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The large inequalities in Chilean society are exposed after a transport fare increase leads to violent protests.  A climate tax and fare increases led to protests against inequality in France. The Chilean pension system does not provide the working lass with adequate pensions on which they can retire. Large inequalities in wealth under the Chilean model are seen as a result of free market principles which were enshrined in the constitution of Chile after the departure of Chilean dictator Pinochet. Some of the free market ideas worked to improve living conditions in Chile, others such as the financing of the pension system are seen as having failed to provide for a secure retirement for workers. some of Chile's success can also be attributed to demand and pricing of copper with Chinese demand in the past, a situation confronting Brazil and Argentina also. In Brazil the problem is just the opposite with politicians having granted extremely liberal pensions leaving little room in the budget for public services including basic sanitation.  There are also inadequacies in education and health care based on these free market principles, which favor certain groups and not society at large. Protest movement's goal is a rewriting of the Chilean constitution which president Pinera has declined. ...

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This account in the WSJ shows how Masayoshi Son is making huge bets with money from Saudi, UAE borrowed at 7% interest, and his own and partners money. The first Vision Fund  which raised $100 billion was invested quickly over 2 years in startups in the U.S. with an uncertain future and the WSJ says it is unusual that a fund would pile up debt to invest in companies that are unproven and which cost the Fund billions of dollars a year in interest payments. Many of the people hired are not from venture capital and have backgrounds in speculative Wall Street deals, including Deutsche Bank, according to the WSJ. Critics say money invested in every pet walking or hotel renting website is not going to make healthy returns. Creditor are being paid back with money they lent, with interest at about $2 billion this year, according to this report.  Beyond the question of returns there is the larger question of how capital markets are malfunctioning today. Money badly needed for infrastructure and keeping up with technological developments such as 5G and new technologies, for research and development, and for vital public services in health and education to build strong societies, being diverted to highly speculative deals and dealmaking. ...

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German banks lent $21.3 billion to the Icelandic borrrowers according to the Bank for International Settlements, well over a quarter of all international lending to Iceland. Most of Iceland's banks have collapsed. Iceland's central bank chief says lenders are likely to get only 5,10 or 15% back.

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Feldstein says that for the 85% of the people who have healthcare the Obama proposals are not a good deal. The Obama proposals mean higher taxes in the long run to pay for the $1 trillion cost of healthcare for the uninsured group over 10 years. This lower income group has no coverage despite the $300 billion Medicaid program. Feldstein says there surely must be better and less costly ways of getting this lowincome group healthcare. Raising the top income tax rate to 45% from 35%- as a result of letting the Bush tax cuts expire and adding aproposed health surcharge on higher income individuals- would actually lower revenues for the government, as it would change behavior of high income individuals in ways that lower their taxable inome. The result is higher deficits and higher taxes when even without this large deficits are projected for the future. How to slow the rapid growth in healthcare spending? The Obama plan is to cut spending on Medicare. Feldstein sees the govenment's effort aimed at reducing the amount of medical services, as reduced spending comes from fewer services, not reduced payments to providers. Will this result in enough of acost reduction to make the system work. And if the cost reductions are too heavily weighted towards reduced services and not reduced payments to providers would this result in large cuts to services to affect the quality of healthcare for the 85% who are accustomed to a different pattern of healthcare, even though it is structured to allow cost escalation. Feldstein offers no solutions to the problems of cost escalation except to suggest that the Obama plan does not really tackle the cost escalation issues directly with providers, and instead burdens the national finances to an extraordinary degree. And the need for apause and reflection....

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How companies like United Health are lobbying aggressively to shape the new helathcare legislation to their benefit. BW says the health insurers like United Health, Aetna and Wellpoint are already winning through clever and effective lobbying of Congress. Former Senator Tom Daschle works as aconsultant for United Health. Senator Conrad who has led aeffort to replace the public plan with nonprofit medical cooperatives, which would be a weaker competitive threat to insurers, is also influened by the insurers. United Health's CEO Helmsley and its person working with Congress on healthcare Simon Stevens met with Conrad on June 4. When lawmakers in Congress cite consulting group Lewin Group, that 88 million or 56% of those with employer provided coverage would desert private insurance for a government run program, they are quoting acompany owned by United Health. The Congressional Budget Ofice says these numbers are too high. United Health has used savy presentations on how to cut costs, and help Blue Dog and other Democrats articulate their positions, to gain influence in shaping the plan to their interests. United Health thus counts a lot with Matheson, and Mike Ross of Arkansas, who are prominent with the 52 Blue Dog Democrats. and with Senator Mark Warner of Virginia. And United Health put together an effective lobbbying group, even hiring the chief of staff of House Democratic leader Steny Hoyer. ...

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How diagnostic tests in portable toolskits, that patients can use themselves, are being developed at low cost in developing countries like China. This creates the kind of care appropriate for poor countries, where patients need something they can afford, and something that does not require repeat visits to doctors offices or clinics. Ustar Biotechnologies is a Chinese startup, that says it has the technology, costs that the founder says "no one can compete with," and affordable prices for poor countries. The sales of such diagnostic test portable devices or kits is expected to soar in coming years. Quimin You, the inventor and founder of Ustar, graduated in North America and worked with multinationals. His proposals for cheap diagnostic technologies were turned down by multinationals, who in their narrow focus saw these thechnologies undermining their existing products. Now Qimin is back in China with a startup that will do this.

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Rauhala cites an email from Apple CEO, Tim Cook, saying updates he gets about performance in China every morning show strong growth for Apple's business for July and August. China's retail sales are up 10.4% for the first 7 months of 2015, according to the National Bureau of Statistics. The services sector as a whole showed growth of 8.4% in the first half of 2015, and it now makes up 49.5% of GDP, according to government statistics. Overall economic growth is about 4-5%, as the 7% official figure is considered overstated. Zhao Longkai, the executive director of the Beijing Univerisity Guanghua School of Management, says the retail sector should not be affected that much because losses are largely limited to a small number of wealthy investors, though some ordinary retail investors are affected, with overall stock market participation quite low compared to the U.S. and Europe. This and other expert opinion points to a situation of slower growth and debt overhang from the last stimulus, but not a strong connection between the stock market and the economy. The government's credibilty is affected by the failed intervention in July and this time during the sharp declines on August 24-25 the government is letting the market finds its own level, believing it will be better for markets and let them stabilize. ...

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Kevin Warsh is a former governor of the Federal Reserve 2006-2011, becoming governor at age 35. He is a partner at the family office of investor Stanley Druckenmiller. Scott Bessent also had connections with the office of Druckenmiller. He is also a lecturer at Stanford Business School and a scholar at the Hoover Institution. He is married to Estee Lauder heiress Jane Lauder, and has spent the years since 2011 at the Stanford School.  Current Fed chairman was appointed by DJT in 2017 and retires in May 2026. If Powell continues as a Fed governor Warsh would take the seat vacated by Stephen Miran when he retires as Fed governor this week. Meantime the Fed under Powell faces an investigation by the Justice Department regarding renovation of its buildings and Senator Thomas Tillis on the Banking Committee says he will not support Warsh until that issue is resolved in favor of Fed retaining its independence. What is unique about Warsh and his selection by DJT? He is a Republican of long standing and his current views are that interest rates can be lower if the Fed reduces its holdings of Treasury securities and mortgage securities it holds. DJT's frustration is that Powell raised interest rates to fight inflation and after DJT became president was slow in cutting rates to boost the economy. DJT's resort to tariffs as a tool in world trade to ensure a level playing field with China when all other tools had failed means more uncertainty in the economy and DJT wanted the Fed to support his policies by lowering rates. ...

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Flat payment rates for Medicare Advantage to Insurers by the DJT administration which is questioning how health care needs of the country remain unmet and US healthcare comparing very unfavorably with other advanced countries in Europe and Japan and also in India. Some of this is because of the behaviour and practices of the health and pharmaceutical industries in the US. The 2027 payment by government for Medicare Advantage is 0.09 percent. In 2026 it was about 5%. In 2025 it was -0.16 percent and in 2024 it was -1.12% under the Biden administration showing a great deal of dissatisfaction with funding Medicare Advantage. Medicare Advantage was set up by the Bush Republicans in 2003 who set it up with the nice sounding name Medicare Modernization Act. It was an effort to help the insurance companies with government money. Today in the second term of DJT in 2026 affordability is what American people care about most and the DJT administration is unhappy with the insurance companies. Dr. Mehmet Oz is in charge of Medicare and Medicaid Services Agency of the federal government and he says about Medicare Advantage and new policy to save “taxpayers from unnecessary spending (on Medicare Advantage) that is not oriented towards addressing real health needs.” The DJT Kennedy-Oz approach is for comprehensive digital information linking all medical providers, making America healthy again, cutting through the dense fog created over the last 2 decades, making pharmaceutical costs as affordable as the best in European nations, and refusing to subisidize if delivery is poor and health results are poor.   ...

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Justin Lahart offers these clues to a puzzle why is the US unemployment rate stable when no one is hiring? The 2025 US economic growth rate shows strong economic growth, the stock market is robust, and the unemployment rate is low, yet this is not reflected in the job market. What accounts for weak hiring? WSJ analysis shows that for US job market 2026- quit rate is too low at 3.2 million  (Dec 2025) instead of 4.5 million (March 2022), hiring is low at 5.3 million. And overall firms are not laying off people which is reflected in unemployment rate at 4.4%. As a result even with strong economic fundamentals the hiring is at low levels and opportunities for new jobs scarce. In previous years more people quit jobs, more people were laid off and some firms continued hiring. There is also uncertainty about tariffs that may be playing a part- companies can wait and see how the tariffs policy works out over the next 6 monthsand delay hiring. Ai may be another factor for some firms as they evaluate its impact on their hiring needs. Research at the Brookings Institution and the American Enterprise Institute shows that immigration crack down on entry into the US after Biden era surge means less people from overseas to hire and less from the pool of immigrants. A striking piece of this research is that instead of 140,000 jobs needed a month to keep the unemployment rate stable in 2024 the US economy now needs in 2026 after immigration crackdown only 15,000 jobs a month.  ...

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With inflation up, cost of living increase, the $15 per hour wage in high cost of living states such as California and New York does not go very far in tackling cost of living in 2026. Astoundingly 20 states many in the SOuth still follow the $7.25 per hour federal minimum wage that has not changed since 2009. Axios shows the minimum wage by state. In Michigan workers in youth age earn 85% of the minimum wage of $12.80 and hour. As workers lost leverage with the decline of trade unions since the 1990's administrations of Clinton, Bush, Obama, the situation is a difficult one for lower wage workers in many states. The lower wages in retail and hospitality industries also creates downward pressure on all wages which have not kept up till recently in auto and other manufacturing industries. Outshoring increased pressures over the Clinton, Bush and Obama administrations and as Democrats failed to do much about outshoring, it took a Republican DJT and Democrat Biden who followed to reverse the trend and create a push for higher wages. This also has failed as inflation surged during 2022-2023 and outshoring created new problems in sourcing parts from overseas in autos and other industries. The middle class is also not much better off and engineers making $90,000 a year are also living from paycheck to paycheck, with less access to housing that has gone up in price and become less affordable. This cost of living surge and the open borders migration pressure on public services led to DJT's reelection in 2025. ...

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NYT Shanghai bureau chief Alexandra Stevenson sends this report on the magnitude of the problems facing Country Garden, China's largest housing developer, Country Garden has $200 billion in unpaid bills, has missed interest payments on debt. It lost $7.6 billion in the last 6 months. A million apartments remain unfinished. The government's first concern is that buyers are made whole, it is less committed to housing as a driver of economic growth. And the numbers are just way too large for the government to tackle. By one estimate the unpaid bills goes as high as $370 billion in unpaid bills. What happens to all those construction workers, carpenters and other workers who remain unpaid. Country Garden follows failure of Evergrande another huge Chinese real estate developer in 2021. Experts say even if people buy Country Garden's apartments the losses are too large to make up.

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China plans to merge te Baosteel Group Corp. with Wuhan Iron and Steel Group Co. or Wisco. The new company will be close to the size of ArcelorMittal SA. The head of Wisco, Ma Guoqiang, says megamergers are not the best way to achieve true restructuring. He says cutting capacity is needed. In the past this was planned but not implemented as steel prices rose. New plans call for cutting capacity by 45 million metric tons in 2016 and 150 million metric tons in next 5 years. Problems are that U.S., Japan and South Korea's steel mills are increasing return on assets and productivity. Nucor in the U.S. for instance has 4.7% return on assets, by comparison at a Wisco subsidiary this was -3.5% in 2015. One of the problems is that local governments continue to keep even highly polluting steel mills in operation to preserve jobs after shutting them down for a while.

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Chennai, a city of 10 million in India faces a water crisis. It is approaching a situation of Day Zero when the water utility in the city can not any longer provide regular supplies of water through tap water. Tankers with water are used instead. This situation is a result of the 4 reservoirs used for Chennai water suffering from drought in the area- two are dry and the other two are almost dry. Water tankers supply water at the cost of an average salary of 9000 rupees  a month as shown in this story in the WSJ.

Cities such as Shimla, Managalore, Hyderabad, Delhi, also face water supplies crisis. All over India 600 million people live in water stressed areas, according to NITI Aayog, a government policy think tank. By 2030 the demand for water is expected to double. With weak monsoon rains the government is calling for water conservation.

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China is gradually getting back to normal. With few new infections from coronavirus, factories are starting production again, and stores are reopening, people gradually coming outdoors.

For factories there is one problem- as Europe and the U.S. battle the coronavirus and impose their own lockdowns demand has evaporated. Factories are seeing canceled orders and having to operate with smaller number of workers.

All the graphs shown in this report for Beijing traffic congestion, Guangzhou subway rides and property transactions show the curves for 2020 way, way below the curves for 2019.

This also gives some idea of what the road ahead will look like in the U.S. and Europe. That the recovery will take time and patience after a difficult period ahead tackling the coronavirus state by state. Lost jobs, diminished confidence and fallen income will take time to recover.

 

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Big changes that are coming to Hollywood and the film industry with the popularity of streaming during the pandemic.

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Carlos Tavares runs Stellantis the company that combined the operations of France's Peugeot, Italy's Fiat and America's Chrysler right out of his living room in his Lisbon, Portugal home one week every month. He is a believer in the advantages of hybrid work model and says most of the 75,000 workers at the company can work remotely most of the time.The quality time that is generated in this new work model that allows life balance and getting fresh air walks outside is needed when you consider that auto companies such as his are embracing world of electric cars- Stellantis will have 75 models of electric cars by 2030 In this interview with the WSJ shown here he says the fact that one is giving back high quality time that otherwise goes to commuting means you get more time during the day. Carlos Tavares says remote work is an opportunity to recreate a better life balance. He doesn't see any risk in it at all. He sees how hard people are working, harder than they did before, and says giving back one half hour or two hours of quality time actually helps the process of getting good work. Look he says after a long day of remote work people need that time to go out and have a walk for an hour just to refresh one's mind, because the work was so intense. Tavares asks why shouldn't we trust each other? He believes it is the only way to go. Asked about his own work routine for remote work.He says it is the Portuguese routine of  7 am to 4 pm or 5 pm and then an hour out for a walk. He has a small desk in his living room, and he is sitting there with his iPad, grandkids are going by but nobody sees them. Does he miss the face to face contact? He does says Tavares. He still sees other employees as he does go to the office. What about mentoring for junior  employees? This does not have to be five days a week, you may want coaching one day a week, what you don't want is someone on your back five days a week. For Tavares it is all about the quality of time that is used. On company culture the much abused word Tavares makes some good points. If you say this is the culture and hand it to somebody then how do you get that creative mind to exercize his own judgement, how do you get diversity of thinking. Tavares is forthright and honest here- he says if I give you a culture and put you in that box I will get it wrong, and by killing the valuable diversity of thinking I will make it counterproductive. Actually with French, Italian and American operations under one roof and employees of 170 nationalities there is a value in appreciating the value each employee can bring. Practices at Stellantis- Tavares says if you want your people to be in game shape or in great shape mentally don't call them or email them on weekends, so that they can use the weekend to recharge themselves. He even apologizes for calling on a weekend. Or if you email your people tell them to not respond till Monday. ...

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Youth Rehabilitation Act and 60-70% of DC crimes that fall under this Act in 2025, are creating a huge public safety problem in the nation's capital. Here Jeanine Pirro, US Attorney for District of Columbia, describes the problem where the law is so lenient on youth offenders that it has increased crime levels in DC to where residents and visitors to the capital from 51 states in the country and from other countries do not feel safe in the national capital. Pirro says that from 2022 to 2024, 60 percent of all sentences imposed in D.C. Superior Court for carjacking were eligible for sentencing under YRA,  71 percent of all armed carjackings, 69 percent of all armed robberies, and 61 percent of all assaults with intent to kill. Showing that youth crime is the dominant factor and the three laws mentioned here are simply not working and making people feel unsafe in their own neighborhoods. DJT and Attorney General Pam Bondi highlighted this situation at a press conference yesterday with the federal government stepping in to support law enforcement in the nation's capital. ...

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A finding that could create a health revolution in America- unhealthy snacks shift our appetite away from healthy foods. Families who shift away from processed or ultra processed foods and experiment with it for a month find that their cravings for these unhealthy snacks diminish, and they can eat healthy home cooked foods with gusto. Children who simply poked at the home cooked food are shown to relish eating home cooked meals after an experiment turning off ultraprocessed foods and snacks, foods that have unthinkingly crept into our nutrition and our food habits. We are simply setting up ourselves and our children for trouble ahead as these ultra processed foods deteriorate our nutritional fulfillment and cause diseases that would in the absence of ultraprocessed foods not happen. These diseases have become so commonplace today that we owe it to ourselves and our children to take corrective action. People save up for retirement over many years yet create no savings and bank deposits in the area of better nutrition and health, so that when they get older that bank account of nutrition and health is empty and running out. ...

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Why Rachel Reeves type of strict financial rules will hurt Labour. DJT in the US relaxed the borrowing limit to $5 trillion, and has designed his One Big Beautiful Act to have parts of it to boost the economy and investment. Reform UK gains on both sides with Reeves efforts to cut benefits losing Labor voters and it's struggles on migration hurting it on the other side with conservtaive voters who voted Labour. With the Conservatives in disarray, Labour has to keep its focus on improving the lives of Britons.  Today it does not matter whether you are Social Democrat or Christian Democrat or Socialist, what matters is to have common sense policies that help te vast majority of people even in unconventional ways by breaking the rules or fixed ideas about what can be done. DJT and Merz are on the Christian Democrat side, Denmark's PM Mette Frederiksen is Social Democrat, what matters is to have a culture and policies that help the people and stands up for ordinary people in the Nation. ...

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Swiss dairy farmers cutting cheese production by 5-10% to tackle temporary US tariff rate of 39%.  Gruyere and Emmentaler cheese to US make up 13% of Swiss cheese exports. Swiss dairy farmers are looking for markets in Asia and waiting for trade negotiations to bring tariffs down so that they can bounce back. The cow is sacred in Swiss Alpine country because of its role in cheese and mil chocolate production for overseas markets. Switzerland's cheese exports are $830 million in 2024 compared to about $7 billion for Germany, $6 billion for Netherlands, $5 billion for Italy and $4 billion for France, and $2.5 billion for the US. Overall Switzerland is a small exporter for a country the size of Virginia. Much of the extra milk production from a bumper harvest in 2025 can be converted into baby milk powder  and exported to China and India. In trade negotiations the Swiss became complacent even condescending and took the US market for granted. This will now change as the Swiss now have time for some soul searching on how best to negotiate a deal that respects the interests of both nations. ...

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Eliquis blood thinner price direct mail cash $346, compared to Medicare $231 under Biden law for price negotiation by Medicare. Under an executive order issued by president Trump in May 2025 the price of pharmaceuticals in the US are to be brought down to be comparable to the price shown for other developed countries for the same drug.

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About half of UK adults reported experiencing high levels of anxiety says the Office of National Statistics for the the first lockdown. During the second lockdown the fatigue coming from that period in March and the higher level of cases is likely to have increased the number of adults experiencing anxiety. Anxiety was experienced from the loneliness and the effect of the coronavirus on work. A quarter of all adults reported increased sleeplessness. Stockpiling, overworking, irritability, micro-managing, and alcohol consumption, are some of the erratic responses to this level of added anxiety. Experts suggest different responses. leadership and incremental change to put the problem into context. Such as in the case of coronavirus the important behaviours that one can control such as masking properly, social distancing properly, ventilating and cleaning the air with aircleaners, using necessary caution in outside exposure by limiting to the essential, and taking nutrients for defence against virus, other actions. After putting these in place the risks can be minimized.  At that point focusing on the present is seen by experts as the right way to respond. Get through this period or this week first, leave the next week or the next period for next time. To do this  baking, reading, hobbies, running, walking, yoga, gardening, and outdoors, a whole range of other activities including watching sports, listening to radio and music, all fall into this. Spending time doing things that make us happy. A good exercise is asking how does this make me feel, am I more relaxed? am I happier? Put things in perspective, is this catastrophising? Is this making it bigger than it is? Can I put away the illusion of control when control requires some higher power such as God. Can I leave that part to God, to the divine. Cognitive behavioural thinking modification is a way of tackling stress, loneliness, and the depression and anixety that feed on each other. Being aware that we may have wrong behavioural responses, asking questions about how accurate our thinking about things that pose threatening situations is, are helpful in tackling the anxiety.   Just breaking the pattern of behavioural responses of repetitive thinking is helpful by engaging in other activities. Meditation is helpful. Yoga is helpful. In this pandemic learning about nutrition and increasing one's knowledge of food, eating and exercizing right, of cooking, is a useful way of turning a negative into a positive.     ...

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The language in the Eikenberry cables is stronger than previously thought. Eikenberry is Ambassador to Afghanistan and was top American military commader there before McChrystal. His assessment of Karzai the Afghan leader is bleak, about expansion it only makes Karzai more dependent on the USA and makes extrication difficult from Afghanistan, he flatly disagrees with McChrystal's plans to add troops and widen the effort, and his views on the Afghan army's capabilities are bleak also.