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Local government debt is estimated to be 27% of GDP using estimates by Dragonomics and the China's National Audit Office. Prof. Shih of Northwestern University, an expert on this subject, estimates this to be $2.6 trillion or 42% of GDP. The total government debt is at 82% of GDP using the 27% estimate for local government debt. Using the higher 42% figure for local government debt of Chinese banks gives total government debt of 97% of GDP. Considering the nature of China's financial system in which state run banks and state run enterprises are a dominant feature, local government debt is likely to become the responsbility of China's central government. This also affects China's efforts to tackle inflation because higher interest rates would increase the cost of servicing this debt. As a result the government is unlikely to meet its inflation target of 4% in 2011. Large foreign exchange reserves of $3 trillion, the low interest rates, and high growth rates are expected to help China cope with this looming debt problem. Another round of capital injection to recapitalize banks is expected in 2012-2013 with the transition to a new leadership in China....

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Supporting a 5-4 decision to strike down a Arizona public financing law for election campaigns were Justices Roberts, Scalia, Kennedy, Thomas and Alito.

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The U.S. Supreme Court by a vote of 7-2 struck down a California law that bans the sale of violent videogames to children. Writing the majority opinion Justice Scalia said "even when children are the object the constitutional limits of governmental action apply." Breyer dissented by saying that it made no sense to not allow a child to see a nude picture woman under obscenity laws and yet allow the child to see violent acts against women. Clarence Thomas was the other justice in the dissent. Justices Anthony Kennedy, Ruth Ginsberg, Elena Kagan, Sonia Sotomayor supported the decision to allow violent videogames to be sold to children. Justice Alito supported the decision but expressed serious reservations about the breadth of the majority's opinion saying- " the Court is far too quick to dismiss the possibility that the experience of playing videogames (and the effects on minors of playing violent videogames) may be very different from anything we have seen before."

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Over the weekend June 25-26, 2011, the Basel Committee made the decision to raise bank capital reserve requirements from 7% to 9.5%. Wall Street Journal and analyst estimates show that Bank of America, Citigroup, and J.P. Morgan Chase will have to together raise $150 billon in additional capital. The rule gives the banks time till 2019 to reach the new goal. Banks that get even bigger could face an additional one percentage point increase to 10.5%. As of the end of the 1st quarter of 2011, J.P. Morgan had an estimated 7.3% ratio and would need $35 billion to meet the 9.5% capital reserve requirement. Bank of America would need $68 billion and Citigroup $48 billion to reach the 9.5% target.