(NYT)

Any deal to cut the deficit must shield the most vulnerable Americans.

House Spurns Obama on Libya, but Does Not Cut Funds

By JENNIFER STEINHAUER 

The House dealt a symbolic blow to President Obama by rejecting a bill to authorize the operations in Libya, but also turned back a measure that would have cut financing for the effort.

After N.Y. Senate Vote, Governor Cuomo Signs Gay Marriage Bill

By NICHOLAS CONFESSORE and MICHAEL BARBARO

The law will take effect in 30 days, making New York the largest state where gay and lesbian couples will be able to wed and giving the gay-rights movement new momentum.

By CHRISTINE HAUSER (NYT)

Retail sales fell for the first time this year, but stocks rallied by more than 1 percent in part because sales were not as bad as expected.

By DAVID LEONHARDT (NYT)

Both parties have reason to compromise on the debt talks under way as the economy shows signs of stumbling.

By EDWARD WONG (NYT)

In recent weeks, Vietnam, the Philippines and Japan have all voiced concerns or made formal complaints about Chinese nautical movements.

C.I.A. Building Base for Strikes in Yemen

By MARK MAZZETTI

Al Qaeda in the Arabian Peninsula is the target of a secret facility under construction somewhere in the Middle East, an American official confirmed.

Fleeing Syrians Take Refuge Along Border With Turkey

By SEBNEM ARSU and ANTHONY SHADID

Hundreds of Syrians displaced by a ferocious military crackdown fled to the border by tractor, truck and foot, residents said.

Pakistan Arrests C.I.A. Informants in Bin Laden Raid

By ERIC SCHMITT and MARK MAZZETTI

Pakistan's detention of five C.I.A. informants, including a Pakistani Army major, is the latest evidence of the fractured relationship between the United States and Pakistan.

More to Syria Than Meets the Eye -- Major Power Battle Between Kremlin and US Underway, And the Stakes Are High

With Saudi, Israeli and Turkish interests aligning against it, the Kremlin seems in deep water -- could it lose its last naval base in the Mediterranean?

The Militarization of America: How the Military Mindset Is Permeating Our Political Culture and Society

Our president and elected representatives must serve as a check on the military establishment, rather than issuing blank checks to them

Financial Crisis in Greece (Updated)

Based on an article by Vasilis Giavris, Greece in Crisis

Researched by Gabriel Kazakias – Revised 06/23/2011

The government corruption in Greece brings the country to the brink of bankruptcy.  With its deficit at 10.5%, Greece finds itself unable to meet its internal and external loan obligations.

During the past decades, as far back as the 1880’s, Greece obtained substantial loans from the international capital markets. Despite Greece having participated in two World Wars, Greece has been forced to continue to repay these loans – loans that both legally and morally should have been withdrawn and declared void many decades ago. Who is to be blamed?

In October 2009 the government reported that the Greek budget deficit went from “6-8%” (estimated by the previous government) to approximately 15.4% of GDP. As a result, Greece was unable to sell its bonds in the international market. The government then requested financial assistance from the IMF and the World Bank.

IMF and the World Bank agreed to provide Greece a 110 billion euro rescue package conditional on the implementation of austerity measures including cutbacks to existing pension and wages and dramatic changes in employment laws. The total World Bank loan amount is 80 billion euros, the IMF has agreed to provide extra 30 billion euros, bringing the total loan amount to 110 billion euros.

To date World Bank has disbursed 37.9 billion euros while the IMF has made 4 disbursements totaling 14.5 billion euros. Repayment will start the first quarter immediately after the expiration of 3 years and must be completed within 5 years. The loans are subject to quarterly reviews by the World Bank members and the IMF, if they determine that Greece does not meet these conditions then the payments will cease. 

The Loan agreements were incorporated in Greek law and it effectively permitted the Finance Minister of Greece to negotiate and enter into the loan agreements on behalf of Greece. However, according to certain legal analysts Article 28 of the Greek Constitution requires laws that deal with the international status required to be voted by a 3/5 parliamentary majority with the final approval from the President of Greece. Such approval was never obtained.

The waiver of sovereign immunity says that Greece “irrevocably and unconditionally waives all immunity. In effect, Greece has agreed to waive its rights to sovereign immunity and is capable of being sued in foreign courts and its assets attached, confiscated and sold to satisfy a debt. As such, the lenders have the right to take legal action against Greece in the Court of Justice in the European Union for breach of contract. The question remains if Greece has agreed to surrender national territory in order to satisfy the debt/loan requirements. While the Greek government denies that this is the case the reference to waiver of “sovereign immunity” in relation to Greece and its property may indeed constitute a waiver of sovereign territorial integrity.

There is an open international issue regarding the German Occupation loan (WWII) which was obtained by Germany for Greece in 1942. The matter of the loan repayment was first raised with Germany in 1945-1946 and again in 1964. It was initially noted that the repayment would occur upon the unification of Germany. However this has not occurred. In 1995 Former Greek Prime Minister Andreas Papandreou officially raised this matter but it was rejected by Germany and unfortunately, since 1995, no Greek Prime Minister has again raised this issue. But if Greece is required to meet its loan obligations now then there is no reason why the same should not apply to Germany.

To date the Greek government has remained steadfast in its position of no debt restructuring and its determination to fully service its debt obligations. Greece maintains that “the debt is sustainable“. The Greek government insists that Greece can recover without restructuring its debt. The government agreed last year to reduce spending as a condition for the first bailout package. Those austerity measures are now a big source of social discord.

Financial experts agree now that Greece is going to need more money to avoid a messy default that could shake Europe's banking system and its entire economy. They are waiting for the Greek government to take the additional measures to cut the deficit. Even though Greece got a 110 billion loan package last year, EU officials concede another bailout is needed but have not agreed on the conditions yet. Greece’s prime minister is talking with international creditors about a second bailout package "roughly equal" to the first 110 billion euro package accepted a year ago.

But what if Greece defaults?

A decade ago, as Argentina’s economy was collapsing banks barricaded to keep out protesters demanding access to their life savings. It was a low moment for Argentina as it froze bank accounts and defaulted on billions in mostly foreign debt. Today, the debilitating effects of Argentina’s default still linger, a decade later and Argentina has still not been able to re-enter the global credit market. Let’s face it, default is not free, the defaulted country will not be considered a serious country until, financially, it proves otherwise.

Some economists say (I hope they are wrong) that Greece’s prospects could prove worse than Argentina. Argentina was and still is a big exporter of agricultural products, and it runs a foreign-trade surplus while the Greek economy is mainly services, particularly tourism, and Greece repeatedly runs a trade deficit. Moreover, at the time of its default Argentina had a fiscal deficit of 3.2 percent of G.D.P. Greece’s deficit is close to 16 percent of G.D.P.

But perhaps the biggest problem or advantage is that Greece shares a common currency with the other European nations, the euro. And so, unless Greece takes the step of breaking from the euro, Greece can’t devaluate its sovereign currency - a tool that has helped Argentina ride out its economic storm.

During the 1990s, Argentina privatized many industries, which led to high unemployment but also made Argentina’s economy more efficient. Greece’s public sector accounts for about 40 percent of its economy and it is now under heavy privatization pressure.

Usually after bankruptcy the commercial creditors do not expect to get paid but the official creditors like EU, ECB and IMF demand their money. The one creditor that Argentina paid back in full was the IMF.

Eric Cantor (R-VA) decided to pull out of talks with Joe Biden on what to do about the debt. He placed the problem in President Obama’s and Speaker’s Boehner’s laps saying there were issues relating to taxes that only they could resolve.

By BLOOMBERG NEWS (NYT)

Claims for unemployment benefits rose by 9,000, to 429,000, in the latest week, above the highest estimates of economists.

Karzai Welcomes Withdrawal, but Many Afghans Are Wary

By ALISSA J. RUBIN and TAIMOOR SHAH

Even as many senior Afghan officials echoed President Hamid Karzai, closer to the ground, local leaders and ordinary people expressed fears of civil war.

Mullen Backs Afghan Pullout Plan but Calls It Riskier

By MARK MAZZETTI and SCOTT SHANE

The chairman of the Joint Chiefs of Staff, Adm. Mike Mullen, said Thursday that President Obama's timetable was more aggressive than he had been prepared to accept.

Budget Talks Near Collapse as G.O.P. Leader Quits

By CARL HULSE

Representative Eric Cantor, the House majority leader, abandoned the negotiations Thursday, and Republicans said they would not give in to a push by Democrats for new revenue.

Over-Prescribed: How Taking Too Many Pills is Hurting Americans

Aggressive marketing pushes drugs on patients well beyond clinical usefulness, and it's thinning their wallets and threatening their health.

What's Your Retirement Plan? Social Security Benefits Should Expand -- And Here's How to Do It

Under the current system, we have elderly people living on less than $10,000 a year. Is that what Democrats want to "save"? Let's grow Social Security.

By BLOOMBERG NEWS (NYT)

Broad market indexes were off after the Federal Reserve said it would stand pat on its stimulus measures and not add any new programs to boost the economy for now.

By BINYAMIN APPELBAUM (NYT)

The Federal Reserve said it would complete a planned purchase of $600 billion in Treasury securities next week as scheduled.

The national debt could equal the annual size of the economy within a decade, the Congressional Budget Office says.

War Evolves With Drones, Some Tiny as Bugs
WRIGHT-PATTERSON AIR FORCE BASE, Ohio — Two miles from the cow pasture where the Wright Brothers learned to fly the first airplanes, military researchers are at work on another revolution in the air: shrinking unmanned drones, the kind that fire missiles into Pakistan and spy on insurgents in Afghanistan, to the size of insects and birds.

By REUTERS (NYT)

In May, sales of previously owned homes were down for a second month and 15.3 percent over the last year.

By BINYAMIN APPELBAUM (NYT)

This month, the Federal Reserve is ending its program help the economy by purchasing Treasuries and providing other aid that will total about $2 trillion.

By DAVID LEONHARDT (NYT)

The problem with the budget debate is just how many of the cuts fall on a relatively small part of the government.

By SALMAN MASOOD (NYT)

The detention of the brigadier raises serious concerns about the infiltration of elements sympathetic to Islamic extremists in the higher ranks of the army.

Slow Domestic Economy Puts Focus on Cost of Two Wars

By HELENE COOPER

As President Obama contemplates the U.S. future in Afghanistan, his critics and allies alike are comparing the cost of the war to what is not being spent to bolster the sagging economy.

Opinion: Financial Crisis in Greece - Why & When 

Researched by Gabriel Kazakias, based on an article by Vasilis Giavris

The government corruption in Greece brings the country to the brink of bankruptcy.  With its deficit at 10.5%, Greece finds itself unable to meet its internal and external loan obligations.

During the past decades, as far back as the 1880’s, Greece obtained substantial loans from the international capital markets. Despite Greece having declared at least two bankruptcies on previous occasions and participating in two World Wars, Greece has been forced to continue to repay these loans – loans that both legally and morally should have been withdrawn and declared void many decades ago. Who is to be blamed?

In October 2009 the government reported that the Greek budget deficit went from “6-8%” (estimated by the previous government) to approximately 15.4% of GDP. As a result, Greece was unable to sell its bonds in the international market. The government then requested financial assistance from the IMF and the World Bank.

IMF and the World Bank agreed to provide Greece a 110 billion euro rescue package conditional on the implementation of austerity measures including cutbacks to existing pension and wages and dramatic changes in employment laws. The total World Bank loan amount is 80 billion euros, the IMF has agreed to provide extra 30 billion euros, bringing the total loan amount to 110 billion euros.

To date World Bank has disbursed 37.9 billion euros while the IMF has made 4 disbursements totaling 14.5 billion euros. Repayment will start the first quarter immediately after the expiration of 3 years and must be completed within 5 years. The loans are subject to quarterly reviews by the World Bank members and the IMF, if they determine that Greece does not meet these conditions then the payments will cease.  

The Loan agreements were incorporated in Greek law and it effectively permitted the Finance Minister of Greece to negotiate and enter into the loan agreements on behalf of Greece. However, according to certain legal analysts Article 28 of the Greek Constitution requires laws that deal with the international status required to be voted by a 3/5 parliamentary majority with the final approval from the President of Greece. Such approval was never obtained.

The waiver of sovereign immunity says that Greece “irrevocably and unconditionally waives all immunity. In effect, Greece has agreed to waive its rights to sovereign immunity and is capable of being sued in foreign courts and its assets attached, confiscated and sold to satisfy a debt. As such, the lenders have the right to take legal action against Greece in the Court of Justice in the European Union for breach of contract. The question remains if Greece has agreed to surrender national territory in order to satisfy the debt/loan requirements. While the Greek government denies that this is the case the reference to waiver of “sovereign immunity” in relation to Greece and its property may indeed constitute a waiver of sovereign territorial integrity.

We need to now mention an open international issue in regards to the German Occupation loan (WWII) which was obtained by Germany for Greece in 1942. The matter of the loan repayment was first raised with Germany in 1945-1946 and again in 1964. It was initially noted that the repayment would occur upon the unification of Germany. However this has not occurred. In 1995 Former Greek Prime Minister Andreas Papandreou officially raised this matter but it was rejected by Germany and unfortunately, since 1995, no Greek Prime Minister has again raised this issue. But if Greece is required to meet its loan obligations now then there is no reason why the same should not apply to Germany.

To date the Greek government has remained steadfast in its position of no debt restructuring and its determination to fully service its debt obligations. Greece maintains that “the debt is sustainable“. The Greek government insists that Greece can recover without restructuring its debt.

Whatever decision is made it needs to be made carefully and methodically. It is a decision that needs to be made by the Greek people for the Greek people.

Demanding political reform and autonomy, tens of thousands of rebel fighters in the Nuba Mountains have refused the Sudanese government’s threat to disarm.

Assad Offers Path to Change in Syria, but Few Specifics

President Bashar al-Assad has offered a dialogue, but the question remains: If the government is sincere, whom would it talk to?

Justices Rule for Wal-Mart in Class-Action Bias Case

The Supreme Court ruled for Wal-Mart in blocking a lawsuit that had sought to consolidate claims of up to 1.5 million women who worked there.

CEO of Walmart Makes in One Hour What the Average Employee Makes In a Year: How Skyrocketing Inequality Is Hurting America

A new report shows exactly who the top 0.1 percent of Americans with all the wealth are. The question is, what can we do about it?

“There is an immediate and urgent need to regain the credibility of the country, as far as the implementation of the program,” said Venizelos, who took over the Finance Ministry last week from Giorgos Papaconstantinou in a Cabinet reshuffle.

“The medium- term fiscal strategy and the implementation law must be voted by Parliament by the end of June.”

Venizelos said EU partners agreed the private sector should also be involved in any future financing plan for Greece with a “completely voluntary participation” that would take the form of retention of existing bonds which are about to expire and in order to reduce Greece’s borrowing needs in the following years.

A new technical mission will travel to Greece tomorrow to verify Greek implementation of the terms of a bailout agreement with the European Union and International Monetary Fund, EU Economic and Monetary Affairs Commissioner Olli Rehn said.

“The aim is to verify that the Greek government is implementing the agreed revised memorandum and that we have the same understanding by the EU-IMF troika and the Greek government,” Rehn told reporters in Luxembourg today after euro area finance chiefs met to discuss Greece.

A communiqué circulated last week lashed out at security forces and named 12 military commanders wanted dead or alive.

Some large corporations are pushing for a tax holiday to bring offshore profits back home, but the last time such a break was given, the economic benefits were limited.

Debate Swirls Around Research Showing Lung Problems for Returned Troops

An emerging body of research indicates that a significant number of service members are reporting respiratory problems that started during deployment and continued at home.

U.S. Ambassador Responds to Karzai's Criticisms

Karl W. Eikenberry's comments were a rare break from the normally tolerant stance Western diplomats have toward the Afghan president's anti-coalition rhetoric.

War Evolves With Drones, Some Tiny as Bugs

From blimps to bugs, an explosion in aerial drones is transforming the way America fights and thinks about its wars.

Few Taliban Leaders Take Afghan Offer to Switch Sides

There are as many as 40,000 Taliban fighters in Afghanistan, but only 1,700 of them have taken up the government's offer to switch sides.

The $113 Billion Hole: 10 Things America Gave Up This Year To Pay For The War In Afghanistan

Money spent on the war represents resources that are being drained away from important domestic priorities in a nation with sky-high unemployment and crumbling infrastructure.

"To End All Wars:" Lessons From the Past -- Why It's So Hard to Stop Wars and Prevent New Ones

Adam Hochschild's new book "To End All Wars" shines a light on the mass carnage unleashed by Europe's suicidal rush to war in 1914.

How Robert Gates' Lies and Cover-Ups Earned Him a Long, Prestigious Career -- at the Expense of the American People

Two decades ago, U.S. history could have taken a very different course if Gates and his cohorts had faced real accountability and their secrets had been exposed.

Qaeda Woes Fuel Talk of Speeding Afghan Pullback

By MARK LANDLER and HELENE COOPER

High-ranking officials say Al Qaeda's original network in the region is crippled, providing a rationale for an accelerated troop reduction.