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The unravleing of Borders bookstores chain in the US, after Borders management failed to anticipate and build on the new trend to electronic books and made a series of mistakes. Borders filed for Chapter 11 bankruptcy protection in early Feb. 2011. Its online strategies simply failed to come up with answers to the cultural trend to online shopping for books and buying e-book readers. A serious bad decision from which Borders never recovered was to transfer its internet operations to Amazon Inc. in 2001. Amazon quickly built up customer relationships with millions of customers. Other decisions followed which put Borders in an untenable position. Borders increased its debt from $159 million in 2001, to $554 million for the fiscal year ended Feb 2, 2008, using the money for overseas expansion and share buybacks, which did little to address the looming internet problem. By contrast Barnes and Noble took the opposite strategy of paying down all of its $667 million in debt. Borders has modest beginnings starting in 1971, when Tom and Louis Borders, started a small used bookstore. By the 1990's bookstores with tens of thousands of books in one location were changing the bookselling landscape, as smaller bookstores were closing. Borders was able to ride this wave. When the next wave hit in 2010 with the internet, Borders was unable to respond and went into permanent decline. A costly trip through bankruptcy court means Borders will have to close one third of its 674 Borders and Waldenbooks stores, and cut a large part of the 19,500 staff. This will mean customers shifting to Amazon, Barnes& Noble, Apple Inc. and Google Inc. Mike Shazin, CEO of Idea Logical Co, a New York consulting firm, says he expects 50% of bricks and mortar bookstores to go away in 5 years, and 90% to go away in 10 years. ...

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A chemical attack on a rebel held area in northern Syria leads to international outrage and protests.

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The Waldorf was built in 1931 by Hilton Hotels founder Conrad Hilton. After a century of use it was outdated and needed major repairs. In 2014 Hilton decided to sell it and hired Blackstone advisors who said it would get about $1 billion. China had just allowed Chinese to buy foreign assets in 2014, and a Chinese founder of a regional insurance company Anbang Group offered $1.9 billion when Hilton knowing that China was keen in acquiring foreign assets priced it at $2 billion. In 2017 only three years later China decided to pull back from allowing private investments of this kind, Anbang's Wu was arrested for business practices. 2017 was the time when Xi at the 19th  Communist CCP Party Congress put forward his ideas for "Socialism with Chinese Characteristics" and made it part of China's Constitution, and launched anti-corruption drive against corrupt business practices. The Waldorf was taken over in this drive by Chinese government. For 10 years China held onto the property and built 375 900 square feet condos in the Waldorf for $6 billion and 375 hotel rooms by the time it reopened in 2025. Was it worth it? Even if China could get $3.2 million for each of 375  900 square foot condos this would generate $1.1 billion. It would take 8 years to generate the remaining $900 million of the $2 billion paid for the Waldorf by Anbang's founder Wu if the Waldorf's 375 rooms were rented out for $1000 a night for 300 days. China would still be at a loss for $6 billion. This type of extravagant business investments characterized Japan in the 1980's and 1990's leading to the gradual stagnation in Japan's economy as other countries caught up in quality control and other production efficiency practices using new IT technologies. China looks to be following the Japanese example with infrastructure overbuilding. The US and EU will catch up in the next wave of investment in America and Europe by 2030 and other Asian economies such as India will also catch up with China. Investment productivity will play a part, new technologies will play a part, and a return of manufacturing to the US and EU, a build of India's manufacturing and logistics will play a part. ...

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China's slowdown may be much worse than is generally thought. Germany went through this thinking that it was relatively safe as it had no housing bubble and no consumer debt like the US and the UK. But the drop in demand from China and other countries has led already to a contraction in the German economy by 0.5% in the third quarter of 2008, expected to worsen to 0.8% in 2009. China's National Statistics Bureau announced a 4% decline in electricity output inOctober from a year earlier. This is a result partly of factories manufacturing for export cutting back as their orders decline. There was a 17 drop in production of pig iron and crude steel in October and a 0.7% fall in output in the output sector. From all this it appears that even without the beggar thy neigbor policies of the 1930's, even without the protectionism of that period and even with the global coordination of the G20 and the G7 countries, its hard not to see the impact in one place flowing through to other places. The loss of export markets in the USA for Chinese export factories leads to this slowdown in China which in turn now needs much fewer machinery imports from Germany leading to a contraction in Germany. See the link to German economy in WSJ November 14, 2008. These effects show up in an exaggerated manner with economic contraction because of the heavy dependence on exports in Germany to China, and heavy dependence on exports in China to the USA, and the heavy consumption of Chinese exports in the USA, all ocurring in an exaggerated unsustainable way considering the American spending binge and the zero savings rate in the USA, the pressures on the environment with runaway growth in China, and the lack of any domestic led consumption in Germany. China's infrastructure spending can provide some growth along with the stimulus spending but much of the export led growth may disappear. The stimulus spending could help prevent a contraction in the Chinese economy but may deliver only a few points of growth, way off from the runaway over 10% growth of two decades which was heavily dependent on manufacturing exports. How badly Chinese exports are affected depends on how badly the US market is affected for Chinese imports. Higher unemployment in the US if the auto industry sees a collapse in its market in 2009, would lead to lower consumption in the US as laid off workers cut their purchases at Walmarts and Targets and at other retailers, and this would drive imports from China to even lower levels, wiping off a couple of percentage points of China's GDP growth rate. ...

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Ways in which more beans can be part of the diverse foods in the US and Europe not just for climate change but also from the point of advantage of taste once new use is adopted, and of nutrition. An example is chick peas eaten as hummus which has grown rapidly. The same potential is there for beans and legumes to offer better nutrition and better more diverse food, less dependent on animal food with its impact on the climate. The nutritional value is a big part of this change, and the potential for reducing obesity, fighting disease.

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Karl Rove, who guided the George W. Bush election campaigns, says why the U.S. presidential race is not over after the Romney gaffe about the "47%" who would always support Obama because of dependency on the government for benefits. He points to the situation facing Reagan- a useful reminder of how difficult it is to know which way the presidential race will turn. As a Hollywood actor, Reagan with the new idea of supply side economics- considered "voodoo economics" by George Bush, his rival in the primaries- was seen with skepticsm before the election. Rove cites Gallup polls at the time, showing in mid-Sept. 1980 Jimmy Carter leading Ronald Reagan by 44% to 40%. By late October 1980 polls showed Carter ahead 47% to 39% for Reagan. On Election Day this turned to where Reagan won by nine points. A more revealing figure about the real feelings about the electorate in Rove's view is that in the past month in only 9 of 83 national polls and daily tracking surveys does Obama reach 50%, and the average is 47%. And the economy still shows high unemployment, enough for the Federal Reserve's Bernanke to announce a QE III program for support....

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Only 28% of the people in Portugal between 25 and 64 have completed high school . This compares with 85% in Germany, 91% in Czech Republic and 89% for the U.S. Portugal's high-school dropout rate is 37%, one of the highest in Europe. Its reading scores lag behind the OECD average, even after improvements in the last decade. The military dictatorships that ruled Portugal did not emphasize education, and education was neglected for several centuries before that. Even after efforts by the democratically elected governments in recent decades there is a huge gap between Portugal and countries like Ireland. This becomes important for Portugal to build industries and have the technical skilled workers to support these industries. Without this Portugal's financial condition can only get worse. With a technical skilled workforce such as that in Ireland, analysts estimate the growth in GDP would be 1.5% higher. Sharp cuts in education spending are going to make the situation tougher. Portugal lacks industry, yet at the same time cumulative deficits with the rest of the world are over 130 billion euros after years of cumulative deficits. This highlights the problems facing the euro currency countries with vastly different educational systems, industry structures and economic management....

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The plan to prevent foreclosures in Minnesota is supported by the state's Democrat- Farmer-Labor party which has a majority in the legislatre. The Republican Governor of Minnesota Tim Pawlenty is mentioned as running mate to McCain and he will be criticized in the election if he vetoes the bill. A 39% increase in foreclosures is expected for 2008 by Housing Link, a Minnesota nonprofit research group. with about 28,000 households affected. CEO of Toll Brothers, a luxury builder rates Minnesota a F- in assessment of regional housing markets. So what will this bill do? Under the foreclosure deferment plan loans closed from January 1, 2001 through August 1, 2007, when antipredatory lending law took effect would be eligible. Borrowers must be legal U.S. residents and have adjusted household gross incomes of less than $250,000. Second home are not covered. During the deferment period borrowers keep paying a portion of their mortgages. This is set at either the monthly payment of principal and interest when the loan was originated, or 65% of the monthly payment at the time of default, whichever is less. Rep Matsui of California introduced a similar bill in the House of Representatives May 13, 2008. Because the bill limits the benefit to those who are needy and worst affected it would appear to be a sensible approach. At this time there are so many proposals but with little Republican support and a public opinion that sees this as moral hazard or rewarding people for their mistakes with public money, there is little to help the most needy and deserving borrowers for whom a good case can be made for help on a bipartisan basis and with support of the public....

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India's Supreme Court urges the Modi government to ensure protections are in place to preserve privacy rights of Indians. It said the dangers can originate from private parties or non-state actors as well as the government. A nine judge bench led by Chief Justice J.S. Khehar stated- "we commend to the Union Government the need to examine and put in place a a robust regime for data protection." The Court called for a sensitive balance between individual rights to privacy and the legitimate aims of the state which it said would include "protecting national security, preventing and investigating crime, encouraging innovation and the spread of knowledge and preventing the dissipation of social welfare benefits." The biometric identification program Aadhar was designed under the previous Congress government as an effort to control the leakage of social welfare benefits through corruption, a significant problem that hurt the poorer sections of society in rural areas. The Modi administration has pushed forward with the program and expanded it to turn it into a national identification program. As part of the plan to ensure data security the Modi government has setup a committee of experts led by former Supreme Court judge, Justice B. N. Srikrishna to identify key issues for data protection, and to propose a draft Data Protection Bill. The Ministry of Electronics and Information Technology will work with this committee over the next 2 months, as the committee prepares its report. ...

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Italian born Canadian Sergio Marchionne, a former tax consultant turned auto executive who joined Fiat in 2004, planned the acquisition of Fiat in 2009. GM's payout to Chrysler following a decision not to acquire Fiat, and the U.S. government's need to merge Chrysler with another auto company after a bailout, gave Marchionne the opportunity to acquire Chrysler on favorable terms. Hard bargaining with the government led to acquiring Chrysler for free, using the $2 billion from GM to show the government that it would make the needed investments to bring Chrysler back from bankruptcy. This decision, the bringing in of outside talent, and the revival of the auto industry following the bailout, has led to the success of Fiat Chrysler.  Sergio Marchionne had the right instincts to persuade the government that Fiat with its small cars including the Fiat 500 was the right company to run Chrysler, and supporting president Obama's fuel efficiency goals gave him the right credentials with the Obama administration. A chain smoker of cigarettes who also gulped down espressos, her was a workaholic sometimes carrying 5 smartphones. He passed away at the age of 66 from health complications. Ironically the Dodge Dart was presented as the car that would get 40 miles per gallon. Other efforts at fuel efficient automobiles have not happened in the way it was envisioned by the Obama administration. The Dart did not become popular. Only the redesigned Fiat made it as a hit in Europe. The plan to import small Fiats to the U.S. remained only on paper. As the auto industry revived Marchionne canceled plans to make nearly all of the Chrysler cars and shifted production to more popular Jeeps and Dodge Ram, a move followed by Ford and GM. Fuel efficiency issues from the bankruptcy period are still alive today with the decision to leave small car manufacturing to Japanese and German carmakers, and the efforts of the Trump administration to turn back the Obama administration fuel efficiency targets.  ...

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Contrasting reviews of Maggie Smith in the Wash Post and the NYT. This one looks at her popularity outside Britain in the US in the kind of series about Britain Americans love- Downton Abbey about aristocratic life in Britain.

Mark Smith in the Post by contrast looks at her humor and her performances that have more meaning such as the one that got her noticed in Britain with the Academy Award for "The Prime of Miss Jean Brodie," about the Spanish Civil War and a teacher of impressionable girls, her admiration for fascism and her discovery of her moral blindness.

And also for her striking humor and wit in other performances. 

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Video presented by Gen. Dan Caine on how the Fordow site strike was done in real time. Dan Caine explains why the strikes were effective as Bombs Unit 57 were designed specifically for Fordow and the effort at Fordow is a project of the Threat Reduction Agency in the US War Department, doing this since 2009 when Fordow was being built.

Defense Secretary Hegseth points out that in the media's haste in reporting it had missed a key event at NATO meetings in The Hague, Netherlands. For the first time all EU nations had decided to shoulder their defense responsibilities for Europe. Germany and other nations will put 5% of the budget into defense of Europe.

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Leonid Kravchuk is a Soviet era official who joined with Boris Yeltsin to support dissolution of the Soviet Union. He died at the age of 88 in May 2022. He is remembered for leading Ukraine to independence in 1991 with support of nationalists in western Ukraine and pro-Russian supporters in eastern Ukraine. Another reason he is remembered is for peaceful transition of power to his prime minister Mr. Kruchma in the 1994 election. He also dismantled Ukraine's large nuclear arsenal under pressure from Russia and the US. His failings were in letting corruption grow including the bankruptcy of the Black Sea Shipping Company, says DW.com. Ukraine had no experience in the democratic process. It has close ties with Poland which in the 17th and 18th century had some form of democratic process. Lviv is a short distance from Poland. Kravchuk was from a part of Ukraine that was once part of Poland. With a population of 52 million Ukraine is the second largest country in Europe. Its transition from the Soviet Union to a independent state was painful says DW.com with millions of people finding themselves living in poverty and the period being remembered as "kravchuchka." Since that period Ukraine has grown and was setting up new foundations for entry into the European Union.  ...

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No one in Northern Ireland wants to go back to the sectarian clashes of the twentieth century says one resident of the region. Most people recall the divided barricaded border with watchtowers and helicopters with extreme anguish. All that was dismantled long ago. But Northern Ireland still looks to the outside for help. Will president Biden bring new investment in the region? Can the Sinn Fein and DUP be persuaded to work together with US participation. A new generation has moved away from the sectarian to the economic issues of the cost of living and provision of public services in education and healthcare across the region. This was affirmed by Sinn Fein winning 27 seats the largest bloc in the 2022 election where focus was on economic issues and the quality of life. Because of Mr. Biden's very personal connection to Ireland there is much hope in Ireland for a new chapter to be written again. There is also a different sentiment in Britain with Keir Starmer's experience as human rights adviser to the Northern Ireland Policing Board. Starmer attributes his decision to go into politics to this experience seeing the changes he could make in Northern Ireland from the inside. The switch to a government by Labour could come at a good time for Northern Ireland and for Scotland.  ...

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A new generation of young people born between 1995 to 2012 get the name iGen. It makes up 24% of the population in the U.S. San Diego State University Prof. Twenge describes this group of young people as open and tolerant but very casual about most things, and not literate in comparison to the Millenials and previous generations of young people. They are tolerant to LGBT and transgender, not church going,  and at the same time can be intolerant of other opinions than their own. One of four students in this group says someone who says something insensitive about race can be fired. This group also does not try to look deeper to obtain a better understanding. Virtual relationships are preferred to social relationships. They tend to spend about 6 hours on technology devices such as smartphones and social media outlets. They interact less and yet do not find time for reading, and read much less than GenX or Millenials, or baby boomers. Twenge says they are less informed about current events and their academic skills lag behind that of Millenials. Not that this is a good place they have found, as the more time they spend on the internet the worse they feel. Making them less happy than other generations of young people before them who had face to face interaction instead of endless hours on social media. The reviewer is skeptical of what is happening here, saying that the use of technology devices in this way has stunted their development in ways one could not imagine possible. Not let them develop the skills of previous generations of young people who did not have these devices and lived a simpler life with face to face interaction. ...

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The 2022 industrial trade fair in Hanover, Hanover Messe, is covered here in DW.com with 2500 exhibitors showing how they are responding to a changed world after the pandemic and the Russian invasion of Ukraine with support from China. Export oriented companies have to rethink their strategy says Thilo Brodtmann, the executive director of the German Engineering Federation, Supply chain disruptions and the pandemic have led to many German companies reexamining their reliance on Chinese suppliers. Human rights and democracy are now part of the reorienting of business in a new direction. The war in Ukraine is also having an impact. Reducing CO2 emissions is also a major part of the reexamination. Chancellor Scholz told the Hanover Fair at the opening ceremony -"We need to bring along with us emerging and developing countries, whose demographics and economic dynamics are turning them into new centers of power." Brodtmann says the solution is "to become independent and to have a completely different value chain." The head of the German Associaltion of Electrical and Electronics Industry Wolfgang Weber says "I'm quite sure that German companies are ready to invest in any of these countries in Asia, Latin America, and Africa to diversify their supply chains." However such new markets are not very well represented at the Hanover Fair, so that policymakers and German business have a lot of work to do to open up new markets across the world in Asia, Latin America and Africa. India, Indonesia and Vietnam are considered to offer good prospects for diversifying Germany's supply chain and a lot of work needs to be done. ...

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Argentina, South Africa, Mexico, India, UK, European Union elections are taking place by June 2024 and US in November 2024. Yet it is misleading to lump them together. Much discontent is there to see as in the UK with cost of living, governance, time wasted on Brexit, India with lingering effects of the pandemic on rural voters, caste based voting. In India protest vote of lower caste Dalit voters in Uttar Pradesh and Maharashtra, even with government support in forms of universal healthcare, food for poor households during pandemic extended, cooking gas, housing support, clean tap water, direct bank account deposit to accounts of poor and farmers. Yet in the states in the south and east in Orissa and Andhra Pradesh, and generally in the south the BJP vote count increased so that losses in the north were made up leaving the percentage of vote for India for Modi's BJP party at 37 percent in 2024 instead of 38% in 2019, losing the absolute majority 240 seats of 543 yet having campaigned heavily for partners who added seats 294 of 543. In the UK Keir Starmer may see some vote preference for Labor erode yet the Conservative record is in shambles even conservative experts will say, as in India where the opposition parties offer no prospects for the future and little track record for making India the second or third largest economy in the world which the BJP has set and shown to have achieved over 10 years by taking India to No. 5 in the world economies. ...

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The $787 million settlement is for defamation damages for Dominion Voting Systems and its owner State Street Capital. On the fundamental issue of free and fair elections and freely elected governments, the settlement does not ask for an explicit statement by Fox News of misconduct. To understand what happened one has to look at the origins of the FNN in the Melbourne Herald of 1920-1950 under Keith Murdoch and the political controversy pursued to increase readership in that period. NYT says it has an implicit plea of "no contest" to several pre trial findings by the presiding judge Eric Davis- "The evidence does not support that Fox News Network television carried good faith disinterested reporting." NYT explains this as the judge saying that spreading a conspiracy theory does not fall under legally protected "news gathering." The presiding judge also decided that - "Evidence developed in this civil proceeding demonstrates that it is CRYSTAL clear none of the statements related to Dominion (by Fox News) are true." As the case is not going to trial readers may ask what happened not just in this case but in Fox News and Trump over the last decade that caused risks to the framework of democracy, of elections and transfer of power setup by the founding fathers. Fox News Network has its origins in the Melbourne Herald of the 1920-1950 period when Keith Murdoch setup the business in Australia that was expanded a generation later by Rupert Murdoch. Keith Murdoch was heavily influenced in his newspaper career by Lord Northcliffe, and by Lord Beaverbrook, a Canadian from New Brunswick, who both created a form of journalism that used political controversy to increase readership between the two world wars and in the period after that to 1957. The readership of these papers ran to 3-4 million which in that period in Britain or Australia was huge. Beaverbook took controversial positions that were built on his idea that the bloc Britain should represent was Canada, Australia and Britain with the British Empire, to have little to do with Europe or even the US. For this reason he did not support Britain's entry into the Second World War, or Britain joining in the Cold War against the Soviets till the Berlin Blockade. British prime minister Macmillan held back announcing Britain joining the European Economic Community (predecessor to the EU), because of the power of the Beaverbrook newspapers who were not interested in Europe. And British prime minister Clement Attlee faced the bitter opposition of Churchill and Beaverbrook/Northcliffe papers in sending Mountbatten to negotiate a transfer of power to India in 1947. The win of Labour's Clement Attlee in the 1951 election was opposed by Beaverbrook using the most sensational language. One can see the origins of what happened in the Trump period in the newspaper origins from the 1900-1957 period of Australian and British television networks. Of Keith Murdoch, National Biography of the Australian National University says- he supported the conservative stances of his time, was a remarkable entrepreneur and organizer of industry. Yet it also says his judgement was faulty. That he had "no real social philosophy"and lacked the originality to make useful contributions to public policy. Of Rupert Murdoch it can be said that he was also a remarkable entrepreneur and organizer of industry who built the newspaper business in Australia from one Adelaide paper left to him by Keith Murdoch. Yet his judgement proved faulty and there was no real concept of public policy or "real social philosophy." There is also the fact that like Beaverbrook from New Brunswick, Murdoch from western Australia was raised in the period of the British Empire and Commonwealth, had no real experience or grasp of the idea that is America set by the founding fathers and renewed by Lincoln, then FDR. An awareness of the origins of Murdoch's FNN is useful because it helps the American public close this chapter in the way democracies functioned in the past, and write better chapters for the future before us, keeping alive the idea that is America.     ...

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Michael Porter who is an authority on competitiveness and national strategy, is a Professor at Harvard University. He last servedin a national economic strategy advisor capacity in 1983, as a member of the President's Commission on Industrial Competitiveness. His view is that the USA badly needs an economic strategy. And the political system of the USA discourages developing such a strategy. The political dialogue also discourages the discussion from focussing on the key aspects of a strategy and because of the ideological slant the discussion between Republicans and Democrats tends to cancel each other out leaving the important work undone. What is an economic strategy? Its thinking clearly what are the advantages or strengths America as a nation has and how best to preserve these advantages in the future? And its thinking clearly about the weaknesses, and how to address the weaknesses, and where money and other resources should be allocated and what actions need to be takento get results. As strategy is a long term thing, it requires patient and perseverent effort and allocation of resources. The strengths he goes on to list are, an unparalleled environment for starting new companies and the science and technology, and the regional universities and clusters of high tech workers and resources in different regions of the country,the educational institutions for higher education, and the committment to competition and free markets, efficient and deep capital markets, and the acceptance of the uncertainty and cost in the huge job churn (restructuring of industry that destroys millions of jobs per year with net positive job creation). The problems that have arisen with these advantages have compromised some of them. Free markets are not really free as anti-trust enforcement has been lax resulting in mergers dominating markets and weakening compeititon. Many times the "free market' talk has become rhetoric and distorted for individual purposes. And regulatory oversight has been weakened in the name of "free markets", as if the market system could be run with no government regulation at all. The weaknesses are: remaining an energy inefficient nation even as countries like Japan have become increasingly and way more energy efficient, and doing nothing about it, not having any policies to fix this and assign a big priority to it. In the area of access to education, which is critically important to national competitiveness, the US ranks poorly in the number of college graduates and in the opportunties for access to college across the middle and working classes. Says Porter, the US ranks 12th in the college or higher educational attainment for 25-34 year olds. And the US he says has made no progress in this area for 30 years. This is a disturbing trend in a economy that must have the education and skills to justify its high wages, and how will Americans compete for jobs that can be moved elsewhere in these circumstances he asks. Strategy requires honesty with ourselves in identifying and addressing the strengths to be preserved and the weaknesses to be fixed. Solutions have to go to the heart of the problem, with the patient effort needed for longer term solutions, when problems have become embedded in the system, and in the habits, culture, and way of doing things, that will produce disaster down the road. Wen it comes to spending on priority investments, Porter prefers to tax rebates the spending that goes into educational assistance and into logistical infrastructure. ...

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US Defense Secretary Gates sees the Wiki discloures on diplomacy as not being as threatening as imagined by government officials and as described. These desriptions are "fairly significantly overwrought" is how Gates puts it. He says these types of disclosures ocurred back in John Adam's presidency and have continued, and the US can work with other countries even if these discloures can be embarrassing. Overall he says the impact is fairly modest.

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Straits of Hormuz 21 miles wide at its narrowest point in the Gulf where Iran faces Oman and Saudi Arabia.  Hormuz waterway that carries 90% of Iranian oil exports to China, 82% of all Asian oil imports, could be disrupted but it is very unlikely because of the $67 billion in oil exports from Iran according to its central bank, 90% of these oil exports going through Hormuz waterway go to China. It would be to unfund it's own oil based economy and affect China not the US or Germany. Germany gets most of its oil supplies from Norway, US and other sources, US is self sufficient after shale oil production surge.