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New York City faces a $2 billion deficit in current fiscal year in 2026 and $10 billion the following year. This means there is less funding for new Mayor Mamdani's programs for groceries/transport for New Yorkers. Mamdani was elected by people in the hope that he could find ways for struggling New Yorkers to handle the cost of living crisis in 2026. New programs Mamdani promised were free bus service with costs annually (cost 0.8 billion), new rent stabilized units (annual cost $7 billion),  universal child care (annual cost $ 6 billion). A state corporate tax hike could generate $5 billion and a millionaires tax $4 billion, not enough for $13.8 billion cost for these services. The other problem is the way the city has handled its finances- this report shows declining projections for expenditures under former mayor Adams for public assistance, rental assistance, and MTA subsidies items which one would expect to go up in a large city the size of New York with new immigrants.The report says the shortfalls were met by using funds meant for the next year. Already Mamdani is not able to expand the state voucher program for residents facing eviction because of these budget constraints. This is the pattern in New York of making new promises not funded on the revenue side. Mamdani promised smaller class sizes but did not show where the funding for extra teachers would come from. For New Yorkers this adds a bit of realism to the idea that a new Mayor and new promises is the answer to its problems. Only about two thirds of its budget comes from its revenues the rest from federal and state funding which means an overall solution firing on all fronts, with federal and local cooperation, private investment, good governance, foreign investment, is needed to tackle the problems of major cities like New York. ...

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China's dependence on an export sector that is uncertain 14% growth (EV's electronics) vs. 0.2% growth in domestic spending April 2026. Costlier energy inputs are affecting China in the way that is affecting Germany's economy in 2026. The US has increased tariffs, Germany and the EU are likely to do the same as they see their economy erode with Chinese exports in German markets replacing German manufacturing. China has set 4.5% growth target much of it from ramping up exports and depends on cheaper inputs for energy as Germany has done for economic growth. This is being gradually eroded as US/EU want to reindustrialize and make things and products realizing the errors in industrial policy of previous administrations Bush and Obama in US and Schroeder/Merkel in Germany. At the same time India wants to be a manufacturing hub like China. When that happens by 2030 China's growth will be similar to the US of 2-3% a year as exports decrease. Eastern India is the New East and South China with 700 million people for the first time in 2025-2026 under double engine governments. Double engine meaning state, local and federal governments all under the same party (the BJP National party) so that industrial policy is conducted along the lines of a Master Plan tested in western Indian states of Gujarat and Maharashtra. This has been seen before. As Japan rapid rise of the 1960's and 1970's slowed by 1980, China's rapid rise of the 1990's and 2000's slowed by 2025 and India in 2025 is picking up from China in the way China picked up from Japan. This means an industrialized US and EU, rapidly industrializing India will face a slowing China and aging China by 2030. Knowing this pattern helps US and EU leaders, Indian leaders, look at the long term in their plans, having confidence in their investments in industrial progress for the next 5 years. ...

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Edward Johnson and daughter Abby Johnson- Fidelity Investments succession turmoil and Abby Johnson emerging as CEO is covered in a new book- House of Fidelity by Justin Baer, Deputy Markets Editor WSJ. CEO Edward Johnson (Ned) failed to come up with a succession plan and executives under him were planning to sell the company to Chase or another bank. Ned had talked to Chase's Dimon in 2005 and said he was not interested in selling the company founded by his father. Yet this is what executives under Ned, Reynolds had in mind, who did not have confidence in Abby Johnson's leadership. Fidelity Investments has recovered from poor performance in that period and manages the pension plans of employers in the US, being the largest in this business. In 2026 Fidelity manages life savings of 20% of American adults and 50% of these customers signed up in last 5 years, says WSJ. After a period in her performance in the mutual funds business which was not great Abby was listed for demotion by executives under her father, who would sent her to run the philanthropy part of the business. It shows how awoman now 64 years struggled through this period and took the bold step of defying her father through control of 41% of the stock of the company to gain control of the company- a step that led to her father relenting and letting Abby run the company. It is a tale of how in such situations even the most favored can be put at a disadvantage by perceptions - in this case by Reynolds of Abby's leadership and ability- and need to act swiftly and decisively after impressions have been formed that lead to an outcome that doesn't need to occur. Her father Ned even though he in his younger period was a good stock picker, failed in two ways. By not planning a clear succession and lacking confidence in his daughter to overcome temporary obstacles. ...

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Viktor Orban's defeat in the Hungarian election in April 2026 comes after decades of his blocking policies that emerged from the European Union in Brussels and is a relief for the European Union and Germany as it takes on the responsibility of leading continental Europe in its stance of opposition to Russia in the war in Ukraine with help of France and Britain. Peter Magyar who is staunchly pro European Union wins Hungary's 2026 election in a landslide with 137 seats to 57 with 77% of electorate voting as Viktor Orban concedes. Magyar's Tisza party gets 57% of the votes to 40% for Orban. Peter Magyar 45 years was part of the Orban Fidesz party before he formed his own party with dissatisfaction about the extent of corruption under Fidesz. Orban as head of the Fidesz was prime minister 1998-2002 then again in 2010 to 2026 for a period of 20 years spanning the first quarter of the 21st century. Magyar is not a progressive or so called liberal and shares many of the same views on social issues of Orban but he is pro-European Union and reflects the views of the Hungarian nation as independent in Eastern Europe and the Hungarian Revolution of 1956 in an uprising against Soviet rule. In the period before the two world wars from 1600 Hungary was the place where in addition to Austria and Vienna, the Hapsburgs and other European armies pushed back the Ottoman Empire's expansion into Europe. Hungary was a key part of the Hapsburg Empire which ruled from Vienna, Austria, over most of Eastern Europe for 1600-1918. The Hapsburg Empire collapsed in World War I on the side of the Germans and a new nation Hungary emerged by 1921 but was much smaller than Hungary of the Hapsburg era. Today Hungary is a nation of 10 million with its capital on the Budapest on the Danube river in the heart of Central Europe. ...

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The media in US and in Europe presents the US and China on a confrontational course little aware that there is quietly emerging a new trend encouraged by both leaders of the two world powers. "Strategic Stability" in US -China relations instead of China seen as a rival and a threat- is now the goal of Xi Jinping of China in 2026 US-China dialogues and meetings. This was abundantly clear during the DJT visit to Beijing August 14 2026 and will continue to shape relations during Xi's visit in September. This is different from the confrontational attitude taken by both DJT in the first administration and Biden in his four years in office. The result is that these tensions are being gradually brought down which started in 2014, were exacerbated by Covid pandemic in 2019, and were put to the test in 2025 with tariffs policies of the incoming DJT administration. A decade of mistrust now being replaced by  buildup of cooperation, establishing a sense of trust and friendship. Partly out of necessity and partly from choice.This was not secured by giving up on issues the US or China saw as important. US did not concede anything on issues of fentanyl entering the US from Mexico, and tariffs for reducing trade deficits. Similarly China did not concede much on issues it saw as important, mutual respect for China as a significant power, and seeing China's different system of government and industrialization as legitimate and worthy of respect. On Hong Kong and on Taiwan both sides decided to see ambiguity and live and let live as the best option. So that in 2026 nothing, not the Iran War or anything that happens in the Middle East is to be allowed to deter both sides from making the educated good and decent choices that are available to them based on attitude of mutual respect.  ...

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The European Union Commission says Ireland must recover 13 billion euros in back taxes for giving tax preferences to Apple that are against EU rules. The EU Commission says Ireland allowed Apple to pay a corporate tax rate of 1% on its European profits in 2003, and .005% in 2014. The EU Commissioner says the use of Ireland as the place where Apple pays taxes on operations in Europe has no base in reality, as most profits are earned in other countries outside Ireland. Taxable profits of Apple "did not correspond to economic reality," according to Ms. Vestager, the EU Commissioner.  In the current environment where political upheaval is unsettling the democratic process in the U.S., Britain, Spain, France and Italy, as well as in Brazil and other countries in the developing world- because of deep recessions, and efforts to cut the deficits with deep cuts in state spending including in education and healthcare, basic services- the moves by companies to reduce taxes to these absurdly low levels such as .005% when other companies in the EU are paying 12.5%, is becoming increasingly unpopular. As pointed out in this BBC News article this sounds like the way Carnegie, Rockefeller and Vanderbilt operated during the late 19th century, and were seen as operating in a manner that was above the law. Janet Yellen pointed out at a Boston Fed Conference on inequality in Oct 2014 that the bottom half of the distribution or 62 million households in the U.S. in 2013, had a net worth of about $10,000, One quarter of these households had a net worth of zero dollars. The working class and blue collar workers in the U.S. provide much of the support at Trump rallies. Younger college educated people support Sanders, because of the situation of the working and middle class in the U.S., and a similar situation exists in Europe. It is for the sake of the democratic process and delivering services in education, healthcare, and other basic areas to all, that companies small and large need to pay their fair share of taxes, regardless of size, influence, or technological advantages. Today this is is seen by most leaders who draw public support as the right way forward for the U.S., Latin America, Europe and Asian countries, including proper allocation of resources to best serve the needs of working people. For example the 13 billion euros is equal to all of Ireland's healthcare budget, and 66% of its social welfare budget.    ...

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Valery Giscard d'Estaing known in France as V.G.E. died at the age of 94 from covid complications. He was president of France from 1974 to 1981 and ran for election after De Gaulle and De Gaulle's assistant Pompidou withdrew from politics. He presented himself as the modernizing face of Gaullism and supported most of De Gaulle's initiatives in improving Franco-German relations. He was finance minister and a Gaullist under both De Gaulle and Pompidou for 12 years. He lowered the voting age to 18 and advanced women's rights. One of his major contributions was the EMS or European Monetary System that set the stage for the Euro currency. He strengthened relations between France and Germany. After losing the 1981 election to Francois Mitterand on the left he continued to serve in the European Parliament and drafted a European Constitution that became part of the Treaty of Lisbon. To this day France is governed by a strong presidency after the lessons learned from the failure of political parties to agree and get things done both in the prewar period and the period 1946-1958. De Gaulle pushed through the reforms that made "the state" above the parochial and selfish interests of parties and politicians and embodied this in a directly elected president. From 1958 to 1981 France was governed with this principle in mind, and later presidents from Mr. Sarkozy to Mr. Macron also adopted this idea of "the state" with their movements but with lesser success than Mr. De Gaulle, Pompidou and V.G.E. who as Mr. Macron says "set the directions for France that still guide our steps." ...

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Shell plans to cut $15 billion in capital spending over 3 years, and pull back on shale investments, in response to the drop in oil prices below $50 a barrel in 2015. Shell's CEO Van Beurden says the company will continue to focus on capital efficiency and project delivery and make prudent investments. Since taking over Van Beurden has pulled back from big spending, cut costs, and focussed on capital efficiency.

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Even China has not campaigned the way Canada, Mexico and British, American media have against DJT Tariffs because China knows it is basically about getting an even playing field when it is the only country with $1 trillion in trade in its favor in 2024, 12 times the Japanese high of $82 billion trade surplus in 2007. But why should China campaign when the American and British, German media are going to do the job for China? A simple quiz to K-12 would ask school children when is the last time a country has a $1 trillion trade surplus? Answer: Never. Greg Ip has written a few years back that the devastation of China outshoring of American factories and jobs was unlike the 1980's Japan trade invasion because of first China's size, second by the speed with which it happened at 10-14% Chinese GDP growth. There is a third Japan was an ally needing US for security and backed down, China's case is different it is challenging the US for control of the world economy and will fight this one over the long haul. Greg Ip of WSJ on the 53 countries asking to negotiate US Liberation Day April 2, 2025 Tariffs. These countries include Allies of the US in full support asking to negotiate Israel, Japan, Taiwan, South Korea, India Allies of the US in partial support asking to negotiate Britain Allies of the US not in full support asking to negotiate Germany, France Allies of the US in the past campaigning against the US, asking to negotiate Canada, Mexico Not Allies of the US, not in full support, not campaigning against the US China A look at his list tells one only one thing, mostly all trading partners except for the $146 billion exports of the US which represents exports to China are the exports that are at risk if things don't work out on tariffs. This is what the media today WSJ added this last week to the NYT, Wash. Post and the BBC, Guardian of UK, German media will not tell the reader.  The DJT Tariffs and Tariff negotiations are Lighthizer Tariff negotiations which won the fight with Japan in the 1980's over unfair trade and gaining a level playing field. Lighthizer as Deputy US Trade Representative conducted the tough negotiations with Japan. He was USTR in 2016-2020 and his Deputy Jamieson is now USTR in 2025       ...

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Wang Lequan, who is the party leader for Xinjiang, is aprotege of Chinese President Hu . He was pulled into the party from Hu's days in the Chinese Communist Youth League. He is from Shadong province China's industrial and petroleum capital. Because of his familiarity with the oil industry Wang may have beeen transferred to Xinjiang province. He arrived in Xinjiang just as the Soviet Union was dissolving, and the central Asian administrative regions that were formed inside the Soviet Union were becoming independent countries. China's army had occupied Xinjiang in 1949 under Mao. Millions of Chinese were leaving the Xinjiang area and the thinking was that the Uighur Muslims of Xinjiang would also form their own country. What happened was that Wang reestablished the Chinese presence in Xinjiang province. He opened the Xinjiang region's oil and gas fields to drilling, laid pipelines east to China and west to Kazakhstan. A Production and Construction Corps was formed so that Chinese soldiers leaving the army service could find work, and this was later listed on the Shanghai Stock Exchange. With growing industry and government jobs, many Chinese were attracted back to Xinjiang. In the 1990's 2 million Chinese went back to Xinjiang. At the same time his policies may have had the effect of making the local Uighur people feel that their culture and language weere being threatened and they needed to fight for its survival. Wang acting with dictatorial powers tightly constrained Uighur culture and religion. He substituted Mandarin for Uighur in primary schools, saying minority languages were "out of step with the 21st century," and banned or restricted Islamic practices among government workers, including the wearing of beards and head scarves and religious practice like fasting and praying while at work. He has been Communist party leader in Xinjiang for 15 years, which is unusually long, such jobs usually only lasting 10 years. SInce 9/11 Wang has fought hard to limit the influence of separatism, and the East Turkestan Islamic Movement, an Uighur group, and he has swept up thousands of Uighurs accused of terrorism or religious extremism. He worked to have the East Tukestan group listed as Al Quaeda allies by the Bush administration in 2002. He is closely allied to President Hu who supported Wang, giving him a seat on the Politburo. Wang's protege in Xinjiang has been placed in charge in Tibet. There is a sense with Wang and Hu, that a failure now in Xinjiang and in Tibet to control unrest would lead others in the Chinese leadership who think differently on theses issues to bring a different leadership to succeed them. The difficulty here is that the Han who now comprise 40% of the population in Xinjiang, and are heavily involved in the oil and gas industry, have brough a modernizing influence to Xinjiang but may not be received by the Uighurs as apositive influence. First any government that is in power for as long as 15-20 years tends to lose support over time. This happened with the Congress in Kashmir. Too powerful or corrupt, and lose touch with the young people. But compared to India the democratic ways of that country have helped it recognize the need for respecting the language, religion and culture of the people of each region. The British did the same, so it was something that went back to British times. With the monopoly of power of the Communist party, lack of precedent and amodel to follow that respected different culture and languages, the intolerance of Uighur and Tibetan language, religion and culture, creates a different situation in China. Elections were held in Kashmir recently and an effort is being made for reconciliation with different groups, the media is open and different voices are heard. No such prospect remains for Tibet and Xinjiang. ...

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Juan Montes of the WSJ describes the problems facing states in Mexico as the governors have accumulated power, debt has risen rapidly, and accountability of state officials is at a new low. Half of the states with elections in 2016 have doubled their debt in 6 years, according to government data. The federal audit office points to irregularities in $13 billion of federal funds transferred to states. Elections in states in 2016 shows public discontent with poor governance, corruption, and the lack of rule of law. This is leading to a close election in Veracruz with the PAN and PRD parties challenging the PRI in the state.

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The National Assessment of Educational Progess (NAEP) test scores in the U.S. for K-12 show a lack of progress since 2013. Scores for math and reading dropped for 8th grade students, and scores for reading were stagnant while dropping in math for 4th grade students. The test scores reflect progress in rural, suburban, urban environments, for communities that are affluent, less affluent and poor, different ethnic backgrounds. The test started in 1990 is the only one measuring national progress. The new results of NAEP are on a scale of 0 to 500, and show that in 2015 64 percent of 4th graders and 66 percent of eighth graders were not reading proficient, 60 percent of 4th graders and 67 percent of 8th graders were not math proficient. Massachusetts, Vermont, New Hampshire, do much better in the tests than Mississippi and New Mexico. Experts say a state to state comparison should separate the non native English speaking students from native English speaking, especially in states like Texas. With about two thirds of students failing the math and reading proficiency levels, growing proportions of minority Hispanic students in many states, larger proportion of less affluent students, the tests show the challenges facing America's K-12 education even after the changes introduced by Education Secretary Duncan since 2008....

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The South Korean won has lost 17% of its value so far in 2022. Heavy reliance on exports to a rapidly slowing Chinese economy, high corporate and household debt levels, outflow of funds, and the depreciating won, reflect weakness in the Korean economy.

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For every 10 yen change in the exchange rate, profits of exporters are likely to increase by 7-10%, according to Goldman Sachs. This includes companies such as Toyota, Sharp, Panasonic, Sony and Asahi Group Holdings.

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Hardship withdrawals from 401(k)s reach high of 4.8% in 2024. Analysis of 3 million retirement accounts at Vanguard research for 2008-2022 shows higher volatility for hourly paid workers than salaried workers. Hourly paid workers have income swings of 15% compared to salaried and when they leave an employer often take out savings in 401(k)s- 42% with income $50,000 to $75,000 took out their savings compared to 28% in salaried group with same income. Many do so to deal with emergency needs. Thus income volatility hurts workers savings in the hourly sector.

A US law passed in 2022 lets employers automatically enroll employees earning less than $160,000 in emergency savings accounts that they can put in $2500 every year in a Roth type account and withdraw from it penalty and tax free. This is helping some employees avoid touching their 401(k)s.

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A Feb. 2011 NBC/Wall Street Journal shows only a small number of Americans think cuts to Medicare are necessary to "significantly reduce" the deficit. Only 18% favored cuts, 54% opposed cuts to Medicare to reduce the deficit. Only 22% said cuts to Social Security were needed, 49% said they were not needed. Tea party supporters by a 2 to 1 margin said significant cuts to Medicare were "unacceptable." What measures should be taken to put the entitlement programs on a sound financial basis? On this point over half of the people polled said they favor increasing the retirement age to 69 years by 2075, up from 66 now. A larger number said they support reducing Social Security and Medicare payments to wealthier Americans. Experts say these two measures could eliminate 60% of the underfunding of Social Security. On the issue of collective bargaining rights of public workers, this poll shows 62% of the people polled oppose effforts to weaken collective bargaining. This is similiar to the CBS/New York Times poll results of Feb 24, 2011 on this issue. See the group for this. This poll show a big yellow caution light for Republicans zealously advocating cuts to entitlements. Both polls show lack of public support for reducing the collective bargaining rights of public workers....

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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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After 13 years of Labor government, the new Liberal-Conservative coalition is seen as good for both the parties and good for Britain A good deal of optimism about the prospects for this government. The optimism rests on the pragmatic sensible nature of Cameron and Clegg, on the fact that the 2 parties combined have 59% of the vote in the elections for making some tough decisions- on spending cuts, a sensible fiscal program to generate $9 billion in savings through spending cuts in 2010, and generally agreement between the two parties on the significant issues of state finances. The Tories holding to their position on immigration but giving in on the idea of proportional representation. The election changes would have Parliament members in office for 5 years and the manner of election changed to remove a growing distortion of the popular vote. Labor and Conservatives share of the vote has dropped from 81% in 1979 to 65% in 2010, and still Tory and Labor MP's have 565 of the 650 seats in Parliament or 87%....

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The amazing and unbelievable story of Oakland situated on San Francisco Bay with some of the worst illegal dumping of trash in the nation, 18 million pounds of illegally dumped trash dumped each year is the City of Oakland estimate. This NYT report says two thirds of it comes from local residents and businesses. The problem spiked in 2020 and has not improved much says this NYT report on this city in Northern California, where to the east of it there are hiking trails through redwood forests and natural beauty.