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Bruni describes the situation facing Millenials in the U.S., a group of young people who face high student debt and few job opportunities, many stuck in jobs that do not match their qualifications. A similiar situation faces young people in Italy, Spain, France, the UK and other European countries. In South Asia there is an appalling lack of job opportunities to meet the aspirations of young people for a better life.

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There is a sense of cognitive dissonance in the states of former East Germany, known as the GDR or German Democratic Republic in the Soviet Union period from 1950's to 1990. The 5 states that formed the GDR continued to build close ties with Russia after the fall of the Berlin Wall, in the perception that this would build good long term relations. The crisis in Ukraine with border states of the Soviet Union opting in favor of close ties with the European Union and not Russia have disrupted the economic relations between the Federal Republic of Germany and Russia. As long as Russia needed the economic ties to build its economy and standard of living the political issues posed by NATO expansion and EU expansion were set aside by Putin and political parties within Russia. The very ties that were supposed to usher in an era of peace in Europe helped strengthen the Russian and Chinese economies. Leading to a point where these two economies were strong enough by 2021 in the midst of the waning pandemic to  assert themselves on political issues where serious differences existed such as expansion of NATO and Taiwan. When the economic relations such as making China a manufacturing powerhouse  was the path taken by American and European business in 1990's, business interests were focused on the declining quality and high wages demanded by unions and workers in the US and Germany. This could be personally witnessed at Apple's factory in Colorado Springs where quality was failing badly in the 1990's. Apple when Steve Jobs returned in 1997 adopted a China manufacturing strategy when its manufacturing operations in the US failed to deliver the quality and cost structure needed for it to expand. The high margins with low costs of manufacturing in China was the strategy adopted by Steve Jobs to compete with Microsoft and turbocharge its expansion. Soon other companies followed. A similar process happened in economic ties with Russia on a smaller scale. Two decades of such expansion whittled down American manufacturing, hurt American workers, hurt European manufacturing and European workers.  This process could not continue- yellow vest protests in France, the protest vote in US midwestern states in recent elections, the protest votes in German elections and fragmentation of parties, made this clear. The US imposed trade tariffs on Chinese products and moved to restrict flow of technologies to China under the Trump administration, accelerated by the Biden administration. President Xi was once of the view that China's ties with the US were important "thousand fold" in the period as late as 2010. Yet this lopsided trade relationship was not beneficial to American workers or American interests as a technologically advanced leader. It is true that American workers and engineers at Apple had failed to ensure American quality competitiveness in the 1980's into 1990's, yet no advanced country or its business can come up with a false narrative that cedes its manufacturing leadership and jobs for the working class of its country. That false narrative is being challenged today by Mr. Biden, Mr. Scholz, and all American and German political parties, and by Mr. Modi with Atman Nirbhar Bharat for local manufacturing. The integration one sees of the port of Hamburg as Chinese export hub with China's economy is one aspect of what has happened. A new leadership is taking its place in Europe and in America that sees clearly the false narrative. The visit of the new Danish prime minister to India is the beginning of the effort to set up a new logistics relationship with South and South East Asia, as Denmark's Maersk is a world leader in shipping logistics for exports and manufacturing. The planned Noida logistics center outside of New Delhi under Gati Shakti integrated development is part of the change happening today as a new supply chain is being built. The unwinding of the one sided trade relationship with China, and its related relationship on energy with Russia, led to the changing perception in Russia and China of the value of the relationship. Political relations superseded economic and cultural relations during Putin's second phase and Xi's second phase with assertive attitudes on NATO, and on Hong Kong, Taiwan under Xi and Putin 2.0. As could be expected Germany and the US were caught flat footed as leaders who were cast in the mold of Putin as a Soviet representative in Dresden, and Xi with his father leading the Communist struggle in the 1930's and 1940's against Chiangkaishek, acted in ways that reflected the Soviet period. Chiang left for Taiwan in 1948 when Mao-tse-tung setup the People's Republic of China. Taiwan and Hong Kong remained important in the perceptions of Xi 2.0, in the effort to build "China Dream" and erase last vestiges of what in Soviet times were seen as western colonialism. US and EU particularly Business and the new IT telecom Business failed to grasp these matters, and historical events such as the opium wars of the 1850's. Business and cultural interests lacked both the inclination to learn and the knowledge of these events in Chinese history and its relations with colonial powers Britain and Japan, and also Russia. In 1900 the Boxer rebellion against ceding Chinese ports to colonial powers Britain, Japan, Russia, ended with permanent colonial settlements in Hong Kong, Shanghai, Tsingtao, other Chinese ports. Chinese rejuvenation in the mind of leaders such as Xi from the second generation of Communist leadership, means putting this behind, leading to the action taken in Hong Kong. In some ways as some observers have commented it is as much a problem of the sluggishness of American and European thinking, particularly business interests including in Taiwan, post British Hong Kong, and ignorance of recent Chinese history which was mistakenly thought not to exist or forgotten. This is as much of a problem as the action taken by Putin and moves by Xi Jinping. The great democracies such as India, Indonesia, Bangladesh, were ignored as American and European business interests integrated the American and German economies with China's. In terms of population the population of these regions and related parts of South East Asia such as Malaysia and Vietnam which have a shared cultural history is about 1.5 times the population of China. Travelling through the parts of India's largest state Uttar Pradesh, an Madhya Pradesh one finds how much American and European business interests have failed both their own interests, their own workers and failed the great democracies of the world, by not only not investing in the democracies of Asia, and also of Africa and Latin America and bought into a narrative of China which no longer holds true and may never have been true all along. This is starkly evident in a once in a century pandemic in these great democracies of the world. These democracies have been left to fend for themselves during the pandemic and their leaders facing false narratives in the media such as the BBC and American media outlets even on issues such as vaccination of the largest part of the world's people.           ...

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Actually some of this is a healthy development as more nations and people have a stake in the world economy. Take the Brazil situation for example . Clearly the Brazilian people are more favorable to globalization and its benefits than they were a decade ago at the height of the Asian crisis and the contagion effect on Brazil. Actually the advantages of free trade and a global trading system that benefits Brazil as well as China and India and other countries that buy its commodities such as iron ore is more now than ever because these nationas are benefitting from this trade. Because of the high prices of commodities and the agricultural products of Brazil, it has a currrent account surplus and its currency is strengthening. Instead of having to go to the IMF for assistance Brazil has large foreign exchange reserves that support its currency and which help it push up its investments as a share of GDP from 19% to closer to 25%, which should enable it to sustain about 5% growth year after year., according to Sergio Vale of MB Associados. A strong real, lower interest rates, and consumer credit have boosted the purchasing power of the middle class and the antipoverty programs of the Lula government have helped the poorer classes have a stake in the development. According to a recent Observador/Ipsos survey 23 million Brazilians have left social classes D and E and joined class C whose distinctive markings are a rented apartment, a car and some new gadgets. Actually quite to the contrary of the impression created by this article Brazil according to a former central bank governor is now showing a new enthusiasm for this kind of development which encompasses free trade and markets, a feeling that the stockmarket is not a casino and being part of the world economy is a good thing. The big discoveries of oil at Tupi and Carioca-Sugar Loaf in Atlantic offshore waters by Petrobras even though they are in miles deep waters and require special expertise must only have reinforced this mood. The danger to Brazil's enthusiasm comes not from nationalism of different countries trying to find better ways of meeting the aspirations of their people but from the risks in a global slowdown that started with the US subprime and mortgage crisis, the resulting credit tightening, and fall in consumption thats expected after years of overspending by the American consumer. Its now upto these individual countries, like Brazil, China, India and Russia, Japan as well as Germany France and other countries that are not directly part of the housing bubble and subprime and mortgage securitization mess affecting the USA, and the UK and Ireland and Spain to a lesser extent, to find ways of maintaining more modest but still substantial growth to meet the growing aspirations of people in these countries. In this sense the policy errors and regulatory errors made during this last decade in the US will actually have hurt the world economy and markets in a serious manner, and it is this that has now to be managed in a better way by these countries with the close cooperation between them and the USA. The situation in Brazil is repeated in the experience of India, China and Russia where for the first time there is enthusiasm for being part of the world economy. In the light of this development there is more reason for hope and more need for careful navigation mechanisms for these and other countries to weather the difficulties from a global slowdown and still sustain development that itself could help the USA work its way out of the current crisis through its exports....

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The slowing of China's growth with GDP growth for 2012 estimated by the government at 7.5%. Growth was 8.1% in the first quarter of 2012, with expected decline in the second quarter. In response China's National Development and Reform Commission, which executes economic policy in China, has accelerated the approval of major infrastructure investments starting in April. This includes hydropower stations, clean energy projects, 4 new airports and renovations of 3 large steel plants, a subway in Nanjing. The investments total about $150 billion. Another stimulus comes from investments by local governments with central government support, including highways, sewage treatment plants, and $55 billion investment by state corporations in the Chongqing municipality. To revive the auto industry a cash-for-clunkers program is also planned, and this may include cash incentives for home appliance purchases. In addition to this the State Council headed by premier Wen Biao is making plans for 20 major projects in 7 strategic industries, from advanced equipment manufacturing to energy conservation. The result is a Stimulus that will be much smaller than the $585 Stimulus spending of 2008-2009, with a measured response compared to the earlier splurge in spending. Experts say the Communist party sees this as ensuring a smoother transition to a new president and prime minister in 2012, with added credibility for the nations growth and for the leadership of the Communist party in the modernization drive. ...

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The eurozone GDP shrank at an annualized 5.9% for 4th quarter 2008.

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The ECB and the Bank of England cut interest rates to near zero.

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One of the opportunities of this pandemic is that it offers a chance to think anew and act anew. Where in Lincoln's words "the dogmas of the past are inadequate for the stormy present, as our case is new we must think anew and act anew." Here Vladimir Putin offers his assessment of how the pandemic calls for a fresh approach to reviving De Gaulle and other postwar European leaders vision of Europe that spanned the entire continent culturally including Russia. He accepts mistakes have been made by all sides and the title of the article by Putin is "Be Open, Despite the Past." The Russian Embassy in Germany contacted De Zeit for publication of an article by Putin, and it can be seen as part of the Russian response to president Biden's effort to build a new cooperative relationship with Russia that is in the best interests of the US, Russia, Germany, the European Union and also of India which has a cooperative relationship with Russia. There is the danger that it could be seen as reported in The Times of London and comments posted seeing it against distrust built around Ukraine and Eastern Europe. The 670 Comments in Germany on De Zeit site on the article reflect a more German perspective of being a close neighbor that suffered so much from the war that left millions dead on both sides. One German commenter says his father and grandfather were forcibly recruited to fight in France and Russia and suffered much in wartime. The occasion is the 80th anniversary of the German invasion of Russia in World War II. Some of what Putin has to say- "We hoped that the end of the Cold War would mean victory for all of Europe. It would not be long before Charles De Gaulle's vision of a unified continent would become a reality, more culturally and civilizationally from Lisbon to Vladivostock." Russia has changed, Russians see themselves as European, as part of the larger European Union, culturally and civilizationally. This is not the old Russia of the Cold War or of the Soviet period. "NATO itself a relic of the Cold War, created out of a confrontation from that time." Not objecting to NATO but to the expansion of NATO to Russia's borders. But saying this has not got us anywhere where our heart not our brain says we ought to go. Lets try again to draw different conclusions from what we have seen. Its important to think anew because "we are all confronted with the common challenges of the pandemic and its extremely serious social and economic consequences." "The entire prosperity and security of our common continent are only possible through the combined efforts of all our countries, including Russia because Russia is one of the largest European states. Wed feel our inseparable cultural and economic ties to Europe." "We simply cannot afford to carry around the burden of previous misunderstandings, hurts, conflicts and mistakes. A burden that prevents us from solving current problems. We are convinced that we all have to admit and correct these mistakes. Our common and undisputed goal is to ensure the security of the continent without dividing lines. And to create a unified space for equal cooperation and collective development in the interests of the prosperity of Europe and of the whole world." President Biden was right to think anew and act anew in Geneva, and to "disenthrall ourselves" from old ways of thinking, and for rising to the occasion. Jill Biden said of president Biden's preparation for the meeting in Geneva- "Hell, he was overprepared," and it showed Biden's genuine feeling and effort that he owed it "in the interests of Europe and the world."       ...

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The Logan lower cost model produced by Renault's Romanian affiliate Automobile Dacia SA is setting a pattern that is being looked at as a model for the future throughout Renault. It is combining the advantages of Japanese manufacturing methods with their attention to detail and good practices evident at Nissan, Renault's partner company, with the cost conscious methods evident in operations in a Renault joint venture with Mahindra and Mahindra of India. Dacia Automobile was a Soviet era plant, and Renault has modernized it but keeps a more labor intensive attitude with good basics operation here, in contrast to the trend to automate everything and use robots extensively that became popular at other plants in Europe, U.S., and Japan. As Renault managers in France and its overseas operations look at both the expanding markets for lower cost cars and the profitability of the Dacia plant in Romania, it is becoming a model to be imitated. Other plants built earlier now look overautomated and costly for manufacturing cars in a cost conscious pricing sensitive competitive market that automakers face. Logan is contributing to Renault's bottom line, and may help it in reaching the 6% in operating margins that is a new goal for Renault for 2009. Dacia Automobile S.A. initally owned 55% by Renault is now 99% owned by Renault. It has sales of 2 billion euros ,in 2007 with revenue increase of 30% over 2006. The profit was 100 million euros in 2007. It employs 14,000 workers and Renault's investment has reached 1 billion euros upto this point. The plant turns out 60 cars per hour. Compare this with a similiar investment by VW in a Soviet era Skoda automobile plant in the Czech Republic, where VW started with an inital investment in part ownership and ended up in full ownership of Skoda with large investments in modernizing Skoda, and the success in selling Skoda cars known for their good quality. The Skoda is expected to sell at the million dollar sales level in 2010 and is the fastest growing brand in Europe. It ties with Honda in quality surveys. ...

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Privileged minorities ethnic or white among large native populations. Amy Chua argues that free markets that empower the white minority giving it special privileged status, and democracy that empowers the native peoples, leads to conflict and exacerbates tensions. She talks about the Venezuelan experience with Chavez. Before Chavez Venezuela had free markets and elections in which two parties alternately controlled the government. Even before Reagan era and post Reagan era promotion of free markets and democracy this existed. However people were fed up with corruption and the native peoples did not see their lives improve. They tried a populist politician in Chavez who redistributes petroleum wealth to the poorer classes. Some of this tension is inevitable, but if all sides use good sense and understanding, and manage this tension constructively there still exists a better situation than there was before- when looking at overall public welfare and considering the welfare of the people and the educated professional classes. When there is a failure to work together it shows the shortsightedness of both sides, the poor understanding and lack of joint effort for mutual benefits, and not the shortsightedness of free markets and democracy. And one is not talking of free markets as American type, but free markets as crafted for each individual country based on its own history, culture, time and place, as free markets are not the same in America, Britain, Germany, France, Japan and South Korea, China and India in the post war period. China is not even a democracy and has practiced one of the wildest kind of free market economy based on its own unique situation, calculated consensus to use exports, foreign investment, and domestic investment in infrastructure as engines of development- its own peculiar use of free market ideas for its own situation. If it works, for as long as it works its good. Now as the situation changes with loss of export markets expected in 2009, China is changing to another kind of use of free market ideas tailored to its idea of free markets for development of the Chinese economy and distribution of benefits to urban and rural areas. ...

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The head of the Germany Program at Institut Montaigne in Paris, France, Robinet Borgomano looks at the renewal of German society under the ideas of "respect" put forward by Olaf Scholz of the SPD party. What does Olaf Scholz see as the main issue of our time? - Borgomano says it is the disintegration of European and American societies under the combined effects of technological progress and globalization. Where does Scholz get his ideas of "respect" for workers and families? Isn't Mr. Biden sharing the same ideas in the US? The SPD party got its start at the Bad Godesberg Convention in 1959 when it embraced the idea of a social market economy as a party of the people. Wily Brandt as chancellor from 1969 to 1974, whose personal struggle against the Germany of World War II was based in the Nordic countries, embodies best this renewal aspect of the SPD. Scholz sees his role as renewal of Germany, Europe, hand in hand with Mr. Biden's renewal efforts in the US on the same basic ideas of respect of the dignity of the worker and families that in Germany were seen with Wily Brandt and in the US with Harry Truman who followed FDR. Scholz rejects the overemphasis on the of merit in German society, European society, or American society, in the way it has taken shape in the last fifty years. Scholz cites Michael Sandel's Essay "The Tyranny of Merit" rejcting it because it makes a case for inequality based on merit, on capital allocation on an implied idea of merit of free markets managed in damaging ways for personal interest. It is wrong because it robs the worker and families of the basic dignity that is the right of every individual and of every person. It is wrong because it makes a false justification for growing inequality, and makes those who do not succeed feel that it is their fault. Meritocratic elites have made the idea that those who work hard and play by the rules get all the benefits and wealth even if the rules were first set in a way that benefits them alone. When these rules become implicit they are rarely questioned as happened in the period after 2000. It is not just in Europe and America that this happens, and not just in the 20th century.  Strange but true- During the 1850's in the heyday of industrialization in Britain the Ethnological Society of Britain justified the inequality between the British and Indians in the British Empire by saying Indians were inferior in exams and did not have the motivation or the aptitude and energy to excel in the way British students did. Dadabhai Naoroji, the first Indian member of the British parliament in Mr. Gladstone's Liberals singlehandedly took up the job Sandel and Scholz and Mr. Biden are taking on today to restore the respect of workers, farmers, and families in America and Europe and in all parts of the world. Sandel goes on to say what Scholz has heard clearly- "the parties that made the offer of upward mobility to workers and families have missed the insult implicit in it to a large number of working people." In a way it is going back to the roots, to the founding fathers in America who said in the 18th century that "all men are created equal and they are endowed by their Creator with certain inalienable rights, and among these are life, liberty and the pursuit of happiness," -nothing less.   ...

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The Guangzhou to Wuhan train high speed line covers the 664 mile trip in 3 hours. 42 such high speed rail lines are set to open by 2012. These trains run at 215 miles per hour. Original plans were to build these lines by 2020 but the global economic crisis led to state planners moving the date up to 2012 and allocating $100 billion for this purpose. Moving passenger traffic to high speed rail lines also frees up the existing lines for more freight. Plans are to build an additional 3000 miles of track for passenger and fast freight trains at 155 miles per hour. Practically every seat on the Guangzhou- Wuhan 14 car train was full on a typical day last week, filled with migrant workers going home. What makes building these lines affordable is construction workers who earn less than $100 a month, a national savings rate of 40%, and rising tax revenues.This particular line cost $17 billion to build because of the many tunnels needed for the line. The three hour train actually makes the journey faster than the 2 hour flight to Wuhan from Guangzhou because of faster check-in times. Train stations are built in industrial districts away from the city, in the case of Guangzhou, a 40 minute bus ride from the city....

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NATO's new guiding document and security concept now includes China for the first time as a shared security challenge. In the past there were concerns about China yet Germany and France continued economic engagement with China as before. The clearly worded statement by Xi Jinping and Putin expressing strong disapproval of a world in which the US and the EU play a prominent leadership role, made just before Russia launched its attack on Ukraine, has changed the sentiment in Europe. It is now becoming clear to Germany that the world has changed.Under Merkel Germany expanded trade ties with Russia on energy and with China as a major trading partner. The first steps are now being taken to decouple the trading relationship with China and restructure Germany's trade away from China towards other parts of the world including India, Vietnam and other Asian countries. Mr Scholz pointed to this needed shift during the Trade Fair in Hannover. As part of this shift NATO now sees cooperation with Indo-Pacific partners Australia, Japan, and South Korea and India essential for meeting the challenge of Russia today and of China over the long term. The NATO document says about China that "its stated ambitions and coercive policies, challenge our interests, security and values." Here are some of the ways the world has changed today. There are new administrations and newly elected leaders in the US, Japan, South Korea, and Germany. The new administrations are led by leaders in Japan and South Korea that are keen on working hand in hand with the US to meet the challenge from China. In the US president Biden seems determined to build up America's strength to meet any challenges China can pose. In Germany the administration is run by the SPD socialists with the Greens and the Free Democrats coalition. The Greens led by Robert Habeck and Annalena Baerbock have taken a strong position to face up to Russia's invasion in Ukraine, and Mr. Scholz is following step by step and has distanced himself from old SPD and CDU policies of  Angela Merkel of close commercial ties with Russia and China.  Indian prime minster Modi was a close partner at the G7 conference in Munich, Germany. The leaders of Japan and South Korea attended the NATO summit in Madrid and met with president Biden as shown here.   ...

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Millions of people who are first time users for whom affordability is an issue in countries from Nigeria, Ivory Coast to India, Indonesia, are connecting to the internet. This time not with smartphones made by Samsung or cheaper Chinese smartphones made by Xiaomi or Huawei, but by using a new smart feature phone that cuts down the price such as the Jio phone by Reliance Jio in India. This costs only about $25 compared to $100 to about $300 for lower cost smartphones These phones provide basic features, some apps, messaging, internet access at low cost. About 3.4 billion people without the money to buy costlier smartphones are turning to this just like people did 20 years ago with lowcost Nokia basic phones until smartphones appeared. Monthly cost for mobile data access to internet is $2.50 a month for all the mobile data he needs or Rs. 1750. Batteries last for days in countries where electricity is unreliable. A fruit vendor in New Delhi makes $80 a month or  Rs 5600. A Jio phone fo him costs Rs 1400 compared to paying Rs 7000 or $100 for a Chinese smartphone. Reliance partnered with Hong Kong's KaiOS Technologies Inc. which makes the most widely used operating system powering smart feature phones. Jio sold 60 million Jio phones and 370 million such smart feature basic phones are forecast to be sold in 3 years by 2022. Reliance Jio is being imitated by others. Orange SA of France has launched an inexpensive smart feature phone bundled with inexpensive mobile data plans in Ivory Coast, Burkina Fso and Cameroon and plans to put this in other former French colonies in Africa and Arab countries. WizPhone plans to introduce a $7 phone in Indonesia. KaiOS is working with Brazilian manufacturers to roll out cheap phones there.  In advanced countries Nokia is offering revamped versions of its candy bar shaped phones with added web access to enthusiasts. These cost $100. A whole new group of people who could not afford a smart phone are now being connected after Jio's pioneering effort in India. ...

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Europe has something that is just as bad as subprime mortgages that have troubled the US, its the bad debt of European banks to Eastern European emerging market countries. This plus the high indebtedness of companies in Western Europe is creating serious problems for the economies of western Europe. In addition to the property bubble in Ireland, the UK and Spain, Germany is facing falling demand for its exports as a result of the steep descent of the global economy, especially China. As a result of all this the EU is facing a problem of the magnitude of that faced by the US, if not worse. In much of Europe especially in Germany and the Eastern European countries what generates growth and jobs is exports. Three quarters of the cars made in Germany are exported, and many of the parts used in BMW's and VW's come from plants in the eastern european countries, some form Slovakia, Poland and from plants elsewhere in Eastern Europe. With the collapse of some Eastern European economies and serious problems in others these markets are shrinking. The same thing is happening to exports from Eastern European countries where factories there manufacturing goods for Western Europe are closing. And banks in the western European economies like UniCredit Group of Italy, Germany's Commerzbank, and Belgium's KBC Group have large loans outstanding in the eastern European countries to companies and consumers. And some of these countries have run up huge current account deficits. Bulgaria the deficit is 20% of GDP. Increasing the risk and hitting consumers in the east is that banks issued low rate mortgages and other laons in euros and swiss francs. With the Hungarian forint, Romanian leu, and other weaker currencies seeing big drops, the cost of repaying these loans has jumped. Instead of consumers being overstretched from overspending as in the USA, or facing foreclosures, these consumers are facing huge loan repayment problems from borrowing in other currencies. Morgan Stanley says more than half of the private debt in Hungary, Romania, and Bulgaria is in foreign currency. And customers in Eastern European countries owe foreign banks loans equal to one third of their combined GDP, according to the Bank of Internatonal Settlements. A lot of these loans could end up turning into bad debt if the economies of Eastern Europe deteriorate further as consumers there pull back, factories close and job losses mount, and currency values drop even more. This would create huge problems for Western European banks and restrict lending in Western Europe as these banks make fewer loans creating more problems for Western European economies, in the same manner as ricotcheting effects have done in the USA....

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Putin takes the first step for Russia to join in discussions for a lasting peace. More than a ceasefire is needed, as many ceasefires have come and gone and the war is now over 15 years old, pausing for a while and then starting again many times. Russia calls for addressing the underlying issues behind the war.  It started with Russian support for Yakunovich 2010-2014 which ended with the Maidan protests in Kviv and Lviv. Russian and Putin strategy at that time was that as long as  a pro-Russian or a person leaning towards Russia with good relations to the West -as existed in some of the former states in Eastern Europe during the 1980's during the Soviet Union such as Poland and GDR- this would be acceptable. The Maidan protest led upheaval thus had a contrary effect which Germany under Merkel and France under Sarkozy and Hollande failed to grasp. Obama judged Russia by its GDP, ignoring its history and relations among European states as one of the major powers in Europe, a technological state with nuclear power. As China shifted away making the integration of Hong Kong and now Taiwan a priority under president Xi, and asserting the virtue of its state run capitalist system over free market capitalism, the fissures began to develop in the system that prevailed after World War II and which survived the fall of the Berlin Wall. These are some of the origins of the war and are also in some of its aspects geopolitical and relate to world peace,, and peace inside nations in general outside the Ukraine war. And here relate to Venezuela Mexico and US inaction in tackling borders and cartels, the US border with Mexico, Syrian war and Syrian refugees entering Germany/Europe, the anti refugee movements in Germany and the EU, refugee crime in US and Europe, all connected in some way to the unsettled borders of the Russian state with US and Western European + Eastern European states in NATO and the EU nearby. And the limiting or removal of Russian influence in Ukraine seen by Russia as unacceptable in regions nearest to Russia that speak Russian. Britain has the virtues of its parliamentary democracy, yet it is far from Russia's borders and it just like the Russian Empire had an Empire in India and a near thing to an Empire in China, as recently as 1950, over history of western colonial empires of 500 years not too long ago. Which means it is good to be starry eyed but the reality in European history since 1400 is of dominant states and colliding or co-existing spheres of influence, mostly co-existing in some balance of different states in the interests of peace and welfare of the people.     ...

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Even China has not campaigned the way Canada, Mexico and British, American media have against DJT Tariffs because China knows it is basically about getting an even playing field when it is the only country with $1 trillion in trade in its favor in 2024, 12 times the Japanese high of $82 billion trade surplus in 2007. But why should China campaign when the American and British, German media are going to do the job for China? A simple quiz to K-12 would ask school children when is the last time a country has a $1 trillion trade surplus? Answer: Never. Greg Ip has written a few years back that the devastation of China outshoring of American factories and jobs was unlike the 1980's Japan trade invasion because of first China's size, second by the speed with which it happened at 10-14% Chinese GDP growth. There is a third Japan was an ally needing US for security and backed down, China's case is different it is challenging the US for control of the world economy and will fight this one over the long haul. Greg Ip of WSJ on the 53 countries asking to negotiate US Liberation Day April 2, 2025 Tariffs. These countries include Allies of the US in full support asking to negotiate Israel, Japan, Taiwan, South Korea, India Allies of the US in partial support asking to negotiate Britain Allies of the US not in full support asking to negotiate Germany, France Allies of the US in the past campaigning against the US, asking to negotiate Canada, Mexico Not Allies of the US, not in full support, not campaigning against the US China A look at his list tells one only one thing, mostly all trading partners except for the $146 billion exports of the US which represents exports to China are the exports that are at risk if things don't work out on tariffs. This is what the media today WSJ added this last week to the NYT, Wash. Post and the BBC, Guardian of UK, German media will not tell the reader.  The DJT Tariffs and Tariff negotiations are Lighthizer Tariff negotiations which won the fight with Japan in the 1980's over unfair trade and gaining a level playing field. Lighthizer as Deputy US Trade Representative conducted the tough negotiations with Japan. He was USTR in 2016-2020 and his Deputy Jamieson is now USTR in 2025       ...

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The Journal profiles the small company of Dell'Orco & Villani in Prato, in the Tuscany region of Italy, in the context of the eurozone financial crisis in Greece, Italy and Spain. The Italian economy is dominated by such companies that have remained small and decided not to grow because of the difficulties facing them in the form of red tape, the slowness of courts in enforcing contracts, and labor laws that make it harder to hire employees and retrench in a recession. Today Italy's economy is only 3% larger than 10 years ago. Companies with less than 20 workers dominate the economies of southern European countries, employing 60% of the workforce in Italy and Greece, and half the workforce in Spain and Portugal. This compares with 30% in Germany and 20% in the U.S., according to the O.E.C.D. Businesses face an average of 258 days to get permits to open a new warehouse in Italy, compared to 26 in the U.S., according to the World Bank. Enforcing a contract in court could take as long as 1210 days in Italy compared to 300 days in France and the U.S. Italy's postwar economic recovery was based on these small firms around cities like Turin, or textile locations such as Prato. But building economies of scale has eluded these firms, and businessman from that period such as the elder Dell'Orco are content with remaining small. The Dell'Orco family firm makes machines that recycle plastics, rubber and other junk into fibers that can be used for carpets or clothing. The firm has trouble making a decision to hire a new younger worker to do work after four older workers retired. The company makes the machine that only does the first stage of the processing, referring customers to another firm in Prato for the second machine. Most decisions including a tiny showroom are made in excruciatingly slow fashion because they go through the family patriarch, the 91 year old founder. The son and granddaughter defer to him in all decisions. An unsold machine costing 400,000 euros sits in the factory after one buyer decided to delay the purchase, making it risky to grow. During the pre-euro period of the last two decades Italian businesses could take advantage of the regular devaluations of the lira to price below their competitors in Germany and other countries. During the last two decades competition from emerging market economies S.Korea, China and India have added to problems competing in global markets, without the advantages of scale. The inability to hire younger workers hurts unemployment for the young- youth unemployment in Italy is 29% in 2011....

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Renault's low cost entry cars which were originally designed with emerging markets in mind, are now popular in France and other countries in Europe. Renault gets 30% of its market share, up from 15% in 2006, from low cost cars like the Logan, which cost conscious buyers buy for around $10,000, instead of buying a used car. This has helped Renault at a time when other segments are not doing so well, and when Peugeot had to arrrange a 1 billion euro emergency capital increase. The profit margin on these low cost cars is 6%, compared to 2-3% profit margin on other Renault models. Renault manufactures the cars under the Renault label or the Dacia lavel depending on where they are sold, and uses a factory in Romania. Renault's model is to set the margin first and then ask suppliers such as LG and others to try to come up with a low cost design that meets its margin requirement. This eliminates features that add cost and may be dispensed with for the customer in mind. It requires a fresh approach. Cutting edge is replaced by working with parts designed for older models that cost less. Renault also used the experience gained in the Romanian factory where some of the tasks are done manually instead of using robots, and waste is reduced. The process has taken time because the Dacia Romanian factory was acquired under a previous CEO Louis Schweitzer in the late 1990's, and the first Dacia Logan was made in the Romanian factory at Pitesti, near Bucharest, in 2004. The reliability of the Dacia made cars is well established, say experts. On the sales side the Logan is sold on a no discount basis with fixed price. Dealers are told no discounts are permitted. Total sales of these cars reached 814,000 in 2011 and are expected to cross 1 million in 2012. This is similiar to the achievement of Toyota with its low cost multipurpose vehicles for emerging markets, which is expected to cross 1 million in 2012. The difference is that Renault has achieved this with European buyers in a bold strategy. Tata Motors which pioneered the effort to build low cost small cars with its $2000 vehicle is planning its own entry in Europe, the Pixel as a low cost city-car in European markets in 2015. And Renault is moving further down in cost than the Logan, as its next step, with such a car manufactured in India by Nissan-Renault and regional partners....

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France's central bank chief Christian Noyer, says public spending to create jobs has the drawback of creating yesterday's jobs, but lasting job creation has to look at today and the future for effective job creation. Once government spending crosses a certain level, about 55% of GDP, a level France has crossed, further spending becomes counterproductive, reducing public confidence in the economy, as higher future taxes are anticipated canceling any benefits.

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A study by AARP of 514 brand name and generic drugs between 2005 and 2009, shows that generic drug prices went down an average of 31% during this period, and brand name drug prices went up by 41%. One of the authors of the report says that it is important to look at individual drug prices and not studies showing total spending on drugs, because this is a significant cost for people paying out-of-pocket, It drives up insurance premiums, and pushes retirees into coverage gaps in Medicare Part D drug program. Analysts indicate pharmaceutical companies are increasing prices on drugs before patent expiration to get as much profit before the patents expire.