I arrived in VIP-full Davos with one prediction in mind: 2014 will be the year the world returns to normality or at least the semblance of normality with the tapered exit from quantitative easing.
After three days at high altitude, the prediction is intact and I have five other takeaways. Read more
♦ The Volcker rule is contentious, but it is not the knockout blow some people had expected.
♦ The economically sensible wing of the US Republican party doesn’t exist, says Paul Krugman.
♦ Iran and Israel have paid tribute to Mandela, while choosing to remain a safe distance from the memorial.
♦ Marc Lynch explains why nobody in the Middle East deserves to be on the Foreign Policy Leading Global Thinker list this year.
♦ After cracking down on the Muslim Brotherhood, Egypt’s interior ministry has turned its attention to the activist community of journalists, non-Islamists and students.
♦ The Australian speaks to a mother in Iraq who is waiting for her son’s execution to be announced after a “hanging day”. Read more
♦ Edward Luce explains why it is stupid to insult the IQ of Tea Party members.
♦ The budget fight that led to the first government shutdown in 17 years set off a public escalation of the battle for control of the Republican Party – a confrontation between Tea Party conservatives and establishment Republicans.
♦ The National Geographic reports on how the presence of Boko Haram has affected public psyche in Nigeria: “Boko Haram has become a kind of national synonym for fear, a repository for Nigerians’ worst anxieties about their society and where it’s headed.”
♦ Susan Faludi, the author of Backlash: The Undeclared War Against American Women, wonders which women the Lean In community is trying to reach.
Christina Lamb writes about her year with Malala Yousafzai.
♦ Dennis Rodman compares a visit to North Korea with a holiday in Ibiza. Read more
♦ The value of the drone market has soared to more than $5bn in just a few years, helped by Pentagon and CIA reliance. However, privacy worries are threatening the burgeoning domestic market.
♦ The fourth-largest auction house in the world is run by Wang Yannan, the daughter of former Chinese leader Zhao Ziyang and child of the cultural revolution. Its success has come from Chinese collectors and investors seeking art that might have destroyed lives during the cultural revolution.
♦ The “Death to America” slogan has been a feature of public life in Iran for more than three decades, but Hassan Rouhani’s push for moderation has prompted calls for the slogan to be dropped.
♦ Some Republicans are sceptical that a default would actually be a catastrophe for the US.
♦ David Gardner thinks Bashar al-Assad’s diplomatic luck could run out as the “killing machine grinds forward”.
♦ Islamists entering Syria are starting to prefer transit towns, with good food and video games, to the fighting front.
♦ Gulf states are going to test people to “detect” homosexuals entering their countries. Read more
Ted Cruz (Getty)
There is an old joke that the foreigners should be allowed to vote in US presidential elections because the result matters so profoundly to the rest of the world. Worried global investors might now extend that idea to Congressional elections as well – as the US government shutdown shakes global markets, with the promise of far worse to come if Congress refuses to raise the debt ceiling in a couple of weeks time, and the American government defaults on its debts as a result.
For much of the rest of the world, America’s actions seem bafflingly illogical and self-harming. The reality, however, is that the Republican congressmen who have pushed this over the brink are not (by and large), crazy. It is just that their political incentives are now stacked towards confrontation with President Obama. Read more
♦ Evan Osnos discusses how the Chinese activist Chen Guangcheng has been embraced by US Republicans.
♦ The US Supreme Court rules this week on the constitutionality of Section Five of the Voting Rights Act, which was passed at the height of the civil rights movement and requires jurisdictions where there has been a history of racial discrimination to submit any proposed voting changes to the Justice Department for approval.
♦ A five-year farm bill was defeated on the US House of Representatives last week. E.J. Dionne argues that it is a lesson in the real causes of Washington dysfunction: “Our ability to govern ourselves is being brought low by a witches’ brew of right-wing ideology, a shockingly cruel attitude toward the poor on the part of the Republican majority, and the speaker’s incoherence when it comes to his need for Democratic votes to pass bills.”
♦ The Atlantic looks at why Edward Snowden would look to Ecuador for asylum.
♦ Jon Stewart appears on the show of Bassem Youssef, his Egyptian counterpart. Read more
By Richard McGregor in Washington
It is remarkable that Barack Obama, only months after a convincing re-election, seems to keep falling back on his self-professed powerlessness when pressed about his second-term agenda.
Be it on closing down Guantanamo Bay, ending the across-the-board budget cuts (known as sequestration), restricting firearms sales or bringing Obamacare into life, Mr Obama talks more about what he can’t get done than the other way round.
The president suffered the indignity at a Tuesday press conference of being asked if his second-term administration still had any “juice” left, joking in response that maybe he should “just pack up and go home”. Read more
♦ Kenya’s new leader Uhuru Kenyatta is proving deft at politics even with a charge for crimes against humanity hanging over his head.
♦ Jonathan Soble looks at the dilemma that Haruhiko Kuroda faces over the next two years – “How do you convince markets and consumers that you are serious about raising prices, without being so dogmatic that you risk the central bank’s credibility – and your job – if you fail?”
♦ Margaret Thatcher’s death has prompted a wave of nostalgia among US conservatives.
♦ Sarah Neville, the FT’s public policy editor, thinks welfare reforms in the UK are likely to test the resolve of the middle class. (You can find out more about the reforms in today’s additions to the FT Austerity Audit.)
♦ Nicolás Maduro summons the ghost of Hugo Chávez in the final days of his campaign, a move he is counting on to propel him to victory at Sunday’s presidential elections.
♦ Jack Goldstone at Foreign Policy thinks there “is a real risk that the Korean Peninsula will follow Syria’s descent into war”. (Although you might not have to worry. The military’s planned missile test has been “put on hold because of “problems with Windows 8”, according to the Borowitz Report.) Read more