World Economic News

Berlin Revenues of Cerberus May Co-Fund Camps in Iraq

For the upcoming September municipal election campaign in Berlin, the role of the Cerberus fund, as a leading owner of housing in the city, will be investigated—especially because the fund's purchase of almost 70,000 flats of the city-owned housing sector in 2004, was approved by the SPD-PDS-run "red-red" municipal administration.

The bigger part of the deal went through on May 26, 2004, when Cerberus bought 65,000 flats of the publicly-owned GWS for 2.1 billion euros, which instantly gave the Berlin administration 405 million euros, for urgent filling of holes in the budget. Several months before, 4,000 flats of the city-owned GEHAG had gone to the Cerberus.

The relatively safe revenue from the housing sector allows funds like Cerberus to get preferable conditions for loans from banks and other funds, such as for carry-trade operations that yield (or, have yielded, so far) enormous profits at excessively high interest rates in places like Iceland. Some of that profit may end up in aggressive take-over operations like the current one against GMAC in the United States, or even in those camps that Cerberus runs under the cover of perverted "real estate" projects in Iraq. It makes sense, that Don Rumsfeld has invested money in Cerberus.

Iran President Signs Development Deals with Malaysia

On a high-profile visit to Kuala Lumpur, Iranian President Mohammed Ahmadinejad signed several development deals with Malaysia in Kuala Lumpur, the New Straits Times reported March 3. The three-day visit to Malaysia, which is currently chairman of the Nonaligned Movement and the OIC, has important political as well as economic implications. Four memoranda of understanding were signed, covering cooperation in construction of infrastructure, housing, and railways (no details available), among others. Malaysian Prime Minister Abdullah Ahmad Badawi was invited to visit Iran, where final agreements will be signed on the deals. Ahmadinejad, who made comments from Malaysia about the nuclear issue which were widely covered worldwide, also said: "I believe the might of my country and Malaysia will not be detrimental to other countries. We will serve international peace and tranquility."

Iran is also working closely with the Indonesian government. Both Malaysia and Indonesia have good relations with the U.S., and are trying to play a moderating role in the West's relations with Iran.