US Government Financial Bailout Plan to Cost $700 Billion
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President Bush says government intervention in this case is essential because of risk crisis in financial markets poses to ordinary American citizens
The Bush administration is asking Congress for $700 billion for a major financial intervention plan aimed at easing global economic turmoil.President George W. Bush at the White House, 17 Sep 2008In his weekly radio address Saturday, President Bush said government intervention in this case is essential because of the risk the crisis in financial markets poses to ordinary American citizens.The plan calls for the government to purchase bad debt - such as mortgages that can not be paid back - from U.S. financial institutions, which have lost money after making risky loans.Mr. Bush says the program requires putting a lot of taxpayer's money at risk, but he said doing so will cost less than doing nothing.Democratic presidential nominee Barack Obama says he supports the efforts of Bush administration officials in charge of the rescue plan - Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke. In his party's radio address, Senator Obama said they should find a solution that helps people cope with rising gas and food prices, and that encourages job creation.Democrats and Republicans in Congress have agreed to the broad outline of the program. They are meeting in Washington to work out details.After news that a bailout plan was being developed, stock markets around the world recovered much of what was lost earlier in the week. Market analysts said the plan to remove bad loans from the financial system calmed market fears about the future of the economy.Markets plunged Monday when Lehman Brothers, a major investment bank, was allowed to collapse. Later in the week, the U.S. Federal Reserve gave an 85 billion-dollar loan to bail out American International Group, (AIG) the world's largest insurance company. AIG nearly collapsed after major losses in the housing crisis.U.S. officials say millions of U.S. mortgage loans are in default or foreclosure. When homeowners can not repay their loans, it damages lenders and investments based on mortgages.
Some information for this report was provided by AFP, AP and Reuters.
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Pakistan's President Warns Against Territorial Violations
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Asif Ali Zardari says his country will not allow foreign powers to violate its territory in name of fighting terrorism
Pakistani President Asif Zardari has addressed Pakistan's parliament for the first time, outlining plans to include lawmakers in closed-door meetings on security policies in the volatile tribal regions. VOA's Barry Newhouse reports from Islamabad, where Mr. Zardari again vowed to defend Pakistan's territorial integrity.Pakistani President elect Asif Ali Zardari, during celebration dinner at Prime Minister residence in Islamabad, 06 Sep 2008 Asif Ali Zardari addressed the ongoing controversy in Pakistan over a series of suspected U.S. missile strikes and a ground raid against militant targets by saying the country will not tolerate any violations of its sovereignty."I ask of the government that it should be firm in its resolve to not allow the use of its soil for carrying out terrorist activities against any foreign countries," he said. "We will not tolerate the violation of our sovereignty and territorial integrity by any power in the name of combating terrorism." Pakistan's military and politicians have criticized the suspected U.S. strikes in recent weeks, warning that they not only violate the country's sovereignty but undermine public support for the war against Taliban and al-Qaida fighters. President Zardari said he planned to reach out to lawmakers for their support for Pakistan's counterterrorism strategy by holding a closed-door briefing with intelligence officials. He said the strategy promises peace deals for groups willing to put down their arms, development aid for the impoverished tribal regions, and military force against those who continue to challenge the government. "Reforming the tribal areas, bringing them into the mainstream of national life can no longer be delayed. They must be treated on par with the rest of Pakistan's brethren," he said.This was his first speech to members of parliament since he replaced Pervez Musharraf in August. The president also addressed the broad presidential powers that he inherited from his predecessor by calling them "distortions." He said a committee of lawmakers should determine what to do about the constitutional amendments that give him the ability to dismiss parliament. Mr. Zardari also vowed to address the country's faltering economy, improve the rights of women and work to promote peace with Pakistan's neighbors.Opposition lawmakers in parliament criticized the speech, saying the president did not go far enough in pledging to roll-back his expanded presidential powers and has still not restored the independence of the judiciary. Mr. Zardari travels to the United States next week, where he is expected to meet with top U.S. officials on the sidelines of United Nations General Assembly meetings.
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At Least 17 Dead in Explosion at Islamabad Hotel
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Blast took place outside heavily guarded Marriott Hotel; witnesses say explosion caused by bomb-laden vehicle
View of destruction caused by bomb explosion at hotel in Islamabad, 20 Sep 2008 Police and witnesses say at least 17 people have been killed in a massive explosion at a Western hotel in Pakistan's capital, Islamabad.Saturday's blast took place outside the heavily guarded Marriott Hotel. Witnesses tell reporters the explosion was caused by a bomb-laden vehicle. Journalists on the scene counted several bodies.Television reports showed part of the hotel on fire, and windows blown out. A huge crater was seen in front of the hotel. Ambulances rushed to the scene, and debris was scattered on the street. Witnesses say the blast was heard and felt several blocks away. The blast came just hours after Pakistan's new president, Asif Ali Zardari, told parliament the country will continue its fight against terrorism and extremism.In other violence, Pakistani military officials say three soldiers and three civilians, including a child, were killed in a suicide bomb attack on an army convoy in the country's northwest.Major Murad Khan says the convoy was near the town of Mir Ali, on its way to Miran Shah, the main town in North Waziristan's tribal region, when it was attacked today.Hours later, military officials say a second army convoy hit a roadside bomb as it headed to Wana, the main town in the South Waziristan tribal area. At least two soldiers were killed, and three others injured.No group has yet claimed responsibility for either attack.Some information for this report was provided by AFP, AP and Reuters.
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Israeli PM to Resign on Sunday
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Mr. Olmert will announce his decision at Sunday's weekly Cabinet meeting before formally submitting his resignation to Israeli President Shimon Peres
Ehud Olmert Aides to Israel Prime Minister Ehud Olmert say he intends to resign Sunday, following a series of corruption allegations that have tainted his term in office.Officials say Mr. Olmert will announce his decision at Sunday's weekly Cabinet meeting before formally submitting his resignation to Israeli President Shimon Peres.Earlier this year, Mr. Olmert promised to resign following a vote by his ruling Kadima party to elect a new leader.Kadima members narrowly elected Israeli Foreign Minister Tzipi Livni on Wednesday, setting her on track to become the country's next prime minister.Livni must form a coalition in coming weeks to be sworn in as prime minister. If she fails, Israel is likely to hold a parliamentary election early next year.Mr. Olmert will continue to serve as interim prime minister until a new government is formed.The exact date of Mr. Olmert's meeting with Mr. Peres is unclear. Sources say it may take place after Mr. Peres returns from the U.N. General Assembly meeting in New York, which begins next week.Livni won Kadima's leadership contest by just one percentage point, raising concerns about her support within the party. Her rival, Transport Minister Shaul Mofaz, said Thursday he was quitting politics. Israeli opposition leader Benjamin Netanyahu is demanding an election be called immediately, saying it would be the most democratic way to pick Israel's next prime minister.
Some information for this report was provided by AFP.
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South African President Mbeki Agrees to Resign
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Ruling African National Congress party had issued call for him to do so
The African National Congress has announced it is recalling South African President Thabo Mbeki - in effect forcing him to leave office. VOA's Delia Robertson reports from our bureau in Johannesburg, a statement from the presidency says that Mr. Mbeki will "step down after all constitutional requirements have been met."South African President Thabo Mbeke (file photo)The announcement came from ANC Secretary-General Gwede Mantashe."After long and difficult discussion the ANC decided to recall the president of the republic before his term of office expires and our decision has been communicated to him," he said.Mantashe said Mr. Mbeki has agreed to his party's request to step down. He added Mr. Mbeki was informed of the decision of the National Executive Committee, the party's highest decision-making body and received the news "normally."The party's decision follows a court decision late last week declaring that the decision to prosecute ANC president Jacob Zuma was invalid because of procedural irregularities. The judge in that case also said there may have been political meddling in his prosecution. He cited several meetings between the National Director of Public Prosecutions and a former justice minister. Legally the justice minister has oversight over the National Prosecutions Authority and its head.President of S. Africa's ruling party African National Congress, Jacob ZumaThe ANC says the transition will be managed smoothly and indirectly suggested that the ANC will not seek to proceed in a way that will require an early election.However Mantashe offered no clarity on who will succeed Mr. Mbeki. Normally the deputy president will act as president and within thirty days parliament must convene to elect a permanent replacement from their ranks.However, Deputy President Pumzile Mlambo-Ngcuka has indicated she will resign out of loyalty to Mr. Mbeki. And there has been widespread speculation that as many as half of the members of cabinet will do the same.Jacob Zuma is currently not eligible because he is not a member of parliament but the party could ask for someone to resign and replace that individual with Zuma.
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Nigerian Militants Hit Another Pipeline in 'Oil War'
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Movement for the Emancipation of the Niger Delta announces its fighters destroyed oil pipeline run by local branch of Royal Dutch Shell in Rivers state late Friday
A fighter of the Movement for the Emancipation of the Niger Delta (MEND) holds his heavy machine-gun at the militia's creek camp in the Niger Delta, 17 Sep 2008Nigerian militants say they have attacked another pipeline in their so-called "oil war" in the southern Niger Delta.The Movement for the Emancipation of the Niger Delta announced Saturday that its fighters destroyed an oil pipeline run by the local branch of Royal Dutch Shell in Rivers state late Friday.The claim has not been independently verified.In an e-mailed statement, the group said it will continue to "nibble" every day at the oil infrastructure in Nigeria until oil exports reach zero.Royal Dutch Shell said Saturday that it has extended a "force majeure" (declaration of uncontrollable events) on crude oil shipments from one of its terminals because of a series of recent attacks on its facilities. The "force majeure" allows the company to suspend its contractual obligations to buyers.Fighters from the Movement for the Emancipation of the Niger Delta have attacked oil facilities in southern Nigeria nearly every day for the past week, cutting the country's daily oil production by more than 100,000 barrels.They declared war against the oil industry and military last week. The militants were responding to what they considered to be unprovoked attacks by the military.The militants say they are fighting for the Delta's impoverished people to get more of the region's oil wealth.
Some information for this report was provided by AFP and Reuters.
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US Defense Chief Urges Strong Europe to Deter Russia
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Robert Gates says Russia's recent behavior questions how successful US can be in pursuing constructive relationship
U.S. Defense Secretary Robert Gates says "Russia's recent behavior raises questions about how successful" the United States "can be in trying to pursue a constructive relationship." And he urged European allies to rebuild their defenses to deter any potential Russian aggression. VOA's Al Pessin reports from Woodstock, England, near Oxford, where Gates spoke Friday evening, just one day after calling for a "cautious" and "prudent" response to Russia's invasion of Georgia. Robert Gates at NATO defense ministers' meeting in London, 19 Sept. 2008At times using harsh language, Secretary Gates said Russia seems to be returning "to Czarist habits and aspirations," and accused it of "mauling and menacing small democracies." But at the same time, Secretary Gates said the goal of the European military buildup he would like to see is to avoid "military confrontation," and he indicated that with the right action that may be easier than it was during the Cold War."In reality, Russia's policies are borne of a grievance-based desire to dominate its 'near abroad,' not an ideology-based effort to dominate the globe," he said. "And Russia's current actions - however egregious - do not represent the existential and global threat that the Soviet Union represented."Secretary Gates spoke after spending Friday meeting with NATO defense ministers for closed-door talks that a senior U.S. official said would likely focus on what the alliance's response should be to Russia's invasion of Georgia and its effort to help Abkhazia and South Ossetia become independent. The United States has long urged NATO members to increase their defense spending and develop a more modern, deployable joint force. Secretary Gates indicated Russia's moves in Georgia could inspire NATO to do some of those things."I believe the Goergia incursion will, over time, be recognized as a Pyrrhic victory at best and a costly strategic overreach," he said. "Europe and the United States will help Georgia rebuild, and in the weeks and months ahead, will be coming to other decisions about our relationship with Russia - the decision that, could among other consequences, affect Russia's bid to join the World Trade Organization and the Organization For Economic Cooperation and Development."The NATO defense ministers will meet again in three weeks in Budapest. NATO leaders have promised Georgia it will be allowed to join the alliance, although they have not set a date. That would involve including Georgia in NATO's mutual defense pledge. That process will likely not start in Budapest, but a senior U.S. defense official said Thursday the United States wants some of the modernization plans to move forward. Gates told his audience Friday Europe and the United States "need to be careful about the commitments" they make, but also "willing to keep commitments once made." And he noted that only five of NATO's 26 members meet the group's defense budget standard - two percent of economic output. He said European countries have gone too far toward what he called "pacification," which he said is now "a potential impediment to achieving real and lasting peace," because "real or perceived weakness is always a temptation to miscalculation and aggression." He called on European allies to take what he called "steadfast and prudent steps now" in their political, economic and military policies to "shape the choices" other powers may make in the future.
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UNICEF Says Georgia's Displaced Children Head Back To School
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However, authorities say some 10,000 children not yet able to return to their homes and remain displaced
The United Nations Children's Fund says all children displaced by last
month's war between Georgia and Russia will be back in school by
October 1. UNICEF says they will join thousands of other children
who began their school year on September 15. Lisa Schlein reports for
VOA from Geneva. There were around 30,000 displaced children
when the United Nations Children's Fund began its back to school
campaign in Georgia a few weeks ago. Since then, the situation has
stabilized and most of the children and their families have returned to
the homes they fled during the brief war.Children wait for their turn to receive bread in a refugee camp in Gori, Georgia, 14 Sep 2008However, Georgian
authorities say some 10,000 children are not yet able to return to
their homes and remain displaced. UNICEF Communications Officer Robert
Cohen says the authorities are making it possible for all of these
children to go back to school by October 1.But he says they
will face some temporary inconveniences. "Out of 180 schools in
Tbilisi, there are 77 which have not yet opened for classes because
IDPs [Internally Displaced People] are still living in them or because
repairs are being made," said Cohen. "The students from these
schools are being integrated into other schools, usually through a
second shift system. Most of the IDPs who were being sheltered in
schools have been moved into kindergartens or other accommodations," he
added. And this, says Cohen, creates other problems. He says
all kindergartens in the capital, Tbilisi, are occupied by IDPs. So
the authorities, he notes, are faced with the dilemma of needing to
open kindergartens while ensuring decent living conditions for homeless
people."The government is now constructing housing for IDPs in
different areas of Georgia and according to the plan, by December first
all IDPs should have housing," said Cohen. "As these accommodations
become ready, the kindergartens will resume." Cohen says the
situation for children in villages in the so-called buffer zone north
of the town of Gori is not as promising. The buffer zone is a strip of
land that lies on the border between Georgia and its breakaway region
of South Ossetia. Russian troops remain stationed in that area.UNICEF aid workers who were able to visit villages there report schooling has not yet begun because conditions are still unsafe.Cohen
says UNICEF has distributed school supplies and recreation kits for
26,000 children. He says the agency is developing mine-risk education
programs to make children aware of the dangers of land mines and other
unexploded munitions.Cohen says surveys among displaced
children show many are severely traumatized by the war. He says
teachers in Gori and Tbilisi have been given crisis psychology training
to detect symptoms of stress among children.
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Tibet's Exile Government Wants China to Account for Missing following Uprising
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But prime minister tells VOA News there has been no communication with Chinese since their last round of unfruitful dialog in July
Tibet's government-in-exile wants China to account for the large number
of Tibetans missing following the March uprising. But the head of the
exile government tells VOA News there has been no communication with
the Chinese since their last round of unfruitful dialog in July. VOA
correspondent Steve Herman reports from Dharamsala in northern India,
the headquarters of Central Tibetan Administration.Professor Samdhong Rinpoche during a VOA interview, 20 Sep 2008The prime
minister of Tibet's government in exile wants Chinese authorities to
give an accounting of the fate of Tibetans missing since the crackdown
against those participating in anti-China demonstrations, which began
in March. In a VOA interview, Samdhong Rinpoche, who is the
Kalon Tripa or prime minister of the Central Tibetan Administration,
says it remains unclear how many Tibetans have been killed, injured or
detained by Chinese authorities since the March uprising."A
large number of Tibetans are still missing," he said. "A large number
of monks and nuns who were taken away from Lhasa are still imprisoned
in various untold places. We are hearing the unconfirmed news now they
are beginning to release [them] but not allowing [them] to go back to
the Lhasa monasteries." The International Commission of
Jurists has asked China to inform the United Nations Human Rights
Council about the March uprising in Tibet and surrounding areas. The
Commission says China's violent crackdown, included arbitrary
executions, the use of excessive non-lethal force by the security
forces and arbitrary detentions. China has repeatedly accused
the Tibetan spiritual leader, the Dalai Lama, of fomenting riots and
anti-China protests to disrupt this year's Beijing Olympic Games. Tibetan
authorities have feared an even-larger crackdown by the Chinese
following the conclusion of last month's games. But the Kalon Tripa
says there is no evidence of that yet. "It is too early to say
that now there is no danger," he said. "We shall have to wait and see.
And particularly after the next round of dialog hopefully the things
will be more clear." Rinpoche is referring to the eighth round
of dialog between his exile government and the Chinese government. It
had been scheduled for October, but Rinpoche says it is questionable
whether the talks will be held."After July contact there has
not been any interaction with them, directly or indirectly," he said.
"No dates have been confirmed."Tibetan leaders say the Chinese
made unacceptable demands on the Dalai Lama at the last round of talks.
They say if the October dialog yields no progress, the Tibetans will
likely not continue the discussions, which began six years ago. Dharamsala,
in the Indian state of Himachal Pradesh, has been the Dalai Lama's home
since he fled Tibet in 1959 after China sent in troops there to
suppress a revolt against its rule.
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Thai Central Bank Parallels US Credit Crisis With Asia Meltdown in 1990s
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Bank governor recommends greater surveillance by regional central banks and need for more policy measures in hands of central banks to deal with similar crises in future
As financial markets continued to recover from the recent wave of
selling, Thailand's central bank governor has recommended greater
surveillance by regional central banks and the need for more policy
measures in the hands of central banks to deal with similar crises in
the future. As Ron Corben reports from Bangkok.Tarisa Watanagase (file photo)According to
Thailand Central Bank Governor Tarisa Watanagase, an underlying
similarity of the current financial crisis in the United States and
Asia's financial troubles during the 1990s is poor management of the
finance and banking sectors of the economy and unsound monetary
policies.Tarisa told a symposium of senior central bank
officials Saturday the "complexity and magnitude" of the current crisis
in financial markets also raised questions whether central banks had
sufficient policy tools to deal with the turbulence. The financial
markets, she said, had grown more complex over recent years. "Looking
at the overall picture, what is now going on in Wall Street may remind
us of what happened in our region 11 years ago," said Tarisa. "At a
glance, the root causes of both events are strikingly similar:
investors taking excessively high risks creating asset price bubbles,
against the background of lax prudential and monetary policy."Asia's
financial crisis swept away billions of dollars in investments and
caused a sharp contraction in economic growth. Millions of people lost
their savings and their jobs. Tarisa warned resolving the current
financial crisis is likely to be more difficult."With today's
financial environment, however, changes in the regulatory requirements,
market players, business models of financial firms, as well as economic
conditions have all played a part in escalating the impact of financial
turmoil through the creation of a broader and deeper financial system,"
said Tarisa.Tarisa said central banks need to be prompt with
pre-emptive actions, given changing market conditions. She said
policies need to be flexible to deal with evolving challenges, while
central banks should remain independent to ensure credibility. She also
called for greater regional cooperation among the central banks.In
the past week central banks, led by the United States, European Union,
Japan, Australia and others in South East Asia, have pumped over $200
billion into fragile capital markets to ease tight credit conditions
and restore confidence.Panic swept global financial and share
markets after leading investment house, Lehman Brothers collapsed. The
U.S. government was also called on to mount an $85 billion rescue
of troubled international insurer, AIG.The crisis raised
questions over the U.S. financial system and the prospect of the merger
of more financial firms to remain solvent. The crisis was a result of
massive debts in the U.S. housing sector, that led to the most severe
housing recession in 80 years.
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