New Details in IMF Sex Case

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The chief of the International Monetary Fund (IMF), Dominique Strauss-Kahn, was arrested in New York this weekend on sexual-assault charges. Mr. Strauss-Kahn allegedly assaulted a hotel employee while traveling in the states on personal business. Police escorted him off a plane he had boarded bound for Europe, where he was scheduled to meet with German… Read more »

Europe Pressured to Revise Irish and Greek Bailouts

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There is growing consensus that the bailout terms offered last year to Greece by the European Union (EU) and the International Monetary Fund (IMF) may need to be revised. Greece is struggling to address its budget deficit target with weak tax revenues and a shrinking economy. The bailout package has failed to convince investors that… Read more »

Officials Unfazed by Dollar Slide

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The U.S. dollar fell last week to its lowest point in nearly two years, but key economic policy makers in the United States have yet to take action to prevent the currency’s decline. The U.S. dollar has dropped almost 8% against a trade-weighted basket of currencies in 2011. Although Federal Reserve Chairman Ben Bernanke has… Read more »

Trade Talk Impasse Prompts a Plan B

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The Doha Round of global trade talks aimed at promoting free trade may be on the brink of failure. Members of the World Trade Organization (WTO) seem increasingly gloomy about the prospects for a successful resolution in the current round of negotiations of the WTO. The Doha Round began in 2001, a time when China,… Read more »

Shanghai Lowers Truck Fees

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Truckers in Shanghai have mounted three days and counting of protests and work stoppages over rising costs and fees. China’s inflation hit 5.4% in March, which is its fastest pace in 32 months. The truckers contend that rising fuel costs and other expenses are making it impossible for them to be profitable. China’s level of… Read more »

World is Bitten by the Gold Bug

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Gold continued on its upward trajectory last week and closed above $1,500 per ounce for the first time on Thursday. Gold closed at record highs every day last week and it has gained 5.8% so far this year. Investors are turning to gold as a safe haven investment. Many of the major currencies have issues… Read more »

G-20 Sets Plan on Imbalances

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Finance officials from the G-20 economies met on Friday to develop plans on how to measure if nations are causing imbalances that could pose a risk to the global economy. Among the concerns are large government budget deficits and debt, high personal saving rates and debt, and large trade surpluses or deficits. The ministers also… Read more »

French Veil Ban Takes Effect

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France’s ban on full face veils went into effect last Monday. The law does not mention any specific religion or the word veil, but it makes it illegal to hide the face in public spaces. Anyone who wears the Muslim niqab or burqa in public faces fines of €150 ($216) and civil education classes about… Read more »

Icelanders Reject Deal to Repay U.K., Netherlands

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Voters in Iceland have once again voted to reject a repayment program negotiated by their government to reimburse the United Kingdom (U.K.) and the Netherlands for losses incurred by their citizens when Iceland’s banking sector collapsed in 2008. The governments of the U.K. and the Netherlands reimbursed their citizens when Iceland’s deposit-insurance program ran out… Read more »

Portugal Pleads for Rescue

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This week Portugal officially became the third euro-zone country to seek a financial bailout from the European Union (EU) and the International Monetary Fund (IMF). Preliminary estimates are that Portugal will need a bailout of around €80 billion ($114 billion), though a final determination of the bailout size has yet to be made. The country… Read more »