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NYTimes.com Original article ›
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The US China student exchange is very uneven- there are 270,000 Chinese students in the US and only 11,000 American students in China. This is a problem as this increases the misperceptions about China and reduces knowledge about China when there are common challenges of climate change, about keeping the global economy healthy, and reducing risks from other states such as Taiwan and Ukraine, and of failed states.

This report in the NYT still fails to recognize the importance to the US of the fentanyl challenge to American lives as it flows from China and Mexico to the US. This is at the root of the dismay in the US with China and Mexico today and of porous borders with Canada and Mexico that are a serious problem for America and its people.

The New York Times Original article ›
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Robert Stavins of the environmental economics program at Harvard is cited in this NYT article by Coral Davenport. Stavin says that even with the change in policy favoring fossil under Trump administration the trend is towards using less fossil fuel and this trend is unlikely to change. This makes the claims of Trump that half a million jobs can be created with less regulation of the coal industry and shale oil industry, less likely. Industry is shifting away from coal for economic reasons and investors preferences, say experts. At the same time the progress away from fossil fuels is likely to be inadequate to avoid the worst effects of global warming, says Stavins. The change by industry is reflected in the decisions made by executives such as Nicholas Akins at American Electric Power, Ohio based electric power company. Akins tells NYT that he is making decisions for power generation 20, 30 and 40 years from now, and this assumes some form of carbon control. He says no question but that industry will move forward with cleaner energy and that means closing large coal facilities. The incoming Trump administration does not affect his policy. Another factor away from coal is dictated by economics- the availability of cheap natural gas from hydraulic fracturing. Incentives for renewable sources such as wind, solar, are not likely to change either say experts, because the solar panels and wind turbines are made in Republican and Democratic favoring districts and have support of Republicans in places like Arizona, Texas and Kansas. ...
The New York Times Original article ›
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Chancellor Merkel's now widely quoted words were made in Munich on May 27, 2017, after a NATO summit meeting in Brussels and a Group of 7 meeting in Italy, in which she was disconcerted by U.S. president Trump's positions on NATO, Russia, climate change, and trade. These words "the times in which we could rely fully on others - they are somewhat over." Merkel added "This is what I experienced in the last few days." After the election of Emmanuel Macron in France, Merkel expressed great relief at the outcome of the French election with Macron winning about two thirds of the vote, setting the stage for the election in Germany after several months of difficult watching and waiting. Now there is new confidence in Germany shaping its own future, with France and the rest of the European Union without Britain. Merkel says she "experienced this" meaning that she had undergone a transformation in these few months, and visibly in the last few days. She was also sending a message to Germans and people of the European Union - "we have to know that we must fight for our future on our own, for our destiny as Europeans." This also complements tactically to form the approach of Germany and France at the leadership of the EU, as French president Macron said at the end of the Group of 7 conference that multilateralism was intact, and the U.S. and EU shared many common goals.   ...
DW.COM Original article ›
Wall Street Journal Original article ›
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The Arctic contains about a fifth of the world's undiscovered oil and natural gas, according to a report by the is US Geological Survey. It is about two thirds of the oil and gas reserves of the Middle East and 90 billion barrels of oil. It will come on stream only gradually because of the Arctic ice and difficult terrain, though climate change and melting ice makes it less formidable. Countries bordering the Arctic, Canada, Russia the USA, Denmark and Norway, will benefit with Russia holding most of the valuable natural gas resources.
Wall Street Journal Original article ›
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Under new proposed changes carbon emissions permits would be sold to industry and heavier polluters would have to pay more. And to make it fair to European companies exporters in other countries like China would have to buy these carbon permits to be able to export to Europe. There is similiar discussion about this in the USA which expects caps on greenhouse gas emissions in a few years. These changes wouldn't go into effect till 2013 at the earliest and industry will be trying to create a level playing field by then. Countries like China and India because they are developing have been exempt from the greenhouse caps under the Kyoto Protocol which expire 2012. Under the Kyoto Protocol which Europe signed and the USA did not sign, European companies are giving carbon permits free to emit a certain amount of greenhouse gas every year, the heavier polluters have to buy the permits from the ones that pollute less creating an incentive for companies to reduce emisssions.
WSJ Original article ›
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Xi Jinping is seen in this WSJ report as putting China on a course as a competitor of the US compared to other leaders such as Hu Jintao and Jiang Zemin, yet these prior leaders faced a enoromous gap in technology and capital to make it ludicrous. The shrinking of this gap is a result of free markets theory that took no account of the national interests of the US or of the European Union in shifting manufacturing lock stock and barrel to China.  A deeper look at China requires looking at it from putting oneself in China's situation since the period of the 1912 revolution and the 1919 May 4th movement for Science, Modernization and Democracy, to better understand its motives and realities. Jiang Zemin could not pose the question of competing with the US at the time because China's per capita GDP was less than $100 in 1990 and by 2000 during Hu Jintao's term still about a tenth of American per capita GDP.  Even today with population in North America of about 500 million in the economies of US, Canada and Mexico, China lags far behind in technology and capital resources. The Biden administration does not believe in this idea of free markets theory, wrong from the beginning that prevailed incredibly and puzzingly for too long, that it does not matter where you make as long as it is made at the least cost anywhere. It ignored what China and the US under Biden both believe for the US or China that the US is its people and the people is the country. For the US the Civil war itself as Lincoln said in rallying people to the Union, was fought because labor was more important than capital. When looked at the situation in China as stated by Xi at the party congress recently is for having made progress for the overriding goal of Modernization to build a moderately prosperous socialist economy. Huge problems in China remain hidden- ensuring self governance that is honest and accountable to the people, creating jobs and opportunities for hundreds of millions of young people even as supply chains shift after the pandemic in Europe and the US, India and other countries to their home countries for Made In USA, Made in Europe, and Made in India. China is not such a believer in the flawed free markets theory of the non existence of national interest to not grasp the natural aspects of the US and EU, India wanting to build their own manufacturing up again to the fullest. In this situation it also probably realizes the need for a pause to the rampant free markets type of growth that has damaged China's water, air and environment as much as it has damaged the world through climate change. Quality of growth is the new ethos and this gives the US and China, India, the EU and other countries a common frontier to shoot for. The nuclear aspect is also there and managing this well is a common interest for all countries exercizing responsible leadership. ...
New York Times Original article ›
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The continued debate about the relevance of a G-8, the need for more countries. OBama sees the G-20 as the really important meeting, and the G-8 meetings as a smaller less significant meeting between the G20 meeting in London and the next one in Pittsburgh. This however leaves the other leaders outside of the G-8 meeting on the sidelines at G-8 meetings, which does not work very well. In this meeting in Italy, Turkey and Egypt were also present, as were leaders from Africa, and from Australia.
Wall Street Journal Original article ›
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The International Energy Agency says China used 2.252 billion tons of oil equivalent in 2009 compared to the 2.170 billion tons of oil equivalent used by the USA. This oil equivalent measure covers crude oil, nuclear energy, coal, natural gas and renewable energy like hydropower. To give an idea of the scale of the increase- China's total energy use was only half of that of the USA in 1999 ten years ago. China plans to reduce emissions by cutting the carbon dioxide per unit of GDP by 40-45% from 2005 levels by 2020. But China looks at higher energy use in the years ahead. Much of the energy use is propelled by infrastructure building and energy intensive use in industries.
WSJ Original article ›
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India is an attractive place for foreign investors with the country moving up 23 places in the ease of doing business rankings of the World Bank. Growth is faster than China since 2015, and GDP is expected to double to $5 trillion by 2030, according to government think tank NITI Aayog. Corporate deal making from foreign investors exceeds that in China. Mergers and acquisitions targeting Indian companies reaching a total of $93.7 billion in 2018, up 52% from last year, according to Dealogic. Overseas purchases were $39.5 billion for India in 2018 compared to $32.8 billion for China. In comparison to China where trade tensions are increasing, India under the Modi government has improved the ease of doing business- implementing a new bankruptcy code, easing foreign direct investment rules, introduced a nationwide goods and services tax to replace a hodge podge of taxes in different states. In the consumer sector Unilever NV made purchase of a malted drink brand Horlicks from GlaxoSmithKline PLC as part of a $3.75 billion deal. Softbank led a $1 billion investment in OYO Hotels. In infrastructure Tata Steel made a $8.3 billion acquisition of steelmaker Bhushan Steel. Reliance Jio's aggressive push in mobile with low prices is leaving the telecom industry ripe for mergers and consolidation- Bharti Infratel acquired Indus Towers for $6.5 billion. Closely held family companies are also selling out their controlling stakes. ...
DW.COM Original article ›
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A German reporter questions the value of the G20 meetings following the violence on streets at the last Hamburg meeting. He says the first G20 during the global financial crisis was useful but later meetings have not lived up to the hope for discussion and search for solutions to world problems. Global trade is at the top of the agenda following the tariffs dispute between China and the U.S. Divergent interests of participants are a problem. Would going back to G-7 in private meetings be a solution asks this reporter.

BusinessWeek Original article ›
Wall Street Journal Original article ›
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The constructive contribution made by the G-20 meetings of leaders towards building agreement on economic and other policies for peace and progress in the global economy. The meetings were especially useful for coordinating policy and addressing issues arising in the global economy after the 2008 financial crisis. Here Li Baodong, China's vice minister for international organizations and conferences, international economic affairs, describes the path ahead: IMF reforms implementation, better coordination of macroeconomic policies, pursuing the anti-protectionist and free trade policies with further support to the WTO and ministerial MC9 meeting in Bali in Dec. 2013, and infrastructure financing proposals for developing countries on the agenda at the St Petersburg, Russia, G-2- meeting in Sept. 2013. Baodong says the mechanism called the Framework for Strong, Sustainable and Balanced Growth as part of the G-20 meetings is a major achievement. Each G-20 economy submits it macroeconomic policy plan for a Mutual Assessment Process under this arrangement. The progress from the Bretton Woods financial architecture to the new arrangement- from the G-6 to the G-20 to include developing countries from India to Mexico and Brazil- is another major achievement, not fully recognized by the public, says Baodong. Interestingly Baodong makes particular mention to global rebalancing, rather than pushing what he calls the impossible task of increasing demand to get growth. This is a realization coming to China's economic policymakers under the new Jinping-Keqiang administration after the overly aggressive effort to stimulate demand in the 2009-2011 Stimulus, and the ensuing financial problems in the banking and credit system. It is indicative of the policy shift and its implementation underway in China in 2013-2015....
ZEIT ONLINE Original article ›
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Von Mark Schieritz of Germany's Zeit Online describes the changes underway following the election campaigns in the U.S., and France, and the Brexit vote in Britain, all signalling the discontent of people left behind by the tech, capitalism, trade and globalization changes of the last two decades. The appeal of one time fringe politicians using racist slogans and divisive rhetoric to appeal to those left behind, appealing to people lacking intergenerational mobility, and without much hope for a better future, is a serious concern. People who are gullible enough, lack college education, or racially isolated so that they are not likely to look carefully at what is being offered in terms of programs and change of competing parties, and likely to overlook the hard and difficult road for corrective course of action, because of anger and pentup fears. Schieritz cites as part of this change the unanimously approved conclusion in its final declaration at the G-20 meeting in Chengdu, China- "The benefits of growth need to be shared more broadly within and among countries to promote inclusiveness." Yet this can be a sort of "too little, too late."  Bankers who are cited in an email going around Wall Street lack credibility with groups on Main Street, to people adversely affected by tech, trade and globalization changes that have been persistently ignored for over a decade, close to two decades. More convincing is the tone of Theresa May, the British prime minister's first statement outside 10 Downing Street- who spoke of the "burning injustices" and her determination to make this a top priority of her government. Still more convincing are the programs to invest $275 billion over 10 years in infrastructure put forward by the leading candidate in the U.S. presidential election of 2016, to provide easier access to public universities and colleges to those left behind, as a sure way to create new jobs and address intergenerational mobility. In fact every leading candidate had made the loss of upward mobility their central plank already in 2015, long before Trump and Sanders started their campaign. The real hope lies in western leaders Merkel, May, and Clinton, all keenly aware students of changes, all women by the way who have sensed the injustice and have the ability to come up with something new and promising for the future, after learning the lessons of the past. ...
Washington Post Original article ›
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President Obama's speech announcing the details of his executive order on immigration on Nov. 20, 2014, starts by saying he is not bypassing Congress or the Republicans. He says Republicans had the opportunity to pass legislation in the House that passed the Senate, or come up with their own bill. And still have an opportunity to come up with a bill he could sign into law that address the shortcomings of the current immigration system. In selling the bill to Americans he points out that this is not an amnesty, that the current system which allows immigrants here to stay illegally without paying taxes or any accountability is an amnesty. He points to deportation of millions as not an option, an out of the character of America. That deportation of criminals will continue and is up 80% in his administration, without mentioning that deportation under his administration for ordinary undocumented immigrants without any criminal record had reached a high of 400,000 a year under his administration, higher than under the Republican Bush administration. In fact it had reached such levels that Hispanic groups stated they would sit out the midterm 2014 elections and not vote for Democrats or Republicans, after providing a significant part of the winning margin for Obama in the 2012 presidential election. President Obama says he has the legal authority to prevent deportation, and that this is essentially what this executive order does- providing a temporary right to stay and work in this country to undocumented immigrants here living in the shadows who are here for more than 5 years, not a permanent status or citizenship. He cites other presidential decisions of the last 50 years, Republican and Democratic, that have integrated large groups of undocumented immigrants, including an executive order by President Reagan. And he refers to the Bush presidencies 41 and 43, where both father and son, considered Hispanic Americans "a part of American life," as good hard-working people deserving a chance to be Americans. The speech ends with an appeal to the compassion of Americans urging them to look at their own individual stories going back one, two or several generations, or Ellis Island where the early waves of European immigrants entered the country in the 19th century, and to immigrants from the period after the early British settlements in the 18th century. This is typical Obama, as much as the calculated decision to pursue a aggressive deportation policy was for the first 6 years of his administration, including the decision for "Dreamers" or young people before the 2012 election. "Scripture tells us, we shall not oppress a stranger, for we know the heart of a stranger. we were strangers once, too. And whether our forbears were strangers who crossed the Atlantic, or the Pacific, or the Rio Grande, we are here because this country welcomed them in." Over 2 million deportations in one of the most aggressive deportation policies of any administration, followed by an effort to stop deportations before the next presidential election, when the NYT had called his deportation policy "infuriating." ...
DW.COM Original article ›
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German perceptions of Mikhail Gorbachev are shown here in DW.com. He is revered in Germany because of Gorbachev's efforts to end Soviet rule in East German state called the GDR, leading to the fall of the Berlin Wall. Gorbachev supported German reunification but did not do this is in a way that ensured that ordinary Russians and citizens of the GDR could make the transition to democratic processes in a smooth way. He also failed to grasp that economic transition could be difficult and would require extensive aid and grants from the west, and that safeguards and protections for retired pensioners and vulnerable sections of society needed to be in place. The following is a reflection of the background in political government and economy of the events in Europe leading to the war in Ukraine.  As a result Gorbachev's instincts were right by first 1956 as a student, and then 1979 as government official about the need for democratic processes to realize the real potential of Russia, just as has happened in many countries that lacked these processes for change in government- Japan, Germany, South Korea, India, Brazil and many countries in Asia and Latin America. But not realizing that these countries made the transition with considerable American and British assistance. Even where there was no direct assistance indirectly the British setup the first limited Swaraj or free rule in India, with elections and elected assemblies in Indian states in the 1930's, following the pattern in Dominion states Australia and Canada. Mohandas Gandhi negotiated within these processes for rights of South African Indians and Colored people, gaining experience, including study of British law.  A son of poor farmers in the agricultural region of North Caucasus, in Stavropol, it is relevant today that his maternal grand parents were from Chernihiv in Ukraine. He came to power in 1980 after entering the Politburo that year. These were the waning years of Leonid Brezhnev, president of the Soviet Union who followed Nikita Khrushchev (1953- 1964). Khrushchev was from eastern Ukrainian region near Donetsk. Leonid Brezhnev was a protege of Krushchev since 1931, from Kamianske, Ukraine.   Gorbachev was influenced by Khrushchev's speech that denounced Stalin in 1956 in favor of a freer and more open society. Khrushchev, became first secretary of the Communist party in 1953 after the death of Stalin and set the pace of post war Soviet society from 1950 to 1964. He removed the fear of the dictatorship of the proleteriat working class, increasingly dictatorial under Lenin, and blatantly arbitrary under his successor to make Soviet Union a freer society.  Yet his tendency to make decisions on his own without consulting others, and the failure of agriculture in the Soviet Union including food shortages led to his replacement by his protege Brezhnev. Brezhnev's whole career was built under Krushchev in Ukraine, in the army in Ukraine, and as a political leader in the Soviet 18th Army that entered Prague in 1945 defeating the Nazis. Why is this relevant? Gorbachev was educated at Moscow State University when the Soviet Union was in the Sputnik era, and felt at the time that it could reach the 1950's standard of living in the US- very different from the earlier leaders. Yet he may have been too much of an optimist and not hands on in understanding the working of a modern economy as large as Russia and the interests of different groups of society that had to be be balanced and protected. His understanding of the US and of how the US and British economies had evolved was limited or nonexistent. The isolation of the Soviet period may have compounded this. The Russian state in the Soviet Union could not simply unwind the power of the state and its intervention and everything would come out right of its own accord.   Leonid Brezhnev, the Ukrainian Russian who succeeded Krushchev from 1964 to 1979 let the system of Soviet rule remain as it was, in the Great Stagnation, leading to lethargy, lack of innovation, and a weak economy with military expansion. Gorbachev tried to regenerate the system by opening it up, but failed to see that there was a risk that it could come apart quickly as it did in just 4 years after he became president in 1985. Only the centralized power of the state had kept the Russian state together from the Tsarist period through the Communist period. The risks of this Gorbachev failed to grasp. What if it happened too quickly without a safety net for the people who could not make the transition. What lawlessness and failure of the rule of law could happen. The US and Britain had evolved their democracies over centuries. Wars were fought in the US and Britain over rights and responsibilities of kings and parliaments. In the US Lincoln fought the civil war not just for emancipation but to ensure safeguards for free white men on the farms so that Labor did not get disabilities placed on them by Capital (entrenched forces of Capital of which the southern plantation economy was only one aspect.)  Japan and Germany were set up as democratic states through American power and constitutional frameworks with Marshall Plans or agreement to take in unlimited imports from Japan. This bad scenario happened in Russia because Gorbachev failed to set the conditions first and work patiently to achieve them including introducing limited  elections and parliamentary processes first in Russia.  Leaders such as Yeltsin who succeeded Gorbachev in 1989, winning the elections that followed, failed to provide a safety net for the vulnerable in the 1980's. Unemployment increased rapidly, life expectancy dropped in Russia, and the economy failed in the early years after 1980. A Marshall Plan like that offered to Germany could have helped but Gorbachev's failure may have been his failure to provide this transition by arranging for West Germany and the US to support a planned transition, a kind of Marshall Plan of Aid, and maintaining a gradual move to democracy as the country was given time to learn institutions of American and British parliamentary democracy. No such Marshall Plan was negotiated for a smooth transition over inevitable obstacles, no safeguards were put in place for illegal efforts to control the state by rogue elements and to seize assets of state companies, no efforts to first introduce limited elections and parliamentary processes for learning democratic process in Russia, and the people of Russia were left with a memory of the this period as a bad lawless period from 1989 to 2005.  Leading to the situation today under Putin of aspiring to the Soviet period as a kind of period that had offered Russia the world recognition it had lost. And this had happened even though the Russian economy had recovered and the standard of living had risen under Putin. Putin's career spanned the period as a Russian official in Dresden, Germany Democratic Republic or Soviet period East Germany to working in the St Petersburg City Council under Yeltsin. He personally witnessed the fall of the Berlin Wall and the fall of the German Democratic Republic from Dresden and Gorbachev's refusal to build a transition period for the changes so that it would not be traumatic for the GDR. Even after reunification these traumas remain in some segments of the older population in East Germany that saw themselves as neglected and support extreme right wing parties in eastern German states by 2020- considering the Soviet period as one in which their lives were less neglected.  After three terms as president Putin with his own traumas from that period in Dresden, and with a mother lost in the period after the Nazi invasion of Russia, a father who survived the Battle of Stalingrad, saw the period of lawless behaviour in the collapse of the Soviet Union as the"greatest geopolitical disaster of the century."  Putin and people around him made missteps and miscalculations launching a war in Ukraine, leading to the situation today- jeopardizing hard won gains for the Russian economy. By 2022 Russian standards of living had risen and the economy was in the best shape it had been in the modern period since the Industrial Revolution. Yet largely exposed because of the dependence on oil and gas during a period of climate change and focus on building future economies free of fossil fuels.  Putin in his own peculiar logic may have seen this as the only opportunity in 2022 before deliinking from fossil fuel reduced the importance of the Russian fuel dependent economy to make some territorial readjusments in Ukraine with a quick war taking Kviv. That turned into a massive miscalculation with the emergence of nationalist fervor in western Ukraine spreading to the whole country of 40 million people. In the future to 2030 with phasing out of the fossil fuel economy, Russia without the connections to the US and European Union's technology and resources it had during Putin's three terms, and facing strict sanctions from US and EU, faces a difficult future. This has cautionary lessons for all countries- the US that read too much into the fall of the Berlin wall and indulged in a losing proposition with free markets that damaged its infrastructure and manufacturing with shifts to China, China understanding of how it to was dependent on the world economy for its future development, India that had to navigate a difficult period and what lessons to draw for building a bigger economy, the EU realizing the failure of its policies of depending on Russia for energy and China for manufacturing with fragile supply chains,  and Russia that there were twists and turns and the need for safeguards and experience building democratic processes before these processes would work for the economy, its people and for Russia as a nation. ...
Wall Street Journal Original article ›
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Individual investors reacted strongly to declining prospects for emerging markets with slowing growth, depreciating currencies, corruption and political uncertainty in 2013. As of the beginning of June, retail investors pulled $18.1 billion from emerging market bond funds, about one third of the amount that went in to emerging markets since the financial crisis in 2007, according to fund tracker EPFR Global. Institutional investors have pulled out less, about $9.3 billion, or 10% of their investments in emerging markets bonds since 2007. A similiar pattern is seen for investment in the stock markets of emerging market countries. The U.S. Federal Reserve's monetary expansion helped pull more money into emerging markets such as India, Indonesia, Brazil and Turkey. As the Fed shifts away from these policies in 2013 emerging market countries have large current account deficits and less money to finance imports and debt.

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