President Bush has imposed new sanctions against the Burmese military junta, and ordered any US assets of Burmese high officials frozen. He also ordered more restrictions on high technology exports to Burma. These are an expansion of existing sanctions.
Bush acknowledged that the measures will be less effective without regional powers joining in. "I ask other countries to review their own laws and policies, especially Burma's closest neighbors, China, India and others in the region," Bush said. In the short term, he demanded that Burma provide the Red Cross access to political prisoners, permit opposition leader Aung San Suu Kyi to communicate with other detained dissidents and allow U.N. envoy Ibrahim Gambari into the country. Ultimately, Bush said, the junta must release all political prisoners and open negotiations for democratic changes.
Government workers are striking in France, in protest against reductions in benefits proposed by Nicolas Sarkozy, the new President. It should be noted that the benefits in question are typically not enjoyed by private sector workers. The privileges allow workers in the transport and utility sectors, as well as other government administrative employees, to retire at age 50 with full benefits. Currently, there is a shortfall of US$7 billion, that taxpayers will have to shoulder.
UAW members in Michigan, Ohio, and Missouri have rejected a labor agreement with Chrysler brokered by UAW leaders, presumably on similar terms to the one with GM (UAW workers there have accepted). This isn't good news.
A suicide bomber in Pakistan killed at least 139 people and wounded at least 325. This attack comes as Benazir Bhutto returns to Pakistan to seek democratic reelection against Pervez Musharraf, who took power in a coup. He recently tried to sack the country's top judge. The high court is hearing a number of constitutional challenges to his government's authority.
Lastly, Turkey is asking the US to take action against Kurdish rebels in northern Iraq. The Kurdistan Workers Party (PKK) has made several attacks against Turkish troops, but Turkey is reluctant to send troops into Iraq for obvious reasons. The PKK is seeking an ethnic homeland in southern Turkey, and is accused of conducting terrorist attacks.
Meanwhile, the US housing secretary, Alphonso Jackson, is facing investigations over cronyism and other questionable conduct.
Lastly, lower-income American families have a partial safety net in the form of privately-run food pantries that distribute donated food to those in need. Food pantries across the US seem to be reporting an increase in requests for aid, both from existing and new clients. For all the brouhaha over the subprime mortgage blowup, the economy as a whole is relatively healthy. Corporate profits are increasing at a decent, although not spectacular, pace. Surely rising interest rates have affected a number of Americans on adjustable-rate subprime mortgages, but I think that's not the sole cause of the increased requests for food pantry assistance. The wages for lower middle class and working class Americans have failed to increase with inflation (and previous articles have argued that the CPI understates inflation for the average person).
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