Daily Update

Peace may finally be on its way to Darfur after Sudan and the region's most active rebel group reach tentative agreement

Venezuelan President Chavez wins and limits to term removed, allowing him to continue his rule indefinitely

Four of Russia's regional governors are replaced by President Medvedev due to concerns about social unrest

Bosnia, along with other Balkan states, faces many obstacles that prevent it from a secure future as a potential EU member state

China worries about possibly damaging protectionist actions

British and French submarines collide in Atlantic

Japan's economy enters an even deeper slump

Islamic law to be component of peace deal between Pakistan and Taliban-linked group

Daily Update

Venezuela votes on whether or not Chavez will continue to serve as president

Sri Lanka grapples with what to do with displaced Tamil refugees

Israel refuses to agree to Gaza ceasefire until captured soldier is released

Rebuilding Haiti: More difficult than the UN thought

US heading towards a more favorable relationship with Russia

Treason charges against Zimbabwean opposition politician have been dropped, and replaced with new charge of conspiring to acquire arms with a view to disrupting essential service. The road ahead will surely be anything but smooth.

Bolivians question whether or not country is better off under indigenous President Morales

An economic stimulus plan is approved in Australia, despite having been blocked during an earlier vote.

Daily Update

U.S. Missile Shield plans in Poland could "slow down" if Russia is willing to help exert pressure on Iran over its nuclear program

A Russian warship detains 10 more pirates off the coast of Somalia, but pirates previously detained by the U.S. Navy may never see trial

Article from Reuters compares Russian and U.S.-Coalition experiences in Afghanistan - neither seem capable of bringing stability to the nation with force alone

U.S. Secretary of State Clinton seeks to build a broader diplomatic relationship with China on her first trip since entering office - Clinton will visit Japan, South Korea, Indonesia, and China, and plans to discuss issues of human rights and climate change with the Chinese government

Dubai's economy enters a downward spiral as foreign workers, 90 percent of the population, are leaving

U.S. drone aircraft kills 25 in Pakistan, including Al Qaeda and Taliban fighters who take refuge in Pakistan in between conducting attacks in Afghanistan

EU vote observer "forcefully expelled" from Venezuela after calling Chavez a dictator, just days before a referendum is to be held on relaxing presidential term limits

Zimbabwean opposition official is arrested by Mugabe's security forces on conspiracy charges, despite a power-sharing agreement between the opposition party and Mugabe

Daily Update

Taliban-affiliated suicide bombers, armed gunmen attack government ministries in Kabul, killing 20 and injuring 57

The U.S. Congress is poised to pass a $789 billion stimulus plan for the American economy - the proposed plan would create 3.5 million jobs - Dow rises in response

Mirek Topolanek, Prime Minister of the Czech Republic and current reigning President of the European Union, is scheduled to visit Central Asian states on the topic of opening new natural gas pipelines in the region, bypassing Russian pipelines, to the effect of maintaining energy security even if gas pipelines are shut down again by Russia due to political disputes.

Australian wildfires may have been started by arsonists, as a search for suspects continues in hard-hit Victoria county. Queen Elizabeth II has made a personal donation to the Victorian Bushfire Fund, which has raised more than £14 million

The new multi-national surface patrol force maintaining security in the Gulf of Aden has made its first arrest of 7 suspected Somali pirates

Indonesia issues tsunami warning after 7.0 quake rattles waters north of Sulawesi

France is prepared to sell fighter jets, frigates, and missile systems to Kuwait, in addition to fielding a military base there, in order to "maintain stability in the region."

Sarkozy also defends France's $7.9 billion state loan to French automakers Renault and Peugeot as "not protectionism" and in line with EU regulations, although the move underscores pressure throughout the EU on retaining local jobs for local workers during the economic crisis

Yesterday and Today

The death toll for the fires in Australia breach have breached the 200 mark and may continue to rise as authorities discover more destruction in the wake of the fires. As always with the political response to natural disasters these days it seems highly vogue to use the opportunity to remind audiences of the linkage to climate change.

Israel has held their snap elections for a new government and according to preliminary news and polling the centrist Kadima party led by Foreign Minister Livni is doing better than expected. Which is to say not losing. As predicted ultra-dark horse Lieberman will come in third to the chagrin of Labor. Likud despite potentially coming in second argues that the rightist parties collectively form a majority which will then morph into a government.

A 'watch this space' story developing is that China is submitting its human rights record to the UN for examination.

Iran is keen on talks with the US. The new administration will need to deal with some pressing sticking points.

As a sign of the changing times and fortunes in Iraq even France is getting involved. Sarkozy who for so long has danced around the Iraq issue is in Iraq pledging economic assistance.

Daily Update

Financial Crisis: US reveals 1.5 trillion bank bail-out plan

Civilians from Uganda to the Central African Republic continue to suffer from acts of terror committed by the LRA, which have been going on for 20 years. Forces from Uganda, South Sudan and DR Congo remain on the offensive, but will the LRA ever agree to peace?

Election watch: Leveled polls in Israel, where 20% are still undecided

Iran ready for "respectful" talks with the US

Millions of migrant workers face increasing hardship as a result of Russia's economic decline

Detained and tortured, opposition activists are yet to be released by ZImbabwe's President Mugabe despite agreement

Red Cross evacuates 240 Sri Lankans trying to escape fighting

The RMB and the USA

Brad Setser responds to Greg Mankiw's article on the Chinese currency situation:

China cannot subsidize its exports without also subsidizing US consumption of Chinese goods – and US borrowing. Of course, some in the US are on the losing end of the “low-priced Chinese goods for high-priced US government bond” trade – and those losses aren’t equally distributed. Some parts of the country tend to produce more goods than compete with Chinese goods than others. But the US as a whole benefits from China’s willingness to subsidize US borrowing … and the purchase of China’s goods.

Call me skeptical.

But Setser's conclusion: we can give credit to China for allowing the RMB to appreciate, but still talk to them about continuing to move in the right direction. Hot headed rhetoric is the last thing the US economy needs at this junction. A "Schumer - Graham" -like China tarriff could be the start of major trade war.