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Thursday, February 28, 2013

DEFCON 1: Teddy Bears

          
        A military court in Belarus has sentenced one of its border guards to two years in prison for failing to protect the country from an invasion by foreign teddy bears last July.
            No guys, it’s not April yet.

The invading teddies parachuted into the capital city of Minsk and other outlying areas, carrying placards protesting Belarusian human rights abuses.
While initially a publicity campaign carried out by a Swedish advertisement agency seeking to show solidarity for pro-democracy groups, the stunt has morphed into an all-out diplomatic war between Sweden and Belarus. In response to the plane drop, Belarus withdrew its ambassador from Sweden, and president Alexander Lukashenko issued a state memo declaring that any further “teddy-planes” would be shot down.
And in the midst of all of this, the border guard who failed to report the plane in a timely manner has become a scapegoat.

Not So Cuddly
            You may ask yourself, what kind of nation would so blatantly show hate for teddy bears? Unfortunately for the teddies, Belarus is a prime suspect. For the last few years, Belarus has been ranked by Amnesty International as one of the most dangerous nations with respect to human rights. As the CIA World Factbook notes, Belarus “while a republic in name is in fact an authoritarian dictatorship” ruthlessly ruled by Alexander Lukashenko.
 In recent years, the regime’s human rights violations have steadily increased, from the unwarranted arrest of more than 600 political activists and presidential candidates at a rally to strict sanctions against Jewish and LBGT communities. The US State Department classifies Belarus as a rogue nation, detailing the government as “a brutal, authoritarian dictatorship that blatantly ignores human rights and fundamental freedoms.”

Surprisingly, Belarus is often left off the list as one of the most restrictive nations in the world. However, these teddy bears may have just saved the day—bringing the plight of Belarusians back into the spotlight.
  

Tuesday, February 26, 2013

Dear Money...

     Should the government spend more money to stimulate the economy? Should the government spend less and let the private sector be the stimulus? The debate in the US rages back and forth.

     And then I found this article. Its from my macroeconomic class [so it may refer to "last chapter"], but I think it provides some good points against increasing government spending.

     Feel free to debate it.
-------------------------------------
(from Gwartney & Stroup Macroeconomics 5th Edition)

Fiscal Policy 

What do we mean by the term fiscal? Merriam-Webster says that it comes from the Latin word fiscus, which means “basket” or “treasury.” It has come to mean anything pertaining to government financial matters. This can include government taxation, spending, and borrowing. All three of these areas of fiscal policy will affect the economy. Basically, changes in the government’s budget affect the overall economy. How so?

When the government spends more than it receives as revenue, there is a budget deficit. Assuming a constant money supply, the deficit is funded by borrowing. Typically, the US Treasury borrows by offering bonds.

When government revenues exceed government spending, there is a budget surplus. The surplus will reduce the government’s debt burden.

What causes the government’s budget to change? General changes in the economy affect both taxes and spending. Also, there may be intentional changes in government spending or taxation. This is called discretionary fiscal policy.

Last week we began our discussion of attempts to correct economic instability. This week our focus will be on attempts to use fiscal policy to affect the economy. You have already been introduced to Keynesian theory In general. Keynesian theory led the government away from the desire to balance the budget. Why would we want to balance the budget when we could simply change our spending habits to fix the economy?

The Keynesian view of fiscal policy is that the government can influence the economy by changing its budget. When we are in a recessionary period, a Keynesian would suggest that we should either increase government spending or reduce taxes. In other words, running deficits will help move us towards potential output and full employment. If inflation is becoming a problem, a Keynesian would suggest that reducing government spending or increasing taxes would put downward pressure on prices. So, running a surplus should help curb inflation.

If we have the tools to make it so, why isn’t our economic world perfect?

Crowding Out: reality sets in and spoils our noble ambitions…

This sounds like a nice simple idea, but there is a significant problem associated with borrowing to finance a government deficit. Do you remember our discussion a couple of weeks ago about how resource markets are interrelated with the overall market for goods and services? Government borrowing affects the demand for loanable funds. When the government needs to borrow funds to cover a deficit, it increases the overall demand for loanable funds. Other things constant, this pushes the price of loanable funds (the interest rate) upward. The higher interest rates will dissuade private spending. This scenario is referred to as crowding out. Thus the increased borrowing of the government crowds out the private sector from borrowing and spending. This makes the deficit-running fiscal policy less effective.

There is even more to this situation. Remember that higher interest rates will draw interest from foreigners who want to invest in dollar-denominated financial assets, thus making the US dollar relatively more valuable (appreciating against other currencies) and leading to a decline in net exports. (It will be more expensive to purchase goods with dollars.) So, the crowding out effect pretty much wipes out the intended effect of the policy. Whew! And we just thought we could run a little deficit and fix the economy… Oh boy, what a mess we have gotten ourselves into!


But wait, it appears there may be even more going on…

What if people realize that someone is going to have to pay for that new government spending? After all, we are no dummies. The New Classical view of fiscal policy argues that people will anticipate having to pay more future taxes due to current government spending and borrowing. This awareness will cause them to save more and spend less. The reduction in spending caused by increased savings will offset the deficit’s affect on the interest rate as well. Thus, the fiscal policy is really of no use. 


Even more discouraging news for those who would perfect the market via fiscal policy…

Do you remember how President G.W. Bush sent out checks to help stimulate the economy? Did you notice the time lag between reading about his intentions in the news and actually holding a check in your hand? That time lag is also a classic problem with discretionary fiscal policy. In fact, if it takes too long for a fiscal policy to actually be carried through, the result may be all wrong.

It should also be noted that there are some automatic fiscal stabilizers already in place. Unemployment compensation, corporate tax profit, and progressive income taxes work in opposition to the direction of the economy. When national output and income rise, unemployment compensation declines, corporate tax revenues increase and progressive tax revenues increases. On the other hand, when national output and income decline, unemployment compensation expenditures increase, corporate tax revenues decline and progressive tax revenues decline. So, these items tend to increase the budget deficit automatically during times of recessions and increase the surplus (or decrease the deficit) during expansions.


Could things get worse?

If you thought that you could fix the economy by implementing fiscal policies, I am sorry to disappoint you, but I must add this one last downside to the whole concept. I could sum it up in one word – politics. Politicians are motivated, as everyone else, by self-interest. For that reason, they will be much more likely to vote for expansionary policies than restrictionary policies. Politicians who vote for more spending are generally more popular than those who vote for restricting spending. This naturally makes deficit spending more likely, even when inflation is high.


Let’s sum it all up.

Here is the modern-day wisdom regarding fiscal policy:

· Timing is difficult and critical.

· Automatic stabilizers tend to move us towards potential output and full employment.

· Fiscal policy is not really that productive.

· All the demand-side policies we have discussed thus far will have differing results based upon all sorts of variables.


So, as time has passed, the potency of fiscal policy has come into question. Please be sure to pause a moment to review actual government budget figures which are presented in Exhibit 8. You may continue the graph in your own mind to include the massive spending of the recent years and imagine what sort of long-term effects may emerge from the current administration’s policies.

Friday, January 25, 2013

Mali: A Defeat Waiting to Happen...

French soldiers prepare for a patrol in Mali (AP/Reuters)
The joke goes that if you Google “French Victories,” the search engine will snarkily ask you if you meant to search for “French Losses.” While this sort of comment rankles many French patriots (I'm part French myself), the truth is that ever since the 17th century, France’s track record of winning wars has been extremely poor. And once again, it appears that France has involved itself in a war that it simply cannot win, this time in the North African nation of Mali.

Into Mali
On Wednesday, January 16, French soldiers launched an extensive air and ground campaign against Islamist rebels in Mali. The Guardian reported on the 16th that France launched air strikes against Islamist camps and mobile forces in Mali, its former colony, to stop a rebel offensive and "safeguard" Mali's existence. Troops from Nigeria and other regional powers will join about 1,700 French troops involved in the operation, part of a contingent expected to reach 2,500 soldiers. President François Hollande said France intended to "destroy" the Islamists or take them captive if possible.

These Islamists are al-Qaeda linked fighters that took control of the northern deserts of Mali early last year. The militants are well armed and well trained: Reuters notes that many are coming directly from the US conflicts in the Middle East. Determined to hold onto their gains in the country, the Islamists have warned that French troops will become bogged down for years.
The people of Mali are welcoming the French soldiers with open arms: the Islamists have imposed harsh Sharia law upon the region, cutting off hands and feet for minor crimes in addition to desecrating the sacred religious shrines in the fabled city of Timbuktu (yes, it does actually exist). The citizens have feared for their lives, worried of the potential damage the volatile terror groups might wreak. Mahamadou Abdoulaye, 35, a truck driver who fled from the northern Gao region of Mali into Niger, said the Islamists new recruits were both armed and inexperienced: a dangerous combination.
"We were all afraid. Many young fighters have enrolled with them recently. They are newly arrived, they cannot manage their weapons properly. There's fear on everybody's face," he said.

Nuclear Concerns
Unfortunately, there is more at stake here than meets the eye. Although Mali was originally a French colony, this invasion is not merely a “mother nation looking out for her children.”  As Mark Tran of The Guardian notes, the West and Mali's neighbours fear that the Islamists, who took over northern Mali, an area the size of France of desert and rugged mountains, will use the country to destabilise the rest of west Africa, including neighbouring Niger, France's main source of uranium for its nuclear industry.If the Islamists gain complete control of Mali, turning the nation into a stronghold, the potential that terror groups such as al-Qaeda In the Maghreb (AQIM) will use the area as a base for launching international attacks is huge. The potential that AQIM will use the area as a foundation for a takeover of Niger’s vast supplies of uranium is even greater. As J.G. Gilmour explains, the AQIM has direct ties to the Nigerian terror group, Boko Haram. Both groups have sworn to “expel all westerners in the Sahel and establish an Islamic theocracy with poor countries which have limited resources and weak military forces to react to their insurgency operations.”  The AQIM is hoping that terrorism activities will destabilize such countries by recruiting extremists to their networks and cells. Ultimately, this destabilization puts France’s almost unending supply of uranium at risk. This uranium, as activist Adam Cooper reports, is much of the reason for initiating this offensive in Mali.

Without an End
If France has not learned from the US example in nations like Afghanistan or Iraq, then they will learn soon enough that fighting terror groups is utterly different from fighting a conventional war. As the US realized in Iraq, enemy soldiers may be anywhere, and they have no qualms about hiding among the civilian population.

French Army chief Edouard Guillaud said France's air strikes, involving Rafale and Mirage jet fighters, were being hampered because militants were using the civilian population as a shield.
"We categorically refuse to make the civilian population take a risk. If in doubt, we will not shoot," he said.
This honor of the division between militant and civilian is the great weakness of Western nations attempting to eradicate a terror group from a region. Nations such as the US, Britain, and France come to the conflict with rules of war and the terrorists capitalize upon those restrictions. Defence Minister Jean-Yves Le Drian acknowledges the difficulties facing France. "It's tough. We were aware from the beginning it would be a very difficult operation.”


Any five year old will tell you that it is almost impossible to play with someone who refuses to respect the rules of the game. If the experiences of the US in Iraq and Afghanistan are any indication, this holds true not only for Candyland as it does for war. France may maintain the moral high ground in this conflict, but will receive a defeat in return.



Tuesday, January 22, 2013

Grace...

Physics tonight. And a poem.

Grace

The drops spatter at the windowpane
Nose to glass, I watch the rain.
Water mixed with Autumn mold
A world for me that's bitter and cold.

A robin flits by, shaking its beak,
Escaping the frost that has left it weak.
A thought escapes as I dry my eyes,
An added cloud in my misery gray skies.

A wounded heart sits silently here.
No answer to this soul's shouted prayer.
Please; a way to run, to hide.
I can't handle this grief, I tried.

A bit of red in the now falling snow,
This broken heart bleeds out below.
A bit of coal amongst all the white,
Mars the beauty in the fading light.

The snow has stopped, and so have my tears.
The cold remains, and so do my fears.
Anger; tell me why did this happen?
The argument circle I'm still trapped in.

Tell me I'll be alright, that I'll be ok.
No, leave me alone--keep your cliches.
I can't do this myself--please let me be strong.
Something make my life right, its now so wrong.

The orange lines of sun split through the clouds
Warm on my face, the sunset glow astounds.
A ray pierces my heart, through the painful dark hue,
And I hear a whisper, "I painted this all for you."

[when I wiped the tears from your face / I called it all, Grace]


Wednesday, January 16, 2013

Divorce Notice...

A friend sent this to me. Its snarky, but sometimes I think a bit of humor is needed in politics. A good idea? I'll leave that to you to decide.
(note: this is not my own work)
_________________________

DIVORCE AGREEMENT


Dear American liberals, leftists, social progressives, socialists, Marxists and Obama supporters,et al:

We have stuck together since the late 1950's for the sake of the kids, but the whole of this latest election process has made me realize that I want a divorce. I know we tolerated each other for many years for the sake of future generations, but sadly, this relationship has clearly run its course.

Our two ideological sides of America cannot and will not ever agree on what is right for us all, so let's just end it on friendly terms. We can smile and chalk it up to irreconcilable differences and go our own way.

Here is a our separation agreement:

--Our two groups can equitably divide up the country by landmass each taking a similar portion. That will be the difficult part, but I am sure our two sides can come to a friendly agreement. After that, it should be relatively easy! Our respective representatives can effortlessly divide other assets since both sides have such distinct and disparate tastes.

--We don't like redistributive taxes so you can keep them.
--You are welcome to the liberal judges and the ACLU.
--Since you hate guns and war, we'll take our firearms, the cops, the NRA and the military.
--We'll take the nasty, smelly oil industry and the coal mines, and you can go with wind, solar and biodiesel.
--You can keep Oprah, Michael Moore and Rosie O'Donnell. You are, however, responsible for finding a bio-diesel vehicle big enough to move all three of them.
--We'll keep capitalism, greedy corporations, pharmaceutical companies, Wal-Mart and Wall Street.
--You can have your beloved lifelong welfare dwellers, food stamps, homeless, homeboys, hippies, druggies and illegal aliens.
--We'll keep the Alaskan hockey moms, greedy CEO's and rednecks.
--We'll keep Bill O'Reilly, and Bibles and give you NBC and Hollywood .
--You can make nice with Iran and Palestine and we'll retain the right to invade and hammer places that threaten us.
--You can have the peaceniks and war protesters. When our allies or our way of life are under assault, we'll help provide them security.
--We'll keep the SUV's, pickup trucks and oversized luxury cars. You can take every Volt and Leaf you can find.
--You can give everyone healthcare if you can find any practicing doctors.
--We'll continue to believe healthcare is a luxury and not a right.
--We'll keep "The Battle Hymn of the Republic" and "The National Anthem."
--I'm sure you'll be happy to substitute "Imagine", "I'd Like to Teach the World to Sing", "Kumbaya" or "We Are the World".
--We'll practice trickle-down economics and you can continue to give trickle up poverty your best shot.
--Since it often so offends you, we'll keep our history, our name and our flag.

Sincerely,

John J. Wall
Law Student and an American

P.S. Also, please take Ted Turner, Sean Penn, Martin & Charlie Sheen, Barbara Streisand, & ( Hanoi ) Jane Fonda with you.

Tuesday, January 15, 2013

Rasa, Rasa...

Physics tonight. And a poem.

Rasa, Rasa

My heart beats,
As a man, as a drum.
Hear the lifeline of this earth
Dominion and destruction

Return to this paradise
Respite of the fallen
Roll the dice, pass the cup
Revel in this pleasure den.

If you fly higher
You shall fall all the more
Ten graves deeper down
Looking only to travel lower.

Fall away, call away
What are you looking for?
Famed in the darkness
But starbright at the core.

Raise up, rise up.
Rasa, rasa, tabula rasa.
Rewrite your story,
Reclaim those you lost.

A man once paid ransom for you,
Heaven met Earth for your soul.
Death brought life: Ni kumaliza
Let your debt be paid in full.

See your deeds, failures, your scars
He sees them, knows where you've been
Where you've lived up, down, tried to let go
But calls you Saint, no more condemned.

Child, child, child
Why do you weep?
When Hope seems gone,
Joy destroyed,
Love has left,
Life at dead end.
Remember: you're the one I chose to keep.

[never stop living]

Thursday, December 27, 2012

Recap: 2012


Now is the time of year that any self-respecting news organization publishes its "best news of the year" in high style with flashy graphics and an upbeat soundtrack. Unfortunately I neither have the time nor budget to produce a video for you, however, I will do my best to replicate the other aspects.
 I have compiled this list from my own musings, as well as with input from other reputable sources. I have tried my best to pick news events that happened on an international scale and that had exterior ramifications for not just the nation involved, but for the world on a larger scale.  This list is by no means extensive--many of you may feel that I arbitrarily picked my subjects--but know that I gave it my best shot. Also, the numbers are not a ranking scheme, but merely a way for me to stay organized; all these events were equally important.
            Thus, without further ado: the top 10 news stories of 2012 (if you want a soundtrack for this recap, have at it:  Soundtrack for 2012)

1. Egyptian Presidential Election & Constitution
            Of all the nations that rode the rollercoaster of emotions produced by last year's "Arab Spring," Egypt has been one of the most driven to define its own democracy. Enter Mohammed Morsi, a relatively unknown politician into the elections held in June of 2012. Despite the political shenanigans of the ruling Mubarak-era military junta, Morsi defeated the state-supported candidate and became Egypt's newest democratically elected president.
            For Morsi, the win was merely a jump out of the frying pan into the proverbial fire; the time had come for Egypt to write its constitution and the military-dominated Supreme Court was threatening to disband all legislative committees involved in the creation. Morsi feared that the courts could have gone further, writes Noah Feldman, a law professor at Harvard University who’s an expert on Islam. The courts may have “declared the presidential election invalid as well, creating a constitutional coup d’état against the president.” Morsi passed a referendum placing himself above and beyond the current laws and jurisdiction of the courts, promising to rescind his powers once a constitution was passed. Extremely wary of such a dictatorial grasp at power, the constitutional committees quickly drafted and approved a constitution on December 26th.  The document is a rather shoddy protector  of civil liberties in Egypt, but is a solid step in the direction of full democracy.

2. Successful North Korean "Rocket" Launch

            As a government, North Korea has always been partial to dangerous pyrotechnic displays, and the new ruler Kim Jong Un is no exception. Ever since the nation completed its first nuclear warhead, the challenge for the Korea scientists has been to find a vehicle that will deliver that warhead around the world.
            On December 12, North Korea launched a rudimentary weather satellite into partial orbit above the earth atop a Unha-3 rocket. The nation insists that the launch had nothing to do with military objectives and was merely a scientific exposition. However, weapons experts in South Korea, upon analyzing the debris left by the rocket, stated that the launch was a test of North Korea's ballistic missile vehicle. “They efficiently developed a three-stage long-range missile by using their existing Rodong and Scud missile technology,” a senior military intelligence official said Sunday, briefing reporters on the condition of anonymity.
            If armed, this ballistic missile could at maximum reach any target within 6,000 kilometers of North Korea. However, before you worry, experts are unsure as to Korea's ability to weaponize the missile. Analysts doubt that North Korea has mastered the technology needed to make a nuclear bomb small enough to mount on a missile. If they do manage to miniaturize their warhead, the furthest target Korea could possibly hit would be Sarah Palin's home.

3. Russian Presidential Election
            Vladimir Putin has long been famed for his physique and feats of strength and valor. This year, it appears that the Russian he-man has strong-armed his way back into power as the president of Russia. After serving as the premier for his protégé Dmitry Medvedev, Putin switched places in the last election, taking the presidential title and choosing Medvedev as his premier. This is not the first time Putin has been president either: he previously held the position from 2000 to 2008.
            If you think something smells fishy, you are not alone. In the latest Russian election, not only did Putin win, but all candidates from his party either reclaimed seats or defeated opponents as well. This apparent election-rigging caused numerous protests from citizens and complaints from international watchdog groups. In response, the government has severely cracked down on dissension and contact with foreigners.  Russia has been down this road before; lets hope they remember the outcome in 1991.

4. Aung San Suu Kyi Elected
            In the CPI (Corruption Perceptions Index) rankings for 2012, the nation of Myanmar (previously known as Burma) ranked as the third most corrupt government in the world. One woman however is attempting to change that statistic.
            Aung San Suu Kyi is the leader of the Burmese National League of Democracy (NLD), the opposition party in Myanmar's parliament. The NLD has a 59% majority in parliament for this session, for the first time in decades. Suu Kyi's election was a landmark because of all of the NLD candidates elected, she has been the most verbal, the most outspoken, and the most aggressive in pursuing sweeping reforms to Myanmar's faulty government. In the last election that she participated in, in 1990, she was placed under house arrest for twenty years, becoming one of the world's most noted political prisoners. This political prisoner however has now set out to change the system that imprisoned her.
            For all of her work, Suu Kyi was this year's recipient of the Nobel Peace Prize and the Congressional Medal of Honor. Not only has she called for reforms within her own country, but also reforms around the world, making her a strong advocate on the international stage. For her courage and fortitude, world leaders have lauded her, including US President Barack Obama and UK Prime Minister David Cameron.

5. Syrian Civil War
            It seems that there has been a news story from this conflict on the front page every day. The Syrian civil war is a bitter battle that shows no signs of coming to an end. What began as a mostly peaceful protest against dictator-president Bashar al-Assad in hope of reform has become a fight to the death between the Free Syrian Army and the Syrian government with innocent civilians caught in the crossfire. It is estimated that between 50,000 and 57,000 people have died in the fighting, with over 23,000 of those casualties being non-combatants.
            The war has spilled over into the nearby nation of Turkey on occasion as well, causing Turkish casualties and international ire. However, Assad was already in the proverbial international doghouse due to his regime's human rights violations. From mass executions to rigged juries, Assad is accused of numerous crimes against humanity. In a recent attempt to prevent further innocents being killed en-masse, the United States has deployed Patriot missile batteries to the Turkey-Syria border to deter Assad from firing his biological and chemical weapons on the Syrian rebels. Policy officials at the Heritage Institute note that Assad realizes that he is losing his grasp on his power. Assad recognizes the fact that it is only a matter of time before his end--and he will make sure to cause as much damage possible in his death-throes. As one man once put it, "Some men just want to watch the world burn."
           
6. Chinese Presidential Selection
            Of all of the transfers of power staged this year, the Chinese presidential selection promises to hold the most implications for the rest of the world. This year the elite political body that forms the core of the Chinese Communist Party (CCP) was reshuffled. The Politburo Standing Committee (PSC), as this body is known was announced to the world with new faces and a new organization. The number of seats on the PSC shrank from nine members to seven and included the names at the top of many speculative lists: Xi Jinping (President), Li Keqiang (Premier), Zhang Dejiang, Yu Zhengsheng, Liu Yunshan, Wang Qishan and Zhang Gaoli.
            Cheng Li of the Brookings Institute says that these choices do not bode well for those who were hoping to see some political reform in China. "This Party congress has sent a very clear signal that this leadership is politically conservative." While in America, conservatives are considered the best choice for achieving political reform, in China, the selection of conservatives signals a maintenance of the dictatorial power exercised by the state so far, Li believes. However, Noah Feldman, a constitutional law professor at Harvard, thinks that the streamlining of the PSC and the overall willingness to change leadership shows promise for reform: "China isn’t on the royal road to democracy or to capitalism without major state direction. But in 2012 it reaped the benefits of its historic move away from dictatorship -- and in historical and comparative terms, that’s impressive enough."
            Like any election, we will just have to wait to see how things pan out for the governing body of China.

7. Israel-Gaza Conflict
            You might ask, what else is new? After all, it seems that the Israeli-Gazan fighting is always on the front page and is always considered a momentous event. Well, I'll admit that you are correct. However, I think that this issue deserves some attention, especially because of some of the new developments in that arena.        
            In August, a rash of rocket attacks by Hamas fighters spurred retaliatory attacks by the Israeli SDF; Israeli airstrikes, missiles, and artillery quickly struck back at the rocket launch sites. These airstrikes spurred only more rocket attacks by Hamas, and both sides found themselves in a tit-for-tat fight with the innocent populace caught and killed in between.
            The military tensions were only worsened when the UN granted Palestine observership status within the council, lending legitimacy to Palestine's cause. To make matters worse, new evidence surfaced that Yasser Arafat, beloved leader of the PLO, may have been assassinated by Israeli agents. Only causing more anger by Gazans was Israel's decision to continue the expansion of its Jerusalem settlements, encroaching on the border that Palestine claims.
            A ceasefire was finally reached in late November, but not before hundreds had died. This is one conflict where both sides seem to repeat their mistakes, and with great vigor. The old adage says that nothing new happens in the world--it is merely history repeating itself. The Israel-Gaza conflict proves that point perfectly.

8. EU Financial Crisis & Bailouts
            In the 2008 foreign film Slumdog Millionaire, one of the characters makes a rather astute judgment: "There are two reasons to make mistakes in this life: money and women." While promiscuity may not be a problem, money has certainly caused its share of troubles for the European Union and its Euro this year. The European financial problems of last year became the European financial crisis of this year, with several nations almost declaring complete bankruptcy. Greece, on the verge of financial collapse, even attempted to leave the failing organization in the hope that as a nation it could define its own economic freedom.
            Realizing the imminent threat of complete EU collapse brought about by not only Greece's wage woes, but also the troubles of Spain and Italy as well, German chancellor Angela Merkel quickly put together a bailout package. The Eurozone countries approved a 237-billion-euro rescue package for Greece, as well as for Spain and Italy. Economic officials at Bloomberg believe that while the bailouts did afford some slight benefit, the danger of defaulting on the debt still looms.
            On a interestingly related note, when the Corruption Perception Index (CPI) was published for 2012, the nations who received bailouts were found to have ranked 5 or 6 places lower than previously (indicating more corruption). Apparently money, as well as power, corrupts.

9. Attack on US Embassy in Benghazi
            The attack on the US Embassy in Benghazi, Libya that left 5 Americans dead, including ambassador J. Christopher Stevens has been called many things: a terrorist attack, a freak explosion of violence, a retaliation for the infamous anti-Muslim video published in the US. Finally however, we have answers: an independent inquiry as well as a congressional committee have both come to the conclusion that the attack was premeditated and carried out as a terrorist strike.
            As the New York Times reports, the independent report slams the “systemic failures and leadership and management deficiencies at senior levels” in the State Department’s bureaus of diplomatic security and Near East affairs that resulted in a “security posture that was inadequate for Benghazi and grossly inadequate to deal with the attack that took place.” Problems with security, intelligence, and grasp of the situation plagued the Obama administration both during and after the attack. However, it seems that the administration is responding appropriately now. The Times goes on to note that "Mrs. Clinton accepted all of the panel’s 29 recommendations and has already begun to make changes."
            As to the mastermind behind the attack, FBI and CIA agents have questioned a suspect who was detained in Turkey, then extradited to Tunisia. Authorities have stated that Ali Harzi, a Tunisian, is "strongly suspected in the attack." It seems that finally answers are forthcoming in this deadly situation.

10. 2012 London Olympics
            The excitement and expectation began to build long before the first athletes moved into the Olympic village in July. On 18 May the Olympic Flame set down on British soil, beginning the torch relay that swept around the country and allowed everyone the opportunity to share in the occasion. Eight thousand inspiring individuals took part, from sporting legends such as Dame Kelly Holmes and fellow Olympian Sir Steve Redgrave to those nominated for their work in the local community.
            Athletes from 204 National Olympic Committees rose to walls and waves of sound as unprecedented levels of support inspired outstanding performances and records tumbled. On the track, Usain Bolt’s double triple (100m, 200m and 4x100 relay gold for the second time) brought cheers not only in the stadium, but also from his home nation of Jamaica.
            In the pool, Michael Phelps graciously rose from Olympic waters for the last time, taking an incredible 22 medal haul with him – 18 of them gold. And in the velodrome Sir Chris Hoy won his sixth gold medal to become the most decorated British Olympian of all time.
            The positive repercussions from hosting the Games will be felt across the UK’s capital for decades to come, thanks to the regeneration of the area and the legacy created by the state of the art stadiums and facilities such as the Velodrome and the Aquatics Centre. London 2012 was an Olympic Games that pervaded the boundaries of sport the world over, and is one that will not be quickly forgotten.
________________________________________________________________________________
           2012 has been an eventful year. We have lived, cried, laughed, mourned, celebrated, and remembered. Like any year, we won't get to live it again, but don't regret it in any way. There is no sense in saying "what if...;" just accept and live with what was.