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Germany is well known for its auto industry and machinery industries. It lags well behind other countries in its investment in internet infrastructure. Germany ranks 33rd worldwide in average monthly fixed broadband connection speeds, and 47th in mobile, according to Speedtest Global Index. The U.S. ranks No. 7 in fixed broadband and 37th in mobile. To get a sense of how far behind the U.S. and Germany are in mobile infrastructure and in average monthly mobile connection speeds consider Croatia is No. 9 and Canada is No. 3, Australia No. 4 in mobile. Consider in fixed broadband Romania is No. 4 and Hungary No. 10. What happened? In Germany strict fiscal rules prevented investment in infrastructure without considering how much good essential infrastructure can add to economic growth. There was a decade of disinvestment under Merkel in the country's infrastructure. Consider that Germany relies on copper for rather than glass fiber for linking end users to the fixed line network. Deutsche Telekom laced a strategy for investing in a new network in the last decade when early on in the decade Telecom companies inFrance ad Portugal were rolling out new all fiber networks in keeping with a 2010 European Union report that recommended EU countries invest in fiber. So that today after a decade of disinvestment in essential infrastructure Germany is finally waking up to the fact that its development is uneven at best and lopsided for certain with production facilities in cars and other machinery but failure to invest in the technology that drives machines and cars. Even the updating excuse given by Deutsche Telkom of vectoring or reducing interference sounds strange a decade ago as stated in this report, using the same cooper connections simply reducing noise, a failure of singular proportions to modernize. As a result some of the fastest connections are now in Singapore, Hong Kong, South Korea in Asia or countries such as Norway, Netherlands, Switzerland in Europe. ...

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This editorial in the WSJ says Obama's silence when it comes to the jailed opposition leader in Malaysia is one more silence when it comes to issues related to suppression of democratic freedoms. When this issue was raised in June the WSJ reports it drew the Obama comment: "democracy is hard." This is all the more astounding now says the Journal, after the WSJ report about corruption in the Najib Razak government related to the $700 million from a state owned investment bank. This editorial says about the record of the Obama administration on going silent when issues of freedom and suppression have come up from Iran in 2009 to many other events and Malaysia today- that this is one of the most puzzling aspects of the Obama presidency. It also points out this is is one of the most discouraging aspects of how the U.S. is seen in the world under the Obama presidency, when it comes to protecting freedom and freedom of speech and expression.

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Mexico's president Enrique Pena Nieto describes his plans for increasing economic growth in an interview with Lally Weymouth. He looks back at the changes made through the Pacto de Mexico in energy, education and telecommunications, and in other areas. Changes made will allow political parties to form coalitions after 2018 following a presidential election, to form a majority in the legislature so that new legislation can be passed. A new criminal code for the entire country will override a patchwork of laws in different states. Economic growth is a high priority after disappointing 2.6% growth in the last 3 years, with infrastructure projects planned- new airport for Mexico City, doubling port capacity, new rail lines and high speed rail line Mexico City to Queretaro.

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The protests for democracy continue in Syria in May 2011. On May 20 2011, 26 protesters are gunned down. The Assad government continues to crackdown on the protests. Friedman sees the events in Syria having wide reaching impact on the Middle East. He calls it a keystone nation because of relations with Iran, the Golan Heights, the Lebanese Shiite militia Hezbollah, the long border with Turkey, the border with Iraq, and Hamas relations with Syria. Compared to Egypt the international community has been for the most part silent in its support for the democracy protests in Syria. Friedman also asks the question about rival sects in Syria and other Arab countries and what happens afterwards. Would a post Assad period lead to people from rival sects putting aside differences and working together to build and sustain a democratic government. He says there is uncertainty but also that something deep down is coming to the top in the Arab world- that Arabs want to be full citizens of their countries with a voice in their government and in the way things are run in their countries. ...

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Browne describes the excessive focus on "hard" GDP targets in China and the results in wasteful spending and neglect of other vital indicators of development such as healthcare, education, environment.

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The U.S. Justice Department indictment of 5 Chinese military officers for hacking into computers of U.S. companies to get trade secrets. The hacking involved Westinghouse, U.S. Steel, and other companies.

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Local customs, tradition and history of development play a part in each region. This is the message from Islamist politicians who want to bridge the differences with the USA in the northwest frontier province of Pakistan. They want to keep some of their Islamic ways of life and still work with the US. These Islamic organizations are working to reduce the violence in the region and promote democratic discourse and electoral representation. This is happening amid widespread mistrust of the U.S. of all Islamist politicians. There are negative perceptions about things Western which are not automatically accepted in these highly tradition bound areas of Pakistan, especially the Afghanistan border regions. Some kind of rapprocement could bring peace to the region and cool growth of militants. Is there a basic misunderstanding of the area and are their other more gradual ways of bringing these areas into the mainstream. Of modernizing these societies over time so they gradually accept women's rights, education and development as opposed to the sudden onset of change. One sign - these areas need hospitals, they need roads and there is no disagreement about this. Once they see the benefits of development and militancy drops then it s easier for them to understand the benefits of schools for girls, women's rights, and education and all other development. Its like the American South trying to baccept negro rights after years of blatant racism, took some time but now some of the southern states can't even be recognized from what they used to be in their perception of black people....

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Prime minister Matteo Renzi focussed on some critical aspects of how other Europeans see the negotiations in the Greece bailout in June 2015. Considering that the EU had relaxed conditions for the surplus, a critical condition for reducing austerity programs in Greece and focussing on reforms, and considering the high unemployment not insisted on further cuts to the public sector employees, the conditions put forward focussing on reforms such as collection of taxes are seen as essental by other eurozone countries, including Spain, Portugal, Ireland and Italy. Renzi told II Sole 24 Ore- "The point is that Greece may get different conditions, but it has to abide by the rules. It's not the case that we have taken early retiremnt pensions away from the people of Italy just to allow the Greeks to have them! We have brought in labor reform, but it is not the case that, with our money, a number of Greek shipowners can continue not to pay taxes.. I could go on." If he went on he would cite the tax collection laws and methods in Italy which were changed under prime minister Monti to tackle tax evasion in Italy, with no effort to collect the $11 billion in estimated taxes that are not collected in Greece. Italy banned cash payment above 1000 euros and started a cross referencing initiative to tackle tax evasion under premier Monti. Greece took up tax evasion legislation in 2010 in parliament but opposition from many groups led to no action. In 2012 Labor minister Elsa Fornero broke down in tears as she described raising the retirement age for women to 66 in the private sector from 60, saying this was to prevent "collective impoverishment." Italy lacks childcare and older women help with childcare for grandchildren. Renzi was probably thinking of these changes in Italy. He went on to say- " If there is a mass get-out clause over the rules, what will happen in Spain in October? And in France in a year and half? It is one thing to ask for flexibility amid abidance by the rules. It is another thing to think that one is the craftiest of them all, in other words to be the that does not abide by the rules. We want them to save Greece. But the people of Greece also have to want that." On tax evasion and other issues for long term financial health Greece is seen as not following basic financial rules for sustaining the euro....

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The failure of the 117th Congress to pass key parts of president Biden's agenda for hard hit families and workers in America is now taking place. The 50-50 standoff in the US Senate and failure of two Democrat senators Sinema of Arizona, Manchin of West Virgina to support Biden's Families and Workers Plan leaves key parts of the safety net being left out. This leaves out the education, and paid leave part of the agenda and provisions for utilities to accelerate shift away from coal out of the bill. It fails to implement a new national agenda for upward mobility, child care and paid leave to help stressed out mothers and families. The failure to include even a modest community college 2 years of support at a time when men's college enrollment is dropping to disastrous levels for America's economic competitiveness is a failure of the 117th Congress to grasp the needs of families and workers in America today. Only a new Congress in 2022 can take up the needed action for families and workers in education, health care, child care and help for families. The passage of the infrastructure bill and the current version of the social spending bill can only be seen as a first step in the right direction, after three decades of different administrations neglecting infrastructure, education, healthcare, childcare, elderly care, upward mobility, and climate change. On the plus side as the first step to restore dignity and health of families and workers in America it includes- $150 billion for rental assistance, home buying help, public housing repairs, and building 1 million affordable housing units. $150 billion for federal programs for home health care and community care for older Americans and people with disabilities $165 billion to reduce premiums for people under Affordable Health Care Act, cover additional 4 million through Medicaid, adding hearing coverage but not dental or vision to Medicare. $200 billion for child care tax credit to parents. $400 billion to reduce health care costs and give universal pre-kindergarden for 3-4 year old children. $40 billion for worker training $555 billion for fighting climate change including through tax incentives for sources of energy that are low emission and low carbon. It will be paid for by additional taxes on incomes of very high income earners in annual $1 million plus range, and by having a corporate minimum tax of 15% for large corporations, including on profits overseas, that previously did not pay this tax. A wealth tax on unrealized capital gains of billionaires or other wealth of the richest Americans is left for a future Congress to consider for financing the key parts of climate change provisions, education and health care that were left out. The education and healthcare provisions need to be expanded to restore America's historic mission of upward mobility for all. A provision for Medicare to comprehensively negotiate prices with pharmaceutical companies that would be taken for granted in any advanced country as in Europe, is also left for a future Congress that understands and responds to the dire needs of families and workers in America for affordable healthcare medicine neglected by administration after administration for the last three decades.   ...

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There are fines in the UK for missing school. A fine of 160 ponds for 5 days unauthorized school absence and court action with fine of 2500 pounds, visits by police. For mental health and other reasons some children miss school and have to be home schooled. After the pandemic this went up 60% to 126,000 children in the UK.

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Chinese bio tech hubs around Shanghai started by biotech engineers from China trained in the US returning to China are giving the US competition. These biotech companies in China are coming up with drugs for lung cancer and other fields at a fraction of the cost. This happened in AI with DeepSeek doing what ChatGPT does at 10% of the cost.

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Fintech set lofty expectations for revolutionizing finance says WSJ but these have not been realized. Part of the reason is that the fintech itself relies on other banking firms. Evolve at one time handled $10 billion in Silicon Valley. It is now facing problems due to the fintech software firm it depended on for its operations has failed.

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The migration of Miexcans to the US, or Keralites to the Gulf states, are other ways in which the impacts of this recession are felt across countries. This is passed on through lower remittances to the home country from its workers overseas and in the people returning to their home country unemployed. Putting aside national borders its seen in the way huge migrations of workers from rural areas moving to the coastal areas of China is being reversed as export industries on the coast are collapsing. In that case there are no remitttances but the effects are just as severe as these people are unemployed. And in parts of rural China where there is a severe drought the rural economies and the farming areas are suffering from poor agricultural production. Kerala, a coastal state in southern India, is a state heavily dependent on the Gulf economies for jobs and remittances. The Keral Manpower Exporters Association says that about 500,000 workers from Kerala will be forced to return from the Gulf in a few months. Kerala contributes about half of the 5 million Indians working in the Gulf economies. The estimated $6 billion that these workers send to Kerala ia about a fourth of the state's economy and twice its government budget. Skilled workers doing jobs as carpenters, plumbers, painters and administrative staff working in the construction boom in the Gulg especially Dubai, are likely to remain unemployed. ...

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A major shift in foreign investment may be taking place as the 2014 St. Petersburg International Economic Forum takes place in May 2014. Russian policy in Ukraine and tensions with the U.S. and Germany could lead to a shift in investment to other emerging market countries. China's tensions with Japan could lead to a similiar shift of Japanese foreign investment. At the same time India has elected a new government with an absolute majority and an overwhelming mandate from young people to accelerate development. The new government under the BJP party's Modi has a decade of experience attracting foreign investment in western India. Indonesia, Vietnam, Africa and other emerging market countries, could benefit from the shift in investment. Investment could also return to the home countries with lower labor costs in Southern Europe, lower labor/energy/transport costs in North America. For Russia the debate at the St Petersburg Economic Forum was about pursuing one of three policy paths with some riskier than others, or some combination also risky and uncertain- depending on state banks and oil windfall funds, increasing ties with Asian countries, continuing on the current path with lower foreign investment and continued capital outflows. The failure to use the time wisely to diversify the oil based economy which could have been better accomplished in an economy not overly dependent on crony capitalism and centralized economy, both current characteristics, will affect future progress. A key weakness for Russia compared to China is the centralization under one person Putin, more so in the third term. In China the two man team Keqiang and Jinping is part of a larger team chosen by consensus and negotiation and part of a rotational scheme. It has senior leaders who initiated the changes to a market driven economy in the nineties determined to see China on track....

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BP's difficulties in the deal with Rosneft. In mid-January 2011 BP signed a deal with Rosneft with each company investing in the other through a stock swap of 5% of BP and 9.8% of Rosneft. They also agreed to jointly explore oil fields in the Russian Arctic. This sidelines BP's former partners in the TNK-BP venture. Robert Dudley, who headed the Russian operations of BP, is now CEO of the company. From 2003 to 2008, Dudley headed the TNK-BP joint venture. BP's partners in that venture, known as the AAR group of oligarchs, have sued BP over the BP-Rosneft deal. An arbitration tribunal in Sweden ruled that the Rosneft venture violates a shareholder agreement BP has in the TNK-BP venture. BP was under the impression that support from Igor Sechin, deputy prime minister and head of Rosneft, would ensure there would be no litgation by AAR, but this has not happened. It shows the uncertainties in Russian politics. Russian President Medvedev has asked political leaders to give up corporate positions, which would mean Sechin would have to give up his position in Rosneft. BP continues to benefit from access to new resources in Russia even with these difficulties. BP contributed $6 billon in cash in 2003 to the TNK-BP joint venture. BP has made $14.3 billion in dividends since 2003 on this investment and holds 50% of the assets in that venture. ...

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U.S. president Obama's passive response in the handling of the NSA spying on the phones of world leaders including the president of Brazil and the chancellor of Germany comes under criticism in the U.S. The failure to provide adequate assurance- and take immediate action since the summer of 2013 when the first revelations of NSA spying were out- to regain trust of European and other leaders is seen as a weakness in leadership. With German presidential elections approaching German chancellor Merkel actually tried to tone down the initial uproar over NSA spying revelations in the summer of 2013. It was only after it was revealed in October 2013 that NSA had monitored Merkel's mobile phone did the chancellor make an issue of this and Obama could not respond to why no action had been taken since the summer and a complete review of NSA spy activities made by the President and advisors. Because world leaders are involved, and not just of allies but large emerging market nations such as Brazil, this becomes the personal responsibility of the U.S. president. Obama also comes under criticism for not responding to the failure of the healthcare website. This matter is of a different nature and could be handled by the President's Health and Human Services Secretary, Ms. Sibelius....

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GM expects the small car Chevy Beat will help it reach 100,000 vehicles sold in India. Sales were 70,000 in 2009. Beat joins Spark and Aveo-UA, the other Chevy brands.

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State based exchanges in New Mexico, Oregon and other states have experienced difficulties setting up and running the exchanges. Many states have turned to the federal government to operate the exchanges.

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Morgenson says that the lobbying by the financial inudstry to weaken reform efforts for derivatives trading and resisting other reforms will only lead to taxpayers paying for more rescues later on.

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In Houston, 17,000 people are settled in shelters after the devastating flood waters hit the city. Dallas Convention Center houses 5000 people evacuated from homes. The Bayou areas of Houston were hit hardest. The Texas National Guard of 12,000 was fully deployed with 18,000 National Guard personnel from other states. Experts say the Houston floods are unprecedented in the U.S. for the number of inches of rain that hit the city. 

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Lopez Obrador takes office as the new president of Mexico and promises a fourth transformation of Mexico after independence from Spain, 19th century reforms separating church and state, 1910 Mexican revolution. Obrador has a majority in both houses of Congress, a first since 1997. Mr. Obrador has promised 100 new public universities, and increased public spending on health and education mainly through austerity in other spending such as a new Mexico City airport that was cancelled.

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Zero covid lockdowns have added to the sentiment seeing China as a less attractive location for foreign investment. American companies are seeing staff resign due the lockdowns and zero covid policy. About a fourth of companies in a US Chamber of Commerce survey see a 20% drop in sales in 2022. A similar situation is being seen for European companies in China. The other area of growth from property sector is not working anymore as there is a 59% drop in demand for new property units. Investors in the property sector fear  another situation like that of property developer Evergrande's collapse.  Similar to Japan by 2000 a lot of the government infrastructure for roads and rail and automobiles has already been built leaving less room for this sector to kick in. Investments are possible in AI, renewables, electric cars, and advanced technologies, with limited potential to tackle loss of jobs in other sectors such as construction and government financed infrastructure spending and in retail stores. Retail sales are hit by inflation and high gas prices. The result is that China's GDP may fall by 1% according to one estimate for this quarter from the previous year. For growth and foreign investment look to India where a surge in government financed infrastructure in construction of roads and rapid transit, fast rail, construction of housing, and rapid increase in use of mobile phones, automobiles, and appliances is taking place. A new logistics system is being built with a Master plan for the whole economy under Gati Shakti creating a whole new place for foreign investment in a country of 1.3 billion. With Indonesia and Bangladesh closely related to India this is a market of 1.8 billion people far surpassing China and built on values of democracy ingrained over 100 years since the experiments under the British of elected state assemblies. This happened under limited Hind Swaraj since 1930's when India was led by Mohandas Gandhi in these early experiments with democracy. Germany, France and the US have a lot in common with India and the ground is being prepared with improvements for extensive German, US foreign investment by the Modi administration.  ...

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The NYT's look at the televised debate between Macron and Le Pen for the presidential election. Macron has this to say in closing about Le Pen's shelving her plans for exit from the European Union compared to her position in the last election. "It's a project that doesn't say its name but entails leaving the European Union. I'm not lying about the goods, you are lying about the goods." Macron says Le Pen is being disingenuous about this, arguing that by reducing French contributions to the Eu budget and by ignoring fundamental rules of the EU such as freedom of movement and the single market, that would lead to a de facto exit from the European Union for France. Lyrarc has shown today on this page how the debate was covered in FR24, DW.com, The Guardian, BBC News, WSJ, and NYT. One of the key questions is what would she or some other candidate such as Mr. Melenchon done differently than Mr. Macron- For the once in a century pandemic? Macron is not faulted by any one for the work done by two prime ministers he appointed for the task. What would she or some other candidate done differently for today's surging inflation, considering that it is happening worldwide? Are their aspects of France's welfare state, and her economy and the currency that are better protected under the European Union than in a situation of de facto exit. The absolute power in the French presidency is something that happened after a weak system of prime ministers and coalition governments in the period between the two wars, and that power used wisely enabled De Gaulle to take decisive steps  over a decade for France in the post war modernization of France. This was a problem for Melenchon with his calls for a new Republic and a new constitution. Yet many of todays problems of decaying communities and once prosperous industrial towns in decay in the north, northeast and the south require a next generation industrial revolution to bring manufacturing back to France and back to the European Union, and large scale investment in France, as is happening today in the US which is confronting the same problem.    ...

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This discussion in WSJ brings up an important topic- how can America get the most out of its infrastructure dollars, make the $1 trillion infrastructure go a long way towards fixing the nation's dilapidated and crumbling roads, highways, bridges, and other infrastructure? The three experts point out that there is lack of coordination between different government agencies, between agencies and the private sector engineering firms. They are all working in silos with little connection to delivery times and delivery quality of end product. There is a lack of transparency at all levels of infrastructure work and spending, so that the end delivery and problems are not seen in relation to final delivery of end product, visible to all on one site. There is a third problem say the three experts in the lack of investment in professional development and training and technology for the people in the government agencies.  The result is that the US with its higher costs for construction work and the delays for getting approval, and the bureaucratic hurdles, ends up with getting much less for the buck than other countries. Even a newcomer to infrastructure development if it gets it right can be ahead of the US. India is looking at the pitfalls of infrastructure development and eliminating hurdles. With its Gati Shakti Master plan given the personal support of the prime minister India is correcting precisely these three missteps that are cited in the WSJ for the US infrastructure buildup. Under Gati Shakti all government agencies at city, state and federal levels fall under one umbrella to work in coordination. The focus is always on end product and delivery of end product. The siloing of projects is considered a serious pitfall and avoided at all costs. Transparency is considered essential and so is visibility in that at any time one can turn on a site and see where a project stands in its delivery date of end product. If there are problems they are put on the site so that all participants can see it to come up with solutions. By doing this a country with fewer resources can make them go a long way to come up with the kind of infrastructure that is seen in rich countries with more waste built into the process.   ...

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The $369 billion climate and tax package that is coming out of a deal arranged by Schumer in the US Senate could be a path breaking action. It would enable president Biden to get close to the climate goals he promised last year of cutting US carbon emissions by 50% by 2030 over 2005 levels to combat effects of climate change. The $369 billion package would get the US to reduce carbon emissions by 40% in 2030 over 2005 levels.  Severe effects of climate change with fires and floods in the US, Europe, and Asia have brought a new spotlight to the issues facing the world and the fact that something needs to be done quickly with the US leading the way. Senator Manchin a holdout because he comes from a coal mining state was a holdout. He was persuaded to join as the new legislation provides for support for transmission lines and other investment during a transition period so that it does not affect the economy in his state. The transition period is now accepted as Europe now looks at gas and coal as a temporary resource following the cutoff of Russian supplies and the US will be shipping more LNG to Europe during this period. The vote for this legislation is planned under reconciliation so that the vice president MS. Harris can cast the deciding vote for Democrats in a 50-50 split Senate. Republicans oppose the legislation. Manchin now says it will reduce inflation. Briefly it will give $7500 to every buyer of an electric vehicle EV, and $4000 for a used EV. It would give rebates for heat pumps that increase home energy efficiency. Billions of dollars would be spent for clean energy industries, and for solar, wind, geothermal, other renewable energy projects. Democrats want to get the legislation through the Senate quickly by next week, and so secret were Schumer's negotiations that most Democrats did not know about it. Coming on the heels of the $280 billion CHIPS and Science bill for $280 billion investment in US semiconductor industry, this will be a big win for president Biden and shows the persistence and patience of Mr. Biden is paying off.   ...