THE GLOBAL PAYMENT SYSTEM RULES EVERYTHING AROUND ME

As billed, US President Donald Trump blasted Iran yesterday in his General Assembly speech, calling on other nations to join Washington in further isolating the Islamic Republic. The ballgame for Trump, as we wrote yesterday, is to force Tehran to agree to a more stringent version of the 2015 Nuclear Deal that the US, alone among its seven signatories, walked out on earlier this year.


The biggest point of leverage that the US has is its dominance of the global financial system, which enables Washington to force European companies to abandon their investments in Iran, even as Brussels pledges, with little effect, to shield them from US measures. When the next round of US sanctions hits Iran in early November, the Belgian-based messaging system that banks use to send money around the world – called SWIFT – will be under intense pressure to cut off Iranian banks even though Europe is opposed to the sanctions. Why? Because refusing to play ball with the US could expose the executives that sit on its board – and the global banks they work for – to US sanctions.

On Tuesday, the Financial Times reported that the US’s main partners in the Iran nuclear deal, the UK, France, Germany, China, and Russia, had agreed to a different approach: establishing an alternative payment system that would allow them to keep doing business with the Islamic Republic despite harsh new US curbs. The details are TBD, but in theory, a rival European payment system could enable interested parties to continue doing business with the Islamic Republic (or anyone else under US sanctions), by routing transactions through an alternative to SWIFT. But here’s the problem: any companies or banks that did so would probably risk US sanctions anyway. It would be risky to assume that the US, at least under Trump, is bluffing on this stuff.

Those practical matters aside, the fact that historically close US allies are joining China and Russia in challenging the 800-pound US financial gorilla is significant. America’s adversaries have long bridled at the US’s outsized influence over the financial system, which gives it a unique ability to inflict economic pain on countries that it disagrees with politically. The fact that the UK, France, and Germany are actively pushing a plan to skirt the US sanctions is a sign of how the US’s more confrontational, America-first approach is creating strange bedfellows.

In 2012, the United States created the Deferred Action for Childhood Arrivals (DACA) program to protect these young people from being deported. Yet just five years later, the program was rescinded, putting close to 700,000 DACA recipients at risk of being banished from the only home they've ever known. More than five dozen of these DACA recipients at risk are Microsoft employees. These young people contribute to the company and serve its customers. They help create products, secure services, and manage finances. And like so many young people across our nation, they dream of making an honest living and a real difference in the communities in which they reside. Yet they now live in uncertainty.

Microsoft has told its Dreamers that it will stand up for them along with all the nation's DACA recipients. It will represent them in court and litigate on their behalf. That's why Microsoft joined Princeton University and Princeton student Maria De La Cruz Perales Sanchez to file one of the three cases challenging the DACA rescission that was heard on Nov. 12 by the United States Supreme Court.

Read more on Microsoft On The Issues.

Last week, French President Emmanuel Macron said that NATO was experiencing "brain death," citing a lack of coordination and America's fickleness under Donald Trump as reasons to doubt the alliance's commitment to mutual defense. NATO – the North Atlantic Treaty Organization – was formed in the wake of World War II as a counterweight against Soviet dominance in Europe and beyond. Its cornerstone is that an attack on one member is considered an attack on all. But disagreement about burden sharing has gained increasing salience in recent years. In 2014, the bloc agreed that each member state would increase their own defense spending to 2% of their respective GDP over the next decade. But so far, only seven of 29 members have forked out the money. Here's a look at who pays what.

In the predawn hours of Tuesday morning, Israel launched a precision attack in the Gaza Strip, targeting and killing a Palestinian Islamic Jihad (PIJ) commander. In response, the terror group fired more than 200 rockets at southern Israel. Exchanges of fire have brought cities on both sides of the Gaza border to a standstill and at least eight Palestinians are dead and dozens of Israelis wounded. With this latest escalation, Israel now faces national security crises on multiple fronts. Here's what's going on:

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More Brexit shenanigans: Britons this week saw Prime Minister and Conservative Party leader Boris Johnson endorse Labour Party leader Jeremy Corbyn in upcoming elections. As a special bonus, they got to see Corbyn return the favo(u)r with a formal endorsement of Johnson. Most viewers in the UK will have understood immediately that these are the latest example of "deep fakes," digitally manipulated video images. The more important Brexit story this week is a pledge by Nigel Farage that his Brexit Party will not run candidates in areas held by the Conservatives in upcoming national elections. That's a boost for Johnson, because it frees his party from having to compete for support from pro-Brexit voters in those constituencies.

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80: More than 80 percent of the electronic voting systems currently used in the US are made by just three companies, according to a new report which warns that they are regulated less effectively than "colored pencils."

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