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...that the state should try to get its budget mess in order first. There are good reasons for the Treasury not to rush to California's aid. If it backstops Sacramento, rewarding the state's bad behavior, it would set an example for other states to follow. A nightmare scenario: the Federal Government backs California's loans, which leads to a downgrading of the Treasury's credit rating and the unnerving of the global credit markets. Spooked, the Chinese government, which currently bankrolls a large portion of the U.S. deficit, decides to take its money elsewhere. The ripples from California...

Author: /time Magazine | Title: Can the U.S. Afford to Let California Fail? | 6/19/2009 | See Source »

...peter out. By so doing, Khamenei would hope that the pragmatic conservatives - embodied by Mousavi - can be weaned away from the reformists (led by former President Mohammed Khatami) by giving them a stake in a national unity government and assurances of moderating Ahmadinejad's style of governance. However, that scenario would come into play only if Mousavi believed he was losing the battle and risked disaster by keeping his supporters out in the streets. Right now, there are no signs that the opposition feels beaten. (Mugabe's opponents settled for the deal only when they had been so pummeled that...

Author: /time Magazine | Title: Iran: Four Ways the Crisis May Resolve | 6/18/2009 | See Source »

...decades, winters in the Midwest have warmed by a few degrees, and the number of winter days without frost has increased by about a week. Sea levels have already risen by 8 inches or more in some coastal areas of the U.S., and under the business-as-usual scenario, they could rise 3 to 4 feet by the end of the century - enough to put much of Florida, including the Everglades and the Keys, under water. "Much of the foot-dragging on addressing climate change reflects the perception that it is way down the road and only affects remote parts...

Author: /time Magazine | Title: Climate-Change Report: From Bad to Worse | 6/17/2009 | See Source »

...even had a nightmare scenario yesterday," a senior European diplomat said the day after the meeting with Burns and Ross in March. If a moderate were elected and negotiations with Iran still went nowhere, how would the U.S. and Europe stop Iran from going nuclear? With its centrifuges spinning, Iran could continue to amass enriched uranium while presenting to the outside world an openness to compromise, the diplomat explained. When it came time to confront a stalling Iran by dropping the carrots and applying the sticks, said the senior European diplomat, "Try to imagine how difficult it would...

Author: /time Magazine | Title: White House on Iran Election: A Diplomatic Plus | 6/15/2009 | See Source »

Still, in addition to his power over domestic and economic policy, the Iranian President is the face for the country abroad. And in that respect, a victory by Mir-Hossein Mousavi would have presented a worst-case scenario for Western efforts to curtail Iran's nuclear program, senior Administration officials said Sunday. He would have presented a softer, less confrontational face to the outside world. And he would have been able to stall even before he entered into negotiations with the excuse of taking all summer to get a new Cabinet and negotiating team in place...

Author: /time Magazine | Title: White House on Iran Election: A Diplomatic Plus | 6/15/2009 | See Source »

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