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A number of critical issues need to be resolved for nuclear energy to play a critical role in energy supply. One is how to dispose of the waste product and storage facilities for the waste product, the other is fuel reprocessing tfor reuse and the separation of plutonium which can then be subject to possible theft for use in nuclear bombs. The other is the rising cost of concrete, steel and other products as well as the labor to build new nuclear plants. So a plant may now cost $7 billion rather than $3 billion for a 1500 megawatt nuclear reactor. Government incentives thus become a necessary part of this to reduce risk to companies. NRG Energy Dominion and Duke Energy have filed applications to build plants based on the incentives put in pklace by Congress. The subsidies include a 1.8 cent tax credit for each kilowatt hour produced which could be worth $140 million per reactor per year, a $500 million payout for each of the first 2 plants built, and $250 million each for the next four. if there are delays for reasons outside the company's control, and a total of $18.5 billion in loan guarantees. The loan guarantees are crucial to get banks to loan the money. Tho other issues are the shortage of skilled workers and contractors with nuclear certification, lack of potential sites for new reactors, and only 2 companies Japan Steel Works and France's Creusot Forge, a unit of Areva, have the technology for building key reactor parts such as massive pressure vessels. Another issue is whether other alternatives can supplement nuclear energy such as solar and the incentives that can be provided to solar energy. So nuclear energy which provides 20% of the US energy needs wil go much higher it will be supplemented by other energy moves and nuclear plants will be built but not to the extent that McCanin would like to see of 45 plants by 2030. ...

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Many of the candidates in the sixth Republican presidential debate were critical of the way John Kerry handled the issue of U.S. boats and sailors seized and then returned by Iran.

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Senator Warren says weak leadership at the S.E.C. is the reason for the lack of effective enforcement and lack of prosecution of individuals for financial wrongdoing.

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Pierre Razoux, a French historian provides this account of the Iran-Iraq war that lasted from 1980 to 1988, at a cost of 680,000 people killed and $1.1 trillion in war destruction and money diverted from the economy. In 1980 Saddam Hussein of Iraq launched the war by attacking Iran which had just come under the Ayatollah Khomeini with the fall of the Shah of Iran in 1979. The war dragged on for 8 years with Khomeini persisting in the war. With U.S. and Saudi policy to increase production bringing the price of oil down from $30 to $10 designed to bring Iran and Iraq to the peace talks, as well as the Soviet Union to withdraw from Afghanistan, all three being major oil producers. The dollar also weakened by 37% during this period. The diplomatic isolation of the Khomeini regime made it more difficult for Iran to buy arms on credit than Iraq could, leading to the war ending with Iran finding it no longer possible to continue the human losses. The Carter administration, particularly with National Security Advisor Brzezinski, tilted towards Iraq to oppose Soviets in Afghanistan, and the Saudis also supported Iraq during the early period. Under president Reagan the U.S. began covert and direct assistance to Iraq to prevent an Iraqi defeat early in the war. Rumsfeld visited Baghdad in December 1983 and March 1984 to organize the U.S. effort to oppose Iran. This may have laid the seeds for future conflicts that lasted through the administrations of the elder and junior Bush. As Razoux points out the Revolutionary Guards became entrenched from this period in Iran's history, making it difficult for election process to work or elected governments to operate. 23 months following the end of that war in 1988 Saddam Hussein launched a war on Kuwait, leading to the U.S. led Gulf war and the entry of the U.S. into a ground combat role, which was followed by the invasion of Iraq under George Bush after 9/11 attacks. The twin wars in Afghanistan and Iraq are estimated to have cost the U.S. over 1 trillion dollars. The result today is largely the division on the ground into Shia regions under the Revolutionary Guards and the Shiite government in Baghdad, and Sunni regions led by Islamic State and autonomous Iraqi Sunni tribes, ignoring the Iran-Iraq boundaries set in the colonial period by the French and the British. In all the amount spent in the Khomeini-Saddam war of $ 1 trillion being about $2 trillion in today's money, and the $1 trillion spent by the U.S., means about $3 trillion has gone into the wars in this region. This comes at a time of deficits in government budgets in the U.S. and a deep recession in the U.S. and Europe. It also explains why the U.S. public is reluctant to take even the minor action such as giving a standoff "no-fly zone" protection to the rebels in Syria, and supported the Obama administration in its reluctance to keep even the basic military force in place to protect its diplomatic mission in Libya, where the cost would be small relative to earlier enlarged military missions under the two elder and junior Bush administrations. The result is that refugees are pouring into Europe from Syria and Libya, through Turkey. Turkey itself is host to millions of refugees in camps along its border. The vacuum and the withdrawal of the Obama administration from the region has led to the rise of Islamic State with covert assistance from Sunni regimes in the region to counteract the growing influence of Shiite Iran. It also may explain the Iranian people's support for the nuclear weapons effort through years of sanctions, leading finally to an agreement with the Obama administration that relaxes sanctions in exchange for a future possibility of acquiring nuclear weapons. Lost in the conflict is the Arab Spring of 2012-2013, with the Tunisian democracy the only surviving result of that movement for democracy and awakening among Arab peoples. The Reagan administration in its aggressive anti-Soviet position made large errors- including ignoring human rights abuses and use of chemical weapons in the Iran-Iraq war, by supporting Iraq and reversing position after Iraq's invasion of Kuwait, having a disastrous effect on the entire region decades later. Much of the Obama administration's reluctance for any action may stem from the U.S. role in this period and its consequences of protracted conflict. ...

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AT&T, Colgate-Palmolive, Medtronic and Nucor are added to the S&P 500 Dividend Aristocrats Index. Companies on this index have raised their dividend payouts for over 25 years. AT&T is the largest dividend payer in the world, paying about $10.2 billion with a yield of 5.9%.

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The Wall Street Journal has examined 77 businesses in which Bain Capital invested during 1984-1999, the period in which Mitt Romney headed the firm. Its findings show that 22% of the firms filed for bankruptcy by the eighth year after Bain first made its investment, some with large job losses. Additional 8% of the firms were in such bad shape that Bain lost all of its invested capital. Only a small number of firms produced most of the returns- 70% of the gains come from 10 firms. Of these 10 firms, four were later found in bankruptcy court. Another aspect mostly overlooked is that where large job gains were made they were mostly in lower wage retail jobs at Domino's Pizza, Staples and Sport's Authority, and did not involve the kind of innovation that produces sustained advantages.

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Apple released a report on working conditions at factories used by suppliers in China. Of these factories 108 facilities did not pay overtime wages. In 93 of the facilities records show over half of the workers worked for more than 60 hours per week. In 5 facilities there was use of underage workers. 112 facilities were not following proper practice in storing, moving and handling of hazardous chemicals. Apple CEO Cook says he will need to monitor these factories very, very carefully.

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Efforts to meet the Bank of Japan target of 2% inflation in 2014-2015.

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Russia's Economy Minister Alexei Ulyukayev, says Russia's economy contracted in the first of 2014 compared with the prior quarter. Intensifed capital flows and lack of new investment could lead to the economy and GDP declining by 1.8% in 2014, according to the ministry forecast. Russia experienced capital outflows of $60 billion in the 2014 1st quarter, almost as much as for all of 2013. Russian law caps spending not covered by direct revenue at 1% of GDP. He called for tapping the rainy day fund for spending on infrastructure and investment to revive growth. Currently much of the revenue from high oil prices goes into building up the rainy day fund, used to cushion the impact of financial crises, after learning from the disaster of the 1998 financial crisis when the ruble collapsed.

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The distrust in negotiations between Republicans Boehner, Ryan, Cantor and Democrats Reid, Obama, and Pelosi, during the weeks in October 2013 preceding the reopening of U.S. government after the shutdown. Republicans call attention to the rising deficit from $4.9 trillion in 1993 compared to $16.7 trillion in 2013, triple the increase in the deficit in just one decade compared to the five decades prior to this period. Democrats say sharp spending cuts would hurt economic growth and the unemployed.

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Simon Johnson, is Professor at MIT's Sloan School, senior fellow at the Peterson Institute of International Economics, co-founder of BaselineScenario.com a widely cited site on the global economy, and is a member of the Congressional Budget Office's Panel of Economic Advisors. Here he talks to the WSJ's Deal Journal reporters. He says the stress test don't mean much because the government using a milder scenario, made the banks look better than they really are. He suggests a wait-and-see strategy, as banks have 1 month to file plans on how they will raise needed capital and 6 months to do it. He sees a steeper yield curve on Treasury debt as a result, with long term Treasury securities like 20 year Treasury notes yielding higher than short duration securities, which should stimulate long term lending. Expect banks to issue more bonds than stocks which dilute shareholders value, and as bond prices are low. Johnson sees real risks of inflation in 1-2 years, becaue of the way the government has inflated the economy, in a manner he says like the private sector bubble. Expect the government to cut back to prevent this from happening. He also sees pretty good earnings in the financial sector in the second quarter which should help stocks. The question remains about how sustainable all this will be, because he says " the government by oversubsidizing the financial sector will get us stuck in the same kind of financial bubble that got us into the mess in the first place." ...

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Too big to run is where the banks are today. Excellence in management would help, but banks have just grown too big, bigger than even before the crisis. Bank of America's 2.3 trillion dollars in assets is 10 times the size of Exxon says the Econmist, and they need to shrink and simplify things. And even with the deities at Goldman Sachs the bank remains a black box.

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Not much in any meaningful way is being done so far for homeowners facing loss of their homes. The bailout plan has wording that encourages the government to help but no concrete measures beyond that. At this point loan modifications by banks are doing little meaningful to help homeowners. Some critical measures of what is happening. According to Sheila Barr of FDIC troubled loan portfolios have yielded about 32% of book value compared with 87% for loans in which the borrower is current, in her statement in Congress. But with fear gripping the credit markets the banks are reluctant to take any immediate losses by writing down principal balances unless the government steps in, because their capital is under huge strain and some banks are going under. Deutsche Bank estimates 40% of homeowners or about 20 million households will owe more than their home is worth by the time the housing market stabilizes. This suggests he scale of the problem as Martin Ferldstein pointed out in the WSJ someof these homeowners may simply walk away from their home as a rational decision. It also suggests how this combined with rising unemployment could lead to significant drops in consumption spending making the situation in the economy much worse, and allowing rising unemployment to play an additional role in increasing home foreclosures for the first time....

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Patrick Buisson, a key Sarkozy adviser, who helped him win the presidential election in 2007, says Marie LePen's chances in the 2017 election are dimmer than people realize. Her Front National is popular in the north of France with working class people who formerly voted in favor of the Communist or Left parties. In the south of France in areas like Nice her niece Marion is popular with people who have social views on the right on abortion, and gay marraige. The problem is reconciling these 2 blocs of voters and the way Le Pen appears to have moderated her views on social issues. The opposing candidate from the Right parties formerly led by Sarkozy is Francois Fillon, actually prime minister for the full term of 5 years under Sarkozy. Fillon's views are closer to the FN voters in the south and opposes gay marraige and abortion, and has a strong foothold with Catholic voters in traditionally Catholic France. It is this split that hurts LePen who had hoped to run against Bordeaux mayor LeJuppe. The left parties are in disarray and likely not to be a factor. Another difference is that the voters in the south of FN do not see it the same way as FN voters in the north on issues of increasing the size of the state. Voters in southern France do not favor increasing the size of the state as Le Pen has promised and opposed by Fillon. Fillon has plans to cut France's large state employees by 600,000. France has a large state owned sector of companies and increasing the work week to 48 hours, reducing the state sector size to help private companies with incentives is seen as a way to increase productivity and grow the economy, plans supported by Fillon. A major problem for Marie LePen is her family name of Le Pen which Buisson says people in France associate with her father Jean LePen, and extremist positions. Buisson thinks Marie LePen will never be able to shake off this image in the second round of the election as she loses some of her right wing Catholic support to Fillon, and fails to attract enough working class voters in the north of France because of the family name. ...

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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       ...