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New York Times Original article ›
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Nikos Voutsis, Greece's interior minister, says Greece lacks the money to make debt repayments of 1.6 billion euros to the IMF in June 2015. A proposal by the Left Platform, a faction within Syriza party led by energy minister Lafazanis, which has support of 30 of the 149 Syriza representatives in the Greek parliament, calls for not making debt repayments and looking for an alternate plan. It was defeated by the central committee of the Syriza party on May 24, 2015, with the vote 95 to 75 showing intense opposition within Syriza. Instead Syriza voted for a proposal to call for mutually beneficial negotiations and a deal that would preserve its core goals- a low target for the primary budget surplus, avoid more cuts to pensions, and restructuring Greece's debt to include an investment plan for economic recovery. Both sides in the negotiations, the EU/IMF and Syriza government in Greece, reached an impasse as the negotiating tactics of finance minister Varoufakis led to German finance minister Schauble also taking a tougher stance, saying he could not rule out Greece defaulting on its debt. ...
Wall Street Journal Original article ›
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While automakers are trying to stall legislation on higher fuel economy in Congress they are already planning large investments in engine systems that will raise fuel economy. Nardelli states Chrysler's three goals as boosting quality, improving fuel economy, and overseas presence. A $3 billion investment in engine systems is planned by Chrysler with the goal of improving fuel economy. Note that similiar investments are planned by the German companies and some of the new products are to be shown at the upcoming Frankfurt auto show. There the pressures for reducing auto emissions are building up with a strong environmental consciousness in Europe. Phil Murtaugh who headed GM's China operations before becoming Executive VP at Shanghai Automotive Industry recently will join Chrysler's team as head of Asian operations. He will stay in China and report to Michael Manley Executive VP of International Sales. Chrysler plans to export Chery cars made by Chery Automobile Company in China under its Dodge brand. Note that LaSorda and Press will both share the titles of President and vice chairman and split duties which will be a new arrangement being trued out by Cerberus....
Wall Street Journal Original article ›
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A slight shift in American opinion favoring a deal with Iran is shown in a WSJ/NBC poll in July 2015 compared to the poll in April 2015. Support for reaching a nuclear deal with Iran remains stable at 36% in both polls, the opposed drops by 6 percentage points to 17% from 23%, and the percentage of people who say they do not know enough to formulate an opinion goes up to 46% from 40%. The intricacies of a nuclear technology deal and the sites involved lead to a high percentage of don't know enough to give an opinion. Factors hindering a deal include inspection of military sites, and Iranian intentions. Factors favoring reaching a deal now is the risk that this would mean Iran would go back into isolation and the opportunity to work with moderates might be lost. The Rouhani administration was an effort by voters to elect a government that could ease or remove sanctions to improve the economy and living conditions- its failure would lead to Iran losing an opportunity to open up to the world. The pressure from the U.S. Congress and Israel served to push for a verifiable and effective agreement to control development of nuclear technology for weapons systems. Behavioural factors involved are the very young population in Iran which has no memories about the period before the revolution in 1979- 70% of the population of 74 million are people under the age of 35. This group is eager for ties to the outside and could change Iran's outlook and policies int the future towards moderation. Risks in not reaching a deal also include the possibility of the Saudis developing nuclear technology and nuclear proliferation. Winners from a deal because of the flow of Iranian oil to world markets and a period of extended low oil prices are the U.S., Europe, China and India. Germany gains new markets to replace the growth in the Russian market after sanctions. Lifting of an arms embargo, an added risk in the last days of the talks, would be mitigated by making the lifting of that embargo very gradual....
Wall Street Journal Original article ›
New York Times Original article ›
Wall Street Journal Original article ›
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The declining support inside the EU and in Turkey for Turkey's joining the European Union. Only 20% inside the EU support Turkey's entry in the EU and only 44% inside Turkey, according to a Germn Marshall Fund survey in 2013. As recently as 2004 73% of Turks supported joining the European Union. The EU officials are trying to revive discussions on entry as a way to get the Erdogan administration in Turkey to commit to democratization, respect for the opposition and protesters, and a way to coordinate regional policy in the Middle East.
Washington Post Original article ›
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Only 13% of mothers in the workforce have access to paid leave in the U.S., according to the Bureau of Labor Statistics. 25% of working mothers in the U.S. return to work in 2 weeks.
Wall Street Journal Original article ›
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France's finance minister says the government will focus on growth and set deficit targets that will support growth. There is a feeling in the business community that France has reached the limit for tax increases. The government has given up the goal of reducing the deficit to 3% of GDP in 2013. The government says the deficit will be about 4.1% in 2013 and 3.6% in 2014. Economic growth is expected to be only about 0.1% for 2013, and 0.9% for 2014, lower than earlier forecasts. Muscovici has said the French are fed up with higher taxes, and he is looking for savings in spending. About 15 billion euros of savings are planned in the 2014 budget from ministry expenses and healthcare spending. Extra taxes of 6 billion euros planned for the 2014 budget will now be cut to 3 billion euros. To increase growth it is necessary to stabilize taxation and give business a clear picture for 2014-2015.
WSJ Original article ›
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Much of what is written here about Xi Jinping pursuing Chinese socialist vision was known since he became president in 2013 when China's Communist party was losing its appeal, and efforts were made to seize power within the communist party by a leader in the western province of Chongqing. Bo Xi Lai attempted to take advantage of the situation with appeals to the working class and without any genuine commitment beyond a power grab. It was well known that Xi Jinping is a son of one of the veterans of the Communist party under Mao, Xi Zhongxun, unlike leaders who followed premier Deng Xiaoping such as Jiang Zemin. Zemin was a relatively unknown figure who was in university during the crucial period of 1947-49 when Mao came to power in mainland China. It would not be correct to say that little was known about Xi's own ideas about socialism as the long term answer to China's problems. Xi also came in as president at a time when the Communist party was losing its appeal to working class people after three administrations that followed premier Den Xiaoping. These three administrations followed a form of state capitalism that allowed companies to pollute the environment, compete without any regulations, and allowed to operate without any controls as long as they pursued growth aggressively and expanded the economy.There was an effort by Communist party regional leader in western Chinese province of Chongqing, Bo Xi Lai, to use this as an opportunity to grab power in China. During his first year as president Xi had to resolve this issue by having a court trial after revelations of corruption and misuse of power by Bo Xi Lai.  Xi's father Zhongxun's role in the revolutionary movement offers clues to Xi's own convictions and faith in the party. Zhongxun was a communist soldier who set up the revolutionary base areas in Shanxi-Gansu northwest border region of China that provided a refuge for Mao's army following the Long March. Other clues come from Zhongxun's role as head of propaganda during the period after 1944 and in 1952. Xi's family background particularly on his mother's side shows a fervent commitment to Chinese socialist vision during the chaotic years when the Japanese invaded China and Chiang Kai-Shek's nationalist forces failed to defend China's sovereignty. One reason Xi has been less understood is that little attention is paid to Xi's mother, Qi Xin who was highly educated and fervently believed in Chinese socialism and nationalist spirit during the Japanese invasion in 1938. In fact Qi Xin had to leave middle school after the Japanese took over Beijing. She joined the Counter Japanese Political and Military University to continue education and in 1941 attended the Central Party school. She met Xi's father Zhongxun in 1944. In 1953 she enrolled in the Marx School of Communism, and it was her position at the school that offered her husband added protection during the Cultural Revolution that affected Deng Xiaoping and others. With such a history in the 1930's, 1940's, and 1950's it is likely that Xi was profoundly influenced by his father's role in the revolutionary movement, and his mother's faith in socialism with national spirit as the way to protect against the foreign invasions. It would now appear that by the time Xi joined the Politburo in 2003 there was no question about the future course China would take given the role of his parents, and the events of 1938 the fall of Beijing, his mother having to flee, and the events that followed. Xi showed resilience during the period of the Great Proletarian Revolution when he was sent to the villages at a time when he would be studying in school and college. He was sent to an agricultural commune in largely rural Shanxi province where he worked as a manual laborer alongside other people and developed a relationship with the local farmers. Unlike other leaders during that period which could even be said about premier Deng Xiaoping in 1989, Xi took a different lesson from this experience largely because his father and mother were committed to the socialist vision for the long run. His father was still not fully rehabilitated by premier Chou en-lai when Xi was allowed to enter Beijing's Tsinghua University in 1975. He studied chemical engineering at Tsinghua graduating in 1979. Upon graduation he worked as a assistant for 3 years to a vice premier who was minister of defense. He then left Beijing for Hebei province to work as a deputy secretary of the provincial CCP. He was made Mayor of Xiamen, then governor of Fujian province in 1999 where he tackled environmental conservation before moving to Zheziang province. His father passed away in 2002 and it would appear that he was carefully trained in different provinces instead of staying in Beijing, for a position of national leadership. Xi got his break in 2007 when the upper leadership of Shanghai city was tainted in a wide ranging pension fund scheme. He was made party secretary for Shanghai. This was the position Jiang Zemin had held before he succeeded premier Deng Xiaoping. In only a few months in October 2007 Xi was made one of the 8 Politburo members, ready to succeed Hu Jintao as president. Xi's perception of being sent to the villages and making it to university education was that it was part of the long run socialist struggle, with pain that his father had also endured as simply a phase in which things would be right in the end. Xi's mother comes across as a resilient figure and one who had herself gone through the struggles of the 1930's and aided her husband on one occasion. Some of this resilience could have been passed on to the son. Xi's wife is a zealous participant in Chinese dance and music performances that created enthusiasm for the Chinese socialist revolution from the 1930's period. In his conversations  with colleagues in the party, in culture and temperament, Xi has been forthright about this background and his style of work.  Xi is unlike premier Deng and the presidents who succeeded him such as Hu Jintao mentored by a former mayor of Shanghai Jiang Zemin who came to power in 1989. Xi is more in line with the leaders around Mao like his father in his outlook and thinking, with a cautious temperament that comes from years going through ups and downs of political struggles. He is once said to have responded with dismay about being in a top position in the government knowing how precarious this had been for his father. The education at Tsinghua, his engineering background, and his easy familiarity with farmers in the provinces, mean that he understands China and its history well enough to have the confidence to shape Chinese policies in a way that none of his predecessors had except Mao, premier Chou-en-lai, Liu Shao Chi and a few veterans from that time in the 1930's. That Xi waited patiently for so long to gradually assert his ideas about socialist vision for China may be the surprising part of his behaviour till 2021.  It may be that he wanted to make the changes only after he could persuade party leaders and colleagues of his vision and long run goals. And because the Chinese economy had grown so large that it would take time to steer the ship in a different direction for the long term. In most of the negotiations with president Trump he cautiously let trade negotiators handle the situation, all the time learning about how to tackle problems of China's relationship with US and Europe. US president Biden also has a vision that is veering towards a socialist perspective in terms of bringing gains of progress to workers and families. So does Mr. Trump, Mr. Boris Johnson in UK, and Social Democrat's Scholz in Germany. It is both economic and political as Mr. Xi is quoted as saying in this WSJ report. The necessities of such action are both economic, social and politically driven as capitalism has veered way off course.  In this report it is mentioned that Soho China 40% stake was taken by a large capital markets firm in New York in the hope of large gains, as Soho China developer was a tycoon who wanted to leave China. Seeing it as not favorable to his company following events in Hong Kong. This behaviour of capital markets groups in New York and tech companies in Silicon Valley, driven by profits and not aware of the social and economic problems of working class American families is a problem in the US and in Europe. It is also what has driven so many large tech companies to expand manufacturing operations in China, that hurt US manufacturing capabilities and American workers jobs- an issue raised by president Trump and taken up by president Biden. Biden has already moved to make Intel Corporation change its plans and invest in American manufacturing technologies in a quietly implemented U turn. US president Biden is left with the unenviable job of solving this huge problem during the pandemic. He has also committed to a somewhat socialistic vision with a $3.5 trillion plan for workers and families, as has vice chancellor Scholz in Germany with his own version of programs, after the failures of unregulated forms of capitalism. Scholz goes so far as to say his mission is to show that there is really no such thing as a self-made man, that it is help from society, his fellow citizens, and government, that makes it possible for him to do his work. In a sense the world is shifting away from Reagan forms of capitalism without regulation after seeing disastrous results during the pandemic. Not just China. Some form of government guidance and regulations are now seen as essential in China, the US, UK, Germany and India for a better society and a better, healthier life, and for opportunity for all in each country.   ...
WSJ Original article ›
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This report in WSJ looks at the impact of the 2018 Trump tariffs retained by president Biden as the US seeks to reduce its overdependence on Chinese imports and bring back American manufacturing. This followed misguided policies of previous administrations since Clinton that weakened American manufacturing strengths. Have the US tariffs on Chinese goods worked? The WSJ graph with information from US Census Bureau shows that imports from China in 2022 going down to the levels in 2007 of about 16-17% as a share of US imports, down from a high of 21% before the Trump tariffs halted a rapidly rising curve. Imports from Germany, South Korea and Japan in 2022 were down slightly hovering around 4.5%. Imports increased from Canada and Mexico, the US's traditional partners in North America, around 13.5% as a share of US imports for each country. Also increasing were imports from Vietnam. Some of the imports from Vietnam are Chinese products shipped through Vietnam to evade tariffs, and it is not clear whether the figures from Vietnam have been adjusted for this. President Biden is looking at different scenarios in an effort to tackle inflation. One supported by Janet Yellen, an economist at US Treasury is for the US to relax some of the China tariffs. Most economists in previous administrations including Yellen failed to understand what surrendering American manufacturing to China on the scale and speed that happened would do to communities across America that depended on factory jobs. The devastation of these communities has led to increased divisions in America, weakened American manufacturing, and led to outflow of technologies vital for national security and national well being.  Republican senators, US Trade Representative Katherine Tai and National Security Advisor Jake Sullivan are opposed to any relaxation of tariffs. Studies show the removal of the tariffs would have only a small impact on the consumer price inflation index reducing inflation by 0.26%. Lifting some tariffs on school supplies and summer bicycles as proposed by the US Chamber of Commerce would have little or no impact on the consumer price index for inflation. This is because the inflation is triggered by oil and gas price increases stemming from the Russian policies and invasion of Ukraine. This has also aggravated food and grocery costs  through blocking of agricultural imports from Ukraine. An additional factor was the increased demand after the pandemic easing in 2022, but that demand is already easing in July with glut in inventories at Walmart and Target, and excess warehouse capacity at Amazon. It would also send the wrong signal to China that the tariffs imposed by president Trump after a Section 301 trade investigation and based on improper loss of technologies to China are not being taken seriously by the US, says Republican Senator Hagerty of Tennessee. The Labor advisory committee to the US Trade Representative Katherine Tai also opposes any such move after the serious damage done to US workers and to US national well being and security. This happened under the Clinton, Bush and Obama administrations with failed trade policies that ceded manufacturing to China. ...
The Indian Express Original article ›
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What this Editorial board opinion in the Indian Express is saying is that India should concentrate its efforts on modernizing its economy on a scale that is similar or surpasses that of China because of its access to the latest technologies. Just as China capitalized on the opportunity presented by its entry in the World Trade Organization in 2001, through an economy wide effort to build a manufacturing and export logistics base. India is presented with the opportunity of building its own manufacturing and export logistics base as supply chains are being redesigned in 2023. This requires a longer term plan with clear thinking and concentrated effort with the entire resources of the nation. What looks like a small or gradual shift in supply chain with the US and EU adding India and Vietnam to their Chinese manufacturing base is going to change with every change in world events, as the US concentration of manufacturing in China becomes a situation that is impossible to to maintain. The only logical way for the US and following the US the EU to create a proper balance in its political relationship with China is to change fully its lopsided concentration of manufacturing in China. Biden is only making the initial moves, the EU is only waking up to the need to make its own changes to reduce this concentration. How much distance does the US need to cover to reduce its concentration in China? By a large amount because the shift of manufacturing was excessive and ill advised done as companies in the US raced in a competition to shift outside over 2 decades and simply outdid themselves and performed a disservice to the workers and families of America whom they served. Just for the US to get workers and families to benefit from return of good manufacturing jobs to the US and restore its manufacturing base that has shriveled, it will have to be a massive enterprise, where day by day it becomes more evident that more and more needs to be and accomplished in an accelerated way. What this also means where appropriate to leave a progressively year after a year larger base in India, and also Vietnam, much larger than is envisaged today. This situation is even more acutely felt in Japan which to bring a proper balance in its political relationship with China needs to even more urgently reduce its concentration of manufacturing in China. It must be the task of the Modi government to have a clear view of the road ahead- build the needed logistical base for exports using the latest technologies and set higher and higher targets for manufacturing.  If you look at the map of Asia this is the Global South- India is 60-70% of the Global South with its population of 1.4 billion people mostly young with aspirations for a modern economy like that of the US and Germany. Add to that Indonesia and Vietnam, and other nations already in the redesigned supply chain in 2023 and you have 2 billion people in Asia. Concentrate on this for the next 2 decades for a complete transformation of India, that is what the younger generation demands of its government. ...
NYTimes.com Original article ›
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Greece's New Democracy party and Mr. Mitsotakis wins about 41% of the vote in Greece's elections. Syriza come is second with 21% and Pasok left party at 12%. Mitsotakis has increased Greece's growth to twice the eurozone rate, and cut migrants by 90% in line with EU policy. New Democracy party gets 145 seats in a 300 member parliament. The first round was conducted under proportional representation, only 60% of voters cast their vote. Mitsotakis will go for another election by July because in a second round the winner gets additional seats and this could let it form its own government. It sees this as needed to maintain policies of economic growth that have led to GDP growth at twice the rate of the eurozone. A surveillance scandal appears not to have affected the election results as Greeks opted for stability and growth. Mitsokatis himself put it this way- "This is not the time for experiments that lead nowhere." Greece was almost out of the eurozone when Syriza conducted referendums on the debt repayment that led to a chaotic situation, and then moved in the opposite direction in callous implementation when the Eurozone held firm. Mitsotakis said Greece needs to achieve an investment grade rating to lower borrowing costs. Worldwide the policy of delivering on growth is key to success in elections in democracies and in countries that are catching up after the colonialist phase. This is true for delivery of infrastructure and public services such as water and electricity, modern rail in India. It is true also for winning enough public support in countries like China that run parliamentary representation under one party the CCP. Strict immigration controls since 2015 reflect a similar policy pursued recently by Italy. Migrants have dropped by 90%. This is popular among Greeks. Looking back Merkel made a serious error in letting in migrants coming in from Hungary and Austria at the beginning of the migration inflows into the EU in 2015. Merkel came from former East Germany, the communist led GDR, and had no understanding of how harmful this would be for the European Union. In just one year by 2016 the misguided open migration policies of Merkel had led to her CDU party getting less votes than an anti immigration AfD party in her home state of Meckenburg. It led to anti-immigration movements in Europe that were used by parties in a self-serving way including in Britain that led to exit of Britain from the EU. It also led to a decade of austerity and a lost decade for the European Union as it permanently sidelined parties to the left such as Social Democrats that unknowingly or unwittingly ended up with the blame for the public's discomfort with lack of borders and migrants upsetting borders. In balance the right way to tackle this was to build stronger economies that supported workers and families in the EU, that then invested significantly in developing countries of Africa and Asia to help them catch up with modernization. Another failure in policy was the Bush-Obama Merkel policies in failed states such as Iraq and Afghanistan. There it was fundamentally important not to get involved in any way that committed US or EU's precious resources.  ...
NYTimes.com Original article ›
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Krugman in the NYT describes the dangers of plutocratic power to American democracy. When exercized by the Murdochs, the Elon Musks, the Harlan Crows of this world. He cites presidents who are Republican and broke up the large oil companies in the 1900's, Theodore Roosevelt (1901-1909) who warned about "a small class of enormously wealthy and economically powerful men, whose chief object is to hold and increase their power." This is happening with the power of the so called Tech companies today and both parties seeking to break  up the Tech companies.  Then there is a Democratic president from this period Woodrow Wilson (1913-1921) who followed Theodore Roosevelt. Wilson says- "If there are men in this country who are big enough to own the government of the United States, they are going to own it." Theodore Roosevelt fought political machines such as Tammany Hall in New York as well as Rockefeller's Standard Oil Company. Wilson, a professor from Princeton, continued this tradition by protecting the working class of that time through his New Freedom campaign in 1913.  As a professor Wilson wrote the textbook The State used in colleges of that period, which set forth for the first time the basic idea of the state that we see today- "that forbids child labor, supervises the sanitary condition of factories, limits employment of women in occupations hurtful to their health, institutes official tests for the purity or quality of goods sold, that limits the hours of work in certain trades, and by a hundred and one limitations the power of unscrupulous or heartless men to outdo the scrupulous or merciful in trade or industry." Both were progressive Theodore Roosevelt and Woodrow Wilson. Wilson under his New Freedom platform for the 1913 election, asserted that it was the task of government "to make those adjustments of life that will put every man in a position to claim his rights as a normal human being." What president Biden is doing today is closest to what Wilson and Roosevelt were trying to achieve, and what Modi is doing today in India is also closest to what Wilson and Roosevelt were trying to achieve. In 1913 Wilson won 42% of the vote, Roosevelt 27% because of a split within the Republican party with Robert Taft. Wilson proposed breakup of oil companies to provide a level playing field for all companies. Similar decisions are being considered by president Biden today for Tech Companies. The future of both the US and India is being decided in these difficult times after a pandemic and in the middle of a European war, and a supply chain overconcentrated in one country in Asia. Wilson's idea "to put every man in a position to claim his rights as a normal human being," is being set forth by president Biden through the word "dignity," by Modi in India as "sab ka vikas, sab ke sath" (development for all, with all). The Greens and SPD's Scholz also set forth this idea as "dignity" for the worker for Germany.   ...
The Guardian Original article ›
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Milan will host the World Cities Culture Summit in 2020, and the Winter Olympics in 2026 shared with the Alpine town of Cortina. The international book fair of Turin is moving to Milan. The left of centre Mayor Giuseppe Sala has promoted the city to increase tourism by 50%. And foreign investment is increasing for new construction projects with $21 billion to be taken up in the next 15 years. Experts are asking if this is coming at a price as the rest of Italy has stagnated for 20 years, and the rural large city gap is increasing throughout Europe. The flow of professionals to cities such as Milan, Paris, Munich, Berlin, from other towns and cities is creating a huge shift that experts at the Centre of European Reform see as a problem because of the political turmoil, and rising inequality with ever widening gaps between smaller cities and towns and rural areas with the big cities. This is compounded by ageing and demographics such as seen in the eastern part of Germany, and parts of France. Experts call it The Big European Sort, where a sifting or sorting process is increasingly transforming the demographics of European countries and driving polarisation. This process is also happening in the U.S. Experts say the big cities benefitted from the change with the European single market and the European Union. Places where working class people live are not seeing and increase in wealth which is disproportionately going to professionals clustered in big cities. Deindustrialisation has turned places like Mezio only 20 miles from Milan into industrial ruins. Towns that once voted socialist are now voting far right in these hollowed out industrial places. In the U.S. and in Europe the process was exacerbated by the flow of cheap imports from Asia hollowing out factories in regions around big cities, and by the growth of services industry in big cities with globalization in finance, legal, and other professional services. Fro 1980 to 1995 Paris region lost about $5.5 billion in industrial output and gained $20 billion in services output that also aligns with globalization in areas such as finance, according to CER, Eurostat. The process had accelerated in 1995-2020. By telling this story about Milan and the Lombard region around it like Mezio, The Guardian is saying it is time to look at how everything works together rather than breaking apart- citing the Finnish architect Saarinen about how a chair fits into a room, a room into a house, and a house into its environment, an environment in a city. So the question is how can we build the future by seeing that the city fits into a region, and a region fits into a country. As a young professional described this on BBC television interview recently this is a difficult period with the ability to design the future seemingly snatched away by the times, but also an opportunity to rethink and take the actions today for a better tomorrow for all. This is part of the coverage on Cities in The Guardian looking at how cities can work, and how cities can become part of healthy regions, for organic growth. ...
Washington Post Original article ›
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U.S. senior Republican Senators Lindsay Graham of South Carolina and John McCain of Arizona, are getting ready to launch a wide ranging probe of Russian interference in the U.S. 2016 presidential election through cyber attacks. The probe is not limited to DNC hacking and the concern is not just that any one candidate was targeted but for the integrity of the American election process. Even though it is not mentioned in this report in the Washington Post by Demirjian, Senators and Congressmen from the Republican Party in charge of key committees of oversight on foreign policy and defense now see it as their responsibility to prevent an enlargement of cyberattacks as Germany and France face elections. Mr. Trump has said in an interview with Time magazine that Russia was not responsible for cyber attacks, that it "could have been China, it could have been some guy in New Jersey." Senator McCain is readying a probe into cyber attacks into U.S. weapons systems, and U.S. military, as the issue widens in its scope and significance for the West and for the U.S. and its allies in Europe and Asia. Senate Select Intelligence Committee Chairman Richard Burr (N.C.) will be working closely with McCain, Senate Armed Services Committee Chairman, on this particular issue and Senator Mitch McConnell has been apprised of the discussions, according to this report in WP. Senator Graham said- "They'll keep doing more here until they pay a price." Graham will hold a series of investigative hearings in 2017 about Russian meddling and "misadventures throughout the world."  This will include new legislation.  Graham told CNN on Dec. 7, 2016 in strong language- "I am going after Russia in every way you can go after Russia. I think they are one of the most destabilizing influences on the world stage. I think they did interfere with our election, and I want Putin personally to pay the price." During the debates Governor Pence of Indiana, the Vice President elect took a strong position on Russia, and the Vice President's positions on foreign policy and defense are similar to that of the Republican leaders in Congress.  It is hard to remember a time in the post war period when there was such a distinct difference in foreign policy and defense as it relates to Russia between a Republican president and both a Republican Congress and almost all Republican governors. Senator Corker from Tennessee, who heads the Senate Foreign Relations Committee, is on the short list to be Secretary of State. A related story in the WSJ shows the selection of military leaders for key intelligence, defense and homeland security, and Gen. Petraeus considered for foreign policy, as diverging from historical practice of keeping civilian oversight preeminent in the U.S.. Rep. Peter King, an early supporter of Trump, who is on committees for intelligence and counterterrorism told MSNBC, that he is confident that Trump will not be "taken in by Putin." The U.S. Republican dominated Congress has taken a strong position on Russian interference in Syria and Ukraine. In the House of Representatives Republican Rep. Devin Nunes from California and Rep. Mac Thornberry from Texas are leading efforts on cyber and intelligence as heads of their committees. ...
The Economist Original article ›
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As the trade problems with the U.S. escalate in tit for tat tariffs, China looks back at its history for parallels. The period of the "unequal treaties" imposed by the Western powers on China in the period 1850-1900, the Korean War of the 1950's, and other analogies that come up to people. Yet China's planners and leaders are looking at another situation the Plaza Accord of 1985 in which the western nations pressured Japan into accepting a significantly higher exchange rate to reduce its trade surplus and the Japanese yen appreciated by 50%. Japan cut interest rates from 5% to 2.5%, and introduced huge fiscal stimulus, banks opened up to lend vigorously. The result was a boom by 1990's followed by a bust that led to another decade of lending to loss making firms called "zombie" businesses, that led to a stagnant economy. This has persisted for three decades. This China sees as an unacceptable situation when China has still not achieved developed economy status in terms of per capita incomes. It fears getting into a middle income trap as the economic growth slows and the aging population makes a recovery more difficult.  The difference with Japan in the 1985-1990 period is that Mr. Trump lacks the kind of five nation economic coordination that put pressure on Japan. Today there are differing views on China in Europe and the U.S. and different policies. Mr. Trump is known for his style of deal making and could settle early, as feared by some Republican leaders in Congress who see in China a challenge to America's technological dominance. There are no calls to appreciate China's currency. Only calls for China to change its state subsidies model and put in writing and through laws that change the way of doing business that does not require American companies to hand over advanced technology. This is also a concern for Japan and the European Union countries such as Germany, and is something all nations try to protect in global competition. Japan is still facing the consequences in creating a new competitor in high speed train technology after building the first high speed trains in China and transfer of the high speed train technology by Kawasaki. The Household Survey by the Federal Reserve showing the financial fragility of 40% of American families shown on this page today shows how this situation is likely to evolve as working class families in the U.S. support a trade stance that protects American jobs and technology. Job losses over three decades and a $891 billion trade deficit in 2018 are seen as unacceptable to the U.S. in 2019. A stronger U.S. dollar helped increase the U.S. trade deficit by 10% in 2018, nullifying some benefits of Mr. Trump's trade actions. Mr. Robert Lighthizer was a negotiator in the trade dispute with Japan in 1985, and runs the negotiations with China with support from president Trump. This alone has kept the Japanese situation in 1985 uppermost in the minds of China's leaders as they try to come up with a way to settle the trade dispute with Mr. Trump.     ...
NYTimes.com Original article ›
LyrArc Article Gist
 Harris's role for the Border was limited to telling Central American migrants to stay home. Much of the migration was a result of wars started in the Reagan years in Central American states of Nicaragua and San Salvador. This destabilized the region and led to gangs taking over parts of the country in San Salvador and entrenching Castro style regime in Nicaragua, leading to outward migration of young people. As this report points out Harris was supposed to take on decades of such misguided policies in Central America in a few months. A drought hit agricultural coffee regions of Guatemala increasing migration. Her role instead was to ensure several wins. Win No.1 to generate stability setting up the peaceful transfer of power in Guatemala, singling out corrupt regimes. Win No. 2 to generate jobs. US AID and IFDC loans were increased, foreign investment attracted to generate 250,000 jobs. Win No. 3 the increased stability led to gradually declining migration from Central America. What replaced it was Venezuela. And that is a repeat story of Reagan style wars in Central America. Under the Trump Administration the US did not take up the Monroe Doctrine and act directly to support a stable fairly elected government in Venezuela, an obvious solution. Instead going half way- destabilizing the government but then left it on its own. The result about a third of the population leaving the country in these years to Colombia and other parts of Latin America in a immense humanitarian tragedy.  In 2023 Venezuelans not Guatemalans entered at the US Border in large numbers, most of them middle class families that left Venezuela after hyperinflation and mismanagement of the economy. Realizing the danger by January 2024 Biden negotiated with Senate Minority Leader McConnell and his Republican representative Senator Lankford to pass legislation in the Senate closing the Border. All that was needed was the House to act and 30 years of Border problem would be solved.This was blocked in the House by new Speaker Mike Johnson on advice from former president Trump who chose to use the issue in the 2024 election. Biden then used his executive powers to close the Border leading to lower numbers of migrants under Biden by July 2024 than under Trump. Migration Border Czar was never a term used by Democrats in the Obama and Biden years. Biden who also served in a role given migration as one of the issues to handle under Obama, had this as only one of his assignments. Biden played more important roles in foreign policy with his experience as chairman of the Senate Foreign Relations Committee for decades. Border policy was made by president Obama and his advisers. The same is true of Harris, Border policy being done by president Biden and his advisers. Similar to Biden's role as VP Harris was given assignment to cover foreign policy and was the US representative at 3 Munich Security Conferences in 2021-2024 following the Russian invasion of Ukraine. Chancellor Scholz of Germany said of Harris last week that he had full confidence in Harris as both competent and experienced. ...
The Guardian Original article ›
LyrArc Article Gist
"No amount of misrepresentation or statistical contortion can conceal or blur or smear that record. Neither the attacks of unscrupulous enemies nor the exaggerations of over-zealous friends will serve to mislead the American people." FDR said this  on October 31, 1936, it could also be president Biden.The current Media and Hollywood efforts to choose presidential candidates of their choice runs contrary to "We the People," contrary to views of ordinary Americans, of voters, workers and families. President Kennedy was told he should not take the nomination because he was too young. Kennedys' response was that it was he not Humphrey that went to state after state and won the votes in the primaries, no one else made the effort to run in the primaries in each state. President Biden has the support of 14 million in the primaries. George Chidi from Atlanta reports that undecided voters number about 1 million in the swing states and most are much older than the average. Most may feel insulted by talk about age when they are in the same category.  A 102 years old Lockheed engineer in Atlanta suburbs says he is a Republican but will not vote for Trump. There is also the women's vote in Georgia and Atlanta suburbs with abortion ban as the issue as it was in Kentucky and Kansas. How many vote will also be a factor, making energizing the base a key factor. The idea that one party is doing better than the other is refuted clearly by some of the people in Georgia shown here, and the age factor does not get the prominence the Media have given it, as long as the government is functioning well. Media has failed to look at the policy details of each candidate in a colossal failure that calls for alternatives. Older voters who are the major part of the 1 million or so voters in swing states that are undecided also say that the fact is that with both the candidates- as it is with administrations that are led by young presidents seen as too young to lead (JFK) the opposite of today- many of the decisions are made with an experienced group of advisers around the president. Many if not all also realize that the vast experience of an older president is also an asset. Much of Biden's legislation for chips science, infrastructure, the Inflation Reduction Act have not happened in Germany, France or the UK, and would not have happened in the US without the ability of president Biden to get the bipartisan support from being the one with the most experience in Congress in a long time. The result is the hundreds of thousands of jobs created each month and a growing economy, inflation down from 9 to 3% as the first step to further cost of living action to support ordinary workers and families. Only LBJ comes close and he signed landmark legislation for Medicare and Medicaid, and for civil rights into law 60 years back. By removing America from the wars that Reagan and Bush started and Obama and Trump failed to end president Biden has given the US an opportunity to inspire and lead the free world in a way that has not happened in many decades and build a growing economy, a bright future for the Nation. ...
The Times of India Original article ›
LyrArc Article Gist
Oxfam agency does a study to show the extent of damage done by colonialism in Asia-taking one of three examples India, China and Indonesia with population today of about 3 billion people. British colonial rule in India-from the 1750's to 1950,  estimate is about $34 trillion. It is important because Gandhi's Hind Swaraj (1910) is the result of work done by Dadabhai Naoroji in Poverty and Un-British Rule in India (1901) in coming up with an estimate in the $trillions that showed Gandhi "the extent of the poverty of India." Gandhi's famous letter to the Viceroy in 1923 comes from looking at the British budget for India where little is invested in Indian development much of it going to policing India. An average of $650- $750 per capita income in1600 for both Britain, Netherlands and India, China and Indonesia diverges to $100 in India, China and Indonesia and $10,000 in Britain in 1947. The Dutch and Britain had financed their industrial Revolution that generated most of this prosperity using funds squeezed from taxation, seizure of provincial treasuries,  and unfair trade in India by the British and Dutch East India Companies from 1750 to 1940.  What made this possible is the advance of science and technology that gives the British Navy and the smaller Dutch Navy the edge beginning in the 1600's and maintained for two hundred years to 1800's to defeat the French Navy. And with a leap forward in the Industrial Revolution propelled by science and technology to maintain this edge against all newcomers till 1920's when the US and Japanese Navies contended for superiority. In 1588 the British Navy under Queen Elizabeth had more 400 ton ships and bigger ship guns than the Spanish Empire's Navy under Phillip the Second that dominated Spain, Italy and Germany, and Latin America. This was the turning point the year 1588, when the Spanish Armada was destroyed by the English Navy and by storms in the English Channel. A new book "Armada" by English historians Martin and Parker (2023) shows this as a turning point from which the British and the Dutch started after defeating Spain. There are questions about what led to attitudes towards science and technology moving forward in Northern Europe and stagnating in not just India and China but also in Spain in 1600-1900. One could arguably say and ask how is it that Spain became as poor as India and China by 1900-1950?  Adam Smith (Wealth of Nations) says it is the insulated agricultural valleys of the Ganges and the Yangste river civilizations of India and China that are at fault. Yet one could say this for the Rhine, Danube or the other river based civilizations of Europe. It is primarily the advance of the Renaissance philosophy that opened up thinking in Europe and not in Asia, to ask questions about the world around us, to venture out, to test and experiment then invest capital where Asia and Europe moved apart.      ...
Wall Street Journal Original article ›
Washington Post Original article ›
LyrArc Article Gist
A new West Coast Model is emerging with ballot measures in the states of Washington, California and Oregon. The model is to make up for decades of faulty income distribution which favored tech communities in west coast states leaving behind people from minority communities and the working class outside tech hubs such as San Francisco, San Jose and Seattle. During this period budgets for education and healthcare, social services and essential infrastructure suffered as budgets were squeezed for local governments. Minimum wage also lagged behind and communities struggled to keep up. Washington votes for a ballot measure that raises the minimum wage to $13.25 statewide and mandate paid sick leave for workers. In California a ballot measure makes permanent an income tax surcharge on millionaires to use these funds for education. In Oregon measure 97 places a gross receipts tax on corporations with annual sales in Oregon over $25 million, raising $3 billion a year for schools, health care and other programs. The California and Washington measures are likely to pass, Oregon uncertain, say experts. And even in Oregon supporters have learned from the experience to put forward new proposals on the ballot. The Washington measure is supported by Nick Hanauer, and Zach Silk, president of Civic Ventures in Seattle, who say it is essential to put more money in workers wages to increase growth and to bring better lives outside the tech hub areas. Most of the tech booms of the last two decades have not touched the areas outside tech hub metropolitan areas. The conservative approach adopted in Louisiana and Kansas of reducing taxes first and then when holes in state budgets developed to cut education, health and other service expenditures has not worked, and it has led to the backlash in the form of the new West Coast Model, which is expected to be brought up in other states in the east and midwest. The tech hub areas have grown with the boom in tech but this has largely ignored the rural areas, communities just outside of the tech cities, and led to uneven and distorted growth shortchanging the working class and the middle class, and hurting investment in education and healthcare across each state. Bill Whalen, a research fellow at Stanford University's Hoover Institution conservative think tank ,says that its hard to deny that the balanced growth for all communities across the state has lagged far behind as the tech booms boosted growth in the economies of California, Oregon and Washington. An article in the German online site Zeit on Silicon Valley described this vividly showing how this can happen in communities sitting side by side in the San Jose area, with minority Hispanic communities and working class communties seeing very little of the benefits of growth. ...
Wall Street Journal Original article ›
New York Times Original article ›
LyrArc Article Gist
A small tax on the $800 trillion foreign exchange industry of 0.005%- with the tax on currencies where the leaders of these countries approve like Merkel of Germany and Sarkozy of France- would generate much needed money to help the word's poorest, says Philippe Jouste-Blazy, a former foreign minister of France. For instance he says tuberculosis killed nearly 1.8 million people in 2007, and caused the GNP of some countries to fall as much as 7 %. THis would bring serious gains to economic growth in the poorest countries. Look at the $1 to $5 tax imposed on airline tickets in France and 10 other countries since 2005.It has raised $700 million and financed three quarters of the AIDS treatment now being received by the world's HIV positive children. Unitaid, is an organization Blazy leads. It manages the money from the airline tax, and has negotiated 50 to 60% reductions in the price of pediatric anti-retroviral drugs in low income countries. The reason why the banking community should support this tax. One it is tiny, 0.005% on a foreign exchange transaction, and should not affect the flow of transactions. It is done automatically by computer systems. The currency trading system right now is untaxed. More importantly the bankers says Blazy have been benficiaries of taxpayer money. Isn't it time to give back to those worst affected by the global crisis the bankers helped create? Does'nt it create more credibility for the global financial, monetary and trading systems? He says the tax money could be managed by the Global FUnd to fight AIDs Tuberculosis and Malaria, with upholds programs in 100 countries to high performance standards....
Wall Street Journal Original article ›
LyrArc Article Gist
This op-ed in the WSJ calls for increased trade and investment and closer U.S. ties with Sri Lanka, an Indian Ocean island nation of 21 million people at the southernmost tip of India. This follows the election of Maithripala Sirisena as the new president in the recent election. Formerly called Ceylon, this nation and India share a long tradition of democratic processes and free press since independence for almost 7 decades. These are the only 6 nations with British influence that have preserved democratic processes and mutiparty systems, including a vibrant free press, gradually established during the period of British rule- the U.S., Canada, Australia, New Zealand, India, and Ceylon or Sri Lanka as it is now called. These institutions were transferred to 2 nations during a short period of American rule- Japan and Germany. Western Europe, and Eastern European countries since the fall of the Berlin Wall have joined this core group of countries. All these countries have a common bond and interest in building and strengthening democratic institutions and shared prosperity in a larger global neighborhood. Other countries in the British Commonwealth have struggled to develop multiparty systems and free press such as Malaysia, Ghana and Kenya, or had periods of military rule as Nigeria. Indonesia and South Korea have emerged from periods of military rule and are developing effective democratic processes to join what is now a large community of nations with a common interest in democratic process, truly functioning democracy, respect for the opposition, and freedom of people to express their views to participate in the working of government....
New York Times Original article ›
LyrArc Article Gist
Bill Keller tells U.S. president Obama that if he is serious about looking at the right path in Egypt he should go back and read his own speech made in May 2011, at the beginning of the Arab Spring. He points out that the Eastern European countries under Soviet supported communist regimes did not evolve into democracies without help and guidance from the western world. It took years of work and is still in progress with the European Union leaders taking on the issues of authoritarian tendencies in Ukraine, Romania, and other countries. Early on the reason why European Union leaders, Germany, the UK, France, Spain and other nations were very sensitive to the issue of genocide in Bosnia and Kosovo, was that their idea of Europe after the horrors of the last major war were for a civilized Europe with no place for leaders like Milosevic. President Clinton joined the effort and the western world was firm in its resolve which continued till the transfer of Milosevic to the Hague Tribunal, and the negotiations for a different Serbia to enter the EU completed only recently, nearly 25 years after the fall of the Berlin Wall. These are long and difficult processes because of history, conflicts, poverty, prejudice, ignorance and demagoguery, but the EU, the U.S. and its partners withstood the test. The Arab world is different but the aspirations for freedom and economic progress are the same, and the U.S. should follow the same values and instincts in the way forward in the Middle East. The path chosen by the military in Egypt of firing on civilians and suppressing all dissenters is not sustainable, says Keller. ...

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