Sep 29, 2008|
A weekend of deals
...for the US Also read - Once in a century crisis
Warren Buffett recently proclaimed that the financial crisis in the US was 'everybody's problem' and not just that of Wall Street. He has now warned policymakers that the US might face its 'biggest financial meltdown' if they did not do something to secure the financial system. This warning has come in the wake of the US government reaching a 'tentative' deal on the US$ 700 bn economic bailout plan. The deal now needs to go through the US parliament and lawmakers for final voting on October 1.
Another deal that got a go-ahead in the US parliament during the weekend was the huge US$ 634 bn approval for eliminating a long-standing ban on drilling off the Atlantic and Pacific coasts. This abolishment of this ban has the potential to open up huge reserves of oil in the US, which as US experts claim 'brings the country one step closer to ending its dependence on foreign sources of energy.' As a matter of fact, US currently produces only 33% of its annual crude oil consumption with the rest being imported.
...and one for India
Another deal that saw its way through the US policymakers over the weekend was the one taking India one more step forward in its nuclear ambitions. The bill on the Indo-US nuclear deal was passed by the US' House of Representatives (lower house of US parliament, like India's Lok Sabha). To finally see its way through, the Bill now needs a backing from the Senate (upper house, like India's Rajya Sabha), which is expected to vote next week on this issue.
An approval from the Senate will end the three-decade ban on US' nuclear trade with India. This ban was imposed after India carried out its first nuclear test in 1974 and subsequently refused to sign the Non-Proliferation Treaty (NPT)*.
Also read - Wanted: A financial innovation NPT
India now already has the approval to buy fuel and technology from the International Atomic Energy Agency and the Nuclear Suppliers Group (NSG), which controls global atomic trade. As a matter of fact, the 45-member NSG had given its nod to the deal on September 6th this year.
* The Treaty on the Non-Proliferation of Nuclear Weapons, also Nuclear Non-Proliferation Treaty (NPT or NNPT) is a treaty to limit the spread of nuclear weapons, opened for signature on July 1, 1968. There are currently 189 countries party to the treaty, five of which have nuclear weapons: the United States, the United Kingdom, France, Russia, and the People's Republic of China (the permanent members of the UN Security Council). Only four recognized sovereign states are not parties to the treaty: India, Israel, Pakistan and North Korea. (Source-Wikipedia)
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