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The influence of the spontaneous and bold George Romney, three term governor of Michigan, and presidential candidate in 1968, on his son Mitt Romney during the final weeks of the 2012 U.S. presidential campaign. George Romney as CEO of American Motors was known for going over the fence to talk directly with UAW union workers. A more cautious approach of Mitt was an effort to correct Dad's weakness of talking out loud in a media intensive world where everything gets analyzed instantly. During the final weeks with this cautious approach having its own problems in not giving voters a clear picture of who the candidate is, Mitt Romney found himself again turning to "Dad," for that spontaneous and bold approach to put himself out there for who he is. On the lectern before the start of the first presidential debate Mitt scribbled the word "Dad," a reminder of how he should handle the debate with Obama. Ann Romney shared this with a television reporter in a choking voice.

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China's efforts to promote trade with India. Visit by Premier Wen to New Delhi. Deals made include a loan from China Development Bank to help Reliance ADA group purchase power-producing equipment from Shanghai Electric Group Company. The two companies signed a $10 billion agreement in October 2010 for Reliance to buy power equipment. India sells mostly commodities such as iron ore and imports Chinese power and telecom equipment and manufactured goods at this stage. Trade estimated at $60 billion is tilted in China's favor because of cheaper manufactured goods imported from China. Premier Wen calls for expanding trade emphasizing the advantages of combining China's strengths in engineering and infrastructure with India's strengths in information technology and pharmaceuticals. His point: the 21st century is the Asian century, and both India and China can make great achievements. India sees the advantages of using China's strengths and cost competitiveness in telecom, power and other areas as it seeks to boost its development of infrastructure. Wen's visit follows visits by the UK's Cameron, US's Obama, France's Sarkozy, all pursuing trade and investment with India....

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The U.S. Government Accountability Office says only $179.5 millon of the first $1.5 billion- in a five year aid program to Pakistan worth $7.5 billion- has been spent. USAID's director for Pakistan, Andrew Sisson, says the $1 billion from prior ununsed funds was spent in Pakistan in 2010. This includes $500 million for aid during the disastrous floods last year. Projects include the Gomal Zam Dam in South Waziristan, at a cost of $20 million. That project helped build a spillway to apower plant bringing electricity to a remote region in Pakistan. That dam was built by Chinese engineers from the Sinohydro Corporation. The Obama administration wants to see large signature projects to which it can point to as signs of success. With a failing economy, corruption and a weak civilian bureaucracy- especially with a weak and ineffective civilian government- getting projects implemented has proven extremely difficult. The U.S. government has committed to spending 50% of the aid money through the Pakistan government and not through civilian contractors with large overhead expenses....

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Four former close advisors of U.S. president Obama in a public statement say they fear the current Iran negotiations fall short of reaching a 'good' agreement. The statement says " We fear that the current negotiations, unless concluded along the lines outlined in this paper and buttressed by a resolute regional strategy, may fall short of meeting the administration's own standard of a 'good' agreement." The advisors are Dennis Ross, David Petraeus, Gary Samore, Robert Einhorn and James Cartwright. It sets strict inspections for all sites, including Revolutionary Corps and military sites, as a precondition for any significant lifting of sanctions. The statement goes further in saying about Iran's development of a nuclear weapon: "The United States must go on record now that it is committed to using all means necessary, including military force, to prevent this." The statement was released from a study group of the Washington Institute for Near East Policy. Ayatollah Khamanei in a televised speech on June 23, 2015, stated military and Revolutionary Corps sites would not be included in snap inspections, and economic sanctions should be lifted immediately. ...

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Hirofumi Gumi, a top official of Japan's Financial Services Agency, during the administration of prime minister Junichiro Koizumi, says he cannnot understand why America is making the same mistakes as Japan. It took some tough actions under the leadership of prime minister Koizumi (2001-2006)- after 6 years of failed policies till 2002 following Japan's banking crisis in 1996- that helped restore the country's banking system. Under Heizo Takenaka, as head of the agency supervising banks, a large part of the bad loans in the Japanese banking system were taken off the bank's books. Some banks with insufficient capital, such as Resona Bank, were nationalized. Takenaka told the banks not to cover up or pretend the problem was not big enough, and declared he was not open to negotiating. Gumi says Takenaka's tough actions helped to restore credibility in the country's banking system. One of the key lessons from Japan is that no stimulus is likely to succeed until the banking sector is fixed. This is the lesson the Obama administration has failed to grasp....

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DJT plans for 25% tariff on all imported cars goes into effect April 2, 2025. It is intended to promote additional investment in the US auto industry, boosting jobs and wages in the US. These countries have now wrapped their behavior around national sentiment even though they very well know how the US has looked out for Europe, and especially China throughout cataclysmic events in the 20th century and the 21st century such as foreign occupation and failures in modernization. By 2015 the US which had given Europe the Marshall Plan and helped Japan rebuild from the ashes of World War II, South Korea rebuild from the devastation of the Korean war, and China rebuild after the failed industrialization experiments of the 1960's and 1970's, was now facing nations that only saw this as a One Way Street, making the US look stupid and showing a degree of irresponsible behaviour on fentanyl, drug and migrant trafficking  by Canada Mexico and China that has few parallels in history. The narrative from the US is that the US allowed Europe, Japan and South Korea, and Mexico as a manufacturing base for these countries 25 years since the 1970's when Japanese Toyota vehicles made inroads into the US market to help these countries recover, a post Marshall Plan benefit given to Europe and Asia. During 1995-2015 a series of weak administrations Clinton-Bush-Obama allowed the US manufacturing base to decline under a falsely premised globalization that served US financial interests but hurt US manufacturing towns and communities across the country.  This means BMW, VW cars imported from Germany, Subaru, Toyota, Nissan, Honda cars from Japan, Hyundai and Kia cars from South Korea, Chinese EV vehicles, and cars made in Mexico for Asian and European makers, all will face this tariff. ...

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Blake of the Washington Post says president Trump finds himself in the same situation as president Obama, who came into office wanting to scale down the effort in Afghanistan, and early in his presidency signed off on a troop surge under commander McChrystal. Trump in the election campaign expressed strong disapproval of interventionist policies. The deteriorating situation in Afghanistan makes it necessary to make an infustion of American troops- a policy being developed by Gen. Mattis. The change now is to insist vigorously on anti-corruption measures and good governance in return for aid. 

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A health care practitioner says the real problem is the high cost of medical care in the U.S. when compared to other countries. She points out that the Obama bill in 2008 did not take effective steps to bring down the cost of health care before enacting legislation to cover the uninsured, leading to higher premiums for the middle class. The link between healthcare and profits is seen as the main problem. 

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The U.S. Senate voted 51 to 49 on a Democratic party measure for further reductions in 2012 Social Security payroll taxes for workers and employers, including a surtax on incomes over $1 million. A measure supported by the Republican party to pay for the payroll tax cut by reducing the Federal payrolls was defeated, with half the Republicans voting against it. Democrats hope to use this issue to show Republicans favor the rich over the middle class, as the payroll tax cut benefits most Americans. Polls show Americans by a large majority see Republican policies favoring the rich. A New York Times/CBS poll in October showed 7 of 10 Americans feel this way. Pollster Geoff Garin says the income inequality issue is beginning to override other issues including antigovernment feeling. This is one way in which the Occupy Wall Street Movement's slogan of "the 99 percent" has resonated with U.S. public opinion. The Democratic party sees this as an opportunity to define the campaign issues for 2012, with Republicans running for reelection cautious about being seen this way....

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Rep. Paul and Rep Barney Frank call for cutting defense spending as they convene a Sustainable Defense Task Force of defense analysts. This task force recommends $1 trillion in cuts over the next 10 years. Defense Secretary Gates is preparing the Defense department for this change. Gates is looking for smart ways to cut costs while still keeping the defense capabilities intact, but cutting unnecessary overhead and unnecessary programs like the second type of engine for the F-35 fighter jet.

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The loss of some 4 million jobs is expected by experts in 2009, and Obama economic advisor Christina Romer has presented information at a meeting that shows the current downturn will be more severe than anything we experienced in the last 50 years. At that meeting on December 16, 2008, Obama met with Romer and other economic and policy advisors for 4 hours. It was decided that the target for jobs should be 3 million jobs created in 2009 and 2010. This still means a lot of the 4 million job loss will still occur in 2009, even if the infrastructure jobs estimated at $136 billion by the nation's governors get off to a fast start as they are supposedly ready to go. Money to states and local governments will reduce job losses and loss of services, and money in the form of lower payroll taxes would probably be saved to reduce debt by the public. Money to the poor to support medicaid and health care services and expanding healthcare coverage for those who lose coverage will be safety net reinforcement and support. So finding places to spend where jobs can be created quickly will be a challenge going forward and some of the $1 trillion stimulus will not go directly to job creation but as support. For the December 16 meeting Romer consulted with Martin Feldstein the senior Republican economist who said that " without action the economy will continue to decline rapidly." For a long time Martin Feldstein has been advocating strong action especially to reduce foreclosures and help stabilize housing prices. As the economy has weakened he has revised upwards what needs to be done, and his estimates are close to the lower end of the $800 billion to 1.3 trillion that is being estimated for 2 years. Lawrence Lindsay and other economists are supporting upto $1 trillion stimulus. ...

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How did it come to this the 125% US tariff on China? China thinks it is it's success. American companies have deindustrialized the US taking out it's manufacturing by shipping it overseas destroying the American middle class and working class.  An insult to the American worker whose pride and dignity and efforts rebuilt the world after the Second World War helping Europe and Japan, China, rebuild. Pouille and Thibault of Le Monde of France look at how China advanced in the years 2004 to 2024 and surged from 9% of industrial production in the world to 29% more than US, Japan, Germany and India combined.   This is also the period of three wars Iraq and Afghanistan and Syria and two presidents Bush and Obama 16 years in which the US took its eyes of the ball and let this situation take hold, which would inevitably lead to a response from the US which started with US president DJT in 2016 and is now in its 10th year. Having failed to limit the China 2025 Plan so that there is no overconcentration of manufacturing in the world disproportionately affecting the rest of the world. The consequences for the rest of the world are clear to see with the 1.7 billion people in India and Indonesia who were late in industrialization by 10-15 years compared to China, the deindustrialization of Europe and the US as this enters its final stages leading to the fissures in the societies of Europe and the US, the destruction of the middle class. ...

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Sharp swings in attitudes have left America divided in terms of education. A comparable situation exists also in the UK as areas with more education access have separated from areas with less access to higher education. As the WSJ analysis points out at one time social cohesion prevailed in the postwar years till 1970 with educational attainment playing a small part leaving social cohesion intact. Even in the period 1970-1990 when there was a shift for college educated women to prefer Democratic Party and white men without a college degree to prefer Republicans this was not a significant gap. The Democratic Party appealed to less educated union voters in manufacturing industries as well as it did with college educated men and women. This gradually fractured during the Clinton and Obama administrations as the Democratic Party  moved closer to the higher educated and drawing more support from new tech industries than manufacturing. Nowhere is this more evident  than in the way college educated women have shifted to the Democratic Party and white men without a college degree have moved to the Republican Party. Swings of different types are normal in elections and politics. But swings purely based on education are rare in American politics and not healthy for the democratic system of government. As the analysis from WSJ/NBC News shows college educated women favor Democratic Party by 33 percent margin. And the swing is even deeper for white men without a college educated degree who favor Republican by a 42% margin. This is the situation before the 2018 U.S. Congressional elections. The combined group of college educated women and white men without a college degree make up 40% of the U.S. voting public. This makes each group unreachable for the other party, a situation unimaginable for many of America's leaders if they would be living today- from presidents Harry Truman and Dwight Eisenhower, John Kennedy and Lyndon Johnson. White voters make up 70% of the electorate, and a situation where they would be unreachable for Democrats would be unthinkable or unimaginable for Truman, John Kennedy. And Eisenhower would also find it unimaginable that he would have to writeoff college educated women in his campaign.  By returning the Labour Party to its roots Britain is combatting this tendency for fracturing of social cohesion. In the way the UK's Blair administration moved away from Labour party's roots in manufacturing and the trade unions, the Democratic administrations under Clinton and Obama  moved away from manufacturing industries and the trade unions.   Most of the postwar leaders of the stature of Eisenhower and Kennedy would have seen such a situation as a significant failure in political leadership. ...

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Geithner in written testimony to the Senate Finance Committee, stated that "President Obama - backed by the conclusions of a broad range of economists- believes that China is manipulating its currency." What is noteworthy is that experts are generally in agreement that something should be done about this in cooperative fashion, from Obama's economic team, Obama's own views on this, The National Association of Maufacturers, Labor and so on. The trade deficit with China has continued at high levels even with the current economic slowdown, so this issue remains as one that the Bush administration never really addressed. Simon Johnson, a MIT Professor, and former IMF Chief economist says that even the IMF has not addressed it, and that the Obama administration needs to call China to account. He says this could lead to a spat with China, and if the US does not back down to a row. The concern has been that China would not buy up Treasury debt the way it has in the past, at the same time the question is whether there is some point where the deficit is so large and the US so dependent on foreign buyers of Treasury debt, that it needs to be addressed on a number of levels. Including addressing currency and fair trade issues, a more rational balanced consumption of everything from oil to goods from lowcost Asian countries, to reduce the toll on the overextended American consumer and on the extent of US borrowing needed. From China's perspective there may also be the same concern about export led growth, which may come to be seen as undependable anyway, because with or without some currency advantage the overextended US consumer is not buying anyway, holding off on purchases of everying from cars to flatscreen televisions. With growth at 6.8% in 4th quarter 2008, according to the Chinese Government Statistics Bureau, and expected to drop to 5% in 2009, the export growth model is no longer the panacea for China's unemployed as it once was at 12-13% growth rates in 2006-2007. In fact it may now look to be a better wiser policy if China had increased the value of its currency even more than its slow gradual approach to slow the growth rate from 12-13% to a more sustainable 9-10%, and lower American imports and lower the American trade deficit. Part of the problem in China was the difficulty of applying any sort of brakes once the local governments were set free to expand as much as they could, and prevented any controls from being effective. Steel production continued to grow even after there was evidence of large overcapacity, and government direction failed. Buy some time to shift to domestic consumption based recovery, is what the Chinese policy may be now. Indications of this are evident with its grappling at the issues it has not tackled like giving ownership of land to farmers in rural areas, and to building a healthcare system for the country, both of which are part of a host of issues to shift to domestic consumption based recovery. So unlike the way the media and some experts portray it its not a tough line that the US is taking against Chinese unwillingness. China may want to cooperate.That may be true if China was missing out on 10-13% growth rates, but these were unsustainable anyway and bad policy. At growth rates below 5% as projected by analysts China may want to jettison the export model of growth and build an alternative one. In that case as China shifts to domestic consumption, currency adjustments may be seen quite differently than they were in the past....

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This is an interview with Columbia University economic historian Adam Tooze about the international trade and economic issues brought about by globalization. The rapid emergence of China in manufacturing and overcapacity in steel has led to action on steel tariffs by president Trump. Tooze is typical of opinion that sees action by Trump not as limited action to level the playing field  as proposed by Trade Representative for the U.S., Robert Lighthizer, but as reckless move on trade.  Lyrarc.com shows articles from the WSJ and NYT showing how opinion got to this point in the U.S., on Robert Lighthizer's views that the U.S. was not facing a level playing field, and  on how trade has hurt communities across the U.S. a long distance away from Silicon Valley. President Trump's views reflect a different perspective that says the U.S. has to balance the favorable situation obtained by China and the European Union through moves of its own to protect U.S. interests. Political commentary that the U.S. was starting a trade war is not supported by the facts showing China's response as muted and a willingness by China to negotiate a balanced trading relationship as its trade surplus with the U.S. continues to grow. The trade surplus is so large that the Trump moves do not tell the real story. They are likely to be overshadowed by the increasing value of the U.S. dollar leading to a continued favorable situation for Chinese exports and a larger trade surplus in 2018, regardless of Mr. Trump's action.  Trump's moves are more significant in other areas- limiting China's access to advanced technologies, with the European Union also taking the same action. This is now the new field of competition for the major world economies. ...