LyrArc Article Gist
A Pew Research Center poll in September 2016 finds 81 percent of Indians have a favorable opinion of Narendra Modi in 2016, compared to 87 percent in 2015. Even among supporters of the opposition Indian National Congress a majority say they have a favorable opinion of Mr. Modi. The author of the poll, Bruce Stokes, says the opinion of frustration of the Indian elites and media about the Modi administration is not reflected in public opinion. Recently the Modi government passed legislation for a national Goods and Services Tax replacing overlapping state and federal taxes that are seen as holding up growth.  Issues the Indian public ranks high are corruption, unemployment and terrorism.

LyrArc Article Gist
A Republican move for a 3 month extension of the U.S. debt ceiling to provide time to reach a negotiated deal with Democrats.

LyrArc Article Gist
State owned shipbuilder Vietnam Shipbuilding Industry Group (Vinashin), defaulted on a $600 million loan in December 2010. Inflation is running close to 12% in December from a year earlier, and the Vietnamese currency, the dong, has lost a fifth of its value since mid- 2008. Vinashin borrowed heavily with the idea of becoming a leading shipbuilder, and nearly collapsed in mid 2010 with $4.4 billion in debts. Top executives were arrested for mismanagement of the company. Vietnam faces a problem faced by other emerging market economies in the past- it has only small foreign exchange reserves, which may be why it decided to let Vinashin default. The $14 billion the IMF reported for Vietnam as of September end 2010, is not enough to cover the short term debt of about $6-$7 billion and a wide trade deficit of $12 billion according to a credit markets strategist at UBS AG in Singapore. Experts say Vietnam has not learned from the lessons of other emerging market countries in Asia that faced a financial crisis in the 1990's. The central bank estimates credit will go up by 28% in 2010 over 2009. The government is focussed on growth, and experts are pessimistic about any changes at the coming party congress or in policies of the government. The Communist party promotes officials on the basis of their ability to hit growth targets and meet five year plans- with little regard for inflationary effects and corruption. One government official says the only thing the Communist party understands is growth and this is why little change can be expected. ...

LyrArc Article Gist
Pearlstein says the major news stories of today all are about the same theme- of how the US was encouraged to live beyond its means by trading partners who prospered as this went on, with the tacit agreement of financial and political leadership in the US who raised no alarm about this. These stories are: the G-20 meeting in South Korea with the goal of rebalancing the world economy, the President's Deficit Commission Report recommending bold steps in changing the tax and spending policies of the US, the criticism of the Fed's decision on $600 billion of quantitative easing, and the renewed concerns about Ireland where severe cuts in public spending have failed to reverse a downward slide.These trading partners prospered by lending Americans the money to consume more than they produce. It was he says a wonderful arrangement while it lasted, because it helped bring millions out of poverty in Asia, while letting Americans enjoy a transitory period of a higher standard of living. This unsustainable arrangement converted the US from world's biggest creditor nation after World War II to the world's bigggest debtor nation. He credits Geithner for coming up with a more convincing and less confrontational way to correct the imbalances by setting limits on the deficits and surpluses of trading nations. He points out that the Chinese have barely budged on the issue of an undervalued currency, the world be damned. And the German and Chinese criticism rings hollow he says, as both countries are the main beneficiaries of the current system. The normal mechanism of correcting imbalances with a floating rate exchange system is hardly relevant, as it is incompatible with state run economy and strategy of export growth of China. Erskine Bowles and Alan Simpson have presented he says a bold deficit reduction plan that is credible, fair, economically sound. Even though it was received with the usual complacency and lack of awareness both in the media and in Congress. The simple reality after all the awfully complicated details and the painful implications is this: Americans have to consume less and produce more, and trading partners have to consume more and produce less. And this shift cannot be pushed into the future as our trading partners would like....

LyrArc Article Gist
This Economist magazine editorial says the Republican plan for health care with its roll back of Medicaid expansion by limiting funding to states after 2020, and by scaling back subsidies especially for older Americans and not basing them on income levels, is likely to have its own problems just as the Affordable Care Act. One concern is that keeping healthy people in the market with a mandate that everyone have insurance is present but in a milder form with premiums going up by 30% in one year if they change their mind. There is concern that this may not work among insurers leading to an increase in premiums, pricing people out of the market in "a death spiral." This could lead to more people being priced out of the market as premiums rise. About 12 million people were added to Medicaid by increasing eligibility level to $16400, or 138% of poverty line- this reduced the uninsured from 16% in 2010 to 8.8% today. The Economist concludes that the Republican health care bill has its own problems, and that this bill does not clear up the problems in Obamacare by substituting Ryancare as the Republican bill is called. Peggy Noonan writing in the WSJ says this may have negative consequences for the new Republican base shift to populist support. Critics on the right like Rand Paul see even the reduced subsidies as an entitlement program, yet the Republicans can only change parts of the Affordable Care Act as they need 60 votes in the Senate where they only have a small majority.   ...

LyrArc Article Gist
Paul Ryan brings an inclusive stye to his job as Speaker of the U.S. House of Representatives. He has shown a sharply different approach to his predecessor Boehner who preferred to keep matters close to himself and his inner circle. Ryan has put drafting legislation into the hands of members of the House, organized meetings where moderate Republicans get to meet conservative Republicans so they can agree on common goals, shared information with Republican members on meetings with Democrats, and communicated with the media at frequent intervals to keep the public informed. The approach is welcomed by Republican members of the House after the divisions and disagreements under Boehner.

LyrArc Article Gist
U.S. House Speaker Paul Ryan, wins by 84% to his challenger's 16% of the vote in the Republican primary for his House seat of Janesville, Wisconsin. The challenger Nehlen, an executive at a water filtration company, adopted many of Trump's positions including building a wall and had the support of the group Tea Party Patriots. Trump lost to Ted Cruz in Wisconsin and lost in the 1st congressional district covering Janesville by 19 percentage points. Janesville, is a former industrial working class town that has lost many factory jobs over the years, and this election shows the trade issue is not the only issue on people's minds when they vote. That it is easy for a candidate to use it as wedge even when they do not mean what they say by outsourcing themselves, or have few real solutions- especially as public opinion in both parties is opposed to a shift of jobs overseas for the last decade. Ryan said about his win- "I'm a local guy, people know who I am, they know what I believe in and they know I mean what I say and I say what I mean and I don't do it in a mean way." Some Republican experts say Ryan's job of winning his seat very easily, protecting the congressional majority of Republicans, and dealing with Trump as the nominee, is the hardest job in politics. ...

LyrArc Article Gist
An exceptional editorial on the steps taken since bankruptcy for reviving Detroit -with all the numbers one needs to know for how this was done and is progressing. The editorial gives credit to Michigan Governor Snyder and Emergency Manager Kevyn Orr for having the courage to guide Detroit through the bankruptcy. It sees the outcome emerging, including treatment of bondholders, pension funds, and city workers, as fair considering the problems involved. The steps are also being taken to correct the deep seated problems that caused the crisis.

LyrArc Article Gist
Dionne,Jr., says the failure of the "supercommittee" to reach a deal would not be a failure at all if it leads to a flawed deal that does not generate enough revenues, such as the $300 billion in tax increases proposed by Jeb Hensarling. If the deal also makes 90% of the Bush tax cuts permanent this would make deficit reduction harder. Under such terms not reaching a deal, and having automatic reductions triggered by that outcome may be the preferred outcome, says Dionne,Jr.

LyrArc Article Gist
Drug companies spent $168 million on lobbying in 2007, up 32% from 2006, according to the Center for Public Integrity. The biggest spender is the Pharmaceutical Research and Manufacturer's Association of America which paid $23 million, a 26% rise from ayear earlier. Amgen was first among drug firms at $16.2 million, Pfizer at $13.8 million, Roche at $9 million, Sanofi-Aventis at $8.4 million, GlaxoSmithKline at $8.2 million, and Johnson & Johnson at $7.7 million. In 2006 Democrats received 31% of the industry lobbying funds, now with Democrats controlling Congress the shift is to more money given to Democrats.