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This editorial opinion in BBC News points to a Russian miscalculation on how its involvement in the U.S. elections would be seen in the U.S. Congress. The U.S. Congress voted for stronger sanctions on Russia with only 5 members in the Senate and the House of Representatives voting against sanctions- an overwhelming vote in favor of sanctions. This means future policy on Russia will be determined by the U.S. Congress, and with bipartisan support for such policies. President Trump reluctantly signed the bill, saying it took away from executive authority. Russia had hoped its efforts in favor of Trump would lead to an easing of sanctions, not grasping the role of Republicans in Congress who see interference in the democratic process in the U.S. in the same way as Democrats.

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Why the loan modification programs get media attention but are not going to stem the rising tide of foreclosures. Even with all the programs announced by the banks it would affect only 2 million of the 8 million homeowners facing foreclosure. As the loan modifications are working with reducing payments to 40% of the prior monthly payment,this may not be enough as 28% is a better figure for homeowners struggling to makepayments. As a result homeowners with loan modifications may still end up in foreclosure as unemployment rises to 8% in 2009 and 2010.

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Krugman is critical of ECB president Trichet's decision to raise interest rates in 2010, because of the way it affects Spain, Italy, and Portugal. Increase in interest rates by the ECB affect the entire eurozone and this means, he points out, that inflation in Germany would be extremely low -about 1% for the next five years- and the result being that inflation would be much lower in debtor countries like Spain. A decrease in interest rates with inflation at 3-4 % in Germany would be better for the debtor countries (Spain, Italy, Portugal, Ireland) as this would enable them to cut prices and costs relative to Germany and other creditor countries. The first step taken by the new ECB president, Mario Draghi, was a small increase in interest rates. Krugman asks if the private demand is affected negatively by the end of a debt financed boom in the debtor countries, and austerity programs reduce any growth in the public sector, then where are the new jobs supposed to come from? A policy that reduces the prices of the products of debtor countries relative to creditor countries like Germany- so that exports can generate necessary growth- is needed says Krugman. ...

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Six cities have rejected the Olympics, with Calgary in Canada being the last one. The problem with hosting the Olympics is how much it costs. Cost overruns are common. 20141 Sochi WInter Olympics estimated budget was $10 billion, in the end it cost $51 billion. 

Brazil is the latest example of the problem. With huge needs in sanitation, epidemic prevention, infrastructure and public services, the country did badly by spending money on new soccer stadiums in the northeast which were not used after the World Cup soccer championship, and in the summer Olympics. 

Learning from these lessons voters in Calgary, Canada, rejected hosting  the Winter Olympics. Voters or local councils in Innsbruck, Austria, Rome, Italy, Bern, Switzerland, Hamburg, Germany, Oslo and Stockholm have rejected the idea of hosting the Olympics. Other problems are the environmental impact with deforestation to create Olympic sites.

 

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The impact on ASEAN countries of the monetary expansion policy of the Bank of Japan, Japan's central bank, and the policies of the Abe administration. Infusion of new liquidity into Malaysia, Singapore, Indonesia, Thailand and Vietnam.

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 U.S. Trade Representative Robert Lighthizer, views China's response in trade negotiations as one of conducting extended negotiations that lead to little change. This has continued says Lighthizer for over a decade putting the U.S. at a serious disadvantage in trade. At a White House meeting in August 2017 Lighthizer convinced president Trump that China was in his words "tap, tap, tapping us along."  This confirmed president Trump's own instincts about the U.S. trading relationship with China. Lighthizer is a veteran of trade negotiations, having experience in the Reagan administration as the Deputy Trade Representative in 1983 in negotiations with Japan, when Japan was in a similar situation that China is today. At the time trade negotiations with Japan were getting nowhere. Lighthizer is said to have turned one Japanese response in negotiations into a paper plane and sent it flying right back. Lighthizer does not seek the limelight but is serious about his role having published op-eds in the NYT and WSJ since 2000 about how U.S. trading relationships were putting the U.S. and U.S. workers at an unfair advantage. Many of these op-eds are in the Lyrarc archive and a Search with the term "Lighthizer" would bring up these articles. This report in NYT shows how the role of Lighthizer was not anticipated by China when it sent Liu He to Washington in November 2017 to negotiate with the U.S. President Trump made certain Liu He and other Chinese leaders would have to talk to Lighthizer first. In a session with president Jinping laid out U.S. views that the past negotiations had accomplished little and new negotiations had to be undertaken very differently from negotiations in the past. Earlier in July trade negotiations conducted by Commerce Secretary Wilbur Ross were "shut down" by president Trump because China continued to repackage earleir offers which meant little to the U.S. As a lawyer at Skadden, Arps, Slate, Meagher LLP Lighhizer represented steel industry clients hurt by subsidized Chinese steel industry imports. Mr. Trump and Lighhizer have bonded well because their instincts have been the same- that the U.S. had not been well represented in earlier negotiations by lawyers who saw themselves as speaking for American exporters.  Lighthizer is also a seasoned trade negotiator and has waited for the right time and situation to tackle the unbalanced trading relationship with China. For 30 years Lighhizer represented American manufacturers as he practiced trade law at the Skadden law firm. His strategy has been to get the administration to unite behind a clear trade strategy. He says "I try to be friendly in trade negotiations. I am not the theatrical type. The art of persuasion is about knowing where the leverage is." At this time the leverage lies in the huge trade surplus of about $300 billion China has with the U.S. The U.S. goal is to bring this down by $100 billion through this new negotiating strategy as earlier negotiations have failed. ...

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The increase in economic sanctions in response to missile testing is seen by North Korea as "a violent violation of our sovereignty." The sanctions would cut the export revenues of North Korea by one third, further damaging a fragile economy. The North Korean communist government sees a nuclear capability as the only way to maintain its survival. The rhetoric between the U.S. and South Korea with the North Korean government takes place during military exercizes by the U.S. and South Korea. The tweets by president Trump and the missile tests of the North Korean government have escalated the situation to where everything about this is in uncharted territory in 2017. China backs the sanctions as it has increasingly lost control of the North Korean government's actions, even though it sees the North as a buffer zone in relation to the U.S. alliance with South Korea. South Korea's major city Seoul is only 50 miles from the border, making South Koreans play down any confrontation with the North.  ...

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This editorial in the WSJ describes the sharp increase in premiums under the Affordable Care Act of president Obama. The average premium increase is about 24.2% according to a Barclay's analysis, and as high as 43.9% in states such as Illinois. Bill Clinton calls it the craziest thing with small business affected, and some premiums doubling. Of the 17 million people in the individual market eight million buy without subsidies. One in five enrollees cannot qualify for subsidies. Democrats say subsidies are too small. Hillary Clinton has proposed to have a Medicare "buy-in" for people ages 55-65, and a "public option" government run plan. Republicans want to rewrite the law. But this depends on which party wins the Senate, with the election in Missouri giving Democrats an opportunity to maintain a Senate majority.

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CERA study of 811 oil fields show that depletion rates will be 4.5% worldwide. Schlumberger's estimate is higher at 8%. CERA is on the optimistic side when it sees two Irans making up for one Iran lost. CERA estimates by 2017 33 million barrels a day will be lost from depletion. still it believes production would go up by 59 million barrels a day to 112 barrels a day. How can it say 59 its anoptimistic estimate of new stuff that will come out of the Caspian, Africa, Russia and other places in Asia and upto now unknown places. The reason its hard to estimate depletion is that OPEC and Russia are not sharing the data. CERA's estimate includes also stuff that comes from biofuels and natural gas liquids as half of that 59. As that 59 is 6 times today's Saudi output the estimates are coming under criticism and not widely accepted. IEA estimates demand will go up by 2.3% to 87.8 million barrels a day. But things may change as fuel efficiency becomes a big factor in reducing consumption and as millions of Asians join the world economy from rural areas the impact of more cars may not be as severe with cars that give 60 or so miles per gallon like the Tata Nano and the competitors it creates. And in the west the USA may not be so wasteful as it has been to make up for the increases in Asia of new motorists and industrial uses of energy. Meantime the gains from exploration at today's prices may provide additional output though not by what CERA's overestimate. ...

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The rulings in Britain for "duty of care" protect a customer or worker from harm. The rule "to love your neighbor becomes in law "you must not injure your neighbor." This is the new idea that the British government is moving forward so that the internet as public space is protected for all who use it. It does not state how many fire extinguishers are to be installed in a public building. Britain's Health and Safety Act simply requires the owners to do all that is needed to protect the users and occupants from harm. Since 1945 this is the foundation for heath and safety laws in the U.S. and in the UK.  This is the principle that 2 researchers Mr. Perrin and Ms. Woods have come up to tackle the protection of the internet as public a space. Perrin is a civil servant and founder of Ofcom, the UK's version of the U.S. Federal Communications Commission regulator. Woods is a professor of internet law at Essex University. It is now part of the legislation proposed by Boris Johnson's government in The Queen's Speech outlining government priorities. A new regulator would have the power to require companies to protect users of public spaces (the internet) from online harms such as pornography, extreme content, cyber bullying. The 2017 suicide death of Molly Russell a British teenager made this a priority for the government. The French government is also proposing rules based on this principle. ...

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Joe Nocera of NYT on a bankruptcy like option in which the government loans money but sets tough terms, and has someone with the experience and strength and the governmental powers to set tough terms and insist on them being followed without vacillation by the unions or management. And the Congress passing new legislation under the President's leadership to override the state laws that prevent closure of dealerships. The union benefits and mindset and management mindset would go through the wrenching changes that the GM bureaucracy and the unions need to implement to eliminate the legacy costs, the higher benefits costs so that GM does not pay a penny more than Toyota or Honda to its workers when all costs are added up period. And plants that need to be closed would be closed without long negotiations and job retraining and new industries in energy and infrastructure and technology would create opportunities for these displaced workers by 2010 as part of the stimulus program.

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A drought in northern China is shaping up to be the longest since 1951, matching one in the winter of 1970-71. This will affect world food prices as adverse weather has also affected Russia, Australia and Argentina, which are major food producers. China has large reserves of grain and has the foreign exchage reserves to import wheat. China's wheat imports rose to 1.2 million tons in 2010, according to Global Trade Information Services. This compares with global output of 682 million metric tons of wheat in 2009, as estimated by the UN Food and Agriculture Organization. Because China accounts for one sixth of global wheat production, this will put pressure on wheat prices. The Chinese government has cushioned price rises by asking provinces and cities to raise the minimum wage, which went up by 18% a year in Guangdong province.

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The Economist points out (in this cover issue on India-Pakistan relations) several fundamental facts. The first is that the current state of relations betweeen India and Pakistan hurts Pakistan the most. It makes a much smaller country and smaller economy bear the burden of defense against a large neighbor- defense takes up much needed allocation of funds for infrastructure and development, education and healthcare. It also weakens democratic institutions and their development by an overdependence on the military for governance. Poor India-Pakistan relations have significant adverse effects on the U.S. In fighting the Taliban U.S. forces are fighting a force that Pakistan's military helped create and support from its early beginnings as a way to counter Indian influence. With an Indian-Pakistani peace settlement of issues in Kashmir and other outstanding issues the U.S. would be in a significantly better position to disengage from the region, especially when the entire Middle East is moving in a new direction in 2011. Consider the difficulties in establishing peace in Northern Ireland, and between Turkey and Greece, and the difficulties of establishing peace between India and Pakistan cannot be considered even more difficult. Pakistan and India muddle along- neither side is doing much to take the initiative. For the U.S. disengagement from South Asia can be best achieved by pushing for a settlement between the two countries. Pakistan and India have much to gain from a settlement. Considering the progress made in Ireland, such places as Yugoslavia, and in Turkish-Greek relations, there is a lot more that can be done and should be done to bring India and Pakistan together. In Ireland diplomatic efforts were made by U.S. envoy George Mitchell, and in Yugoslavia U.S. envoy Holbrooke made diplomatic efforts towards the Dayton accords. Greek-Turkish relations have advanced to the point where Erdogan and Papandreou, the Greek and Turkish prime ministers, discuss solutions to the Greek debt crisis. This includes options to reduce Greece's defense expenditures in the light of Turkey's new foreign policies. The lack of such efforts to break the deadlock between India and Pakistan by the U.S,. the U.K. and other countries involved in the NATO mission in Afghanistan, the emphasis on a military solution supported first by Gen. McChrystal, and then by by Gen. Petraeus, all show a lack of understanding of the real issues that need to be tackled- issues relating to a peace settlement between India and Pakistan....

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Elections are won on messages that can be put in one line. FDR's in 1932 he stated clearly and applies to Biden in 2024- it has Abraham Lincoln's message from his writings. FDR said in 1932 "Give me your help not to win votes alone, but to win in this crusade to restore America to its own people." America in 2024 during the pandemic resembles America in 1932 during the Depression with widening gaps between the upper and lower classes and in opportunity for better life. Philip Bump in his Analysis in the Washington Post points out that the 2024 US election remains a referendum on the former president Trump. This is because as is already evident the voters have made up their minds, on Biden's side people that have decided they will not vote for Trump, and on Trump's side people who will vote for Trump. Biden has a stable vote when the election is referendum on Trump. Crime has come down so that crime is not so much of an issue. Immigration is also coming down and the Lankford- Biden immigration legislation did not pass to close the border as it was seen not attractive for the reelection bid on basis of immigration fears from the former president. Biden has take steps to close the border using executive action in the absence of Congress stalling on advice of the former president. The other issue is abortion and the selection of J.D. Vance for VP creates more fears about abortion bans for suburban women in all 51 states. Climate Change action is another issue and if stalled for 4 years it would cost the US upward of 1 trillion dollars to make up for action not taken till 2028. Donilon has said elections are fought on issues that can be put in one line for focus and concentration. For Democrats it is democracy in the words of FDR in his 1932 address: "Give me your help not to win votes alone but to win in this crusade to restore America to its own people." It is good to reflect and know that this is what president Abraham Lincoln would also have said knowing Lincoln's views from his writings on the this aspect of freedom in the Civil War in fighting the plantation economies of the Southern states. ...

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Under the Volcker Rule setup during the global financial crisis of 2008-2009, banks total investments in private equity, hedge funds and similar higher risk funds cannot exceed 3% of high quality capital. During the financial crisis investment banks were highly leveraged leading to the collapse of Bear Stearns and Lehman Brothers, and the precarious financial condition of other banks. Goldman has pared down about 60% of such investments. Remaining are $4.8 billion in private equity investments, $1.2 billion in real estate, and about $1.1 billion in both credit and hedge funds. Regulators have given the bank till July 2017 to comply. As banks recovered from the impact of the crisis, the tearing of the social fabric that happened with high unemployment in some groups especially older white men, has remained six years after the crisis- as evident in the U.S. election campaigns this year. As a result the mood has shifted for tighter regulation and both party platforms, Republican and Democratic, now call for reinstatement of the Glass Steagall Act, which separated commercial banking from investment banking as part of the lessons learned from the Great Depression. Volcker, was chairman of the U.S. Federal Reserve during the Carter administration, known for taking a tough line against inflation. He was the principal driver of the move to restrict banks from risky activity, and faced considerable opposition from banks during the 2009-2013 period when the rule was being formulated.  ...

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British budget cuts announced in Parliament by Britain's Finance Minister, George Osborne. About 83 billion pounds in cuts by 2015 were announced. But Joseph Stiglitz, writing in The Guardian, argued that the plan was a big gamble, as declining tax revenues with lower growth, would lead to smaller deficit reductions. The gamble is that the private sector will pick up, and make up for the reduction in public outlays. If this does not happen, this risks sending the economy into a tailspin. Osborne said that 490,000 jobs will be lost over the next 4 years, some from attrition. Payments to the long term unemployed will also be cut for those who fail to seek jobs, saving $11 billion a year. A new 12 month limit will be imposed on long term jobless benefits. Increase in the retirement age will start in 2020, from 65 to 66 years. At the same time free eye tests, prescription drugs and bus passes remain. Premier Cameron promised not to make cutbacks in health care in the period before the election. This was his way of helping the Conservatives make a comeback to power....

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Total USA sales fell 35% from a year earlier in the last quarter of 2008. At Chrysler the fall was steeper, at 46%, according to Autodata Corporation. On average vehicles sold in December had been on the dealer lots 92 days before being sold, up from 59 days in 2007, according to J.D. Power & Associates. Chrysler vehicles were on the dealer lots for 142 days before being sold, the most for any automaker, up from 70 days in 2007. And AutoNation Inc, estimates that 3.2 million vehicles sit on dealer lots around the country. At the current pace of sales this would last 4 months. AutoNation's CEO Mike Jackson said that he is cutting vehicle orders by half.

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Sofia Diego from the Southern European region of Spain and Portugal, says the idea of a multi-speed European Union as put forward by some in Brussels, including Jean-Claude Juncker, is not the answer- because at some point it makes the whole exercize of a united Europe futile with some countries choosing to ignore the very ideal of European unity. In fact she says we have come too far in that direction and it is necessary to pause and reflect what this means. France's leading presidential candidate Emmanuel Macron has called for a closer union as a better solution to eurozone financial stability with a tighter union. German public opinion and other opinion in the EU does not favor more concessions following Brexit. This opinion from a Southern European country shows how young people especially have developed a new attitude and feeling of togetherness as the European generation. Young people from all parts of Europe have a changed attitude compared to previous generation, and this is a valuable experience that needs to be nurtured with closer interaction to take the EU experiment to the next stage. ...

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Moody's Investors Service estimates the cost of fuel subsidies to increase to 1.7 trillion rupees or $24.7 billion for the Indian government in the next fiscal year beginning April 1, 2013, up from 1.6 trillion rupees the prior year. This is the result of the rapid depreciation of the rupee in 2013. The rupee depreciated by 8% between Aug 25-Aug 28, and is now at 68 rupees to the dollar. A new Food Security bill that passed the lower house of parliament provides subsidies for grains to about 70% of the people, and will cost $20 billion, up from $16 billion for the prior year. Government borrowing costs are up. Th yield on 10 year bonds maturing in 2023 was at 9.44% on Aug. 21. The rupee depreciation is a result of the wide current account deficit of about 4.8% and India's dependence on foreign borrowing to finance the deficit. A pull back of foreign investors from emerging markets is happening after the U.S. Fed announced it was planning a winding down of its easy monetary policy and low interest rates. Because India imports 75% of its oil, the depreciation of the rupee will hurt government finances. The danger lies in what this does to the growth rate at a time when growth is alreeady slowing. In the current year ending March 31, the growth rate declined to 5% from 6.2% the prior year. A poll of 18 economists conducted by the WSJ found growh estimated to be 4.6% for the second quarter of 2013. India is the second most populous country in the world and faces huge needs for infrastructure and development, and needs to create millions of jobs for new graduates....

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A draft of the "Common Vision of the World Bank Group," posted online by Government Accountability Group provides details on how the World Bank sees its mission in 2013. The question relates to what the World Bank's mission should be in a world where develping countries such as China and India have made signficant progress. The fragile and conflict ridden states in Africa and in parts of Asia and Latin America will be critical parts of this mission. Yet a lot remains to be done in China and India, and the World Bank sees its role as facilitating the development of needed infrastructure in India and efforts to control pollution in China, better manage the growth of cities in both countries, and also work in the poorer parts of Europe such as Greece. World Bank president Kim sees the World Bank working with the private sector to ensure that infrastructure projects have "a transformational outcome" to help improve incomes of people struggling to join the middle class.