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Governor Cuomo's budget for New York in 2011, at $132.9 billion, is 2.7% less than the prior year. Cuts to medicaid and local school aid, each amount to $2.85 billion This helps close roughly half of the budget gap of $10 billion.

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On May 11, NYT shows the rail network in India opening with the first trains taking 45 million migrants to homes in all parts of the country. Australia calls for an international inquiry into the cause of the coronavirus pandemic and its origins in China. Russia begins a cautious reopening with the governors of provinces having powers for reopening based on local conditions. In Spain restrictions are gradually being lifted but the major cities of Barcelona and Madrid are still in lockdown. And as Germany the first country to reopen opens up its business and schools the crucial R ratio of reproduction of the virus -with 1 being the number at which it grows again and below 1 showing control of spread- moves up to above 1.

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A vocal advocate for women in tennis, Andy Murray of Britain, plans to retire in 2019 after chronic hip pain. Murray was a strong supporter of women in the game and an ally for the WTA Tour where women feel underappreciated compared to men in tennis.

Naomi Osaka, the U.S. Open champion found a new hitting partner in Andy Murray in Bribane, Australia recently. Murrray was taught tennis by his mother Judy. He was the first to hire a women's coach Amelie Mauresmo to his team in 2014. Among those who admire Murray is Billie Jean King, who helped establish women's tennis in the seventies. A first round loss at the Australian Open to Bautista Agut has led to Murray considering retirement.

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The Economist says local grievances may have more to do with the unrest in Xinjiang than AlQuaeda or terrorist liks to the outside. And that the overwhelming use of force may only exacerbate the situation.

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Three finance ministers, Mr. Sinha, Mr. Chidambaram and Ms. Sitharaman, have favored strong action on PMLA, the preventing money laundering law, saying that it is of serious importance for the integrity and sovereignty of the country, says the Indian Supreme Court as it reproduces these statements. All have argued at different periods in favor of the interpretation of the law consistent with the judgement given by a special bench of the Indian Supreme Court last week.  It has significance in another respect, which is in restoring the faith of hundreds of millions of ordinary citizens in the local, state and federal governments. A faith that has been seriously eroded since independence and which affects the development of infrastructure and modernization of India, and the building of the defense capabilities of the country that rest on making India an advanced economy similar to China. India cannot build up its own financial and human resources to tackle that task with the constant erosion of trust in the management of development and infrastructure and in delivery, that has and is taking place in the country today. ...

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Bread and bakeries have a special place in Germany, France, Italy, Spain and most of Europe. DW.com looks at one bakery in the city of Bonn, Kugel's Bakery with 13 employees and the concept slogan "Where there's only bread" (Da wo's nur Brot gibt) written on each and every white packaging bag. There are 10,000 bakeries in Germany many of them small family run bakeries that specialize in bread. Click on original article to see this report. Max Kugel takes over his parent's bakery, but first visits Vancouver, San Francisco and London, to learn new concepts and invests in new special equipment with a $200,000 loan. The new equipment lets him switch from one type of bread to another easily and keeps his costs down. He does not depend on Ukraine grain imports as he uses local organic grain grown in Germany. With 10,000 bakeries total sales in Germany are $15 billion for bread, and Germans take in 123 pounds of bread and baked goods in a year per person. ...

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David Uberti looks back at a time when this part of Massachusetts between Rhode Island and Cape Cod witnessed a coal power boom with the Brayton Point Plant. How this helped build the local economy with coal. It used ten thousand tons of coal and one billion gallons of water from the Taunton river every day. It shows the kind of economic transformation that is happening in China and India with coal even as the switch to renewables is happening. In Massachsetts this was followed by the switch to wind power farms in Somerset started under Biden in 2022. This has stalled under DJT and facilities remain idle all along the New York and Massachusetts coast. What it says is that to switch to renewable one has to have some coal for economic transition to communities hit by deindustrialization. That bringing back America's industrial base, ending culture wars, and getting a bipartisan understanding of the transition from workers, communities all over the country are all part of the effort to put renewable energy on a sound basis. ...

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The Chinese car market is changing fast, with domestic brands making up a larger share of the local market. In 2000 these domestic brands made up 18% of total sales, whereas in 2010 forecasts show this to be about 32%, with the share increasing in future years. In a rapidly growing market this did not make much difference, but with the market growth moderating to 7-8% in the next ten years from the heady 33% of recent years, the foreign brands such as GM and VW will not see the growth of recent years. J.D. Powers projects passenger vehicle sales in China at 19.2 million by 2017, with Chinese brands taking 45% of the share, in one scenario. Under this scenario foreign brands like GM and VW would see sales growth of only 5% in the next 7 years. The foreign brands are not allowed to own more than 50% of local operations. And their partners are making their own domestic brands. If Japan is a useful example, China's automobile companies will like Nisssan, Toyota, and Honda, proceed to penetrate global markets and become a dominant player in their local market. This has implications for GM, VW and Daimler....

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This Editorial in Le Monde says the French president faced a contradictory challenge he did not quite resolve and which gets worse in his second term. He has called for dissolution of the National Assembly as a result. That challenge was to reduce he far right vote but he had done little to implement a policy that would remove the causes of people supporting the far right. It is not only immigration. Immigration has also been tackled across Europe by agreement across all parties to keep out migrants. The lingering issues of worker discontent stem from struggles to make a living during cost of living crisis, and this is true across Europe and also in the US, even in India in the last elections. The other issue is loss of manufacturing that has led to deindustrialization and affected standards of living across Europe and the US. Small and midsized towns in France and in Europe have suffered from the stress of loss of manufacturing and public services without the local revenues to build better living spaces and communities. The policy to reverse this has started in the US, and requires more investment across Europe in infrastructure and public services, timely delivery, so that people across France and Europe can see the results in their daily lives. This then is the challenge for France, and for Germany, and for Europe. It is also the challenge in the US and in India. ...

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The former UK Home Secretary for Tories under Sunak and Truss, Suella Braverman, joins the Reform UK party and appears at Reform UK event with Nigel Farage. She says the Conservatives saying they would have UK withdraw from ECHR (European Convention for Human Rights), which makes it difficult to conduct a rational commonsense policy on migrants because it was poorly designed or ECHR writers lost their way on common sense, is a lie. For example there is no ECHR type rules for migrants entering China or India or any major country in the world, one that says nations have to take in migrants from anywhere in the world, and provide benefits costing billions of dollars that cannot go into services for the local population. And where migrants can pose a risk for women hesitant to go out in their own neighborhoods- something chancellor Merz of Germany has spoken about recently after incidents in Germany. ECHR has somehow got it wrong.  Labour and Conservatives have pondered this but not acted quickly enough in becoming trapped in a cultural guilt for the colonial era, when ordinary Britons simply want to get on with their lives in their neighborhoods as they did before migrants, and as did their parents and grandparents in Britain. For most of British history colonial policy was decided by a small upper class and the India Office, colonies policy by the Colonial Office, and the lives of working people in Manchester's cotton mills went on with no connection with the Empire. A fact even India's Mohandas Gandhiji quickly recognized and grasped, and whose support Gandhi sought against the India Office of the Empire. ...

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48% of British voters see immigration as the most important issue, says Ipsos. And 31% say their local area is housing more than its fair share of asylum seekers growing to 61% of Reform UK voters. Reform UK is now leading party with 34% of the vote to Labour's 25% and Liberals 11%. The report in the WSJ on Augu 28 shows how the Labour government did not live up to it's talk on immigration. It also shows how the Conservatives and Boris Johnson failed by opening up non EU immigration from Asia on the grounds that it would bring in the brightest and yet dropped the basic college degree requirement paradoxically or carelessly. Lobbying from health care home care hugely increased migration for this field under Conservatives and is only now being reversed by Labour. Labour has been too slow and the culture of Britain and Labour has not changed enough to grasp the problem. Their are vested interests in Britain such as universities and home care health care that have influenced the conduct of policy so that migration on non-eu has replaced eu migration after Brexit, but not attracted the most qualified immigrants. The 4% of the British population that entered Britain after Brexit as immigrants, millions arrived and now when Labour is trying to bring this down faces a large number of dependent applications. University students are now bringing in their dependents at rates that have skyrocketed. ...

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The Economist points out that China's total debt of government, corporate and households has grown by about 100% of GDP since 2008. The 2009 crisis led to rapid increase in debt. It is now about 250% of GDP, according to the Economist. Slower growth of below 7% risks reducing China's ability to service this debt. About half of this debt is owed by state owned companies and property developers. China can use its sovereign reserves to continue supporting bank and state owned companies. Investor's are pricing bank shares to reflect about 10% of this debt as bad debt even though government estimates are much lower. The reserves provided China time to fix the banking system since 2008, yet the debt keeps growing and China has failed to take strong action in the last 6 years. Complacency is a problem, and the incentives for local governments to continue prior practices that increase debt continue. As Krugman and other experts have pointed out at some point the rules of finance will apply to China as they have for other countries that faced a debt crisis- Japan in the late 1980's, South Korea and other Aisan countries in 1997, and the U.S. in 2008. Even without a crisis through deft managemen and use of reserves China risks zombifying the economy as old loans are backed up by new loans, with the further risk of misallocation of capital or poor use of capital. This lowers productivity of capital and hurts development. With poor statistics such as the figure of 1% of debt being bad debt cited here, the problems of complacency can be magnified, as there is less reason for a strong response....

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This obituary for FW De Klerk looks back at the dismantling of race based rule of Apartheid in South Africa in 1992, the release of Nelson Mandela, and elections in 1994 through universal franchise. This was done by the son of a schoolteacher in the Transvaal region who rose to the top through the provincial leadership. De Klerk took the actions to bring racial harmony after growing up as an Afrikkaner and working in the local politics of the National Party that introduced Apartheid rule. Before 1989 reforms in the Botha government left black people on 13% of the worst land in the country, tribal homelands in which they did not even live in, in a distorted form of representation. Limited representation was given to Indian ethnic minorities and colored people.  All this changed between 1992 and 1994 after De Klerk assumed leadership of the National Party and the government in 1989. This required great courage and statesmanship, and vision from De Klerk to set the foundations for a multiracial society that even Margaret Thatcher and Reagan failed to grasp and promote. De Klerk died in 2020. For Mandela the path was clear, for De Klerk the path had to be forged out of nothing and against the natural instincts of his own party. This saved south Africa to become a true multi racial society with respect for the rule of law and democracy. ...

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It is too much to expect central bankers to solve the US economy's problems, especially with rates nearly zero, and no agreement between the political parties before mid-term elections. The Federal Reserve by itself cannot fix the economy's problems, with the US economy facing prospects of deflation in 2011; and local governments cutting back as they face revenue shortfalls. Deficit concerns have led to inaction on further stimulus or help to local governments, and the Bush tax cuts are expiring shortly. In 2011 austerity cuts will be the singular theme in the western world, and these cuts are of a magnitude not seen in 40 years. In this situation there is only so much the US Fed can do.

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Younger next generation franchisees now account for 30% of total McDonald's franchisees, reaching 37% in five years, according to McDonald's. This brings new ideas from the younger franchisees. Some of the ideas compete with older notions of fathers, other ideas have to win the approval of McDonald's management. Management at McDonald's implements ideas that it sees as acceptable for all 14,000 restaurants. Local changes such as including book activities for children and sponsoring community events were tried at one franchise in Tolleson, Arizona, and then adopted by 220 restaurants in Arizona. A similiar situation happened at Subway where local franchisees in California tried new ideas in pricing. Ideas implemented throughout the franchises which originated from young next generation franchisees were the use of credit cards which has increased sales, ordering system which uses pictures which reduces wait times, free Wi-Fi, and Angus burgers.

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A new anticorruption Lokpal bill is passed in parliament by the ruling Congress party. It does not include the Central Bureau of Investigation under its purview as proposed by Anna Hazare, leader of the protest movement for better governance. Some of the other provisions such as including the prime minister and lower level government officials under the Lokpal were included in the Lokpal bill. The ruling Congress party is trying to regain the initiative after corruption scandals in the government of prime minister, Manmohan Singh, and at the state government level. Bribes for local officials is so widespread in every part of life in India, that it has become an intolerable aspect of life in India for the average person.

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India's Reliance ADA Group and CBS are planning to setup a 50-50 joint venture, to be operational in 2010 or early 2011. CBS would initially use American programming for the Indian television audience, and in the next phase work with Reliance ADA to develop local programming. Disney, News Corp., Time Warner and Viacom already have a presence in India. The market is getting crowded in India with News Corporation's Star Plus, a leader in soap operas and movies. Viacom's channel "Colors" is creating local versions of reality shows. The new venture would try to compete with more thoughtful programming and good marketing. The size of the market and growth is large, growing from $5.7 billon in 2009 to estimated $11.3 billion in 2014 according to KPMG. Only 58% of the households in India currently watch television. The programming is growing quickly with 460 channels in 2009 from 120 in 2003.

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Krugman tell Obama, he will be facing his own personal 1937, if he doesn't get ready another stimulus plan. THe job numbers for June with job losses of 467,000, he says, are a sign of continuting economic weakness. The chaiewoman of the Council of Economic Advisors, Christina Romer, recently published an article on the lessons of 1937. Krugman points to earnings decline in the Labor Dept numbers and points to this as signs of possible deflation. He says the centrist Democrats did the wrong thing when they reduced the portion of the stimulus that went to help local and state governments as the local and state governments face the prospect of making harsh cuts that would only hurt the most vulnerable sections of society. And the cuts in the state and local government spending would undermine the effects of the stimulus spending at the federal level. He sees the Obama jobs program as just not upto the task. With 6.5 million jobs lost since the recession began he says and the 100,000 additionaljobs needed each month just to keep up with growing population, the joblosses hole he sees is around 8.5 million. And the Obama administration's goal of three and a half million jobs by the end of 2010 just does'nt prevent the bad scenario that is unfolding....

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Broughton, Williams and Maurer, WSJ, talk to companies that sell to the average American Skechers for shoes and Lee, Wrangler for jeans. Lee and Wrangler executives say price increases are an option, it all depends on the size of the DJT tariffs.  In general companies will take the following actions in sequence of priorities. Move as much of the manufacturing away from high tariff targeted China to other countries. Wrangler and Lee are not faced with this problem as only 2% of products are sourced from China. Most of the jeans are made in Bangladesh and Mexico. Wrangler Lee brands will increase savings from efficiencies in supply chain by $100 million. This could put a squeeze on margins of local makers in Bangladesh, but also come from other savings. For Skechers it makes 40% of products in china, 40% in Vietnam, and the rest in other countries. It will continue to shift away from China, into other countries. And price increases are a "high likelihood" say Skecher's executives. Most companies will try to reduce impact on margins, look for concessions from vendors, then weigh price increases. How will Apple with its high margins respond is a question. It will accelerate the shift of making mobile phones and laptops to its operations in India.  ...

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The advice to reduce cancer risk is not surprisingly the same from D. Michael Sekeres of the University of Miami- stay away from sugar, alcohol and tobacco products and take in more fruits, vegetables and whole grains, ancient grains and exercise regularly. The magnitude of what this would achieve on a a national scale when food habits have gone downhill for decades is what is also at stake. It would do what nothing else could do for the nation's health on a massive scale which is why it is the right thing to put much of our focus on, to create a culture that put much importance on the quality and kinds of food, on artificial vs natural, on food grown in good environments, on local vs shipped long distances, on processing vs not processing, all the time thinking of one's own health and what it will do for the quality of life we live. Just a fraction of the savings in medical care would pay for education and parks, green areas in neighborhoods, public health services, high levels of sanitation, leading to better well being that leads to more productive and intelligent citizens. It would lower the levels of multiple diseases and create a healthy society. ...

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Attorney General Sessions says the driver of the car who drove into protesters could be prosecuted in a number of ways including for a hate crime. The protest was against a white supremacist rally in Charlottesville. A car driven by 20 year old James Alex Fields drove into protesters injuring 19 and killing one woman. The local charges being made are for hit and run, malicious wounding, and the Justice Department is conducting its own probe. The comments by Sessions contrasted with the statement blaming both sides by president Trump, which led to strong criticism in the media and by the business community.

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Huge losses sustained by sovereign wealth funds. Estimated $350 billion for Gulf foreign reserve funds and SWF's, according to RGE Monitor's Rachel Ziemba, or 27% of assets. Sovereign Wealth funds are either using their funds for supporting their local banks as in the Gulf areas, or buying back stakes of cash strapped western banks like RBS in the case of China. Russia, China and other countries are using their SWF's for stimulus spending. And Russia, Gulf economies that are dependent on oil prices, are looking at possible sale of foreign assets at oil prices between $50 and a deterioration to $25. Only China has a surplus that is sustained through the last quarter of 2008, but this is changing quickly as imports pick up after the stimulus kicks in, and exports drop precipitiously in 2010. South Korea and Russia have also learned of the need to have liquid safe investments preferably in dollars in the current crisis, as they have learned how large capital outflows can get in a short time. And the US is not looking at these large capital inflows from overseas as a benevolent thing, because it overvalues American assets, and leads to all sorts of distortions in liquidity and pricing of risk that contributed to the current crisis. In short the whole situation with SWF's has a suprising ending, as with everything in the current crisis, nothing worked out as expected or planned....

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Lawrence Katz, professor of economics at Harvard, suggests a government subsidy for companies creating new jobs of 40% of the payroll costs. He also proposes spending of several hundred billon dollars to help state and local governments reduce layoffs and invest in education infrastructure, and for investments in research and development and productivity enhancing infrastructure.

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Much of this report concentrates on big name schools ignoring the facts about student debt and value delivered, and the shifts in perceptions in companies that see big name schools as not necessarily an asset as inthe past. In this new situation looking objectively at value delivered the US state university system is its strongest asset and the state universities offer higher value for local students without the unneeded debt loads of big ticket institutions with a lot of debt overhang, and little additional value. In the end education is about persistence, hard work, grit and determination. A  Kamala Harris at Hastings in San Francisco can do as well or better than someone from the big name schools. After the Supreme Court decision opposing quotas for affirmative action the first results of enrollment by ethnic group and race are mixed and sometimes confusing. Some colleges and universities are seeing the same enrollment and some are moving in opposite directions for ethnic groups and race. This NYT report says if universities can get to a fair enrollment for different groups without racial quotas then these quotas may not be essential to achieve their purpose. Schools are looking at students from rural areas in ways they did not in the past, and trying innovative approaches to building a better America after the pandemic because they think it is the right way. ...

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The Economist points to a second hit from bad debt in the post 2008 stimulus binge of spending in China. This is after an earlier hit, that was absorbed as a result of high growth rates and high savings. About $420 billion was injected into 5 state owned banks since 1998, according to one estimate, as a result of the first hit to China's banks from bad debt. In this second round of bad debt, covered in more detail by David Barboza in the New York Times, and merely alluded to here, many bad loans to infrastructure projects were rushed through by local governments. The Economist considers this one of the successes of the state directed banking system, that loans were quickly made and projects started in the post 2008 crisis period; and expresses the view that this hit will be absorbed just like the last hit. However the more detailed account by David Barboza and in Business Week, points to the working of a system of incentives gone astray in a capitalist system without the necessary controls or regulation. Local governments used investment companies to take on loans, which were then used to prepare properties to be auctioned off at a profit and speculative prices to state owned companies in different industrial sectors. This is part of rampant speculation in China in real estate markets. Can China with its high savings and growth absorb a second hit? This depends on the magnitude of the hit and the size of the bad debt, which depends on how long this speculative market continues to operate, and how bad debt is hidden in the books. The difference this time is that large state owned companies in different industrial sectors are engaged in this speculation. The other difference is that the high growth rates in China depend on continued large trade deficits with the USA and Western Europe, something which is not likely to continue for long, as consumers in Europe and the USA with high debt are becoming cautious spenders. This suggests that China, like the US with the mortgage crisis, faces the same effects of unregulated or uncontrolled speculative behaviours, that can endanger the banking system....