LyrArc Article Gist
Bradsher, Tankersley and Cohen say in this NYT report- US industrial policy under president Biden corrects the failures of the past. Chinese experts in Hong Kong say the US and Europe deindustrialized their economies with pursuing of policies called "neo-liberal" but basically Reagan era policies that Democratic presidents Clinton-Obama imitated. As they deindustrialized it created disaffection among the struggling lower and middle income classes making $35,000-$106,000 that were big losers in the process, creating threats to democracy as financial and tech, plus pharmaceutical sectors took control of the economy. China's success comes from three decades of mastering the ways of practicing industrial policy that it can support private companies with low cost land, additional subsidies that reduce the cost of production and provide a buffer to absorb losses so that it could dominate key industries. Policies where textbooks and economists trained in the US failed utterly and completely leading to dangers to US democracy that we see as opportunities for good paying jobs in manufacturing disappeared for middle and lower income households from 1980 to 2020. These economists trained in the US always said see lower cost Chinese made goods means lower and middle income people pay less, never saying that this means all opportunities for better paying jobs in manufacturing will be lost for these classes in society. The tech and financial sectors had close ties to the new arrangement that turned manufacturing over to China from the Reagan era to the Obama and Trump era. Apple and Tesla and many industries benefitted from manufacturing mostly outsourced to China. ...

LyrArc Article Gist
US Representative Katherine Tai sets out the policy of the Biden administration on trade with China. The policy is simply to keep Trump administration policy on tariffs in place and seek dialogue with China. This report in the WSJ explains what this means.  The Biden administration is preparing a long term policy to restore American leadership in the world in technology, trade and industry. This means as in semiconductors providing $52 billion to assist US firms to make semiconductors at home. The US will build a new supply chain that is resilient and brings more of the critical technologies in manufacturing back to the US. Where Mr. Trump was the initiator of a new policy on trade but lacked a long term vision Mr Biden is giving the Trump policies new vigor and shape and a long term vision of belief in America's role in the world. He is doing this by building on America's key strength - its people. The only way to do this is to invest massively after three decades of disinvestment under previous administrations. This comes in the shape of the $3.5 trillion plan for infrastructure and the Families and Workers Plan. Biden is also building stronger relationships with allies Australia, Britain, Japan, India, and Germany for trade, supply chain, and defense.   ...

LyrArc Article Gist
Tariffs are unconventional tools for border security yet appropriate in situations such as these. Canada could have done this before a 25% tariff was announced by DJT- it would have been common sense for Canada to do what it did after the tariff before the tariff- put 10,000 frontline personnel at the Canadian border with the US, appoint a minister in charge of drug flows and fentanyl, and list cartels as terrorists. Considering the damage to the US from the border it was imperative that Canada, and Mexico took responsibility for the borders a long time ago. 

Within 24 hours of the Trump announcement of 25% tariff on Canada and Mexico the leaders of the two countries turned around to do what should have been done a long time back.

LyrArc Article Gist
President Trump returns to the White House after 3 days at Walter Reed Hospital. Mr. Trump will isolate at the White House residence, and not be at the West Wing where many aides work. He wore a mask as he exited Marine One and stood on a White House balcony. He tweeted "Don't be afraid of Covid. Don't let it dominate your life." Mr. Trump has been given Regenoron drug, Remdesvir and other medicine to reduce the virus load and improve recovery by some of the best doctors at Walter Reed Hospital. A fitter president who has lost some of that extra weight could be one learning point from the encounter with covid. The next week will be critical to ensure the recovery is stable and long term.

LyrArc Article Gist
William Galston in the WSJ says outright for the first time in the WSJ that the years from the last term of Clinton, through the Bush, and Obama administrations were an outright failure for the American people. He documents the losses- 5.7 million job losses in 2000-2010 as Clinton opened China's entry into the World Trade Organization without any precautions taken to prevent abuse of world trading rules after the experience with Japan. Worse no help to the displaced workers which fed into the resentment of workers. Sex scandals weakened the presidency and acted as the major distraction during the last years of Bill Clinton. Over the administrations of Bush and Obama almost the entire US manufacturing base was dismantled and shipped to China. Pharmaceutical companies were allowed to charge recklessly when Bush disallowed Medicare to negotiate prices for pharmacueticals placing additional burdens on the American people. Bush started long wars in Afghanistan and Iraq that cost the US dearly in lives and resources wasted with no vital US interests at stake as in Europe. This distracted attention from problems simmering at home. Obama continued these wars preferring to focus on reelection. The migration crisis, the neglect of infrastructure worsened during this period. The Bush deregulation of banks led to the 2009 world banking crisis that led to large layoffs worsening a bad situation from outshoring and creating a class of unemployed, and shrinking household wealth and savings. The Biden administration, the first Trump administration and now the second have started the process of revival of the US. And yet Biden, DJT are relative outsiders who came to the presidency and were not favored in the established order of the 1990-2016 period. One can say about Blair, Cameron, Boris Johnson in Britain, about Clinton, Bush, Obama in the US, and Schroeder, Merkel in Germany that the leadership was mediocre and failed the people of Europe and the people of America.     ...

LyrArc Article Gist
The U.S. under president Trump ends the 18 year long war with an agreement signed in Qatar between the U.S. and the Taliban. The Taliban are required to fight all forms of terrorism in Afghanistan as part of the agreement. In the first phase of the withdrawal of American troops, a third of the 12,000 American troops will be withdrawn with a similar reduction of NATO forces. This ends a costly war that cost about 1 trillion dollars and acted as a distraction from major problems in America such as aging infrastructure, and problems related to health, education and other services. President Trump was clear about his perception of America's role during a New Delhi news conference. America could not act in a police role for other states and regions, he said.

President Trump has secured support of Pakistan, Saudi Arabia, and India for the agreement to bring peace to the region.

LyrArc Article Gist
U.S. president Trump's executive order reversing parts of the Clean Power Plan of president Obama may extend the life of older coal powered plants, but overall it is unlikely to change the shift away from coal for the U.S. utility industry. It will do little to reverse the market forces that are leading to a shift to natural gas for the utility industry with the increasing availability of natural gas. In this WSJ report Cassandra Sweet cites Duke Energy Corp. CEO Lynn Good, who says natural gas for Duke will be the leading fuel followed by coal by 2026, and natural gas now makes up 28% of its mix with coal at 34%. He says a $11 billion ten year investment in natural gas and renewable energy will go through regardless of what the Trump administration does because of the economics- the declining price of renewables, the competitive price of natural gas. Companies are loath to base their long term plans on changes in administration as they see the economics dictated by advances in technology, and the general sense that cleaner energy is here to stay for the long run. Already in the U.S. 34% of total power supplies are from natural gas and 30% from coal for 2016, according to the U.S. Energy Department. This may change slightly as coal is used where it is economical and makes sense without the carbon rules, yet the long term trend is clearly towards natural gas. ...

LyrArc Article Gist
This editorial in the WSJ points out that president Trump's and the Iranian government's response in the firing of missiles at a U.S. airbase in Iraq were intended to quiet things down so that there was no escalation. Both sides were in effect standing down which president Trump called a good thing. 

Beyond deterrence the U.S. effort is also to work with its European allies to open a path to renegotiating the 2015 Iran nuclear deal so that a long term settlement can be reached for the region. 

LyrArc Article Gist
China's military drills around Taiwan have an unintended effect of creating a shift in American and European sentiment on the overconcentration of US and EU investment in China. Business in Germany and in the US has operated for a long time in the Merkel and Bush-Obama-Trump administrations a if this overconcentration which hurt workers and communities in both the EU and the US did not matter as long as the interests of the individual companies was met. Mr. Biden's policy takes an entirely different approach to protect American workers, rebuild American manufacturing, rebuild infrastructure, and to build America's leadership in the world. The military drills only increase the awareness in America of the risks and dangers of the positions taken by previous administrations. Shifting sentiment to back president Biden's strong steps to rebuild America and American leadership.

LyrArc Article Gist
Fausset of the NYT looks at a rust belt city in the U.S. midwest that has suffered as U.S. manufacturing declined. Much of the decline happened in the 1980's in the steel industry in competition with Japanese imports. North of town there is a GM plant that makes the Chevy Cruze. The unemployment rate of 17% in 2010 has dropped to 7.6%. Fausset describes the life of a retired steel worker on state pension who works in law enforcement. He is Joe Marshall Jr. from the song by Bruce Springsteen about a steel worker who the singer read about in a book. Youngstown appears to be divided by people who support Trump and Clinton.

LyrArc Article Gist
This report in WSJ says president Trump's trade policies have flopped so far. Part of the reason are Mr. Trump's tax policies which acted like a stimulus to the U.S. economy at a time when the world economy and China were slowing, even though this created a large fiscal deficit. Increase in interest rates by the U.S. Federal Reserve increased the value of the U.S. dollar against other currencies making imports cheaper. The Trump tariffs are in play in negotiations with the Chinese government, and the WSJ argues that Trump's tax policies are in play too. Not that the Trump threat of tariffs has not accomplished its initial intent of getting China to the negotiating table in a serious way for the first time since it joined the WTO, and reminding it of its WTO obligations and obligations for maintaining a level trading field free of state sponsored subsidies to reduce competition. Economists argue this proves that the trade deficit is influenced only by macro or larger economic influences such as the strength of your currency and demand for imports. In the long run the Trump tariff action may work, yet the tax policies may prove inconsistent in increasing the fiscal deficit without producing gains in investment in infrastructure and other vital areas of investment in the economy that would provide benefits to society. ...

LyrArc Article Gist
The complete Transcript of the Harris Trump television debate on ABC Television that went on for 90 minutes. As expected Harris remained organized, thoughtful and precise in her answers to questions of cost of living, the economy, and never wavered in her focus on her plan for an Opportunity Economy that lifts all boats where she said Trump had none. Trump raised the immigration issue in questions about the economy and cost of living failing to tackle one issue at a time and do it well and convincingly. Harris brought up Trump's focus on himself and billionaires, and on Project 2025, when Trump talked about immigration. Trump's response on Project 2025 was long and rambling and failed to register losing critical minutes and spreading himself thin leaving behind the idea that he had no Plan for America, for if he had one would he not have offered it when the question was raised. This set the pattern for the rest of the debate. The next issue Trump hoped to focus on was migrant crime after immigration. This is where his exaggeration that migrant crime was rampant came under the first fact check of the evening by David Muir. Something that other moderators had amazing as it sounds neglected their duty to do - all of them failed to do this with rigor and on the spot- till David Muir. “As you know, the F.B.I. says overall violent crime is coming down in this country.” ...

LyrArc Article Gist
President Trump announces a $ 16 billion farm aid program to help American farmers hurt by Chinese tariffs on American agricultural products. The money goes directly in payments to farmers. Mr. Trump sees the tariffs on Chinese products as paying for the program.

The Trump administration has blacklisted China's Huawei  and president Trump says that he considers it to be a threat to national security. He also sees it as a bargaining chip in future trade negotiations with the Chinese. China's president Xi sees his country's national sovereignty in how it sets its own economic policy and manages its economy as an issue. Both sides are far apart. Xi even cited the Long March led by Communist leader Mao to Yenan in the 1930's as an example of the fortitude needed by China in dealing with the American challenge.

LyrArc Article Gist
President Trump cancels a summit meeting with the Taliban and Afghan leaders at Camp David planned for this week as a step forward in ongoing peace talks to end the war in Afghanistan. The Taliban attacks in Kabul that killed an American soldier was the reason given for cancelling the meeting. President Trump has as one of his goals ending the war in Afghanistan that has tied up American and allied resources over two decades. The long drawn out conflict has little support in the U.S. particularly because of domestic priorities including infrastructure and the economy, and the lack of any national interests for the U.S. in foreign wars.

LyrArc Article Gist
China showed its sensitivity to U.S. or British criticism by seeing this in terms of the colonial days when Hong Kong was a British colony. Media outlets in Beijing show U.S. diplomats have met with senior government officials. There is a sense that the U.S. and Britain could be supporting the protests. Reports in WSJ show president Trump keen on not letting Hong Kong situation affect the trade talks with China.

LyrArc Article Gist
David Brooks of the NYT says the Republican party is failing when it embraces Trump's version of populism with its racial division, tax plan that favors Republican donors and ignores fiscal conservative concern over deficits that affect future generations, supporting the election of Moore in Alabama, the constant Twitter comments that show prejudice. He says this will have destructive effects that could last an entire generation. This isn't the Republican party he has known for so long, says Brooks. The time is passed says Brooks when sensible republicans could go along in the middle by not agreeing with Trump, yet avoiding the task of opposing the elements of Trump policies that conflict with America's long held ideals shared by both parties. He calls its a corrupt deal that Republican party leaders in the Senate and Congress have agreed to make with Trump thinking that somehow this will all work out for them even if it doesn't for the party. Selling one's soul is somehow not an option that people would take in their right mid, so he wonders aloud what is happening in the party- and calls it a rot besetting the party of Lincoln, TR and Eisenhower that won't get it to any good place.   ...

LyrArc Article Gist
This New Yorker has resilence in his roots in the Scottish Hebrides islands. No wonder he was able to take up the challenge of a US unable to extricate itself from  wars in the Middle East (Reagan, Bushes, Obama), and unfair trade with China, and an onslaught of unfavorable media attention. His name is DJT. According to the BBC in this story on Donald Trump's mother Mary Ann Mcleod, she was a regular churchgoer, well respected in the community, who visited her homeland in Scottish isle of Lewis, British Hebrides, frequently. Mary Ann McLeod is the youngest of 10 children of a Scottish family in the town of Tong in the Hebridean isle of Lewis in the North Sea, northwest of the Scotland mainland. Her father ran the local post office. The family was  relatively poor coming from Scottish people cleared of Highlanders during the Clearances and with fishing disasters in the family. Two hundred servicemen returning from the first world war to Tong lost their lives in a shipping disaster and the economy of the island was in poor shape. With no opportunities or future many immigrated to Canada. Mary Ann's sister Catherine immigrated to Canada and on a visit to Tong she took Mary back with her to New York in 1930. Mary worked as a nanny for a wealthy family in New York before meeting a socialite of German immigrants Fred Trump. Mary returned to Scotland in 1934 and by then she found a new life with Fred Trump whom she married. The couple lived in a wealthy area of Queens and Fred Trump ran a real estate business he had inherited with his mother. Donald Trump still has three cousins in Tong in the British Hebrides Scottish isles. His older sister Maryanne Trump Barry regularly visited Tong. Donald Trump visited Tong in 2008. Of this family a local who knows the cousins and the family John MacIver, a local councillor and friend of the cousins told BBC in 2017- "They are very nice, gentle people and I'm sure they don't want all the publicity that's around. I quite understand that they don't want to talk about it."   ...

LyrArc Article Gist
In a first at Davos World Economic Forum, China's president Xi Jinping uses the 2017 meeting to give a one hour long spirited defense of the world trading system, critical of U.S. president elect Trump's protectionist views without naming him. Xi pointed out that "no one will be winners in a trade war." And went on to add that restricting world trade was like "locking oneself in a dark room, keeping out wind and rain from outside but also light and air." For the first time Jinping stated that China would take the U.S. role of defending the world trading system from attack as needed. On climate change Xi defended the Paris accords, and gave China's commitment to pursue changes regardless of what the U.S. under president Trump does. This follows Chancellor Merkel of Germany's statements on the issue critical of the views of president elect Trump, and taking the lead to defend the world trading system. Xi also pointed out that many of the ills that led to voter discontent in the West were not really from the freeing up of trade but from the pursuit of excessive profit with the financial crisis of 2008.   ...

LyrArc Article Gist
As Russia makes gains in the whole Donetsk region in eastern Ukraine the UK approves use of its long range missiles inside Russia. Biden is on the verge of making a similar decision as Iran sends long range ballistic missiles to Russia according to reports in NYT. Use of American long range missiles is not expected to affect Russia's overall military position in the Donetsk region in the east. The US and president Biden has only reluctantly provided support for use of US weapons systems to not risk escalating the war. Even artillery on the Russian side was off the list of approved use till Russia used it in Kharkiv border region at which point it was approved. Russians see Kiev as the origin of the Russian State in the 1400's, and eastern region of Donetsk as Russian if western Ukraine seeks to join NATO and EU. Britain has opposed Russia since 1750 as it saw Russia as the threat to an Empire it was building in South Asia, in India that financially supported its Empire worldwide. Britain has a long history of engaging Russia in conflict to protect British trade interests and expand its imperial influence as in the Crimean War fought in 1850's against Russia with the French to gain control of the Ottoman Empire and its Arab states for its trade and imperial interests. Republicans other than Mr. Trump and his supporters are for stronger support to Ukraine following US policy of opposing invasion to achieve military goals since 1900 against the Japanese in China and the Vietnam War was fought on the same basis in the 1960's considering the South Vietnamese state as an independent republic, just  invaded by the north, by North Vietnam, just as the US had done in the Korean War between North and South Korea. In the Vietnam War nationalism played apart with the Vietnamese nationalism prevailing by 1970.   ...

LyrArc Article Gist
In this WSJ op-ed essay William Galston says U.S. prestige and influence in the world has suffered under the presidency of Mr. Trump. The special relationship with Britain and Europe is at risk. Neighborly relations with Mexico are a thing of the past. Embracing questionable regimes is seen as failing America's respect for democracy. Squandering the moral authority and prestige of the U.S. will have long term consequences as China and Russia have increased their influence, says Galston. He points to Trump's attitude of indifference, he probably does not care, says Galston.

LyrArc Article Gist
Special Counsel Robert Mueller issues an indictment of 13 Russians on Feb. 16th, 2018. The indictment was made public by deputy Attorney General, Rod Rosenstein, at a press conference. President Trump says the Internet Research Agency in Russia started its activities in 2014 long before he announced his bid for the presidency, and now acknowledges the Russian activities in the U.S. presidential election of 2016.

LyrArc Article Gist
House Speaker Paul Ryan endorses Donald Trump after a long period of reflection.

LyrArc Article Gist
Mr. Peter Navarro, 70, a key advisor to president Trump on trade and economic policy, is now the DPA policy coordinator.  Mr. Navarro takes on the presidential task force role of coordinating government-business cooperation with wartime powers under the Defense Production Act. Mr. Navarro says in an interview with the WSJ that he will take tough measures if necessary. Saying this is no time for delay, to hoard or price gouge, companies must move quickly or the government will clear the obstacles. "This is war. When there are bumps in the road, President Trump is going to knock them down immediately and unmercifully."  A California Economics professor Mr. Navarro warned about the virus and epidemics of this kind in a 2006 book. He now assumes this role after president Trump said about GM "always a mess," after long negotiations with GM leading to a shrinking supply of ventilators and government frustration. President Trump then used DPA powers to order GM to make ventilators and lined up 5 other manufacturers in 2 days. Navarro says he is following Trump time which he has in his office. This meaning he and the president will use the full arsenal of federal powers to get things done in record time.  ...

LyrArc Article Gist
Biden as president for 2024 and the matter of age is the subject of this report in WSJ. For too long the press has looked at president Biden's age as drawback ignoring his vast experience, and not Trump's only 3 years younger with poor food and exercise habits and overweight, as pointed out by Duke University Prof. Frank Bruni in the NYT. Here the WSJ at last shows that half of Americans born in 1942 are alive, with many of them about 650,000 working, 18% more than a decade earlier, according to Census Bureau. The saying is that 80 years is the new 60, because of advances in medicine, given healthy habits and exercise. 

LyrArc Article Gist
Krugman in the NYT cites president Trump's reference in an interview with the Economist magazine to the expression "priming the pump." Trump in that interview in May 2017 said he had come with the expression and feels good about it. "Priming the pump" is an expression used by president Franklin Roosevelt during the Depression period. During the depression and in 2009 the economic crisis needed a stimulus response and priming the pump. The economy today with lower unemployment is not the time to increase deficits with tax cuts for the wealthy, says Krugman. Only infrastructure spending with a long term return justifies increasing the deficit. He is critical of Speaker Ryan for supporting deep cuts into Medicaid for poor people, and yet supporting the tax cuts weighted more towards helping higher income people.