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Feldstein wants to see a stronger dollar, that is less inflation eroding the value or purchasing power of the dollar at home. Abroad he wants to see a weaker dollar in relation to Europe, Japan and Canada where about half of US imports originate. And a weaker dollar in relation to lower wage Asian countries to improve America's trade balance. Better to do this now than to wait a few years when the adjustments needed would be greater. America needs to export more and import less to improve the trade balance. A competitive dollar in relation to trading partners in Europe and Asia would provide the improvement in the trade balance that the U.S. needs for keeping economic growth. With the risks to the economy from declining housing prices improving the trade balance becomes important. During the 1985-1988 period the dollar declined in value significantly, falling 37%, but the inflation rate averaged 3.1%,says Feldstein. This is what he means by having astrong dollar at home, which is to say not eroding its purchasing value, while at the same time increasing exports and reducing imports. During this period merchandise exports increased by 40% while imports increased at half that pace. A repeat of that experience is possible and necessary to maintain growth, according to Feldstein. See the link to McKinnon, at Stanford, The Yuan and the Greenback, WSJ, August 29, 2006, which cautions against anything but a very gradual and carefully managed appreciation of the yuan, giving importance to inflation and interest rate differentials between the US and China. One point to note narrowing of interest rate differentials between the US and China is seen as backdrop for dollar weakening on exchange rate basis. McKinnon appears to consider a smaller interest rate differential as a cue for an even lower appreciation of the yuan, see his example of 2% inflation in the US and 3% interest rates. Interestingly the two approaches may complement each other. Offering a perspective of China maintaining its growth and not risking deflation or slowdown, and of the US maintaining its growth and not risking a slowdown from the housing market collapse, by strong domestic investment and exports. How to keep both economies going may be the policymakers challenge for strong global economic growth....

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Anthony Faiola describes how Berlusconi gained political power in Italy, his television media enterprises that that upended social norms and built an audience through comedy shows and showing buxom women, the power base he built with the loyalty of housewives and pensioners and the use of special favors to the political class, the affability that helped him continue through several crises including corruption charges. Comparisons could be drawn with Rupert Murdoch of Britain, for the influence of media businessmen on politics. But there are several sharp differences. Murdoch used papers like News World that purveyed gossip and scandal to win large newspaper audiences with tawdry methods. He was influential in bringing politicians on both sides of the political spectrum- Margaret Thatcher of the Conservative party and Blair of the Labor party- to power. At the same time he was concerned about the national interest, was mindful of his responsibilities as a newspaperman, saw himself as the worthy successor to a father who started the newspaper enterprise he would run and was remembered as a distinguished journalist who exposed the problems of the British military in Gallipolli, Turkey, during the First World War. Murdoch's desire to be seen as a serious journalist as well as a businessman, led to his desire to acquire and run the Wall Street Journal. Even in his leaving Berlusconi shows a complete absence of any concerns for Italy, being more obsessed with himself. He tells the Italian newspaper La Stampa that his situation is similiar to that of Benito Mussolini when he wrote about his feeling of betrayal in a letter to a lover: "At a certain point he says: 'Don't you understand I don't count for anything anymore?' I have felt in the same situation." To the world outside Italy it is hard to comprehend that even as Murdoch was being skewered inside Britian for the News World episode and apologized and appeared shaken by the experience, Berlusconi would be treated passively by the public and Italy's political and ruling class. The editor of Italian magazine Il Foglio is quoted as saying Berlusconi was "a cultural reformer," and the leader of the opposition Democratic party, is quoted as saying that even after his resignation Berlusconi will remain in politics, behind the scenes, and "invent his successors." ...

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Upward mobility in China was weak and income growth for average workers sluggish during the years before the coronavirus outbreak. In this sense China is similar to the U.S. and Europe where upward mobility gains after the second world war were lost in the last 30 years partly from the loss of manufacturing to China. It is much worse now as the effects of the coronavirus lead to drops of as much as a third in income for ordinary workers. Lower income workers, the vast majority of Chinese numbering hundreds of millions now suffer from lost work or diminished wages. Small businesses cannot afford to pay the salaries paid before and as workers dip into savings or increase borrowing the retail spending is taking a hit. As a result economists see a vicious cycle of lower spending and lower incomes for the hundreds of millions of ordinary workers in construction and smaller businesses. Some small businesses could just close down because of weak demand affecting the economy over the long term. Before the coronavirus China went over three decades from being a Communist country with relatively equal distribution of wealth but lack of growth and technological development to a capitalist country with the structure of state control of the economy from the Communist period. The result is that 1% of the people control 33% of the wealth and the bottom 25% having 1% of the wealth, according to a 2015 Peking University study. China's president Xi Jinping, head of the Communist party, tried to reverse some of these trends by attacking corruption and making changes that began the task of reversing decades of unequal distribution of wealth under state sponsored capitalist growth. Investments were made in rural medical care, infrastructure and basic services. This did not have much impact because much of the pattern of growth over three decades continues including the housing bubble.  With coronavirus the trend is set for even more unequal distribution of wealth as many workers at the bottom half of the population in incomes either lose work, or see drop in incomes as businesses that hire them struggle from shoe factories to other retail business. Reports of informal economy and street markets in Chengdu in western China and bringing this part of the economy back by the state are effort to get people work in other ways. Researchers estimate that China's bottom 60% of household in incomes lost about $200 billion in income in the first half of 2020. In May premier Li Keqiang said 600 million people in China earn only about $140 a month. Many who lost income or jobs do not have support from the government as China lacks a program of comprehensive unemployment insurance as in Europe and the U.S. to help people get over bad times. 300 million migrant workers are particularly vulnerable to loss of income and dipping into savings.   ...

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The German government has taken notice of hate speech on social media and social bots. The Justice Ministry convened a task force on hate speech on internet. Justice Minister Heiko Maas promised legal action against social media like facebook and twitter if it violated laws of libel and inciting to violence. Chancellor Merkel is bringing in a data science expert Professor Simon Hegelich of the Technical University of Berlin for consultations in Dec. 2016. Only AfD of the main parties, with its anti-immigration stance, has not come out in favor of not using social bots or paid trolls in the 2017 elections. Hegelich in talk with DW.com says it is hard to legislate on this because the whole phenomenon has not been fully understood. Article 5 of the Constitution provides for free speech. Hegelich also says the state of technology moves faster than legislation, and being international sites like facebook, twitter and others pose additional issues. He does not say laws cannot be helpful but that its not clear how best to do this. Thomas Jarzombek is a CDU member of parliament and digital media expert. He says social bots are more likely controlled by foreign countries, and fake news sites are more of a domestic problem. Making this worse is the incentive for unemployed journalists to do blogging of the crude and aggressive type to make more money. Jarzombek sees the need for the press to do more in its role for the democratic process to function properly, by functioning in the role of "enlightenment" and "awareness."  Jenna Behrends, a law student and CDU local politician for Berlin-Mitte, says it is necessary for good bots to be used to fight bad bots, in an article in Der Spiegel. Major mainstream media would then have to launch social bots themselves to fulfill their role of providing the public with correct and fair information free of excessive bias and distortion of the bad bots. One example of this is shown explicitly here of German chancellor Merkel's picture with the words " Guilty of betraying the people," with links to "Drain the swamp," and "Brexit." A more complex question is one of how to let people vent out frustration about the mainstream media itself being biased in favor of the established views and not doing enough or giving enough space to reflect alternative views, so that these can be debated without inflammatory language and deliberate distortion. A whole range of tools and modifications of behaviour may be necessary ahead of next years elections in France and Germany, now that the phenomenon is better understood following a vote in the Anglo-Saxon countries.   ...

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Jaishankar was asked at the 2021 GLOBSEC conference in Bratislava in 2021 why he thinks anyone will help India in case of a problem with China after it did not help others for Ukraine. Chancellor Scholz of Germany cites Indian Foreign Minister Jasihankar's remarks in Bratislava, Slovakia, in 2021. Jaishankar said- "Europe has to grow out of the mindset that Europe's problems are the world's problems, but the world's problems are not Europe's problems. That is if it is you it's yours, if it is me it is ours. I see reflections of that. There is a linkage today which is being made. A linkage betwen China and India and what's happening in Ukraine. Chia and India happened way before anything happened in Ukraine. The Chinese do not need a precedent somewhere else on how to engage us or not to engage us or be difficult with us or not to be difficult with us." These are Scholz's remarks at the Munich Security Conference. Scholz says Jaishankar has "a point."  "This quote from the Indian Foreign Minister is included in this year's Munich Security Report and he has a point it would't be Europe's problem alone if the law of the strong were to assert itself in international relations." To be credible European or North American in New Delhi or Jakarta, it is not enough to emphasize shared values. "We generally have to address the interests and concerns of these countries as a basic prerequisite for joint action. And that's why it was so important to me to not merely have representatives of Asia, Africa and Latin America at the negotiating table during the G-7 Summit last June. I really wanted to work with these regions to find solutions to the main challenges they face growing poverty and hunger, partly as a consequence of Rusia's war, as well as the impact of climate change or COVID-19. There is another side to this -Scholz and Germany's president Frank Walter-Steinmeier are from the social Democrats party which has sought closer cooperation with Russia, and also carry a great deal of ambivalence for the war. America is not fighting this indirect war in its neighborhood, Germany is. And some of the roots of this conflict go back to the Napoleonic invasion of Russia in the 1800's period and the German invasion in the 1940's. Macron is even more ambivalent in his position and he has remained this way from the beginning- not committed to humiliating Russia. In a way it is the position of the Social Democrats from the historical context of Germany's invasion of Russia, and Christian Democrats eagerness to create a German recovery with low cost Russian energy that created the dependence that Russia sought to use. In what it sees as the unfairness of NATO being allowed to expand right next to its borders. Because of a sense of righteousness on both sides- Russia of the Soviet period failing to see the feelings of a Budapest in 1956, East Berlin in 1953, and Prague in 1968, sees little wrong in an invasion of Kviv. And with it all the biography of Brezhnev the last leader of the Soviet Union, describes that very struggle in the Great Patriotic War the soviets fought against Nazi Germany which was fought by Ukrainians including Leonid Brezhnev with great will and purpose against all odds.  Cambridge historian has written the history of Europe that Scholz is cited to be reading in 2021- Europe The Struggle for Supremacy 1453 to the Present.  It shows Europe since 1453 engaging in balance of power of European powers, Sweden Denmark, Russia, Austria, Germany, France, Britain, Turkey, continually for 500 years. Europe simply forgot its own history. Asia including Japan, China, Indonesia and India, simply emerging from the situation of falling behind in science, technology, and the industrial revolution and building their economies with the help of the US since the Meiji Restoration in Japan in 1868. The Balance of Power Simms says was maintained for 500 years is simply based on no country allowed to act with impunity, no country allowed to do whatever it wanted because of its position of strength at that moment or period of time. In that situation all other powers regrouped to keep the balance from being upset. The war in Ukraine is also likely to end in a way that is consistent with that which Brendan Simms writes about because this has not changed now for over 500 years. Biden knows this and it has fallen on America to shoulder the burden for this in the last 150 years, Scholz is aware of this, Modi in India sees this, and Jinping in China realizes this even with its concerns about Taiwan.   ...

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Krueger and Posner, eminent economists, say the reason wages have stagnated in the U.S. with wages not having budged much over a decade 2008-2018, is not only because of globalization and automation as long term trends. They attribute this stagnation in wages to "monopsony power," or power American corporations have over workers because of their stronger bargaining position and because workers have few alternatives.  For most of this period 2008-2018 high unemployment as reflected by the people out of work and taking part time jobs or having stopped looking for work, shifted bargaining power to companies. The Economist magazine pointed out that workers have not shared in the profit and gains corporations made during this period. Here Krueger and Posner show additional factors such as non compete clauses in worker agreements that have depressed wages. Half of franchise agreements prohibit competition for labor. Outsourcing work to other companies that hire workers means these outsourcing companies have more power over workers than the original companies using the labor. Unions represent only 7 percent of private sector workers by 2017, compared to 35 percent in the 1950's, so that there are no mechanisms to counteract the greater bargaining power gained by companies vs. workers. The way workers have roots in the communities they live and the consolidation of employers into a few companies in a particular area, mean fewer options exist for workers.  Senators Warren and Booker and the anti-trust division of the U.S. Justice Department are in agreement on this issue of widespread use of noncompete agreements that is considered unlawful, says this report in the NYT, offering hope for a solution to bring a better balance between the rights of workers to fair wages and companies seeking profit for stakeholders. Issues about workers, lack of gains for workers, prevalent outsourcing, and the frustrations of labor with parties that had lost touch with their worker base- such as Labor in Britain, SPD in Germany, Socialist Party in France and the Democratic Party in the U.S. - have led to political upsets with support shifting to other parties. This has not led to significant change to improve bargaining power of workers to correct the imbalance that now exists between labor and companies, leading to calls for change. Eric Posner is a law professor at the University of Chicago law school and co-author of a new book "Radical Markets: uprooting Capitalism and Democracy for a Just Society." This book turns the popular notion on its head that free markets have produced the imbalances that hurt social cohesion and democracy, by saying it is precisely the suppression of free competition such as for labor that have created this unhealthy situation. This is true in other areas where monopoly power has developed in other parts of the U.S and European economies in 2008-2018, as also for distortions in capital allocation that hurt infrastructure and other public investment. Krueger is a professor of public affairs at Princeton University and former head of the President's Council of Economic Advisors in 2011 under Obama, showing that Democrats themselves failed to correct this imbalance leading to a shift to other parties and Mr. Trump, who also appear to lack ideas or solutions to this problem that affects social cohesion and democracy. This is contrary to the vision of American or European society of better opportunity for all shared by all Americans and Europeans for most of the twentieth century. ...

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The success of the 9 euro rail pass introduced in Germany in increasing rail use and reducing pollution and congestion on highways is described here in The Guardian. For 9 euros one could travel throughout Germany on Deutsche Bahn rail network for one month in June, July or August.  Less traffic congestion and better driving times in 23 of 26 cities in Germany, and a jump in short journeys by rail between 30 kms and 100 kms, and between 100 and 300 kms, are shown here for Germany.

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The factor that push oil to test new thresholds. How the value of the dollar against other currencies such as euro affects all this. Goldman's year end forecast of $85 per barrel with a risk of it hitting $90 because of poor supply- demand situation. The dollar declined 6% against the euro since the beginning of this year 2007, so this affects the purchasing power of the oil producing countries as oil prices are denominated in US$, and it affects the dollar cost of imported oil into the US because it takes more dollars to buy the same amount of oil. Other factors affecting demand are the credit crunch affecting smaller oil companies exploration budgets, higher prices have not yet affected demand globally, the lower level of inventories at this time compared with last year, and the upcoming hurricane season in the USA.

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This WSJ editorial says the Corker-Cardin compromise that requires the U.S. president to submit any nuclear deal with Iran to the U.S. Congress for debate, is the best option for both Democrats and Republicans who are skeptical of such a deal. It says amendments by senators Cruz and Rubio will not be effective. What the Corker-Cardin compromise developed by senators Corker and Cardin of the Foreign Relations Committee accomplishes, is letting the American people through their elected representatives get a full and complete debate on the merits and demerits of the deal. Democrats in the Senate are also concerned about their election chances after Mr. Obama leaves office, and will want to have a fair debate of the pros and cons before voting, says the Journal. This debate will bring more light to the questions that worry critics the most- how will compliance by Iran be secured, and can snapback sanctions work if China, Russia and other European nations go the other way. Congressional review puts a higher level of scrutiny for any agreement before it moves forward. A requirement that the government submit a review every 90 days on compliance to Congress also gives president Obama's successor a chance to reassess the situation....

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Jobs and Bezos as polymath leaders combining various influences. Jobs influenced by calligraphy, design, technology and Buddhism- bringing this together in a fluid intelligence to come up with new products. An adventurous spirit also characterizes Bezos and Jobs.

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Recognizing and being aware of the changes in our minds and thinking  with new waves of coronavirus actually helps us deal with it. This report says that fear or anxiety even if it is pushed to the periphery of consciousness produces a whole range of behavioural, emotional and physiological weirdness that most people have experienced themselves or noticed in others since March of 2020. Even if one gets used to the additional load one carries it still can weigh one down. We all have only this much mental energy, so that the effort required to ignore, repress, or shoulder this load of fear or anxiety reduces one's ability to be creative, connected or productive. By dealing with it constructively one can diminish the impact it has on us. This means being aware of it, acknowledging it and managing it in useful ways.  Experts cited here show that fear masquerades as other emotions including sadness, anger, irritation, or even excessive feel good behaviour. It can also be expressed in intolerant behaviours or hypersensitive. On the other side it could even be expressed in aloofness and being distant, or unfriendly. Fear can also show up in ways that reduce our ability to read social and emotional cues leading to improper or inept exchanges. Physiological changes can include muscle tension and fatigue, headaches, heart irregularities, dry mouth, hair loss, skin problems, and gastrointestinal symptoms. These symptoms are unrelated to pathology say health experts and are normal reactions to feeling threatened over a long period. Different people experience anxiety differently, and most people don't even know that this is what is making you feel this way. Instead of having unproductive exchanges with fear going back and forth one can have calmer, more useful exchanges. One should always ask say health experts- "So how are you and your family coping up in these weird times?" Mindfulness and spiritual ways of dealing with this are very useful. People slow down, calm their minds, and ask "what is going on in my head right now? Where in my body am I putting my tension?" Health experts say neurobiology supports this way of tackling it. Other useful ways are to set some predictable routine in your daily life- helps you think you are still in control of the parts of your life you can control. Thinking of others and helping others is a good way of keeping ourselves sane and healthy. Fear and anxiety may also serve some purpose- the negative emotion can be harnessed to do something positive and meaningful in our life, make changes in our lives for the better by helping others in society who are less fortunate or in difficulty. Just being larger than ourselves makes us feel a lot better day after day, till it becomes a part of us. ...

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The tech boom bust since 2000 that has hurt America and Europe and which also laid the foundations for the loss of manufacturing and technology to China, ceding American leadership and critical advantage, is shown here in the WSJ. The role of the finance sector  is explained here. That has added one more factor to the factor of endless wars in the Middle East, where American and European investment in healthcare, education and new infrastructure was somehow diverted away, and much of America's and Europe's resources wasted- or not turned to the benefit of the people of America or Europe.  One financial firm that rode the tech boom to the hilt finds itself with unacceptable losses except in a severe recession. Tiger Global Management was using tens of billions of dollars from pensions, endowments and rich clients riding on some of Silicon Valley's hottest stocks.  With the plunge in tech stock values including startups in which Tiger pushed into aggressively now facing large losses after hyper valuations, Tiger's hedge fund which managed $23 billion at the end of 2021 was down 52% in 2022. Another of its funds that managed $11 billion has lost 62%. WSJ says this wiped out two thirds of the gains Tiger has made in the tech stocks since its founding. In addition large writedowns are expected on its venture funds valued at $64 billion at the end of 2021, says WSJ.  WSJ says cheap money (money somehow diverted from infrastructure and funding manufacturing in China instead of the US now goes by the misnomer cheap money) reshaped Silicon Valley in the last decade, as pension funds, rich investors and celebrities turned to well connected money managers such as Tiger to put money in tech stocks and startups. This WSJ report says compared to Sequoia Capital and an earlier generation of venture companies Tiger Global is simply not interested in management of companies it invests in, taking a broad brush approach, using Bain Capital for research, and trying to haul in a large load of fish like trawlers at sea hoping for some companies to make big gains. Many pension funds such as Calpers California's public pension fund invest in Tiger with a $400 million investment. WSJ also reports that Tiger Global's venture funds do not reflect the realities of the tech business as venture stocks will reflect the drop over 2022 and 2023, including its ByteDance Chinese tech investment which will need larger writedowns. Tiger has also not hesitated to get into cryptocurrency which has loss of about $1.5 trillion dollars. It is of interest to note that Julian Robertson, hedge fund manager of the 2000 period (when Clinton-Bush were US presidents) who ran Tiger Management provided the impetus for Mr. Coleman, then 25 years old, for the start of Tiger Global. Julian Robertson closed his fund in 2000 during the dot com bust. Coleman hired a Blackstone analyst and started on the next cycle of tech with social media platform Facebook now Meta, followed by China's JD.com as investments in a new China boom were started. The end result is that during a period of Middle East wars under Bush and Obama, and building dependence on Russian oil and gas supplies under Schroeder and Merkel, China was the gainer as the US and EU lost much of its manufacturing and technology to China. During this period US and Europe neglected investment in infrastructure that would benefit the people of America in ease of living and quality of life. Just as money was wasted in wars much of the tech investment was wasted. The companies that added value over time were started long before and relied on sales growth and new products that revolutionized their field such as Apple with smartphones that started well before the nineteen eighties, Amazon with logistics and its own style of management, Microsoft from an even earlier era. Tech monopolies Facebook, Google, and others would not be missed much in terms of real progress for the people of America. The cost is many decades of ceding manufacturing and technology advantage to China by US and the EU led by Germany. China 2030 and the war in Ukraine with China's support have shown how fragile the foundations have been with weak political leadership and a finance sector running backwards in terms of America's and Europe's strengths in new infrastructure, better healthcare, services and education for the people of America and Europe. Leaving it to the Biden administration and a new coalition of Greens and Scholz in Germany to begin the task of rebuilding America and Europe on strong foundations, including the dignity of the workers and families, that makes who we are and what we believe in, and why the free world believes in us. ...

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Mike Pence on DJT and the Republican Party in 2025. Mike Pence puts a score on the First 100 Days of the DJT administration. The WINS- The Border- Mike Pence says border crossings are down. Crossings were 140,000 in March 2024 under Biden, a year later they were 4000 or 3% of the previous crossings. A video of gangs was shown at the DJT rally in Warren, Michigan, the Linken Riley Act and other efforts to put spotlight on victims of crime- this is doing what even legislation would take time to produce results, putting into effect a democratic mandate and the rule of law, this is not arbitrary or by force. US military capabilities- Mike Pence points to the attention to defense, yet makes no mention of the US Navy. How can the US build when it has stopped building ships to the point that it takes 6-7 years to build simple frigates in the US by European companies, when 55% of shipbuilding is done in China with ships built in 1-2 years. How is the US without restoring its industrial base going to build its Navy? This is a question Mike Pence, the Conservatives in the Republican Party have to answer. Or if they do not take on this question are they using a playbook that is obsolete, was obsolete for a decade, and is now dangerous as if this opportunity to rebuild is not taken USA may lose its leadership in the world. Foreign Investment coupled with US and US Government investment- Mike Pence and Conservatives in the Republican Party, Wall Street interests say the US is losing foreign investment through its tariffs program, and faults it for targeting Europe, Canada, India, America's allies. DJT includes these countries because it makes it easier to come to an agreement with China that offers to abide by the original rules of fair trade when it is not singled out. It is to convey beyond a doubt to China that the US intends to play fair and expects the same from China as one of China's friends throughout its struggle with British and Japanese imperialism and colonialism. In this Wall Street fails to understand what happened to China, the history of Gen. Joe Stilwell in China in fighting the Japanese in China 1920-1945 A fact check shows Mike Pence and Wall Street are not right, foreign investment as shown on the White House site is about $5 trillion in commitments, it includes a commitment by Korean, Japanese and European, America's own companies to invest in American manpower and jobs, in American communities across 51 states.   ...

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New York state governor Andrew Cuomo says the turnaound in the last 15 months for the state budget shows that things went from "a model of dysfunction to a model of function."

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People with doubts about Obama and McCain being agents of change or just bearers of the latest popular slogan for electioneering, would benefit from looking at the details gathered by the New York Times about the two candidates ties to lobbyists. Obama is second only to Senator Dodd in the amount of donations received from employees and PAC's of the 2 companies Fannie and Freddie. Mr McCain's campaign manager, Rick Davis, is a longtme lobbyist, and previously was head of Homeownership Alliance. Homeownership Alliance is a coalition of banks and housing industry interests led by Fannie and Freddie to counter another organization FM Watch, which was an alliance of financial institutions and lobbying associations that wanted to even the playing field against Freddie and Fannie by challenging the implicit government guarantee that allowed them to borrow funds at lower rates. And both candidate's vetters for vice Presidential picks have links to Fannie. Its former chairman, James Johnson, initially led Obama's search committee and Arthur B. Culvahouse Jr., McCain's vetter was a Fannie Mae lobbyist. For McCain, confidant and adviser, Charlie Black, and deputy Finance Chairman, Wayne L. Berman, lobbied for the 2 companies. For Obama, Robert Tsien, Freddie Mac VP, and directors. William Lewis , Brenda Gaines, a Chicago businesswoman, come up as names of contributors. There are so many such names right at the top of these two candidates advisors, that it makes one wonder seriously who are these people fooling when they make statements about Fannie and Freddie- like the one made recently by McCain about Fannie and Freddie enriching their executives by millions of dollars while things were going downhill, and the picturesque phrase "going to hell in a handbasket". And did he talk to Rick Davis about this. And Obama did he talk to James Johnson about this, and Brenda Gaines? One, McCain is a maverick yes, meaning he is independent, and the other can talk intellectually and excite young people about the future, but its a thin veneer, when all is said and done both promote their careers above anything else, and the difference is in degrees with one perhaps more than the other. And people have short memories. The Times reminds us that McCain was one of the "Keating Five" senators investigated by the Senate, accused of interceding with federal regulators for the operator of a failing thrift and received a rebuke. This is what Paul Gigot, who as editorial page editor of the Wall Street Journal has directed the investigative reporting on Fannie and Freddie for years, says in his recent column about all the dishonesty and failure and efforts to corrupt the whole political system across the political spectrum with lobbying and donations and tactics. In a note of pessimism he says "not that either presidential candidate is interested." Quite a comment on the political system. Which is also why Vincent Reinhart, who headed the Monetary affairs section at the Federal Reserve, when asked about the bailouts of Bear Stearns and of Fannie and Freddie, and the help Detroit auto companies are seeking, on Bloomberg News on September 8, 2008, said that "free markets is a thin veneer" when things really get rough. ...

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Germany opposes aggressive buying of the bonds of Italy and Spain by the European Central Bank. Prime Minister Zapatero of Spain calls on the ECB to take action as Spanish bond yields reach 7% on Nov. 17, 2011. Germany sees the crisis as serving a constructive purpose as forcing the fiscally unstable countries to make changes.

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Allan Meltzer, a former economic adviser to President Reagan, and an expert on monetary policy at Carnegie Mellon School of Business says that "this is scare tactics to try to do something that is in the private but not the public interest, its terrible." Vincent Reinhart a former Fed economist says Paulson has lost credibility, people don't believe him anymore. And Elmendorf of the Brookings institution says that taxpayers should get more out of this deal with ownership stakes in the companies that use government money. Others like Bruce Bartlett, a former White House economist under president Reagan say the problem is nobody knows what the hell is going on and there are some naive assumptions about how this would function. Martin Bailly, a former chairman of the Council of Economic Advisors under President Clinton says for financial institutions to take the funds Treasury has to pay a premium because otherwise they would have sold already. While Bernanke told the Banking Committe that the government would pay more than the distressed prices to get broad participation which is a goal of Treasury and the Fed, neither he nor Paulson could reassure the committee about how taxpayers would be protected. Most of the economists surveyed here by the NYT are skeptical about a Wall Streeter from Goldman Sachs credibility on this as they see him paying financial institutions a premium price. The sore point in all this for the taxpayers and the public would be that the Bush administration has done nothing to help homeowners with foreclosures that are also at the root of the problem when you look beyond the immediate clogging up of the financial system and present a threat via declining home prices. And Paulson now offers a plan that also is very hazy about protecting taxpayers with equity ownership or some other protections, and has nothing to assuage the public's outrage about ceo compensation in the midst of distress. Not just the Banking Committee but experts from all sides of the political spectrum are raising concerns stressing one or other of these points, and find the lack of details in the Paulson Bernanke plan a sign of a hastily put together plan with little research even considering the lack of time, and the lack of any details a strain on people's intelligence for a proposal of such magnitude....