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This editorial Board opinion piece in the WSJ gives exceptional insights into major issues facing Germany, the cost of electricity generated from renewables, failure to meet climate change emissions targets set by the government, and the difficulty of forming a new coalition government with conflicting goals of the Greens vs the CDU and the FDP.  By one estimate it cost households and business about $125 billion extra in higher electricity bills for 2000-2015 to subsidize renewable energy from solar and wind. Utilities are required to buy renewable at above market rates, especially since the energy revolution called Energiewende was launched by chancellor Merkel in 2010. German electricity prices are about 36 cents per kilowatt hour compared to 13 cents in America. The 2011 decision following the Fukushima disaster to phase out nuclear power by 2022 made the effort to meet renewables targets of 40% by 2020 compared to 1990 -exceeding the 20% for the EU- even harder. Germany sees a 30% target for 2020 as reachable.   Even though renewables can generate 50% of required energy supplies, only 30% of the supplies are utilized as the renewables are generated mostly in the north of the country and there is a lack of transmission lines to bring it to the industrial south. The dirty secret says the WSJ editorial board for the renewable story in Germany is that a lot of coal is used in dirty coal plants to meet electricity needs when wind and solar energy are not available. Cheaper coal not natural gas is preferred for such generation as daytime peak use that recoups more expensive gas cost is managed with renewables. Leading to the situation that Germany generates only 9% of energy from natural gas compared to 30% in the U.S.. The further Germany has gone in renewables has also led to the paradox of increased dependence on coal. Getting to the new Jamaica coalition being planned between the CDU and the FDP and the Greens. The problem is that the Greens want to see the 20 most polluting coal plants closed, the CDU and the FDP are willing to close only ten coal polluting plants. The WSJ's opinion is that voters chose the AfD right wing party with 13% of the vote because of the platform promise to shut down Merkel's Energiewende policy.   ...

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US unemployment rate was at about 3.7% for the third quarter 2022 and 263,000 jobs were added in November according to the Labor Department. Other estimates show that these numbers could be overstated by 500,000 for the year and likely to be revised. There is a shortage of labour after the pandemic and the labor participation rate is lower than before the pandemic. The Fed chairman Jay Powell discussed the strong labor market and his plan to attack inflation with rising housing, food, energy costs coupled with wage increases using Fed policy of raising interest rates. Rates could go up to 4.5% with another 0.75 % increase in December 2022.  Powell said in response to questions at the Brookings Institution last week that he was feeling his way through this inflation episode that was very different from previous bouts of inflation having started with supply chain issues that stemmed from the pandemic. It then became widespread with fears that it could get entrenched if a sharp stand is not taken by the Fed. Powell also says that he is acutely aware that he wanted to pause and see the effects of interest rate increases so that there is no overreaching that would hurt the lower income groups. He emphasized that lack of aggressive action by the Fed could let inflation go on for 4 or 5 years hurting these lower income groups the most because the wage increases would be more than wiped out by inflation. Finding the right balance is important to Powell as he looks to manage the risks on both sides of this issue- to hit inflation hard without hurting the lower income groups of society. ...

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US policy is to end war as soon as nuclear threat is over- DJT on Iran war on March 31 2026. When the US feels Iran 'won't be able to come up with a nuclear weapon, then we'll leave,' says DJT. US is self sufficient and exports oil to Europe. It doesn't need Iranian oil. DJT makes that clear to allies in Europe who have not taken a stand in the war and limited access to their airbases, saying as Starmer did yesterday that Britain did not want to expand the war. Really, the US does not want to expand the war. DJT's MAGA base does not want this war, and Biden's base does not want this war. US does not need Straits of Hormuz- it is Britain, Italy and EU countries, mainly China, Japan, South Korea that need the Straits of Hormuz. Speaking for the US DJT tells these countries in Europe to get the oil themselves in the Straits. He also tells China to get the oil from the Straits- if they need it and are so complacent as to get 90% of their imports from Hormuz after 40 years of disruptions and wars, as China does. DJT said- "If France or some other country wants to get oil or gas, they'll go up through the Hormuz Strait, they'll go right up there, and they'll be able to fend for themselves. What happens with the strait we're not going to have anything to do with, because these countries, China, China will go up and they'll fuel up their beautiful ships... and they'll take care of themselves. There's no reason for us to do it." "The USA won't be there to help you anymore, just like you weren't there for us. Iran has been, essentially, decimated. The hard part is done. Go get your own oil!" ...

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This report by Jia Lynn Yang in NYT covers only the Coolidge period and the JFK period ignoring the wider trend since the 1850's when immigration from Asia to the US was discouraged. The laws limiting Japanese, Chinese and Indian immigrants were put in place long before 1924 by the 1890's. Japan agreed to limit immigration to the US under an agreement with the US after 1900. China was undergoing a transition under the Boxer Rebellion and upheaval in government in the period after 1900, India was part of Britain's colonial Empire.It does not mention that Chinese laborers helped do the dangerous work to build the railroads east to west. It also ignores the immigration from Mexico which was a special case in immigration because of Mexico's relationship along the border, first with the Mexican American War that achieved Jefferson's idea of a continental nation coast to coast. Mexico was a source of labor for US agriculture in the 1930's and 1940's when Asian immigration was severely constrained. When Gen. Eisenhower won the election in 1952 immigration policy was on the agenda, in fact Truman had a commission look at it by 1950. Operation Wetback was launched by Eisenhower and returned millions of Mexican migrants back to Mexico. Fearing the lack of farm help for Mexican agriculture Mexican agricultural interests supported the return of migrants. All this is left out by Lynn Yang. For almost a century Asian immigration was discouraged till JFK with experience in Asia during the war looked at Asian immigration to US differently passing new legislation to support this in the JFK/LBJ terms as president. In this sense the operations under DJT at the Border  and in the US in 2025-2026 are similar to what happened under Operation Wetback under a popular president Eisenhower, after the surge in Mexican migration adding millions of migrants to the US population in the 1930's and 1940's. A greater glimpse of the US can only be imagined if after the early immigration and discovery of the continent by the Spanish, the French and the British by 1600, the continent had not been unified first by the war of 1756-1763 with the French and Indian Wars creating the original 13 British colonies before the War of Independence in 1776, and the expansion to Spanish/Mexican territory to the West and South including California, Texas and Florida in the Mexican American War of 1846-48. In that situation there would be five sectors in America- British, Spanish, French, Mexican and American. The US could not have advanced as an industrial power divided in this way and would not have attracted immigrants from Europe the away it did. If it was split into two Southern confederacy and Northern Union states it would also have led to a similar situation. There would be conflict. It is only divine intervention and the courage and ideas of Jefferson and Washington, the work of president Polk, the leadership of Lincoln, and the industrial revolution on a large scale of one Nation in peace for most of the 19th century, that it became a haven for immigrants from a troubled Europe, a struggling Asia and Mexico. ...

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China sees a principal peacemaker role for Ukraine peace settlement with its economic benefits in US/EU trade as foreign policy. NYT's David Sanger reports from the G-7 meetings in Italy in June 2024. He says the G7 sentiment is changing about China in the last few months of 2024 compared to 2023. In 2023 China was seen as a nation that had more in common with the US than Russia considering historical differences between the two nations. As the US veered round to the view China's indirect economic support and its technology was helping Russia in escalating attacks on Kharkiv and the border regions of Ukraine, Europeans were skeptical. No longer, the Europeans now see China's relationship with Russia in the same way. Another change observed is that China is not pursuing a peace settlement participation to end the war by not joining a Swiss effort. Instead says Sanger China is seen as wanting to wait so that at some future date it would be the principal actor in bringing all parties to a peace settlement for Ukraine. With Ukraine facing escalating attacks in the Kharkiv region the mood has changed and China is now seen differently from just a year back. This as shown in the adjoining article in NYT on student exchange for US and China and China's view that racism exists towards Chinese students in the US is affecting the effort for closer understanding between the people's of the two nations sought by the two nations since 1972, and in the interwar period with Gen. Joe Stilwell fighting the Imperial Japanese Army alongside the Chinese people. ...

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U.S. Federal Reserve chairman Ben Bernanke tells the House Financial Services Committee hearings that the Fed will give importance to underemployment, not just the unemployment rate, in making decisions about bond purchases. The unemployment rate could be a false indicator of the labor market if the rate falls below the Fed's goal of 6.5% before raising interest rates, and yet labor markets are still weak because of underemployment. Bernanke said: "There are a number of problems with the labor market. Unemployment is one problem, but long term unemployment and underemployment- and by 'underemployment,' I mean people either who are working fewer hours than they would like or possibly working at jobs well below their skill level- is also indicative of a weak labor market." In this situation of high underemployment combined with low inflation the Fed may hold off on raising interest rates when the unemployment rate reach 6.5%. In Bernanke's words: Reaching 6.5% unemployment "would not automatically result in an increase in the federal funds rate target." Since 2010 financial markets in the U.S., and to a lesser extent worldwide, have looked to U.S. Fed policy for raising interest rates, as guidance on the degree of support for the economy and by extension for markets....

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China's total public debt was 95% of GDP in 2022, Japan's was 62% in 1991. It's population aging faster than Japan's with population declining in 2022, Japan's declining in 2008 twenty years after its bubble burst. China's per capita income at $12,850 in 2022, compared to Japan's at $29,000 in 1991. China is facing more difficult headwinds than Japan in many ways. There is also higher tension in trade relations with US and EU limiting export growth. There is also the policy stance of the Communist Party that sees rural areas left behind with about 35% people in rural areas and Xi is slowing growth to reduce disparities and housing construction led speculative growth. In Japan urbanization was 77% in 1991, compared to 65% in China today. 

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Three regional Fed bank presidents have expressed skepticism of the Fed plan to buy medium to long term Treasury bonds- they are Kocherlakota of Minneapolis Fed, Richard Fisher of the Dallas Fed, and Plosser of the Philadelphia Fed. There are 12 regional Fed banks, and five voting seats on the Federal Open Market Committee rotate for the 12 Fed bank presidents. Opposition to Bernanke will increase as these presidents take voting positions in the Fed Open Market Committee. The Wall Street Journal reports that there is deep skepticism about Bernanke's plan among some of his colleagues. Thomas Hoenig of the Kansas City Fed says that more expansive monetary policy was "a bargain with the devil." The Fed's plan is to take a measured approach with U.S. Treasury bond purchases with maturities between 2 and 10 years. A WSJ survey of private sector economists in October 2010 found that the Fed is expected to purchase about $250 billion of Treasury bonds each quarter, and continue till mid 2011, amounting to $750 billion in all. By pushing down Treasury yields the Fed hopes to have an impact on the federal funds rate of one-half to three-quarter percentage point impact for $500 billon of bond purchases, says Dudley, President of the New York Fed. Treasury yields on the 10 year note have fallen from 4% in April to 2.6% partly in anticipation of Fed's action. The previous Fed intervention in March 2009 was a program to buy $1.75 trillion of Treasury and mortgage bonds over 6-9 months. This time the approach will be careful and measured based on results, according to the Fed. Alan Blinder, former vice chairman of the Fed, says this is the tool less preferred and of unknown effectiveness, as fiscal tools would be the preferred choice. The deficit concerns, he says, have restricted the preferred option....

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The U.S. Federal Reserve Open Market Commitee takes a position of pause and wait as it decides in March 2012 not to take any new further bond buying stimulus measures. There is uncertainty in equity markets about the effect this will have on equity prices. During the last two pauses in 2010 and 2011 the equity markets experienced downturns after withdrawal of bond buying measures by the Fed, leading to Fed action with QE 1 and QE 2 followed by a surge in equity prices and the S&P at over 1400. At the peak during the 2001 and 2008 dot-com and housing propelled booms the S&P reached over 1500. At this rate the curve for U.S. equity prices for the 2008-2012 period resembles a repeat of a narrow steep V shaped curve with only a 7% climb in April 2012 needed to reach the 1500 point in the S&P 500 average at which the previous two booms in prices ended up in a bust. John Taylor, Stanford economist, in a separate op-ed in the Wall Street Journal on March 29, 2012, called for a change in the mandate of the U.S. Federal Reserve for a more rule based policy because of the dangers of repeated boom and bust periods in the U.S. economy as a result of ultra loose monetary policies. The problem at this point in April 2012 is that profits of companies are not expected by analysts to come in strongly in the second quarter, with a slightly improving unemployment picture, expected upward pressures on oil prices from the Iranian situation, eurozone debt problems in Spain and Italy, and slowing growth in China, India and Brazil. These fundamentals do not support an S&P at the levels seen during the height of the last two booms of 2000-2001 and 2007-2008....

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The WSJ Editorial Board speaking for the business community traditional Republican groups finally takes up the election on issues of policy difference between Trump run Republican party and Harris run Democratic Party which it should have from Day One. The former president says something that has never happened in the last hundred years- policy will be decided after the election depending on what he decides to do. Cost of Living action is No 1 on voter priorities. "Drill, Baby Drill," is the whole Republican party platform for cost of living action. What is the Harris Democrats policy plan for cost of living action? WSJ says it is spending blowouts that caused inflation, the Green New Deal, entitlement expansions and student loan forgiveness.The real reason for the increase in cost of living comes from the overconcentration of supply chain by American business in China, on which every president Bush, Obama, Trump, did little or nothing. The lack of an effective vaccination program and ineffective vaccines in China by 2021 and 2022 led to the loss of the supplies from China leading to shortages for automobiles parts and other supplies and surge in prices in 2021-2023. Powell and the US central bank correctly raised rates but cautiously and waited for this to correct, president Biden brought manufacturing home through huge investments called the "spending blowout" that brought down the inflation from 9% to 3%. Some of that "spending blowout" went to chips and science to correct the errors of American Business and Reagan-Friedman theory of the Republican party that created this problem with a culture of utter  indifference to the ultimate costs of who makes what and where. The Inflation Reduction Act also tackled higher health and other costs paid by American workers and families, and invested in public services and in repairing the dilapidated crumbling American infrastructure. Are Republicans saying let the roads, bridges, airports, built in the 1940-1960's heyday of American industrialization as China and India's is now, let them crumble? What do the educated minds of the WSJ Board say about coal in China and India and their effects on their massive use multiple times that of US and EU in history, is it not damaging to the environment and why the Chinese realized the health in North China with coal winter use was worse than in South China cut their coal use. Are they saying lets burn fossil fuels and ignore, and if investment has to be made in solar who is going to do it? Is it Ok for Republicans thet we just import from China all our solar panels indefinitely into the future. "Green New Deal" is just a perjorative term, policy has to be made thoughtfully and without prejudice or bias of any sort for the best that we can do for the American people, ignoring so called "right" or "left." Doing what is right, what makes sense, is a lot harder.     ...

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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.

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Decriminalizing hard drugs led to all sorts of problems in Portland Oregon and citizens feeling unsafe with and increase in homelessness and increase in drug activity. Mike Baker talks to Portland Mayor Ted Wheeler about how a Proposition Measure 110 in 2020 decriminalized drugs with three fourths of Portland supporting it. Not anymore as most people still feel unsafe. Governor Gina Kotek has reimposed criminal penalties for possession of drugs. And Wheeler now supports expanding the police force. It is a three year experiment that went wrong also creating a sense that there a personal safety problem for ordinary residents of the city. The lack of behavioural facilities to help people affected added to the problem. This has lessons for all parts of the country, Wheeler also says the politics also went awry. Safe streets, safe neighborhoods is part of the infrastructure that America is building across the country under the Biden administration, safety and ease of living are what infrastructure and rebuilding America is about. And the perception of the need for good law enforcement and safe neighborhoods, safe transportation is now embraced across America. ...

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DW.com report by Mu Ciu shows a CATL(Contemporary Amperex Technology) plant in Arnstadt, Thuringia, in eastern Germany. It will not bridge Germany's technology gap. German and US consultants at the microeconomic level of the company and German and US economists at the macroeconomic level of the economy entirely fail to grasp the effectiveness of China's investment driven model. Of its joint partnering with European and American companies and China's single minded focus on technology access. This is why the DJT US administration has warned Europe that it is failing economically. China's macroeconomic and microeconomic model are run by the same authority by the state, and according to goals and plans (which in a socialist economy is weak at the microeconomic company level lacking the initiative and freedom of action). By combining its macreconomic framework run by the state with a micreconomic company level run by the state but on free market lines the Chinese investment driven model has dual advantages and operates at a speed that far surpasses the German and American model. It's society suffers as a consequence, but in few short decades 1990-2009/2020 this is all it could accomplish with a single focus on modernization for what was once a peasant agricultural economy. Where it lacks is in future technology access and as long as weak companies in the US and Germany partner with Chinese companies the technology access for Chinese companies give it the essential ingredient for its investment model to work, as American and European companies can waver in investment Chinese companies backed by the government will not waver in investment and have the clear advantage. DJT's approach is to give a big shock to the entire system of world trade now run by China, so that this is no longer going to work at the macroeconomic level and legislate huge investment incentives for one time depreciation and other moves to get American companies to invest. It wants Europe to do the same, including getting rid of the bureaucratic structures and regulations. German Chancellor Merz is getting the message and is acting quickly first with the trillion dollar investment plan, the meetings with Draghi and Meloni to get Italy and like minded nations on board, and internal efforts to get rid of regulations and bureaucratic structures, and building a new partnership with India to remove an error of Merkel/ Clinton+ Obama in excessive concentration and dependence on China. This requires a steady hand and steady governments, steady policy, and companies in America, Europe and India to work together for the long haul without wavering or delay, to rebuild the world economy along new lines and on a new path. ...

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Alan Blinder points out that the political partisanship that has emerged in 2010 has not served America well, as it has deprived the government of the fiscal policy tools, which would be more effective than the Fed's only mildly effective tool of buying $100 billion a month of medium and long term Treasury debt. The country he says is tied up in partisan knots that prevents the use of the fiscal policy tools, and leaves the Fed with the choice of doing something only nudging the rates on government and private securites a bit (by 30 basis points for Treasury debt and 15 basis points for private securities as an example, not enough for more than a mild impact on corporate spending). The fiscal policy tools are he says of a wide variety and pack a lot more power, and he cites three as examples: offering significant lasting tax breaks for job creation, large enough to produce results (larger and long term than the HIRE program), government hiring directly onto public payrolls and government paying local and state governments for hiring at the local levels, the government offering to compensate states for a cut in the sales tax for a year to stimulate consumer spending. Would'nt this raise the deficit though? Blinder points out that the deficit problem lies in the future. Right now there is so much slack in the economy, that public spending will not crowd out private spending. And with Treasury rates at an all time low, Treasury can finance the larger deficit in the short term. A depreciation of the dollar or inflation, he says, is not a worry, because now there is worry about deflation, and the USA needs a lower dollar to push exports up and rebalance its economy. This does not slight the deficit issue and the culture of poor budgeting among both parties, as Reagan Budget Director David Stockman pointed out in an op-ed piece, but accomodates the real dangers and opportunities of difficult policy choices. This is why he laments the advertising campaign and public relations campaign against the 2009 stimulus bill, and the expected paralysis of fiscal policy from the extremely partisan 2010 midterm elections, and public opinion consumed by fear of deficits. Leaving the Fed with the unenviable choice of using only mildly effective tools. Other experts and columnists mention the risks associated with the Fed's large scale purchase of securities, if this leads to another asset bubble and subsequent collapse, and another bailout needed for financial institutions. Peter Eavis in one column in the WSJ points to the lack of effectiveness of the first round of quantitative easing of $1.7 trillion. And Kelly Evans, in the WSJ, points to the risks of "bad" inflation, if another round of quantitative easing by the Fed leads to increases in the price of commodities such as oil and food (such inflation falling heaviest on lower income households).The US Financial Regulatory Reform bill has received low grades, and recent standards for reserve capital in worldwide banking reforms are stretched out over a long period, leaving fragility in the economic system, if something were to go wrong....

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Of 20 pictures of Shinzo Abe shown in this photo gallery in the WSJ the ones by Kashiyama of Abe on his knees at Iwo Jima recovering remains from the battle in World War II, and by Numata of a safety drill with children in Chiba perfecture where he is seen seated on the ground peeking through metal bars with children, are a must see. Shinzo Abe who led Japan through the 2000-2020 period came from a politically privileged family, but went much beyond that- building relationships with leaders such as Narendra Modi in India and nurturing the India relationship in an act of immense foresight, encouraging an independent minded policy yet working with the US, and defending Japan's position in Asia yet continuing to foster the trade relationship with China and seeking better relations with Russia.  Leaders of US, EU, Germany, France, India, Russia and China, personally felt the loss of Abe in the words they chose to describe the loss. India declared a day of national mourning, showing how far Abe had carried Japan's relationship with India and the number of visits he made to India. ...

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A warning from Britain about tax cuts and not investing in the US economy that could put the US in the same bad shape as Britain under the Tories with Trump/Vance tax cuts and high tariffs stifling the economy. Krugman, with his long experience in studying economic policy of governments,  says the unforced error for Britain was not even Brexit as much as it was the austerity policies put forward by Cameron and his finance minister Osborne in 2010. What it did was to push austerity policies when the right move would have been to invest in the economy and in public services. In 2010 he says the Greece crisis and eurozone debt crisis led to Britain adopting austerity when it was in a different situation. Britain's debt was in its own currency and at home. The British economy was just recovering from the 2009 banking crisis which meant that economic capacity was underutilized and more people needed to be employed. In this situation Britain instead of Cameron/Osborne austerity that starved public services and investment in infrastructure, jobs, needed to invest in public services. A decade and half later this has put Britain in a bad place with a weak economy and dilapidated public services. Britain lacks the courage and right policy of the Biden administration in investing in the economy with support from Congress, so that even Labour is not in a position to soon reverse the effects of this austerity policy. ...

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Indian finance minister Nirmala Sitharaman meets IMF managing director Kristalina Georgieva to discuss impact of the geopolitical situation on world growth especially oil prices. Sitharaman said India was pursuing a policy of strong federal spending with capital expenditures increasing by 35% for fiscal 2022-23 to continue a public investment led recovery, raising capital expenditures from 5.5 lakh crore rupees to 7.5 lakh crore rupees. Indian GDP growth is now expected at 8-8.5%, the highest of large economies. Sitharaman also met with Indonesian finance minister Sri Mulyani Indrawati on the sidelines of G-20 Finance Ministers and Central Bank Governors meeting and discussed the current global situation.

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Yoon suk-yeol the prosecutor who decided to run in 2021 for the first time in politics, won the recent presidential election in South Korea. He talks to the WSJ in this interview report and outlines the policies of his administration.  Yoon say she sees upholding the constitution which embodies values of  liberal democracy and market economy as the deciding factors for foreign and domestic policy. He wants to build closer ties to the US and Japan. He will resume defense exercizes with the US that were suspended during the Trump administration. On China he sees continued economic relations as a trading partner, but sees flip flopping in foreign policy as creating risks for the Indo-Pacific region. If invited to join the Quad Yoon says South Korea  "will positively review joining." On domestic policy he says his goal is "to correct and normalize so that the market can operate as it should." Yoon led the prosecution in efforts against prior presidents and Samsung, and his known for his forthright approach. Yoon wants to see more foreign investment and says he will ensure that there is no discrimination against foreign companies, including eliminating unnecessary regulation. ...

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The Guardian in its Editorial on Keir Starmer on February 10, 2026, says Labour was in the political wilderness for 18 years, and yet it has taken only 14 months for the project which put it into power to implode. It is referring to the project of McSweeney from County Cork, Ireland, and others to put a centrist to replace Corbyn, and selecting Keir Starmer. This was a weakness from the start as a candidate has to emerge on his own merits not be put in place by handlers like McSweeney, as he would not be able to govern on his own thinking and make his own decisions.  McSweeney was a campaign organizer and not successful at that as portrayed as Labour could have taken more than the 34% of the vote it received after 18 years of Tory rule without the likes of McSweeney. The Guardian says "excessive power and influence" was given by Starmer to McSweeney, and that the outsourcing of Britain's direction served neither the prime minister or the country well.  This is aserious flaw. McSweeney did not have the long experience of advisers that backed up Biden in the White House. And even the long experience of Biden group of advisers failed Biden when it came to immigration policy and the Border. And yet the question remains why was there such a lack in the talent pool for good governance for Labour, as it was for the Conservatives, for 3 decades since the 1990's? Similar to the situation with Bush-Clinton-Bush-Obama governance in the US, why is there not a good talent pool for effective governance in the UK and the US? The Guardian goes on to question the judgement of Starmer and the clique around him including McSweeney for their attitude towards helping the working class in support payments during a cost of living crisis- what it calls a contempt filled approach of the cliques to the normal priorities of a Labour party. The Editorial concludes that Labour has lost control of the trajectory of events- as more Mandelson emails are expected- and that it is hard to see how this trust can be won back. For Britain having 5 prime ministers over 4 years is a shocking lack of the talent, of confidence, that once prevailed in the nation that once led the world with the Industrial Revolution, and in science and technology. ...

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Bernanke's defense of the action of the Fed's monetary policy making committee, on November 3, 2010, (with a vote of 10-1) to buy an additional $600 billion of Treasury securities over the next 8 months. His defense focusses on the prospects of deflation- how low inflation can morph into deflation (falling prices and wages), that can create a long period of economic stagnation. In addition, with low and falling inflation, Bernanke sees spare capacity in the US that can be utilized to reduce the number of jobless people. He points to the rise in stock prices and fall in long term interest rates in anticipation of the Fed's action, as evidence that this Fed move would improve financial conditions. Lower mortgage rates would make housing more affordable, higher stock prices would increase consumer wealth, confidence and spending. Spending would lead to higher incomes and profits for economic expansion, from this viewpoint. The situation in November 2010, was a deepening housing slump anticipated for 2011, gridlock after the 2010 midterm elections and no agreement on additional stimulus for 2011, the need to rebalance the global economy lacking cooperation from China (with China increasing imports and reducing exports and the US increasing exports and reducing imports). Fed's Bernanke does not mention these factors, and only hints at the gridlock towards the end of the statement. This Fed action will push the dollar lower, just as efforts to improve exports and the trade balance are underway. The Fed's committee sees the risks of commodities inflation as an acceptable risk in the current situation, and the use of a cautious approach assessing the purchase program regularly as sufficient measure of safety. As to difficulties of the unwinding of these policies, the Fed sees present danger outweighing the risks of no action. For emerging markets such as Turkey, India, Australia and other countries seeing even more inflows of capital, the risks are left to these countries to manage. The central banks of India and Australia moved to increase interest rates at the same time that the Fed made its move....

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This picture essay in The Guardian shows the 700,000 additional people displaced inside Afghanistan in 2021 in addition to the 2.9 million displaced people by 2020. The British stayed out of Afghanistan except for brief forays from concern about Russia entering close to British India. Not much happened till Zahir Shah, the King of Afghanistan was seen as not doing much for a famine that struck the country in 1972. Drought struck much of the country in 1972 leading to the deaths of over 100,000 people from starvation. The King had ruled since 1933. And for a brief period his cousin and brother-in-law Daud Khan had actually run the administration between 1953 to 1963, before being dismissed with a new constitution adopted not allowing the royal family to rule the country without consulting parliament. The poor handling of famine relief led to the fall of the government appointed by King Zahir Shah in 1972. In 1973 Daud Khan violates this constitution and assumes control of the country. British India was in 1972 the India of the Nehru period, with his daughter Indira Gandhi the democratically elected prime minister. India fought a brief war with Pakistan in 1971 that set up the new nation of Bangladesh from territory of East Bengal. India preoccupied with Bangladesh refugees did not do what the British had done to keep outside powers out of Afghanistan and maintain a stable monarchy. Daoud Khan's repression of Communist party leaders led to Communist party military factions in the army taking over the country in 1978. The Afghan military led by officers in the army's Communist factions had little support in the traditional Islamic nature of the countryside for their land reforms. Leading to a rebellion and entry of Soviet troops under a friendship treaty signed in 1978 with Soviets under Leonid Brezhnev. It is this disrupting of the stability of the Afghan monarchy or the entry of Soviets or Americans or any other foreign influence that was carefully prevented in British India by Britain's India policy, which resulted in a period of peace and stability in that region. The events of 1974 with the fall of the monarchy, and the entry of Russia in 1978 broke two of the main rules the British had observed from 1750- a stable monarchy and no outside influence in Afghanistan. A policy the British also followed for Tibet. When China entered Tibet in 1950 Nehru was too preoccupied with the millions of refugees from Pakistan and failed to prepare in the years 1947-50 for following British policy on Tibet by preparing or anticipating the entry of foreign powers. The entry of China into Tibet in October 1950 led to the Sino India border war of 1962, and led to the current situation of India facing a Chinese army all along the border of Arunachal Pradesh, Ladakh, Nepal and all the way in the Himalayas to Kashmir. The result has been billions of dollars spent by the US every week starving domestic priorities, as president Biden observed this week, and a burial place for empires. Ten years for Russia, and twenty for the US with the same result. It has left the whole region poorer and in humanitarian crisis for 50 years, and created crises for Russia, Pakistan, India, and the US. ...

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Hillary Clinton's championing of softer issues such as promoting the use of new safer clean cookstoves by hundreds of millions of women in the developing world. She persuaded top Chinese foreign policy official Dai Bingguo to put the cookstoves on the agenda for this years meeting in Beijing. In September 2010 Clinton helped setup a partnership led by the UN Foundation to give 100 million of these cookstoves to women by 2020. Smoke from poorly ventilated stoves kills about 2 million people each year, with about a quarter of the deaths in China.

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The election of her close ally Kramp-Karrenbauer to head of the CDU party, protects Merkel's position as Chancellor till her retirement in 2020. Karrrenbauer is to the right of Merkel on social issues and to the left on economic matters. She is likely to take a different view on the migration policy that has let the CDU ratings drop and produced poor election results. The move stabilizes the CDU led government. Karrenbauer will try to rebuild relations with the party's conservative wing through her conservative views on social issues.

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Mexico's GDP decreased slightly in each of the 4 quarters in 2019. GDP growth was 2.1% in 2018. Cancellation of some infrastructure projects and policy changes lead to lower private and public investment and decline in industrial production of 1.8% for 2019.  Foreign investment held steady at $33 billion and the passage of the new North American trade agreement signed by president Trump is expected to lead to better growth in 2020.

Under Mr. Obrador revision of energy contracts, and cancellation of some projects due to budget constraints, led to decline in public and private investment of 5.1% through November 2019. 

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This BBC independent review into its economic coverage by Dilnot and Blastland covered by The Guardian, shows that economics has been badly presented and mostly misunderstood in the culture and the media, leading to errors in policy that hurt workers and families in Britain and the US. Tory spending cuts in Britain have led to a lost 400 billion pounds in growth since 2010, says The Guardian citing the TUC report. Britain's GDP would be 2 trillion pounds higher today if the pre-1979 growth rate was maintained, says TUC. This editorial says about the framing of the debt and spending in the culture and media- "It is an anti-democratic bias that shuts people out of discussion about their lives and their society."