Iceland has no army, no navy and no air force - but it does have riot police.

On Tuesday night the black-uniformed troopers came out to quell the latest riots in Reykjavik, which erupted in front of parliament. The building was splattered with paint and yoghurt, the crowd yelled and banged pans, shot fireworks and flares at the windows and lit a fire in front of the main door.

Yesterday the protesters gathered again, hurling eggs at the car of Geir Haarde, the Prime Minister, and banging cans on its roof.

The transformation of the placid island into a community of seething anger - there have been half a dozen riots in recent weeks - is more than a regional oddity.

In Riga last week 10,000 protesters laid siege to the Latvian parliament; yesterday hundreds of Bulgarians rallied to demand that the Socialist-led Government should take action or step down, in a second week of demonstrations, and last month the police shooting of a 15-year-old Greek boy led to days of running battles in the streets of Athens and Salonika.

The protests went beyond the usual angry reflexes of societies braced for recession. The Greek riots heralded sympathetic actions across the world, from Moscow to Madrid, and in Berlin the Greek Consulate was briefly stormed. The Riga unrest spread rapidly to Lithuania. It is, some say, just the beginning: 2009 could become another 1968 - a new age of rebellion.

The LSE economist Robert Wade addressed about 1,000 Icelanders recently at a protest meeting in a Reykjavik cinema, warning that large-scale civil unrest was on the way. The tipping point, he said, would be this spring.

“It will be caused by the rise of general awareness throughout Europe, America and Asia that hundreds and millions of people in rich and poor countries are experiencing rapidly falling consumption standards; that the crisis is getting worse, not better, and that it has escaped the control of public authorities, national and international,” he said.

The global liquidity emergency became a full-blown crash so quickly that there was no time to hold governments to account. Now leaders all over Europe have declared themselves to be the saviours of the economy and are nationalising assets, extending loans and guarantees to failing banks and manufacturers. But the price is high: unemployment is starting to soar and cuts in public spending are hurting hospitals, schools and universities. Personal bankruptcies are at record levels.

Every segment of society has been hit, but it is the young who feel the pain most - and just as in 1968, it is they who are leading the rebellion.

The Greek disturbances, the worst since 1974, were triggered by the killing of the teenager, but the anger was stoked by a sense that the young were going to have to pick up the bill for the miscalculations of the political class. Unemployment among Greeks aged 15 to 24 has reached 21.2 per cent; for 25 to 34-year-olds it is 10.5 per cent. The good years have come to an end suddenly.

The boom in Iceland led to the few narrow streets of the capital becoming jammed with expensive 4×4s. Latvia had double-digit growth for years; now GDP is set to contract 5 per cent in the coming year and Latvian youths are beginning to rail against mismanagement and corruption.

In the EU, migration was always a way out of a tight domestic labour market. No more: the sheer magnitude of the recession means there is no easy escape. There are reports of anti-immigrant trouble brewing in Spain. Usually at this time of year migrant workers, most of them from Morocco, pile into the country to pick strawberries. This year the Spaniards are making it clear that they are unhappy about migrants taking jobs.

Each flare-up touches on a separate aspect of the crisis. In Greece it was partly about the failure of the education system (as in 1968). In Vilnius it was over high taxes. In Iceland it is about massive debt. In Russia unrest in Yekaterinburg and Vladivostok was about dearer car import duties.

But there are common threads. Across Europe, protesters demand a change of government. Politicians in wealthier countries can try to prop up banks and industries, but it does not work in heavily indebted nations with bloated and exposed financial sectors.

And there is a shared shock that the good times have gone. “The explosion conceals a compressed desperation,” the Greek psychology professor Fotini Tsalikoglou said of last month’s outburst in Athens. “Many young people live with the unbearable knowledge that there is no future.”

New age of rebellion and riot stalks Europe

Tony Blair is poised to become the first President of Europe after it was confirmed that French leader Nicolas Sarkozy is determined to help him win the post.

A senior aide to President Sarkozy told a private gathering of senior British and French politicians that he is to tell fellow EU leaders that Mr Blair is the only man who can help Europe stand up to the rest of the world.

The remark by Alain Minc, a key member of Mr Sarkozy’s inner circle, is the second French blow to Gordon Brown’s standing in two days, coming after Mr Sarkozy said Mr Brown’s decision to combat the recession by cutting VAT was a ‘mistake’.

Mr Minc, a political wheeler-dealer, entrepreneur and TV show host, was attending a meeting last month of the Franco British Colloque, a high-powered discussion group of British and French politicians, civil servants and opinion-formers.
Members are under orders not to reveal the confidential discussions, but The Mail on Sunday has established that Mr Minc used the meeting to win support for Mr Sarkozy’s campaign to ensure Mr Blair becomes the President of Europe.

The role is due to be created next year – but only if the EU’s controversial Lisbon Treaty is ratified in the autumn by Ireland and the Czech Republic, the two EU countries which have so far refused to do so.

Mr Minc told the gathering, which was also attended by French Prime Minister Francois Fillon: ‘When the Lisbon Treaty is ratified, Europe will move into a new phase. Europe will need a strong leader and Nicolas Sarkozy will nominate Tony Blair for the position.’

Mr Minc explained why Mr Sarkozy was determined to overcome opposition to Mr Blair from a handful of EU leaders, notably German chancellor Angela Merkel.

He said: ‘We have to unite and say to Mrs Merkel that we cannot afford not to have Tony Blair, who will be a strong figurehead, is entirely respected around the world and will be a commanding leader at the helm of Europe.’

Mr Minc has been described by one commentator as ‘France’s Peter Mandelson’. Indeed, his AM Conseil consultancy has employed Lord Mandelson as an ‘adviser’ in the past and the two are members of the Policy Network think-tank.

The conference took place in Versailles, days after Mr Blair visited Paris to chair a conference for Mr Sarkozy on the economic crisis, in what was seen as the latest part of a charm offensive to boost his chances of winning the EU presidency.

Mr Blair paid glowing tribute to Mr Sarkozy’s recent performance in the rotating EU presidency, saying: ‘Under his leadership, Europe looked as if it were acting in concert.’

Mr Blair was referred to as Prime Minister Blair throughout – Mr Brown was not even invited.

The post of President of the EU’s Council of Ministers will replace the current system under which the EU nations on a six-monthly basis. Supporters say it is the only way to give the presidency rotates among EU a strong voice.

Critics claim it is another step on the road to a European superstate.

President Blair? - Former PM set to become EU chief

“There is no salvation for civilization, or even the human race, other than the creation of a world government.” - Albert Einstein Megiddo I: The March to Armageddon explores Bible prophecy concerning the last day empire prophesied in the Old and New Testaments. This documentary features never-before-seen interviews with some of the leading researchers on the subject. Megiddo I reveals how God uses prophecy to prove His existence and to separate Himself from all others that claim His authority. This informative documentary also chronicles startling quotes from powerful men of history who have spoken of the need for world government to further the cause of peace. But what does the Bible say about “world peace” and its consequence for mankind? Seen through the lens of prophecy, What is the significance of World War I and II? Were these birth pangs to prepare the nations for World War III and Armageddon? “…the end of all things is at hand…” - 1 Peter 4:7

The Lie of the Serpent is the second part of the controversial Meggiddo series, which next focuses on the highly influential New Age movement. But is the New Age really new? Or does it represent the ancient doctrine taught by the serpent to Eve in the Garden of Eden? Excellent documentary!

CQ Transcripts Wire
Tuesday, March 3, 2009; 1:48 PM

PRESIDENT BARACK OBAMA: Hello, everybody. Good to see you. Where — where are the Brits? (UNKNOWN): They’re over here.

OBAMA: They’re over there, huh?

BRITISH PRIME MINISTER GORDON BROWN: In fact, Barack, they’re everywhere.

OBAMA: Are they? They’re spread out?

All right. My understanding is, we’re going to do four questions. And we’ll just alternate. I’ll start off with Jennifer Loven of A.P.

QUESTION: (OFF-MIKE)

OBAMA: You know, I think that the report that was in the New York Times didn’t accurately characterize the letter. What we had was a very lengthy letter talking about a whole range of issues, from nuclear proliferation to how are we going to deal with a set of common security concerns along the Afghan border and — and terrorism.

And what I said in the letter is the same thing that I’ve said publicly, which is that the missile defense that we have talked about deploying is directed towards not Russia, but Iran. That has always been the concern, that you had potentially a missile from Iran that threatened either the United States or Europe.

And what I said in the letter was that, obviously, to the extent that we are lessening Iran’s commitment to nuclear weapons, then that reduces the pressure for — or the need for a missile defense system. In no way does that in any — does that diminish my commitment to making sure that Poland, the Czech Republic, and other NATO members are fully enjoying the partnership, the alliance, and U.S. support with respect to their security.

So the way it got characterized, I think, was as — as some sort of quid pro quo. It was simply a statement of fact that I’ve made previously, which is, is that the missile defense program, to the extent that it is deployed, is designed to deal with not a Russian threat, but an Iranian threat.

QUESTION: (OFF-MIKE)

OBAMA: Oh, we — well, we’ve had a good exchange between ourselves and the Russians. I’ve said that we need to reset or reboot the relationship there.

Russia needs to understand our unflagging commitment to the independence and security of countries like a Poland or a Czech Republic. On the other hand, we have areas of common concern, and I cited two examples, the issue of nuclear nonproliferation and the issue of terrorism. And at this point, I think we probably have some potential common concerns on the world economic front, as well.

So my hope is, is that we can have a constructive relationship where, based on common respect and mutual interest, we can move forward. BROWN: Nick?

QUESTION: Nick Robertson, BBC News. Mr. President, it’s often been said that you, unlike many of your predecessors, have not looked towards (ph) Europe, let alone Britain. Can you just respond to that comment?

And, also, the prime minister is talking to you about a global New Deal today. Will that actually help hard-pressed American consumers?

And if — if may briefly put a question to the prime minister…

OBAMA: Well, first of all, the special relationship between the United States and Great Britain is one that is not just important to me; it’s important to the American people.

And it is sustained by a common language, a common culture. Our legal system is directly inherited from the English system. Our system of government reflects many of these same values. So — and, by the way, that’s also where my mother’s side of my family came from.

So I think this notion that somehow there is any lessening of that special relationship is misguided. You know, Great Britain is one of our closest, strongest allies. And there is a link, a bond there that will not break. And I think that’s true not only on the economic front, but also on issues of common security.

OBAMA: And, you know, in our conversations here, we talked not only about the need to coordinate around economic policy, but also I expressed to the prime minister America’s extraordinary gratitude for their support in our efforts in Afghanistan and the young men and women of Great Britain, who’ve made enormous sacrifices there.

The — although there — you know, there was a debate obviously around the issue of Iraq, nevertheless, whether you were for or against the war here in the United States, the recognition of Great Britain’s friendship and standing tall with us during that period is something that will never be forgotten. And so rest assured that the relationship is not only special and strong, but will only get stronger as time goes on.

QUESTION: (OFF-MIKE)

BROWN: Let me — let me just thank President Obama for his — for his welcome, for his hospitality, for his leadership of this country, and the inspiration he’s giving the world at this very difficult time.

And I’ve come here to renew our special relationship for new times. It’s a partnership of purpose. It’s a partnership of purpose that is born out of shared values. It’s a partnership of purpose that is founded on a determination to rise to every challenge.

And I think it’s a partnership of purpose that is driven forward now by the need for us all to work together in unity to deal with the world economic problems.

And I’m grateful for the conversations I’m having with President Obama about this and about other things and grateful, too, that Michelle and Sarah will be meeting later this afternoon. And I know they’ll have an enjoyable time, as well.

OBAMA: Absolutely.

QUESTION: (OFF-MIKE) your chancellor has said overnight that it is our collective responsibility (OFF-MIKE) is that a form of apology from the government? Are you apologizing for the problems (OFF-MIKE)

BROWN: Well, there’s got to be big regulatory change. We’ve — we’ve just been talking, Barack and I, about the need for proper supervision of shadow banking systems, of areas where there was bank practices that were unacceptable, where remuneration policies got out of hand and weren’t based on long-term success, but on short-term deals.

And these are the changes that we’ve already announced that we are going to make. So we’ve learned from what has happened over these last 10 years. Things have happened in every part of the world that we’re having to learn about, as well.

And you’ve got an international financial system that we’ve now got to show can be brought to work in the public interest. So every country is learning, and every country is taking action. And what we’re talking about today is how, by us taking action, Britain and America, we can help other countries join us in making for a more stable and effective financial system.

OBAMA: Kara (ph)?

QUESTION: Thank you, Mr. President. The stock market has fallen to lows not seen since 1997 (OFF-MIKE)

OBAMA: Well, let me say this. I’m absolutely confident that they will work, and I’m absolutely confident that credit’s going to be flowing again, that businesses are going to start seeing opportunities for investment, they’re going to start hiring again. People are going to be put back to work.

What I’m looking at is not the day-to-day gyrations of the stock market, but the long-term ability for the United States and the entire world economy to regain its footing.

And, you know, the stock market is sort of like a tracking poll in politics. You know, it bobs up and down day to day. And if you spend all your time worrying about that, then you’re probably going to get the long-term strategy wrong.

Now, having said that, the banking system has been dealt a heavy blow. It has to do with many of the things that Prime Minister Brown alluded to: lax regulation, massive over-leverage, huge systemic risks taken by unregulated institutions, as well as regulated institutions.

And so there are a lot of losses that are working their way through the system. And it’s not surprising that the market is hurting as a consequence. You know, in fact — you know, I think what we’re seeing is that, as people absorb the depths of the problem that existed in the banking system, as well as the international ramifications of it, that, you know, there’s going to be a natural reaction.

OBAMA: On the other hand, what you’re now seeing is — is profit and earning ratios are starting to get to the point where buying stocks is a potentially good deal if you’ve got a long-term perspective on it. I think that consumer confidence, as they see the American Recovery and Reinvestment Act taking root, businesses are starting to see opportunities for investment and potential hiring.

We are going to start creating jobs again. One of the things that Prime Minister Brown and I talked about is, how can we coordinate so that all the G-20 countries, all the major countries around the world, in a coordinated fashion, are stimulating their economies? How can we make sure that there are a common set of principles, in terms how we’re approaching banking, so that problems that exist in emerging markets like Hungary or the Ukraine don’t have these enormous ripple effects that wash back onto our shores? And we’re providing them with some help in a coordinated international fashion, as well.

All of those steps, I think, are going to slowly build confidence, but it’s not going to happen overnight. And — and my main message to the American people is to just recognize that we dug a very deep hole for ourselves. There were a lot of bad decisions that were made. We are cleaning up that mess.

It’s going to be sort of full of fits and starts, in terms of getting the mess cleaned up, but it’s going to get cleaned up. And we are going to recovery, and we are going to emerge more prosperous, more unified, and I think more protected from systemic risk having learned these lessons than we were before.

BROWN: I think President Obama’s absolutely right. And I think the history books will record that what he has done in his first nearly 50 days of office has been momentous in setting the means by which we can see the economic recovery happening.

We’ve had a global banking failure, and it’s happened in every part of the world. It’s almost like a power cup (ph) that went right across the financial system, and we’ve got to rebuild that financial system. We’ve got to isolate the bad assets. We’ve got to underwrite the financial system so that loans can start again to businesses and — and families. And we’ve got to get enough lending into the economy so that people — enough credit so that people are able to go about their normal business again.

And that’s why we’re looking ahead to the G-20 in London in April, because a bad bank anywhere can affect good banks everywhere. So we’ve got to root out the problems that exist in other parts of the world, as well, set principles for the banking system for the future, and make sure that the banks subscribe to lending agreements where they actually increase the lending that is available to — to citizens in every country.

OBAMA: One last one.

QUESTION: (OFF-MIKE) should all governments at this point acknowledge mistakes of policy and regulation (OFF-MIKE) would that be helpful or unhelpful in general? And can I just ask you, an awful lot of ink is used describing the individual relationships between prime ministers and presidents (OFF-MIKE) ask you describe how (OFF-MIKE) working with each other?

OBAMA: Well, I will say that this is my third meeting with — with Prime Minister Brown, and I’d like to think that our relationship is terrific. And I’m sure he won’t dispute me, in front of me, anyway.

The — look, I think that the prime minister has taken the helm of the British economy at a very difficult time. As he noted, I’ve just come in recently. But I think that there are a set of shared values and shared assumptions between us, that we believe in the free market, we believe in a government that is not overbearing and allows entrepreneurs and businesses to thrive, but we also share a common belief that there have to be sufficient regulatory structures in place so that the market doesn’t spin out of control.

OBAMA: I think, on the international front, we have a shared worldview that it is important for us to be true to our values and ideals, of rule of law, of a belief in human rights, a belief in — in our democratic practices, but that we also have to be respectful around the world and to listen and not simply dictate, that, in this new world that we live in, the way to get things done is to build partnerships and alliances as opposed to acting unilaterally.

So I think both on the economy and both — and on foreign policy, we’ve got a shared worldview that allows us to work together very effectively.

And he also has a wonderful family, as I do, so we can always talk about our — our spectacular wives and our wonderful children.

With respect to the first part of your question, look, I think there is no doubt that, setting aside who’s to blame, that in the past there have been some mistakes and lessons learned in terms of how we deal with the financial sector.

Globalization can be an enormous force for good. And one of the things that we’ve talked about repeatedly is that countries in this crisis cannot start turning inward and try to erect protectionist barriers. We should encourage trade.

The fact that we have a global capital system allows money to flow to areas that previously couldn’t get capital. That allows them to develop and to grow. That can grow the economy worldwide, increase trade, and that potentially benefits everybody.

But what is also true is, is that when you’ve got trillions of dollars that can now move at the speed of light, when you’ve got a whole series of unregulated pools of dollars outside of the banking system, but we still have a 1930s’ regulatory system in place in most countries designed from the last great crisis, that we’ve got to update our institutions, our regulatory frameworks, so that the power of globalization is channeled for the benefit of ordinary men and women so that they have jobs, they can purchase a home, they can send their children to college, and prosper and thrive, and — and that the benefits of globalization aren’t just for a small handful of people who are not accountable.

And — and that’s the kind of transformation that we’re, obviously, trying to bring about here in the United States, and I suspect that that’s a view that Gordon shares. BROWN: I’ve enjoyed every conversation that we’ve had, both by the telephone and when we’ve met. I don’t think I could ever compete with you at basketball. Perhaps tennis.

OBAMA: Tennis, I hear you’ve got a game.

BROWN: Yes, we could maybe have a — have a shot.

OBAMA: We haven’t tried it yet.

BROWN: I don’t know. I think you’d be better, but there we are. As far as the common interests that we’re pursuing, look, there is the possibility in the next few months of a global New Deal that will involve all the countries of the world in sorting out and cleaning up the banking system.

And there is the possibility of all the different countries of the world coming together to bring (ph) the expansion in the economy that is necessary to both restore confidence and to give people jobs and growth and prosperity for — for the future.

And there is the possibility of the international institutions for the first time being reformed in such a way that they can do the job that people want them to do and deal with some of the problems that exist in the poorest countries of — of the world.

And there’s a chance, also, that the recovery that we’re talking about can be a green recovery, a low-carbon recovery, where each country in different parts of the world can work on this together.

So the opportunities are there. I’ve said to the president that almost every leader I meet wants the best possible relationship and the most highest degree of cooperation for the future. And so the challenges are momentous and global. The response of leaders around the world is to want to work together.

And I believe that we can make a contribution not just to each of our own economies, but make a contribution to the world economy, helping each economy, if we can actually work together. And that’s why our talk about the G-20 is very important. We hope to make progress on April the 2nd.

And as far as regulation, I — I want the regulatory system to be reformed to meet the needs of our times. When we made changes in 1997, we made changes for the times of 1997. The financial markets have moved global since then, and we need a global means of bringing people together so there’s proper supervision of the system.

You don’t want shadow banking systems. You don’t want regulatory and tax havens. So we’ve got to act as a world together to deal with that. And that’s one of the things we’ll be talking about in April in London.

QUESTION: (OFF-MIKE) Pakistan terror attack (OFF-MIKE) in particular, Mr. President, have made it clear that (OFF-MIKE) see Afghanistan and Pakistan together. How do you think that the world community can support Pakistan?

OBAMA: Well, the details are still coming in, and so I don’t want to be too specific.

(CROSSTALK)

OBAMA: Well, obviously, we’re deeply concerned. But let me just make a general statement.

Both Great Britain and the United States share a deep interest in ensuring that neither Afghanistan nor Pakistan are safe havens for terrorist activity. And we have coordinated effectively in the past, but the truth is, is that the situation in Afghanistan has deteriorated. The safe havens for Al Qaida remain in the frontier regions of Pakistan.

And we are conducting currently a comprehensive review of our policies with respect to Afghanistan, with respect to Pakistan, our coordination with our NATO allies and other members of the international security forces that are there.

I will be making a series of announcements prior to the NATO summit that immediately follows the G-20 summit in terms of the direction that the United States would like to go. What I’m confident in is that our strongest partner in that effort, once again, will be the United Kingdom and — and the prime minister sitting next to me.

OK? Thank you, guys.

QUESTION: Thank you.

END

Obama Meets With British Prime Minister Brown

LONDON (Reuters) - The international financial crisis has given world leaders a unique opportunity to create a truly global society, Britain’s Prime Minister Gordon Brown will say in a keynote foreign policy speech on Monday.

In his annual speech at the Lord Mayor’s Banquet, Brown — who has spearheaded calls for the reform of international financial institutions — will say Britain, the United States and Europe are key to forging a new world order.

“The alliance between Britain and the U.S. — and more broadly between Europe and the U.S. — can and must provide leadership, not in order to make the rules ourselves, but to lead the global effort to build a stronger and more just international order,” an excerpt from the speech says.

Brown and other leaders meet in Washington next weekend to discuss longer term solutions for dealing with economic issues following a series of coordinated moves on interest rates and to recapitalize banks in the wake of the financial crisis.

“Uniquely in this global age, it is now in our power to come together so that 2008 is remembered not just for the failure of a financial crash that engulfed the world but for the resilience and optimism with which we faced the storm, endured it and prevailed,” Brown will say in his speech on Monday evening.

“…And if we learn from our experience of turning unity of purpose into unity of action, we can together seize this moment of change in our world to create a truly global society.”

According to a summary of the speech released by his office, Brown will set out five great challenges the world faces.

These are: terrorism and extremism and the need to reassert faith in democracy; the global economy; climate change; conflict and mechanisms for rebuilding states after conflict; and meeting goals on tackling poverty and disease.

Brown will also identify five stages for tackling the economy, starting with recapitalizing banks so they can resume lending to families and businesses, and better international co-ordination of fiscal and monetary policy.

He also wants immediate action to stop the spread of the financial crisis to middle-income countries, with a new facility for the International Monetary Fund, and agreement on a global trade deal, as well as reform of the global financial system.

“My message is that we must be: internationalist not protectionist; interventionist not neutral; progressive not reactive; and forward looking not frozen by events. We can seize the moment and in doing so build a truly global society.”

(Reporting by Jodie Ginsberg; Editing by Janet Lawrence)

UK’s Brown: Now is the time to build global society