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Japan's Sanseito anti-immigration party gets 7 seats, enough to deprive the ruling LDP-Komeito alliance of its parliamentary majority. Prime Minister Ishida of the LDP party may not last more than a few months. The LDP seems to have lost its way like the Democrats in the US. A recent article in NYT says LDP wanted to bring in 60 million tourists to Japan each year to boost the economy. Yet Japanese people in cities have a hard time handling 40 million tourists in 2024, with reports of disturbance of the once quiet life in city neigborhoods and failure to adopt the culture and language of Japan. Reports of migrant/tourist or immigrant crime get much press coverage. Japan has 124 million people and birthrate of 1.26 below the birthrate of 2.1 needed to stabilize population. Business asks for new immigrants to fill unfilled positions. The public has different ideas and the migration is causing disturbance in traditional way of life in Japan. Similar to what is seen in the US and Germany in more striking ways. The nationalist parties including Sanseito say even if the population falls to 100 million this is more than the population of 90 million in Germany, and is enough to sustain its economy. Use of robotics and AI is not talked about as much but offers Japan, US and Germany, a way to make up for the loss of foreign labor. In essence both American, British, Spanish, German, French, Italian, Austrian, Dutch, Danish and Japanese society share a yearning for traditional ways of life that are being ruffled and disturbed by the migration, immigration, or over tourism affecting their countries. Politicians need to pay attention to people affected and not live isolated in their own neighborhoods from the people in other less sheltered communities and neighborhoods across their countries. ...

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What changed asks the Economist between the summer when the stimulus was petering out and analysts sniffed deflation for 2011, and today with the euphoria for stock markets and estimates of 4% growth for 2011? Much of the reason for the change is a second round of quantitiative easing for $600 billon announced by the Fed- buying bonds with newly created money to push down rates and stimulate lending. And the December 2010 compromise for across the board extension of the Bush tax cuts. But even though this improves the prospects for 2011, the situation after that is still in the medium term as treacherous as ever, even more so, says the Economist. High interest rates and shaky business confidence can be fixed with strong stimulus, but households and banks have to work off the excessive debt taken on in the last decade. And this deveraging has years to go. So expect more difficult patches where investor euphoria quickly turns to gloom. One other aspect of the current situation is worrisome. The bipartisan deal for the Bush tax cuts was not real bipartisanship, as each side agreed to the others huge giveaways. Real bipartisanship must mean more painful decisions in spending and taxes. The US government's failure to sort out its finances will continue to cast a shadow over the future of the economy....

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Robert Frank, an economist at Cornell and visiting Professor at the Stern School of Business at NYU, says this deficit increasing our debt burden is entirely different from the way in which the Bush administration increased the national debt. During the last 8 years the Bush deficits increased the national debt by almost $5 trillion. But people went for larger mansions, and consumers went on aconsumption binge, and the Bush tax cuts were skewed to help the wealthy. Now to address the economic crisis a similiar amount of about $5 trillion will be needed but it will be spent quite differently. Money spent on ropads and building infrastructure that is needed is money well spent on any dimension. Especiallyfor America's crumbling roads and bridges and highways. If postponed these would cost more or twice as much to fix. Frank's point is that alot depends on what you do with the money. At recent interest rates servicing $10 trillion in debt costs about $400 billion annually. He says thats quite manageable. Just by instituting agasoline tax of $2 agallon as the Europeans do and are not alot poorer dfor this, the US could generate $100 billion ayear. When Americans are using mass transit in the largest numbers in 50 years, it also makes sense to build better faster transportation systems between major cities, like the high speed trains in Europe....

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Former Treasury Secretary Robert Rubin's role along with CEO Prince at Citigroup in relaxing strict oversight and risk controls to pursue riskier investments and increase profits at Citigroup. This led to the $65 billion in losses on mortgage related investments that caused its share price to collapse to $3.77 by November 21, 2008. About 75,000 jobs are already lost from 375,000 worldwide and Citi is in talks with government officials in emergency meetings this weekend before the markets open on Monday November 24, 2008. This time Citi is in crisis mode and a lot can happen in the coming days.

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What is Antifa. during the protests this term keeps coming up, yet no one is really sure what it is.  It started in Germany in the 1920's and basically means anti-fascist or in German antifaschistisch. Most Germany parties from the SPD, CDU and the Greens to other parties accept this as a point of view considering Germany's Nazi past.  Yet DW.com asks is it only referring to all those opposed to fascism in Germany or to black clad anarchists and leftists facing police on German streets. The last such confrontation with police happened in Germany in Hamburg during the 2017 G20 summit. A famous scene from that time is pictured in DW.com. There the meaning becomes complex as the Communist Party of Germany (KPD) adopted the phrase and the disinctinve two flag logo for the 1932 election campaign, in Weimar Germany's last free election, which the Nazis could not win fully but with the left parties split emerged as winner. After the formation of the GDR, the German Democratic Republic in East Germany, the interwar KPD party veterans like Walter Ulbricht came to power in GDR. GDR became part of the Soviet bloc countries during the Cold War and used antifascist in a way that was synonymous with anticapitalism. This same movement then langusihed in the Germany of the early post war years under Cologne's former mayor, Korad Adenauer. In the 1970's and 1980's the left movement revived in Hamburg and Berlin, coalescing with a antinuclear movement and widespread protests against president Reagan's stationing of nuclear missiles on German soil aimed at the Soviet Union bloc. After the reunification the protests against coal, for climate change action, and for anti-globalization. There is even an overlap with anti-Zionism. Germany's internal intelligence agency says the antifa movement is the "main field of agitation" for autonomous leftist groups, with some groups supporting "militant actions." Yet when there are broad uncontroversial protests there can be people from all walks of life, not just the anarchist or far left groups.  So that the protests in the U.S. were met with comments of antifa - Saskia Esken of the SPD saying "58 and atifa. Obviously." To which the General Secretary of the CDU said "Against fascism, and for democracy and human rights. Without violence. Obviously, for me. It's sad that the chairwoman of the SPD lacks the strength to differentiate."  To which Esken says it is only a point of view that antifa refers to, not some action. To which the the youth organization of the Angela Merkel CDU/CSU alliance the Junge Union (founded 1947) replied: " 73 and appalled" getting the final word.  Search for a dictionary and you are left with no clear meaning either. DW.com says Germany's duden dictionary only says antifa refers to the " entirety of the movements and ideologies, which oppose fascism and national socialism."    ...

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The struggle between the Detroit automakers and the states over auto emissions of carbon dioxide and other heat trapping gas emissions. California adopted the first state law requiring auto manufacturers to reduce emissions of carbon dioxide in 2002 and in 2004 set standards for the emission reductions. Vermont, as well as Connecticut, New Jersey, New York and Pennsylvania adopted the same standards. Automakers sued toblock these standars in Vermont and California. While the California case is pending, Judge Sessions issued a ruling on the Vermont case this week against the auto manufacturers. This follows a decision by the US Supreme Court in April 2007 that the Environmental Protection Authority has the right to regulate heat trapping gases like carbon dioxide as air pollutants. This endorses the idea that states can set their own limits. What is needed for a state to do this is to get a waiver from the EPA, as the federal Clean Air Act has a provision that allows California to set ists own standards with a waiver from the EPA, and for other states to follow California's lead. A detailed opinion includes analysis by the Judge in this case stating why the Transportation Department's authority is limited to automobile fuel economy standards and does not carry over into auto emissions as pollutants of the atmosphere, the area of pollutants being reserved for the EPA and the individual states to work out together. Under California law as it is now emissions reductions for cars could be 30% or more below the current levels in the 2016 model year. By 2012 emissions are required to be below 2005 levels by 25% for cars and light trucks, SUV's and larger trucks 18%. Note that what is technologically feasible to accomplish in the area of auto emissions is an unknown. At the same time its a function of determination, R&D investment, collaboration between companies to pool technological and capital resources, development of engineering and manufacturing investment and knowhow to learn mass manufacture at low cost, introduction of the already feasible features quickly such as stop start engines which the Germans have already in the works for mass manufacture across product lines, and so forth. The first comer in these technologies enjoys an advantage as Honda constantly advertises itself, and the the only way to say what is technologically feasible or not is by pointing to these pioneers. In this case because of the stronger environmental movement in Europe especially in Germany, some of this pointing will be done in the direction of the German auto manufacturers progress in this direction to meet the new EU standards of 120 micrograms of CO2 per kilometre. ...

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Intervew by Deborah Solomon with former Clinton era SEC Commissioner, Arthur Levitt, captures the mood of the public in the USA. Super skepticism and disbelief about public servants, including those of some stature in the past like Levitt. The questions are suggestive of the angst and loss of innocence, and willingness to ask the straight question right out. Solomon tries to get Levitt to take responsibility for what has happened under his and others watch. What do you feel Mr Levitt about the American economic landscape and see 401 K's going up in smoke? Have you changed your spending habits? Are you kicking yourself for not having caught Madoff at his game? After you left your SEC post what led you Mr Levitt to become an adviser to the Carlyle Group, which had ties to the Bush family and defense contracting? This question grates on Levitt. He responds that it is such a Michael Moore like exaggeration, that he was an adviser to the Carlyle Group before he went to Washington. And then Ms Solomon asks the question straight out, saying that frankly she can't understand why the SEC culls its leaders from the world of high stakes investment, when there is this "capture theory" that states that regulators get co-opted by the industries they regulate if one isn't very careful. And the response from Levitt is evasive as he talks about the patriotism of the 4,100 people who served with him at the SEC. Ms Solomon isn't accepting this and calls it boosterism, telling Levitt he hasn't answered her question. Levitt tries another escape route and talks about the European system of gray bureaucrats running government agencies forever, and how refreshing the American system of repotting private sector talent to bring fresh ideas is. Solomon's steers the dialogue in another direction. She reminds him about his father Arthur Levitt Sr. , who was the New York State Comptroller for more than 20 years. Yes, says Levitt Sr.'s son, his father was passionate about defending the interests of pensioners, and his mother was a schoolteacher for 38 years. That gets Levitt reminiscing about his growing up years with his grandparents in Brooklyn, when his grandfather would check 75 used bulbs to see if one worked before using a new one. What has thrift got to do with this Solomon starts to think, after all Levitt is an adviser to the Carlyle Group. Put that in your report, yes, says Solomon, I will. Ms Solomon is getting right down to the point by now. Levitt can reminisce about the thrift about the old days, but the public wants answers. Do you feel you should apologize, does this keep you up at night? Levitt's response: not really, I'll try not to think about it. See the link to Rubin's letter of resignation from his position at Citigroup to CEO Vikram Pandit. Rubin another Clinton era adviser and Treasury Secretary, is being asked similar questions....

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What is liquidity, Roche the author of "New Monetarism", asks. And points to all the credit that was created and moved off the bank's balance sheets and onto the balance sheets of nonbank financial intermediaries. This changed the very nature of credit as in this manner a theoretically infinite amount of credit could be created. Credit that is not supported by real money, because as credit soars real money remains the same or grows slightly. The whole traditional notion of liquidity had changed. What is suggested is that central banks can do litttle about it because whats on the balance sheets of the financial intermediaries is not going to go away and Citigroup in fact put that back on its balance sheet after Vikram Pandit took over at Citigroup. And this means that banks will be lending much less from now on and setting aside money for the bad loans as well as for any new loans they make shrinking the pool of available money to lend significantly in 2008 and beyond. Significantly China is mentioned as the next place to watch as the bubble that might pop with bad effects for the global economy. The exchange rate in China keeps Chinese goods from costing more and the US consumer bubble kept soaking up imports from China both of which will now go in reverse. And the Chinese stock market bubble is also something to watch that might pop....

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Making the shift to smaller cars and putting its money where its mouth is meant converting Ford from a large vehicle company to a company that makes a lot of smaller cars, and this meant Ford would have to convert to smaller cars a lot of its truck and SUV plants and close some of the other plants. Alan Mulally is doing just that as he moves to give Ford a completely new direction What is not surprising but is still more than a bit disconcerting is the skepticism he is meeting from executives inside the company that Ford can only make money building larger vehicles even in the face of a market that is moving in the opposite direction. So again and again Alan is having to ask the question "what does a sustainable Ford Motor look like?" Shows that the American car companies are not only caught with the wrong bag of product mix but are in some kind of culture shock as the ground below them is changing. Alan also is focused on a global market almost as though he realizes that from now on there is only a global market to deal with not the sort of American market that existed in the past, so he reminds other Ford executives that the global market share of larger vehicles is only 15%, and as if to sound incredulous asks them and you want us to continue to invest limited resources in that market?...

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Slower growth expected for VW in 2012-2013.

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World leaders including president Obama attend the funeral of Israel's former president Shimon Peres. He is known for negotiating the Oslo Peace Accords in 1994. He was a protege of prime minister Ben Gurion, and has served as prime minister, defense minister and foreign minister, and been part of the Israel's key events since independence in 1948. President Obama  said the work of Shimon Peres remains unfinished. "Now this work is in the hands of Israel's next generation, in the hands of Israel's next generation and its friends." In the years following the 1994 accords the peace process went astray, and trust has not been restored.

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Chinese banks have 20% of total loans as receivable in 2016, up from 6% at the end of 2011, according to WSJ analysis. Many banks disguise loans as receivables. The government regulators have warned about this, but are hesitant to take strong action so that there is no shock to the system. This has created a parallel buildup of debt next to official debt of over 250% of GDP. These are seen as "hidden credit risks" by Shang Fulin, top banking regulator. As a result about $2 trillion is missing from broad measures of credit reported by the central bank, according to economists at UBS, using shadow lenders to mask loans as investments.

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Mercedes Benz is pushing sales of its newly designed small cars as part of a strategy to attract younger buyers. A retooled, sleek version of the B Class compact is part of this strategy. The average age of U.S. Mercedes buyers is 53 years, compared to 49 years for Audi and BMW. Smaller cars are also part of the strategy to meet the new fuel economy standards in the U.S. and Europe. Mercedes is investing $1.9 billion in a new Hungarian plant and expanded German capacity to build smaller cars and SUV's. Sales of the smaller size A and B class Mercedes cars increased slightly by 1.4% to 222,400 in 2010. This compares with increase in overall sales volume up by 12% to 1.26 million cars in 2010.

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Krugman in the NYT describes the dangers of plutocratic power to American democracy. When exercized by the Murdochs, the Elon Musks, the Harlan Crows of this world. He cites presidents who are Republican and broke up the large oil companies in the 1900's, Theodore Roosevelt (1901-1909) who warned about "a small class of enormously wealthy and economically powerful men, whose chief object is to hold and increase their power." This is happening with the power of the so called Tech companies today and both parties seeking to break  up the Tech companies.  Then there is a Democratic president from this period Woodrow Wilson (1913-1921) who followed Theodore Roosevelt. Wilson says- "If there are men in this country who are big enough to own the government of the United States, they are going to own it." Theodore Roosevelt fought political machines such as Tammany Hall in New York as well as Rockefeller's Standard Oil Company. Wilson, a professor from Princeton, continued this tradition by protecting the working class of that time through his New Freedom campaign in 1913.  As a professor Wilson wrote the textbook The State used in colleges of that period, which set forth for the first time the basic idea of the state that we see today- "that forbids child labor, supervises the sanitary condition of factories, limits employment of women in occupations hurtful to their health, institutes official tests for the purity or quality of goods sold, that limits the hours of work in certain trades, and by a hundred and one limitations the power of unscrupulous or heartless men to outdo the scrupulous or merciful in trade or industry." Both were progressive Theodore Roosevelt and Woodrow Wilson. Wilson under his New Freedom platform for the 1913 election, asserted that it was the task of government "to make those adjustments of life that will put every man in a position to claim his rights as a normal human being." What president Biden is doing today is closest to what Wilson and Roosevelt were trying to achieve, and what Modi is doing today in India is also closest to what Wilson and Roosevelt were trying to achieve. In 1913 Wilson won 42% of the vote, Roosevelt 27% because of a split within the Republican party with Robert Taft. Wilson proposed breakup of oil companies to provide a level playing field for all companies. Similar decisions are being considered by president Biden today for Tech Companies. The future of both the US and India is being decided in these difficult times after a pandemic and in the middle of a European war, and a supply chain overconcentrated in one country in Asia. Wilson's idea "to put every man in a position to claim his rights as a normal human being," is being set forth by president Biden through the word "dignity," by Modi in India as "sab ka vikas, sab ke sath" (development for all, with all). The Greens and SPD's Scholz also set forth this idea as "dignity" for the worker for Germany.   ...

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Coronavirus cases on a daily basis exceed 70,000 in one day in Brazil with 26,000 in Sao Paulo alone. Brazil's cases now exceed 2.5 million, the worst hit after the U.S. followed by India. President Bolsonaro has failed to provide leadership in the pandemic, himself contracting the virus and not following social distancing, mask covering till recently.

President Macron of France gains in popularity with over 50% satisfied with his performance after his hard fought gains in getting the 390 billion euros nonrepayable common debt funds for the European Recovery Fund for hard hit pandemic countries. Macron was able to get the full support of Merkel of Germany to get this approved after Dutch premier Rutte's effort to stall the aid effort in weeks of long negotiations. It is a show of European solidarity and brings Europe together, giving much needed aid to Spain and Italy.