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The U.S. Federal Reserve Flow of Funds report for 2011 shows Fed purchases of 61% of total net Treasury issuance. Goodman points out that the net issuance of Treasury securities for covering U.S. budget deficits is normally 0.6% to 3.9% of GDP on average for the last six decades since 1950, compared to on average 8.6% of GDP today. A big jump in Fed purchases with a corresponding steep fall in the participation of foreigners and the private sector. Foreign purchases declined from 6% of GDP in 2009 to 1.9% of GDP in 2011. U.S. private sector- mutual funds, banks, corporations and individuals- purchases declined from 6% of GDP in 2009 to 0.9% of GDP in 2011. This helps keep interest rates low and funds U.S. government needs. Lawrence Lindsay pointed out in the WSJ in 2011 that Fed has itself boxed in being forced to keep interest rates low for years. If the government borrowed at a more normal rate of 5.7%, instead of the Fed induced rate of 2.5% today, Lindsay estimated the U.S. government would face an additional $800 billion in interest costs by 2021....

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Comments by Seidman, Volcker, Shiller and Soros on thie mortgage crisis. How will it afffect economic growth and for how long. Soros points to a complicating factor the dollar if the Fed has to cut interest rates and the current account deficit. Volcker points out that its to early to tell not knowing what will happen in 2008. Volcker says its potentially approaching the scale of the savings and loan crisis.

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Grove's take on what is going on in Silicon Valley, and interviews at startups and Labs like the Almaden Research Center by Steve Hamm. Grove is especially infuriated by the concept of an"exit strategy". Intel never had an exit strategy he says. It takes time to build important companies over along period and a different kind of attitude, and resilience. Steve Hamm visits all parts of the Silicon Valley to understand what is going on. Big companies won't come up with the next big development and startups aren't measuring up to the task. Yes things are happening in the area of electric vehicles, solar energy and green energy. HP sees more productive effort coming from software development than hardware advances. Overall short term thinking and risk aversion dominates, and Grove and Hamm do not see the kind of paranoid attitude and worrying nature and resilience, that got Intel to go back and develop new products and look for new opportunities after taking a beating from the Japanese, who at one time took over Intel's existing markets. ...

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Garweth Southgate is seen as one of Britain's most admired leaders in this report in The Times. His popularity is at 72%, compared to Churchill's at 65%. He is seen as "a decent bloke."

Born in Hertfordshire, educated in West Sussex, Southgate's soccer career ended in 2006 playing for Middlesbrough after defeat in a Uefa final with Seville. His managerial career started that year and he was manager till 2009 when Middlesbrough were relegated on the final day of the season. He was out of management for 4 years till he took charge of the under 21 team. In 2016 he took charge of the England senior team. Southgate has seen the ups and downs of soccer both as a player and a team manager, which has given him the humility and sense of respect for others that has marked his career. 

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Maria Bartiromo talks with President Medvedev of Russia. She asks him about the North Korean's nuclear missiles testing. Medvedev says "what has happened raises great alarm and concern." He says North Korea is close to Japan and S. Korea but is also close to Russia. He has had quite anumber of telephone talks with the Prime Minister of Japan and the President of S. Korea on this subject. He says the world needs to think about what measures can be taken to deter these programs. He is concerned about unemployment. 2.2 million are registered as unemployed but the number is much much higher. Russia he says is a hostage to the structure of the economy, and sees a danger in the overdependence on export of raw materials. He sees the crisis as an opportunity to change the "outdated and obsolete structure of Russia's economy." His idea is to use the extra revenues to support social programs and to radically change the structure of the economy.

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Russia's parliament voted to ratify Russia's entry into the World Trade Organization by a vote of 238 to 208. Opposition was led by the Communist party. The head of the Economic Expert Group in Moscow, Evsey Gurvich, says the new rules are important for Russia as Russia has no rules of the game today, the new rules will enhance competition. President Putin described the change in this way: "We joined the WTO because our economy is highly dependent on the external market in terms of both production and consumption. Excessive protectionism invariably leads to stagnation, low quality and high prices." The result from loss of revenue with lower tariffs is a loss of revenue of $5.7 billion in 2013, and $7.8 billion in 2014, according to Economic Development minister Belousov. The financial crisis of 2008-2009 convinced Putin that Russia had to participate in the decisions about the world economy because of the direct impact this has on Russia.

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ECB president Mario Draghi describes the problem of financial fragmentation in the EU, as each country's national supervisors ask their banks to withdraw their activities to within national boundaries. This ringfencing of liquidity positions means the interbank market is not functioning. Draghi says this financial fragmentation is within the mandate of the ECB to correct. He points to the risk of convertibility that has more and more to do with the premia being charged for Spain's and Italy's government bonds, not just the perception that the counter party can fail.-"To the extent that these premia have to do with factors inherent to my counterparty, they come into our mandate, they come within our remit." Draghi's effort to define the issues of financial fragmentation, and sovereign premia "hampering the functioning of the monetary policy transmission channels," is critical because the ECB sees it important to act within its mandate. The final point he makes is a political one about the future of the euro: "When people talk about the fragility of the euro, and the increasing fragility of the euro, and perhaps the crisis of the euro, very often non-euro area member states or leaders underestimate the amount of political capital that's been invested in the euro. We view this, and we are not unbiased observers in Frankfurt. We think the euro is irreversible. And its not an empty word now, because it preceded saying exactly what actions we are making that would make it irreversible." On the progress made, the acceptance of one financial and banking supervisor by member countries of the EU is seen as part of the idea of shared sovereignty necessary to put meaningful supervision across national boundaries in place. And on the structural reforms and deficit controls needed to be put in place he sees "the pace has been set, and all the signals that we get are they don't stop reforming themselves."...

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Ekrem Imamoglu, three time elected Mayor of Istanbul follows a career similar to that of Erdogan who became Mayor of Istanbul and was then elected prime minister in 2003, as the administration of the CHP party failed to manage the economy. A period of economic growth followed with increasing foreign investment and Erdogan was reelected till 2013 when he decided to run for president following the term limits for prime minister. At that time his rule had become increasingly authoritarian. He was elected with smaller majorities with no effective opposition leader ,and the Middle East in turmoil with ISIS and Syria's civil war. Erdogan fought a tough election against a civil servant candidate from CHP turning out the nationalist  and conservative vote.in 2020. By this time the economy was having high inflation and his popularity was down, and he won barely with 52% of the vote. By 2019 Ekrem Imamoglu, 47 years, emerged as a more effective opposition leader, winning election for Mayor of Istanbul. He won again in 2024 and is now emerging as an alternative to run the country. Erdogan is 71 years and the world around Turkey has changed with DJT in the US, and Russia- Ukraine peace talks, trade tariffs worldwide, and the investment climate completely different, inflation increasing to 39 percent, and no easy solutions to economic problems. Some of the conservative and small business vote is no longer assured for Erdogan as the economy and Turkey's situation in Europe has changed. ...

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Gordon Brown outlines Scotland's shared interests with the rest of Britain at the time of a referendum on Scotland's independence. He describes Scotland's key role in the shipping industry and the industrialization of Britain, the period since the loss of the shipping industry, and the search for alternative sources of employment and development in a period of globalization. A key figure for Brown is the average income of people in Scotland, which is similar to that of its neighbors in England, showing that development has kept pace with the rest of Britain. For Brown it is these social and economic rights that underpin the union of different ethnic peoples and heritage of Irish, Scottish and English origins.

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Ray Dolby of Dolby Labs was a pioneer in electronics field of noise reduction for tape recordings. Listening to the early reel to reel tape recordings with the loud hissing sound at intervals Dolby took up the task of coming up with noise reduction technology. He had studied engineering at Stanford and worked at Ampex Corporation in the San Francisco area. The early Dolby recordings technology came out in the seventies and was improved till the Dolby technology could be fitted on a small chip. The research work by Dolby led to 50 patents. He was sole owner and member of the Board of Directors of Dolby Labs till it went public in 2005, earning royalties for his inventions.

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Koch Industries which is built on oil is investing heavily in electric batteries. The company has made 10 investments of over 750 million dollars in the US battery supply chain and electric vehicles in 2021-2022. This money is coming at a critical time for many new battery company startups.

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American Airlines share price ended at $1.98, down 33%, on Oct. 3, 2011. AMR averted bankruptcy protection in 2003. This is the lowest level for the share price since 2003. AMR suffers from higher labor costs than other large airlines that went through bankruptcy and realigned costs. AMR says its labor costs are $800 millon higher than its competitors. AMR says it has $4.2 billion in unrestricted cash as of Sept 30, 2011, a decline from the $5.1 billion on June 30, 2011. Debt obligations due for AMR are $2.5 billion for 2011, $1.8 for 2012 and $1 billion in 2013. AMR raised $726 million in aircraft- backed bonds to refinance part of $1.3 billion in debt obligations due in second half of 2011. AMR has ordered 460 new fuel efficient aircraft in a lease financing deal offered by Boeing that does not stress AMR's balance sheet. Fears that AMR is burning cash with its expected operating loss caused Moddy's to change its outlook for AMR to negative from stable. AMR had $17.1 billion in total debt on June 30, 2011....

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The global economic map is rapidly redrawing bringing US and Europe closer. The US has imported more goods from Europe this year than from China. In September alone says WSJ Germany exported 50% more goods to the US year over year with the weaker euro increasing the momentum. European FDI foreign direct investment in the US increased by 13.5% in 2021 to $3.2 trillion. US FDI to Europe increased by 10% to $4 trillion. There is a push on both sides of the Atlantic to increase local manufacturing, and to increase trade, and shift supply chains away from the overdependence on China.  

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The federal government in India provides support for loans to farmers on the interest rates paid after the interest rate increase by the central bank RBI. An additional budgetary provision for Rs 34,856 crores has been made for this purpose for the period 2022-2023 to 2024-2025. It will keep interest rates below 7% for farmers. This will support agri-loans of upto 3 lakh rupees for farmers in India. This is to provide adequate agricultural credit for the rural economy of India. Short term agriculture credit would be at 4% interest per year when loan is repaid on time.

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The fast food industry in US relies on the franchise model which has been deeply affected by depressed wages, poor working conditions and other worker abuses. Governor Gavin Newsom signs into law on Labor Day 2022, the FAST Recovery Act which established a state council tasked with setting wage standards for the entire franchise and food industry. Workers will now get a seat at the table to set standards for wages, and health and safety standards for the industry. Wages will be set at $22 per hour starting next year for about half a million workers in the franchise and fast food industry in California.

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 Tom Suozzi is elected to the US House of Representatives from New York for the seat vacated by Rep. Santos. After Suozzi is sworn in Feb. 28 Republicans will have 219 seats to Democrats 213. The majority is so slim that when 3 Republicans opposed the impeachment of Homeland Secretary Mayorkas for immigration issues Speaker Johnson could get the impeachment passed only on the second try and that only by one vote. President Biden has called for a vote immediately in the House on an Ukraine aid bill after it passed in the US Senate 70-29 with 22 Republicans joining Democrats. 

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This Guardian report provides a timeline for lunar exploration. The last Apollo Moon missions date back to 1972 with Apollo 17. It lasted 12 days with the first crewed space flight to the moon taking Schmitt and Cernan to moon's surface while Evans orbited above. Since then it has been quiet for lunar exploration till Chang'e 3 lander and rover from China in 2011 put China on the moon, followed by Chang'e 5 in 2020. Today August 23, 2023 India puts its own moon lander and rover on the South Pole of the moon which is expected to have water.

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Increased use of remote work is leading to vacant office space with occupancy of office towers falling. This has led to the coining of the term "urban doom loop" as more and more office space goes vacant and real estate companies default on mortgages or lose money. Less use of office space hits retail stores in the same area leading to losses in the state including a hit to tax revenues. This is expected to have an outsize effect on midsize cities such as Charlotte or Indianapolis. This is being watched closely so that it does not affect the Us economy and growth.

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The Laken Riley Act has as its sponsor Katie Britt of Alabama, and cosponsors Democrats Ruben Gallego of Arizona and John Fetterman of Pennsylvania. It is expected to get over 60 votes 61-35 to overcome Senate rules and be on the presidents desk. No amendments were made.  It will require the Department of Homeland Security to arrest undocumented immigrants for theft related offenses and increase the power of states to challenge immigration decisions.

Kristi Noem at Homeland Security and Tom Homan Border Chief will lead the push on the Border with DJT declaring a national emergency that will generate funds from the Defense Department.

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Apple makes most of its products in China. This exposes Apple to high risk with the Chinese tariff set at 46% on April 2, 2025. If it passes on the tariff to customers it faces a loss in sales, if it does not pass onto customers the higher tariff price and cuts margins it will affect Apple profits. Apple's high margin strategy by making in China is now at risk. Apple had been given a warning to shift from over concentrating manufacturing in China. It did not heed the warning since 2016 and only made small shifts of manufacturing to India and Vietnam.

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In less than 3 weeks World Central Kitchen has found a way to serve 300,000 hot meals a day in Poland. In this WSJ report an American volunteer in Poland describes his experience meeting people from England, Portugal and other parts of Europe and North America who have volunteered to help refugees from Ukraine in Eastern European countries. Child care for transient families, most refugees being women and children, temporary housing and clothing are pressing needs. People from as far away as Lawrence, Kansas, are out here helping in a stunning display of support for the women and children who are refugees.

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This story in The Times shows how Gareth Southgate has rebounded from a penalty miss in Euro Soccer 1996 playing for England. After 25 years Southgate is back inspiring his players to take the English team to the quarter finals of Euro Soccer in 2021, and with a win against Ukraine can put it in the top 4 teams. He is shown as a learner with humility and respect for other people who helped him develop as a person and a player. He is seen as someone who believes in sharing success with others who helped make it happen and unlike  other egocentric coaches. 

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People don't design their own electric motor, then why should they pick stocks when index funds are widely available. Charlie Munger of Berkshire Hathaway says one of the reasons he was economically successful is that he read so much, "read so damn much all my life." He says it is charlatanism to charge three percent to pick stocks and manage other people's money, when index funds can do the job better. He doesn't believe in bitcoin, a sovereign issues money for a reason and it has worked, artificial currency he calls "a stink ball."

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Mistakes to avoid in retirement, says Statman, are that after a lifetime of frugal habits to save for retirement, when one gets there he or she will spend so much less that they cannot enjoy life fully. He suggests taking a payout of 3%-4% from retirement accounts and dividends combined. Another mistake is to think one has more time to manage retirement accounts, and he warns that this is a bad idea as one cannot beat the market, and it is important not to take risks in retirement. Other mistakes are to ignore how important healthy living is at this point.

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Lessons from an Italian family about staying fit and getting exercize during the lockdown within the home. The father is part of a running team in Rome. He has spent 18 days with his wife and teenage son at home already, as Italy remains in quarantine. He can't run the Rome marathon so he and his friends divide the 42 kilometres so that each person runs 1 kilometre at home. Other advice- plan your day carefully, stay in different rooms so its easier to spend a whole day, and the next day and the next together. do some hobbies, exercize to stay fit.