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Joseph Stiglitz writes that keeping the dollar as the reserve currency is no longer the option. He tells us that it comes with some hidden costs such as a weaker global economy. Having developing countries keep hundreds of billions of dollars in the US in low interest earning reserves makes no sense considering the needs of developing countries, and the improved prospects for the USA and Europe in exports to a growing developing country economies. He points out that a new global reserve currency, with an orderly transition, may be the most important reform to ensure the longterm health of the world's economy. Its bad for the USA to keep exporting T-bills, says Stiglitz, as it does not create jobs. And its bad for all concerned as it lowers global economic growth. Especially he says when it is so unseemly for developing countries not to use the money to improve living standards in their own countries, with the help of exports from developed countries, that in the end improves global growth and the global future....

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As the Chinese government is pushing for more transfrer of technology one effort is for a Chinese partner and overseas partner to build a car from scratch for the Chinese and export market. Honda is going to build a car from scratch in China with its Chinese partner.

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This Journal editorial talks about the role GE Capital has played in generating profits for GE under CEO Welch, and then leading to a need for government money to help GE Capital survive. It describes as hollow the claims GE makes about leading a drive for US renewal through jobs growth and innovation when earnings were driven by a finance division for many years during the financial boom in mortgages. Capital was then massively misallocated from productive uses to speculative investments. The claims about investment in jobs in the US rings hollow says the Journal, because GE continues to cut jobs in the US- employment in the US for GE fell by 34,000 between 2000 and 2009. By inviting "government to be a industrial policy champion, a financier and a key partner," as stated in a 2008 letter to shareholders, GE CEO Immelt, says the Journal, is simply inviting the same kind of capital misallocation that led to the housing bubble.

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SEC's whistleblower cash for tips program once paid out $279 million on an Ericsson case. The Foreign Corrupt Practices Act is an anti bribery law of the US that prohibits the payment of bribes to foreign officials to win or keep business. In this case the prosecutors from the Southern District of New York in Manhattan bring charges about wrongdoing by Ericcson in Djibouti, China, Vietnam, Kuwait and Indonesia from 2000 to 2016. Ericcson paid out $1.1 billion in a settlement with US authorites in 2019.

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Americans are increasingly using messaging apps to post status and photos. In the last quarter of 2018 the users posting status and comments dropped by 10% to 23%, for photos posted it dropped by 10% to 28%. This shift means people are posting less on news feeds and more on privately encrypted messaging apps such as WhatsApp, and WeChat in China. WeChat also does payments and e-commerce. Facebook is making the change as it shifts away from news feeds that have faced a credibility gap.

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The Markit/HSBC Purchasing Manager's Index for China declined to 49.6 in Jan 2014 from 50.5 in Dec. 2013. A score below 50 shows contraction. China's GDP growth declined to 7.7% in the 4th quarter of 2013.

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World War I was the first major worldwide war since the French Revolution and the Napoleonic wars, and World War II was fought after World War I's punitive reparations exacted from Germany led to the Nazis. US General Pershing did not want to see the French negotiate the settlement, preferring the war to continue till the destruction of the German Empire's war machine rebuilt by the Nazis. Mistakes were made in Europe for which millions of Americans gave their lives to liberate Europe. Russians and Americans see themselves as part of western civilization. On this point there is no difference, none, it is only who is the more important and whose view of the world is right. Asian civilization including China and India see the benefits of western civilization, of the Renaissance, the Enlightenment and the Scientific Revolution and embrace it wholeheartedly and wish it had come sooner on of their own volition and intent. Other than the Korean and Vietnam wars fought in their origins against the Japanese and the French colonialism and Empires, the wars of the Middle East since the end of colonialism stand out. In Iraq, Iran, Syria, Afghanistan, Yemen the only other major wars since the 1970's there are religious and ethnic wars that are of no interest to the people of three continents Europe, Americas, and East and South Asia, for whom the spread of nuclear weapons to the Gulf region brings nothing but dangerous developments for their peoples and for the peace of the world. ...

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The election win of Sebastian Pinera in Chile marks a shift in Latin America away from left parties. Economic conditions improved initially with the left parties in Brazil, Chile and Argentina, following currency crises and debt problems. The commodities boom helped the left party governments finance social programs which increased their popularity. The middle class also benefited with increased consumer spending and a growing economy. All this changed as the commodities boom collapsed and state finances were stretched thin in Brazil and Argentina. Corruption scandals, and decline in economic growth exposed serious problems in delivery of services, infrastructure and other areas which had been neglected. Voters decided to turn to alternatives and parties from centre right with Macri in Argentina and Pinera in Chile as a consequence.   The striking fact is that instead of shifting to the right leaders of the centre right, Macri in Argentina and Pinera in Chile have decided it is best to keep some of the best initiatives and achievements of the previous governments that have created a broader middle class in Chile and Argentina. Pinera says he will preserve some of Bachelet's initiatives in bringing broader access to education and health care. In this sense Latin America has matured so that the sharp conflicts have been set aside to set a more conciliatory tone and work together. Compared to Chile and Argentina Brazil is different in that corruption scandals affect most parties and there is a general loss of confidence in Congress and politicians across the spectrum. Brazil is looking at a situation in which a whole generation of politicians would have to give way to a new generation for the public to gain a renewal of confidence- so deep is the loss of confidence.  ...

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The Guangzhou to Wuhan train high speed line covers the 664 mile trip in 3 hours. 42 such high speed rail lines are set to open by 2012. These trains run at 215 miles per hour. Original plans were to build these lines by 2020 but the global economic crisis led to state planners moving the date up to 2012 and allocating $100 billion for this purpose. Moving passenger traffic to high speed rail lines also frees up the existing lines for more freight. Plans are to build an additional 3000 miles of track for passenger and fast freight trains at 155 miles per hour. Practically every seat on the Guangzhou- Wuhan 14 car train was full on a typical day last week, filled with migrant workers going home. What makes building these lines affordable is construction workers who earn less than $100 a month, a national savings rate of 40%, and rising tax revenues.This particular line cost $17 billion to build because of the many tunnels needed for the line. The three hour train actually makes the journey faster than the 2 hour flight to Wuhan from Guangzhou because of faster check-in times. Train stations are built in industrial districts away from the city, in the case of Guangzhou, a 40 minute bus ride from the city....

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Saudi Arabia continued to follow a policy of high oil production in 2016, and reported that it produced 10.67 million barrels a day in July 2016. Iran is producing at a pre-sanction level of 4 million barrels a day. 2017 oil demand prediction by OPEC is at growth of 1.15 million barrels a day. Experts says that the interests of Iran and the Saudis may be converging to reduce production as they face low oil prices. Iran needs to make large investments and Saudis face budget cuts with low oil prices. They point to this cooperation being temporary as there are issues of competing politics in the region, and beyond that both countries seek to expand their market share.

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Using a new methodology India's statistics agency revises growth for 2013 to 5.1%, for 2014 fiscal year to 6.9%. Growth for 2015 is forecast at 7.4%. For the 3 months Oct-Dec. 2014 the growth in GDP was at 7.5%. Changes in methodology include computing it at market price, not at factor cost. This adds up consumer and firm spending instead of producer costs.