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Discussion at the U.S. Fed Open Market Committee meeting in April 2014 revealed in the minutes shows concern about inflation levels being too low in 2014-2015, a factor in policy about raising interest rates. Other concerns are the weakness in the housing market.

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Letters to the editor on the excessive cost of asthma medications, and the faulty permitting of re-patenting of asthma inhalers as a result of a environmental law related to ozone layer. The re-patenting resulted in the asthma inhalers commonly used being priced much higher than before. The letters from doctors and nursing practitioners details their alarm at what is happening in asthma inhaler pricing that hurts the middle class and the poor in America.

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Richard Haas and Michael Levi of the Council on Foreign Relations suggest a path of negotiations for a peaceful settlement of the Iran crisis. Haas points to the difficulties in solving the impasse in the crisis through solutions based entirely either on military options or on expanded sanctions. The merit of this approach, says Haas, would also be to demonstrate that the U.S. and the E.U nations have done their best to come up with a negotiated outcome.

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Even with a lower troop committment, the new costs of $ 1 million a year for each soldier, threaten to wipe out the $26 billion in savings from Iraq in 2010. The overall military budget could go up by 10% from a high of $667 billion under the Bush administration to $734 billion. Head of the House Appropriations Committee, David Obey, of Wisconsin, says that sending more troops to Afghanistan would drain the Treasury, and "devour virtually any other priorities that the President or anyone in Congress had." Rep. John Murtha of Pennsylvania head of a House subcommitte on defense appropriations says that a majority of the 258 Democrats in Congress would vote against any bill to pay for more troops.

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Chozick and Parker of the NYT show how Donald Trump's frequent sexist comments on women and references to Hillary Clinton in similiar terms are likely to influence the outcome of the general election of 2016. The women's vote has played a significant part in the recent elections of 2008 and 2012 helping Democratic candidate Obama. Trump has a astonishingly high disapproval rating with women, unprecedented in U.S. election history, cited by the WSJ as 75%. Cruz's choice of Carly Fiorina as a running mate shows an awareness of the importance of the women's vote. Some of the comments cited here include the Trump comment that "if Hillary Clinton were a man, I don't think she would get 5% of the vote." It is not clear if this will help the Republican party, as such comments could alienate the mass base of women voters, including the base of young women voters who supported Sanders, women who are independents and moderate Republican women. Hillary Clinton is carefully planning a fall campaign in which such Trump attacks are expected, and the response will be handled not directly by Hillary but by Super PAC's, as Hillary sticks to calling them sexist and energizing her base from the attacks. CBS polls show Trump has the support of 39 percent of white women, compared to 50% for Hillary Clinton. Trump's attacks on women are strangely enough targeted at getting the support of white women- and men - in another wild twist of the 2016 campaign....

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A study published in the British journal Lancet shows that the number of people suffering from diabetes went from 153 million in 1980 to 353 million in 2008. The study shows the U.S. having 24.7 millon diabetics in 2008, which is three times the number from 1980. About 70% of this is from population growth and aging, and the rest from obesity, lack of exercize, changing diet. The American Diabetes Association estimated the cost of treating diabetes in the U.S. at $174 billion for 2007. About 138 million diabetics live in China and India. In India there is an additional cause- malnutrition in early childhood years for the poorer segment of the population. European countries have done better than the U.S., Mexico, India and China. S. Korea and Thailand have done better than other Asian countries. And this is attributed to healthier lifestyles, diet and less obesity in these countries.

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The prospects for direct U.S. talks with the Taliban after the planned opening of a Taliban office in Qatar. The preliminary efforts were started by U.S. special envoy for S. Asia, Richard Holbrooke. Holbrooke died in 2010, and his successor, Marc Grossman, a former ambassador to Turkey, has continued the efforts as senior representative to Afghanistan and Pakistan. Grossman now has a team of officials from the Defense Department, the State Department and Intelligence agencies working with him. After a decade of war, a shift in public opinion in the U.S. to domestic issues, and a withdrawal date by the international forces set for 2014, the time appears right for the negotiations that would end this war. Grossman has the backing of Secretary of State Hillary Clinton in this push for a negotiated settlement with the Taliban. The recent deterioration of U.S. relations in Pakistan to a breaking point, the complex relationship between the Taliban and the Pakistan military, the growing unpopularity of the U.S. in Pakistan, the meaningless struggle with a Taliban with intrinsic links in the Pakistan military, and the fragility of the elected government in the country are other factors that may be leading the U.S. government to look at the bigger picture and grasp any opportunities towards a negotiated settlement. ...

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David Stockman, director of the Office of Management and Budget under Reagan, is interviewed by Tom Keene. Stockman says the US has $52 trillion of debt on a $14.5 trillion economy, a ratio of 3.6 times GDP. Historically, before 1980, it has been around 1.6. This debtification of the US, he says, is the major problem facing the US today. Stockman sees little or no economic growth in the next 5 to 10 years, as debt reduction progresses.

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Unemployment in Fort Wayne, Indiana, is 6.8%, and 14,600 workers are looking for a job. Peters and Wessel talk to employers in this midwestern U.S. city and find that employers are looking for people in manufacturing with just the right set of skills, in other cases the benefits and parttime local school system jobs paying $8-$12 per hour with no benefits go unfilled because of the lower wage.

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Francesco Gurrerera, Money and Investing Editor for the WSJ points to the risks in the U.S. and global economy in April 2012- overdependence on the U.S. Federal Reserve and the European Central Bank, not enough "de-leveraging" of financial institutions after the 2008 global crisis, and the increasing risk associated with individual investors and businesses investing in risky securities in search of yield in a low-interest rate environment.

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This editorial in the WSJ tells readers not to confuse the spirit of a pro-growth initiative in the CEO statement of Oct. 2012 with a simple tax increase. The CEO's are doing this as a part of a larger effort for a strong recovery in the U.S. economy and not simply to increase taxes. For the first time CEO's are backing tax increases to break the influence of what the Journal calls Republican deadenders who flatly oppose any tax increases period leading to unacceptable deadlock and uncertainty that prevents business from investing and hiring. This is part of a broader set of tax reforms to lower rates overall, reduce tax expenditures and support the Simpson-Bowles commission recommendations framework to reduce the deficit.

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GM has advertised the Volt and it can't just back off from it without losing face. New battery technology is needed sy experts before the Volt can be manufactured and there is no plan to put such a battery plant up. Meantime the new Volt has been given a target date of 2010 for a new plant in the GM-UAW agreement.

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This is an amazing story of fortitude and resilience not just for Australia but for the world. Not for defeating the Opposition Leader in his parliamentary seat of 24 years on her third try. No, not that. It is her smiling face as she battled the odds, a year into the death of her oldest son to leukemia, a few years after she herself managed to save her son Zac who was in a pram she was moving in a parking lot when hit by a 88 year old who lost control of his car and pinned her. She lost a leg in that accident and saved her son Zac by pushing the pram out of the way just in the nick of time. She has an artificial leg but this has not deterred her, not when she was refused service at a restaurant, and could not find a home in Dickson, Brisbane region which was disability conducive. She is the daughter of Queensland MP Peter Lawlor. She is shown here with her father and her son Zac. She won the seat held by Australia's  Conservatives Opposition leader Peter Dutton in the Brisbane region for 24 years in the Austrlian election won by Labour's Albanese ...

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Fomer Defense Secretary Leon Panetta says America needs to take up a vigorous foreign policy in his book "Worthy Fights." Both Panetta and Hillary Clinton, and Gen. Dempsey of the Joint Chiefs, Gen. Petraeus of the CIA, supported U.S. taking a strong stand in Syria by supporting Syrian opposition forces in the summer of 2011 and were overruled by president Obama and his election advisers because of the approaching 2012 election. Here Mark Landler provides more insights into Hillary Clinton's deeply held belief shared with Panetta that the U.S. had to take strong action where necessary to deter foes, to get into the ring to use Panetta's expression. The U.S. support for action in Libya to support Britain and France comes from the efforts of Clinton, and any lack of followup one of president Obama's errors in foreign policy. In April 2016 president Obama said that he considered his failure to followup in Libya to help the new Libyan government his biggest mistake in his presidency. Here Mark Landler looks at Hillary Clinton's entire career as showing a conviction and belief on the need for action where necessary in the U.S. global engagement. Compared to the bluster of the candidates Trump, Cruz and Sanders, with little experience to back this up in their careers in real estate, law or the Senate , Landler says Clinton is the last remaining hawk. Here he describes Hillary Clinton's contact and empathy for the troops from her trip to the American base in Tuzla, Bosnia, in March 1996. In fact many have forgotten that Yugoslavia is what it is today after the Milosevic years and the ethnic wars with Slovenia, Croatia, Montenegro, members of the EU and Serbia negotiating to enter EU, because of the bombing campaign taken by Bill Clinton through NATO in 1999 to prevent ethnic cleansing in Kosovo, and peacemaking following the Bosnian War using diplomat Holbrooke to negotiate the 1995 Dayton Accords. Here Landler describes the meetings with Gen. Keane who pushed for the troop surge that worked in Iraq under president George W. Bush. Clinton supported Keane's proposal made in April 2015, for a no-fly-zone in Syria that would help opposition forces till a settlement could be negotiated. Keane pointed out to Clinton that there was a flaw in Obama's policies- that negotiation would work only if the no-fly-zone was used to support opposition forces. By the end of 2015 Hillary Clinton publicly adopted this position. During a period when Americans are weary of foreign entanglements but understand the need to provide leadership where needed, Hillary Clinton, provides a balance between the pendulum swinging too sharply in one direction in the Bush years and in another direction in the Obama years, says Landler. A view also articulated by Leon Panetta, who was chief of staff for President Clinton during the Bosnian conflict and the Dayton Accords, where the U.S. showed strength of purpose in war and also in negotiating the peace without major entanglements....

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China's National Bureau of Statistics made an announcement in Beiijing that 51.27% of the Chinese people now live in urban areas. In 1949 the figure was 10.6%, in 1979 it was 19%. In the space of three decades China has urbanized rapidly. This has brought with it economic growth, infrastructure development and increased employment in the manufacturing sector as new workers moved from rural areas to the cities. With it also come major problems for the country and the leaders of the Communist party led government. Of the 691 million urban residents, 253 million are migrant workers- 37% of urban residents and 19% of the population are in this grey zone described as the "hukou" or household registration system. Under "hukou" these migrants from rural areas cannot access public services in the cities, and have rights to access them in their own villages where they are registered. Integrating these migrant workers who are different than their more affluent and better educated neigbors in the cities so that they become truly a part of the urban areas will remain a huge challenge for China. One of the ways China is addressing this is with the plan to build 36 million units of affordable housing for these migrant workers by 2016. Ever so gradually Chinese officials are relaxing the restrictions on migrant workers- such as Shanghai Mayor Han Zheng's announcement for allowing all migrant workers to rent subsidized housing in the outer parts of Shanghai and committing to "increase the migrant population's involvement in the community affairs, cultural life and show genuine care for them." Food security is another issue as more development on prime agricultural land means less land available for agriculture. Appropriation of agricultural land for industrial use is bringing the country down to the limit of 120 million hectares of agricultural land needed for self sufficiency in food, according to the Land Ministry. At the same time China's leaders want to avoid what the World Bank calls "the middle income trap," where a country reaches a level of modernization and urbanization, and then stalls at that level- the level being around $3000 per capital GDP, which is China's GDP per capita today, according to the National Bureau of Statistics in China. Li Keqiang, who takes over from premier Wen Biao, sees the building of affordable housing for migrant workers as a critical way to continue the urbanization process, and shift the country from its export focus by increasing consumption and the development of industries that support this. A slowing economy dominated by state owned companies focussed on a decelerating export model and an aging but still growing population- NBS says China's overall population was up by 4.8% in 2011 over 2010 and has reached 1.35 billion- presents a tougher set of challenges to the new leadership in China than was faced by the current leadership....

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Jurgen Kroger, is the chief negotiator for the European Commission, and Poul Thomsen, heads the IMF negotiating team, for the 78 billion euros in loans extended to Portugal under a bailout agreement. Kroger offered his views on the agreement in Lisbon. Kroger said he was convinced that the program gives Portugal the means to boost growth and jobs, as it builds a sustainable and competitive economy. Two thirds of the loans come from the EU at an interest rate that is yet to be set. The yield on Portugal's 10 year bonds keeps rising and is now at 10.20%. The IMF will provide one third of the funds. The IMF's Thomsen said the issue of interest rates was addressed by arranging for two thirds of the loan package money coming in the first of the three years of the program. What this does is to take Portugal out of the markets for medium and long term debt for a "little over two years" he said and gives Portugal the "breathing space" it needs to restore credibility before going to the financial markets. The fear expressed by analysts is that the tough austerity measures in the programs of the EU and IMF can cause the economies of these countries to worsen, making it even harder to repay the much larger debts when the loan package money is added to the original debt. The IMF and the EU negotiators had to create a credible program for recovery in the light of these facts. Already Portugal's finance minister is predicting a contraction in the Portuguese economy of 2% in 2011, and 2% in 2012. The negotiators appear to have taken this into account in setting interest rates. Portugal will pay the IMF an interest rate of 3.25% for the first 3 years, with the rate going to 4.25 in the fourth year. By comparison Greece's loans are for seven years with an average interest rate of 4.2%. Ireland's seven year loans carry an interest rate of 5.8%, which it is working to renegotiate. To give Portugal more breathing space the terms of the loans set a slower reduction in the budget deficit than originally planned. Portugal gets to cut its budget deficit to 5.9% of GDP in 2011, and 4.5% of GDP in 2012. The 3% target is set for 2013, one year later. Economists such as Carl Weinberg of High Frequency Economics, say the loan package will only increase Portugal's debt and lead to a larger default later on when the debt amount owed is larger. The debt restructuring solution is being actively debated in the EU, including the risks that European banks would take large hits. Negotiators are also mindful of keeping any negative impact on Spain as low as possible. As Portugal's financing costs have risen, Spain's have risen also. Spain offered higher rates to sell 3.4 billion euros of five year bonds on May 5, with the average yield on Spain's bond sale rising to 4.55%, up from 4.39% on March 3. ...

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Dennis Berman takes a very instructive and reflective look at what happened in history, the thirties when something like what we are seeing now happened, a huge global downturn. One thing that is being repeated is the tendency to think that things will recover maybe in 2009 or 2010. But oftentimes this is not the way it turns out. President Hoover said to the American people in May 1930, " I am convinced that we have now passed the worst and with continued unity of effort we shall rapidly recover." Hoover is now seen negatively but a visit to the museum section of the Hoover Institution at Stanford University shows that he was a geological engineer, well travelled to other countries, was President of Stanford when it was a small school, and was active in relief efforts for Russia in the years of civil war after the first world war. Was he less compassionate than FDR, was he less educated, and less aware of conditions in other countries than FDR, and less determined than FDR? Could it be that he did not realize the depth of the downturn that lay ahead and for this reason failed to take more aggressive action? WIth FDR, less well known as Berman points out, is the period of 1936 and 1937 covered in the book "The Forgotten Man", a popular history of the Depression by Amity Shlaes. The Federal Reserve used New Deal laws to tighten reserve requirements on the nation's banks. The goal was to make the banks stronger, but the unanticipated result was that the banks tightened still further. This aggravated things in the economy when it was still stuck in difficulties. The Dow Jones Average fell by more than a third between August 1937 and January 1938. Unemployment jumped. Historians call it the 'depression within the Depression. Just a year before this period, FDR predicted in 1935, "Never since my inauguration in March 1933, have I felt so unmistakably the atmosphere of recovery." Berman reminds us that the main force in the economy at this time however well intentioned is the government. And the government is at the whims of politicians, and the error proneness of human beings in positions of responsibility, with so many decisions taken on an ad hoc basis, responding to emergencies and dire situations as they arise, with not enough time for careful thought, and often with little sleep. The AIG intervention has already taken $177 billion in government money in a few months, and everything is being done on a crash basis with little preparation mostly in response to surprises popping up in financial markets. As Frank Rich points out the danger to the President's plans and vision is not from the work outlined for education, energy, health care, or Republicans, as much as it is from this uncertain element about available capital to make the wheels of the economy move again to sustain employment and incomes....