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Year over year rise in prices in January 2022 that contributed significantly to inflation of 7.5% in the US are-

For power up by over 10%, gas prices up over 20%

For groceries bakery, cereals etc up by 1.4%

For housing prices up by over 4%.

For used cars over 40%, new cars over 12%.

Health care services costly in the US far above the other OECD countries not down significantly continuing to burden American households.

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This editorial in the WSJ commends Congress for the $2 trillion U.S. aid package for households, small business and large corporations to keep workers on payroll, and aid to hospitals. It also commends the Federal Reserve for swift action to maintain liquidity in all corners of money markets. It was important to prevent a run on money market funds and municipal bond funds. The U.S. Senate bill adds $454 billion for Treasury that can support further Fed action if needed. This has also resulted in a recovery in the stock markets. The editors of WSJ caution Treasury from intervening too far up the risk curve to help companies that had overleveraged themselves with risk before coronavirus hit. It makes clear that the U.S. central bank the Fed should only offer liquidity against good collateral to companies that were healthy before the shock. As president  Trump never tires of telling listeners to his daily briefings from the Brady room in the White House- Boeing and the airlines were healthy before coronavirus hit. It was not their fault that coronavirus hit so suddenly. These companies deserve government help, says the president. By making the distinction between otherwise healthy companies and companies that overleveraged themselves on their own, the Fed, Treasury, and the U.S. government can get more bang for the buck. The WSJ editorial also says there is a bit of good news in the behaviour of politicians, media and the public in the way they are ignoring the trivial politics and self-centred behaviours, including indiscriminately being critical of the president, and focusing on the important matters that affect all our lives.  ...

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US president's sweeping powers to use tariffs as a tool for policy when American people's jobs, communities, health, is threatened by fentanyl and concentration of manufacturing jobs in China, unfair trade by EU and Japan, is the issue presented to the US Supreme Court. The US president presented it in this way- tariffs as a foreign policy tool, not a way to impose economic policy in the form of a tax on American importers or buyers which is the power allocated to Congress by the US Constitution. Justices who mentioned these powers called them sweeping powers but would not say the word fentanyl or look back at the recalcitrant behaviour of Asian nations Japan and China when it comes to unfari trading practices, where the US could literally negotiate forever and get no result, or to the enormous concentration of manufacturing power and supply channels in China that not only ships out American jobs but leaves Americans at the mercy of foreign powers for cost of living. Nowhere was this more evident as during covid years and now in rare earths export restrictions from China. The Justices assumed it was just alright to ignore this or leave it unsaid.  The cost to American buyers is small because most of the tariffs are borne by foreign suppliers in China, Japan and Germany, who as in the case of automobiles unfairly benefitted for decades and are now bearing most of the cost of tariffs. The large business in the US have increased their margins so much in the 2020-2024 period that they are now bearing some of the cost of the tariffs, as reported in WSJ. So that inflation in the US is at 3.0 % in the US less than anticipated, when average tariffs are at about 10% overall, not what the headlines say of 15-20% because of the product exceptions made in the tariffs for each nation. Justice Roberts may be right when he says more care should be exercized in the placing of a tariff, but even Roberts and Justices Barrett, Gorsuch, Kavanaugh and others know that the US has used this as a last resort, as a policy tool to protect the American people. Sweeping powers need care and caution as Justice Roberts stated- “power to impose tariffs on any product from any country in any amount for any length of time. It does seem like that’s a major authority."   ...

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U.S. GDP growth in the second quarter was at annual pace of 1.3% for the second quarter, down from the previous estimate of 1.7%, according to the Commerce Department. About half of this or 0.2% comes from the severe drought and drop in farm inventories, with crop production declining by $12 billion. Macroeconomic Advisors now estimates GDP growth of 1.5% for the third quarter of 2012, down from 2%. The drought continues in 65.5% of the U.S., according to U.S. Drought Monitor. Consumer spending and business investment is sluggish. The drought impact is likely to take out one tenth of GDP growth for the fourth quarter 2012 and 1st quarter 2013, through the impact of higher food prices and lower real incomes and wealth.

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By settling for a 15% tariff Japan was protecting its other industries from the higher tariff of 24-25% proposed earlier. US industry has operated with no assistance from the US government and faces a financial markets structure in the US that is not helpful to American industry making long term investments that overseas makers with support from their governments are able to make. US workers suffered badly over three decades and the ineptitude of previous US presidents in protecting American workers from this situation. The Europeans and the Japanese, South Koreans know this and understand that the US plays the critical role in the free world and without it, without the workers and rural communities of the US, their way of life and freedom will suffer irreparable harm. Japanese PM Ishiba and its business organization Keidanren are focused on implementing the US Japan Trade Agreement mitigating any effects inside Japan. Japan was able to protect it's auto export model to the US from high tariffs settling for a moderate tariff of 15%. A similar agreement was accepted by Germany when Leyen accepted the 15% tariff on German car export model. For decades Germany and Japan have used their auto export model to take a large share of the US market, joined by Korean makers, putting American car makers and their workers at a disadvantage since the 1980's. This creates a level playing field in world trade and is in the interest of workers in the US. ...

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The Editorial Board of the WSJ points out the differing opinions on the Ukraine conflict in the Republican party. It says the benefits to the US far outweigh any costs. It also describes the oversight over use of the funds given as military or humanitarian aid assistance.

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The French refusal to make concessions on subsidies to farming for a new trade accord comes from cultural and emotional factors. Food is important in France, and farming and quality farm product is take quite seriously. One reason is the varied climate which is very conducive to different kinds of farming, dairy, cheese, grapes and wine, olives, wheat depending on the climate. Compared to US and Britain, France is serious farming country in an emotional and cultural sense, and different regions have their own best farming product. Historically also France has protected its farmers and farm products, both during the monarchy when farmers were seen as a conservative element and late nineteenth century with high tariff walls, and after the Second War when a common program to support farming was written into the founding treaty. Useful information: France has 26,000 local farmers markets vs 500 in the UK. The regional focus for farm products has a term: terroir. Farm unions are amazingly well organized and command widespread support, upto the point that a former trade minister says "the politicians are frightened." One could say farming is part of the French culture....

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Both the EU and US see another wake up call from China's position of on again off again diplomacy using rare earth as a bargaining chip. US and China separately and in coordination work to develop policy and actions to secure access to rare earth and technologies that is independent of China. China sees it's action on rare earth diplomacy as robust diplomacy in response to DJT tariffs, yet this is getting the US to move quickly to develop its own rare earth access including working with Australia, and taking action to support US industry. The European Union is not far behind in doing the same. This and the action taken by the US to restructure world trade for a level playing field, and getting Asian partners to acknowledge their abuse of the international trading system for two decades and accept some level of temporary tariffs is changing world trade. The US can regain the position it has held for the better part of the period 1900-2000, overcoming periods that included the rise of Russia and Japan after 1945. ...

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A farming family at Misty Brook Farms in Albion, Maine realizes how suddenly you find contamination from forever chemicals in the soil. You can't see this, can't feel or taste it, say farmers in Maine. Some time in the past sludge from waste water treatment plants in Maine was used as fertilizer for the soil without realizing the danger of toxic chemicals such as PFAS, called forever chemicals. This story in the WSJ shows the damage it is doing to agriculture in Maine and other parts of the US.

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Applied Materials, a maker of machines that make computer chips, will invest $4 billion over 7 years in a new research center in Sunnyvale, California. Part of this investment comes from federal subsidies in president Biden's CHIPS Act to increase American semiconductor production inside the US. The investment will create jobs for 2000 engineers. The idea is to build an ecosystem for research and experimentation in Silicon Valley close to other research centers and universities so that the cost of production can be brought down with the access to latest technologies in usable form.

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Unions represent 10.1% of wage and salary workers in the US in 2022, down from 10.3% in 2021. Unions added 273,000 workers in 2022, increasing by 1.9% to 14.3 million. Only a small fraction of workers in the private sector are unionized, 6% of 120 million workers or 7.2 million workers. In the public sector 7.1 million or 33% of 21 million workers are represented by unions. Unions won the ability to represent workers in 1041 of 1363 elections held in 2022. In Jan 2023 workers at Microsoft voted to form a union.

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Following the visit of German chancellor Scholz to London and the missile attack on Kramatorsk train station evacuation point near Donbas, the Guardian has this to say about the new dilemmas facing western leaders. It says there are differences between Czech Republic, Slovakia and Germany, Britain about which weapons to send to Ukraine. As the war take on a new phase in the east near Donbas region and south near Crimea, The Guardian says US and European leaders are faced with new decisions on weapons support for Ukraine and ways to end the war through some form of negotiated settlement.

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Discussions between president Ramaphosa of South Africa and DJT center on protecting South Africa's Afrikaaner minority. DJT has protested expropriations of Afrikaaner farms by the govenrment. It also will include trade and efforts to stabilize South Africa's economy which needs US cooperation. Afrikaaners are the Dutch minority that ruled South Africa after the Boer War of 1900 ceded authority from the British to Afrikaaners. South Africa developed a multi racial state after the collapse of Apartheid segregation in 1994, yet the country has faced shortages of energy, mismanagement and minority rights issues since 1994.

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This Editorial in Le Monde says the French president faced a contradictory challenge he did not quite resolve and which gets worse in his second term. He has called for dissolution of the National Assembly as a result. That challenge was to reduce he far right vote but he had done little to implement a policy that would remove the causes of people supporting the far right. It is not only immigration. Immigration has also been tackled across Europe by agreement across all parties to keep out migrants. The lingering issues of worker discontent stem from struggles to make a living during cost of living crisis, and this is true across Europe and also in the US, even in India in the last elections. The other issue is loss of manufacturing that has led to deindustrialization and affected standards of living across Europe and the US. Small and midsized towns in France and in Europe have suffered from the stress of loss of manufacturing and public services without the local revenues to build better living spaces and communities. The policy to reverse this has started in the US, and requires more investment across Europe in infrastructure and public services, timely delivery, so that people across France and Europe can see the results in their daily lives. This then is the challenge for France, and for Germany, and for Europe. It is also the challenge in the US and in India. ...

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Izzo looks at the diverging picture presented by two Labor Department surveys of unemployment in the U.S. for July 2012- an increase of 163,000 jobs or 195,000 fewer people working. One, the Household Survey is based on survey of individual households counts people and the other the Establishment Survey based on a survey of employers counts jobs. If one person holds two jobs he would be counted twice in the Establishment Survey and once in the Household Survey. If a person is a unincorporated self employed person, a family employee who isn't paid, a farm worker who is employed but not paid he is counted in the Household Survey, but left out in the Establishment Survey. The Labor Department prepares a third measure of the number of people working by adjusting for multple jobholders and for workers not counted in the survey of businesses. By this third measure the U.S. economy added 108,000 jobs in July, which is far less than the 163,000 jobs shown added in the Establishment Survey. Because of the increase in parttime work it is likely that more people are doing multiple jobs which may explain some of this difference. Another reason could be the severe drought in the U.S. that may be reducing the opportunities for work for freelance construction maintenance and day laborers because of restrictions on water use. This shows that it takes several months of data to get some sense of where unemployment is headed, adjusting the numbers for unusual events or weather, and looking behind the numbers to the sectors generating jobs. In the first quarter of 2012 more jobs were generated in the U.S. because of a mild winter, followed by fewer jobs in the second quarter, which required looking at the two quarters together to get a better picture. Adjusting for the long term unemployed who have quit looking is also necessary to get a correct reading of U.S. unemployment levels....

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Increasingly hospitals in the U.S. are buying independent medical practices of physicians and writing the contracts in their favor. This is part of a general consolidation of health care services in the U.S. In 2012 about 39% of physicians are in independent medical practices compared to 50% in 2000, according to consulting firm Accenture.

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One day in 1964 Oxford mathematician Roger Penrose decided that an impossible object could actually exist - a black hole in the galaxy after a planet collapses.Einstein's theory of relativity had predicted that when stars collapse they could form infinitely dense points of matter that no light would be allowed to escape. The formation of black holes supports Einstein's Theory of Relativity says the Nobel Prize Committee. Penrose is 89 and says it is good to get the Nobel Prize when one is good and old. Stephen Hawking a younger physicist passed away and was not included in the prize after supporting Penrose's work. Two astronomers in the U.S. at UCLA, Los Angeles, get a quarter of the prize for their work detecting black holes in the sky and providing evidence of a super massive black hole in the center of our galaxy. Pennrose says "If you have got grand ambitions its bad to get a Nobel Prize too early, it gets in the way of your science." ...

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Increasingly complex political coalitions are away centrist parties of the establishment have maintained power in Europe. Traditional political parties on the right allied with business and working class parties allied with organized labour are replaced by a fragmented landscape with parties emerging at the far right and far left. This is also a result of the deep recession following the global financial crisis of 2009, changes in international trade and globalization that have increased inequality, and the migration crisis in Europe.  In Germany and Netherlands centrist parties have formed coalitions to remain in power. In France and Italy mainstream socialist parties suffered defeat, in France to a newly formed party by Mr. Macron, and in Italy to a party started by a comedian Beppe Grillo called the Five Star Movement which allied with the Northern League party at the far right. In Spain's general election in 2019 the Socialists showed a new trend of going back to their roots as working class parties. By addressing minimum wage and other issues relating to equality the Socialist party in Spain increased its share of the vote by 6% to 29% in 2019 elections. Previously in the last 2 decades the Socialist parties had moved away from their focus on equality towards economic efficiency. The tradeoff between equality and economic efficiency moved away from equality in Europe and the U.S. during the last 3 decades,leaving Socialist parties exposed to losing some of their working class base to new parties formed to address today's issues of fairness and social justice.   ...

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What is the difference between South Korea and the U.S., Europe in the handling of coronavirus? It is tracking and testing.  President Trump and health adviser Dr. Fauci, see South Korea as the successful model to be followed in controlling the coronavirus. What has happened till now it is accepted with shortage of basic medical supplies and equipment, stress on hospital systems, are merely mitigation actions. South Korea was prepared for the coronavirus crisis because of the MERS and other epidemics, and failures resulting in corrective actions. Labs were centralized and better equipped for testing and tracking the infected. One of the key tools is testing. President Trump says the goal is for the U.S. to exceed and far surpass tests per capita in South Korea. Five million tests are planned by the end of April in the U.S. Where the U.S. falls short is in use of multipronged digital tracking using data from people's use of mobile phones, credit card usage, and use of apps designed to separate infected people from others. South Korea is a democracy with a population of 52 million people, about the size of France. People who were student activists in the democratization era in South Korea say the use of digital technology is a need today. We have to adapt in emergency situation they say. Ki Mo-ran, epidemiologist, and adviser to South Korean government says this is a key part lacking in the European and U.S. efforts to control coronavirus. She says in South Korea we know the patient's contacts, where he goes and stays, so we don't have to lock down everybody. Without digital tracking one cannot know which place is contaminated, which place is clean, so that there can be a lockdown of just that area and not the whole country, says Ki Mo-ran. She asks the question- is one person's privacy more important than the lives of a family or other people who are affected. Is it OK to lockdown every child in the country in a home as in Spain for over a month so that particular people's privacy is respected? These are serious questions for western society, are they exceptions or is democracy not just a western idea but equally cherished in Asian societies, people talk about Confucianism in China and the Asian culture forgetting that the biggest democracies are quite large and functioning well in India in addition to South Korea, Taiwan Indonesia, Malaysia, Bangladesh and Japan, far larger in area and population than China. The French government has chosen the app TraceTogether as the least intrusive one adaptable to France for use there. The U.S. is having Google and Apple develop one of its own. India will be developing one of its own. The NYT raises the question will it be watered down so much in France or in the U.S. and UK to be less effective than the  dire need for an alternative to lockdowns? ...

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Progressive caucus in the US House of Representatives led by Pramila Jaypal, a first time Indian American Congresswoman defeats an attempt by Josh Gottheimer of the Problem Solvers caucus to separate much of the president Biden's agenda in health, education and social policy and risk it being defeated by Senators Manchin and Sinema in the US Senate. Without the efforts on child care, education and health, climate change and social services part of the Biden Workers and Families Plan much of the Biden agenda would remain unfinished and Democratic party promises not kept. This also means that Manchin a Senator from West Virginia with a population of 1.8 million and Arizona with a population of 7.2 million, both conservative leaning Democrats could sink the entire agenda of president Biden to support American families and workers for a population of 331 million people. That two states with a population of less than 3% of the American population could sink the entire agenda of president Biden shows how fragile a situation has been created within the Democratic party to support workers and families even during the pandemic following the leadership of Carter, Clinton, and Obama Ms. Jaypal, a three term Congresswoman from Seattle, Washington state, was first elected in 2016 with an endorsement from Bernie Sanders who was the Democratic Party's leading candidate for president till the late stages of the 2020 US presidential primaries. Bernie Sanders says of Jaypal- "I think she is doing an extraordinary job. And I think the Progressive Caucus is doing an extraordinary job." Sanders founded the Progressive caucus after getting elected to the Senate from Vermont 30 years ago. Even though it is hard to imagine the Democratic party being the Democratic party without bold policies in climate change, affordable housing, reducing income disparities,  investing big in childcare, education and healthcare, attempts were being made to sink the entire Democratic party and national agenda going back to Franklin Roosevelt. Jaypal is described in the WSJ as diplomatic and firm, saying "I am so proud of our caucus; I have never seen our caucus so strong. And I am a very good vote counter also." Fifty members of the 100 member Progressive Caucus held firm in support of president Biden's original agenda without which the president would have little to show in keeping promises he made to the American people in the election and little to differentiate him from Mr. Trump who also supported infrastructure spending. Separating the infrastructure bill would have risked sinking Mr. Biden's plan for recovery of America from the pandemic and the devastating policies pursued by American presidents in the last two decades. Policies by previous presidents that have impoverished the country, created huge income disparities, weakened America in the world in trade and technological leadership, and wasted resources in foreign wars. There are no centrists or far left- these are just labels. When Ms Japal said "Let's just remember the Speaker (Nancy Pelosi) is a great champion of this agenda. I think she was trying to do as much as she could to get this done," she could have said it is Mr. Biden's own agenda pushed forward with conviction to help workers and families during the pandemic, and build a solid American recovery, restore American leadership in the world. Pramila Japypal is the first Indian American woman in the US Congress, and one of only two dozen naturalized American citizens in the US Congress. That she could play such a critical role for good in the US Congress shows that with the right convictions, determination, experience, much can be done for the common good in America and the world.   ...

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The Wall Street Journal looks back at president Trump's first year in office from the inauguration speech to the passage of the new tax law. Race and immigration issues form the background of much of the domestic politics as Democrats prepare to shutdown government by December 2017 over a comment by the president. This happens during a meeting between the two parties on the Dreamer legislation to allow children of people illegally in the U.S. to stay in the country, when the president makes a derogatory remark about immigrants from Haiti and says he prefers immigrants from Norway. Efforts to repeal the Obama healthcare legislation fail during the first year. Democrats win a Senate seat in Alabama. A special counsel, Mr. Mueller, is appointed to investigate the Russian meddling in the U.S. presidential election. The tax law is skewed towards more tax cuts for the wealthy than the middle class, with the increase in the deficit not justifying the cut as infrastructure and other needs in health and education require funding. In international affairs Trump recognizes Jerusalem as the capital of Israel, and takes a strong stand on Iran and North Korea.    ...

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The Berman Amendments are what is seen by the Biden administration as well as the previous Trump administration as preventing the US government from regulating or restricting foreign apps, including TikTok. What are these Berman Amendments? They were introduced as legislation by Mr. Berman who represented the Los Angeles District in 1988, that includes the entertainment industry, who now works for a law firm that is representing TikTok, according to this WSJ report. The Berman amendments took away the powers of the president of the US to ban the import of "informational materials" from adversarial nations, later in 1994 it was added to include "digital media." It is now seen in the US Congress as coming from another era the end of the Cold War and needing to be completely rewritten. 

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Canadian prime minister Trudeau met with DJT at Mar-a-Lago. DJT said Mexico and Canada are not doing enough to stop flow of drugs in particular fentanyl into the US, and undocumented migrants. Trudeau said "when Donald Trump makes statements like that. He plans to carry it out." For Canada many dubious and questionable policies on immigration under Trudeau can be corrected. It has the most at stake as it exports $423 billion of goods to the US and 2 million people are employed in these exports. For a long time Mexico and Canada have remained insensitive to how policies led to harm for the American people, in ways that are unprecedented in American history and since the settlement of the North American continent.

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President Trump signed the Hong Kong Human Rights and Democracy Act passed with near unanimous support by the U.S. Congress. The original U.S. law on Hong Kong passed in 1992 requiring yearly reports on the autonomy of Hong Kong for it to get the "special status" granted to it. This requirement for yearly reports expired in 2007. This requirement is now reinstated. The law signed by Mr. Trump requires the State Department to certify Hong Kong' autonomy annually. The WSJ describes it as a "grim trigger" strategy" which would cause damage to Hong Kong capital markets and is of a magnitude that makes it less likely to be used. Mr. Trump pointedly remarked that he had signed it "out of respect for Mr. Xi, China and Hong Kong," and Mr. Trump has shown respect so far for the protesters but also shown respect for Mr. Xi and China in the middle of the unending nature of the protests. The new Act does not give Mr. Trump any additional powers than he already has. It only changes one aspect of relations- it makes Hong Kong relative autonomy a part of permanent high level issues in China - U.S. relations, including trade and Hong Kong's status as financial center. ...

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Garlic, ginger, turmeric and similar products are vital for healthy living and healthy food. So it is surprising that so little has been done before the Trump tariffs on Chinese food dumped in the U.S. This BBC report by Pamela Parker says 1994 was when the U.S. confirmed dumping by China of garlic yet the tariff that was placed was of an ineffective type that could be circumvented. As a result the U.S. producers such as Vessey in California that produced garlic for 100 years and 5 generations decided to not produce it beside cauliflower and cabbage. Of the surviving producers one producer today in California produces 100 million pounds of this product that has value way beyond the actual dollars as vital for healthy food supplies in the U.S. In fact after reports of contaminated water supplies in China imports of ginger and other such food products have been shifted away from China.  It is well known that the industrial revolution in China came too quickly and at a large cost to the environment after 1990 including contamination of the water, rivers. For this reason it is stunning that the people setting trade policy in Washington could have ignored the vital need of U.S. meeting food needs for healthy living out of its own soil and trusted farming community. To not have done so and let producers of garlic or ginger or other such vital food products to sustain health to go out of business is nothing less than a part of the growing calamity of self inflicted wounds that have happened so far. At no time more compelling an issue as today in the pandemic. The truth is that when it comes to healthy food supplies it is vitally important, as important as national security. And local supplies grown in one's own state or country particularly for vegetables, herbs, and fruit, are very critical. There is no way to even compare product grown locally to product grown in any country where water supplies may be contaminated by rapid industrial growth. ...