In an unprecedented move, Swift, a major world-wide communication network, has announced to pull out from Iran’s financial sector on Thursday. Around 30 financial institutions in Iran are going to be affected by the move which is going to take effect on Saturday. Once effective, it could severely hamper Iran’s ability to do international business electronically and isolate it from the global financial world.
The Society for Worldwide Interbank Financial Systems, in short, Swift has acknowledged that they are following the orders of the European Union (EU). Withdrawing communication services is a part of economic sanctions against Iran that European Union want to impose through Swift.
The Society for Worldwide Interbank Financial Systems is a Belgium-based consortium, governed by the European Union (EU) law. Iran regularly uses Swift to repatriate its huge proceeds from oil as well as other petroleum-based products.
As of now there is no reaction from Iranian authority. But they have been highly critical of western powers, mainly the United States and Europe, which they see as bullies, for imposing economic sanctions against oil-rich Iran. On the other hand, Europe and the United States are using the sanctions to pressurize Iran to stop its uranium-enrichment program. Enriched Uranium is useful for building nuclear weapons as well as for treatment in cancer therapy.
Showing posts with label United States. Show all posts
Showing posts with label United States. Show all posts
Thursday, March 15, 2012
Saturday, March 10, 2012
Robust employment growth continues in the United States
Economy seems to be in the path of recovery in the United States boosted by strong job growth for the third consecutive month. The United States Labor Department has confirmed an addition of 2,27,000 new jobs in February alone, which has surpassed experts’ expectation by 17000 new jobs. Although unemployment rate is still steady at 8.3 percent, surge in jobs has brought renewed hope in the US.
Since December last year, there has been 7,34,000 addition of new jobs in the US. Interestingly, the latest burst in job growth is the second since recession, the first one continued for three consecutive months from March to May 2010.
The improvement in the United States job market scenario and the growth in the manufacturing sector are expected to give a major advantage to President Obama’s re-election chances in November 2012. Though Republicans are not prepared to give it much importance, Obama’s approval rating is on the rise since the last couple of months.
Now the big question is, will the current momentum be sustainable enough to bring down the unemployment rate? People in the United States are hopeful that it would, but only time would tell.
Since December last year, there has been 7,34,000 addition of new jobs in the US. Interestingly, the latest burst in job growth is the second since recession, the first one continued for three consecutive months from March to May 2010.
The improvement in the United States job market scenario and the growth in the manufacturing sector are expected to give a major advantage to President Obama’s re-election chances in November 2012. Though Republicans are not prepared to give it much importance, Obama’s approval rating is on the rise since the last couple of months.
Now the big question is, will the current momentum be sustainable enough to bring down the unemployment rate? People in the United States are hopeful that it would, but only time would tell.
Tuesday, March 6, 2012
Iran to discuss its nuclear program with global powers
After more than a year of diplomatic standoff, the six-nation global powers are to resume dialogue with Iran on the highly contentious Iran nuclear program. The announcement came from the Chief of foreign affairs of EU, Catherine Ashton, on Tuesday who is currently acting for the six global powers – the United States, Britain, France, Germany, China and Russia.
The offer for negotiations was made by Iran last month amid tremendous international pressure to halt its nuclear program. On Tuesday, Iran has made another peace offer. For the first time, it has shown willingness to give access to International Atomic Energy Agency (IAEA) nuclear experts to visit its main nuclear complex. By making such an offer, it is believed, Iran is trying to send out the message that its nuclear program is for peaceful purposes only, that it has nothing to hide.
The United States together with the neighboring Israel have been alleging Iran of using its nuclear program for building nuclear weapons. While, Israel has openly declared its intention to destroy Iran’s nuclear facility, the United States has shown marked restrain from making any such comments till now. President Obama of the United States has pointed out “beating the drums of war” is of no use. It has to justify the costs and merits of military action.
In fact, in today’s world, war should not be an option. Whichever side wins, it is colossal loss to mankind. War must not be justified under any pretext.
The offer for negotiations was made by Iran last month amid tremendous international pressure to halt its nuclear program. On Tuesday, Iran has made another peace offer. For the first time, it has shown willingness to give access to International Atomic Energy Agency (IAEA) nuclear experts to visit its main nuclear complex. By making such an offer, it is believed, Iran is trying to send out the message that its nuclear program is for peaceful purposes only, that it has nothing to hide.
The United States together with the neighboring Israel have been alleging Iran of using its nuclear program for building nuclear weapons. While, Israel has openly declared its intention to destroy Iran’s nuclear facility, the United States has shown marked restrain from making any such comments till now. President Obama of the United States has pointed out “beating the drums of war” is of no use. It has to justify the costs and merits of military action.
In fact, in today’s world, war should not be an option. Whichever side wins, it is colossal loss to mankind. War must not be justified under any pretext.
Sunday, March 4, 2012
China allocates a whopping 11 percent for defense budget
On Sunday, China has declared that it would spend more than 11 percent on defense in the year 2012. The hike in defense budget would shoot up China’s military spending to around $106 billion in 2012. This is approximately 68 billion dollars more as compared to last year’s budget.
China’s double-digit spending program has raised concerns in the United States as it fails to clarify China’s real intention behind such a large-scale investment on defense other than strengthening its (sovereign) security. There is also no mention regarding the type of weapons China is going to build. It is believed that the real figure could be much higher keeping in mind China’s policy to keep its decision-making under wrap.
Since the last decade, China has been gradually increasing its defense spending. It is believed that China’s defense policy is aimed at counteracting growing American presence in the region. China is a growing economic power in Asia along with India.
Currently, the United States is pushing for more clarity in China’s military policy. Last year, the two countries were engaged in strategic security dialogue, attended by several military officials and senior citizens from both Washington and Beijing. Though it failed to produce any result, analysts are of the opinion that more dialogues are needed in the future to ease the tension between the two countries.
China’s double-digit spending program has raised concerns in the United States as it fails to clarify China’s real intention behind such a large-scale investment on defense other than strengthening its (sovereign) security. There is also no mention regarding the type of weapons China is going to build. It is believed that the real figure could be much higher keeping in mind China’s policy to keep its decision-making under wrap.
Since the last decade, China has been gradually increasing its defense spending. It is believed that China’s defense policy is aimed at counteracting growing American presence in the region. China is a growing economic power in Asia along with India.
Currently, the United States is pushing for more clarity in China’s military policy. Last year, the two countries were engaged in strategic security dialogue, attended by several military officials and senior citizens from both Washington and Beijing. Though it failed to produce any result, analysts are of the opinion that more dialogues are needed in the future to ease the tension between the two countries.
Tuesday, January 24, 2012
Is global recession imminent?
In the midst of market uncertainty coupled with sluggish economic growth, few had expected robust beginning to this New Year. But few had actually anticipated or openly admitted that attempts to bring global economy back on track could be numbered. That Eurozone has approached ‘a perilous new phase,’ acknowledged by none other than the International Monetary Fund (IMF) on Tuesday has certainly given it credibility. But hasn’t the threat of global recession been on the cards for some time now?
The bleak prediction by International Monetary Fund is based on two prevailing situations – high financing cost borne by euro zone nations and European banks facing severe credit crunch. Experts are of the opinion that each of the two conditions could have triggering effect on the other and may lead to further economic contractions.
Factors outside Eurozone could also have a large impact on global economy. Important among them are hike in global oil price due to sanctions on Iran, investor fear in the prevailing market scenario or possibility of spill-over effect of European debt crisis on other big economies like the United States as well as emerging economies like Japan.
On its quarterly updates, IMF has scaled down its previous global growth estimates of the year 2012 from 4 percent to 3.25 percent. In her latest speech, Managing Director of IMF, Christine Lagarde, has called on all the nations of the world to help bolster the bail-out fund and combat the threat of global recession. Currently, the fund is seeking $500 billion in addition to its present reserve.
The bleak prediction by International Monetary Fund is based on two prevailing situations – high financing cost borne by euro zone nations and European banks facing severe credit crunch. Experts are of the opinion that each of the two conditions could have triggering effect on the other and may lead to further economic contractions.
Factors outside Eurozone could also have a large impact on global economy. Important among them are hike in global oil price due to sanctions on Iran, investor fear in the prevailing market scenario or possibility of spill-over effect of European debt crisis on other big economies like the United States as well as emerging economies like Japan.
On its quarterly updates, IMF has scaled down its previous global growth estimates of the year 2012 from 4 percent to 3.25 percent. In her latest speech, Managing Director of IMF, Christine Lagarde, has called on all the nations of the world to help bolster the bail-out fund and combat the threat of global recession. Currently, the fund is seeking $500 billion in addition to its present reserve.
Friday, January 6, 2012
Iran President Mahmoud Ahmadinejad to visit Latin America
Mahmoud Ahmadinejad, the head of the state of Iran, is scheduled for a four-nation tour of Latin America, beginning Sunday. His first stop would be Caracas (Venezuela) where he is set to meet his long-time friend and ally President Hugo Chavez. The rest of his itinerary includes Cuba, Ecuador and Nicaragua. The tour is seen to aim at obtaining outside support and economic ties for Iran which is under intense international pressure to stop its nuclear program.
On his five day tour, the Iranian President may also visit Guatemala looking for new economic partnerships. The President is most likely to be accompanied by his Energy Minister, Majid Namjoo. He has claimed that the tour is for promoting bilateral trade and finding new trading partners in Latin American nations.
Interestingly, Ahmadinejad’s tour does not include Brazil, which is a major economic powerhouse in the region and with whom Iran has strong trading ties. Neither does it include other big Latin American countries like Argentina, Mexico or Columbia where the United States enjoys support.
The United States opines that the upcoming tour is unlikely to generate interest in Latin American countries against the backdrop of sanctions and Iran’s nuclear program.
On his five day tour, the Iranian President may also visit Guatemala looking for new economic partnerships. The President is most likely to be accompanied by his Energy Minister, Majid Namjoo. He has claimed that the tour is for promoting bilateral trade and finding new trading partners in Latin American nations.
Interestingly, Ahmadinejad’s tour does not include Brazil, which is a major economic powerhouse in the region and with whom Iran has strong trading ties. Neither does it include other big Latin American countries like Argentina, Mexico or Columbia where the United States enjoys support.
The United States opines that the upcoming tour is unlikely to generate interest in Latin American countries against the backdrop of sanctions and Iran’s nuclear program.
Thursday, January 5, 2012
Has the proposed oil ban by EU unsettled Iran?
In spite of the continuing war of words and defiant stand, has the proposed crude oil boycott by the European Union (EU) succeeded in softening Iran’s stand? Why else would Iran go on record on Thursday saying that the latest economic sanctions by the United States and the threat posed by the EU to stop nuclear program or face ban on oil export are equivalent to “an economic war”? Why would Iran waste time complaining when it could carry out its threat?
Again, “Iran threatening to take action against United States,” if an American aircraft carrier that left for Gulf of Oman via the Strait of Hormuz were to return to Persian Gulf – made news headline on Tuesday. Though there has been no report of United States making any changes to its military deployments at the Strait, no fresh tension has been reported in the Persian Gulf region till Thursday. What does it say?
Iran already has non-existent trade relationship with U.S. Its relationship with Britain is at an all time low. Currently 17 percent of Iran’s crude oil business comes from EU, which contributes a significant amount to Iran’s coffer. Under these circumstances, can Iran really afford fresh economic sanctions from EU? Is its economy in a position to continue with the nuclear program and suffer a new setback? Facts say otherwise, but only time would tell.
Again, “Iran threatening to take action against United States,” if an American aircraft carrier that left for Gulf of Oman via the Strait of Hormuz were to return to Persian Gulf – made news headline on Tuesday. Though there has been no report of United States making any changes to its military deployments at the Strait, no fresh tension has been reported in the Persian Gulf region till Thursday. What does it say?
Iran already has non-existent trade relationship with U.S. Its relationship with Britain is at an all time low. Currently 17 percent of Iran’s crude oil business comes from EU, which contributes a significant amount to Iran’s coffer. Under these circumstances, can Iran really afford fresh economic sanctions from EU? Is its economy in a position to continue with the nuclear program and suffer a new setback? Facts say otherwise, but only time would tell.
Wednesday, January 4, 2012
Prospect of oil export ban looms large on Iran
In an attempt to put further pressure on Iran, European Union is mulling over taking the toughest stand so far – impose a ban on Iranian crude oil import. The latest development has taken place on Wednesday when leaders of European nations joined forces to stop Iran from continuing with its nuclear program. A final decision is likely to be reached on January 30.
Till now, Iran has maintained that its nuclear program is purely aimed for civilian purposes. But the United States, now the European Union and most of the world see it otherwise. They want Iran to immediately stop its uranium enrichment. In the meantime, European Union nations who depend on Iran for crude oil would have to find alternative solutions.
It is reported that export of crude oil make up more than 50 percent of Iran’s revenue, out of which Europe alone contributes roughly 17%. If European nations go ahead with their decision to stop oil import from Iran, it would have to hunt for new buyers in Asia to make up for trade in Europe. That too looks like Iran would probably have to settle for a price lower than what it is getting from Europe. Currently, Iran has no trading relation with the United States. Even the United Kingdom and Canada have recently imposed sanctions on Iran. Seeing from here, the future surely looks quite bleak for Iran.
Till now, Iran has maintained that its nuclear program is purely aimed for civilian purposes. But the United States, now the European Union and most of the world see it otherwise. They want Iran to immediately stop its uranium enrichment. In the meantime, European Union nations who depend on Iran for crude oil would have to find alternative solutions.
It is reported that export of crude oil make up more than 50 percent of Iran’s revenue, out of which Europe alone contributes roughly 17%. If European nations go ahead with their decision to stop oil import from Iran, it would have to hunt for new buyers in Asia to make up for trade in Europe. That too looks like Iran would probably have to settle for a price lower than what it is getting from Europe. Currently, Iran has no trading relation with the United States. Even the United Kingdom and Canada have recently imposed sanctions on Iran. Seeing from here, the future surely looks quite bleak for Iran.
Tuesday, January 3, 2012
Iran locks horn with US over withdrawing Navy fleets
Only a day after Iran’s successful testing of its nuclear fuel rods, fresh tension brewed in the Gulf as Iran warns United States to pull out its Navy fleet from the Persian Gulf or face consequences. The veiled threat came on Tuesday from Iran’s military commander Major General Ataollah Salehi after the conclusion of Iran's naval parade near the Strait of Hormuz. Salehi was referring to a U.S. Aircraft carrier which had been moved last week from the Persian Gulf to the Gulf of Oman on account of its naval drill.
The United States has refused to budge from the Strait of Hormuz citing its commitment towards the safety of international maritime traffic. The Strait of Hormuz serves as the world’s largest and busiest waterway for international oil trade. If this strategic route is closed, this would have severe negative impact on global oil supply and shoot up oil prices throughout the world.
Isolation from the global community and four economic sanctions by the United Nations have already taken a heavy toll on Iran’s economy. Tuesday saw Iran’s currency, rial, hitting a record low as a new round of international sanction became a possibility. At one time, news came in that the government of Iran may stop trading relations with UAE (the United Arab Emirates) for aligning with the United States, which was later denied by the government of Iran. The question is could Iran ever be able to end the deadlock with the world community or is it destined to remain isolated from the rest of the world?
The United States has refused to budge from the Strait of Hormuz citing its commitment towards the safety of international maritime traffic. The Strait of Hormuz serves as the world’s largest and busiest waterway for international oil trade. If this strategic route is closed, this would have severe negative impact on global oil supply and shoot up oil prices throughout the world.
Isolation from the global community and four economic sanctions by the United Nations have already taken a heavy toll on Iran’s economy. Tuesday saw Iran’s currency, rial, hitting a record low as a new round of international sanction became a possibility. At one time, news came in that the government of Iran may stop trading relations with UAE (the United Arab Emirates) for aligning with the United States, which was later denied by the government of Iran. The question is could Iran ever be able to end the deadlock with the world community or is it destined to remain isolated from the rest of the world?
Tuesday, November 1, 2011
Palestine achieves UNESCO membership
Palestine has touched a major landmark on Monday as it won full membership in UNESCO – it has become the 195th member of the world body. In what appears to be a high-voltage dramatic moment, 93 delegates voted for Palestine out of the total 173 member delegates present. Only 14 votes went against inclusion of Palestine in the UN agency and 52 votes was reported abstentions.
The United Nations Educational, Scientific and Cultural Organization conducts and promotes various literacy and cultural events throughout the globe, apart from safeguarding the world heritage sites. It relies heavily on the American funding, which accounts for 22 percent of the total annual budget of UNESCO. The autonomous world body will also lose another 3 percent annual contribution from Israel. By defying the United States and granting full membership to Palestine, the UN agency has accepted significant financial loss. There is a growing concern that shortage of fund might send the Middle East peace efforts for a toss.
The United States has threatened to stop UNESCO funding and has cancelled $ 60 million planned for the month of November.
Monday’s vote signifies a symbolic victory for Palestine. As Palestine signs the founding charter of UNESCO, it will officially become the 195th member.
The United Nations Educational, Scientific and Cultural Organization conducts and promotes various literacy and cultural events throughout the globe, apart from safeguarding the world heritage sites. It relies heavily on the American funding, which accounts for 22 percent of the total annual budget of UNESCO. The autonomous world body will also lose another 3 percent annual contribution from Israel. By defying the United States and granting full membership to Palestine, the UN agency has accepted significant financial loss. There is a growing concern that shortage of fund might send the Middle East peace efforts for a toss.
The United States has threatened to stop UNESCO funding and has cancelled $ 60 million planned for the month of November.
Monday’s vote signifies a symbolic victory for Palestine. As Palestine signs the founding charter of UNESCO, it will officially become the 195th member.
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