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Research by Matthew Slaughter of Dartmouth shows that only 4% of all American firms and 15% of American manufacturers export. Overall 80% of America's trade is conducted by just 1% of the firms that export or import. Exports as a share of GDP are 10.9% in 2009, much lower than other exporting countries. These numbers will increase as America focusses on exports to rebalance the economy.

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Liverpool has depended more on government help for its revival than other cities in Britain. The austerity budget will have a serious impact on Liverpool. The Northwest Regional Development Agency will be affected by cutbacks. About an eighth of all public sector jobs may be lost, and this could wipe out the 37% increase in public sector jobs gained in the 13 years before 2008.

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Risks Katie Nixon of Northern Trust sees are in a sharp fall off in growth in China. She is less concerned about the risks of another flareup in the eurozone crisis. What worries her clients is how all this will end- the 2008 dropoff in growth followed by loose monetary policy by the Fed. Whether this will end in stagflation or a situation like that in Japan?

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This WSJ editorial says the Indian government will have to do more to increase the growth rate. Rising inflationary pressures at 5% for core inflation are still present, with inflation in food prices running higher at 10%. Which may be the reason after a cut of 0.5%, Reserve Bank of India Governor Subbarao stated this would be all the country should expect for some time.

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The U.S. Supreme Court lets the Obama healthcare law stand in a 5-4 vote with Justice Roberts casting the deciding vote. The Court ruled that the government could impose the individual mandate that all people carry health care insurance not because of the commerce clause but because: The provision "need not be read to do more than impose a tax...This is sufficient to sustain it."

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Longevity and the habits of persistence, prudence, hard work, close involvement with friends and communties, being somewhat obsessive and not care-free. The ability to navigate life's challenges is another aspect of longevity. Having a high level of physical activity, a habit of giving back to community, a career and work that one enjoys, a healthy marraige and good family life, all help improve longevity.

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Dr. Michiaki Takahashi of Osaka, Japan, who developed the chickenpox vaccine in 1972. He decided to do research on a vaccine for chicken pox after his son contracted chickenpox in 1964 and barely survived. At the time he was at Baylor Medical College in Houston. The U.S. alone has about 4 million chickenpox cases a year. This vaccine is now used all over the world.

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Puerto Rico is expected to sell $3 billion in new debt at rates of between 8.62% to 8.87%. Investors get the higher yields with the general obligation pledge- the constitution states all the island's available resources would be used to see that investors are protected. The borrowing at lower rates than expected gives time for the region to help restore the stability of its finances.

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Mandel of BW says the GDP numbers for third quarter 2009 do not reflect intangibles spendign for R&D, product development, design and worker training, all of which are suffering badly. This is because the statistics do not measure this, what we have is an obsolete measure of what is really going on in the economy. What these intangibles do is seriously affect long term growth prospects.

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US National Intelligence report due after the November elections confirms much of the British Ambassador's cable to the French from Afghanistan. Its a situation in a downward spiral the draft report says and the deterioration is accelerated by rampant corruption and the heroin trade which is now about half of Afghanistan's economy. The government "has lost all trust" according to the British Ambassador Cowper-Coles report.

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A recent WSJ report on the miscalculations on all sides on Ukraine show the errors by presidents Bush and Obama and German chancellor Merkel that created the situation that led to war in Ukraine- Ukraine not outside or inside but somewhere in the middle for joining NATO. This WSJ editorial says Obama policies reinforced by Angela Merkel's policies as four term German chancellor is one reason Mr. Putin was emboldened to launch the invasion of Ukraine.  Looking even further one sees American and German leaders integrating the economies of the US and Germany with that of China and Russia which also is one reason for emboldening Russia in its invasion of Ukraine. Considering that Russian and Chinese leaders joined in a "no limits" alliance during Putin's visit to Beijing for the winter Olympics just before the invasion. Both Russia and China saw their countries as rivals to the US and European Union in political and economic terms even as Merkel and Bush-Obama supported growing integration of the US and EU economies with Russia and China, and saw no problem with that. ...

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Did you know that SUV's are the second largest source of emissions after Power. We hear a lot about aviation which is much smaller but little about SUV's in the impact on climate change. SUV's make up about 40% of cars in Britain, and higher in the U.S. at 43%, 40% worldwide an astounding sixfold increase from 32 million to 200 million since 2010. People may even be driving an SUV and talking a lot about climate change.

Any savings from electric cars expected to grow from 2 million to 20 million by 2030  will be offset by more SUV's on the road. This is the view of the International Energy Agency in its recent report. Again all the talk about electric cars as a way to address climate change misses what is really happening in automobiles. Even in China the SUV's make up 42% of sales, and in India 30%. It is more profitable to make SUV's and they are harder to electrify adding 25% to energy consumed compared to cars. 

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The U.S. is keen on rebuilding its manufacturing now that the pandemic has exposed the weakness in depending on outside sources of manufacturing. After decades of job losses that hurt millions of workers and ripped apart the social fabric of America, this also left America bereft of the very ideals of opportunity for all on which the country was founded. This story by Asa Fitch and Luis Santiago in WSJ shows how America which produced 75% of the world's chips in 1990 when China's participation was negligible or non existent, made only 12% of the world's chips and semiconductors that power computers and smartphones in 2020. China's ascent only began as recently  in 2010 under a state model that targeted particular industries as Taiwan and South Korea had done before. America's failure to protect its technology led to the situation today. As this report points out Intel is the major American manufacturer of chips and it has a role to play in bringing back production and technology base to the U.S. ...

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Airports and airlines are trying to promote flying by offering coid testing to avoid quarantines imposed by state and federal governments. Airports are opening test centres offering the PCR test which takes 48 hours for results and rapid tests that take 15 minutes but are not as accurate. Some airlines are looking at designating certain flights as covid tested flights with all passengers either tested and negative or having been removed from the flight. Lufthansa has testing at airports in Frankfurt and Munich with the German government agreeing to it that people tested and negative did not have to quarantine for 14 days. Following this summer traffic jumped. The head of the resting task force at Lufthansa, Mr. Leffers, says testing is now becoming an integral part of the flying experience. Bermuda has some of the toughest testing rules with tests required on Day 1, Day 4, Day 7 and Day 14, resulting in low traffic over the summer. Yet with covid rates rising elsewhere Bermuda has become a safer destination resulting in a large increase in traffic this month. ...

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Pennsylvania is one of the critical states in the 2020 U.S. election. It is also one of the states hit hard by the coronavirus. Pennsylvania has also seen the impact of layoffs in the vital steel industry during two decades of neglect by previous administrations till the tariffs on steel from China by president Trump began a reversal of this trend. Unemployment is high in Pennsylvania as a result of the pandemic. 51 of 67 counties in the state recorded unemployment rate increases for 2020 that are in the top 20% for the U.S. Pennsylvania and Michigan are two critical states for the 2020 election. Pennsylvania has done much worse than other states including Michigan when it comes to the impact of the pandemic on unemployment rates in all counties. Voters could decide to blame the Democratic governor for lockdown restrictions  that worsened unemployment or president Trump for his approach to the coronavirus. There is also concern among conservative voters about the kind of change they seek between steady improvement in unemployment and a shift to radical changes in the economy. ...

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This view in DW.com looks at the rising inequality in Chile and the devastating inflation of over 50% in Argentina, the failure in providing basic public services such as sanitation in Brazil, as failures in the economic models and also in the lack of social solidarity within Latin American nations.. The pursuit of "what is the most of what I can get" in place of "what is the best I can do so that the country and people benefit as a whole including myself as part of that society." Argentines have billions of dollars overseas, and billions are stored in homes outside of banks because no one trusts the government or banks to keep inflation in check. In Chile the economic model accepts high inequality as a norm. In Brazil much of the public spending goes to generous pensions crowding out basic services such as transport and sanitation. In each case one section of society looks after its own interests at the expense of the society as a whole leading to a breakdown and misery for all. ...

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A sanitary health expert Arne Panesar of the German Corporation for International Cooperation says for about six of ten persons in the world there are no sustainable sanitary systems for the waste. It is not enough he says to build toilets, equally important  is how the waste is treated and disposed. Prime minister Modi of India has stated that toilets are more important than temples in India and the goal is set for all Indians to have secure sustainable toilets in 2019.  Panesar says of Dacca, Bangladesh, that for its 16 million only 2% have securely managed sustainable sanitary provisions. Waste that is not treated and correctly disposed off ends up in streams and neighborhoods creating health hazards- diseases like cholera, typhus and polio thriving in such conditions. It is not clear says this report that sanitation needs can be met by even 2030. In India the focus is now not just toilet building but on on safe sanitary provisions to make health a priority, as well as women's education which suffers without adequate toilets. ...

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Sofia Diego from the Southern European region of Spain and Portugal, says the idea of a multi-speed European Union as put forward by some in Brussels, including Jean-Claude Juncker, is not the answer- because at some point it makes the whole exercize of a united Europe futile with some countries choosing to ignore the very ideal of European unity. In fact she says we have come too far in that direction and it is necessary to pause and reflect what this means. France's leading presidential candidate Emmanuel Macron has called for a closer union as a better solution to eurozone financial stability with a tighter union. German public opinion and other opinion in the EU does not favor more concessions following Brexit. This opinion from a Southern European country shows how young people especially have developed a new attitude and feeling of togetherness as the European generation. Young people from all parts of Europe have a changed attitude compared to previous generation, and this is a valuable experience that needs to be nurtured with closer interaction to take the EU experiment to the next stage. ...

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South Korea with 2069 hours year has the longest working hours of any developed country, according to the OECD,  and only Mexico exceeds this of all countries. In an effort to increase productivity and boost a dropping birthrate the National Assembly in South Korea reduced the maximum number of working hours from 68 hours a week to 52 hours- starting July 2018 and  initially for large companies. In Japan there is actually a word for working to death called "karoshi." The period of rapid industrialization in the fifties and sixties was a period of long working hours for most Japanese men. Today the working hours have dropped to average of 1713 a year. Africa shows the greatest number of countries in which one third of the labor force works more than 48 hours per week. Asia is the region with the longest working hours with 30% of the countries with thresholds of 60 hours or more.The U.S. is one of the countries where there is no limit- most other developed countries in Europe consider work-life balance important and have maximum limits without sacrificing productivity. ...

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Tabuchi provides an exceptional account of the difficulties overcome by Rieko Fukushima as she returned from maternity leave to setup the 3-D TV team at Toshiba to commercialize the technology. Her inventive skills, networking and collaboration with other parts of Toshiba, hard work and perseverance paid off when her team solved the problem of being able to view the 3-D television without glasses. The solution was a new algorithm based on Toshiba processer Cell that sent different images to the left and right eyes. Here she describes the astonishment with which her team received the news that a woman was in charge of the team, just returning from maternity leave, and only 39! Was it tough as a woman? Yes, she says! Rieko was exceptional in many ways. Japan's challenge is to get more women with even a fraction of Rieko's talent to make a huge difference in a country where women play a minor role in positions of responsibility and initiative at all levels. It would make a large difference in Japan's prospects in the global economy- about 8.2 million more workers, and an estimated 15% increase in GNP....

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Martin Feldstein points out why the recent agreement for a "fiscal compact" is no more than an empty statement about fixing the eurozone's finances. In this respect it is no different than the Stability and Growth Pact it replaces, with serious weaknesses. Feldstein cites the weaknesses in the language of the agreement. Each eurozone country is required to limit its"cyclically adjusted" budget deficit to 0.5% of GDP and bring its debt down to 60% of GDP. Compliance will be performed by the European Court of Justice and fines imposed. In practice the questions loom large- for a country like Spain with a 23% unemployment rate, isn't all of the 6% budget deficit cyclical? Again the agreement says deficits are calculated "net of one-off and temporary measures." Under this provision a lot of the stimulus programs would be considered in the category of "one-off." Other language lets eurozone countries frame budgets based on "exceptional circumstances" and "periods of severe economic downturn." Italy has declining economic growth, does it make sense to have a large budget surplus in that situation to lower debt to GDP, and how does that goal relate to "exceptional circumstances."...

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Former German chancellor from the SPD party, Gerhard Schroeder, is interviewed by Rayond Zhong of the WSJ. Here he describes his views on the way Agenda 2010 was implemented in 2003 in Germany to gain public support for changes to Germany's welfare state. He also talks about the eurozone crisis and how Angela Merkel has handled the crisis, and the right approach for an Agenda 2020 for Europe. The interview was made at Schroeder's law office in Hannover, Germany. This is a detailed and exceptional interview by Zhong covering all facets of the eurozone crisis and Germany's response. Schroeder says it was right to give Greece more time to make the reforms, so that the Greek people could see that this path would help in a positive way. In doing this he cites his own experience when as the reforms for Agenda 2010 to make Germany more competitive were taking place- including cuts in spending and lower taxes- he turned down his finance minister Hans Eichel's proposal in 2003 for an additional 20 billion euros in cuts to put Germany in compliance with EU law....

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Caryn James provides an exceptional account of Robert Altman, iconoclastic director of M*A*S*H*, which came out in 1970, of Nashville, and a British period movie Gosford Park in 2001. His long career involved moments such as the one described in the currrent exhibit and documentary on Altman at the MOMA- he was fired by studio chief Jack Warner because "that fool has actors talking all the time." With M*A*S*H* the Altman style was estalished as anti-authoritarian, boisterous language, and the overlapping dialogue that so offended Jack Warner, irreverent attitude to established ways, and screenplays that invited improvisation. As Caryn James points out much of Altman's style has filtered through to a new wave of cinema directors, and into movies and television, to the point where it seems invisible. Ron Magliozzi, curator of the MOMA series, says of Altman that he comes across as such a maverick that people lose sight of his work in movies such as Gosford Park, a period piece where a story is told about a murder mystery on a English counry estate, a forerunner for Downton Abbey....

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The Economist magazine says Boris Johnson with his booming cheerleader habits is an attractive choice for 124,000 members of the Conservative Party as they contemplate a new leader. Now that the new Brexit Party and Mr. Farage are taking votes from Conservatives and the party polling just 11% ahead of the EU elections, with Brexit Party at 34%, the Conservatives could see his faction of no-deal Brexit as a good choice to lead the Conservatives in the battle with Labour party. Not so hastily it says. Because of three reasons. The EU is not likely to negotiate concessions to Boris Johnson, much the reverse is true. A no deal Brexit would hurt the British economy, and lacks support in parliament. The Scottish people are not represented in the leadership ranks of both parties, so there is a danger of breaking up the UK, as Scots oppose Brexit. Mr. Johnson is also seen as a risky gamble because of the mess Conservatives find themselves in, handing Labour Party under Corbyn a win. Johnson could restore Conservative Party as a campaigning machine and a governing force, even with his bumbling style, yet it could all go wrong. ...

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An investment of $1000 in Deutsche Bank shares in 2015 would have led to loss of most of the capital - loss of 75% of it, says this report in DW.com. For years Deutsche Bank chased profitability but the results are dismal. Recently 18,000 jobs were slashed and the bank is now accepting the inevitable shrinking. It all started with with chasing profitability in the U.S. as an investment bank leading to deep losses during the 2009 financial crisis. While German and Swedish teachers as shown in this weeks stories from Europe show struggle to make ends meet on low salaries, jobs in banking have continued to pay even when their are steep losses as at Deutsche Bank. This report argues about who is responsible for high severance pay at banks investors, shareholders, supervisory boards or regulators. Ultimately it is about what choices a society makes, and about the importance it gives to education compared to other occupations, and to good governance across the board without exceptions. Developed countries sometimes fail to learn the lessons of the past in the chaos of the times. ...