The Week of January 26th, 2015

Care

1. Syriza takes power in Athens

Syriza, a far left party, has taken power in Greece, gaining popular support on promises to end or at least alleviate the post-bailout austerity measures that Greeks have endured in the wake of the 2008 financial crisis. Syriza, led by Prime Minister Alexis Tsipras, plans to revive the stagnant Greek economy by raising the minimum wage, adding jobs to private and public sectors, ameliorating conditions for the unemployed, easing taxes on and providing benefits for the poor, and raising taxes on expensive or second properties. Tsipras and his coalition also call for debt forgiveness, citing similar action for post-WWII Germany and the positive effect that it had on the German economy. Greece’s debt of €319 billion, a whopping 175% of its GDP, has prompted widespread concern of an imminent default. The reaction within the Eurozone is unclear at this moment, but some are worried that these elections may signal a negative future for the euro; stock markets fell around the world over the uncertainty.

Another imminent concern that this power-shift raises is the new Prime Minister’s stance on the recent Russian aggression in Ukraine. The first foreign envoy that Mr. Tsipras met with after his victory was the Russian delegate, and has previously made statements criticizing recent EU sanctions of Russia over the annexation.

2. The ECB launches its own QE

Last Friday, the European Central Bank unveiled a widely speculated €1.1 trillion ($1.25 trillion) package of quantitative easing (QE) to boost the ailing Eurozone economy. The QE package, which is paired with the promise of low interest rates, will inject this large amount of money into the economy in hopes of encouraging borrowing and thus spending. The ECB will buy €60 billion worth of bonds every month until at least the end of September 2016. The latest asset purchase program, which is set to begin in March, expands purchases to include bonds issued by governments, institutions and other agencies within the 19-country euro area.  

Reaction to the ECB’s decision sent the euro to an 11-year low against the US Dollar and bolstered European equity markets. A weaker euro will benefit European exporters and retail groups, whose revenues largely depend on overseas business. At the same time, it increases the price of imports, thus reducing the deflationary spiral. But some analysts point out that the move increases the threat of volatility on the financial markets as it could trigger a currency war. Additionally, more private bank lending, one of the aims of QE, would heap more debt on the already highly-indebted region. In the long run, it may have a limited effect in boosting the economy as indebted consumers are likely to keep a check on their budgets.

3. Prosecutor’s death haunts Argentinian president

President Cristina Fernandez de Kirchner of Argentina has recently come under fire in a new scandal concerning the death of Alberto Nisman, a prosecutor found dead the day before he was set to testify before lawmakers to accuse the president of a cover-up. For the past 14 years, Nisman investigated the 1994 terrorist bombing on the Jewish charity Amia which killed 85 and injured hundreds of people.

He was set to appear before a congressional panel on January 18th to present evidence in the case. No prosecution has been completed in the more than two decades since the attack. Nisman was expected to give evidence that the government had made an agreement with the Iranian government, exchanging grain for oil on the condition of withdrawing its Interpol complaints seeking the arrest of the Iranian officials accused in the bombing.

Nisman's death was initially called a suicide by investigators, but has since been reclassified as 'suspicious'. The untimely death of a key prosecutor right before he was to present evidence damaging to the Kirchner administration has brought about accusations of foul play and public protests. Adding to the suspicious atmosphere is Kirchner's decision to replace Argentina's Intelligence Office with a new federal intelligence agency, as well as the fact that Nisman had ten bodyguards assigned to provide round-the-clock protection.

4. SCOTUS takes up constitutionality of lethal injection

The death penalty is back in the minds of American justices. The US Supreme Court has agreed to take up the issue of lethal injection and decide whether the practice qualifies as Constitutionally-banned “cruel and unusual punishment”. The applicability of this phrase to lethal injection, currently considered the most humane form of execution, has been a growing question since three US executions were botched last year, when a new form of anesthetic applied before the dangerous injections did not work. The traditionally favored anesthetic has faced a dramatic supply shortage after certain European companies decline to sell it to the American justice system in protest of the death penalty. The question in this case is whether this new anesthetic is a constitutionally valid replacement. The executions of three Oklahoma convicts are currently on hold, awaiting the decision of the Court this summer.

This case has reached Washington at the same time as several notable scandals over the execution of mentally disabled convicts; one in Georgia and one in Texas. Executions are very expensive due to long, drawn-out appeals processes, and rarely occur, even in the most pro-death penalty states. If the Supreme Court rules against this new anesthetic, it could make the continuation of the death penalty even more difficult.

5. Mexican president proposes police nationalization

It comes as little surprise that Mexico, recently rocked by the murder of forty three students several months ago, is still grappling with violence related to its decade-old Drug War. As violence has raged on, powerful drug cartels based in the north of Mexico have become the de facto enforcement powers in small towns, often buying off corrupt local police forces in the process. This has influenced the creation of vigilante citizen groups to combat cartel influence. This arrangement proves costly, both in terms of human lives lost and money spent combating these gangs. In response to the mass corruption perceived to be at the core of this crisis, President Enrique Pena Nieto has sent a bill to the Mexican Congress which would lead to the creation of a federal police force and the dissolution of municipal forces.

Many within Mexico are concerned that the centralization of power will only increase the corruption present within local police forces. Another obstacle to this reform is its apparent cost, a growing difficulty in the face of the government’s current budgetary issues. Poverty remains widespread, with the average local police making less than $325 a month. Only 39% of Mexican citizens in a recent poll expressed confidence in their police force, a statistic strongly connected to the fact that many small towns in Mexico lack police officers and funds.  An inquiry also found that Mexican federal police are less reliable than municipal ones. President Nieto will have to decide whether pursuing this law is politically feasible. In recent months, his popularity has plummeted, and as questions arise over a potential corruption charge, he cannot afford to alienate the electorate.

Dont Care

0. First Lady uncovered in Riyadh

Barack and Michelle Obama were in Riyadh, Saudi Arabia this week to pay respects to the late King Abdullah. Although relatively little attention was paid to the fact that the President cut his trip to India short to be in Saudi Arabia (a fact that serves as a reminder of the importance of US-Saudi relations), many were quick to point out that the First Lady wore her hair unveiled, a supposed faux pas in the ultra-conservative kingdom. Media agencies and politicians in the US, including Senator Ted Cruz, were quick to praise Ms. Obama for her brave and defiant stance on women’s freedom. However, they might have been a little too quick. As it turns out, it is a long-standing custom that foreign female dignitaries are not compelled to wear a headscarf.

Despite this tradition, many in the media pointed to tweets from Saudi Arabia using the hashtag #Michelle_Obama_Unveiled as evidence that her actions were causing an uproar. While it is true that more than 1,500 tweets were published with that hashtag, that is a small number compared to the millions of Saudi twitter users. The media’s representation of this incident serves as a reminder that our news providers rush to judgment on issue that they are uninformed about. Ultimately, this diversion takes away from reporting on more substantial issues that could have been conducted in Saudi Arabia.

Arkar Hein, Kevin Corkran, Monika Hur, Liam Conway-Pearson, Ben Mandel, and Sam Housekeeper contributed.