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Ben Hubbard of the NYT describes the problems created by the Russian bombing campaing in Syria for the civilian population, and the lack of any changes on the ground. Russia may soon be looking for a way out from its involvement in the region, says Hubbard, because of the costs of such an involvement over time.

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The U.S. effort to protect the sea lanes in the straits of Hormuz as the Iranian backed Houthi rebels advance into the southern port city of Aden in Yemen. This involves support of Saudi airstrikes in Yemen and control of airspace over Yemen. In Iraq the U.S. makes airstrikes to support Iranian backed Shiite militias near Tikrit. The lack of a coherent policy and years of inaction by the Obama administration in the Middle East leads the U.S. into a situation where it is drawn into airstrikes on both sides of the Middle Eastern sectarian Sunni-Shiite conflict.

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Does housing and rising oil prices combine to affect growth and by how much. Note the comments about oil prices. That cost of producing a barrel is only $25 a barrel, thats the average cost according to John Herold Inc. a research company for finding oil, developing the field,pumping it, and delivering it to storage. Oil Analytics president Fingerman thinks prices at $85 are not supported by fundamentals and prices should be $30 to $40 lower. Fadel Gheit of Oppenheimer also thinks industry fundamentals do not support prices above $60. What will this do in the long run? Will China's growth slow after the Olympics? Are alternative fuels and more fuel efficient cars, and a shift to smaller cars, and even electric cars, going to have an impact down the road in gasoline consumption. Geopolitical instability from Nigeria, Iran and most recently Kurish Iraq and Turkey has been part of the runup in oil prices, also insufficient inventory buildup for the winter season, and the generally low rates of replenishment of oil that is being consumed with new exploration. How many of these factors may reverse in the coming years? ...

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A report released by the Organization for Economic Cooperation and Development (OECD) shows growing income inequality in 34 OECD countries. OECD Secretary General, Angel Gurria says: "The social contract is starting to unravel in many countries. This study dispels the assumptions that the benefits of economic growth will automatically trickle down to the disadvantaged and that the greater inequality fosters greater social mobility. Without a comprehensive strategy for inclusive growth, income inequality will continue to rise." Countries with the largest ratios between incomes at the top and the bottom, are the United States, Turkey and Israel, roughly 14 to 1. Germany, Denmark and Sweden have ratios of 6 to 1, with their ratios up from the 1980's. Gaps in Chile and Mexico are at 25 to 1. The study covers the period from 1980 to 2008. Overall inequality went up by 25% in the U.S. from 1980. In 2008 the top ten percent in the U.S. earned $114,000, 15 times than incomes for the bottom 10%. The top 1% of Americans saw incomes go up from 1980 to 2008, increasing from 8 percent to 18 percent. The richest 1% having $1.3 million in after tax income, and the lowest 20% making $17,700. The trends have accentuated an increase at the highest end- the top 1% and top 10% of the people- and a sharp decrease for the bottom 20%, which can be grasped from the $17,700 and the $1.3 million, both at extreme ends. The study attributes the rise in inequality to a growing gap in wages for highly skilled workers as technology advances, a surge in foreign direct investment and a looser regulatory regime that reduces employee protections leading to wage premiums for financial jobs and smaller incomes for workers at the bottom. Income groups and professions and sectors that had the greatest influence in government were able during this period to get the greatest protection for incomes, and able also to maximize their incomes. Incomes in the financial sector increased dramatically in the last decade, as a result of deregulation leading to higher risk and speculative activities in the financial sector, leading to the financial crisis of 2008-2009. Financial crises further depress incomes at the lower end. Similiar income inequality trends can be seen for India and China. China has a Ginni coefficient of 0.5 according to researchers at Beijing Normal University, up from 0.3 three decades ago- a Ginni Coefficient above 0.4 is considered destabilizing. Another factor that played a part in these countries is corruption and lobbying by special interests for favored treatment of sectors or groups. Austerity measures taken in Europe and in the U.S. are likely to widen income gaps by depressing the lower end income groups, creating social unrest, especially in the absence of efforts to stimulate growth....

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U.S. officials confirm the use of Iraqi airspace by Iran to supply arms to the Assad regime in Syria. It showed the lack of U.S. leverage in Iraq as the U.S. leaves Iraq without an agreement.

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The Biblioteca Alexandrina, as a symbol of the new Egypt. This library dates back to classical antiquity. Youths formed a human cordon to protect the new library during the weeks of protests in Alexandria. The library's director, Ismail Serageldin, says the people love the library and protect it. He says the library is revising its work program to operate from now on as the focal point for the promotion of reform and civil liberties. In 2002, the library opened with a soaring structure designed by the Norwegian architectural firm Snohetta. It was funded by Unesco, the Egyptian government and other Arab countries, Mr Serageldin says the library is spreading the values of democracy, pluralism, freedom of expression, tolerance, diversity, which he is hoping is taking root in the younger generation. The library had 1.5 million visitors and 700 events in 2010. It has 4 museums, a planetarium, a children's science center, a library for the blind and 8 research institutes. It holds 1.6 million books, including a gift of 500,000 books from the Bibliotheque Nationale de France. The library has access to 50,000 electronic journals, and houses an archive of every page on the internet. We taught a lot of the kids who are demonstrating and protesting how to use the internet and how to use social media, and he is glad it has been put to good use, says the chief librarian, Sohair Wastawy. Wastawy is now dean of libraries at Illinois State University. Debate at the library has been open and and annual confernece is held by its Arab Reform Forum to promote human rights and civil society. A website is run to facilitate communication between Arab NGO's. Vartan Gregorian, a trustee of the library, who formerly headed the New York Public Library, says Serageldin has been a marvelous defendor of freedom and scientific thought....

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On February 11, 2011, the day Mubarak leaves office, Mohamed ElBaradei, has this to say in the New York Times. ElBaradei won the Nobel Peace Prize in 2005, and headed the International Atomic Energy Agency. He says the only thing to fear for Egyptians and the international community is the shadow of a repressive past. He sees the rebirth of Egypt as representing the hope of a new era in which Arab society, Muslim culture and the Middle East, are no longer seen through the lens of war and radicalism, but as contributors to the forward march of humanity, modernized by advanced science and technology, enriching society by its diversity of art and culture. To get this process started he calls for a three member presidential council with one member from the military, and a transitional government of national unity to run the country. Its first tasks would be to dissolve the Parliament, abolish the old constitution, replace it with a provisional constitution. The primary job of the new interim governmet and presidential council would be to set in motion the process to turn Egypt into a free and democratic society. The first step for that process would be drafting a democratic constitution to be put to a referendum, and preparing for free and fair presidential elections within one year....

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Stevenson and Caselli describe the mood in Buenos Aires as negotiations with hedge fund holdout bondholders fail in July 2014.

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The effects of the eurozone crisis on the everyday lives of ordinary Hungarians in Budapest. The impact is particularly severe on retirees and other people with home loans that were taken out in swiss francs or euros because of the depreciation of the Hungarian currency, the forint. There is a loss of confidence in politicians, and the government of prime minister Orban is seen as having worsened the crisis by losing international credibility and confidence . Hungary's debt is denominated mostly in euros which make repayment difficult. Yields on its bonds are over 10%.

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Russia's Sberbank is expanding in Eastern Europe by making acquisitions from Western banks withdrawing from Eastern Europe. Sberbank sees the withdrawal of banks from Austria, Portugal and other countries as an opportunity to establish a major presence in Eastern Europe. With the $800 millon deal made in 2011 acquiring Volksbank of Austria's operations in Slovakia, the Czech Republic, Hungary, Slovenia, Croatia, Ukraine, Serbia and Bosnia and Herzegovina, Sberbank is now the largest bank in Eastern Europe with $386 billion in assets. Western European banks are faced with a pullback as they work to meet higher capital reserve requirements and respond to the effects of the eurozone debt crisis. Sberbank now manages $6.9 billion in corporate and individual loans in Eastern Europe.

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The Egyptian military announced the names of a eight member Constitutional Committee. The committee will be given the task of rewriting six articles of the constitution. These articles relate to presidential term limits, judicial oversight of elections, and parts related to curbing the president's powers to amend the constitution and restrict civil liberties, including sending civilians to military tribunals. The committee is asked to come up with recommended rewriting of these articles in 10 days. Reports say the constitutional changes will then be put to a popular referendum. The committee will be led by Tareq al-Bishry, who is a retired judge and a prominent historian. Mr Bishry and a Cairo University law professor, Atef al-Bana, are thought to be followers of a modern Islamic school of thought. Other members are Sobhi Saleh, a popular member of the Muslim Brotherhood who represented Alexandria in parliament from 2005 to 2010. About the selection of the committee, Abdel Yousef, a senior official of ElBaradei's National Association for Change, says the names are a good sign from the military. See the heart rending account of Sobhi Saleh and a prison set on fire from which he makes his way out after his arrest during the protests. The account is by Nicholas Kulish in the New York Times, Feb 4, 2011....

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Lower oil prices in 2015 make it possible for president Joko Widodo of Indonesia to remove costly fuel subsidies in Jan. 2015. With the steep decline in oil prices this made it possible to lower fuel prices at the pump at the same time. The costly fuel subsidies cost Indonesia more than money spent on education and healthcare. This frees up money for other programs. In November the Widodo government fulfilled one of its election promises by sending out national "smart cards" to over 15 million poor Indonesian families, which gives them free health insurance and education related expenses for children for upto 12 years of school. Programs planned for infrastructure in 2015 include 13 new dams and long overdue upgrade to the north-south Trans Sumatra Highway. Critics point to the appointments, including for police chief and attorney general, that reflect the influence of Megawati Sukarnoputri, a former president and chairwoman of Mr. Joko's party, the Indonesian Democratic Party of Struggle, and of parties that supported Widodo. ...

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Lally Weymouth's interview with Hungary's prime minister and head of the Fidesz party, Viktor Orban. Orban has come under strong criticism from the European Union and others about his centralization of power favoring the Fidesz party. He has done this since 2010 by using his party's two thirds majority in parliament. Here he defends his policies and responds to persistent questioning about stifling his critics including the head of the central bank, and rewriting the constitution to favor the views of his party.

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John Lipsky, a deputy managing director of the IMF from the U.S., gives reasons why the U.S. should support IMF reforms that increase representation of emerging market countries in the G-20. Lipsky was at the IMF 2006-2011.