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The Chinese government's report on the high speed rail accident at Wenzhou, in July 2011. The report said top Railway Ministry officials bear responsibility for focus on "speed of the railway project construction and neglect of safety management." The railway minister Liu Zhijun, who was removed because of corruption charges bears responsibility, and 54 other government and ministry officials, according to the report.

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Municipal yields are back up. The Center on Budget and Policy Priorities says states in the USA will have to close budget gaps of $140 billion in fiscal year 2012, ending in June, down from $160 billion this year. But real shortfalls will increase because federal stimulus funds that helped state and local governments will fall from $59 billion this year to $6 billion next year. Local governments depend on states for one third of their revenue, according to a Congressional Budget Office report, which makes them vulnerable. Property taxes account for a quarter of local government revenue and this too will be declining with declining assessed values. The Federal Reserve Act limits open-market purchases of munis to ones with maturities of less than 6 months, which reduces the scope for help from the Fed.

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The difficult task facing Governor Jerry Brown of making the painful cuts in education, the state's university system and social services, as he faces a $15.7 billion gap in the state budget. The Republicans in the legislature have made it difficult for governors in the state to get the two thirds majority to increase taxes, and the Democrats have opposed the spending cuts, leading to chronic budget shortfalls. Governor Brown says unless temporary tax increases, including quarter percent rise in sales taxes and income tax surcharge on the wealthy are passed, California will have to make cuts of $6 billion in January 2013. This would include cuts in public schools and the university system. This would be in addition to cuts of $8.3 billion he has proposed for cuts in welfare, social services, and health care for the elderly. Experts say the political culture in the state is a problem, and is proving to be impervious to this governor's long years of experience and considerable skills. Jerry Brown says California, and the U.S. are both living beyond their means and need to take the medicine....

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Yannis Palaiologos of Katherimini newspaper in Greece gives a failing grade to Pasok and the New Democratic party in Greece for letting Greece get into the debt crisis and not taking the action needed in tax collection to protect the interests of the upper classes. Palaiologos says the burden of servicing the huge debt has fallen disproportionately on the lower and working classes, which is the reason for the rapid rise of Syriza in Greece and its decisive win of the popular vote.

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House Ways and Means Committee chairman Dave Camp says the implicit subsidy on "too big to fail" financial firms needs to be addressed. His proposal is for a quarterly tax of 0.035% on assets over $500 billion. The tax would raise tax revenues of $86.4 billion over 10 years. The tax does not go into some bailout fund, which is one reason it does not address the problem adequately, says the WSJ.

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It appears that P&G and Unilever have caught on to what may be one of the biggest developments in consumer products as the global economy incorporates hundreds of millions of small budget buyers in developing countries from Mexico to India. Just look at the figures here- these high frequency stores like the one in Leon, Mexico mentioned here, bring in per shopper 23 pesos or about $2, with annual sales of about $16 billion. As their incomes increase they could be buyers of the same brands they are accustomed to and move upscale in the years ahead. Another article talked abot Walmart's success in Mexico's urban areas. It appears that there are two trends one of the high frequency stores in the rural areas and the smaller villages and towns, and the other of large stores in the growing urban areas with buyers from the newly affluent urban classes. What is interesting is the close attention that is required to sell to high frequency stores and the sense of respect that needs to be shown for the economy, price and budget, buying habits to tailor products for their special needs. As for example: the one time use Head and Shoulders shampoo that costs 2 pesos, the feminine hygiene pad product with aloe that can be used longer with extra absorbent cotton, the Downy Single Rinse to conserve water usage. All the time the attention to a quality product that delivers and gains sales by word of mouth....

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The stark differences in the policy positions of the two major parties in the U.S. seen emerging in the television debates. Trump vocal on immigration calling for large deportations. Sanders and Clinton vocal on the struggles of the middle class and white working class.

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Polls just days before the French presidential election show independent candidate Macron getting about 60% of the 18-24 year age group. There is discontent in this age group because of high unemployment. The unemployment rate is 24% for people below age 25, higher than 18% before the financial crisis of 2008, compared to 7% in Germany for this age group. For people 25 to 29 years it is 14%. This is why Marie Le Pen has appeal in economically struggling northern towns. Yet most French people are finding it difficult to take on an agenda as radical as Le Pen's that takes France out of the eurozone. In the final debate just 24 hours before the vote Le Pen entered into a discussion about leaving the eurozone but showed she had no clear idea of what this would mean for France. She described Brexit as an example and Macron shot back that Britain was never in the eurozone to begin with, and it appeared that Le Pen was just hoping that it would all work out, without a clear grasp of the facts. She had no response to Macron on how an exit could create panic in the markets and lower the value of savings of ordinary French people by about 20%. On pensions she stated that 60 was the age for retirement under her plan opening herself up to the criticism that she had no clear idea of the facts as Macron pointed out- that it would mean lower benefits or higher payments into the retirement system. This may be why even some young people who see the banking experience of Macron as a liability, may be offset by others who see this as a possible asset because of the need for some valuable experience in an independent candidate, as described by Dalton.    ...