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DW.COM Original article ›
New York Times Original article ›
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In his annual budget speech to Parliament, chancellor of the Exchequer, Alistair Darling, said things are much worse than appeared 5 months ago. Britain will have to borrow 57 billion more pounds, and the budget deficit is to reach 175 billion pounds or $255 billion. The British economy will shrink 3.5% thisyear instead of the 1.25 percent predicted in November, 2008 This is the highest deficit of any nation in the G-20. Britain's net borrowing is exppected to reach 11.9 percent of GDPin 2010, and finances can't be balanced before 2016. In March 73,000 jobs were lost for a total unemployed of 1.46 million. With smaller numbers of people paying income taxes, and smaller corporate tax revenues, the revenues are just not there for Britain to spend heavily to make its way out of this recession. The renewable energy projects like wind farms and biotechnology are small, and shows the government has difficulty paying for larger programs. In an effort to increase revenures the government imposed a tax of 50%, up from the current 40%, on individuals earning more than 150,000 pounds, which was promptly criticized by the British Chambers of Commerce as a disincentive to bring talent to London as a world financial center. Darling also added acar-scrapping scheme like the one in Germany. Opposition leader David Cameron said in Parliament "everyone can see the utter mess this government made of the British economy. Our children will be in poverty for decades." ...
New York Times Original article ›
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David Brooks of the NYT describes the approach taken by British prime minister David Cameron and his Conservative Party government to help the working class poor in Britain, and tackle the social roots of poverty. He says an American adaptation similar to this is badly needed in the Republican Party, with the candidates in the election providing solutions from an old rulebook. Only after Trump's popularity with appeals to less educated older Americans has the Republican leadership responded, with Speaker Ryan helping organize a forum on poverty under the Jack Kemp Foundation- emphasis was placed on education, work, opportunity and accountability for anti-poverty programs in the discussion moderated by Ryan and Senator Tim Scott. Less attention was paid to the other social aspects mentioned here by Brooks, and cited by Cameron when he described the inadequacy of traditional solutions from the right and left of the political spectrum. Cameron outlined the principles of his anti-poverty plans called "Life Chances Strategy," in a speech on Jan. 11, 2016, in north London, with the entrie transcript on the gov.uk website. Cameron acknowledged in the speech that social issues including single parent families, and other social problems such as long term unemployment, can make it harder for some people to use self-reliance and personal responsibility in a growing economy as a way to grasp opportunities. Cameron proposes a combination of economic, social and job growth strategies. His second term plans include 30 hours a week of free childcare for 3 and 4 year olds so both parents can work, parental maternity leave, expansion of Troubled Families Program, in addition to the introduction of National Living Wage, tax cuts, universal credit. In tackling social aspects of the problem Cameron cited the need for development in the early years of childhood, the huge importance of family, social connections and experiences, informal mentors, cultural experiences, broadenend horizons, that enable young people to acquire language skills, character and resilience. Second term projects include expanding reach of high performing schools to deprived areas, emphasis on core English, math, science, history, geography Ebacc skills, a 1 billion pound investment in the National Citizens Service by 2021, a plan to transform housing estates including rebuilding from scratch, additional 1 billion pounds to provide mental health treatment including treatment within 2 weeks in homes and communities. Throughout Cameron's "Life Chances strategy" is aimed at tackling not just the material dimensions of poverty, but also what he describes is broken in Britain- "the paucity of opportunity."...
WSJ Original article ›
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It is hard to imagine that one is even writing about this, as shocking as it is- the 4 or 5 minutes between a decision to launch nuclear weapons and the end of life on this planet earth as we know it. Here Sam Nunn, a U.S. senator who was part of the negotiations for arms control and who is the leading American in this field talks about the unimaginable danger. He says the strategy from the Cold War where Russia and the U.S. put their nuclear forces in a position to be launched within minutes, 4 to 5 minutes, is outdated and needs to be changed. Hillary Clinton described the issue in the television debate. Yet this was not discussed because of the nature of the 2016 presidential election with lack of serious discussion.  And both Nunn and Clinton emphasize that once the missiles are in the air they cannot be ordered to go back. Accidental error, judgemental error, informational error in which one side thinks the other has launched a missile, a firing by mistake, are possible. In this situation Nunn says Trump is temperamentally unfit, and Clinton is fit to take on the responsibility. Yet the question this raises is as Nunn signals- is anyone but God fit to make this decision to launch nuclear weapons. Nunn says it is outdated and wrong to have only a few minutes, as such a decision cannot be made in a few hours or days, much less in 5 minutes. Nunn brings up a discussion he had in Moscow when he brought this up with Russians and president Putin. Russian president Putin told Nunn that he was fully aware of this. Putin's response was- "Senator Nunn, at some point it becomes automatic."  Nunn does not clarify what this means, or what Putin means to say. For people on the planet it is not enough to have Reagan, Gorbachev, Clinton, as Nunn mentions being responsible people for a nuclear decision. The current state of affairs is simply shocking and the lack of attention to this is also shocking. Equally dangerous is that 20 countries have weapons usable nuclear material, and sophisticated hacking of command and control processes is another danger.       ...
Wall Street Journal Original article ›
The New York Times Original article ›
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Krueger and Posner, eminent economists, say the reason wages have stagnated in the U.S. with wages not having budged much over a decade 2008-2018, is not only because of globalization and automation as long term trends. They attribute this stagnation in wages to "monopsony power," or power American corporations have over workers because of their stronger bargaining position and because workers have few alternatives.  For most of this period 2008-2018 high unemployment as reflected by the people out of work and taking part time jobs or having stopped looking for work, shifted bargaining power to companies. The Economist magazine pointed out that workers have not shared in the profit and gains corporations made during this period. Here Krueger and Posner show additional factors such as non compete clauses in worker agreements that have depressed wages. Half of franchise agreements prohibit competition for labor. Outsourcing work to other companies that hire workers means these outsourcing companies have more power over workers than the original companies using the labor. Unions represent only 7 percent of private sector workers by 2017, compared to 35 percent in the 1950's, so that there are no mechanisms to counteract the greater bargaining power gained by companies vs. workers. The way workers have roots in the communities they live and the consolidation of employers into a few companies in a particular area, mean fewer options exist for workers.  Senators Warren and Booker and the anti-trust division of the U.S. Justice Department are in agreement on this issue of widespread use of noncompete agreements that is considered unlawful, says this report in the NYT, offering hope for a solution to bring a better balance between the rights of workers to fair wages and companies seeking profit for stakeholders. Issues about workers, lack of gains for workers, prevalent outsourcing, and the frustrations of labor with parties that had lost touch with their worker base- such as Labor in Britain, SPD in Germany, Socialist Party in France and the Democratic Party in the U.S. - have led to political upsets with support shifting to other parties. This has not led to significant change to improve bargaining power of workers to correct the imbalance that now exists between labor and companies, leading to calls for change. Eric Posner is a law professor at the University of Chicago law school and co-author of a new book "Radical Markets: uprooting Capitalism and Democracy for a Just Society." This book turns the popular notion on its head that free markets have produced the imbalances that hurt social cohesion and democracy, by saying it is precisely the suppression of free competition such as for labor that have created this unhealthy situation. This is true in other areas where monopoly power has developed in other parts of the U.S and European economies in 2008-2018, as also for distortions in capital allocation that hurt infrastructure and other public investment. Krueger is a professor of public affairs at Princeton University and former head of the President's Council of Economic Advisors in 2011 under Obama, showing that Democrats themselves failed to correct this imbalance leading to a shift to other parties and Mr. Trump, who also appear to lack ideas or solutions to this problem that affects social cohesion and democracy. This is contrary to the vision of American or European society of better opportunity for all shared by all Americans and Europeans for most of the twentieth century. ...
Wall Street Journal Original article ›
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Trofimov provides a much needed perspective to the situation in the Middle East in 2015. The title about redrawing borders on ethnic lines is misleading, as the essay's conclusions point to the need for various communities to find a way to live together without ethnic cleansing and intolerance in attitudes. With modernization different communities, Sunni and Shiite, already live together in the larger cities in the Middle East. Trofimov points out that the original intentions of U.S. president Woodrow Wilson were for diversity, and building modern institutions of government as the best way forward. This was not carried out by British and French rulers following struggles for independence against the colonial authorites. Following the collapse of the Ottoman Empire in 1918, Britain and France were the dominant powers, and the boundaries were drawn up for Syria, Iraq, Jordan, Palestine, Saudi Arabia and other states, under the British-French Sykes-Picot agreement of 1916. Britain and France increased the role of minority groups to maintain their control following independence struggles in Iraq and Syria, a situation which helped Alawites gain control in Syria and Sunnis in Iraq. Shiite rule in todays Iraq has not lessened tensions, and intolerance only creates tensions in the broader region. Which makes redrawing boundaries around ethnic lines in a defacto acceptance of the current situation, not the lasting road to peace in the Middle East. In Iran, Russia with Britain was involved in the partition of parts of Iran into three zones, a Russian zone including Isfahan in the north, a British zone in the south east and a neutral zone in the middle. This happened in 1907 soon after a independence movement helped write a constitution in the 1901-1907 period, showing that many foreign powers were involved in the region, not just Britain and France. The discovery of oil in 1908 by a British company created the question of how to distribute the profits, which led to 70 years of disagreement and tensions in Iran. The resulting tensions exacerbated the conflict between religious authorites and Mossadegh in the early fifties with the fear of Communism, and exacerbated the conflict between the religious authorites and the government under the Shah by 1979 with misuse of oil wealth, ending with his overthrow and the supreme authority of the Ayatollah. Oil has proved to be as divisive, and wasteful of development opportunities, in Iran as it has been in Nigeria and other oil dependent nations. Multiple issues exist in the Middle East, not just the artificial redrawing of boundaries by the French and British, which makes the defacto redrawing of boundaries along ethnic divisions, not the answer but another step with its own dangers, along the path towards peace and economic development in the region. ...
New York Times Original article ›
Original article ›
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Both the Tories in Britain and the Democrats in the US were caught by surprise by the sudden surge after the pandemic of illegal migrations flows in 2023-2024 which dropped to all time lows in 2019-2021 with the covid lockdowns. Tories with factional infighting and Democrats falsely believing they were virtuous humane could not take effective decisive immediate action costing them the defeats in 2024. The size of the illegal migration problem to the UK was underestimated in 2023. Tory rhetoric alone failed to convince the British public. In the US Biden not confronting it head on also failed to reassure the American people as the US Border also meant destructive Mexico/China fentanyl flows. Even today the action proposed falls short and new US bipartisan legislation is needed to make it the law of the land, closing three decades of stealth in immigration policies. ONS now estimates that it missed 166,000 people. The real figure for the year ending June 2023 for net migration was 906,000 not 748,000 as previously estimated. In the year ending June 2024 this figure for net migration was 728,000. Labour party under Keir Starmer made setting up the new structures for tackling alarming rise in migration the top priority in 2024. That lesson was not learned in the US and the issue not confronted head on to win public confidence- the Biden support for Republican Senator Lankford's legislation on illegal migrants and the border came late in 2023 and the issue was left to fester for 2 years eroding public confidence. In the US the issue of illegal fentanyl flows at the US Border and from China makes the Border and China relations issues that required effective and immediate action overriding everything else. In the end Tories confusion and internal factions, other controversies, led to lack of vigilance and lack of effective action as net migration deceptively hit lows of 254,000, 111,000, and 254,000 in the pandemic years 2019, 2020, and 2021, only to surge tremendously to 634,000 and 906,00 in the years 2022 and 2023.  Labour's Starmer took action to make it No. 1 priority in the platform going into the 2024 election winning public confidence. A similar surge in migration happened in the US after a deceptive slowdown in the pandemic, compunded by Venezuela and central American states collapsing. ...
Washington Post Original article ›
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Dan Balz says former prime minister Blair's policies in Britain (1997-2007) closely followed the policies of moving to centrist positions of U.S. president Clinton, with Blair's election in 1997 following Clinton's wins in 1992 and 1996. Clinton followed the Reagan years and Blair the Thatcher years in government, in modifying the early postwar ideas about the economy. The election of Corbyn by 59.5% of the vote of Labor party members, exceeds the 57% achieved by Blair in 1994. The opposing candidates did very poorly. Yvette Cooper, who most resembled Blair's positions was seen as waffling on issues by not taking clear positions. She lost badly with 4.5% of the vote, showing that something significantly has changed with the the deep recession following the 2008 financial crisis, and the recovery through years of austerity policies under Cameron's Conservative government. Balz's view is that this is likely to bring up the same debate in the Democratic party- Corbyn proposes a national investment bank for large investments in education, health services and infrastructure, and a reversal of Labor policies introducing fees for college education to increase opportunity. Sanders has not proposed a national investment bank, but says he would invest in education ( including reversing the spiralling education costs), health services, infrastructure, and other areas. Hillary Clinton has made the issue of upward mobility for the middle and working class a central issue in her campaign, but lacks the authenticity claimed by Sanders, who has tapped into anti-establishment feeling following the lack of recovery in wages under 7 years of the Democratic party government in the U.S. In this context Jeb Bush has also stated at the 2013 CPAC conference that social and economic mobility is the central issue of our times, only he would approach it by giving business incentives to increase business investment to create jobs and increase wages; and by adopting a tax code that would be also fair to the middle and working class....
New York Times Original article ›
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Stevenson and Gough describe the remarkable success of AirAsia under Tony Fernandes, who turned it into Asia's largest budget carrier with 43 million passengers in 2013. Fernandes acquired the airline for 1 Malaysia ringgit or 29 cents in Sept. 2001 from a Malaysian conglomerate. He is an accountant educated in Britain, originally from Goa, India, who worked as a Warner Music executive in Southeast Asia. Fernandes says he was encouraged by the founder of British budget carrier EasyJet, and hired executives from Ryanair. Expanding in Asia was accomplished with acquisitions and partial ownership in local airlines located in Indonesia, Thailand, Philippines, India, Japan and other countries. Using the Ryanair model AirAsia has maintained a low cost structure, while increasing revenues with prices for addon options such as seat selection and checkin. It has revenues of $1.1 billion and is profitable. The airline uses relatively new Airbus 320 planes that are also used by other successful budget carriers. Fernandes has a hands on style of management reflected in this account of his handling of an AirAsia accident in Indonesia in Jan. 2015....
New York Times Original article ›
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The rate rigging for foreign exchange rates by major banks leads to a legal settlement in Nov. 2014. The Financial Conduct Authority of Britain fines major banks 1.1 billion pounds. CFTC of the U.S. fined the banks $1.4 billion, the Office of the Comptroller of the Currency imposed a fine of $950 million, and Swiss regulators a fine of $138 million.
SPIEGEL ONLINE Original article ›
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This piece in Der Spiegel points out that Brexit may be an opportunity if European leaders recognize that there can be different levels of unity, and that different countries in the EU can advance at their own pace with Germany and France providing a core group. There is no longer the need for continual enlargement of the European Union as has happened before. It also offers a time to take some deep breaths and reflect on the progress so far and where it has come short, what to do about it, such as the bureaucracy that has grown in Brussels, the different views on immigration, and public sentiment. Actually the whole progress towards the European Community, and then the European Union has evolved over time. In the immediate postwar years, after one setback Adenauer once said during the difficult negotiations in 1951-52 between France and Germany to set up the European Coal and Steel Community, predecessor of the European Community and the European Union- "arme Europa, arme Europa," (poor Europe, poor Europe). The Dutch and Belgian delegates had strong differences for the headquarters for the ECSC- Turin was rejected, Liege and Brussels were proposed, until Monnet was made head of the High Authority of the European Coal and Steel Community with headquarters in Luxembourg. Monnet himself considered stepping down a couple of times because of differences, and the Editor of Le Monde described Monnet's plans for European integration as "a leap in the dark." This was the first of many difficult steps in the evolution of the European Union. Nationalist feeling was nothing new, as the Gaullists opposed Monnet's drive for European unity when it differed from their ideas. Still Monnet persevered and progress took place every ten years as it must now.  ...
WSJ Original article ›
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Under a new law going into effect on Oct. 1, 2017 and supported by Angela Merkel's government, all social networks will be required to delete within 24 hours "all illegal content." This is an effort to take immediate action against hate speech, libel and other illegal content. Companies could be fined upto $57 million. Germany's Justice Minister Heiko Maas said "we cannot accept that social networks ignore our laws." Mr. Maas says the voluntary effort setup earlier had not worked as the social media companies were too slow. The law now means the networks will devote more resources, with Facebook increasing the staff for this purpose doubling it almost from 4500 to 7500, showing that the problem had not been addressed the way it needed to be. The new law details 22 sections of the criminal code that social networks need to enforce. Including laws banning libel, character defamation, hate speech, insults against religions, offensive statements and privacy violations. Britain's May and France's Macron have also called the efforts of the networks insufficient. A similar law in the U.S. before the 2016 election could have saved the country from many of the problems arising from illegal content being posted, including damage to the image of the U.S., inciting deep divisions, racial tensions, hate rhetoric and defamation leading to coarsening of public dialogue and debate.  During 2016 many European leaders were exposed to hate speech including Angela Merkel. The social networks were slow to respond and did not take their civic duty as seriously as they should have considering the grave damage to the social and political fabric of the U.S. and the European Union countries. The governments also took time to act, studying the problem carefully before taking action leading to further damage, one reason the current legislation was passed quickly and decisively. Experts say other countries will act following the German example to preserve civil dialogue and strengthen democracy. ...
Wall Street Journal Original article ›
DW.COM Original article ›
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Losses to Britain and the EU are high in the event of no-deal Brexit, where Britain simply leaves the EU without any plan, called hard Brexit. The losses come from higher prices and lower wages. EU citizens would have income losses of 40 billion euros every year, British citizens suffer 57 billion euros of losses or 873 euros per capita in annual income losses. People in Germany would suffer income losses of 10 billion euros per year.  Germany exported 85 billion euros of goods to UK in 2017. 100,000 German jobs would be affected.

New York Times Original article ›
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The low voter turnout helped protest parties such as the National Front in France and the Independence Party in Britain. The average across the EU was 43% turnout, with turnout in Britain at 36%, Slovakia 13%. Renzi in Italy led the Socialists there to 40% of the vote, and Merkel's CDU got 35% of the vote in Germany. The UMP came in second with 20% of the vote to Marie Le Pen's National Front's 25%, and Hollande's Socialists at 13% in France. In Britain the Independence Party won with Labor and Conservatives in second and third place. There are deep misgivings in Britain for Jean Claude Juncker who is the candidate for EU President from the centre-right European People's Party, which has 213 seats in the 743 seat parliament. Misgivings stem from whether Juncker can deliver on promises for a EU without much of the bureaucratic tendencies for Britain's 2017 referendum. The German SDP party's candidate is also contesting the election for EU president. Next come the centre-left parties of Socialists and Democrats with 190 seats. In the past EU president was chosen not by parliamentary election but by government leaders....
The Times of India Original article ›
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GST is to India what land sales were for China in its phase of rapid development and accelerated growth. It consolidated capital that could be then invested at the national and state levels on infrastructure, logistics for exports growth, creating a virtuous cycle of capital growth that could finance ever widening scale of development projects from metros, subways, rail, roads, bridges, airports, ports, logistics, tech related improvements. This was done in 2017 through a midnight session of parliament that passed the legislation needed. Years of endless discussion were turned into one session of implementing a single major tax system for India, transparent, digitized with new IT  Infosys playing a key role, and providing the pool of capital that has financed 5 years of development to take India past Britain as the fifth largest economy. Its pace of growth over 11% and accelerating with Maharashtra's GST growing at 24% in 2022-2023 over the prior year suggest that this will play a critical role in giving India a large pool of capital for growth. To be supplemented with foreign investment to make New India as a modernized nation. With an economy that will be exceeded only by the US and should catch up to China over the next 10 years. ...
The Times Original article ›
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Roger Mosey who worked as Director of BBC News, left BBC News in 2013 and is now the master of Selwyn College, Cambridge. Here he describes the problems the BBC faces and tasks facing it under its new director general, Tim Davie. Mosey sees the need to move power out of London. He is critical of the way the BBC has tended to narrow in its views and its failure to reflect the sentiment in the whole country for Brexit, attitudes towards the European Union, and also in its failure to reflect the sentiment in favor of Boris Johnson's "Get Brexit Done" stance. In recent coverage Mosey says the BBC has not covered both sides of the story in the taking down of statues of Robert Clive to try to educate readers of who he was what happened and why there are different views on this in Britain, opting instead for following what is popular at the moment. He sees BBC as patronizing ordinary Britons who have views that may not coincide with that of people in London who have views on the hard right or hard left. In his view the best way to lose the rationale for BBC license fee is not to educate people on both sides of the story every time. ...
BBC News Original article ›
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BBC Transport correspondent Tom Edwards gives this report on the Elizabeth Line, the Crossrail project that connects London from east to west. He has seen the infrastructure project project from its inception in 2005, past the planned opening date of 2018, till today, through all the ups and downs for a project of this size and complexity. It is the largest infrastructure project in Europe. Most of the tunneling was actually done on time says Edwards, but signaling from stations, and software ran into problems along the way. There were some deaths inside the tunnels and some outside over ground with vehicle accidents. Edwards provides glimpses into the most advanced infrastructure project attempted in Britain for decades. Queen Elizabeth opened the Elizabeth Line at Paddington Station. Station ambient characteristics are also covered in the BBC in a separate article, each station having unique design from Berkshire to Essex. BBC videos and pictures show the evolution of the line, with new management team brought in after delays. At the end of May the new Elizabeth Line will be open to the public. It has been quite a journey says Edwards, with public skepticism over delays, and the pandemic's financial problems. It is surreal now says Edwards, to see trains whizzing through tunnels every 5 minutes. ...
DW.COM Original article ›
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This article in DW.com says Russia's open intervention in Syria with bombing attacks on Aleppo comes with risks. It says the prevailing opinion is that Russia is trying to show its superpower  status in the Middle East and other areas. Other views are that it is showing that it will counter all civil society movements following the one that toppled Yakunovych in Ukraine, and sending a message to civil society movements in Russia. President Obama after meeting with Putin in Hangzhou in September 2016 for 90 minutes, said it appears that Russia is willing "to live with constant low grade conflict" for a long time. DW.com says this is risky for Russia, and it offers so little in return, with the loss of credibility with world public opinion. Compared to Georgia where ethnic Russian ties were involved, and Ukraine where Russia has historically had ties with the eastern part of Ukraine, Russia has no interests of this kind in the region of Syria-Iraq. In its ties with Iran Russia was historically one of the colonial powers like Britain and the U.S., with U.S. relations having worsened only after the 1950's, so no historic ties exist with Iran either.   ...
The Times Original article ›
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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. 

WSJ Original article ›
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Boris Johnson leads a new British government that is composed mostly of ministers who want to see Brexit happen, and giving the positions of Home Secretary and Foreign Secretary to persons who do not care what happens as long as Britain leaves the European Union. Johnson's date is October 31st for leaving the EU. Sajid Javid, a former Deutsche Bank AG executive is the new chancellor of the exchequer. Priti Patel is new Home Secretary. Dominic Raab a former lawyer who has called for parliament to be suspended if need be so that Brexit can be pushed through is the new Foreign Secretary. Dominic Cummings who headed the Leave campaign for the Brexit referendum in 2016 is the new adviser at 10 Downing Street. Johnson's strategy is to pack the cabinet with people loyal to his vision of leaving the EU October 31st regardless of what the EU does.  The EU has not changed its position and is even less likely to consider any new Irish border proposals. Three top ministers are opposed to Mr. Johnson's views and resigned. Treasury chief Philip Hammond, Deputy primeminister David Lidington, Justice Secretary David Gauke, all resigned in opposition to Mr. Johnson simply pulling Britain out of the EU. Johnson once said all he feared from Britain abruptly leaving the EU was a shortage of Mars bars. During the election in the Conservative party Mr. Johnson was mostly quiet and avoided any gaffes to sound statesman like, yet as the process unfolds Mr. Johnson is likely to face the same problems faced by his predecessor Mrs. May. Added to this is the new opposition of moderates like Mr. Hammond and Gauke in the Conservative party that could topple the government and lead to a general election with just three vote swing in the other direction doing this. Mr. Johnson has prepared for this by having Mr. Cummings as a top adviser in the event he faces a general election. Meantime the Labour party initially not favoring a second referendum with Mr. Corbyn's ambiguous views on Brexit, as shifted gradually to the leadership and the rank and file all favoring a second referendum and for Remain. As Greg Ip has pointed out in the WSJ this week the conditions have changed with protectionism, nationalism and hostility to globalization, and president Trump not planning concessions of any sort even for the UK in trade negotiations. This means to low productivity of less than 1% to support stifled wages, one would have to add a 3.5% hit to GDP from a no deal Brexit such as Mr. Johnson approves according to the IMF. With the migration issue not what it was three years ago and reduced to a trickle this new situation must be on the minds of Mr. Corbyn, Labour and Conservative moderates. ...
New York Times Original article ›
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Saudi Arabia and the UAE are emerging as large arms buyers. Saudi Arabia spent $80 billion on arms purchases in 2014, more than France or Britain, according to the Stockholm International Peace Research Institute. The Emirates spent $23 billion, triple the amount spent in 2006. Qatar made a $11 billion deal in 2014 for air defense systems and helicopters. It is looking for F-15 fighter jets to replace its fleet of older Mirage jets. Lockheed plans to replace smaller Pentagon sales by increasing global arms sales to 25-30%, according to CEO Marillyn Hewson. It has setup a separate division for foreign military sales.
WSJ Original article ›
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Pop and Troinanovski look at the tough negotiations ahead for Brexit and describe Theresa May as a experienced negotiator. Belgian Interior Minister Jambon says she has "a lot of policy knowledge" and moved in the direction of European cooperation. Germany Interior Minister Hans-Peter Friedrich says May has a very clear idea of her objective, uses clear language, and is consistent. Yet much depends on other factors including elections in Germany and France in 2017. For France and Hollande the issue becomes particularly filled with implications with the need not to give the far right and Marie Le Pen any advantage by making concessions in the negotiations. German chancellor Merkel is also very clear from her perspective on migration and free movement in the European Union, a point on which she was tested by other Eastern European countries during the refugee crisis. Merkel made this clear that it was Britain's choice of direction in future relations- "Whoever wants free access to the European single market must in return accept all of the basic freedoms, including the free movement of people." Because of domestic politics in Germany and France and in the rest of the European Union, these negotiations could drag on for a very long time. The only positive sign for both sides is that May is known as a responsible politician after 6 years as Britain's Home Secretary, holding one of the top positions in the cabinet. As Merkel's popularity has recovered with about 55% popular support and the decline in the support for the AfD in recent poll cited by DW.com, Merkel may be prepared for a long negotiation to keep the original idea and spirit of the founders of the European Union alive and strong. ...

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