federal salaries.

Priority will be given to debt servicing, so a default on Treasuries is very unlikely unless the impasse lasts a long time.

The other services and salaries will be hit, and increasingly so as long as there is no deal.

As almost everyone will agree, this is no way to run a government, and the US governance system is becoming dysfunctional.

This has serious effects on the rest of the world. So the universal hope is that some solution will be found before Aug 2.


Global Unease on U.S. Debt Impasse

By Jonathan Masters, Associate Staff Writer


With the deadline for a U.S. credit default less than three weeks away, President Barack Obama and top Republican lawmakers remain at odds over a deficit reduction plan that both sides view as a prerequisite to any hike in the debt limit. The impasse continues to fuel apprehension within the global financial system, with two of the "Big Three" credit rating agencies--Moody's and Standard and Poor's--considering downgrading the United States (WSJ) from its AAA status. Moody's cited the "rising possibility" the U.S. debt limit will not be raised in time to avoid default. Economists warn that a significant loss of confidence in the U.S. debt market could prompt foreign creditors to unload large portions of their holdings, sparking a sharp increase in U.S. borrowing costs and calling into question the dollar's role as the world's reserve currency.


Most economists agree that the impact of an outright government default would be severe. Federal Reserve Chairman Benjamin Bernanke has warned a default would usher in a new financial crisis. While some suggest the market still assumes the issue will be resolved, they say a default would do unprecedented injury to the full faith and credit of the United States and roil international markets (DowJones) in a sea of uncertainty.

China, the largest U.S. creditor, has reiterated its call for a swift compromise in the debt talks. Beijing would be particularly exposed to any acute shock to the bond market, with about 70 percent of its $3.2 trillion foreign exchange reserves invested in U.S. Treasuries (Reuters). Historically, the U.S. debt market has been driven by huge investments from surplus countries like China, which have viewed the United States as the safest place to store their savings.

The Economist notes that while a default may not precipitate an immediate sell-off by foreign banks due to a lack of immediate alternatives, the event would discourage future holdings of such magnitude. As the largest economy and home to the world's reserve currency, the United States has traditionally attracted investors looking for a financial safe haven. But some analysts suggest the current fiscal crisis, including the threat of default, could accelerate a shift in the way global capital is allocated (TIME)--away from developed nations like the United States and Japan and into emerging markets such as China and India. The Wall Street Journal reports that in addition to China, investors in Japan, Russia, and a number of Persian Gulf states will increasingly look for alternative investments to diversify their sovereign holdings.


Bill Gross of the investment management firm Pimco writes that global investment managers are keen to punish defaulting countries (WashPost) severely, adding that alternatives like Canada and Germany are only a wire transfer away. He says a default may prompt foreign banks to rethink their currency preferences, jeopardizing the reserve status of the dollar. A 2010 survey by the McKinsey Global Institute found fewer than 20 percent of business executives surveyed expected the dollar to be the dominant global reserve currency by 2025. However, with a systemic debt crisis racking Europe, some analysts claim there is still no viable alternative to the dollar (DowJones) in the short to medium term.


But an impression of eroding U.S. power is already gaining traction. The latest Pew Global Attitudes poll finds: "In fifteen of twenty-two nations, the balance of opinion is that China either will replace or already has replaced the United States as the world's leading superpower." The poll says the "United States is increasingly seen as trailing China economically."

Selected Analysis:

The United States has entered its "own age of austerity," with the solution to country's fiscal woes coming only through long-term spending reductions, particularly in entitlement programs, writes Mort Zuckerman in the Financial Times.

A period of austerity brought on by debt mistakes will have "profound consequences, not just for Americans' standard of living but also for U.S. foreign policy and the coming era of international relations," write CFR President Richard N. Haass and former Deputy Treasury Secretary Roger C. Altman in Foreign Affairs.

This report from the Brookings Institution addresses the nature and quality of U.S. political leadership, the sources of the nation's governance problems, and some strategies to work around them.

The New America Foundation's Maya MacGuineas recommends an immediate increase in the debt ceiling and the negotiation of big budget deal ($4 trillion) that will keep the nation's debt from outpacing the economy.

Weigh in on this issue by emailing CFR.org.

Sunday, July 17, 2011

Wake-up call for Malaysian politicians: Challenge of a new mindset!




Challenge of a new mindset

INSIGHT: By JOCELINE TAN

Feelings are still deeply divided over last weekend’s street protests but there is a growing realisation that there is a sophisticated civil society out there who can determine the outcome of the next general election.

A DIE-HARD admirer of Tun Dr Mahathir Mohamad was asked how the big man felt about his famous daughter Datuk Paduka Marina and her grown-up daughter joining the Bersih march last weekend.

The Mahathir-admirer said the former Premier felt more embarrassed than upset.

Dr Mahathir’s views about public protests are well known. In fact, he had, over the last few months, expressed disapproval of the way sensitive issues like race relations and religion were openly debated and challenged, saying such things had not happened during his watch and implying that his successors have been unable to control the politics of the day.

Watch and listen Video from Patrick Teoh:


But to have his daughter and granddaughter marching with the Bersih group was an eye-opener altogether. In a way, it was a metaphor for how the world has changed around him since the years when he was still in the driver’s seat.

However, the political circle around him fumed at Marina. They think she has put her father and her deputy minister brother Datuk Mukhriz in an awkward situation. But those familiar with Marina say her support for Bersih had more to do with her NGO ties and what they stood for. Also, like many Malaysians, she wants to see a first world electoral system emerge in this country.



The problem was that Bersih was polemic from the word go and when emotions run high, there is little middle ground. It becomes a situation of you are with us or you are with them.

That has been the dilemma for many, including Deputy Higher Education Minister Datuk Saifuddin Abdullah who came under attack from pro-Umno Netizens for his views on the rally. Some of them even called for him to be sacked from the Government.

Among his “wrongs”: He had questioned the authority’s handling of the rally and was critical of the Friday sermons cautioning people from joining the demonstration. A day before the protests, he tweeted: “Saya tidak setuju perhimpunan Bersih tapi tak payahlah guna khutbah Jumaat.” (I don’t agree with the Bersih rally but there’s no need to use the Friday sermon.)

He clarified later that although the rally was illegal, there was no need to resort to religious grounds to stop it. More bashing followed that remark although he also won praise for being objective. People like Saifuddin are a minority in Umno, which saw the rally as a direct challenge to its hold on power.

Prime Minister Datuk Seri Najib Tun Razak acknowledged the raw feelings in the party when he made one of the most fiery speeches of his career before a packed gathering of Umno leaders and members at the party headquarters the next day. He was speaking to an emotional audience who felt that the other side was pushing them against the wall; and you could see it in their response.

Khairy Jamaluddin received loud applause at the PWTC gathering. The Umno Youth chief had also defied the ban to rally and he has been taunted for the barely 200 “Patriots” he managed to gather. But he went out there, took the hits for his party and they acknowledged it.

Umno Youth had its share of casualties. The police did not care who Khairy’s father-in-law was; they arrested him after giving him and his group the pepper water and tear gas treatment.

Bukit Bintang Youth chief Tengku Azman Zainal Abidin was whacked on his upper back while Putrajaya Youth chief Datuk Zaki Zahid is nursing a black-and-blue left arm, no thanks to a FRU baton. A member from Besut suffered a broken ankle.

The mainstay of Umno is still seething. They regard the whole affair as a veiled attempt by Pakatan Rakyat to import Egypt’s Tahrir Square phenomenon to Kuala Lumpur and destabilise the government.

“How would they feel if we take to the streets when we disagree with policies or laws in Pakatan states? You want this culture, we can do the same. They have set a dangerous precedent,” said Tengku Azman.

Claiming credit

Pakatan leaders, who kept to the background in the run-up to the protests, are now emerging to claim credit while threatening more street protests.

The rally was also very much about political gamesmanship and there is no denying that Pakatan has regained the momentum they lost following the string of by-election defeats and the sex video scandal. Public perception is that the Government could have handled it with more finesse, however.

PAS leaders, in particular, are milking the afterglow for all it is worth. Deputy president Mohamad Sabu, who was injured in the knee, has been making the ceramah rounds in a wheelchair where he is welcomed like a war hero. Shah Alam MP Khalid Samad who received about half a dozen stitches to his scalp has worn his scar like a badge of honour.

Surprisingly, pictures of Datuk Seri Anwar Ibrahim in hospital with tubes running out of his nose elicited little sympathy and some thought his bodyguard, who was seen with blood dribbling down his cheek and chin, should be the one stretched out.

A key concern of PAS was its standing with the palace because the rally had gone on despite the advice from the King. The latest issue of Harakah went into overdrive to contain the matter, carrying the King’s picture on the front cover as well as the back page while pinning the blame of treachery squarely on Umno.

A point of curiosity was the DAP’s role, or rather the lack of it. Key DAP leaders kept a low profile before and after the showdown. Questions are being asked whether they were trying to downplay their political clout after their massive wins in Sarawak or if they were apprehensive about the sentiments of the Chinese middleground regarding Middle East-style uprisings. According to an insider, the party did not want to be seen as the provocateur, so they played safe.

Besides, Penang Chief Minister Lim Guan Eng had a foretaste of this in his own state several days before the Bersih show. DAP leaders probably know they would be giving their opponents an excuse to retaliate the same way in Penang if they had actively encouraged the Bersih rally.

Will there be more rallies to come?

Bersih chief Datuk S. Ambiga said quite firmly there would be no more Bersih rallies for now. Her NGO coalition worked hand in glove with Pakatan to organise the demonstrations but she apparently does not intend to let Pakatan politicians hijack the movement and turn it into a yellow bandwagon for them to roll into Putrajaya. It will be a test of whether she is really in charge or whether it is the Pakatan leaders who are running the show.

Pakatan politicians know a good thing when they see one. They have been tweeting and making press statements about “yellow Saturdays” and holding more gatherings.

“The key challenge for them is how to maintain the momentum, to distinguish between the NGO and Pakatan arms of Bersih and how to stick to the agenda of electoral reform.

“For Pakatan, it is about how to build a broader movement by bringing in groups with grievances on issues such as inflation and corruption.

“But, by and large, we are a functioning democracy, the election process still works, and the way forward is to find a way to mediate between the demands and politics of these groups,” said Merdeka Centre director Ibrahim Suffian.

The way the rally unfolded has hurt the image of Najib’s administration but it has not undone the good he has done, as some claimed.

Najib, as Ibrahim pointed out, has tried very hard to be seen as more than just another politician. He has put into place policies and measures which he believes will be beneficial for the future of the country. It is there for people to judge alongside the political fallout from Bersih.

Within Umno, there is a segment who understands the civil society value of the Bersih demands. They agree with the bigger goals of free and fair elections even while opposed to the way the organisers took it to the streets.

“We are not afraid of reform and progress. I have no problems with the call for greater media freedom. We opposed the rally not because we are against principles of fair elections, but because the rally became a political challenge,” said Umno Youth’s Zaki.

For Umno, especially, the rally was a wake-up call. The large number of young Malays on the streets was the very sort of people which Umno Youth should be attracting but instead they were out there with the other side.

The Malays came out in huge numbers because there is a lot at stake for them – the Prime Minister will be a Malay and as Muslims, they want control over the question of Islam in the country. Moreover, the Malays/Bumiputras will determine the politics of the future because by 2020, they will make up 70% of the population.

On Thursday evening, Umno’s Saifuddin gathered a group of like-minded people to share and discuss the events of the past weeks and how to go beyond what had happened. Saifuddin is what one might call the thinking person’s type of politician.

New perspective

The group is talking about engagement, about looking at issues in terms of grey rather than just black and white. This group sees the diversity of views out there and they understand how important it is to command the middle ground.

Zaki, on his part, has invited his peer group from Pakatan parties to sit down and debate electoral issues.

They realise that the most significant aspect of last Saturday’s protest was the participation of civil society and the number of people who declared that they were there not to support PAS or PKR or Anwar Ibrahim, but because they want a better electoral system.

“These are the people who will eventually vote for the candidate rather than the party. They go on issues, they can distinguish between party politics and real issues,” said one senior journalist.

If not for anything else, Saturday has shown that there is a very sophisticated and discerning civil society out there and they are not afraid to make their opinions known.

This group will be a major factor in determining the outcome of the next general election and political parties should do everything they can to engage them.

Saturday, July 16, 2011

Bersih_PR - UMNO_BN Cyberbattle to own the ‘truth’




Cyberbattle to own the ‘truth’

ANALYSIS  By BARADAN KUPPUSAMY

The ‘truth’ is still out there in cyberspace where the Bersih 2.0 rally is concerned.

THE Bersih 2.0 rally might be over but the battle to own its truth is still being fought over social media which had become a fierce battleground.

People from both sides of the political divide have weighed in with their experiences of July 9 on Face­­book, Twitter, blogs and so forth.

Some of the things uploaded now include a video clip of a man who had supposedly died, a hospital that was blasted with water cannons and a PKR activist who died of a heart problem during the rally but his death was blamed on the police.

Discerning true from false: Many accounts of the Bersih 2.0 rally, both true and untrue, have been posted online for Netizens to read and judge for themselves.
 
The person who faked his death on video has been traced and identified as an Al-Arqam member from Selangor. He is said to have run off when the police sent him to hospital.

Then a supposedly “Chinese man” was seen holding a loud hailer for the man (said to fake his death) as he prayed. Eventually, the “Chinese man” had been exposed as a Selangor PKR man who is a Malay. A blogger posted his picture for viewers to judge for themselves.

Opposition Leader Datuk Seri Anwar Ibrahim, meanwhile, was seen grimacing in hospital after the rally but his detractors scoffed at the images.

It’s a war zone out there in cyberspace. The Pakatan Rakyat appears to be winning at times; at other times, the Barisan Nasional.



Pakatan had always enjoyed a well-oiled social media network. It was first seen in action during Anwar’s black eye incident and later in the first sodomy trial and subsequently the purported arsenic poisoning.

One of the prominent websites at that time was the Free Anwar website managed by Raja Petra Kama­ruddin. It did Anwar a great favour and is also credited with helping to free him in 2004.

Pakatan was always a step ahead of Barisan in exploiting the developments in social media.

During the years since the Free Anwar website, Anwar himself led in the fight to exploit social media for its powerful ability to connect disparate people.

Today, social media is working overtime for Pakatan as it seeks to manufacture consent for his political themes.

Tech-savvy youths were checking iPads and smartphones during the days leading to the Bersih 2.0 rally and on the day itself.

They sent out tweets, posted comments and images and wrote about their experiences at the rally.

The truth can sometimes be lost in the maze that is social media but some images do not lie, such as the incident which took place at Tung Shin Hospital.

There is overwhelming evidence that tear gas and water cannon were fired into the hospital area after rally participants ran helter skelter into the hospital area. Images and video clips of the incident were recorded and uploaded online by many people.

It is well known that some ministers lack social media skills or have not found time to watch videos online but still make statements that later put them in a spot.

Facebook, Twitter and other social media platforms have thus become a contested arena with many pro-Barisan Nasional and pro-Pakatan Rakyat supporters arguing over their version of what the “truth” is.

For Anwar, the important thing is to keep up the political momentum achieved by Bersih 2.0. Their hope is that the next general election is held soon to capitalise on the political momentum created by the rally.

He needs the Bersih 2.0 rally to be talked about everywhere, besides calling on his friends in the Western media to write about it.

Prime Minister Datuk Seri Najib Tun Razak, on the other hand, has been spending time explaining things. While on a visit to London, he was interviewed on CNN where he took questions on the rally, on police brutality and on his economic transformation plans for the country.

Najib has to put a distance between himself and the effects of the rally on the people, especially the youths who are upwardly mobile.

The social media is Anwar’s strong suit. The same cannot be said about many government leaders.

But not everybody is connected and those who are connected deeply disagree on what really happened on July 9.

The silent majority is out there and when they speak, it will be a roar.