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This editorial deserves an award for best editorial on international economic matters in 2011. The editorial, goes right to the point, when it says the French, the Germans, and the European Central Bank are deluding themselves if they call this weeks resolution of the Greece debt crisis a realistic solution. It is anything but a solution. The Journal calls it a French deception. It is unworkable because the main problem, the high ratio of Greek debt to GDP -which is now 155% and is expected to reach 170% by the end of 2011- is sure to get worse under the arrrangement designed in the interest of French and German banks. Under the arrangement French and German banks and other creditors will get to double their return from 4-5% today to an effective interest rate of 10% if Greece grows by 2% a year, on 49% of the bonds they hold. These bonds will be converted into 30 year bonds. This effectively doubles the interest cost for Greece in servicing this debt. On the other approximately 51% of the bonds the French and German banks would redeem the bonds for cash and a triple A, sovereign zero coupon bond. The Journal asks what is the point of making Greece's debt problem worse than it is now and calling it a solution. The austerity cuts are already expected to lead to a deep recession, something that is also happening in Portugal, leading to a worsening of the debt situation. Creditors are not sharing in the losses under this arrangement, as Germany and the Netherlands have insisted. As the Journal points out they are instead taking out half of their investment and doubling their return on the remainder. And the fears of contagion for Spain are not lessened, as financial markets can clearly see through this for what it is- unworkable and unrealistic. ...

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Amy Chozick of the NYT describes the puzzling idea of a Methodist do-gooder, with serious concern for injustices in the South, making an effort to accumulate money. Especially considering that Hillary Clinton must have known that speechmaking fees would come up in a presidential election campaign. Chozick describes in some detail the two years Hillary tried to shore up the family's finances after Bill Clinton's defeat in the 1980 election for Governor. Following the defeat Bill Clinton went back all over the state to voters to hear their complaints, sometimes for hours at a time. It was upto Hillary to shore up the family's finances. Hillary had to stretch to buy a $112,000 home in a better residential neighborhood. Family friends say Bill was never that interested in money, and never worried about the family's finances. Things were so bleak according to this account that Hillary worried about how they would pay for daughter Chelsea's college tution, as her own mother's experience has always remained with her of being denied a college education because of lack of money. During the Democratic Convention this comes up in the video introduction, something that most people are unaware of, which must have been difficult for an intensely private person like Hillary. Her mother is described in that video as having to go to the corner grocery store as a child with coupons for food. The income of the Clintons as professors in the years around 1975 was $18,000 each. As governor Mr. Clinton earned $33,519 in 1978 with combined income at $51,173 adding Hillary's work at the Rose law firm. A one time deal in the commodities market made 100,000, and an investment in land in the Ozarks led to losses- all at a time when other highly educated people in Arkansas were doing extremely well, including the Walton family. It wasn't until 1992 when Bill Clinton was running for president did the couple make higher income of $297,177 reported in 1992 tax returns. At this time entering the White House, of recent presidents only Harry Truman had lower net worth. Hillary donated her book proceeds for "It Takes a Village," to charity, and turned down an advance. By the time they left office the couple were faced with legal debts, owing $5 million in legal fees- Hillary Clinton saying they were "Dead broke." The former president now sought help to buy a Dutch Colonial in Chappaqua, New York, for $1.7 million. President Jimmy Carter was also facing large losses in his peanut business in Georgia when he left office, only to turn to writing books to salvage his finances. Hoover, FDR, Kennedy, George Bush, George W. Bush, were from families with great wealth or built their fortunes, including candidate Trump, sometimes using influence or connections or in the case of Kennedy's family gaining from the end of Prohibition. Eisenhower, Reagan, Carter were of more modest wealth. Only Harry Truman remains the awesome exception of dignity with extremely modest wealth, a small house in Independence, Missouri, no presidential pension, only an army pension of $112.56 a month in 1953. Truman's story also offers another aspect of public service of an exceptional kind and its value to the country for people to reflect on. A presidential pension of $25,000 was set up one year after Truman left office.  Experts say Truman's Senate Committee over 8 years 1941-1948, helped save billions of dollars in waste, fraud, and in faulty airplane as well as munitions development during the war effort, including saving thousands of lives.  In his farewell address in January 1953, Truman said he had spent 17 hours a day for eight years with no payment for overtime. In the address he correctly predicts that the Cold War would be won and he set the course. It also happened as predicted in that address with changes in the Kremlin and failure in the satellite states. Hillary Clinton put in these 17 hours and gained unmatched experience as Secretary of State, and is in a positon to set the course ahead in a manner that Truman once did in a complex world where careful policy, good judgement and in some situations strong action is needed. Such invaluable public service has never really been rewarded in the way business leaders are, not by a small fraction - too long simply taken for granted.  Considering her life story Hillary Clinton appears to have struggled with this all her life, to create a safety net that too often cracked, sometimes suddenly and unexpectedly. Has this concern sometimes gone too far, could better judgement be exercized. Perhaps or probably. Should it be seen in the context that Truman's situation reminds us. Probably.         ...

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Russian oil policy at work in towns like Kalyazin, 100 miles north of Moscow, and across Russia. Gasification program is being extended, plan is to increase coverage from 53% to 60% of the people in Russia in the 2005-2007 program. Increase prices to discourage wasteful use and promote energy saving technologies in cooperation with German companies so that more gas is available for export at higher world market prices, especially to the European market. Use profits to promote exploration and increase exports. Germany gets 45% of its gas from Russia and has built close relationships with Gazprom. See the article in BW, July 31, 2006, Jack Ewing, "The Lines that Bind" and references to German-Russian ties: 1) Gerhard Schroeder, former Chancellor, as managing director of the pipeline joint venture, the $5.7 billion North European Gas pipeline formed by partners Ruhrgas, BASF and Gazprom. Ruhrgas owns 6.4% of Gazprom, and its CEO Burckhard Bergmann sits on Gazprom's Board. 2) The survey by Berlin pollster Forsa shows that 75% of Germans support the pipeline project, 45% consider Gazprom a reliable energy supplier vs. the 26% who consider Saudi Arabia as dependable. 3) At an industrial fair in Hanover German business leaders supportive of Gazprom as follows. Klaus Mangold for Daimler management board member considers it " a totally normal market economic process" for Russia to have threatended to supply China with the same gas if European countries cultivate other sources of energy supply. Michael Gloss, German Minister of Economics and Technology, says its good thing to have a neighbor close to home as a supplier. Ruhrgas, Essen based, is a subsidiary of Dusseldorf company E.O.N., and Wintershall, Kassel based, is a subsidiary of BASF. Wintershall management Board member Rainer Seele, speaks of not just partnerships but friendships. 4) Interlocking ownership of assets between Gazprom and the German companies. Gazprom 35% ownership of the assets in the WinGas Joint Venture, Wintershall gets 35% of the equity and 25% of voting shares in the gas field that supports the pipeline. Ruhrgas traded assets in Hungary for 25% ownership of the same gas field. 5) The German relationship under Merkel changes little because she has no options, German suppliers have long term contracts with Gazprom. This article shows how the Russian policy is being shaped on the ground in small towwns like Kalyazin. The one on Gazprom about "The Lines that Bind," shows how the policy is to build relationships with German suppliers, interlocking ownership of assets, increasing the supplies to Germany from the current 45% to over 50 %. Using German investment in joint venture with Gazprom for exploration and development and building pipelines and securing long term contracts at higher prices. Note the reference in article "Can Gazprom Keep the Gas On?" by BW's Moscow Bureau Chief, Jason Bush, BW July 31, 2006- ironically the policy that caused a lot of controversy between Russia and Ukraine about Russian energy prices will actually provide Gazprom with more profits to put into exploration. Forecasts referred to by Bush show that it is expected to earn $20 billion on $62 billion in revenues. ...

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Ford's decision to bring its European small car product across the pond so to speak after such a long time is seen as Ford finally seeing the Light.

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The 8000 government jobs that are likely to be lost in Longbenton, England, at "the Ministry," work done for the revenue and customs part of the tax agency of the UK. Premier Cameron plans to eliminate 192 independent government agencies. The north-east of England has long been a part of the UK with lower per capita incomes, and the region more dependent on government jobs.

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With 80% of Wisconsin precinct votes counted, Governor Walker had 55% of the vote compared to Tom Barrett's 44% in the recall election of June 2012.

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Britain faces many risks as a series of spending cuts are implemented in 2011. Inflation was at 4.4% in February, 2011, above the BOE target of 2%. This increases pressure on the Bank of England's Monetary Policy Committee to increase rates from 0.5%. BOE is widely expected to keep this rate on hold because the inflation pressures are seen as temporary. The Institute of Fiscal Studies estimate is that real household incomes have fallen by 1.6% in 2008-2011. Borrowing by the government was higher in February at 11.8 billion pounds, reducing the deficit reduction in 2011. Slower growth will cut tax receipts and reduce deficit reduction in future years.