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New York Yimes editorial calls the Conservative party coalition government's austerity budget (the plan to cut 500,000 public sector jobs and terminate unemployment benefits after 12 months), as a gamble on an improbable theory that the private sector can make up for $130 billion in cuts. The editorial says these budget cuts could suffocate a feeble recovery.

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The UK Office for National Statistics shows Britain's GDP declined by 0.2% in the last quarter of 2011, compared to the prior quarter. The figures showed a drop in business investment. Polls by ComRes, show 51% of people in Britain see the government austerity cuts as having an adverse effect on the economy, with cuts being larger and coming too quickly.

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Spain's Constitutional Court suspended a planned Nov. 9 referendum in Catalonia. Arturo Mas, the head of the regional government of the Convergence and Union coalition, says he will go ahead with the referendum. One possibility is for new elections to be called in Catalonia, in which case a party Republican Left more determined to win independence could be elected. The political uncertainty is likely to affect Spain's recovery from a long recession and high unemployment. About 25% of Spain's exports come from the Catalan region. A large clock in the centre of Barcelona does the countdown of hours till Nov. 9, 2014, and Catalans are planning more unity demonstrations.

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The key role being played by Xi Jinping and advisor Liu He in developing economic policy and top down changes for China in 2013-2015.

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Dubai airport had 67.3 million passengers in the 12 month period through Feb. 2014, according to Airports Council International. Emiraes airline is based in Dubai. It was setup in 1985 using a $10 millon grant from the government of Dubai and 2 Boeing 727 planes. The precipitating factor was a cutback in flights by Gulf Air between UAE and Pakistan. Emirates benefitted from a business friendly environment in Dubai and open skies policies that helped the aviation sector grow. Another factor helping rapid growth is that the CEO of Emirates, Sheikh Ahmed bin al-Maktoum, is chairman of Dubai Airports and Dubai Civil Aviation Authority, chairman of the low cost carrier Flydubai, and is the uncle of Dubai's ruling king Sheikh Rashid al-Maktoum.

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Faced with low eurozone inflation of annualized 0.7% in October 2013, and low growth, the ECB lowers interest rates in the eurozone by 0.25%. The risk from deflationary pressures is high in Oct 2013. Weakening the euro from $1.38 in Oct. 2013 to $1.34 following the rate cut helps increase inflation through higher price for imports and helps boost exports. This brings rates close to zero and the ECB having to resort to quantitative easing in future efforts.

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A WSJ/NBC poll in Oct 2013 shows U.S. Congressional leaders Mitch McConnell and Harry Reid have some of the highest negative ratings ever. U.S. president Obama has high disapproval ratings. Close to 35% of men voters would go with a alternative candidate. This is the highest disaffection level in two decades. Voters prefer someone who is populist, pragmatic and non-ideological.

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White House and Republican proposals in fiscal cliff negotiations to simplify the U.S. corporate tax code, remove deductions, and lower corporate tax rates from 35% to between 25-28%. CEO's meeting president Obama said corporate tax code needed to be addressed to improve U.S. competitiveness. CEO's showed a willingness to accept higher individual tax rates to generate revenues. White House proposals would give lower rates to manufacturing companies.

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Unemployment in the eurozone drops to 7.7% in 2017. Unemployment in Spain drops to 17%.

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James Pressley reviews Simon Johnson and James Kwak's new book - "13 Bankers: The Wall Street Takeover and the Next Financial Meltdown. " He suggests reading the first and last chapter for what the authors recommend, limiting banks to no more than 4% of GDP in assets or $570 billion maximum, and investment banks to 2% of GDP or $285 billion. Pressley agrees that incremental steps are not going to change the situation. And the authors have thought this thing through, with Simon Johnson, a former chief economist at the IMF and writer of the Economix columns in the New York Times on the current crisis in Greece, Portugal and Spain. Some of their analysis on that crisis has been borne out by developments, as Greece lurched towards default with the slow response of Germany enlarging the dimensions of the crisis, and requiring a larger bailout for Greece of $160 billion in late April.