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Critics say China's currency is undervalued by 20%. China is only willing to increase the value of the yuan by 3% this year, fearing that a signifcant revaluation will lead to the closure of textile and other factories in the coastal areas that operate on a small profit. Facing high unemployment the US is not willing to let this happen gradually. US businesses that manufacture in the US and export to China would benefit if the yuan appreciates significantly. Retailers such as Wal-Mart and textile producers with offshore manufacturing at contract sites in China are on the other side as they benefit from the lower value of the Chinese currency.

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Apple shares which made a steep rise of over 50% with the introduction of the iPad in 2011, reaching over $600 by March 2012, fell by about 9% between April 9 and April 16, 2012. Apple faces questions about the extent of new innovations it can bring compared to the pace of innovation under CEO Jobs. How long it can maintain the high profit margins on the iPad and the iPhone before they are gradually eroded. And whether a lot of the growth in future years has already been priced into the price of the stock already, with the steep ascent in price in 2011-2012.

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Problems in the power sector that limit India's economic growth. Power plants being built are short of coal and other fuel supplies. Coal supply has not kept up with increase in power plant capacity- coal production increased by a mere 1% in 2011 and power plant capacity increased 11%. The gap between demand and supply for power increased from 7.7% in 2010 to 10.2% in 2011. Coal India which has 80% of production has not invested enough in new mining equipment and technology to rapidly increase production. This combined with higher energy costs for imports and weak infrastructure continues to act as a constraint to economic growth.

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Zweig cautions against putting too much faith in experts, or quant models such as "value at risk" or VAR, used by JP Morgan to assess risk. He cites physicist Richard Feynmann: "You must not fool yourself- and you are the easiest person to fool." And the address Feynmann gave at the 1974 commencement of Caltech, in which he said avoid the "cargo cult" mentality of Pacific Islanders who believed that just by standing on runways they could make plane full of food and clothing land, similiar to the ways they did after World War II. Exaggerated returns of over 50% call for more vigilance to look at risks of failure.

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IDC reports that Samsung sold 72.4 million smartphones in the second quarter of 2014. The pace of growth is slowing as Samsung faces intense competition from Lenovo, HTC, ZTE in the low end of the smartphone market. High marketing costs are pressuring margins. Samsung second quarter net profit increased by 50% over the prior year quarter. Samsung expects weaker sales of the Galaxy S4 and has ramped up marketing promotion. Demand for expensive smartphones is declining. This has resulted in a 12% decline in Samsung's share price since late April when Samsung started selling the Galaxy S4. Apple faces a 22% decline in profits in the second quarter of 2013.

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A study by the director of the obesity center and professor of global nutrition at the University of north Carolina at Chapel Hill states that based on data collected from 20,000 patients in China over the last 15 years obesity has increased 1.2% a year among men in that time. The study says that more than 25% of the adults in China are overweight or obese and that the number could double in the next 20 years. Its a result mainly of improving living standards which make vegetable oil affordable, and beef and dairy foods more available and affordable. A sedentary lifestyle for many Chinese plays a part as well.

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According to areport by the Manufacurer's Alliance/MAPI USA manufacturing output is expected to decline by 12% this year. Steel production fell 61% in the first quarter over prior year, motor vehicles and parts dropped 41% and semiconductors dropped 40%. Medical equipment production was up 2% in the first quarter, and communications gear production up 6%. THe chief economist of MAPI, Mr Mecksworth, says when the economy turns and depleted inventories are replaced growth will still be slow, because companies will be saving money and paying off debt for many years. In his words the whole deleveraging of the economy will depress the growth rate.

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Legislation advanced by Senator Dick Durbin of Illinois would allow bankruptcy judges to lower principal and interest rates on mortgages and extend the loan period. Of 10 million homeowners who are having trouble making payments new bankruptcy law changes would help 800,000 troubled borrowers keep their homes, according to Mark Zandi, chief economst at Moody's Economy.com. With the government's loans of $45 billion to Citigroup it has more leverage on key banks in the banking industry. As a result Citigroup which had earlier opposed the change in bankruptcy laws to make this possible has now changed its stance. Vikram Pandit Citi's CEO stated yesterday that "we support its swift passage."

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After carbon dioxide at 40%, black carbon at 18% is the No 2 cause of global warming on the planet earth. This black carbon is generated from thousands of villages in the develooping world and from countries like India, where village women cook food over stoves that burn twigs and dung, not having stoves to cook on. If they are provided with stoves that use fuel these black carbon emissions can easily and quickly be cut. This is also cuasing dense smoke to fill their homes and black grime to stick to the thatched huts and thatched roofs, and it puts ablack cloud over stretches of landscape in these villages.

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The House bill on health care cleared the House Committee on Energy and Commerce with a vote of 31 to 28. Five Democrats joined all 23 Republicans. Compromises were reached with Blue Dog Democrats, centrist Democrats who had concerns about the cost of the health care overhaul. The bill will be taken up again in September after the August recess, when Congress will be faced with the task of recociling the House and Senate versions and reaching common ground on a number of proposals. Some common ground has already been achieved between centris and Blue Dog Democrats and Democratic members who support Obama's proposals. Among the changes on which consensus was reached in the House version: 1. Access Insurers will have to accept all applicants and will not be able to charge higher premiums because of medical history or current illness. All insurers will have to offer a minimum package of benefits, to be defined by the federal government, and nearly all Americans will be required to have insurance. Insurers will have to get prior approval from the government before increasing premiums over a certain amount. About 95% of Americans will be covered this time. The cost will still be approaching $ 1trillion over 10 years. Federal subsidies will be given to those who cannot afford health insurance and Medicaid coverage will be expanded. And the insurance will be made more affordable for the uninsured. Democrats also reached a consensus on creating some sort of government insurance plan or nonprofit cooperative to compete with private insurers. 2. Mobility And under this new plan it will be easier to change jobs as one would retains one's health insurance. This should actually help the job market, and help promote the mobility that is needed, now that jobs are shifting out of sectors like autos to sectors like energy. 3. Cost The Energy and Commerce Committee voted 47 to 11 to set aprocedure for the government to give federal approval of generic versions of expensive biotechnology drugs. By one estimate this saves $9 billion over 10 years. The Democratic proposals from the Energy and Commerce Committee would authorize the Health and Human Services Secretary to negotiate prescription drug prices for Medicare benificiaries. The agreement and consensus among the conservative, liberal and centrist Democrats, and Democrats with ties and connections to the health care industry was reached after intensive negotiations, and adoption of a package of amendments that helped bridge the differences they had. ...

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The ruble goes from a low of 80 to the dollar in Dec. 2014 to 50 to the dollar by May 2015. The euro also strengthens against the dollar with weakening economic conditions in the U.S. leading to a reversal in the strength of the dollar.

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Finnish president Niinisto provides a new understanding of Mr. Putin and the thinking that led to the invasion of Ukraine. Mr. Niinisto has an advantage having spoken with Mr. Putin countless times says this report in WSJ, and spoke again to Mr. Putin on May 14 to tell him that Finland was planning to join NATO. Putin simply responded that Russia does not pose a threat and "you made a mistake." He says it was not the Finnish way to not call Putin and tell him directly, and that not doing so would be like sneaking away around the corner. Mr. Niinisto says WSJ, has a rare insight into the thinking that led to the behavior of Mr. Putin in launching the war. Here are some insights from this report by Adam O'Neal of WSJ. On the situation in Ukraine Niinisto says " I would be a lot more worried about Ukrainians than about how Russians feel." Mr. Putin's willingness to see Ukraine's industrial centers, its infrastructure and cities destroyed, turning them into moon craters in the east compares with the relative ease of life in Moscow, St Petersburg and other cities, cushioned by Russian oil and gas exports and financial reserves. As a student of Finland's long and violent history with Russia Mr. Niinisto has some unique insights into Russian thinking. He tells WSJ's Adam O'Neal  that if a Russian is angry, yes, be careful, but if he's calm, be even more careful. The Russian invasion of Finland led to loss of 200,000 lives in 1939-40, and another 250,000 Russian lives in fighting between 1941-1944. Finland has 300,000 men or women in military reserves and men between 18 years and 60 years are called up for military service with the Finnish Constitution requiring every citizen to contribute to national defense. Recently Finland ordered 64 F-35 fighter jets from the US. What led to the invasion of Ukraine by Mr. Putin? Niinisto says that "somehow Mr. Putin has a feeling that Russia was betrayed in the 90's by the West. Over time this thinking continued feeding the negativity says Niinisto and led to the thinking that Russia could be betrayed once more.  Another aspect of Mr. Putin which was covered during the last decade of relations with Ukraine in Lyrarc, was his perception that Ukraine under various leaders before Zelensky was basically led by corrupt leaders including one president he supported but lost power in the last decade. Mr. Putin saw protests in Kviv and Lviv that ousted a president he supported recently as orchestrated from outside. This led to thinking that Ukrainian nationalism did not exist and he believed that Kviv would not be defended and would fall easily within a week or weeks. As his nationalist perceptions and that of a small group that included his partner in office Mr. Medvedev became stronger in the last ten years Mr. Putin made the decision to take the option for invasion in the thinking that the response of the US and Germany would not be to support Ukraine with arms and other aid. The CDU and SPD was perceived as weak in Germany and Scholz not seen as able to cut down oil and gas imports to the EU. Biden was seen as not willing to stop Russia by taking on a difficult conflict because of China allying itself with Russia, considering China's interconnections with the American economy. The timing was seen as good considering that this level of dependence on oil and gas imports of Europe on Russia would never be the case after planned shifts to renewable energy. The Russian economy was cushioned by its $620 billion in reserves and by the world's need for energy even as the shift to renewable was taking place. This window my have induced Mr. Putin to take what appeared to be a rational decision that ignored the common feelings of humanity of risking the destruction of a brotherly people that spoke Russian, prayed in Orthodox churches, and where Russia as a state started in the year 1000. Cambridge historian Brendan Simms in his new book "Europe : The Struggle for Supremacy 1453 to the present," has shown all European powers susceptible of reasoning and calculation of this type in their wars since 1453 in the struggle for supremacy in Europe up to the present- the Portuguese, the Spanish, the Dutch, the British, the French, the Germans, the Russians, the Danes, the Swedes. This also led to British and French empires in Asia and Africa with subjugation of Asian and African people. The Second World War had created the perception that somehow this had changed after the loss of millions of lives- that was the perception of Merkel a pastor's daughter who had grown up in the former communist state of GDR in East Germany, and of SPD leader Steinmeier who felt strongly about the loss of lives from the Nazi invasion. Merkel and Steinmeier built the relationship of Germany with Russia that has collapsed under Germany's new leader Scholz and Habeck-Baerbock of the Greens party. Merkel and Steinmeier also built the trade relationship with China that also faces collapse with China's support of Russia under Mr. Jinping, and the unexpected shifts in Chinese leadership and policies from that pursued by premier Deng and his successors in 1990-2010 of interconnected economic links with US and EU. Mr. Scholz, the new chancellor of Germany has Brendan Simms book on Europe on his reading list for 2022 as he ponders over the lessons of 2022 and the pandemic. Mr. Biden with long experience in the Senate of the US has a memory and understanding of what happened since World War II, how America got to this point, and what it will have to do to bring back the American spirit to the Free World that America has led for most of the last two hundred years. ...

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The Times looks at the Australian performance against India 3-1 Test Series Win. England plays both teams, in June-July 2025 against India, and in November for the Ashes against Australia.

Boland takes 10 wickets in the SCG Test. Bumrah goes for scans following an injury with too much resting on his pace bowling for the Indian team. Batsmen in both teams except Head and Jaiswal disappoint. MCG and SCG cricket grounds see record numbers attending the Test matches. India takes the first Test match in style then falls apart. Neither the Australians or the Indians are convincing. Pant's lack of patience at the MCG leads to a loss for India and the Australians scrape through at the SCG with Bumrah out of the game, this is how Mike Atherton of The Times sees the Test Series Australia won. 

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Kasman of J.P. Morgan Chase only sees a small upturn in activity, that as he sees it in a world where activity is so depressed that modest changes by business and households give a lift, with unemployment coming down to 9%. Hatzius of Goldman sees unemployment rising in an economy where capacity utilization is extremely low, with unemployment rising to 10.5% even with the best efforts of the government. Hatzius sees a painful defaltion as a serious risk and he points out that the Fed can do less about deflation than it can do about inflation. The one point that both agree on is exports have to give alift to the economy, and both welcome a depreciatipon of the dollar to lift the economy through exports. Hatzius makes the point that the lift to exports is still limited- not enough in exchage rate depreciation of the dollar to help the American economy. And Kasman actually says it now Asia's turn to do their share. We lifted them out of the slump after the 1997 Asian crisis, when their currencies depreciated and exports to the US lifted their economies....

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GM will invest $3 billion in electric car production in Michigan. The Orion Assembly plant near Detroit  will produce electric pickup trucks- renovation costing $2 billion and bringing 1500 jobs. A new battery cell factory near Lansing would bring $2 billion in investment in 50-50 joint partnership with LG Energy Solutions creating 1200 jobs. Ford is investing in other states, with $11 billion investment in building 3 battery plants- 2 in Kentucky, one in Tennessee near Memphis. Tesla is investing in Austin, Texas. GM says it is revamping existing factories to save $10 billion through 2030. The new GM investments are part of $35 billion in spending on electric cars through 2025.  For the US as a whole these investments change the look of the auto industry from one that in the past put factories in China and Mexico for gas and diesel vehicles. The shift to electric is now being taken as an opportunity by the Biden administration to encourage auto companies to make a new beginning and speedily build the future electric car base in the homeland itself. So that American workers and families come first in the great American tradition. ...

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How information generated by Tesco's Clubcards can be used through rigorous information collection, analysis of mounds of data by computers based on a clear structure for the information and what they are looking for. And how the information insights can be used to quickly take action in what to stock and who to target with what is stocked through direct mail and coupons. Tesco uses information about what interests customers, who they are, for example: child care providing fathers who might want the beer as well as the baby stuff, South Asians in immigrant heavy communities in the U.K. tracking what they buy, and don't buy and where. 1. This information driven strategy of Tesco has been copied by other retailers. P&G, Coca Cola, Kimberly Clark and other consumer product companies buy analyses based on Tesco data. 2. This strategy has helped Tesco battle Walmart overseas. Walmart failed in the S. Korean market after 8 years selling its 16 outlets to a local competitor, while Tesco has 39 stores in S. Korea that are doing well. Tesco is also doing well in Central Europe where Walmart intends to open stores. In the UK which accounts for 45% of Walmart's international sales and 10% of its overall sales, Walmart's share of the British market is 16% for groceries compared to 31% for Tesco. Walmart entered the British market in 1999 through the acquisition of the Asda chain of stores. Tesco is growing and doing much better than Walmart in the UK. 3. Tesco's Clubcard based information driven strategy- 3-1. Uses a outside provider that is excellent in its field, can pioneer techniques that will work with Tesco strategy, and has the energy and dedication. Tesco uses Dunnhumby, a husband-wife consultancy that also works with Kroger in the US running its loyalty card program and analyzing customer data. The research firm is now majority owned by Tesco. 3-2 How it works. Each week Dunnhumby receives data on 15 million shopping baskets. Each product is scored on 50 dimensions such as price and the size of the package. The computer looks for customers whose shopping baskets have similiar combinations of scores. Dunnhumby has made 6 segments for Tesco. Finer Foods segment is made up of affluent time strapped customers who go upscale and Traditional segment comprises homemakers who buy ingredients to cook meals from scratch. 3-3 The clubcard works as follows. Introduced in 1995 by Mr Leahy, now CEO, the application asks for information about dietary preferences, size of household, ages of children . The plastic a card in the mail gives customers a point for every pound they spend after they reach $280. Each point is a penny off future purchases and it also can be converted into miles in frequentflier programs In addition large spenders get discount coupons every 3 months on particular products keyed to their buying profile in the database. Quarterly coupon package from Tesco would include 3 coupons for stuff they regularly buy and 3 for stuff Tesco would like them to try. While only 1-2% of coupons ever get redeemed about 15-20% of Tesco coupons get redeemed. The package also includes vouchers through which members can redeem points. $300 of purchases would generate a voucher for $3.00 off any purchase. Karen Masek, an actor and mother of two in London, says Tesco's mailings reflect her preference for fresh produce, environment-friendly cleaning products and organic meat. She says Tesco knows her buying habits and never sends anything that is way off the mark. 3-4 The way Tesco battled successfully with Walmart: Tesco searched its database and identified shoppers who buy the cheapest items available. About 300 items were identified for price conscious customers. Tesco lowered prices on these items such as Tesco Value Brand margarine so that these buyers would not defect to Walmart. 3-5 Examples of how the computer data is used. 1n 2001 Kimberly Clark introduced a premium version of its Andrex toilet paper in the UK infused with aloe vera. Through the Clubcard research data one could track who was buying this toilet paper and how consistently, and later tracked what other products these buyers were buying so that they could be targeted with incentives. It was found that they bought skincare products so Kimberly Clark sent direct mail to 500,000 customers offering free beauty treatments for purchasing the toilet paper twice....

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Amy Hood growing up in a small town in Kentucky, then a move to Nashvile, Duke and HBS. She joined Microsoft in 2002 on its investor relations team. She moved into management the same time as Nadella who is CEO. Before the pandemic Microsoft's capital expenditures and investments cost about $16 billion. It is now 4 times that at $64 billion. It is Amy Hood's job as Chief Finanacial Officer to see that all that money is well spent for products with demand. AI services bring in about $10 billion annually.  Yet this may just be deflecting by Wall Street of the real question about the funding needs that are being neglected in education, health care and child care, when huge amounts of capital are being diverted by capital markets in ways reminiscent of the warnings of Franklin Roosevelt at the Democratic Convention of 1932. Warnings that the whole capital markets system was not working right, was only defunding the vital needs of the American people. ...

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Kessler in the WP corrects Obama's claim that he created 800,000 jobs. He says this is clever arithmetic as it takes a low point in Feb. 2010 following the financial crisis. Kessler points out that according to the Bureau of Labor Statistics, U.S. manufacturing jobs were 12.56 million in Jan. 2009 when Obama became president. In Nov. 2016, early estimates show there were 12.26 million manufacturing jobs, a loss of 300,000. This loss does not reflect the problems in the U.S. auto industry and older industries in the midwestern states as a result of trade and globalization that speeded up with the rapid industrialization of China. And led as Greg Ip pointed out in a recent WSJ report to a rapid acceleration of job losses in a decade that did not happen in the same scale during Japan's industrialization and urbanization in the sixties. This aggravated the situation in Michigan, Ohio, Wisconsin, Indiana, and Pennsylvania, and was met with a feeble response from Democrats. Even a economist like Krugman favoring the Obama administration's efforts came to the conclusion that TPP did not add much to gains from trade as most of the gains had already been realized. More of the gains went to tech and IT in California, at the expense of the auto industry based in the midwest. A report in WP show a president too close to IT in California and failing to grasp the situation in the midwest. Voters punish whoever is in power, regardless of being Conservative or Liberal, in Canada the hollowing out of manufacturing under Harper in Ontario and Quebec led to the win by Trudeau's Liberals.  ...

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The German and French positions on solutions to the eurozone debt crisis are in conflict. As a result the negotiations between France's Sarkozy and Germany's Merkel are deadlocked. The basic differences revolve around three basic issues. Germany wants to see a lasting solution in which Greece debt is restructured so that banks and other creditors that loaned money to Greece voluntarily take losses so that Greece's debt can be reduced to a sustainable level of no more than 50% of what it is now. France, the ECB and the French banks do not want to restructure Greek debt in this manner beyond the 21% reduction in value of debt under the July 2011 agreement. The voluntary reduction in Greek debt by the banks would prevent a default by Greece and unsettling of the financial markets. France fears market contagion from the restructuring of Greece debt that would place pressure on French banks as the value of the Greek, Spanish and Italian sovereign debt French banks hold declines in value. That would require a major recapitalization of French banks and additional cuts to the French budget. Additional twists to the negotiations are that Sarkozy is unpopular in France with elections six months away. For this reason Sarkozy would prefer to recapitalize after 9 months. A way to get around the need for more deficit cutting (austerity measures) in France, is for the European Financial Stability Fund to be able to borrow money from the European Central bank. The ECB can print euros in that situation. Germany's chancellor Merkel has to consider German public opinion and experts from the German central bank, who are adamantly against using the ECB to print money and Germany committing itself to bankrolling most of the effort. Germany wants France to use its own money to recapitalize French banks, with Germany only responsible for recapitalizing its banks. Merkel told her parliamentary caucus in Berlin that "the path is closed for using the European Central Bank to ease liquidity problems." Because of Germany's insistence on financial soundness for any solution, France being in the more difficult financial position and Sarkozy facing elections willing to come up with a short term fix, and the unwillingness of French and German banks to take the losses necessary for a lasting solution, the Germans see a real solution taking a long time. ...

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Court blocks deportation of a group of Venezuelans on the basis of Alien Enemies Act of 1798, says other remedies can be tried. This is one of 4 laws passed under John Adams in 1798 to remove citizens or subjects of a hostile nation during times of war or invasion. The case now goes to the US Supreme Court. The Court of Appeals of the Fifth Circuit is based in New Orleans with 3 Judges making the decision. Bush appointee Southwick joined Biden appointee Ramirez against Trump appointee Oldham in a 2-1 decision. Oldham in a 131 page dissent says-“Today the majority holds that President Trump is just an ordinary civil litigant. His declaration of a predatory incursion is not conclusive. Far from it. Rather, President Trump must plead sufficient facts — as if he were some run-of-the-mill plaintiff in a breach-of-contract case — to convince a federal judge that he is entitled to relief.” Southwick does not appear to see this as an invasion ignoring the deaths from fentanyl and drug trafficking in the US, the strain on public resources and cities of uncontrolled flow of migrants in recent years, saying- “A country’s encouraging its residents and citizens to enter this country illegally is not the modern-day equivalent of sending an armed, organized force to occupy, to disrupt or to otherwise harm the United States.” Yet even an armed organized force was pushed back in the War of 1812, and has little chance where the current problems have led to the deaths of more young Americans from drug trafficking than three times the deaths in the Vietnam and Korean Wars combined, three times the deaths in World War I and about 75% of the deaths in World War II, something that needs reflection and action. With the changing public sentiment in the UK and Europe and in the US on law and order and on migrants the Supreme Court is faced with coming up with a decision in the best interests of the Nation and its People. ...

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The most alarming report is that from researchers at Peking University Health Sciences Center in Beijing, which shows 10 years of data on lead poisoning. Its conclusion: About 34% of children in China have blood levels that exceed the WHO limit of 100 micrograms per 1 litre of blood. A whole generation of children may be compromised. To avoid being noticed factories that have toxic byproducts or emissions are being setup in the countryside. Lead products are added to herbal products that are sold by weight to make them weigh more. It is regularly added to plastics and vinyl to make it temperature resistant. Once in the human bloodstream lead mimics other substances like calcium and zinc and iron and binds to sites in the brain intended for calcium disrupting brain cells leading to ireversible brain impairment. See the article in August 2, 2007 NYT, about the recall of 1 million Mattel toys, Elmos and Big Birds, for lead detected in them. Note that Mattel's monitoring system did not catch this, it was caught by a retailer....

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The number of student loan borrowers in the U.S with loans over $100,000 has surged from about 1 million in 2010 to 1.82 million in 2014, according to the Federal Reserve Bank of New York. Th borrowers are graduate students who have piled up so much debt in the last decade that 40% of student debt of $1.19 trillion in 2015 is from graduate student debt. A major problem is that there are no limits to graduate student borrowing and the rates are higher because of bad loans in the system, increasing the size of the burden of student debt on individual borrowers rapidly, ironically at a time of low interest rates. This leaves borrowers worse off with unpayable student debt affecting them all their lives, taxpayers paying more, prudent student loan borrowers paying higher rates, and all the time reducing the pressure on universities and colleges to reduce costs for affordable graduate education. This is now a major problem in the U.S. and a major issue in the 2016 presidential election.

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A new Arizona law tells school districts they would lose 10% of their state education funds if their ethnic studies programs do not comply with state standards. Programs that are not allowed are programs that advocate ethnic solidarity, are primarily for one race, or promote resentment toward a race. Classes in the Tucson Unified School District's Mexican-American program have been declared illegal. Arizona's attorney general Tom Horne, declared the classes illegal, in violation of a state law going into effect Jan 1, 2011. Other programs for black, Asian and American Indian students have not been affected. All this is happening in the midst of fierce protests about the state's immigration laws. Mr. Horne, was superintendent of public instruction for Arizona before becoming attorney general. At that time he wrote a law challenging Tucson's ethnic studies program, which the legislature passed and Governor Jan Brewer signed into law in May 2010. It takes aim at texts used in the classes, such as "Occupied America," and "The Pedagogy of the Oppressed."...

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Problems that may be unfixable for the Afghan national army, and for which no increase in foreign trainers could make a difference. About 3% of the army recruits are from the Pushtun south, the main part of the country, where the Taliban are strongest. Officers from the northern areas have to use translators in the Pushtun south, a bad sign. And there is a shortage of officer talent. Gereral Caldwell who is working on training the army, says he was appalled at the emphasis on quantity not quality- the Afghan army has reached 134,000 in numbers. The ratio of instructors to recruits ranges from 1 to 80 to 1 to 466. It will cost $11 billion to maintain compared to an estimated $1 million per American soldier each year. Even if training problems are fixed, having 3% of recruits from the major Pushtun part of the country where the fighting is being done, simply makes the overall problem unfixable. See the group - Defense Department biannual report on Afghanistan, for related insight.

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Toyota's changes in its global architecture in 2011-2013. Reorganization to build amore tight knit management structure for better responsiveness and decisionmaking. The focus is on getting rid of bureaucracy after years of growth that led to excessive and sometimes indirect reporting layers. For instance, chief engineers now report directly to top product planning executives to speed decisionmaking and make new product introductions faster. Regional managers are now shrunk to three groups: North America and China; Japan and Europe; Australia, Russia and emerging markets. It is interesting to note that China and the U.S. are put together- the logic is based on the idea that the buyers in each group tend to have similiar buyer behaviour for vehicles, say Toyota managers. Another significant effort focusses on increasing the use of standardized parts to 50% for vehicles that are of similiar size. The Prius C, the redesigned Camry and the Etios subcompact in India, were cited recently by CEO Akio Toyoda as examples of products that have utilized these changes in methods and approach....