LyrArc Article Gist
Germany's furlough scheme is called Kurzarbeit. About 10.1 million workers are signed up for the scheme with about 5.6 million actually using it because they are working shorter hours than normal. Under the scheme about 60% of workers earnings are normally replaced with government aid with contributions from companies. For the pandemic the German government increased benefits to cover 70%-80% of lost earnings if a worker has lost over 50% of working hours. It cost about 9 billion euros and payments are made by the German Employment Agency. This scheme is being extended from the initial 12 month period to 24 months. A similar scheme in Britain that ends in October covered 80% of earnings for workers lost earnings up to 2500 pounds a month, at a cost of 35 million pounds up to August for 9.5 million employees at the peak. The British scheme is not being renewed. The U.S. has its own program of payments and unemployment insurance, yet unemployment is higher in the U.S. In Germany it was 6.3% in July, a moderate increase.  ...

LyrArc Article Gist
The incredible story of VW's advertised emissions for diesel cars sold in the U.S. turning out to be false, This comes as a huge shock to car owners. One car owner who would have bought a Prius, says he feels angry about the false claims.

LyrArc Article Gist
Democratic Party U.S. presidential candidate Bernie Sanders tells a Georgetown University audience that Muslim nations should bear the biggest share of the burden of fighting Islamic State. He cites reports Qatar was spending $200 billion to host the Soccer World Cup in 2022 but providing little to bear the cost of fighting extremism in the Muslim world. Sanders says his focus in running is not on pursuing "reckless adventures abroad, but to rebuild America's strength at home." This contrasted with remarks by Hillary Clinton in New York the same day calling for the U.S. to lead the fight to defeat the the Islamic State terror network after Paris attacks in Nov. 2015, and putting forward a position that contrasts with that of the Obama administration.

LyrArc Article Gist
The Russian ruble goes over 40 to the U.S. dollar in October 2014, with the impact of capital outflows, the weakening foreign investment climate and western sanctions.

LyrArc Article Gist
Dr. Nancy Krieger of the Harvard School of Public Health says data on health risk -including which counties have high rates of health conditions such as obesity and other diseases- should inform targeted interventions and public messaging. This is important for administrators and health authorites in each county and state as they deal with a surge in coronavirus in parts of the U.S. which have so far been only slightly affected such as rural southern and western states. More recently places such as North Dakoa which the virus missed in the early stages are now seeing a jump in cases. This report shows counties in states such as Tennessee, Georgia, Alabama, Mississippi, North Carolina, particularly susceptible because of high rates of obesity and other health conditions. In all almost half of the U.S. population has one of these health conditions- obesity, diabetes, high blood pressure, lung disease and heart disease.  The high prevalence of obesity which worsens all other health conditions is a result of the lack of healthy food and nutrition, exercize and healthy living habits, that were neglected in the closing decades of the twentieth and early twenty first century. The shift to processed foods is only one of many bad practices that happened in these years. The lack of attention to healthy eating and nutrition, and outdoor exercize has marked this period and created conditions in which the virus could damage health. ...

LyrArc Article Gist
In a two and half hour news conference prime minister Li Keqiang of China gives some insights into the new thinking of China's leadership on issues of trade with the U.S.,charges made against Huawei, and handling China's slowing economy. On Huawei or Chinese tech companies conducting spying for the Chinese government Li Keqiang stated: This is not consistent with Chinese law. This is not how China behaves, We do not do that and will not do that in the future." To tackle the slowing economy Li said the government is reducing taxes and cutting interest rates and the money banks are required to hold as reserves. By reducing expenditures the government will save 1 trillion yuan ($148 billion, collecting higher dividends from state firms, and retrieving unspent state funds allocated earlier. The purpose Li repeatedly emphasized is to free up credit to help private companies and prevent "layoff waves." On the trade issues with the U.S. Li believes it is not possible to uncouple the two countries economies, and said he expected the trade talks to lead to a positive outcome. China's national legislature he said passed a new foreign investment law as proof of its commitment to creating a fair environment for foreign companies, including complaint responding mechanisms, transparency in information disclosure and fast followup in issuing regulations that put the law in effect. ...

LyrArc Article Gist
The FDA has handled the importation of masks from China badly says this report in WSJ. During the shortage FDA let 3500 Chinese manufacturers selling products of wide variations in quality to send masks to the U.S. Millions of these N95 masks are now available imported from China but their reliability is uncertain. The FDA even has the same manufacturers on approved and revoked approval lists creating more confusion. The FDA gave then revoked approval for products that failed quality standards.  The WSJ found that some of the companies given approval early were just weeks old and had not completed quality review by FDA. The WSJ reports that more than 60% of foreign made masks nearly all Chinese made failed basic U.S. government quality tests that reviewed 22 brands according to regulatory data. About one fifths of the makers were just weeks old and others made claims that were simply not correct. The FDA acted in a crisis situation so bad actors could take advantage of the situation say experts.  What happens now. The states of California,Washington and Texas are now checking their supplies of N95 masks to see if all the makers are on authorized lists and not revoked. Many doctors and hospitals are going through much anxiety because of the safety of their N95 masks in close contact situations in eyecare, dental care and other care, is now uncertain. ...

LyrArc Article Gist
Stanley Fischer, former head of the Bank of Israel, is the likely candidate for vice chairman of the U.S. Federal Reserve in 2014. Fischer is author of a 1977 paper in which he supported an activist central bank monetary policy to tackle economic downturns. As deputy director of the IMF he helped build the "Washington Consensus," which supported flexible exchange rates, free capital flows and balanced budgets. The IMF austerity policies came under much criticism in S. Korea, other Asian countries, Russia, and Latin America during this period, especially high interest rates and sharp spending cuts during downturns. He is a former MIT professor and a dual citizen of Israel and the U.S., born in Zambia (Northern Rhodesia).

LyrArc Article Gist
A proposal by U.S president Obama to increase the minimum wage to $9.00 per hour from $7.25 to reduce poverty and inequality. This was announced in the State of the Union address of 2013.

LyrArc Article Gist
11 Pacific Rim nations form the Trans-Pacific Partnership in 2018. The Obama administration supported the trade pact alienating supporters in its union base particularly in the midwestern states. Mr. Trump opposed the TPP in his election campaign and made it a significant issue for swing voters in midwestern states after job losses in the auto industry. With the opposition of president Trump the U.S. decided to withdraw from TPP.  The 11 nations agreeing to join a revised agreement are Japan, Canada, Mexico, Australia, Brunei, Chile, Malaysia, New Zealand, Peru, Singapore and Vietnam. So far six countries have formally approved the deal, Australia, Canada, Mexico, Singapore, New Zealand and Japan, setting the stage for two rounds of tariff reductions starting December 30, 2018. Agricultural products duties will be duty free within 3 to 7 years including for Japan and Mexico. Australia, New Zealand, Canada are major agricultural exporters. Japan supported the deal as a way to counter China's influence in the region. In the U.S. the gains would be in intellectual property rights but losses for workers in the auto and manufacturing industries, a point Mr. Trump recognized in his election campaign as he campaigned in the midwestern states. Mr. Obama pursued TPP over objections of workers organizations and unions including auto workers union, with his advisors suggesting this as a way to counter China's influence in the region. By 2018 the Democratic party support base fractured on this as one of the major issues.   ...

LyrArc Article Gist
After a gap of $25 at times between Nymex and Brent crude prices in 2011 and 2012, the gap is now about $9 in Feb 2014. Analysts expect this gap to narrow further as U.S. bottlenecks ease and prices increase due to low inventories.

LyrArc Article Gist
The U.S. Senate's Commerce Committee report on Takata airbags failures says the company stopped safety audits between 2009-2011 for financial reasons. At least 8 deaths and 100 injuries have been reported from faulty airbags which rupture and spray shrapnel when they fail in vehicles as a result of propellants degrading over time. The report cites problems on the manufacturing lines revealed in emails inside the company. This has led automobile companies to fix the problem in 34 million automobiles, in the largest ever recall in the U.S. The Senate report also says the regulators at the National Highway Traffic Safety Administration (NHTSA) were slow to respond. The Transportation Department inspector general's report is critical of regulators at the NHTSA. Takata and 10 automakers are conducting separate investigations for root causes.

LyrArc Article Gist
The automobile market in the U.S. showed strong sales for Chrysler, Ford and GM in November 2011. As a result automakers expect to sell 12.7 million vehicles in 2011, 10% higher than 2010. The average age of vehicles in the U.S. is 11 years, and this is leading to more buyers coming into showrooms. Some of this demand was for prickup trucks and SUV's. Ford Explorer sales tripled from the prior year. Ford sold 26% more trucks and 9% less cars compared to the prior year November sales. Sales of Jeeps went up 50%. GM sold 31% more pickup trucks. In the past sales of trucks and SUV's slumped with rising fuel prices and a slower economy.

LyrArc Article Gist
Elizabeth Duke helped forge consensus and compromise in policy as Governor of the U.S. Federal Reserve in the five year period following the 2008 crisis. She stayed on till July 2013 to help formulate the new capital rules requiring banks to hold more capital to handle any future crisis conditions.

LyrArc Article Gist
This New York Times editorial says the U.S. Obama administration and its Housing Secretary Donovan should stop pretending that its settlement is the best way to help homeowners under water. The editorial asks the serious question- how far would the $20 billion settlement the banks would provide under the deal help, when 14.6 million homeowners owe $753 billion more on their mortgages than the value of their homes? The Obama administration is pressuring New York Attorney General, Eric Schneiderman, to accept the settlement with the largest U.S. banks for questionable foreclosure practices, including robo-signing. It asks Schneiderman to resist these pressures and not support the settlement. Schneiderman has resisted this pressure because he and other prosecutors would be restricted from pursuing their investigations into wrongdoings in housing mortgages. The proposal from the Times to the Obama administration is to make principal reductions for underwater homeowners who are currrent in their payments through Fannie Mae and Freddie Mac. The proposal to help homeowners uner water on their mortgages was first proposed by Martin Feldstein during the mortgage financial crisis in 2008-2009 with repeated op-eds in leading newspapers including the Wall Street Journal. Paul Krugman called attention to the failure of the Obama administration on this issue in recent op-eds. Peter Coy of Business Week pointed to some form of loan forgiveness as an essential part of restoring the economic health of the U.S. and Europe in the August issue of Bloomberg Business Week. Higher unemployment has made the foreclosure crisis worse, and has created a strong headwind for the U.S. economy by erasing chances of an early recovery in American housing markets. The Obama administration's Home Affordable Modification Program has been a dismal failure in helping homeowners facing foreclosure and was a huge missed opportunity to take the correct action early....

LyrArc Article Gist
Paul Ryan, speaker of the U.S. House of Representatives, wins the Republican primary in his house seat of Janesville, Wisconsin, defeating his challenger Nehlen, by 84% to 16%. The Republican nominee Donald Trump earlier had refused to endorse Ryan, and only reluctantly endorsed Ryan following the vice presidential nominee Mike Spence's endorsement of Ryan. Senator Susan Collins, senior Republican senator from Maine, joined other leading Republicans saying she would not support Trump. Paul Ryan has split with Trump on trade, immigration, Mexico, and other issues. He has insisted on decency and fairness in politics, and has won his seat in a working class town that had a closed GM plant in 2008 after Ryan voted to support rescue of the auto industry and worked hard to keep it open. Even though some of his policies have not directly helped working class families, he has won increasing support from his district as the economy recovered with unemployment down to 4.4% in Janesville, according to BLS for May 2016. Much of that support since 1998 has been based on Ryan's decency, faith and family. He made it a condition that he would go back on weekends to Wisconsin to stay in touch with people, when he accepted the position of Speaker of the House, and he listens to local concerns. Ryan said about the national discourse- "It's simple to prey on people's fears. That stuff sells, but it doesn't stick. It doesn't last. Most of all, it doesn't work." His job in today's deteriorated national discourse is as vital as ever, both for Wisconsin as representing the best in the national spirit, and for the country.   ...

LyrArc Article Gist
Malaysia filed criminal charges against Goldman Sachs Group Inc. unit and a former partner in relation to the 1MDB financial scandal. Goldman arranged a $6.5 billion in bonds for 1MDB in 2012 and 2013 of which $2.7 billing was allegedly stolen, according to this report in the Wall Street Journal. The bank was able to make $600 million in profits. Malaysia's Attorney General stated that "Malaysia considers the allegations in the charges against the accused to be grave violations of our securities laws, and to reflect their severity, prosecutors will seek criminal fines against the accused well in excess of the $2.7 billion misappropriated from the bonds proceeds and $600 million in fees received by Goldman Sachs, and custodial sentences, the maximum term of imprisonment being 10 years." The 1MDB scandal was a major issue in recent Malaysian elections resulting in a return to government of Mahathir Mohammed in an attempt to restore integrity and transparency to the country's finances and spending. The Wall Street Journal has covered 1MDB as it did other issues relating to the 2008 financial crisis to ensure Asia's developing countries have good governance and financial integrity. 1MDB, Malaysia's development fund is now the centre of investigations by the U.S. Justice Department, Malaysia, Singapore, Switzerland, Luxembourg.   ...

LyrArc Article Gist
Are bubble type incentives inflating the size of the U.S. auto market in 2012-2013 as happened in the past decade. This could hurt future sales. Japanese automakers have sharply increased incentives to make a come back after the tsunami and earhtquake restricted supplies. U.S. automakers are reluctant to go further down the incentives route that hurt them in the past decade. The result is higher inventories for Detroit automakers, another undesirable result. General Motors had 5 months of Malibu supply at dealers in Nov. 2012 at the current sales rate, Ford 4 months of Fiesta subcompact inventory and 73 days of total inventory overall, Chrysler 6 months of 2013 Dodge Dart inventory. GM has 3 months of Chevy Cruze inventory, and 138 days of Chevy Silverado pickup truck inventory. GM decided to idle one of two plants making the Cruze. In contrast Toyota has 2 months inventory for the Camry and Corolla. The largest incentives in the U.S. market are from Nissan, a 55% jump to average $4,273 in Nov. 2012 from $2,764 in Jan 2012. Honda increased incentives to average $2,428 from $1,978 in Feb. 2012, a 23% increase. Toyota up to average $2,075 in Nov 2012 from $1717 in Jan. 2012, a 21% increase, according to TrueCar.com, with zero percent interest rates not counted in these numbers. Ford offers $2895 off its 2013 Focus sedan, which has 2 months inventory. General Motors offers between $2900 and $3500 in average incentives , according to TrueCar.com....

LyrArc Article Gist
Two of three obese people live in developing countries. About 29% of the global population is obese in 2013, according to the Institute for Health Metrics and Evaluation at the University of Washington. Between 1980 and 2013, obesity increased by 47% for kids and 27% for adults in the global population. Dr Murray of IHME says no country was the exception. Diet and inactivity are the principal culprits. About 37% of world's men and 38% of women are obese. Obesity increased rapidly first in developed countries, becoming noticeable by 1980 and slowing since 2006, and now is growing fast in developing countries. Germany is a surprise No. 8 on the list. The U.S. No. 1 ranking tells a lot about the misguided priorities of living in the U.S., lack of education on healthy eating and healthy living, and not putting healthy habits at the top of things to do above making more money. An extreme case is South Africa where 42% of women are obese. The most obese countries are by rank - U.S., China, India, Russia, Brazil, Mexico, Egypt, Germany, Pakistan, Indonesia. Middle Eastern and North African countries have high obesity rates for children. The study is funded by the Bill and Melinda Gates Foundation....

LyrArc Article Gist
The McConnell phone call to Vice President Biden that led to the U.S. fiscal cliff deal of Jan 1, 2013.

LyrArc Article Gist
Andrew Ross Sorkin points out that investors are sitting on their hands and money is moving out of the stock market. About $171 billion has moved out of mutual funds over the last year, according to the Investment Company Institute. About $208 billion has gone into the bond market in the same period. There are now fewer long term investors and the market is dominated by professionals which increases the volatility. There is a lack of confidence in the economy, the same reason that businesses in the U.S. are sitting on $2 trillion in cash that could be invested, and for investors the feeling that the market is rigged to favor insiders. The Financial Literacy Group surveyed 878 students at 18 high schools in 11 states in the U.S. It found that three fourths of the students agreed with the statement: "The stock market is rigged mostly to benefit greedy Wall Street bankers."

LyrArc Article Gist
As the final Republican tax bill is debated in Congress on December 19, 2017, Senator Bob Casey cited the following points from the Joint Committee on Taxation Report on the floor of the Senate.  1. Americans building their hopes that their pay checks in February 2018 will be increasing are in for a big disappointment said Senator Ron Wyden of Oregon, a senior member of the Finance Committee. The Joint Committee on Taxation estimate is that for the 57 million families making less than 100,000 dollars a year the tax cuts in the Republican legislation will either not reduce their taxes or reduce the taxes by about $100 a year. 2. The bill does little for the big tasks facing America of rebuilding failing infrastructure. Senator Casey cited 4500 bridges needing repair or replacement in Pennsylvania alone. It also does little for health care access for middle class families and is likely to lead to 10% increase in health care premiums. Affordability of college and other hurdles of middle class and working class families remain unaddressed.   3. The $9 billion in the estate tax cuts would finance the Children's Health Insurance program which has expired.  4. The $36 billion in tax cuts for corporations comes at a time when corporate profits are at the highest they have been in 15 years, according to Vanguard founder Bogle. He also points out that wages as a percentage of GDP are the lowest in 15 years. The tax cuts in the Republican bill are not likely to correct this imbalance.  5. The share of GDP of people making more than one million dollars in 1980 was 11%, this is up now in 2017 to 20%. This has led to questions about the wisdom of these tax cuts which disproportionately benefit a very small percentage of Americans who do not need these tax cuts, and come with significant sacrifices for the middle class in terms of what is available in public services, and the cost to their children as infrastructure and access to health and education is made more distant because of a growing U.S. debt from this tax cut. The big problem then with this bill is that it further damages intergenerational mobility in the U.S., undermining the foundation of a democratic society. Damage has already happened in the past three decades as Federal Reserve chairman Janet Yellen pointed out at a conference on Economic Opportunity and Inequality on Oct. 17, 2014, saying-"The past several decades have seen the most sustained rise in inequality since the 19th century after more than 40 years of narrowing inequality following the Great Depression." This is why there is substantial agreement in the media from the Wall Street Journal's Greg Ip to Krugman in the New York Times that the bill fails to correct a harmful trend, and goes further in the wrong direction for a democratic society.       ...

LyrArc Article Gist
A proposal for deficit reduction from the "Gang of Six" in the U.S. Senate gains support from Obama, Boehner and Cantor, as other proposals languish for lack of support in both Houses of Congress. The efforts to pass a balanced budget amendment and deficit reduction in the House is now seen as a concession to newly elected conservatives in the House by Boehner even as other options are being pursued to meet an August 2, 2011 deadline. The efforts of credit rating agencies to reconsider the credit ratings of certain states and the U.S. is also putting new pressure on getting some sort of serious deficit reduction now as opposed to putting it off for discussion between now and the end of the year, as proposed by the McConnell plan.

LyrArc Article Gist
Discussion at a U.S. Fed meeting in Jan 28-29, 2014, as revealed in the minutes for that meeting. It shows Fed officials such as Bullard of the St Louis Fed asked for a debate on interest rates, but most Fed oficials at the meeting including Lockhart of the Atlanta Fed, supported current tapering policy to wind down bond purchases buy the end of 2014. Some of the discussion went to how fast the unemployment rate had declined from 7.9% to the 6.5% threshold set by the Fed, and what this meant as other signs show weakness in the U.S. economy. The drop in the unemployment rate reflected more older workers retiring and to an unusual degree discouraged workers dropping out and not looking for work. Should the Fed put more weight on inflation and financial stability some officials argued, especially as inflation was still about a percentage point below the 2% target by some estimates.

LyrArc Article Gist
U.S. president Obama does not plan to make some of the changes recommended by the presidential panel reviewing NSA surveillance and spying policies. Separation of the NSA and Cyber Command leadership was one, and the other was having phone records of Americans be held by a third party or phone companies and not the NSA.