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Krauthammer says it has become a cliche for people to say "politics is broken" in the U.S. John Beers, head of the Standard & Poors sovereign ratings committtee, also cited a broken political system in his rationale for the U.S. credit downgrade to AA+. This happened even as S&P repeatedly emphasized the triple A rating for France during this weeks (early August 2011) tumult in the markets over French credit risks. But in reality when you look closely and have a sense about the serious changes being discussed, says Krauthammer, something exceptional has happened, and the system is working. For the U.S. Congress and the government to come to grips with an ever expanding debt -with 39 cents of every dollar spent being borrowed as Alan Simpson of the Simpson-Bowles Commission never tires of pointing out- when both branches of government have ignored or shunted off the question with a "deficits are ok" attitude for decades- is a significant achievement. When one looks closely contrary to what S&P's and other opinion says there is actually a political process that is working in the U.S. compared to the process in Europe. In difficult situations when strong opinions are bare knuckling it with each other this process can be boisterous, but it only suggests an effort to wrap ones hands around the problems in a serious way. This is actually one of the strengths of the U.S. system with its checks and balances and its spirited dialogue. In business management Intel's Andy Grove called it "constructive confrontation," and he described this as positive and essential for business institutions to survive and grow....

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Early opinion polls show Macron the more convincing candidate in the first television debate held in March with 29 percent in an Elabe poll, with Le Pen at 19 percent. An OpinionWay poll shows Macron more convincing at 24 percent and Le Pen at 19 percent. Polls show Le Pen winning 27 percent of the vote in the first round with candidate Fillon on the right and Melenchon, Hamon on the left splitting the vote. In the second round with two candidates the vote shift of other right and left candidates determines the outcome. The second round then hinges on whether French middle and working class voters see risks to their economic future in leaving the EU, and whether appeals to nationalism and anti-immigrant rhetoric works enough to draw support from a centrist candidate.

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Pope Francis takes an open attitude to listen before making up his mind in his meeting with Trump at the Vatican in May 2016. Landler and Horowitz describe the visit by Trump and his family including Ivanka, Melanie and Jared Kushner, accompanied by Tillerson and McMaster. The pope handed out rosaries and said before the meeting: "In our talk, things will come out, I will say what I think, he will say what he thinks, but I never want to make a judgement without hearing the person." 

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How Gazprom and Shell are changing their partnership to develop Sakhalin II: 1. The vanguard in Russian oil projects is Sakhalin II. In 2005 Shell announced the price tag would double to $20 billion. With forbidding terrain and climate and spread over a vast region in Russia's Far East, this is a really big challenge. Who owns what part of this project- Shell has 55% of the partnership in Sakhalin Energy Investment Company, a stake it picked up from Marathon which exited in 2000. Mitsui and Mitsubishi are other partners. Note the arrangement in the original contract which was signed in 1994. Under the 1994 production sharing contract with Shell Russia does not make much money till Sakhalin Energy recovers its costs. Upto that time Sakhalin Energy would pay 6% royalty on revenues. Following this Sakhalin Energy would get 90% of the profits until the project earned a 17.5% return. Taxes are 32%. Because of this arrangement the cost overruns at Sakhalin present a serious problem for the Russian government, as the returns for Russia depend on Sakhalin Energy first recovering the costs. In 2005 Shell agreed to swap 25% of its controlling stake in Sakhalin Energy with Gazprom for 50% of a field in western Siberia. 2. Shell is adapting its strategy in the changing oil picture. Comments by Malcolm Brinded, Shell's executive director for Exploration and Production indicate strategy in the changing global oil picture. Shell sees the importance of engaging with a Russian partner for the long run to make long-term gains with a first-mover advantage. For Shell the real returns would come from other players using Shell's expensive LNG plants and terminals. ...

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The Journal editorial outlines steps the Obama administration must take for Libya. It calls for decisive military action before Ghadafi suppresses the democratic protests in Libya and points to the dangers of not acting now.

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Atul Gawande in the New Yorker shows how doctors in McAllen, Texas prescribe half the tests that doctors in other comunities in Texas do. Frank cites the effectiveness of the salaried model used by the Mayo Clinic. This battle has been postponed for another day the current halth care reform bill. But crucially the failure to tackle this program and have the country shoulder another deficit burden for healthcare leaves the country with a serious liability of overspending, with guns and butter if the Afghnistan war adds up another big bill to the Iraq war bill.

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Obama makes an effort to reach out to Turkey and the Muslim world. He said the U.S. would seek broader engagement based on mutual respect and mutual interest. And added "the US has bee enriched by Muslim-Americans. Many other Americans have Muslims in their family, or have lived in a Muslim-majority country. I know, because I am one of them." Obama spent part of his childhood in Indonesia, and had a step-parent from Indonesia.

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Obama's town hall meeting with Turkish students. In answering aquestion on world peace he said something significant. "It will require young people never to stereotype, assume the worse about other people,. Learning to stand in someone else's shoes to see through their eyes, that's how peace begins, and its upto you to make that happen."

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In 2015 the new government of Antonio Costa took a U turn from austerity policies followed in return for a bailout from the European Union. This has helped Portugal achieve the highest growth in a decade coming back from a severe slump. Unemployment is cut in half with growth in the tourist industry, and investment in agriculture, construction, aerospace.  Traditional industries such as paper mills and textiles have invested in new technology resulting in a boom in exports. German companies Bosch, Mercedes Benz, and others have also invested in the country. Portugal has a good relationship with Germany and the European Union which has also helped attract foreign investment. Prime minister Antonio Costa says "too much austerity deepens a recession and leads to a vicious circle." Antonio Costa came to power in 2015 on promises to reverse cuts in income made by the previous government to reduce the deficit in exchange for a 78 billion euro international bailout. The government backed by left parties left out of government since 1974 with the collapse of the dictatorship, was able to increase public sector salaries, the minimum wage and pensions, over objections of the IMF and the German government. Incentives were given to small business in the form of tax incentives, development subsidies and funding. Budget balancing was achieved by cutting expenditure on infrastructure and other spending, cutting the budget deficit from 4.4% when Costa took office to 1%. A surplus is planned for 2020, ending a quarter century of budget deficits. ...

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Leaders of North Korea and South Korea, Kim Jong-Un and Moon Jae-in meet on April 27, 2018, at the military demarcation line between North and South Korea.  After handshakes and Mr. Moon stepping onto North Korean soil for a few minutes, Kim Jong-Un visits Seoul for peace talks.  This is a historic moment for the two countries as this is the first time since the Korean War (1950-53) that a North Korean leader has visited the South. No peace treaty was signed after the Korean War. During the period of six decades that followed the Korean War, particularly the period after 1980, the South Korean economy recovered from the war and expanded following the Japanese export model with large conglomerates such as Samsung. The North Korean economy has struggled in the period and North Korea is one of the poorest countries isolated for most of this period like Burma from the rest of the world. The development of nuclear weapons was pursued to prevent any external threats to the government, and decades of sanctions followed with aborted efforts to denuclearize the Korean peninsula. Recent ballistic nuclear tests and the installation of a new anti missile system in South Korea led to tighter sanctions with the cooperation of China. This heightened tensions, followed by the tighter sanctions. Kim Jong Un and the government are looking for ways to win approval in the international community, and find a way out of the tight sanctions. South Korea, Japan and the U.S. government are not sure whether this will lead to any results in denuclearization. The summit with Moon will be followed by a summit between president Trump and Kim Jong Un of North Korea. If a way can be found for the North Korean government and party leaders to transition to acceptance in the international community followed by integration of the North and South's economies over an extended period, there is a possibility that denuclearization could work, because it is to maintain the current government in North Korea that nuclear development was pursued in the North. Ideological conflict is now less of a factor in the conflict between North and South Korea as it was in the early days of the Korean War with the Cold War and Communism's advances in Eastern Europe and Asia the big issue at the time. Today China itself is more of a state run economy under the Communist Party following capitalism with Chinese characteristics than the old Communist model, and ideological conflict is not an issue between the U.S. and Communist run countries. This leaves open the possibility of a solution particularly as at some point just as in the case of Vietnam and the U.S., North Korea could see its future more allied with that of South Korea than with China. That leaves an opening for a timetable of transitional actions plus effective implementation stages, with incentives for the U.S. and Japan to negotiate a settlement. ...

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The politics of BP's Russian venture TNK-BP Ltd. Are the 3 Russian partners , some remaining Russian oligarchs you could call them, trying to find a way to get the maximum for a future sale either to Gazprom or BP, as BP is separately working on a broad partnership with Gazprom.