Ben Bernanke

♦ In Turkey, Gulenists have burnt their bridges with Recep Tayyip Erdogan and his party, while Mr Erdogan makes no bones about his desire to purge the bureacracy of his former allies. It is, according to one of Turkey’s old secular elite, “like Alien vs Predator.
♦ Edward Luce points out that the Indian politicians expressing outrage over the strip search of diplomat Devyani Khobragade are suffering from a hypocrisy problem: “So far, no Indian leader has expressed a scintilla of concern about the rights of the Indian domestic servant whom Ms Khobragade had allegedly mistreated.”
♦ Ben Bernanke announced the taper, but minimised market discomfort.
♦ David Pilling considers which events shook Asia in 2013.
♦ James Carroll, a former priest, looks back at the first year of a radical pope.
♦ B.R. Myers, an expert on north Korea, explains exactly what happened to Kim Jong Un’s uncle and why Kim doesn’t look smart taking his wife around with him. 

By David Gallerano
♦ Ben Bernanke sent “contradictory signals about how the Fed was going to assess the economy”. His is a “confused guidance”, which makes it hard to tell whether the actual policy on tapering is just a pause for the Fed or whether there needs to be clear evidence of acceleration. Michael Mackenzie says the FOMC’s delay of the taper yesterday affects Fed’s credibility.
♦ Syria’s war rages on but Damascus nightclubs remain obstinately open.
♦ The Syrian conflict is spilling over to Iraq with the city of Muqdadiya, in the Diyala Province, becoming the theatre for a “Balkans-style” ethnic conflict with Sunnis supporting the rebels and Shiites backing the Assad government.
♦ The Arabist reports the story of Mohamed Gabr, police chief of a small village in Egypt, who was brutally killed by a group of Islamists.
♦ The United Nations Economic Commission on Africa (UNECA) cancelled Morten Jerven’s presentation of his research “due to lobbying from South African Statistician General Pali Lehohla”. Jerven’s research criticizes several African Statistic institutes and has already raised protests in Zambia and South Africa. 

By David Gallerano
♦ Claire Jones outlines how any decision the Federal Reserve will take on tapering has implications far beyond the United States.
♦ Robin Harding takes stock of the situation regarding the nomination of the new Fed chairman. Though it seems the propitious moment for a Yellen selection, there is the chance that the White House might opt for a more thorough selection process. After all, Ben Bernanke’s appointment in 2005 did not come until late October
♦ Meanwhile, John McDermott reproaches Obama for his weak support of Lawrence Summers’ candidacy.
♦ The German elections will pave the way for a third bailout for Greece. How will the Greek economy react? Peter Spiegel outlines the most likely scenario.
♦ The Pacific Standard examines six reasons why Zambia is – and will probably remain for long time – a poor country

James Politi

Sandra Pianalto, who has served as president of the Federal Reserve Bank of Cleveland, announced she will be retiring early next year after being in the job for a decade.

Ms Pianalto’s departure may not mean too much for monetary policy. She is known for being a centrist, predictable official on the Federal Open Market Committee, backing the chairman’s view without offering positions that are either too dovish or too hawkish.

Ben Bernanke, Fed chairman, issued an effusive statement on Thursday: “Sandy has been a remarkable colleague who has made invaluable contributions to the Federal Reserve Bank of Cleveland, the Federal Reserve System, and the country. We will miss her thoughtful insights and leadership across a broad range of issues, including monetary policy, payments policy, and community development.” 

♦ Ben Bernanke and the markets appear to be friends again, which might make tapering easier.
♦ George Bizos, Nelson Mandela’s lawyer, recalls the good times they shared.
♦ Chris Giles argues that, “After almost a century of gradual social progress and narrowing of wealth and opportunity gaps, Britain is slowly recreating a rentier society, where a family’s property ownership matters more than anything else.
♦ Wolfgang Schäuble wants to leave a legacy in Europe, but his boss, Angela Merkel, is proving to be one of the obstacles between him and EU reform.
♦ Nasser al-Awlaki, a former minister of agriculture and fisheries in Yemen, is petitioning the US government to explain why they killed his grandson, a US citizen.
♦ Amy Davidson ponders what Trayvon Martin could have done to avoid getting into an altercation with George Zimmerman: “There is an echo, in what people say Martin should and shouldn’t have done, of what people say to women when bad things happen to them in dark places.”
♦ Mohamed Morsi hasn’t been seen since he was taken into custody – when do international circles start considering him a political prisoner?
♦ Bassem Youssef takes on the recent coup in Egypt: “Humanity has now become an isolated island among wild waves of discrimination and extremism.” 

Ben Bernanke makes what is likely to be his final appearance before Congress this week. The Federal Reserve chief repeats the central bank’s intention to slow its $85bn a month in asset purchases later this year if the economy stays strong, but says that would not mean a weakening of Fed support for the US economy.

By James Politi in Washington. All times are BST

 

When we look back on the FOMC meeting on June 19 2013, it will probably be seen as the moment when the Fed signalled that it was beginning the long and gradual exit from its programme of unconventional monetary easing. The reason for this was clear in the committee’s statement, which said that the downside risks to economic activity had diminished since last autumn, presumably because the US economy had navigated the fiscal tightening better than expected and the risks surrounding the euro had abated.

This was the smoking gun in the statement. With downside risks declining, the need for an emergency programme of monetary easing was no longer so compelling. The Fed has been the unequivocal friend of the markets for much of the time since 2009, and certainly ever since last September. That comfortable assumption no longer applies.

 

♦ While most in Turkey acknowledge that every Turkish ruling class has sought to put its stamp on Istanbul, there is a growing sense that none has done so as insistently as the current government. Philip Stephens thinks Mr Erdogan’s heavy-handed response has only proved the protesters right. However, the protesters themselves have been let down on all sides, says Dani Rodrik: “Sadly, there is no organised political movement that can give voice and representation to the protesters that have made their point so loudly and clearly in recent days.”
♦ As Bradley Manning’s trial continues, he has a strong network of supporters behind him – m
ore than 20,000 people have raised $1.25m for his defence.
♦ When Ben Bernanke spoke to the graduating class at Princeton this year, he seemed to confirm his intention to retire. John Cassidy considers why he would do so despite being in good health and good standing.
♦ US infantry are training Afghan troops to take over Afghanistan’s Wardak province, while trying to protect Highway 1, the lifeline that runs between Wardak and Kabul and, ultimately, their exit route out of the country.
♦ Jonah Blank explains how the US military will have to start negotiating like the Pashtuns:
A Pashtun proverb states: ‘A man with the power to fight doesn’t need to bargain.’ For more than a decade, power and money have shielded America from the necessity of negotiation. That luxury is over.” 

In our Off the Chart series, we’ll be taking a look at a chart or graphic that accompanies one of our articles in the FT’s newspaper editions.