WORLD NEWS FLASH
UNITED STATES
On Sept. 21, the U.S. Federal Reserve released this disappointing statement:
“Recent indicators point to modest growth in spending and production. Job gains have been robust in recent months, and the unemployment rate has remained low. Inflation remains elevated, reflecting supply and demand imbalances related to the pandemic, higher food and energy prices, and broader price pressures.
“Russia’s war against Ukraine is causing tremendous human and economic hardship. The war and related events are creating additional upward pressure on inflation and are weighing on global economic activity. The Committee is highly attentive to inflation risks.
“The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these goals, the Committee decided to raise the target range for the federal funds rate to 3 to 3-1/4 percent and anticipates that ongoing increases in the target range will be appropriate. In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, as described in the Plans for Reducing the Size of the Federal Reserve’s Balance Sheet that were issued in May. The Committee is strongly committed to returning inflation to its 2 percent objective.
“In assessing the appropriate stance of monetary policy, the Committee will continue to monitor the implications of incoming information for the economic outlook. The Committee would be prepared to adjust the stance of monetary policy as appropriate if risks emerge that could impede the attainment of the Committee’s goals. The Committee’s assessments will take into account a wide range of information, including readings on public health, labor market conditions, inflation pressures and inflation expectations, and financial and international developments.
“Voting for the monetary policy action were Jerome H. Powell, Chair; John C. Williams, Vice Chair; Michael S. Barr; Michelle W. Bowman; Lael Brainard; James Bullard; Susan M. Collins; Lisa D. Cook; Esther L. George; Philip N. Jefferson; Loretta J. Mester; and Christopher J. Waller.”
Upon hearing the news, the Dow Jones Industrial Index finished the day down over 500 points, while the NASDAQ fell over 200 points and the S&P lost over 65.
TISH SUES TRUMP
On Sept. 21, New York Attorney General Letitia James filed a lawsuit against Donald Trump, the Trump Organization, senior management, and involved entities for engaging in years of financial fraud to obtain a host of economic benefits.
The lawsuit alleges that Donald Trump, with the help of his children Donald Trump, Jr., Ivanka Trump, and Eric Trump, and senior executives at the Trump Organization, falsely inflated his net worth by billions of dollars to induce banks to lend money to the Trump Organization on more favorable terms than would otherwise have been available to the company, to satisfy continuing loan covenants, to induce insurers to provide insurance coverage for higher limits and at lower premiums, and to gain tax benefits, among other things.
From 2011-2021, it is alleged that the former President and the Trump Organization knowingly and intentionally created more than 200 false and misleading valuations of assets on his annual Statements of Financial Condition to defraud financial institutions.
AG James feels that the conduct was in violation of New York Executive Law 63(12), which gives the Office of the Attorney General (OAG) special and broad powers to go after persistent and repeated fraud and illegality, which in this case includes violating other state laws prohibiting the submission of false financial statements, the falsification of business records, and the commission of insurance fraud.
As a consequence of these violations, the NY OAG is seeking, among other relief, to: 1) permanently bar Mr. Trump, Donald Trump, Jr., Ivanka Trump, and Eric Trump from serving as an officer or director in any New York corporation or similar business entity registered and/or licensed in New York state; 2) bar Mr. Trump and the Trump Organization from entering into any New York real estate acquisitions for five years; 3) award disgorgement of all financial benefits obtained through the persistent fraudulent practices, estimated to total $250 million.
In conjunction with the lawsuit, the NY OAG has referred the matter to the U.S. Attorney’s Office for the Southern District of New York and the Internal Revenue Service (IRS) for criminal investigation.
“For too long, powerful, wealthy people in this country have operated as if the rules do not apply to them. Donald Trump stands out as among the most egregious examples of this misconduct,” said Attorney General James. “With the help of his children and senior executives at the Trump Organization, Donald Trump falsely inflated his net worth by billions of dollars to unjustly enrich himself and cheat the system. In fact, the very foundation of his purported net worth is rooted in incredible fraud and illegality.
“Mr. Trump thought he could get away with the art of the steal, but today, that conduct ends. There are not two sets of laws for people in this country; we must hold former presidents to the same standards as everyday Americans. I will continue to ensure that no one is able to evade the law, because no one is above it.”
In response, President Trump wrote on his Truth Social media platform, “I never thought this case would be brought – until I saw her really bad poll numbers. She is a fraud who campaigned on a ‘get Trump’ platform.”
WORLD
UN LEADER SENSES “BIG TROUBLE”
With people from all points of the globe crying out for relief and hope, international action on major challenges – from climate to conflict and securing sustainable development – is paralyzed by dysfunction and held hostage to geopolitical tensions, UN Secretary-General António Guterres warned on Sept. 20.
Delivering a powerful address to world leaders gathered for the opening day of the General Assembly’s high-level debate, the Secretary-General said: “Our world is in big trouble. Divides are growing deeper; inequalities are growing wider; challenges are spreading father… we need hope… we need action across the board.”
With evocative images of the Brave Commander, one of the vessels that has been carrying tons of Ukrainian wheat bound for points in Ethiopia, Yemen and beyond, showing behind him on the walls of the iconic General Assembly Hall, Mr. Guterres said the ship, and the UN-brokered Black Sea Grain Initiative that had launched it were not symbols of conflict and hunger but of hope born of cooperation.
“It sailed the Black Sea with the UN flag flying high and proud. At its essence, this ship is a symbol of what the world can accomplish when we act together. Ukraine and the Russian Federation – with the support of Türkiye – came together to make it happen – despite the enormous complexities, the naysayers, and even the hell of war. This is multilateral diplomacy in action. Each ship is also carrying one of today’s rarest commodities: Hope,” he stated.
The Secretary-General’s comments came hours before Russian President Vladimir Putin announced that he would send a massive influx of troops into Ukraine.
Presenting his Annual Report on the Work of the Organization, the Secretary-General said soberingly: “Let’s have no illusions. We are in rough seas. A winter of global discontent is on the horizon. A cost-of-living crisis is raging. Trust is crumbling. Our planet is burning. People are hurting – with the most vulnerable suffering the most. The United Nations Charter and the ideals it represents are in jeopardy.”
And the while the international community had a duty to act, “we are gridlocked in colossal global dysfunction. The international community is not ready or willing to tackle the big dramatic challenges of our age. These crises threaten the very future of humanity and the fate of our planet.”
Along with the climate emergency and biodiversity loss, and the war in Ukraine, the UN chief said of crises like the dire financial situation of developing countries and the fate of the Sustainable Development Goals (SDGs), “a forest of red flags across a host of new technologies,” rising hate speech and “out of control” digital surveillance, “we don’t have the beginning of a global architecture to deal with any of this.”
Indeed, he said, progress on all these issues and more is being held hostage to geopolitical tensions.
The Secretary-General said that while the divergence between developed and developing countries – between the privileged and the rest – was becoming more dangerous by the day and was the root of geopolitical tensions that were poisoning every area of global cooperation, “by acting as one, we can nurture fragile shoots of hope.”
He cited the hope found in climate and peace activists demanding better of their leaders, in women and girls leading the fight for basic human rights, in humanitarian heroes rushing to deliver lifesaving aid and said the UN stands with them all.
“So, let’s develop common solutions to common problems – grounded in goodwill, trust, and the rights shared by every human being. Let’s work as one, as a coalition of the world, as united nations,” he concluded.
AFRICA
EBOLA FOUND IN UGANDA
An outbreak of Ebola virus has been declared in Uganda after a case was confirmed in Mubende district, in the centre of the country.
The UN World Health Organization (WHO) said on Sept. 20 that a sample taken from a 24-year-old man was identified as the relatively rare Sudan strain.
It is the first time in more than a decade that the Sudan strain has been found in Uganda, which also saw an outbreak of the Zaire strain of Ebola virus in 2019.
The latest outbreak follows six suspicious deaths in Mubende district so far this month. There are also eight suspected cases who are receiving care in a health facility.
Dr. Matshidiso Moeti, World Health Organization Regional Director for Africa, said that the UN agency was working closely with Ugandan authorities to investigate the source, and support efforts to control it.
“Uganda is no stranger to effective Ebola control,” she said. “Thanks to its expertise, action has been taken to quickly to detect the virus and we can bank on this knowledge to halt the spread of infections.”
Existing vaccines against Ebola have proved effective against the Zaire strain but it is not clear if they will be as successful against the Sudan strain, WHO said in a statement.
Ebola is a severe, often fatal illness affecting humans and other primates. It has six different strains, three of which – Bundibugyo, Sudan and Zaire – have previously caused large outbreaks.
Case fatality rates of the Sudan strain have varied from 41 percent to 100 percent in past outbreaks. Early roll-out of supportive treatment has been shown to significantly reduce deaths from Ebola, WHO said.
The agency has dispatched supplies to support the care of patients and is sending a specialized tent that will be used to isolate patients.
While ring vaccination of high-risk people with Ervebo (rVSV-ZEBOV) vaccine has been highly effective in controlling the spread of Ebola in recent outbreaks in DRC and elsewhere, said WHO, this vaccine has only been approved to protect against the Zaire strain.
Another vaccine produced by pharmaceutical company Johnson and Johnson may be effective but has yet to be specifically tested against the Sudan strain.
