Month: November 2014

Second Global Crash?

Surely everyone has been affected by the recession in some ways. While we’re drawing towards the end of it here in America the signs of its presence can be seen everywhere. Going through the downtown of an average sized city is a reminder of the economic crash that hit the global economy nearly 10 years ago. With this information in mind, the last thing anyone wants to think about is the possibility for this to happen a second time. This is what the U.K. Prime Minister, David Cameron is proposing may happen as warning signs mirroring those we saw in the previous collapse become apparent in today’s economy. This is days after the Bank of England noted a “specter of stagnation” to the U.K.’s economy. This is adding to fears that the constant threat of low job availability and high debt will become a normal in Europe and possibly the world. Many are asking why this is happening, why at a time that economic growth seems apparent, are we having this looming threat of economic collapse. Many believe it has to do with the fact that the emerging market economies of developing countries that fueled the growth of the global economy after the recession are beginning to slow as they turn to a more stable production based economy. Essentially the countries that were providing service to the global economy are seeking their own economic growth attributing to an over saturation of a kind in the global scheme of things.

While the answer to this problem in 2008 was to simply raise taxes and cut back on programs, world economic experts are advising against this. Why repeat the same mistakes that caused the collapse in the first place. This is causing a brainstorm of economic ideas on how to fix the situation at hand. Many of these ideas include increasing programs that lead to the creation of more jobs and therefore the adding of more economic growth to the global economy. These talks are at a key moment following the G20 Summit in which world leaders came together to speak on issues such as these along with other pressing world matter. In these talks other methods to growing the global economy include closing tax loopholes for large corporations and increasing the availability of government programs that stimulate job and economic growth. It’s nice to see global leaders realize that the problems of the past still apply to today and that repeating the same mistakes will not fix the issue because it is 6 years later.

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Total War in Ukraine?

Ukraine’s president, Petro Poroshenko claimed that Ukraine was preparing for total war with pro-Russian rebels in light of recent thoughts on rebel movements. While a shaky cease-fire has been in place in the region, artillery bombardments have continued in hot-spot areas of rebel activity. These bombardments have been growing as fear over a pro-Russian rebel force preparing for an offensive attack on Ukraine continues to mount. These fear is only enhanced by the fact that unmarked military vehicles have been transporting troops and supplies over the Russian-Ukrainian border over the past couple weeks. These reports come at an interesting time due to the recent G20 Summit in which Russian president Putin was placed under large political pressure from western and UN leaders.

What’s important to note is the Ukrainian president’s comment that although war seems inevitable at this point, he wants peace and would do anything to cement the cease fire into a peace agreement. This however, does not mean that the country is unprepared leading many European leaders to believe that Ukraine has been training their army in the past several months. The peaceful views of the Ukrainian president are reportedly echoed through Putin who went on record saying there was a “Good chance of resolution”. While this may be true that the two leaders views coincide, if what Putin has been saying since the start of the crisis, that the Russian government is in no way endorsing these rebels, then his words mean little.

Fortunately for Ukraine, however, is the increasing support the country is receiving from Western forces. Multiple European countries have gone on record denouncing the Pro-Russian forces and pledging support to Ukraine should the country come under any serious pressure from the Russian forces. This has increasing political ties to the area in which the EU is actively attempting to gain political support in the previously Soviet dominated Baltic regions.

This is an increasingly politically and socially taxing times especially in regions of continuous political struggle such as the Baltic region. While the Ukraine crisis may be drawing to end by means of peace or war, this will without a doubt not be the last time nationalist forces attempt to seize political domination over an area with a history for political turmoil. Seeing how this issue is resolved will certainly set the stage for future involvement in the area. One can only hope a permanent peaceful solution will be found in the troubled area.

Climate Change Deals

In a historic event, The Chinese and American Presidents, Xi Jinping and Barack Obama have declared plans to cut both countries carbon emissions by over 20% by the year 2025. This hugely important move in the name of climate change comes from both leaders agreeing that as the worlds largest economies and power users, China and America should set the precedent for newly industrializing and already industrialized nations on the issue of power use and production. While both countries have used green means of energy production the levels at which these are taking place are no where near what is needed to change our current path. This new deal however, is a step in the right direction although it is not a permanent solution to the issue of climate change and green energy production. These cuts to carbon emissions are coming from a multitude of direction, however the most heavily based is the economic advantages and opportunities that will be set aside for green energy. This is also a topic that the leaders help will spill over into industrializing countries. Instead of them investing their money in oil and other forms of fossil fuel production, they are encouraging other leaders to pour more money into green energy alternatives.

These deals do no good unless the citizens of the respective countries are on board as well. Because of this incentives for green energy will be put in place in America and abroad for citizens. These include lower energy bills, tax breaks, and other ways to help push the need for renewable energy onto  people. Hopefully these incentives will help to bring green power to households throughout America.

This comes at a pivotal point in American politics due to the recent mid-term elections which saw democrats effectively lose majority power in the House of Representatives to Republicans. While it is too early to say if these power shifts will affect the plans on switching to green energy , President Obama is hopeful that these shifts in power will not supersede  the need for green energy.

Surely this deals are important to the future of not only out country, but to the world as well. As more countries become increasingly industrialized the need for green energy looms overhead. Seeing this get international attention is hopeful to say the least that we may finally be doing something about a very real and serious issue our and future generations will have to deal and live with on a daily basis