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The court case by the Justice Department to get Apple to unlock the San Bernardino terrorist's phone ends on March 27, 2016, as the Justice Department files court papers saying it has unlocked the phone with the help of a private entity.

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Competition in the Chinese market between Coca Cola and pepsi is shifting from the traditional carbonated beverages to juices, teas and non-carbonated drinks. Pepsi sells pulp based juiced under the name Tropicana Pulp Sacs, and Coca Cola has Minute Maid Pulpy. The Chinese governmet has discouraged acquisitions, and did not approve Coke's $2.4 billion acquisition of fruit juice manufacturer China Huiyuan Juice Group Ltd. Growth has to be maintained by investing and developing their own products for local tastes and culture. Both Pepsi and Coca Cola plan increased investments in China. Pepsi has 27 plants, five farms, and over 20,000 employees in China and expects to double the number of employees by 2015. Pepsi executives say Pepsi is following a"seed to shelf" approach in China, growing food on farms and developing teas and snacks for local tastes. In China Pepsi has a Lay line of chips with cool-cucumber flavors and Cao Ben le line of drinks based on Yin and Yang, cooling and warming. Pepsi's 13% growth in snack volume and 10% growth in beverage volume for its Asian, Middle East and Africa operations are mainly because of this growth in China and India. By contrast soft drink sales have declined for 5 years in the USA and come under criticism because of high levels of obesity in the USA. Pepsi's strategy is to move further into the interior of China, further west according to Pepsi executives. It plans to invest $2.5 billion in about 12 new food and beverage plants in the interior of China to be built over 3 years. Coke announced a $2 billion investment in late 2009, and is a lead sponsor for the Shanghai Expo. ...

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Gloomy spirits after Portman shifts to OMB Director and Susan Schwab takes over as Trade Representative. Doha Round stuck over negotiating points between Brazil, India and the EU and US over tariff reduction for agricultural exports from developing countries.

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Sheila Bair leaves behind a much stronger FDIC. William Isaac, a former FDIC chairman says she has had a positive effect on the agency by raising its profile and energy level. Under the Dodd-Frank financial reform legislation FDIC now has the powers to take over large complex financial institutions that are in serious trouble. Mr Gruenberg, who succeeds Ms Bair, has worked closely with her at FDIC. Jim Wigand, heads the new Office of Complex Financial institutions at the FDIC. One of the powers given by the legislation is for FDIC to have its examiners at financial firms to go over operations, providing backup supervision to the Federal Reserve and the Office of the Comptroller of the Currency. According to FDIC officials analysts should be in place at financial firms the FDIC oversees during the next 12 months. The FDIC is also working on a rule requiring banks with assets larger than $50 billion and other large nonbank financial firms to provide a "living will," a plan that would help regulators speedily and cleanly wind down a firm in a future financial crisis. In March 2011 the FDIC approved a draft rule requiring firms to submit these plans, along with regular updates and reports on the firms' current credit exposure. Ms. Bair says the proposal will be completed in August. Bair has also put in place FDIC managers with considerable experience who can continue the work of strengthening the regulatory system she started in 2006. In her work at FDIC Bair has performed a remarkable public service at a difficult time in the nation's history....

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China after American and European offshoring of supply chain and manufacturing over three decades is going through a rapid reversal. People to people contacts are also falling off a precipice as it were, showing how badly structured efforts by business focused on profit and not people to people fail miserably, hurting the long term prospect of peaceful cooperation. Foreign Investment that was $100 billion in the first quarter of 2022 is now $20 billion. Tourism down by about 80%. At Zhangjiajie National Park goes from half a million foreign tourists to 50,000 last year. It is typical of this staggering change.  People are not going from America and Europe to China unless they have to. It shows the complete failure of a purely business relationship such as offshoring manufacturing when it hurts workers and families in America and Europe, who turn against it leading to a free fall in relations. American and European business and the governments allied with it failed in this sense to build a world of better interpersonal relations between Asia and the western world. China's experience with industrialization and modernization begun in 1990 is now a cautionary tale for other regions such as India and the Middle East that are planning their own modernization. Much of it happened less from a people to people relationship than from an effort by US business to seize the opening of China after Mao's revolution to offshore American manufacturing as if realizing a new opportunity without understanding its long term consequences for the American people. European business followed American business in this offshoring. It damaged the basic structure of the American and EU peoples based on locally based supply chains and manufacturing at home needed for strong healthy communities, leading to this situation today. The rancor and deeply seated discontent all across America and Europe from communities losing factories and the jobs and wealth coming from it from offshoring by business interests has created this situation.  ...

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The U.S. Library of Congress's exhibition, "The Books That Shaped America," in Washington D.C. from June 25 to September 29, 2012. The books include the McGuffey Readers, schoolbooksthat educated people like Henry Ford at the turn of the century, to Walt Whitman, Thoreau, Edgar Rice Burroughs, Ray Bradbury and Dr. Seuss. Even Dale Carnegie. It includes social issue books by Upton Sinclair, Ida Tarbell, W.E.B. Du Bois, Cesar Chavez. Literary works include Emily Dickinson, Thornton Wilder and Tennessee WIlliams. Carl Sagan's book on astronomy doesn't appear on this list. It is a pretty impressive list and a valiant effort to cover the American experience through books that most Americans are familiar with from school or other reading, and books that have conveyed a sense of America in all its struggles and humanity to people in other countries and especially the English speaking world.

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European Union leaders including European Council president, Herman Van Rompuy, European Commission president, Jose Manuel Barroso, ECB president Mario Draghi, and Eurogroup finance ministers head, Jean-Claude Juncker, draw up a 10 year road map for "a genuine economic and monetary union." The prime ministers of Italy, France and Spain push jointly for deposit insurance to cover European bank deposits, Europe wide banking supervision, and bailout funds to directly purchase sovereign debt of Italy and Spain without conditions. This takes place June 22-27, 2012, with the EU leaders increasing pressure on Germany for the first time in concerted fashion. Ms. Merkel and her coalition partners the Free Democrats see this as an effort at mutualizing debt. Merkel says Europe will not have total sharing of debt "as long as I live," in her talks with Free Democrats.

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Crude oil or crude world. This book by Peter Maas "Crude World: The Violent Twilight of Oil," shows how places like Nigeria and Equatorial Guinea suffer from the lack of infrastructure and jobs, as the oil industry does not create many jobs and the companies and the ruling classes in these countries are the main beneficiaries. Nigeria's anticorruption official, Nuh Ribadu, is cited in the WSJ, with an estimate of $380 billion of $400 billion in oil revenues in Nigeria over 3 decades being wasted through corruption and misuse of funds, with little money going into infrastructure and jobs. Manufacturing in China, Vietnam, and Malaysia for basic consumer products from textiles to shoes, creates jobs even at low wages, making the people in these countries better off as wages rise. Oil on the other hand creates few jobs and companies do not move upscale manufacturing tech products in the next stage of manufacturing, leaving the people as worse off as before. The margins are thin in manufacturing, whereas much of the oil revenue can be deposited in accounts of influential individuals. Mouwad in the NYT points out 93% of profits go to the government in Nigeria, only 7% to western oil companies. Even in countries which have tried to root out corruption through socialist experiments such as Venezuela and religious parties such as in Iran, the failure to integrate with the globalized economy and extremist policies leads to lack of development and backwardness. This shows that the best way to develop is through emphasis on education, science and technology, building a culture that thrives on modernization and technological advancement over several decades, even if this means starting with basics and continually moving forwards into higher technologies. Japan, South Korea and China moved from shoes and textiles to iPads and smartphones, Japan starting in the 60's, S. Korea in the 80's and China in the 90's. ...

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On taxes instead of $100 billion a year increase in the deficit that the 2017 tax cut of Biden's predecessor cost the Treasury -which benefited average Americans only $750 a year studies show, and reduced corporate taxes from 35% to 21% shifting billions to large corporations- Biden proposed $500 billon cut in the deficit by putting a 25% tax on 1000 billionaires in the US. Biden's guarantee that no one making less than $400,000 a year would pay an extra penny in taxes. Everyone would be better off, no one worse off. His predecessor's 2017 tax cut did not increase investment spending by companies which remained same as before. "There are 1,000 billionaires in America.   You know what the average federal tax rate for these billionaires is? 8.2 percent!  That’s far less than the vast majority of Americans pay.   No billionaire should pay a lower tax rate than a teacher, a sanitation worker, a nurse!  That’s why I’ve proposed a minimum tax of 25% for billionaires. Just 25%.  That would raise $500 Billion over the next 10 years." Only some of it would pay for the following the rest to cut the deficit- "Imagine what that could do for America. Imagine a future with affordable child care so millions of families can get the care they need and still go to work and help grow the economy.  Imagine a future with paid leave because no one should have to choose between working and taking care of yourself or a sick family member.    Imagine a future with home care and elder care so seniors and people living with disabilities can stay in their homes and family caregivers get paid what they deserve!  Tonight, let’s all agree once again to stand up for seniors! "       ...

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The final settlement of the conflict in Georgia takes the lines of Russia pulling out of Georgia proper, and Russia in return making independent states with Russian assistance out of Abhkazia and South Ossetia. The border between these states and Georgia would be patrolled by 200 EU military personnel. And Georgia would sign an agreement not to use force against Abhkazia. And the EU takes over responsibility with Russia for seeing all this fall into place, the US leaving all this upto the EU. Interestingly Putin is not heard much from in the media and Medvedev and Sarkozy work out the details basically setting the Russian inhabited regions of South Ossetia and Abhkazia on their own course as independent states with Russian assistance. Considering the tensions and conflict and bitterness between the people in these small states after Georgian nationalism took root after the Soviet collapse the lives of people there would be more peaceful and secure except that a price is paid in terms of South Ossetian Georgian villages where the people were uprooted. But tensions there had reached a churning point and leaders there inflamed passions so that at some point something like this would happen. This puts this chapter behind and Russia can be glad that it got out of all this without sanctions from western countries and the EU can go out of this with the assurance that Russia would not interfere in Georgia proper. Over time Georgians themselves may have to ask whether their leaders acted responsibly by inflaming Georgian nationalism upto a point of damaging relations with ethnic minorities. Angela Merkel who has experienced life under Soviet dominated governments still thinks according to media reports that the Georgian leader Sashkavili can inflame tensions with his statements and style of operating. ...

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European stock markets outperformed the DJIA and the S&P 500 in the U.S. in 2015. Stoxx Europe 600 went up by 7.3%, France's CAC 40 up 9.5%, Germany's DAX up 6.9% excluding dividends. In the early part of the year the DAX went up 20% before being affected by the worries over China and the VW emissions scandal. Italy's FTSE MIB up 13%. Britain's FTSE down 4.45% in 2015 being affected by declines in commodity producers. Experts still see 2016 as a good year for European stock markets, as conditions remain much the same as in 2015 with support from the European Central Bank and eurozone economic recovery in southern Europe.

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The situation in the Japanese consumer market. There is a slow decline in Japanese department stores over the last 14 years. Car sales are also in decline. A number of trends are converging. Japan's population is declining. About one third of Japanese jobs are now non-permanent, part-time or contract jobs.The result is a decline in demand and move to lower priced goods. Smaller cars that have engine displacements below 660 cubic centimetres are seeing increasing sales. The cost is less than $10,000, and cost less to run and maintain. These cars were 20% of the total car sales in 1995, now they are 30%, according to the Japan Automobile Manufacturer's Association.

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The IMF promised to increase the aid package to Greece from $45 billion to $120 billion. Together with aid from the EU and Germany the total would come to $160 billion. This after the markets responded negatively to efforts by Greece to obtain funds. With the junk rating for Greek bonds Greece is effectively cut off from the markets and it makes it increasingly difficullt to roll over debt including $8 billion euros due May 19, 2010. Equally significant are the rumblings being heard about Spain, which is a much larger country than Greece, and an economy 5 times as large. An IMF loan to Spain would have to be significantly larger.

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Carrefour's new CEO in June 2012, Mr. Plassat, describes his plans for reviving the company. This includes giving more autonomy to stores to reduce overhead costs, reducing the number of employees, selling its Greek supermarket business to its local partner and exiting Turkey. Unions estimate job losses at 3000-5000. He says the company is overly centralized at the international level and in the domestic market. He pointed to the 500 million euros of "superficially used money," that was put into marketing in the domestic market and says some of it needs to go into improving stores. Carrefour's share price has fallen by over 50% in 2011-2012. Plassat's plan is for a three year turnaround.

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Americans with no arrest record are more likely to have a college degree 40% to 10%, more likely to have a high school diploma 89% to 53%, according to one study. People with an arrest record are twice as likely to be in incomes below the poverty level. This matters for African Americans, Hispanics, and poor white people because the higher rate of arrests in these communities can lead to less opportunity for jobs, loans, education, and mortgage approval. It also matters in an information age with the FBI having over 77 million individuals in its database with reports of arrests and other action. A minor arrest record also stays on the record hindering future prospects.

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The race to get Detroit back on its feet after the bankruptcy settlement to reduce the city's debt. By 2015 a new street lighting system is planned. $520 million is allocated for tearing down tens of thousands of dilapidated buildings over 6 years. The police force gets $100 million to improve poor response times, and the fire departement gets $100 million to repair broken down equipment. And Mayor Duggan tells residents to wait 6 months before leaving. Finally after years of decline and failed starts, Detroit gets a fresh chance at revival. The recovery of the auto industry is followed by the planned revival of the city itself, both under new management, putting behind the mistakes of the past.

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Hilsenrath goes over some of the troubling signs behind the postive job numbers for April 2014. Part time workers looking for full time work actually increased in April 2014 to 7.5 million. More individuals in prime working years of 25-54 dropped out of the work force discouraged and stopped looking for work, with the percentage for this group who are working dropping to 80.8% in April 2014. Wage growth and worker productivity was stagnant. Donald Kohn, a former vice chairman of the Fed, joins other economists who are puzzled by the lack of wage growth and the large number of long term unemployed behind the positive job numbers of 288,000 for April 2014.

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Daniel Henninger of the WSJ interviews Edwin Feulner, who founded the Heritage Foundation in 1974. The Heritage Foundation gained influence during the Reagan presidency. Feulner says he believes having the numbers right is important to maintain credibility, and it is important to respect the origin of the opposite side's ideas. Feulner reminds readers the Heritage Foundation has 600,000 donors as current members, and once turned down a check from textile magnate Milliken over its support for free trade. Its positions strive to be conservative, not Republican. Feulner looks ahead to political leaders like Jack Kemp who partnered with Bob Garcia of the Bronx on urban revival, and could take caring positions outside the political spectrum.

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Issuance of junk bonds in 2012 reached $274 billion in 2012, an increase of 55% over 2011, according to Dealogic. This is double the levels observed before the financial crisis of 2008. Yields on low rated junk bonds have declined to about 6% as prices move up. Also observed is an increase in covenant lite corporate loans. These types of loans relax lending standards- this increased from $8.5 billion in 2010 to $36.5 billion 2011, and $58 billion in 2012, according to Dealogic. This has drawn the attention of Fed Governors Jeremy Stein and Richard Fisher of the Dallas Fed, who have raised a warning about the rapid increase in credit and financial risks.

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Eavis of the WSJ says watch the net interest margins (NIM) of banks, as they may not do as well as thought with the government's free money. Margins may be improving According to SNL INteractive banks with over $10 billion assets had net interest rate margin, or NIM, of 3.21% in the first quarter. Well Fargo's declined to 4.16% and Chase' rose slightly to 3.18%. He says the Japanese banks experience with zero interest rates policies shows that these margins can only be improved so much as depositors expect to receive some returns and banks cannot find enough safe borrowers, households and companies, willing to borrow at rates that create high margins.

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President Medvedev of Russia talks with Novaya Gazeta editor Dmitry Muratov for over an hour at the President's residence. The paper specializes in investigative journalism and has been critical of the control of media and politics under Putin. Four of Novaya Gazeta's reporters were killed or died mysteriously in the past 9 years, with the last Anna Politkovskaya. But Medvedev did not go beyond offering lawyerly answers according to the report. A Russian talkshow host says Medvedev can talk nicely, but can he act, and is there followup. Others see the move as a way to reduce tensions at a time of economic suffering of the people from the impact of the 2008-2009 global financial crisis.

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Problems in graduate education, too many people taking on lstudent loans that are burdensome, over $100,000, to do research under faculty who are working on more and micrto detail fields that have less and less relevance, so that few jobs exist when they graduate. And faculty jobs are available in small numbers as tenured professors have to retire before their are new openings. Which is why in the situation where faculty work in small cloistered fields doing thier own thing, even important subjects as the role of religion in international relations happen to have been left out. It all suggests that we have asystem of graudate education out of synch with whats required.

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According to an investigation by a congressional subcommittee70% of all trading in West Texas Intermediate crude on the New York Mercantile Exchange is by speculative traders compared to 37% in 2000. The subcommitte findings are based on data obtained from federal commodity futures regulators. So are the Saudis right that speculators in futures trading ar playing a big part in the oil price increases or is the administration position correct that this is not a factor at all? This provides backing to the Saudi position, the IMF position and the position of McCain and Obama, the 2 presidential candidates. And there are calls to close a loophole that prevents oversight by the government over this kind of trading.

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Do you ever wonder how Japan keeps it streets so clean. There are no litter bins or street sweepers to be seen. This report in the BBC News looks at Japan's cleanliness ethic starting from school days for children growing up with the idea that clean is what you make happen with your own two hands and a broom. That is all it takes and a sense of personal responsibility infused into the culture from school days as children.  For 12 years of school life from elementary school to high school cleaning the school is part of the school routine for students. The social consciousness was developed in this way and children as they grow up learn to take pride in their cleanliness and in the cleanliness of their surroundings. This carries over to cleaning up the neighborhood.  In India's Swachh Clean India campaign their are street clean sweepers in addition to people themselves taking on the job of cleaning. This is ok for public facilities like railway stations underbridges and other public facilities, but for neighborhoods and schools making cleaning a part of the routine in schools is a good idea that needs to be universally adopted as part of Swachh India, Clean India campaign. This also holds true for all Asian and Latin American, African nations which could learn from the keeping the country clean efforts of Japan and more recently India. As India shows not having done this well before is no reason for discouragement, getting started and keeping it going, building public awareness and support is the key. This is particularly true for developing countries because it is easier to prevent illness and disease by increasing levels of hygiene and sanitation, saving hundreds of millions of dollars for large countries like India and Brazil, Mexico, Nigeria, for days and productivity lost. It also pushes countries to the next stage of development faster through infrastructure development and quality of public services, quality of life.    ...

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All the extreme rhetoric on how Project 2025 is going to be adopted under a DJT administration has led to unease that there will be deterioration in the government and society.  Yet it simply may not work that way.   A second objective look at Project 2025 and how it's value to Republicans will be carefully evaluated piece by piece by DJT is needed. Keeping in mind 2026 House and Senate elections, winning broad support for the traditional Republican conservative line of thinking, and maintaining the support of all Republicans in the business, government, media and other sectors.  1. Replacing federal employees with party loyalists. This happens at the top of every agency of the government for every government in the US and Europe after an election for the last century. At today's unemployment level of 4 percent, adult males actually 3.9% and adult females 3.6%, and considering the higher salaries paid in the private sector, the tenuous nature of joining as a party loyalist as the national mood can shift at any time and things change again in 2027; where was the federal government going to find employees to be replaced at mid and lower levels? There is also the situation seen in 1928 when a Republican Hoover victory made Democrat NY Governor Al Smith compel a reluctant Franklin Roosevelt, who was just recovering from polio, to run for NY Governor. By 1931 over 3 years Franklin Roosevelt and Columbia University's Frances Perkins tested programs to stabilize employment in the US, introduce unemployment insurance as a new concept, and a 40 hour week also new, in the entire northeastern + midwestern states, all governors working together. By 1931 in just 3 years Franklin Roosevelt was on the clear path to sweeping victory in 1932 with a tested program to stabilize employment. 2.  The No. 1 goal is to restore the traditional family. It is clear in 2024 that the vast majority of Americans, whites, women as well as men, of all age groups, whites as well as Latinos and Asians, blacks, see that things like transgender "have somehow gone too far." 3. Cultural Literacy is needed for any nation to long survive. This is not even on any platform. Yet knowledge about America's history of settlement of the continent -correcting for treatment of American Indians, blacks, Chinese, Japanese without pointless race controversies- is being rapidly lost, and with it an understanding of America's civic institutions and Constitution, its founders and presidents, and evolution of the nation over the 20th century with the Industrial Revolution. The very terminology that has defined public knowledge about these United States is fast disappearing. It is a cause for unease in the minds of people in rural and urban, conservative and other parts of the political spectrum alike of what will happen to America as this is lost. 4. On immigration  a consensus was reached by president Biden that migrant flow was mishandled and the Lankford legislation offered by Republican leaders accepted by both parties to stop the flow. During his first term president Eisenhower conducted a program of returning illegal migrants to their home countries, Germany is doing this now and the UK's Labor party has made it No. 1 priority to stop migrant smuggling. 5. An effort to increase oil and gas production. This will help bring down the cost of living by reducing energy costs in the US and also helping Europe to do the same. Biden had already accepted the idea of the temporary need to do this to ease cost of living burden on the people of this Nation. The economic cost of wind and solar, are ultimate drivers for expanding renewable energy as major form of climate change action. In the first term of DJT 2016-2020 the lower cost of natural gas made it economical to switch from oil to gas. In the Biden term 2020-2024 all the effort to increase EV's on the road ran into the problem of lack of charging stations. It is possible that spread of charging stations could reverse this in the second term of DJT. It is the private sector and also the local governments that play a big part, climate change action will continue, and new R&D breakthroughs will happen to jump start it again.    ...