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The transformation of towns in Iowa like Newton, once the place where Maytag and washing machine plants were located, and now with many of these plants closed the shift to making parts like blades for wind energy. The transformation of Toledo, a location for the auto industry factories, and now with the closing down of these plants the shift to manufacturing solar panels for solar energy. In all a transformation that is expected to generate 3 or 4 million jobs in the midwest in energy related products, to replace the jobs lost in the auto industry and in industries like appliances, like the Maytag plant in Newton that closed. Along the way there is hope and optimism and awe at the new product being built for wind and solar energy, which is cutting edge and not easily outsourced because of the size of the blades and the structures in wind energy generation. The struggles are chronicled of the people in Newton, Iowa and a whole generation of workers who even without a college education were able to live middle class lives because of Maytag plants in the area. And the distress caused as these plants cut employees and let the plants get antiquated, and finally the distress with the shutting down of the plants....

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The 1 hour 20 minute flight London to Amsterdam uses a Virgin 747-400. Virgin teams up with Boeing and GE Aviation for this project. The plane will use 20% biofuels and a drop-in solution, meaning the GE engine needs no modification and the engine performance is not affected. Virgin gets marketing cache from this move. Why aren't other airlines doint this? Another thing Virgin will not use biofuels that are derived from crops like palm oil or others that consume vast amounts of land and water.

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Venezuela faces an uncertain future after U.S. efforts to support Mr. Guaido and call for new free and fair elections have failed. With help from Russia the Venezuelan economy is showing signs of recovery from the steep decline and high inflation in 2019. Oil production is expected to reach 1 million barrels a day in 2020 after falling to 650,000- 700,000 barrels a day in 2019. Russia's oil company Rosneft provides critical help for Venezuelan oil sales and maintenance in oil fields.  National Security Adviser John Bolton is faulted for his advice to president Trump on Venezuela, that merely voicing support for 36 year old Guaido, would lead to regime change without action from the U.S. With the recovery in Venezuela with help from Russia and Cuba, Mr. Guaido's popularity has dropped by 20 points to 38%, according to a Venezuelan pollster Datanalisis. Most Cubans and Venezuelans in the U.S. are in Florida where there is support for new elections, and Mr. Trump continues to support Mr. Guaido. The lack of support for change from other countries including Europe, India, Turkey, and Mexico have led to a stalled situation in Venezuela. There is concern for the steep inflation, the migration of about 4.5 million Venezuelans, the shortages of critical supplies as a result of the economic collapse in 2019. The situation is stabilizing for the government yet the future of Venezuela with U.S. sanctions and weak economy leaves Venezuela in a precarious situation. Venezuela continues to be an example of how well meaning changes for social justice can lead to political changes that bring about economic collapse. This happens  when business and the economy flounder under mismanagement and corruption under crony socialism, a variant of crony capitalism. The old capitalist class and the privileged families who ran the country under its old two party system are gone. Replaced with a new class. The trying out of untested economic ideas in the quest for social balance leads to economic mismanagement, loss of critical human resources which leave the country, and a higher degree of poverty with shortages than before.  Today in Latin America Brazil shows how allowing generous pension benefits at the expense of basic needs and public services in the budget can hurt the economy. Argentina's overborrowing once again shows how this leads to IMF loans and harsh economic austerity. Chile shows how not financing pensions and public services can lead to collapse of public confidence and riots. Venezuela shows how the quest for social justice and reducing privilege can itself get flawed, leading to mass migration of as many as 4.5 million citizens. This happens under models that vary from free enterprise models to socialist or nationalist models showing that models can be less relevant than good sense and good management. In the beginning and for some time each of these models worked well, commodity price supported booms concealed real problems. Avoiding extremes, prudent spending, good investment and hard work, investment in education and infrastructure, building consensus, and good management, is critical for the future to avoid the bad outcomes facing much of Latin America. A lesson also for Asian and African countries that basic virtue is more important than socialism or free enterprise or nationalism when it comes to development.   ...

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Dana Goldstein of the NYT looks at the big problem in education today- the failure to teach reading and writing skills to students in American schools. Goldstein cites two alarming statistics. About 40% of students who took the ACT writing exam in the high school class of 2016 lack the reading and writing skills to pass a college level composition class in English. 8th and 12th grade classes in the U.S. have 75% of the students lacking writing skills proficiency, according to the National Assessment of Educational Progress. Of the 1204 comments to this article in the NYT, many of the 17 selected by NYT say the problem is that students lack reading skills. Other problems shown here are the handicaps created by technology, yes technology. Mobile phone use is common and this is done quickly with the least attention to write good sentences, little attention to punctuation, spelling or grammar. Half or incomplete sentences are easier to type on mobile, so a new generation grows up thinking that this is normal. As a result a whole generation of kids have not learned to read or write well, constructing sentences with limited vocabulary. Steve Jobs and Apple may say that iPads and iPhones, smartphones and other tech devices have advanced reading with the beautiful display technology screens, but this is not what is really happening. Google may say that its search helps people access good reading materials, and this too is not what is really happening.  Equally alarming is that there is no clear agreement on how to tackle this problem. The No Child Left Behind 2002 law set a program emphasizing reading and use of multiple choice questions to test reading skills. This was followed by the Common Core standards now implemented in schools for 6 years that shift the focus to writing. Yet the results are still the same, showing little progress. Goodman cites as examples of disagreement, the Writing Revolution project which focusses on grammar and other writing skills, and the Long Island Writing Project that focusses on students finding their own voice by freewriting. A student in the freewriting class which encourages finding your own voice, expresses her frustration by saying she doesn't hear a voice- what voice, she asks.  One of the problems is that teachers themselves lack writing skills. A look at 2400 teacher preparation programs shows little attention paid to teaching writing. The head of the Reading and Writing Project at Columbia University's Teachers College, says Common Core failed in implementation of massive teacher training, which is required to address the problem. As a result remediation programs are needed badly in colleges to fix literacy skills, when better teaching would have prevented the problem in the first place. Little understood or debated is that every generation has to learn about the country's democratic institutions, every generation has to make its own effort to gain civic literacy- it is not something that can be taken for granted or handed down from one generation to the next. Without reading and learning about how these institutions function, young people lack the skills for participating in our democracy and in the global economy. ...

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Royal Bank of Scotland (RBS), 83% owned by the British government, reported a net loss of 1.99 billion pounds for the second quarter of 2012. Much of the loss comes from a 3 billion pounds accounting charge for the rising value of the company's debt.

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RBS announced extra provisions for legal issues and settlements of 3 billion pounds in Jan 2014. RBS is also taking impairment charge of 4-4.5 billion pounds for an internal "bad bank" to cover losses from the 2008 financial crisis.

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Retirement and close to retirement planning for 2015 from Jonathan Clements of the WSJ.

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Zeit Online takes a look at German chancellor Angela Merkel's statement made in a beer tent in the Muich suburb of Trudering- "The times in which we can completely rely on others are somewhat over, as I have experienced in the past few days." Zeit Online says the words "ein Stuck" in German were meant to say a bit or somewhat, but the essence of the statement that the depending on the trans-Atlantic alliance was now over comes right through.

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Tracy Dolgin, CEO of the YES cable sports network takes a novel approach to managing by reversing the Peter Principle. The Peter Principle pointed out that people start by being good at doing what they do, every time they get promoted they manage more and do less, to the point that they are not hands on anymore and are into meetings, shuffling paper, sending too many memos, often into political interdepartmental rivalry, making them worse at their job in terms of productive effort. Dolgin's says she created a flat organization and hired people who were good at doing and with functional expertise who loved to be hands on.

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There is considerable opposition among analysts, Congressmen, and experts to continuing with the current management at GM if help is provided to automakers. And GM's management is insisting on staying on which may complicate things. There is a strong perception throughout the country that management has failed the company, and now the economy of the midwest and the country. And some are arguing that bankruptcy or government receivership will be necessary to effect a complete restructuring of the industry after years of failure both by management and unions, the credit crisis having come as the last blow after a long series of mistakes and inability to get things right.

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Zhu Changhong plays a key role in investing China's $3.5 trillion dollars in foreign reserves. He is part of the management at China's State Administration of Foreign Exchange or SAFE, a division of the central bank. He maintains a low profile, yet he has played a critical role in shifting investment into Japanese and U.S. equities and bonds issued by the European Financial Stability Fund, reducing the risk exposure to U.S. Treasury's as the U.S. Federal Reserve changes monetary policy. From 45% of China's foreign reserves invested in U.S. government bonds, or $1.11 trillion, in June 2010, SAFE under Zhu's guidance reduced the allocation to 35%, or $1.14 trillon, in June 2012, according to a Wall Street Journal analysis. He has an interesting background. Coming from Anhui province, he studied physics at the University of Chicago, then shifted to life as a trader in financial markets at Allianz's PIMCO investment firm. After spending 20 years in the U.S., Zhu returned in 2009 as chief investment officer of SAFE. He was drawn back to China by another expatriate Yi Gang, a SAFE director who was an economics professor at Indiana University- Purdue University, Indianapolis....

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How ethanol plants create opportunities for the local economy but also problems as production of ethanol requires scarce water resources in states like nebrask the No. 3 state after Iowa and Illinois in corn production. A 50 million gallon ethanol plant could use up 150 million gallons of water to make fuel, thats 3 gallons of water for 1 gallon of ethanol fuel. In the Lower Republican river Natural Resources District of Nebraska farmers which is a dry drought prone area dependent on underground water formations for irrigation, farmers pumped out 62.6 billion gallons of water from underground. Now that a court ruled that Kansas should get its fair share of water from the Republican River which is sees its levels affected by the underground pumping near the river, this water district is having to put irrigation meters that are checked after each harvest to limit use to 11 inches on average over 5 years. This article shows how scarce resources like water can be used up in the production of ethanol, and how that can complicate life for farmers even though the extra income from ethanol plants can boost incomes in depressed farm communities....

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Iraq's oil ministry wants to move ahead faster in developing its oil fields and will let foreign oil companies bid for contracts to develop 6 oil fields and 2 natural gas fields by end of 2008. About 40 foreign oil companies from USA, Europe, Japan, China, Russia have been approved for bidding on contracts. According to BP PLC statistics Iraq produces 2.5 million barrels a day, up from 1.9 barrels a day last year, but far below the 3.5 million barrels a day produced in1979. The Iraqi goal is to produce 1.5 million additional barrels a day, but obstacles are the lack of a hydrocarbon law which is not moving quickly, and the Kurdish region signing its own deals, and this announcement may be an effort to go ahead and not wait till a hydrocarbon law is passed and sign agreements which would be technical service agreements for foreign expertise for a fee. Oil revenues are helping stabilize Iraq and as security improves oil can be a big stabilizer with increased production and financing development and job creation and building infrastructure damaged during the war and infrastructure that never existed....

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This Journal editorial points to the 3 page letter from Gen. Dempsey that make a U.S. response in Syria seem difficult and laborious, cost $1 billion a month, and endless. Gen. Keane points to the Syrian air force operating from just 6 main air strips and with about 50 aircraft out of 100 operational, using this to terrorize the opposition and the countryside indiscriminately including civilian population. Taking these out with cruise missile and other strikes is all that is needed, not even a no-fly zone says Keane. Short of a proper response the U.S. and the Obama administration could only end up leaving the Assad regime in place for longer, says the Journal. Aid to rebel groups that can then do the work of completing the transition is the right strategy, says the Journal.

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This is a big desicion by the Obama administration, and has global implications for the amount of oil consumed and the emissions discharged. The Obama administration will introduce one national standard for automile emissions and mileage standards, replacing the patchwork of standards and skipping over the challenges to the California standards by using those standards to set the national rules. The rules take effect in 2012. It will create a new national standard for a car and light truck fleet in the USA, that is 40% cleaner and more fuel efficient by 2016 than it is now, with a new average of 35.5 miles per gallon. The current national standard is 25 miles per gallon, and this standard has fallen way behind the Japanese and the Europeans. The Europeans went through their battles for fuel efficiency a few years ago with auto industry resistance, and this was finally settled with tougher standards, giving the European industry advantages in technology over the Americans. The American car industry stalled higher standards, and what standards were passed were whittled down by heavy lobbying in Congress. As a result a battle raged between those interested in conservation and the environment and the Detroit car industry, especially in a deteriorating global environment for this type of prolific oil consumption on American highways. This lack of foresight on the part of Detroit carmakers, and their management, accelerated their financial collapse in 2008 and 2009, as large car and truck sales collapsed. That this tough new standard of 40% improvement in 2016, would in fact not have been possible without this fiinancial collapse and turning to the government for a bailout - with the entire board of General Motors being replaced- is one of the ironies of this situation. This decision will almost certainly accelerate the development of smaller models, and bring the kind of attention to them that will give them the quality and features and comfort to make them command higher prices and become profitable, as is the case in Europe. For too long the American small car became synonymous with being a lesser car in many dimensions of design, quality, comfort and performance, so that it became a cheap car that you upgraded from to a larger car as you became affluent. It had been that way, but did not have to be that way after the world had changed. And the larger models like the pickup trucks and large cars are more likely to be phased out with the new regulations. This will also bring a `new sanity to oil prices, as the reduced consumption in the US will accomodate the increased consumption in India from the small cars like the Tata Nano which look set to sell in the millions, and still keep oil affordable for tight budgets worldwide. In this sense it is a victory for global good sense. For President Obama this is a personal quest, as he co-sponsored 2 bills in 2006, during this second year in the US Senate, one to raise fuel economy standards, and the other to encourage the use of alternative fuels....

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Empowering people and civil society was the main goal of En Marche movement founded by Emmanuel Macron. As president Macron has governed in the presidential style of De Gaulle, creating dissatisfaction. Macron is criticized for centralizing power and decision making process so that the style of governing is in sharp contrast to the way En Marche draws on grass roots support. En Marche itself was critical of how the older politicians had governed France. The Interior Minister and Environment Minister resigned with the Environment Minister saying he felt "all alone" in government. This is happening as the European Union election is approaching with the poll numbers of Macron dropping to about 26%. Marie Le Pen's RN is ahead of Macron's En Marche for the first time in polls taken in November 2018 for the May 2019 European Union elections. The think tank Friends of Europe shows 41 percent of French respondents in a survey saying life would be the same without the EU, while only 21 percent thought it would be worse.    ...

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The declining support inside the EU and in Turkey for Turkey's joining the European Union. Only 20% inside the EU support Turkey's entry in the EU and only 44% inside Turkey, according to a Germn Marshall Fund survey in 2013. As recently as 2004 73% of Turks supported joining the European Union. The EU officials are trying to revive discussions on entry as a way to get the Erdogan administration in Turkey to commit to democratization, respect for the opposition and protesters, and a way to coordinate regional policy in the Middle East.

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15 to 24 year olds make up only 10% of the German population of 83 million, just 8.5 million people. It is down form about 12% and about 10 million people in 2005. Germany's population has grown because of immigration yet there are fewer young people. Across Europe this group is 10.6% in 2019, higher in Denmark and Ireland. 

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Pierre Beaudoin will step down as CEO as Bombardier announces a $1.59 billion loss for the 4th quarter of 2014. The loss for 2014 was $2.2 billion, compared to a profit of $1.4 billion in 2013. Revenues increased in 2014 from $18 billion to $20 billion. Beaudoin will remain as executive chairman. The new CEO is Alain Bellemare, former president and CEO of the United Technologies propulsion and aerospace systems group, which includes aircraft engine maker Pratt and Whitney.