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Its not easy being Davos Man. Last year's master of the universe is this year's public enemy #1. Breaking the financial architecture, plunging the world into depression, mega-bonuses and ornate office furniture amid rising unemployment and home foreclosures; that's a lot to live down. Its no wonder the mood was so dismal on Mount Olympus last week.

-As first reported by The Cable last week, the US has been engaged in high level, "Track Two" discussions with Iran for the better part of a year, intensifying in recent months and including a number of individuals close to the Obama administration. The Iranian side has been led by Ali Asghar Soltanieh, ambassador and permanent representative to the IAEA. The talks have been conducted in European cities under the auspices of the Pugwash group. As The Cable notes, back channel talks have always occurred between the two nations (irrespective of public posturing), but these talks are significant in their attendance, timing, and frequency. While the nuclear issue is obviously the most pressing, talks have also focused on "how to move beyond the 1953 coup and 1979 revolution." This strikes me as a recognition by both sides that a window exists for a fundamental transformation of the relationship.

-Political violence is on the rise in South Africa. A string of high profile assassinations in Kwa-Zulu Natal reflect rising tensions in the province between ANC and IFP supporters. Meanwhile, Cope (the party formed out of the ANC split last year) leader Mosiuoa “Terror” Lekota issued his strongest criticism yet of the ANC and Zuma, claiming the party will push through immunity for the presidential favorite after the coming general election.

-Davos utterly failed its agenda: "shaping the post-crisis world". Chris Giles, Peter Thal Larsen, and Gillian Tett of the FT found the attendees united in their lack of confidence and inspiration.

Russian Prime Minister Vladimir Putin used his podium at the World Economic Forum to attack the dollar's supremacy, skewer Wall Street bankers, and call for a new global energy paradigm. He also layed the smack down on Michael Dell.

But it was his warning against excessive state intervention in response to the global economic crisis that really caught my attention. His statement was, um, interesting:

"Excessive intervention in economic activity and blind faith in the state’s omnipotence is another possible mistake."

Huh. Putin, excessive intervention, blind faith in state's omnipotence. I feel like these things are related.

- "The mood is going to be somewhat sober" at the Davos World Economic Forum this year, which starts on Wednesday. No kidding. In that vein, the WEF's opening speaker is someone not known for his overwhelmingly upbeat rhetoric: Vladimir Putin.

- John Hempton at Bronte Capital thinks we should stop fiddling around with metaphors and literally drop money from helicopters to induce inflation fears. Sure some people may accidentally die from the falling money packages, says John, but it might also induce consumer spending. Or, you know, cause foreign investors to dump all their US assets.

- A good discussion over at Free Exchange over whether the euro-zone is a modern day gold bloc - referring to the rigid constraints of the interwar gold standard that delayed economic recovery in 1930s Europe and beyond. The short answer is no, it is not. The takeaways:

"...because the break-up of the eurozone would involve unacceptable financial damage, the ECB and member governments are committed to the rescue of flailing national economies. Europe cannot allow Ireland or Spain to collapse, and so presumably, international capital will treat those states differently than they might Britain, which is stuck out there by its lonesome."

Moreover, the gold standard had no institutional equivalent of the ECB to help facilitate coordinated monetary easing - something that was a real sticking point. This doesn't mean the euro-zone is entirely in the clear, just that it has a set of challenges distinct from any historical precedent.

- Democracy woes from the pages of the WaPo: social unrest in Eastern Europe, and Bolivia's new constitution.