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Top 10 Risks for 2010

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Well, according to Eurasia Group, the number one risk for 2010 is U.S.-China relations.

In their annual “Top Risks” report, the firm’s president, Ian Bremmer, and head of research, David Gordon, announced their top risks today, which states that “2010 is likely to be much more turbulent geopolitically than 2009, when the world was preoccupied with coping with the global financial crisis, but saw no big geopolitical crisis.”

  1. U.S.-China relations — The firm sees the relationship between these two powerhouses deteriorating significantly due to China’s reluctance to take more of a leadership role, as was seen during the Copenhagen climate conference. Other issues affecting the relationship include Beijing’s economic partnership with the U.
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    S., the resulting higher tariffs on Chinese exports, differences in cap and trade beliefs and issues involving cyber-security, among others.

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  2. Iran — Eurasia Group points to Iran as the biggest “purely geopolitical risk in 2010.” The report focuses on the country’s struggling government, its nuclear program and its reaction to ensuing sanctions. “The Iranian regime looks increasingly like a cornered, wounded animal,” the report states. “In 2010, it’s likely to act like one.
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  3. European fiscal divergence — It seems the fiscal challenges in Greece, Ireland, Spain, Portugal and Italy have created a massive area of financial risk in Europe. Eastern Europe faces escalating risks as well, especially if European Central Bank liquidity measures are curtailed.
  4. U.S. financial regulation — Eurasia Group feels 2010 will prove to be a more difficult year for Obama than 2009. The firm points to unemployment remaining high, very challenging financial regulatory reform and mid-term elections affecting this reform. “Both the Americans and Europeans are aware of the risk of driving the financial industry into the ground with too much (or too drastic) regulation or taxation,” the report states. “But as reform becomes an election-year domestic battleground, the need to serve political interests will be increasingly at odds with the need to create an efficient framework for regulatory reform.”
  5. Japan — Japan has had to endure sweeping political change and the new Democratic Party of Japan’s (DPJ) efforts to “limit the influence of bureaucrats and industrialists” has created an atmosphere of higher policy risk. Other concerns regard the uncertainty of the DPJ and the party’s less favorable disposition toward the business community, which is likely to harm financial confidence, further affecting economic woes.

The remainder of their top 10 list can be viewed here. It’s interesting to note the “red herrings” section listed at the bottom, which includes information on Iraq, the Persian Gulf, Russia, the dollar and New York and London.

Latvia’s New Loan Company

Would you offer your soul as collateral for a loan? In Latvia, people are lining up to do just that.

Latvian Viktor Mirosiichenko has started his own loan company, asking that individuals sign an agreement stating that the company is obliged to the client’s “immortal soul” should they fail to pay back the money owed.

Mirosiichenko said his company would not employ debt collectors to get its money back if people refused to repay, and promised no physical violence. Signatories only have to give their first name and do not show any documents.

“If they don’t give it back, what can you do? They won’t have a soul, that’s all,” [Mirosiichenko] told Reuters in a basement office, with one desk, a computer and three chairs.

Will this type of loan agreement appeal to residents of the EU country hardest hit by the recession? Well, so far, the company has given out some 200 loans valued at up to 250 lats ($500) for between one and ninety days, complete with a substantial interest rate.

From his tiny office, Mirosiichenko is betting on the moral goodness of his fellow Latvians — a risky bet in an even riskier economic times.

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In Riga, Latvia, one man is trying to use souls for collateral.

Tighter Gun Laws?

After 15 people were shot dead in and around a German school campus by a former student, it seems Germany feels no need for stricter gun laws. The country’s Interior Minister, Wolfgang Schaeuble, stated “I can’t see how a change in weapons rules would contribute anything to solving the problem.”

Mr. Schaeuble, are you serious?

True, a combination of mental health problems and societal influences, among others, play a part in reasons behind most school shootings, and all factors should be addressed. However, it is hard to control mental health and society at large. Tim Kretschmer, the 17 year-old shooter who killed 15 before taking his own life, had a history of depression and failed to continuously attend his outpatient therapy sessions. No one had control over helping him, just as no one has control over forcing an individual to continuously take medication for their mental illness. There is no total control over mental health.

Additionally, though attempts have been made, and some ground gained, in protecting influential children against violence and sex in television, films and video games, there will never be strong enough protection. If a 13 year-old wants to play Resident Evil 4 (ranked the #1 most violent video game), the age restriction on its purchase will not stop him. A friend, older brother or even his parents will purchase it for him and within the first minutes of play, that impressionable mind will see the corpse of a woman pinned up on a wall by a pitchfork through her face. There is no total control over societal influences.

There is control over guns. With tighter gun CONTROL laws, access to these killing machines can be greatly restricted. It is naïve to think that stricter gun control laws will put an end to school shootings, but with nothing else to control, we must turn to legislation in hopes of one day getting through a school year shooting-free.

Tighter gun control laws –- it’s a no-brainer, people.

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