World news recap

If your summer consisted of mostly leisurely activities—lounging by the pool, barbecues, and working on your tan—then following the news may have not been a top priority. No worries if you're feeling some remorse for not being in the loop, a quick recap of the summer's news events will have you up to speed in no time! 

Economic Woes

The U.S.'s already wavering economy took another blow this August as its credit rating from Standard and Poors was downgraded from 'AAA' to 'AA+'. The downgrade was partly issued based on the squandering of political parties over economic policy in the House and Senate, referred to by the S&P as "political brinkmanship." Despite Congress's last minute compromise to raise the debt ceiling, the U.S. was still stripped of its bond rating as being one of the safest investments globally. As a result, the stock market plunged the following day, sporting a drop of over 600 points in the DOW, the lowest since November of 2008. The downgrade, no longer placing the U.S. economy in the same ranks of Canada, Germany, Britain, and France, is expected to raise the cost of borrowing for the U.S. considerably and raising interest rates accordingly. 

Presidential Contenders

With the 2012 Presidential Election looming ahead, potential Republican candidates scramble to establish their candidacy. The Ames Straw Poll in Iowa showed Michelle Bachmann as the winner with 4,823 votes, followed by Ron Paul and Tim Pawlenty. Despite his bronze victory, Pawlenty dropped out of the race the following day after the announcement of the Iowa Straw Poll results. Bachman's and Paul's success in the Ames Poll is fleeting in light of the slew of other emerging candidates. Notable contenders include Former Speaker Newt Gingrinch, Former Governor Mitt Romney, and Businessman Herman Cain. Incumbent President Obama has announced he will run for a second term.  

Unrest in London

 A police shooting of local gangster Mark Duggan ignited a series of riots in Tottenham, England. During early August, the rioting spread throughout Northern London resulting in considerable damage from looting, arson, and violence. The rioters cited political reasons for the uprisings. London police were forced to use plastic bullets to contain the rioting, a procedure usually not employed. Prime Minister David Cameron came home early from an Italian holiday to address the situation, cutting Parliament's recess short to begin emergency debates over the matter. As the rioting continued, the political and economic causes of the uprising were doubted and speculations over the rioters' true intent drifted to mob mentality motivation.