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BP is by far the oil company most concentrated in deep water oil exploration. So it is coming up for criticism in the industry for not having prepared better for a subsea oil leak at this depth. Talking with journalists BP's President Tony Hayward acknowledged this failure to "prepare for an emergency of this kind. " BP appears to observers to be trying to create the technology to deal with the leak on the go, and Hayward accepted this criticism by saying BP should have done things differently and had the capability to act instantly. Hayward went through two days of hearings in Congress, and the exchange of blame between Transocean Ltd, the Swiss based company that owned and operated Deepwater Horizon, and Halliburton which provided services for the rig, and BP, only worsened its image. Testimony showed that company managers at BP decided to go ahead with finishing work on Deepwater Horizon well even though tests showed highly combustible gas had seeped into it. The failure of a massive effort at its Houston offices to have much to show for results, only demonstrates that poor quality systems and maintenance cannot be corrected easily no matter what the scale of the effort. The publicity surrounding BP's handing out contracts to potential claimants to seal off future claims has not helped....

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Hong and Inman describe the deep experience in capital markets that Hong Kong has and Shanghai lacks, which China needs for further development. Even before the handover capital markets in Hong Kong have helped China, and many of China's largest companies have listings in Hong Kong. Hong is also the laboratory for China to make financial innovations for the last three decades, because of capital account controls on the mainland. A bad bank Cinda Asset management Company only recently raised $2.5 billion for buying non-performing loans from Chinese banks. Hong Kong's separate status within China, its Briain based legal system which has credibility in the international community, the rule of law, independent judiciary and independent police are critical to how it developed into an international financial hub for Asia. Any crackdown on protestors would disturb this arrangement. As China has already promised universal suffrage in 2017- which implies free elections not limited by restricted nominations as is now proposed in a change in 2014- and the Basic Law passed before the handover by Britain in 1997 also ensuring this, any retraction is only going back on past promises. A crackdown would create fears about Hong Kong's future autonomy for international financial institutions, and the bad publicity for China would affect Hong Kong and China adversely. ...

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On October 30, Sheila Bair heading the FDIC, the main advocate for reducing foreclosures by reducing the mortgage payments is in discussions with Treasury officials for a plan whose details are still being worked out. A key part of it is for the government to assume half of the losses on home loans that are incurred if mortgage companies agree to lower monthly payments for at least 5 years. The cost to the government is about $50 billion that would come from the $700 billion bailout fund. Right now loan companies are reluctant to reduce monthly payments because homeowners might defaul again or the owners of mortgage securities might file law suits. The funds would go to shoulder half of any future losses on default. For example if under a loan modification program 40% redefault and losses on loans are 55%, and $500 billion in loans are modified under the program, the total losses government would bear are $55 billion. This scenario is possible in a deep and prolonged housing and economic slump. This would be a gradual program if mortgage companies or companies with home loans or servicers of loans have to decide if they want to take advantage of this program, and time is critical as the foreclosures are accelerating and thisputs downward pressure on prices....

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How will deflation in the USA affect jobs in China? Not just Roubini talks about a deep recession. Kenneth Rogoff, an economist who has argued with Stiglitz's view of things during other banking and financial crises in Asia in the nineties and has been an optimist about things compared to Roubini's serious concerns, is now talking about a lost decade. Early on a lot was said of and made of the housing crisis in Sweden, where with strong government intervention and decisive action to capitalize and take stakes in banks, things were back to normal in a few years. One thing that Sweden did not face was a global slowdown and global systemic effects of credit crises worldwide so it now looks like a different situation. Here you have a series of things happening at the same time, housing price collapse, foreclosures, higher unemployment, no savings and high debt for consumers and banks foreshadowing possible collapse in consumer spending, and declines in capital spending, tight or no credit for small and larger business, global slowdown including China and India slowing exports significantly for the developed countries of USA, Europe and Japan. Interest rates near zero in the USA and Japan and trillion dollars already committed in the USA for bailouts and assistance, even before the ful force of the economic downturn has hit and this is the beginning of the downturn. ...

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Raul Baduel, a Venezuelan military officer who rose to lead the Fourth Armored Division, the Army, and then became Defense Minister after he rescued Chavez during the chaotic days following the 2002 coup in Venezuela. He thought it was aainst the constitution then and now he felt that the efforts to amend the constitution with the recent referendum were also against the constitution. He come from humble beginnings like Chavez, and was determined like Chavez to follow the lead of Simon Bolivar in leading the oppressed classes in Venezuela get free from the ruling elites. However after Chavez concentrated power in himself and decided to amend the constitution in his favor, Baduel broke ranks with Chavez and worked to defeat the efforts to amend it through referendum vote. When the referendum was lost by Chavez, and the Election Commission decided to postpone announcing the results Baduel went on television saying that for the good of the country the Election Commission had to be fair and good not yield to any pressures. The Election Commission did so and Chavez within hours conceded defeat. Baduel has an interesting personal life. He is a vegetarian, is deeply mystical, follows his own religion and also religions of the east such as Islam, Buddhism and Taoism. He works while listening to Gregorian chants. Venezuelan opinion appears to have soured against military involvement in politics. Opposition leaders are now very unhappy about the military, the politicizing of the whole country and efforts to stay in power. ...

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Chrysler's job cuts would reduce its 2006 work force of 80000 employees by 30%. These are deep cuts, about 11000 cuts were announced yesterday and these are in the Michigan, Ontario, and Ohio plants. Sales for Chrysler are down 3% so far this year, but October sales were down 12.5 % on an adjusted basis compared to 2006.

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Mr Wolfson and Ms. Gibbs are deputy mayors of New York City. Here they list all the efforts made by Mayor Bloomberg to fight poverty in New York City and help the homeless during his years in office. They cite a 28% reduction in street homelessness since 2005, a 22% drop in school suspensions, a drop in welfare rolls by 25% with 900,000 New Yorkers moved from welfare to work, and a poverty rate that is flat over the last 12 years while the poverty rate in the U.S. is up 28%. They point to the last Bloomberg budget allocation of $9.2 billion for services to the poor and homeless- 83% higher than Bloomberg's first year in office. Of this $981 million was for services to the homeless, double that in 2002. 175,000 units of affordable housing were built.

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The shift of voters from the Democratic Party to the Republican Party in the South such as Georgia and South Carolina, and the Deep South such as Mississippi and Alabama, started in the sixties with the civil rights movement. Reagan tapped into it by making his first post convention trip to Alabama, where George Wallace had already worked up white southern voters on segregation in the way Trump is doing today on immigration. Strom Thurmond was one of the high profile southerners shifting from Dixiecrat Democrat to Republican in South Carolina. After Thurmond in the fifties the Republican formula was to mix cultural issues with economic conservatism, with Nixon, then Reagan, and then Bush. Reagan added religious conservatives to the cause. Now says Emory University Prof. Joseph Crespino, this is changing as the more educated college educated white collar professionals that Goldwater once appealed to shifting in 2016 to the Democratic Party in places like Georgia and South Carolina. This is a result of the rhetoric of Trump resembling that of George Wallace and Thurmond in the Deep South. With demographic changes there is also new infusion of people from the North to the South in major urban areas. The result in 2016 is that the South no longer appears the way it once was. ...

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US president Biden's historic speech at Independence Hall in Philadelphia, where the Declaration of Independence was debated and written- "We believe that all men are created equal..." Since 1776 these lines have inspired people for 200 years and Biden says they will continue to do this for the next 200 years, as America stands as a beacon for the people of the world aspiring for a better life. Click on Original Article to see the You Tube video of this speech, and see below Lincoln's speech at Independence Hall in 1861.These are also the aspirations for millions of people in Asia, Africa and Latin America and in the US and Europe as the door opens this much wider for people all over the world because of America. Through the War of Independence and the events of the Civil war, and other events in America's life as a nation and a beacon for the world, Independence Hall has been a special place. President Lincoln also stopped by here in 1861 on his way to the White House as the Civil War began. Here is what president Lincoln said at Independence Hall on Feb . 22, 1861. "Mr Cuyler- I am filled with deep emotion at finding myself standing here in the place where were collected together the wisdom, the patriotism, the devotion to principle, from which sprang the institutions under which we live. You have kindly suggested to me that in my hands is the task of restoring peace to our distracted country. I can say in return sir, that all the political sentiments I entertain have been drawn, from the sentiments which originated and were given to the world from this hall in which we stand. I have never had a feeling politically, that did not spring from the sentiments embodied in the Declaration of Independence. (Great cheering). I have often pondered over the dangers which were incurred by the men who assembled here and adopted the Declaration of Independence- I have pondered over the toils of the officers and soldiers of the army, who achieved independence. (Applause). I have often inquired of myself, what great principle or idea that kept this confederacy so long together. It was not the mere separation of the colonies from the mother land; but something in that Declaration giving liberty, not alone to the people of this country, but hope to the world for all future time. (Great applause). It was that which gave promise that in due time the weights should be lifted from the shoulders of all men, and that all should have an equal chance. (Cheers.) This is the sentiment embodied in that Declaration of Independence." "Now, my friends can this country be saved on that basis? If it can, I will consider myself one of the happiest persons in the world if I can help to save it. If it can't be saved on that principle, it will be truly awful. But, if this country cannot be saved without giving up that principle- I was about to say I would rather be assassinated on this spot than to surrender it. (Applause). ...

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Under a new law going into effect on Oct. 1, 2017 and supported by Angela Merkel's government, all social networks will be required to delete within 24 hours "all illegal content." This is an effort to take immediate action against hate speech, libel and other illegal content. Companies could be fined upto $57 million. Germany's Justice Minister Heiko Maas said "we cannot accept that social networks ignore our laws." Mr. Maas says the voluntary effort setup earlier had not worked as the social media companies were too slow. The law now means the networks will devote more resources, with Facebook increasing the staff for this purpose doubling it almost from 4500 to 7500, showing that the problem had not been addressed the way it needed to be. The new law details 22 sections of the criminal code that social networks need to enforce. Including laws banning libel, character defamation, hate speech, insults against religions, offensive statements and privacy violations. Britain's May and France's Macron have also called the efforts of the networks insufficient. A similar law in the U.S. before the 2016 election could have saved the country from many of the problems arising from illegal content being posted, including damage to the image of the U.S., inciting deep divisions, racial tensions, hate rhetoric and defamation leading to coarsening of public dialogue and debate.  During 2016 many European leaders were exposed to hate speech including Angela Merkel. The social networks were slow to respond and did not take their civic duty as seriously as they should have considering the grave damage to the social and political fabric of the U.S. and the European Union countries. The governments also took time to act, studying the problem carefully before taking action leading to further damage, one reason the current legislation was passed quickly and decisively. Experts say other countries will act following the German example to preserve civil dialogue and strengthen democracy. ...

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Exxon to boost exploration spending by $1 billion a year especially in politically stable places an using new technology to drill in deep waters of the Celtic sea south of Cork, Ireland, off the western coast of Greenland, south of New Zealand, and north of Madagascar. Exxon also plans a wildcat well near the Tupi discovery in waters offshore Brazil and in Colombia.

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David Wessel points to some problems with the Paul Ryan budget proposal. Ryan's plan does not balance the budget till after 2030, and Congress would have to raise the debt ceiling each year till then. The changes to Medicare Ryan proposes would limit how much the government spends, but the savings from this do not come for a decade, as people expected to retire in the next 10 years will still have Medicare. Ryan's proposal shows how deep the cuts will have to be if deficit reduction is done without raising taxes. Pete Domenici and Alice Rivlin who developed a deficit reduction plan, said they were disappointed that the Ryan plan "fails to address the need for new revenue," which they consider crucial for truly tackling deficit reduction. The Obama budget failed to offer a comprehensive deficit reduction plan, leading to openness for new ideas. The health care delivery system in the U.S. needs to be efficient and costs need to come down. Ryan's proposal gives no idea where the efficiencies will come from. Would they come from competition between private insurers? How will escalating healthcare costs be controlled. Another consideration is that even with its problems Medicare is less costly to administer than private insurance. Everything depends on seniors shopping vigorously for the best premiums because risks and costs are borne by seniors, with the idea that this will somehow control escalating medical costs....

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China needs to make a serious effort to move away from export based model for growth and fix what is broken about that model which is investment in health care, education, the environment, improving rural incomes by giving farmers ownership of land, directing money to the poor and to rural areas that have suffered during the long three decade boom years. The growth rate is expected by analysts to hit 6% in the fourth quarter. And further declines can be expected as exports get hit hard as export markets in the USA and Europe see large declines in consumer spending. The stimulus package is less than what it appears because it includes things that were already planned expenditures, yet it is a step forward. Investment in railways to modernize the rail network is a good investment. And with proper reallocation to the rural sector this stimulus and approoriate new policies could unwind what the Economist calls the grotesque global distortion that has seen poor Chinese farmers help finance the debt fueled excesses of western consumers in countries like USA, UK, and Ireland. Something the Economist has not emphasized in the boom years, but now that the growth rate could drop to 4-6% there is deep concern what it would do for social stability, for rural incomes, and the disparity that has been built up between urban and rural incomes, both within China for policymakers and the media outside....

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News on several fronts in June 2009. On housing, a month to month improvement but still stuggling compared to a year ago levels. The Commerce Department said that an increase in multifamily units led to housing starts jumping 17% in May from April to a 532,000 annual rate. Compared to ayear ago level housing starts was down 45% from May 2008. There were 10 times more homes for sale in April as sold that month, with the typical ratio at 6. With layoff, tight credit and rising mortgage rates laying aheavy hand on these markets, even as developers cut prices deeply to clear unsold homes. On Manufacturing. Industrial production fell 1.1% in May from April, according to the Federal Reserve. Capacity utilization fell to 68.3%. See the graph for the steep drop for auto and auto parts manufacturing. On inflation. The producer price index showed its largest decline in 60 years, according to a Labor Department report. The PPI was down 5% from one year ago, the biggest decline since 1949. It went up from April to May by 0.2%. Part of this was rising oil prices. The core PPI which excludes food and energy dropped 0.1% in May from April. Rising oil prices, a falling US dollar and stabilization in the economy are reducing defaltion risk. At the same time the sign that inflation is not taking root are clearly evident in the slack that is building up with the drop in the capacity utilization rate to 68%, and further declines expected as the auto industry shrinks in 2009, with the huge overcapacity worldwide in that industry. ...

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The movement for Catalan independence is stronger in smaller towns in the interior of Catalonia. In Barcelona feelings are mixed, and it is possible that Barcelona would vote against independence. The city's leftist Mayor Ada Colau, says Barcelona is a pluralistic city with many opinions and is not pro-independence in the way the rest of Catalonia is. One reason is the cosmopolitan look of Barcelona with some of the residents coming from other parts of Spain. Prof. Bartomeus of the University of Barcelona says the support for independence is low in Barcelona compared to the rest of the Catalan region. 

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Mr. Trump told Irish prime minister Leo Varadkar at the White House he is disappointed with the way Brexit has evolved in the three years since he supported Brexit during the election campaign. Trump said "it is tearing the country apart. Its actually tearing a lot of countries apart."  After a series of votes in the British parliament Trump told reporters he gave May some negotiating advice. "I gave the prime minister my ideas on how to negotiate. I think she would have been successful., she did'nt listen to that." So what happened? What advice did Trump give on negotiating? There are only some hints on this. Theresa May told the BBC in an interview after Trump's visit to London in July 2018- "He told me I should sue the E.U. -not go into negotiations., Sue them."  Trump made a prediction a day after the referendum to Leave saying "the E.U. is going to break up." This was at the time of the financial crisis in the European Union with problems in Greece, Spain and Portugal. Since then the economies of these countries revived. Spain has 3% growth for three years even though it faces fresh elections. In his 2000 book "The America we Deserve" Trump pointed out his sense threat the U.S. should pull back from the E.U and save millions of dollars annually. In recent years he has suggested that the E.U was "a foe"  and "it was formed as a consortium so that it could compete with the United States." The problems in Europe happened in the period 2016-2018 with divisions emerging on the issue of immigration. This wave of immigration was a result of Arab and African conflicts and lag in Africa between development and the rapidly rising population. Chancellor Merkel was ill prepared to handle this wave of immigration and in retrospect her policy did little to address the roots of the problems of immigration from North Africa, a policy later adopted when popular support for immigration of this kind and scale declined. It affected the vote for Brexit playing into deep seated doubts about the benefits of EU membership in parts of Britain.  Mr. Trump supports no-deal Brexit which was defeated by large margins in the British parliament and lacks support across all parts of society, business and political parties in Britain. Trump own sense that Brexit has divided many countries and his dialogue with the Irish prime minister must show an awareness of the views of Ireland about the hard won peace and E.U. borders in Ireland.     ...

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The tax plan offered by Jeb Bush in September 2014 is based on simplifying the tax code to three rates, lowering the corporate tax rate to stimulate business investment and growth. It will pay for this by limiting itemized deductions to 2% of adjusted gross income, removing state and local tax deductions, by generating higher growth of estimated 0.5% per year which translates into higher tax revenues, and by increasing the deficit by $1.2 trillion. In the last tax debate economists such as Martin Feldstein and other experts proposed removing or limiting the itemized deductions. Simplifying the code and lowering corporate tax rates has been favored as a method to jumpstart growth by many experts, but was not taken up during the deep recession following the 2008-2009 financial crisis when the stimulus added to the deficit. The 3 tax rates changes the current 7 brackets to 10 percent, 25 percent and 28%, with the coporate tax rate lowered to 20%. The plan removes the alternative minimum tax, the estate tax, marraige penalty tax, leaves charitable deductions as now. To help the people at the lower end in incomes and the middle class- the standard deduction is doubled, the earned income tax credit expanded. Companies would be allowed to deduct capital investments, and there would be a gradual phase out of taxation on income American companies earn overseas. Hedge funds will not have access to a loophole called "carried interest." The plan comes as the American economy is in recovery mode, making it more likely that increased growth would generate extra tax revenues....

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Condoleeza Rice, personally worked with Ayman Nour and other opposition figures during a visit to Cairo to promote democratic process in Egypt. Michael Gerson who was also present at that meeting in June 2005, writes about it in the Washington Post Feb 2, 2011. This is a really rare instance of a Secretary of State supporting dissent in this manner. She says here that the unsettling and the unfamiliar, the turbulence of a transition to democratic processes is preferable to the false stability of autocracy. Such a false stability can be seething with malignant forces and deep animosities which surely spell trouble in the future, and as Rice puts it, find a footing when autocrats suppress democratic voices. Rice calls into serious question the whole policy of the US to seek stability at the expense of democracy in the Middle East, more than it does in any other region and in sharp contrast to its policies in Eastern Europe. See the link to Karen Elliott House, former publisher of The Wall Street Journal, and a Pulitzer prize winner for covering the Middle East ( Feb. 15, 2011, WSJ), and the link to Elliott Abrams, former deputy national security advisor to President George W. Bush (Wash. Post Jan 28, 2011), for reasons why this is totally out of touch with conditions in the Middle East, and simply sets up problems for the future. The founding principles of 1776 are a better guide to conducting US foreign affairs and can be trusted to serve the country well....

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Louis Uchitelle talks to Stanley Moses, an economist at Hunter College in New York, and others, to find out if things will work out as expected with the $700 billion or $800 billion that Obama plans to invest in infrastructure, energy, and other things to generate the 3 million jobs and investment. Will this generate private investment like the Interstate Highway program which ocurred during the Eisenhower days and set the economy on fast growth, or will it generate enthusiasm and jobs for a few years, and just as Roosevelt backed off in 1937 to let private investment pick up he found that it was still too weak to make a difference. The point that he hears from some experts like Moses is that the current times are setting up for a deep downturn, so that is not reminscent of the Eisenhower years when the economy was getting on the growth track after the war years. Its not exactly like the Roosevelt years either, because of the many changes that have ocurred in a modern economy, but in terms of the mood, the collapsing investment, consumer spending and credit and the collapsing growth in emerging markets which hits exports, this is a situation that is not easily reversed with a few years of aggressive government spending. Things have to change in the public's mood and in private industry's initiative to invest that would return the economy to a growth pattern, and this may be a long time coming with so much deterioration happening at the same time....

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Goldstein at the Energy Policy Research Foundation sees a moderation in demand for oil holding the increase to less than 1 million barrels a day. Goldstein sees improvements in crude oil supply, spare refining capacity,and product inventories which should help moderate prices. A lot depends on how the slowdown in the US affects Russia, India, China and Brazil. China's export based economy is likely to be affected and India and Russia to a lesser extent. Already the stock markets worldwide have come down in synchronized fashion in January 2007 leading to action by the Federal Reserve in the USA. There is likely to be a slowing down worldwide with Europe and India and Russia doing better than the USA. The USA may already be in recession. On the supply side the investments in Saudi Arabia and other places in OPEC and production increase in Russia should lead to supply increase of 2.5 million barrels a day according to analysts. At these supply and demand levels prices could range from $65 to $80, with a consensus of $80 under present conditions. There is a possibility of it going down to the $60 range if global economic conditions get worse and consequently demand decreases more. A price in the $60 range will still be needed to increase the incentives of exploration and production of new oil sources and to pay the higher costs of exploration and drilling for oil, especially in remote difficult locations like Russian Siberia and in deep sea offshore locations....

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In the last year of his presidency Obama faces questions about his domestic and foreign policy. Here Greg Jaffe looks back at Obama in 2004 and cites the episode with Farr Curlin, a doctor who opposed abortion and taught at the University of Chicago. Curlin wrote to Obama asking him to consider Catholic teachings when using phrases such as taking away women's rights, at the time Obama won the Senate Democratic primary from Illinois in 2004. Obama came back to the email exchange with Curlin during the fight for the Democratic nomination for president with Hillary Clinton, in speeches and in his book Audacity of Hope, appreciating Curlin's views and calls for openness and understanding of others views. Curlin appreciates Obama's thoughtfulness and sincerity, but points out today in 2015 that Obama has in his actions accelerated the trends in societal change, deepening old divisions. Much of the rest of the article describes the president's anguish at the recent Charleston and other shootings in America, showing Obama as a Christian struggling with his faith. As the article points out Americans have become increasingly disillusioned by the difference between the rhetoric and policy- leaving America deeply divided not just on social issues, but on economic issues with widening disparity in incomes and shrinking of the middle class which some see as accelerating during the two terms of Obama's presidency, and on the issues of foreign policy where 2015 brings the largest number of displaced people and refugees worldwide numbering millions. The lesson of the presidency may be that thoughtfulness is not enough, that thoughtfulness has to be carried into clarity of purpose, that ideals have to be translated into action requiring courage and not avoiding elements of risk. ...

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What can be guessed easily the less forunate or poorer sections of society are way more likely to be charged high interest rates or exorbitant interest rates by credit card companies is confiremed by a research report. Demos, a nonpartisan public policy research and advocacy group, says in areport, that low-uincome and lower-middle class income cardholders were about five times more likely than the wealthiest cardholders to pay more than 20% interest. It breaks down users into 4 categories, with the last two being late payers and people with revolving balances. If this graphed out the picture would show practically the entire profit of the credit card companies coming from these two. The reason being that the other two categories are those who have cards and don't use them so don't get billed, and those who pay before the due date so they pay no charges except what the credit card companies make from the business from whom the purchase is made. This means says Singletary of the WPost that the better off well to do sections of society are actually having their annual fees subsidized by the poorer sections of society, or the lower middle class. Singletary says to a online discussion person who though his cards without annual fees were free, they were never really free, and few people think of this. As a society its like hitting oneself in the foot, because by impacting students, minorities, the lower middle class and other sections of society- which form amajority of the people in the country- at a time when they are deeply in debt, is to make for another hurdle to economic recovery. Its going to impact consumption, foreclosures and worsen the cycle that creates more unemployment. ...

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About 6 million workers are in worker Unions in Britain in 2022 compared to 12 million in 1979. Unions have fallen into deep decline over three decades. About 4 million British workers today are in public sector unions and 2 million in private sector unions.

Worker wages have fallen behind inflation making it possible for Mick Lynch, head of the Rail Maritime and Transport Workers Union, to carry an effective message to the public. The government and employers of Britain's Rail network offered a 3% wage increase inadequate for tackling 9% inflation in Britain, leading to the rail strike.