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A detailed account of how the Treasury under Secretary Paulson and the Fed under Bernanke worked through the evening of Friday and through Saturday and Sunday, to come up with a plan -coordinated with the heads of Fannie Mae and Freddie Mac and House Financial Services Committee Chairman Barney Frank- to support Fannie Mae and Freddie Mac before both companies ran into serious difficulties. The stock of both companies had been on a serious downward decline in the past 4 trading sessions with Fannie Mae shares losing 45% of their value and Freddie Mac losing 47% of their value. Also rumors in the financial markets on Friday had affected their share prices. Secretary Paulson felt it necessary to send a clear signal to the markets by making an announcement at 6pm Sunday that Treasury would get congressional approval to increase significantly the credit line at Treasury for the 2 companies, and also get approval for Treasury to take equity stakes in the 2 companies. Meantime the Fed Governors met over the weekend and made the decision to open the Fed's discount window to lend to the 2 companies....

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Civil charges to be filed by securities regulators against Anthony Piszel, Freddie Mac's chief financial officer from 2006 to 2008.

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  It appears from the timing and stature of Marco Rubio's visit to New Delhi, and Jaishankar's response that the US and India have both learned a lot on how to setup a vigorous relationship as business partners and as global powers, acting with maturity and patience. Rubio's very presence in New Delhi at a crucial moment in May, the fact that after the US president Marco Rubio is a popular and respected leader in the US. After talks with Marco Rubio, US Foreign Minister, India's Foreign Minister Jaishankar says he had a close relationship with Rubio. Rubio says the first person he saw after taking office onthe same day he first visited the State Department was Jaishankar, calling Jaishankar one of the best and most knowledgeable India has to offer. Jaishankar sees growing convergence in India's position with that of the US in West Asia for open maritime navigation, international law, and the importance of strategic trust partnerships and resilient supply chains to de-risk the global economy. Gone are the days when India caught up in a vague "non-alignment" movement that the Europeans are now practicing by distancing from the US, India accepts a robust US-India partnership in the interest of all countries.  Jaishankar put it this way to support the US-   “One, that we advocate dialogue and diplomacy to address conflicts. Two, we support safe and unimpeded maritime commerce. Three, we demand scrupulous respect for international law. Fourth, we are against the weaponisation of market shares and resources. And five, we believe in the value of trusted partnerships and resilient supply chains to de-risk the global economy. Rubio met with Prime Minister Narendra Modi on Saturday.  An interim agreement on trade is being prepared so that a final agreement on trade and investment can be signed. On energy India is keen on getting energy supplies from the US, - “We spent some time today discussing energy issues, and again, you’re all aware that our government’s fundamental responsibility is to address the needs of 1.4 billion people. Ensuring the accessibility and affordability of energy for them is our prime objective. Secretary and I therefore welcome the expansion in our energy trade in recent months. Diversified supplies are at the heart of energy security for India." ...

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David Attenborough in Ocean (Disney+) and Wild London at 99 years age. In many BBC documentaries on Travel and Nature by the BBC broadcaster Attenborough, he shows the same enthusiasm and lively feeling. There is no drop in output, in quality and enthusiasm says this report in The Times of London.

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Instead of a jinx much to the contrary the US economy outlook for 2030 in Feb 2026- a surge in investment spending in 2026-2030, new manufacturing investments and lower energy costs, moderating inflation, are likely to propel the US economy ahead to 2030.The effect of tariffs as a policy making tool has been muted because of exemptions, reversal of tariff rates once key objectives were secure for tariffs as a way to get action on foreign policy as with Indian purchases of Russian oil, deals with Japan, South Korea and China, India, UK and the EU. Some sources such as the Philadelphia Fed see price rises reaching 3% in some inflation guages more than the moderate 2.5% in the consumer price index for January 2026. These sources see the hiring slowing down just as layoffs begin to happen in the latter part of the year which is a possibility but less likely. At this point in Feb 2026 there is a tendency not to layoff and to hang onto employees, and hiring has been slow in 2025. January's report of 130,000 jobs added is the first sign of strengthening of the jobs market. Overall a cautious view would be to call it a soft landing after the inflation surge of the covid period. Another way of looking at is is more in line with the strategic direction of the US economy- freeing up the economy with investments in energy,  reducing the key costs of production, tax policy of Bessent's complete one shot depreciation of equipment increasing business investment, tariff policy making the world trading system fairer and now more attuned to US interests, all creating an investment and jobs surge in 2026-2027. There is an added benefit from US efforts to free up the world trading system from the stranglehold placed on it by China with its control over world manufacturing. A dominance and unwise concentration gained from the serious mistakes of the Bush-Clinton period of not putting in safeguards for US factories and jobs (that form the backbone for families in neighborhoods towns and regions across the US), and US business interests growing indifference to the very communities they were based in by outshoring to China destroying whole regions in America. Even where it is criticized or seen as negative there are huge benefits when the US acted. Tariff increase on India is a clear example- it built Indian resilient attitude in June-Feb 2026, and during this period it cut funding Russia's war in Ukraine by sourcing energy from other sources, the US policy led to India and EU+ Germany signing trade agreements to double their effort and double trade and scientific cooperation ( a goal secured for the US as it reduces concentration in China), was followed by US signing its own trade agreement with India within days, and increases world trade of US and EU and Germany in ways that will bring 2.5 billion people into a strong partnership that overshadows anything that happened in China in the Clinton-Bush-Obama years of failure. ...

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FBI's Kash Patel enjoying himself at US Olympic mens hockey finals in Milan as US get Olympic gold in overtime 2-1 against Canda, first win in 46 years. He makes time for the exciting game in a busy schedule. Patel plays ice hockey and is an ardent hockey fan. 

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The owner of Manchester United in an interview with Sky News points out that UK had a population of 58 million in 2000 up now to 67 million in 2025, an increase of 9 million mostly from immigrants, with the burden of benefits putting a large strain on resources, and creating social divisions that detract from addressing serious economic problems and issues. 

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Cognitive decline from social media shown in scientific studies and how short breaks are necessary to reverse the damage done. A plea to educators, parents, the public, and parliaments to take action now before more damage is done to girls, children and to the new generation in many countries.

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A unanimous vote of the Chinese Communist Party Congress now puts "Xi Jinping Thought on Socialism with Chinese Characteristics in a New Era" into the Chinese Constitution. As the 19th Party Congress ends Xi Jinping joins two other leaders of the Communist Party Mao  Zedong and Deng Xiaoping, who were so honored. It also appears that unlike previous leaders Jiang Zemin and Hu Jintao, Xi Jinping is concentrating authority and direction for China. This Congress marks the end of Xi's second five year term as party general secretary.  Under Hu Jintao there were efforts by some Communist leaders to create new power bases. This period ended with Xi Jinping bringing a clear direction and authority under the Communist Party. This has led to China taking on a leadership role in the world economy and global political affairs after the election of Trump in the U.S. in 2017. The management of the economy also has provided a soft landing after threats of disruptions in trade relations with the U.S. ...

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October 1 is a national holiday in China  and the 75th anniversary of the founding of People's Republic of China in 1949. Youth and students in China travel across the country to visit historic sites in the Chinese Revolution in what is called Red Tourism. The perceptions of young people and students on Mao in 2024 is shown in this video in FR24. This is how China wants to remember its past- a century of conflict with European powers and the British Empire after European Powers tried to breakup China following the Opium Wars in the 1850's. This was followed by the Japanese Empire staking its claims over parts of northern China in 1900-1945, and the period in which the US under General Joe Stilwell struggled with the dilemma of China knowing the corruption and failure of leaders to modernize China.  Then followed the decades when hunger and inadequate healthcare was banished from China, yet the industrial revolution that happened in western Europe and the US was elusive. Efforts in the 1960's to do this failed. Only when China showed the spirit of humility to work with Europeans and Americans and the Japanese and opened up its thinking to adopt markets in its own context of state run operations was the industrial revolution accomplished and modernization made to happen in the 1990's onwards. Three decades of rapid industrialization transformed an ancient nation in the heart of Asia. ...

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Peter Magyar Explained- Magyar 45 years was a follower of Orban till 2024 when he broke from the Fidesz ruling party. He married the Justice Minister Judit Varga of the Fidesz in 2006. He was a Hungarian diplomat in Brussels and held senior positions in state companies. The break with Fidesz came when Varga resigned over a government scandal. There is some skepticism even among Magyar's supporters and hope that things will change from the corruption that this report says is the most corrupt in the EU with funds from the EU for public services. Hungary now gets access to 18 billion euros of EU funds that were blocked because of Orban's policies.

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DJT arrives in Beijing China May 13 2026. Topics that will be discussed are - the Iran War and how to resolve it, trade with China, tariffs, and US Taiwan policy. China continues to run trillion dollar surplus in trade with the world with lower trade surplus with the US after DJT tariffs. From $295 billion in 2024 under Biden the new DJT administration with DJT, Bessent and Jamieson has lowered this to $202 billion by 2026. In that same period the world trade surplus of China has increased from $992 to $1.19 billion. It is not clear whether some of the drop in the US figures is from China sending product through channels to Mexico and Vietnam that is then shipped to the US. DJT showed results in his policies by lowering the trade imbalance by 32%, while trade imbalance with the rest of the world has worsened (increase in trade surplus of China) by 20%. What does this show? We can safely assume that excessive trade imbalances are not in either China, EU, or America's interest. China increases trade and political friction by doing so, and it leaves its own policy weak by overdependence on exports, too little effort to increase domestic consumption and living standards.  FOr the US and EU trade imbalances with China of over $1 trillion reflect misguided policy at the top by US and EU decision makers and governments. By exposing their manufacturing base they are losing valuable jobs by the millions and creating a situation where the few with good jobs in select industries live in large cities and the rest of the country in smaller towns and rural areas suffering from lack of amanufacturing base. This weakens the investment base for public services and leads to lack of investment ininfrastructure. This is called deindustrialization which the DJT and Biden administrations both fight hard to reverse for the last 10 years since the disastrous years of the Obama and Bush administrations 2000-2016. For this reason we can say a good Republican is as good as a good Democrat, a bad Republican is as bad as a bad Democrat, political labels are just that labels. The media in US and EU are on a wrong footing and still fail to cover this the way it should be covered to shake off the lethargy in public sentiment in the US so that a rapid drive to reindustrialize and build new new infrastructure on top of the old that was built after World War 1 can take place. In today's world India is stepping up with major infrastructure building just as the US and EU ramp up their rebuilding.  ...

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Two British teams Liverpool and Manchester City and two Spanish teams are all that remain in the semifinals of the Champions League soccer. Manchester City face Real on April 26, May 4, and May 28. Pep Guardiola says it is an honor to play a side like Real Madrid.

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British prime minister Theresa May calls a surprise general election for June 8, 2017, with the hope of winning a new mandate for Brexit negotiations larger than the slim 17 vote majority in the House of Commons. Experts say the disarray in the Labor Party improves chances of Ms. May winning a large parliamentary majority. A YouGov PLC poll shows Conservatives at 44% support, Labor at only 23% and Liberals at 12%.

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Tarcisio de Freitas, who allied with Bolsonaro, wins by a 10% margin over the PT candidate in Brazil's largest state Sao Paulo. About a third of Brazil's GDP is represented by Sao Paulo.

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DJT on Iran and the midterms-  "voters understand that" about Iran not having a nuclear weapon and calls for Saudis, Qatar, Pakistan, Oman, Turkey, to sign the Abraham Accords. He says the electon results in some states May 26 showed Republicans and much of the Nation with large majorities for candidates endorsed by DJT- voters understand the president's policy to not let Iran go for a nuclear weapon. This WSJ report cites concerns of Republicans about the midterms yet as soon as it appeared that the president was about to reach a  deal that would be similar to Obama's- that failed and financed Iran's third effort for nuclear weapons- over the weekend, as soon as this appeared to be the course many Republicans and the WSJ Editorial Board, said this was a bad idea. The president paused that effort. At a Cabinet meeting DJT said  about the Arab states signing the Abraham Accords- the Saudis and Qatar, Oman, Turkey,Jordan, “I think they owe that to us to be honest.”  “I’m not sure we should make the deal if they don’t sign." On Iran getting funds from the US which could go right into making a nuclear weapons program again as it did after the Obama administration did this, DJT had this to say- “We’re not talking about any easing of sanctions, no giving money. When they behave properly…we’ll let them have their money.” Repeatedly at campaign events and rallies across the country for 10 years DJT has said Obama made a serious mistake in handing over funds that were put right into building a nuclear weapons program with a ballistic weapons program, for a third time. This has happened before in North Korea. Obama allowed 11 tons of uranium enriched at 20% to be shipped to Russia- that did not stop Iran from a new nuclear weapons program and a threat to Israel. There is also considerable Republican skepticism about any deal that does not remove nuclear weapons. About sending the Iranian uranium to Russia or China DJT said- “No. That would not make me comfortable.”  About Iran's economy DJT said inflation is "at 250% "and they are negotiating on fumes." DJT calls it a "conflict" (the blockade not committing US troops) and not an open ended war. ...

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Theresa May, prime minister of Britain, faced a difficult situation by Jan. 2017- the European Union was not going to budge on the free movement of people and services within the EU. With no prospects for negotiations on the migration issue and a decision to retake control of migration, May announced on Jan. 17, 2017, that she would pull Britain out of the single market. By Jan 2017 Theresa May was perceived in the media facing tough challenges and having no clear path, and no clear plan, and little support from the civil service, business, and within a divided Conservative party, to implement Brexit. This has not changed much even with this decision, as the additional hurdle of getting Scotland, Ireland and Wales, and the close to 50% of the people who voted against Brexit to support this move remains as large as ever, the situation of ample uncertainty, for May and for Britain.

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US inflation in May was up 1% over April 2022, and 8.6% above a year earlier. Of the 1% increase in May over April about half was from increase in prices of appliances and furniture and consumer items bought from stores such as Walmart and Target. The trend is shifting quickly as buyers are shifting purchases out of this category and spending more on travel and eating out, entertainment. Retailers such as Target are stuck with excess inventory and plan to discount items. This will result in an easing of inflation.

Shortage of semiconductors for cars are persisting but should ease at some time. Service cost continue to increase. Overall there should be an easing of inflation but not enough for the Fed to change its policy of interest rate increases.