the economic outlook in the United States, however cloudy, is still better than in most other regions.

loss of purchasing power over time, meaning your dollar will not go as far tomorrow as it did today. It is typically expressed as the annual change in prices for everyday goods and services such as food, furniture, apparel, transportation and toys.

A fragile currency can sometimes work as “a buffering mechanism,” causing nations to import less and export more, Mr. Prasad said. But today, many “are not seeing the benefits of stronger growth.”

Still, they must pay more for essential imports like oil, wheat or pharmaceuticals as well as for loan bills due from billion-dollar debts.

debt crisis in Latin America in the 1980s.

The situation is particularly fraught because so many countries ran up above-average debts to deal with the fallout from the pandemic. And now they are facing renewed pressure to offer public support as food and energy prices soar.

Indonesia this month, thousands of protesters, angry over a 30 percent price increase on subsidized fuel, clashed with the police. In Tunisia, a shortage of subsidized food items like sugar, coffee, flour and eggs has shuttered cafes and emptied market shelves.

New research on the impact of a strong dollar on emerging nations found that it drags down economic progress across the board.

“You can see these very pronounced negative effects of a stronger dollar,” said Maurice Obstfeld, an economics professor at the University of California, Berkeley, and an author of the study.

central banks feel pressure to raise interest rates to bolster their currencies and prevent import prices from skyrocketing. Last week, Argentina, the Philippines, Brazil, Indonesia, South Africa, the United Arab Emirates, Sweden, Switzerland, Saudi Arabia, Britain and Norway raised interest rates.

World Bank warned this month that simultaneous interest rate increases are pushing the world toward a recession and developing nations toward a string of financial crises that would inflict “lasting harm.”

Clearly, the Fed’s mandate is to look after the American economy, but some economists and foreign policymakers argue it should pay more attention to the fallout its decisions have on the rest of the world.

In 1998, Alan Greenspan, a five-term Fed chair, argued that “it is just not credible that the United States can remain an oasis of prosperity unaffected by a world that is experiencing greatly increased stress.”

The United States is now facing a slowing economy, but the essential dilemma is the same.

“Central banks have purely domestic mandates,” said Mr. Obstfeld, the U.C. Berkeley economist, but financial and trade globalization have made economies more interdependent than they have ever been and so closer cooperation is needed. “I don’t think central banks can have the luxury of not thinking about what’s happening abroad.”

Flávia Milhorance contributed reporting from Rio de Janeiro.

View

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

How Accent-Changing Apps Are Removing Communication Barriers

Apps like Sanas are helping smooth communication by removing accent barriers that can lead to misunderstandings.

Accents are diverse and unique, but sometimes accents get in the way of understanding people. An app called Sanas looks to remove that barrier by using AI technology to take away a person’s accent.

“We’re all trained with the products, with the services,” said Dwayne Alviola, “Whether we’re in the Philippines or in a different country, rest assured that we’re trained in every detail to handle your accounts.”

Alviola lives in the Philippines and has worked for U.S.-based companies for eight years. He previously worked in call centers and now works in customer service.

Throughout the years of working in call centers, Alviola says he and his coworkers faced discrimination and racism on the other end of the call.

“Usually, the “f-you” word, then usually they’ll be in different types of curses, but since it’s our second language, we don’t even mind it,” Alviola said. “But, racism comes in, even if we know that we’re not the one being blamed for their experience, it still hits us the most.”

Alviola says they’re stuck. When he was working in call centers, they’re not allowed to hang up, so they have to be on the call until the caller on the other line clicks off. He says accent-altering apps can lead to smoother communication and less verbal abuse.

“Especially for new graduates who just entered training, then it would help them boost their confidence,” Alviola said. “That’s also one reason why I like the app, because if it was developed just a few years ago when I was starting, I would love it.”

Others find the Sanas app especially helpful when cops or hospitals are involved.

“If there is a law, like a with discussion, with the cop, with their doctor mainly, there are a lot of problem when communicating with the doctor if you don’t know proper English,” said Mehboob Ahmedabadi, an Indian man working in media.

On the flip side, others argue that apps that take away accents perpetuate racism and discrimination by masking the problem at hand. Judy Ravin, the founder of Accents International, says there’s a way to do things differently.

“At the conclusion of our program, which is called Powerful Pronunciation, people will still have an accent,” Ravin said. “We think that’s a good thing. An accent is a piece of our cultural and linguistic identity. What we won’t have is a communication barrier due to pronunciation.”

Unlike the app that filters voices, Accents International improves pronunciation through real time coaching. For example, the vowel sounding “aw” used in words like “law” or “daughter” can be tough for those not familiar with pronouncing it.

“The way we teach it is both,” Ravin said. “What does it look like, and what does it feel like? Well, it looks like someone’s popped an egg in their mouth. It looks like a perfect oval… and a person can feel the top of their tongue behind their lower teeth. So what does it look like? What does it feel like… not, what does it sound like?”

Vincent Dixon had a thick Irish accent, but through years of teaching English in France, he learned to communicate more effectively.

“I think sometimes people feel that their accents makes them lesser or more, and it really doesn’t,” Dixon said. “It just makes you who you are. It’s like the color of my eyes or the color of my hair.”

In a world filled with more AI listening, trying to get machines to understand despite an accent can be especially frustrating.

“It’s very frustrating because I talk to my watch, I talk to my husband,” said Eileen Panzardi, a Puerto Rican living in Atlanta. “I talk to my phone, and I have to pass it to my daughter, who was born here in Atlanta, and ask her to say whatever word it is for Siri to understand me because sometimes she don’t even get me.”

Ultimately, the goal of accent-changing technology is to create better person-to-person communication in an ever-increasing, globalized world.

“For me, the key point is not their identity in communication,” said Haulk A, a Kurdish software engineer living in Chicago. “In the communication, the important thing is to the message that you send and the message that you get.”

: newsy.com

View

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

Whistleblower Lays Out Twitter’s Data Security Troubles

Former head of Twitter security Peiter Zatko explained the company has previously employed foreign agents.

Former head of Twitter security Peiter Zatko on Tuesday told Congress about the tech giant’s widespread issues with keeping foreign adversaries from working at the company and exploiting internal data. 

“Twitter would be a gold mine for people in the community who focus on foreign intelligence organizations and assets,” Zatko said. “If you placed somebody in Twitter, as we know has happened, it would be very difficult to Twitter to find them. They would probably be able to stay there for a long period of time and gain a significant amount of information.”  

In his opening remarks, Sen. Chuck Grassley noted that Zatko’s disclosures helped uncover evidence that India was able to place at least two foreign assets on payroll at the company, and that China had at least one agent at Twitter as well. 

Zatko noted those agents could be embedded to figure out what information Twitter might censor, or to use internal software to find user phone numbers, current and former email addresses, and even where Twitter thinks a user lives.  

“This is the information that you need to start taking over other people’s accounts […] Once I know your home address and your home phone number, I can approach you in real life. I can put pressure on you, I can possibly recruit you,” Zatko said. “You could be a witting or unwitting accomplice. And then I could influence you or target you for influence operations in the real world. 

Zatko also said that former users may be at risk of having their data exposed, too. 

“I was told straight out by the chief privacy officer that the FTC had come and asked, ‘does Twitter delete user information when they leave the platform?’”  

“Instead of answering whether we delete user data, we have intentionally replied, ‘we deactivate users,’ and try to sidestep the program because we know we don’t delete user data, and cannot comply with that if they demand us to.” 

A Twitter spokesperson told Newsy that “Today’s hearing only confirms that Mr. Zatko’s allegations are riddled with inconsistencies and inaccuracies.” The company also said its hiring process is independent of foreign influence and includes background checks. 

: newsy.com

View

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

Twitter Whistleblower Testifies Before Congress Over Security Flaws

By Associated Press

and Newsy Staff
September 13, 2022

Former Twitter security chief Peiter Zatko alleges that the social media platform ignored engineers and led them to “prioritize profit over security.”

A former security chief at Twitter told Congress that the social media platform is plagued by weak cyber defenses, privacy threats and the inability to control millions of fake accounts. Peiter “Mudge” Zatko, a respected cybersecurity expert, appeared before the Senate Judiciary Committee to lay out his allegations Tuesday.

“Twitter’s misleading the public, lawmakers” and regulators, Zatko said as he began his sworn testimony.

“They don’t know what data they have, where it lives and where it came from and so, unsurprisingly, they can’t protect it,” Zatko said. “It doesn’t matter who has keys if there are no locks.”

Zatko said “Twitter leadership ignored its engineers,” in part because “their executive incentives led them to prioritize profit over security.”

His message echoed one brought to Congress against another social media giant last year, but unlike that Facebook whistleblower, Frances Haugen, Zatko hasn’t brought troves of internal documents to back up his claims.

Zatko was the head of security for the influential platform until he was fired early this year. He filed a whistleblower complaint in July with Congress, the Justice Department, the Federal Trade Commission and the Securities and Exchange Commission. Among his most serious accusations is that Twitter violated the terms of a 2011 FTC settlement by falsely claiming that it had put stronger measures in place to protect the security and privacy of its users.

Sen. Dick Durbin, an Illinois Democrat who heads the Judiciary Committee, said Zatko has detailed flaws “that may pose a direct threat to Twitter’s hundreds of millions of users as well as to American democracy.”

“Twitter is an immensely powerful platform and can’t afford gaping vulnerabilities,” he said.

Unknown to Twitter users, there’s far more personal information disclosed than they — or sometimes even Twitter itself — realize, Zatko testified. He said “basic systemic failures” that were brought forward by company engineers were not addressed.

The FTC has been “a little over its head,” and far behind European counterparts, in policing the sort of privacy violations that have occurred at Twitter, Zatko said.

Zatko’s claims could also affect Tesla billionaire Elon Musk’s attempt to back out of his $44 billion deal to acquire the social platform. Musk claims that Twitter has long underreported spam bots on its platform and cites that as a reason to nix the deal he struck in April.

Many of Zatko’s claims are uncorroborated and appear to have little documentary support. Twitter has called Zatko’s description of events “a false narrative … riddled with inconsistencies and inaccuracies” and lacking important context.

Among the assertions from Zatko that drew attention from lawmakers Tuesday was that Twitter knowingly allowed the government of India to place its agents on the company payroll, where they had access to highly sensitive data on users. Twitter’s lack of ability to log how employees accessed user accounts made it hard for the company to detect when employees were abusing their access, Zatko said.

Zatko also accuses the company of deception in its handling of automated “spam bots,” or fake accounts. That allegation is at the core of billionaire tycoon Elon Musk’s attempt to back out of his $44 billion deal to buy Twitter. Musk and Twitter are locked in a bitter legal battle, with Twitter having sued Musk to force him to complete the deal. The Delaware judge overseeing the case ruled last week that Musk can include new evidence related to Zatko’s allegations in the high-stakes trial, which is set to start Oct. 17.

Sen. Charles Grassley, the committee’s ranking Republican, said Tuesday that Twitter CEO Parag Agrawal declined to testify at the hearing, citing the ongoing legal proceedings with Musk. But the hearing is “more important than Twitter’s civil litigation in Delaware,” Grassley said. Twitter declined to comment on Grassley’s remarks.

In his complaint, Zatko accused Agrawal as well as other senior executives and board members of numerous violations, including making “false and misleading statements to users and the FTC about the Twitter platform’s security, privacy and integrity.”

Zatko, 51, first gained prominence in the 1990s as a pioneer in the ethical hacking movement and later worked in senior positions at an elite Defense Department research unit and at Google. He joined Twitter in late 2020 at the urging of then-CEO Jack Dorsey.

Additional reporting by The Associated Press.

: newsy.com

View

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

How Do Japanese Show They Care? By Sending a Telegram.

TOKYO — When he got married this summer, Hiroshi Kanno, who works at a security services firm in Tokyo, wanted to make a big statement that would impress his future in-laws.

So he asked for his company’s president to send a congratulatory telegram.

It arrived during the wedding party and was read aloud. “It really pumped up the atmosphere,” Mr. Kanno, 33, said. “I felt like a celebrity,” added his wife, Asuka, a 31-year-old office administrator. They posted photos of that message and another wedding telegram on Twitter, along with the his-and-her Hello Kitty dolls that were delivered with the notes.

The telegram, a form of communication associated more with the Roaring ’20s than the 2020s, has kept a foothold in Japan, where millions of the messages still crisscross the nation every year, carrying articulations of celebration, mourning and thanks.

ended its service in 2006. India, one of the last major national holdouts, shut down its state-run service in 2013 after 162 years.

The telegram services that remain have changed greatly since Samuel Morse’s invention of the telegraph put the Pony Express out of business.

Today, messages are mostly composed online and transmitted digitally before being printed out and hand delivered. In Japan, senders can choose from among a variety of fonts and elegant card stocks and select an accompanying gift from catalogs full of luxury goods and branded items — Disney and Hello Kitty are popular. Flowers or stuffed animals are common choices for weddings, incense sticks for funerals.

Payment schemes have also evolved: Instead of being charged by the character, as in the old days, customers are billed at a fixed rate for a fixed number of characters, and pay extra if they go over.

The telegram’s essence, however, has remained: a concise message printed on a small card and (relatively) swiftly delivered.

The telegram’s transformation into a vessel of etiquette was a decades-long process. Telegram use peaked in Japan in 1963, when the medium — then considered the gold standard for urgent communication — was used to send around 95 million messages, according to a government report assessing the recent state of the industry.

By the 1990s, telegram traffic had nearly halved. At the same time, the messages’ content had undergone an unexpected evolution: Nearly all of them conveyed congratulations or condolences.

In 2020, the most recent year for which data is available, more than four million telegrams were delivered in Japan. That makes it the third largest market for the medium behind Russia and Italy, according to statistics provided by International Telegram, a private firm that provides telegram services worldwide. (In the United States, fewer than a million telegrams are sent annually, the company said.)

The bulk of telegrams in Japan are sent by Nippon Telegraph and Telephone, known as NTT. The company, which started life as a state-owned entity, was given an effective monopoly on the telegram business when it was privatized in 1985. In exchange, the company had to guarantee that it would provide the service indefinitely.

Under NTT’s monopoly, the industry stagnated, and the company’s profits from it eventually vanished. But as government overhauls opened the business to competition in the past two decades, a number of small companies sprang up, introducing innovations like online ordering that have helped the industry survive.

For these firms, telegrams remain a moneymaking niche business.

Keisuke Yamamoto, the president of Roys International, started his company 15 years ago. At the time, he was working in licensing and had noticed a growing demand for telegrams that featured popular brands and characters like Peter Rabbit and Paddington Bear.

At the time, the market was 45 billion yen, he said, or about $325 million in today’s money, and he realized that “snagging even just 1 percent of that would make a successful business.”

He set out to differentiate his company, he said, by pairing the messages with gifts that would appeal to a younger generation. “It worked,” he said. “NTT has stolen our ideas over the years.”

The pandemic has hurt telegram traffic as people have avoided large events like weddings and funerals, but customers have become more likely to send telegrams with expensive presents, said Toshihiko Fujisaki, who heads the corporate planning department at Sagawa Humony, a company that offers telegram services.

The company has tried to bring young people onboard, giving university students the opportunity to experience ordering a telegram. It is also working on a smartphone app.

“Young people don’t know telegrams. They’re used to smartphones,” Mr. Fujisaki said. But compared with getting an email or a text message, “there’s a lot more emotion when you get a telegram.”

For those unfamiliar with the protocol, telegram companies offer online primers on sending messages for a variety of occasions. For weddings, guests should avoid using punctuation, because it could signify bringing something to an end. Senders are also advised to notify the recipient in advance to avoid any potentially unpleasant surprises.

Even as the broader market for telegrams has shrunk, they have remained popular among corporate clients and politicians, who see them as important tools for keeping up relationships.

Politicians send them not just to constituents but to each other, said Mr. Matsuda, the political consultant.

“They send them to each other when they can’t participate in a fund-raising event or when their colleagues get appointed to an important post,” he said.

Mr. Yamaguchi’s scandal, however, may have cooled that enthusiasm. During a recent talk show appearance, Toshinao Sasaki, a freelance journalist and political commentator, said the Unification Church controversy could finally end politicians’ love affair with the telegram.

“Times have changed,” he said, adding, “I think it’s the beginning of the end.”

For Asuka and Hiroshi Kanno, though, the telegram remains something to cherish. They proudly display their wedding telegrams in their living room, and Ms. Kanno said she planned to send one when her own future child gets married.

Still, the couple would never think to send a telegram under other circumstances, she said. When it comes to events like birthdays, “I’d probably go digital.”

View

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

Qatar Detains Workers Protesting Late Pay Before World Cup

By Associated Press
August 22, 2022

The move comes as Qatar faces intense international scrutiny over its labor practices ahead of the tournament.

Qatar recently arrested at least 60 foreign workers who protested going months without pay and deported some of them, an advocacy group said, just three months before Doha hosts the 2022 FIFA World Cup.

The move comes as Qatar faces intense international scrutiny over its labor practices ahead of the tournament. Like other Gulf Arab nations, Qatar heavily relies on foreign labor. The workers’ protest a week ago — and Qatar’s reaction to it — could further fuel the concern.

The head of a labor consultancy investigating the incident said the detentions cast new doubt on Qatar’s pledges to improve the treatment of workers. “Is this really the reality coming out?” asked Mustafa Qadri, executive director of the group Equidem.

In a statement to The Associated Press on Sunday night, Qatar’s government acknowledged that “a number of protesters were detained for breaching public safety laws.” It declined to offer any information about the arrests or any deportations.

Video footage posted online showed some 60 workers angry about their salaries protesting on Aug. 14 outside of the Doha offices of Al Bandary International Group, a conglomerate that includes construction, real estate, hotels, food service and other ventures. Some of those demonstrating hadn’t received their salaries for as many as seven months, Equidem said.

The protesters blocked an intersection on Doha’s C Ring Road in front of the Al Shoumoukh Tower. The footage matched known details of the street, including it having several massive portraits of Qatar’s ruling emir, Sheikh Tamim bin Hamad Al Thani, looking down on passers-by.

Al Bandary International Group, which is privately owned, did not respond to requests for comment and a telephone number registered in its name did not connect on multiple attempts to call it.

The Qatari government acknowledged that the firm hadn’t paid salaries and that its Labor Ministry would pay “all delayed salaries and benefits” to those affected.

“The company was already under investigation by the authorities for nonpayment of wages before the incident, and now further action is being taken after a deadline to settle outstanding salary payments was missed,” the government said.

Qadri said police later arrested the protesters and held them in a detention center where some described being in a stifling heat without air conditioning. Doha’s temperature this week reached around 105.8 degrees Fahrenheit.

Qadri described police telling those held that if they can strike in hot weather, they can sleep without air conditioning.

One detained worker who called Equidem from the detention center described seeing as many as 300 of his colleagues there from Bangladesh, Egypt, India, Nepal and the Philippines. He said some had been paid salaries after the protest while others hadn’t. His comments could not be corroborated.

Qatar, like other Gulf Arab nations, has in the past deported demonstrating foreign workers, and tied residency visas to employment. The right to form unions remains tightly controlled and available only to Qataris, as is the country’s limited right to assembly, according to the Washington-based advocacy group Freedom House.

Qatar, a small, energy-rich nation on the Arabian Peninsula, is home to the state-funded Al Jazeera satellite news network. However, expression in the country remains tightly controlled. Last year, Qatar detained and later deported a Kenyan security guard who wrote and spoke publicly about the woes of the country’s migrant labor force.

Since FIFA awarded the tournament to Qatar in 2010, the country has taken some steps to overhaul the country’s employment practices. That includes eliminating its so-called kafala employment system, which tied workers to their employers, who had say over whether they could leave their jobs or even the country.

Qatar also has adopted a minimum monthly wage of 1,000 Qatari riyals ($275) for workers and required food and housing allowances for employees not receiving that directly from their employers.

Activists like Qadri have called on Doha to do more, particularly when it comes to ensuring workers receive their salaries on time and are protected from abusive employers.

“Have we all been duped by Qatar over the last several years?” Qadri asked, suggesting that recent reforms might have been “a cover” for authorities allowing prevailing labor practices to continue.

The World Cup will start this November in Qatar.

Additional reporting by the Associated Press.

: newsy.com

View

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

The Meaning Behind Pope Francis’ Meeting With Transgender People

Some say Pope Francis’s meeting with transgender people may not translate into doctrinal change, but it could lead to cultural acceptance.

Father James Martin has taken his message of prayer and inclusivity just about everywhere, from “The Late Show with Stephen Colbert” to the halls of the Vatican.

In May, he wrote to Pope Francis with a few questions.

“I just wanted to give him a time to briefly talk to LGBTQ Catholics,” Martin said.

Francis has extended apologies to the abused and a welcome to the historically rejected. According to the Vatican News, he recently met with transgender people near Rome, Italy.

So Martin’s questions aren’t so random.

“I asked him, ‘What would you most like them to know about the church?'” Martin said. “He said, ‘Read Acts of the Apostles,’ which was really interesting because there’s a church that’s kind of mixing it up. Then also, ‘What would you say to an LGBTQ Catholic who felt rejected by the church?’ And he said very interestingly to remember that it’s not the church that rejects you, the church loves you, but it might be individual people in the church.”

It isn’t the first time Francis has corresponded directly with Martin on LGBTQ relations or the first time he has spoken up about their place within the Catholic church.

In 2016, Francis agreed the church should apologize to not only gay people but other marginalized groups, like the poor. He’s also called for parents to accept their LGBTQ children.

Francis’ gestures are one thing; changing church doctrine, which teaches that the act of homosexuality is sinful, is another.

“What would have happened really, in a sense, is for theologians working together, along with church officials, to come to some newer understanding of how they can accommodate for older church teaching on these issues, to show that the church evolves rather than dramatically changing,” said Michele Dillon, professor of sociology at the University of New Hampshire. “Because the church is not going to say, ‘Oh, we were wrong.’ It’s very rare.”

“If he were to do that, which I don’t think Pope Francis will, but if he were to do that, he would not want to do it without support from the Curia and the College of Cardinals,” said Cristina Traina, professor of Catholic theology at Fordham University. “He would not want to do it without tracing a pathway theologically.”

Instead, Francis has gone another direction: one met with both criticism and praise, uplifting LGBTQ Catholics while simultaneously reiterating church doctrine.  

NEWSY’S AMBER STRONG: Is he sort of riding the line between saying that this is doctrine, and doctrines not going to change. But, we also still need to love and affirm people as well?

FATHER JAMES MARTIN: I think that’s a good question, and I think he is kind of trying to straddle that line. But I think one thing to remember is that what seems very bland and tepid in the United States — overseas is a big deal. In the U.S., we might say, ‘Oh, big deal. Of course, you should welcome your kids.’ If you’re in Eastern Europe or sub-Saharan Africa or Latin America or India, that’s a big deal. So, we have to remember that he’s speaking to the whole church.”

According to Pew Research, 76% of U.S. Catholics say society should be accepting of homosexuality. That’s below the rate of Catholic support in countries like Spain and the Netherlands but far higher than places like Lebanon and Nigeria.

Some theologians argue that Francis’ support could have a trickle-down impact on individual Catholics and parishes.

“These things can do a lot to encourage Catholics to embrace LGBTQ people with love and compassion and mercy and not to see them as the Antichrist, the anathema, the enemy of salvation,” Traina said.

In 2021, a group of catholic leaders, including a cardinal and archbishop, signed a statement calling for widespread support of at-risk LGBTQ youth. According to an NCR analysis of recent listening sessions among U.S. Catholics, there was a growing call for LGBTQ inclusion and more opportunities for women.  

“To me, there’s no such thing as an empty gesture because, yes, many times people want to see more clear cut evidence of change and of their acceptance within the church, but sometimes it’s in small steps,” Dillon said.

In 2021, Martin, a Vatican appointee under Francis, launched Outreach: a website that provides resources to LGBTQ Catholics and leaders. It’s an effort Pope Francis has encouraged.

“He hasn’t changed any church teaching,” Martin said. “I’m not advocating for any church teaching, but he’s advocated a more pastoral response, listening to them, welcoming them, treating them with the respect.

: newsy.com

View

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

Biden Administration’s Bid to Cap Russia Oil Prices Faces Resistance

WASHINGTON — The Biden administration’s push to form an international buyers’ cartel to cap the price of Russian oil is facing resistance amid private sector concerns that it cannot be reliably enforced, posing a challenge for the U.S.-led effort to drain President Vladimir V. Putin’s war chest and stabilize global energy prices.

The price cap has been a top priority of Treasury Secretary Janet L. Yellen, who has been trying to head off another spike in global oil costs at the end of the year. The Biden administration fears that the combination of a European Union embargo on Russian oil imports and a ban on the insurance and financing of Russian oil shipments will send prices soaring by taking millions of barrels of that oil off the market.

But the untested concept has drawn skepticism from energy experts and, in particular, the maritime insurance sector, which facilitates global oil shipments and is key to making the proposal work. Under the plan, it would be legal for them to grant insurance for oil cargo only if it was being sold at or below a certain price.

Mike Salthouse, global claims director at The North of England P&I Association Limited, a leading global marine insurer. “If you have sophisticated state actors wanting to deceive people, it’s very easy to do.”

He added: “We’ve said it won’t work. We’ve explained to everybody why.”

That has not deterred Ms. Yellen and her top aides, who have been crisscrossing the globe to make their case with international counterparts, banks and insurers that an oil price cap can — and must — work at a moment of rapid inflation and the risk of recession.

“At a time of global anxiety over high prices, a price cap on Russian oil is one of the most powerful tools we have to address inflation by preventing future spikes in energy costs,” Ms. Yellen said in July.

The Biden administration is trying to mitigate fallout from sanctions adopted by the European Union in June, which would ban imports of Russian oil and the financing and insuring of Russian oil exports by year’s end. Britain was expected to enact a similar ban but has not yet done so.

not solve the world’s oil supply problems. European officials, who have been skeptical, continue to say they are analyzing its viability.

restricted natural gas flows to parts of Europe in retaliation for sanctions, would curb oil exports because of their importance to its economy.

senior fellow at the Atlantic Council who works in the financial services industry, said of Russia’s cooperation with a price cap. “If that were the case, he wouldn’t have invaded Ukraine in the first place.”

But proponents believe that if the European Union bans insurance transactions, an oil price cap may be the best chance to mitigate the economic fallout.

John E. Smith, former director of the foreign assets control unit, said the key was ensuring that financial services firms and maritime insurers were not responsible for vetting every oil transaction, as well as providing guidance on complying with the sanctions.

“The question is will enough jurisdictions agree on the details to move this forward,” said Mr. Smith, who is now co-head of Morrison & Foerster’s national security practice. “If they do, it could be a win for everyone but Russia.”

Matina Stevis-Gridneff contributed reporting from Brussels.

View

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<

As Russia Chokes Ukraine’s Grain Exports, Romania Tries to Fill In

Stopping at the edge of a vast field of barley on his farm in Prundu, 30 miles outside Romania’s capital city of Bucharest, Catalin Corbea pinched off a spiky flowered head from a stalk, rolled it between his hands, and then popped a seed in his mouth and bit down.

“Another 10 days to two weeks,” he said, explaining how much time was needed before the crop was ready for harvest.

Mr. Corbea, a farmer for nearly three decades, has rarely been through a season like this one. The Russians’ bloody creep into Ukraine, a breadbasket for the world, has caused an upheaval in global grain markets. Coastal blockades have trapped millions of tons of wheat and corn inside Ukraine. With famine stalking Africa, the Middle East and elsewhere in Asia, a frenetic scramble for new suppliers and alternate shipping routes is underway.

barge that had sunk in World War II.

Rain was not as plentiful in Prundu as Mr. Corbea would have liked it to be, but the timing was opportune when it did come. He bent down and picked up a fistful of dark, moist soil and caressed it. “This is perfect land,” he said.

67.5 million tons of cargo, more than a third of it grain. Now, with Odesa’s port closed off, some Ukrainian exports are making their way through Constanta’s complex.

Railway cars, stamped “Cereale” on their sides, spilled Ukrainian corn onto underground conveyor belts, sending up billowing dust clouds last week at the terminal operated by the American food giant Cargill. At a quay operated by COFCO, the largest food and agricultural processor in China, grain was being loaded onto a cargo ship from one of the enormous silos that lined its docks. At COFCO’s entry gate, trucks that displayed Ukraine’s distinctive blue-and-yellow-striped flag on their license plates waited for their cargoes of grain to be inspected before unloading.

During a visit to Kyiv last week, Romania’s president, Klaus Iohannis, said that since the beginning of the invasion more than a million tons of Ukrainian grain had passed through Constanta to locations around the world.

But logistical problems prevent more grain from making the journey. Ukraine’s rail gauges are wider than those elsewhere in Europe. Shipments have to be transferred at the border to Romanian trains, or each railway car has to be lifted off a Ukrainian undercarriage and wheels to one that can be used on Romanian tracks.

Truck traffic in Ukraine has been slowed by backups at border crossings — sometimes lasting days — along with gas shortages and damaged roadways. Russia has targeted export routes, according to Britain’s defense ministry.

Romania has its own transit issues. High-speed rail is rare, and the country lacks an extensive highway system. Constanta and the surrounding infrastructure, too, suffer from decades of underinvestment.

Over the past couple of months, the Romanian government has plowed money into clearing hundreds of rusted wagons from rail lines and refurbishing tracks that were abandoned when the Communist regime fell in 1989.

Still, trucks entering and exiting the port from the highway must share a single-lane roadway. An attendant mans the gate, which has to be lifted for each vehicle.

When the bulk of the Romanian harvest begins to arrive at the terminals in the next couple of weeks, the congestion will get significantly worse. Each day, 3,000 to 5,000 trucks will arrive, causing backups for miles on the highway that leads into Constanta, said Cristian Taranu, general manager at the terminals run by the Romanian port operator Umex.

Mr. Mircea’s farm is less than a 30-minute drive from Constanta. But “during the busiest periods, my trucks are waiting two, three days” just to enter the port’s complex so they can unload, he said through a translator.

That is one reason he is less sanguine than Mr. Corbea is about Romania’s ability to take advantage of farming and export opportunities.

“Port Constanta is not prepared for such an opportunity,” Mr. Mircea said. “They don’t have the infrastructure.”

View

>>> Don’t Miss Today’s BEST Amazon Deals! <<<<