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This NYT report by Clifford Krauss cites senior diplomats in the Bush and Obama administration showing Rex Tillerson as a business executive with the skills needed to take a new approach to U.S.- Russian relations damaged by issues such as Ukraine and Syria that led to western sanctions. During Ukraine crisis and sanctions on Russia in 2014 Tillerson did not personally go to Russia, yet continued to negotiate through his exploration chief at ExxonMobil. Other experts such as Mr. Offenheiser of Oxfam America, see Tillerson as facing a quandary of transacting short term deals versus his responsibility to strengthen western institutions, human rights and economic hope for so many. 

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For a robust immune response that is consistent vaccination is essential says this report from researchers at Oxford University.

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This report in the WSJ gives a detailed profile of Liu He, who as vice premier and top regulator is now a top economic official in charge of the financial system and the industrial sector. The appointment will be confirmed at the annual meeting of China's legislature in March 2018. Liu He is a classmate of Jinping at Beijing's Middle School 101, went to Renmin University for a degree in Industrial Economics, and studied at the Kennedy School of Government, Harvard. As the superregulator and overseeing the central bank, Liu He's team has set the goal of bringing financial risks in the Chinese economy under control in 3 years. This team also setup the 2018 economic blueprint that made "Xi Thought" the guiding principles for running China's economy. Financial risks in China's economy from the high debt to GDP ratio which worsened after the 2008 financial crisis and higher lending practices, are seen as a threat to the economy. Policy now is focused on stabilizing the economy and setting a long term path to slower but sustained growth, so that the entire country can share in the benefits of modernization that the coastal regions and parts of the country in the east have experienced during a period of rapid growth. Even the quashing of term limits for presidentcould be seen in the light of this economic blueprint as financial risks could lead to other serious problems if a stable path for the economy is not set and followed over the next decade. As part of this effort Xi Jinping has focused his efforts on corruption to improve perception of the party in the country. Liu He is the main economic official speaking for Jinping at Davos Forum. Another member of the circle advising Jinping is Wang Quishan, who has helped run the anti-corruption campaign. Both Liu He and Wang are expected to handle the future relationship with the U.S. Liu He's policy ideas are for strengthening the state sector with mega mergers, closing less profitable competitors, reducing industrial overcapacity, and making the remaining companies stronger and more profitable. This includes making firms more efficient, better run and more profitable- in the words of the economic blueprint to make "state capital stronger, better and bigger."   ...

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Spain's former king and father of King Felipe, who at one time was respected for his work bringing democracy to Spain after the Franco period, is now involved in issues related to Swiss bank accounts that are affecting the reputation of the royal family in Spain.

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As the USA and Europe move into a deep and prolonged recession China loses some of its biggest export markets and faces a significant slowing down of its economy. China's leaders are pondering how to respond to the crisis which will affect China, and meet the challenges of lower living standards of a neglected rural countryside and farmers compared to the urban coastal areas. This is still where some 800 million of the Chinese people live by official count, so something needs to be done to improve prospects and help generate higher incomes and opportunities for people in the farming countryside. Making land use rights of farmers able to be bought or sold for the first time would generate additional income for farmers, and help consolidate farmland into larger plots, which can use technology and improvements for better yields to keep China self sufficient in agricultural production. Keeping the situation the way it has remained for the last two decades, where local party officials and local leaders controlled the land and where farmers rights were ignored leading to suppression of farmer's protests for illegal land seizures and corruption, may have made it easier for plants to be setup across China and attracted foreign investors. But it has not been good for China's farmers. Chinese party officials at the local level who realized the advantages to them by controlling land and making it easier to set up manufacturing plants with foreign investors may have steered state policy in this direction from the early days after Deng's opening to capitalism and trade. Now with a success in the urban coastal areas and in building infrastructure Chinese leaders in the central government must be faced with a difficult issue of how to move on from here with the loss of China's export markets for its heavily export dependent economy. The need to generate a domestic consumer driven economy must not be lost on the Chinese leadership in Beijing. Something that will keep China's economy moving in the new situation. This is the context in which land use rights may be extended from 30 to 70 years and able to be bought and sold to improve farm incomes and generate internal momentum in the rural areas where most of China's people live. It also offers a contrast to the situation India faces where even the Nano plant of Tata Motors had to be moved from W. Bengal state to Gujarat state over farmers rights to land which in that case was also used as an issue for political agitation. The move by China accelerated industrialization and setting up manufacturing plants as land was taken over by local officials for use with foreign investors but also ended up neglecting the countryside, and created too big a dependence on exports....

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Mayo Clinics 18 month long effort with 400 health policy experts working on the panel has a set of recommendations for the Presidential candidates. It suggests a private system with private insurance companies offering many options and nobody can be turned down. Those least able to afford it would get government help, individuals would pay for the insurance with some help from employers. Since once insured its not dependent on employer its permanent, changing a job would make no difference at all. Interestingly most of the panel experts cited here from Verizon, the Heritage Foundation and others all agree that the present system is coming to a close and a new one has to replace it with coverage for all Americans and a privately based system with contributions made by society and government, by all individuals, and also by employers. Mayo's study, the breadth of the number of experts participating (400 experts), the length of time to understand and come up recommendations (18 months), the respect the institution has among all sectors and groups, should give the consensus view of experts in the US, so that any future health plans do not simply get derailed by partisan opinion, controversy and lobbying....

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This earthquake in Sichuan may have changed China forever. It will no longer be the same country. Its not just how the government responded with premier Wen Biao taking a prominent role and receiving good marks for this, the government had it responded in the way it did in previous earthquake in 1976 with hundreds of thousands killed, would have found itself isolated by public criticism and mistrust. Consider- much of the force for open discussion and sharing of information comes from young people who are most of the 228 million internet users in China, who also use cellphones and blogs. Its not just criticism its been used for civic action. Chinese users of Twitter, a group instant messaging system, was quick to disseminate information about the earthquake as soon as it happened. Groups of university students in Chengdu set up a website to collect tips from front line reporters in the field. One report drew attention to 9000 people trapped in one village. What experts are saying- Demand for information has grown exponentially in China in the last ten years. Its not just about human rights or democracy. Its about education, safety, land rights or an accountable government. (a researcher at China Media Project at Hong Kong University). iternet users in China...

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South Korea's crowded hospital environment and Asian culture of being in continual close proximity for caretakers lets the MERS virus spread. The government's failure to alert hospitals of known cases means doctors are totally unaware of the MERS outbreak until many patients with MERS were transferred to larger hospitals in Seoul. The result inhaled droplets of MERS virus and rapid spread. The government feared there would be panic in the neighborhoods and acted too late. The known cases of MERS virus reached 95 cases, and 2500 people are being monitored. All this happened in a few days- The first infected patient was at an hopital in Asan, south of Seoul on May 12-14, 2015. He was sent to a larger hospital St Mary's in Pyeongtaek, near Seoul, with no one knowing he had been to Saudi Arabia and the UAE. From there he was transferred to Samsung Medical Center in Seoul, and he was diagnosed for MERS virus on May 20. By this time 37 people at MERS were infected, and one of them admitted to Samsung hospital in Seoul infected a large number of people there. President Park Geun-hye's Gallup Korea approval rating dropped six percentage points to 34%, and the government moved to make an "all-out response."...

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The Financial Stability Oversight Council puts out a study and recommendations on the Volcker Rule that will serve as a guide to drafting the rules for implementing it. The overall tone of the report is that regulators must be vigilant for ways in which banks may try to evade the rule. Mr Volcker said after reading the report that it is clear and straightforward in its effort to let banks know that you cannot hide proprietary trading in other activities.

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Cricket takes off in Brazil at Pocos de Saldas near Sao Paulo.

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Ji Chaozhu, immigrated to the U.S. during the Japanese invasion of China on the advice of Zhou Enlai. He studied in the U.S and returned to China in 1949. He was the main interpreter for the Chinese leaders in their meetings with American leaders from 1954-1979.

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Canada's Carney gives up on USMCA renegotiated deal with US as he makes deal with China Jan 2026. No date is set for USMCA renegotiation. Carney stepped up the criticism of the US and suggested middle powers find their way by makiing deals of their own. This has drawn criticism from DJT, Luttnick and Scott Bessent, the Commerce Secretary and Treasury Secretary. Canada's economy has some fragile points in its dependence on the US and this may not be the wise course of action for Canada at this time. Germany, Italy, are meeting on February 12 and Europe may follow a different course of action of working with the US, India is close to a trade deal, so that Carney's and other remarks about going to partner with China at a gathering as isolated as Davos is from the real world may be very counterproductive.