http://www.newsweek.com/id/170303

COVER: Fragile China (Asia edition). Hong Kong Bureau Chief GeorgeWehrfritz reports on how badly things are turning in China, where the globaleconomic downturn now looks certain to end the country's 30-year growth boom."With most industrialized countries now in recession and countries the worldover hoping against hope that the planet's most buoyant major economy mightsomehow dampen the global downturn, it's a forecast that increasingly ringstrue. The reasoning: China, despite its deep pool of savings and $2 trillionin foreign reserves, is unprotected from the fall in global demand that beganin earnest in mid-2008. Notwithstanding all the hoopla about the rise ofChina's billion consumers, the body blow that's now landing in the industrialheartland will debunk the notion that China has already begun transitioningtoward a new growth model based less on exports and investment and more onhousehold consumption."

http://www.newsweek.com/id/170305

He Called the Bust. Wehrfritz talks to Jim Walker, head of the researchfirm Asianomics, who warned two years ago that a global recession would endChina's 30-year boom. "By late 2006, we were seeing significant downturns inresidential investment [and] a drop-off in the way that it was financed, andwe knew that problems were building. And the yield curve had inverted [makinglong-term debt cheaper than short-term debt]. Putting this together we[concluded] that we were headed into a recession, and that it was going to bea pretty nasty one."

http://www.newsweek.com/id/170307

COVER: The Meaning of Michelle. (Latin America edition). NationalCorrespondent Allison Samuels profiles Michelle Obama and writes about herimpact on black women and beyond. "When her husband raises his hand to takethe oath of office, Michelle will become the world's most visible African-American woman," Samuels writes. "The new First Lady will have the chance toknock down ugly stereotypes about black women and educate the world aboutAmerican black culture more generally. But perhaps even more importantly-evenapart from what her husband can do-Michelle has the power to change the wayAfrican-Americans see ourselves, our lives and our possibilities."

http://www.newsweek.com/id/170383

The Rise of the Hindu Right. Special Correspondent Jason Overdorf writesthat upcoming elections in India could help usher an even more aggressivenationalist Bharatiya Janata Party (BJP) back into power, a big step backwardfor India as a whole. "The BJP hopes to capitalize on the bad economicconditions when voters head to the polls ... this month. While nothing'sguaranteed, many observers expect Congress to get trounced."

http://www.newsweek.com/id/170301

Israel's Dissident. Jerusalem Bureau Chief Kevin Peraino reports on thepotential reversal of fortune for Natan Sharansky, a former Soviet dissidentturned Israeli politician who could get a key job in the government ifBenjamin Netanyahu's Likud party does well in the February election. Sharanskyis a Likud ally and has an inside track to become foreign minister in aNetanyahu government. That would stand as a testament to Sharansky's abilityto reinvent himself.

http://www.newsweek.com/id/170304

Good to Be Grim. London Reporter William Underhill reports on how BritishPrime Minister Gordon Brown's Scottish roots and all of his stereotypicalScottish qualities are a blessing. In times of crises, thosequalities-especially an unsmiling air of moral purpose-now enhance his appeal.In the past two months, Brown's approval ratings have climbed 10 or morepoints to their highest levels since he moved to 10 Downing Street in June2007. And his soft-spoken Scottish chancellor, Alistair Darling, twice votedthe most boring politician in Britain-wins plaudits for his performance,giving credence to the idea that in a struggling economy grim is good.

http://www.newsweek.com/id/170302

POINT OF VIEW: Growth in the Rearview Mirror. Ruchir Sharma, head ofemerging markets at Morgan Stanley Investment Management, writes that "few ofus stopped to question the magical boom that hit virtually every country inthe world, beginning in 2003. There was some skepticism about the housing-ledgrowth spurt in the United States, but now it is increasingly apparent thatthe simultaneous acceleration from Brazil to India and even China was alsorooted in a global credit bubble. This is a particularly painful realizationfor the developing world, which came to believe that the boom was testament tothe power of globalization, increased urbanization and better macroeconomicpolicy management. While there is more than an element of truth in thosearguments, it's hard to escape the conclusion that the growth leap was mainlydue to easy access to cheap money."

http://www.newsweek.com/id/170309

WORLD VIEW: A Path Out of the Woods. Newsweek International Editor FareedZakaria writes about a crucial appointment in the Obama administration thatisn't likely to get much attention- U.S. Ambassador to China. "There is aconsensus forming that Washington needs to spend its way out of thisrecession, to ensure that it doesn't turn into a depression. Economists ofboth the left and right agree that a massive fiscal stimulus is needed andthat for now, we shouldn't be worrying about deficits. But in order to run upthese deficits-which could total somewhere between $1 trillion and $1.5trillion, or between 7 and 11 percent of GDP-someone has to buy American debt.And the only country that has the cash to do so is China."

http://www.newsweek.com/id/170357

THE LAST WORD: Olusegan Obasanjo, special envoy to help end the fightingin the Democratic Republic of Congo. Obasanjo says he confronted [rebelleader] Laurent Nkunda about the broken ceasefire. "I confronted him aboutthat and asked him, what is the world going to think of you? The ceasefiremust be respected, and we must get the Congo army involved and MONUC [the U.N.peacekeeping force] must be the guarantor. By Tuesday he began to respectthat, and now the ceasefire seems to be holding." He believes this one will bemore enduring because the Congo army is on board and "with MONUC, things arelooking better. We still have the problem of other militias, but for now atleast [the major parties] agree on some things."

http://www.newsweek.com/id/170355

SOURCE Newsweek