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As Japanese prime minister Noda prepares to restart the Oi nuclear plant in June 2012, former prime minister Naoto Kan, who was premier during the Fukushima nuclear disaster, answers questions in a parliamentary inquiry. He says he realized how dangerous nuclear power can be when it got to the point where the evalcuation of Tokyo was being considered, Japan was then on "the verge of national collapse." His fears were that a number of meltdowns could together " release into the air and sea many times, no, many dozens of times, many hundreds of times the radiation released by Chernobyl." The Japanese public has focussed on the parliamentary hearings because the previous inquiry is thought to have been perfunctory, and not really examined in depth all the issues the Fukushima disaster had raised, and the general feeling is that a proper public dialogue had not taken place. In contrast in Germany the issues had been discussed openly, and the Angela Merkel government which had been receptive to nuclear power reversed its stand on nuclear power. Germany is phasing out dependence on nuclear energy. Kan pointed out that the "nuclear village," the network of nuclear power companies, bureaucrats, and researchers, had hijacked national nuclear policy and was putting Japan back on the same path. He went so far as to compare it with the situation facing Gorbachev in Russia after Chernobyl: "Gorbachev said in his memoirs that the Chernobyl accident exposed the sickness of the Soviet system. The Fukushima accident did the same for Japan." In his assessment of what happened Kan said: "It is impossible to ensure safety sufficiently to prevent the risk of a national collapse. Experiencing the accident convinced me that the best way to make nuclear plants safe is not to rely on them, but rather to get rid of them."...

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In Germany's consensus based politics the term flip flop does not have the negative meaning it does in other countries. Chancellor Merkel is adept at presenting changes in policy as coming from careful thought and analysis. She has remained Chancellor for the longest period since Chancellor Kohl, doing this by co-opting the positions of other parties including the SPD. On refugees, atomic energy, same sex marraige, and other issues Merkel has adopted positions that reflect the majority of people.  As the magazine editors of Der Spiegel told Merkel in an interview she is the best chancellor the socialist SPD party ever had. Merkel has the unique ability of doing this and still sounding genuine in a way few leaders could. This may be the result of her background and life as the daughter of a pastor in East Germany who professed socialist ideals and yet was part of the opposition to the GDR regime and reflected changes in Germany as the Berlin Wall came down in 1990. Merkel joined the Democratic Awakening just as the German people in the east gave up on the communist regime. Merkel first major change was on the nuclear energy policy after the Fukushima disaster in Japan. Yet looking at it one can see that Merkel could present her change in belief as sincere. Under Merkel Germany has shifted away from nuclear energy and coal in a way no other nation has. It is now considered one of her most positive achievements in Germany. On the refugee crisis she also shifted her views on the need for enhanced security and on putting in place controls in an agreement with Turkey, addressing the causes of migration in home countries. As a result Merkel now has over 60% support in polls before this weeks election in Germany in September 2017. Contrast this with the sharp decline in support for Sarkozy and Hollande in France, Cameron and now Theresa May in Britain, and for other leaders in the U.S., and one can see how Merkel is different. It has much to do with sincerity and authenticity as a politician. Her favorite soup is potato soup, she drives a VW Golf small car, and lives modestly, shopping in the local grocery store. When it comes to protecting ordinary German people in what Germany owes in bailouts to indebted countries she could be tough with bankers and politicians. All this makes people of different political views see something valuable and to be respected in Angela Merkel, particularly at times like this. ...

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John Hills, a law professor at Indiana University and author of "The Political Centrist," says tough political exchanges are endemic to the American political system. Others say putting crosshairs on representatives in Congress like Giffords on websites or its equivalent wasn't the practice since the times of Jefferson and Adams. We looked at the letters of George Washington during the long struggle with the British and it showed composure and civility even in dire circumstances and difficulties. Criticism by Washington of the lack of help and risks he was exposed to throughout the war was worded carefully, with civility and yet conveys the great urgency. What about the letters of Jefferson and Adams who were on opposite sides of the debates of that time, a time more infused with momentous issues because of the French revolutionary tide in those years? A letter to Abigail Adams, from Washington, June 13, 1804, gives a glimpse of that relationship: "The friendship with which you honored me has ever been valued, and fully reciprocated, and altho' events have been passing which may be trying to some minds, I never believed yours to be of that kind, nor felt that my own was. Neither my estimate of your character, nor the esteem founded on that, have ever been lessened for a single moment, although doubts whether it would be acceptable may have forbidden manifestations of it. Mr Adams friendship and mine began at an earlier date. It accompanied us thro' long and important scenes. The different conclusions that we had drawn from our political reading and reflections were not permitted to lessen mutual esteem, each party being conscious they were the result of an honest conviction in the other. Like differences of opinion existing among our fellow citizens attached them to the one or the other of us, and produced a rivalship in their minds which did not exist in ours." Jefferson in this letter says that one act of Adam's gave him a moment of personal displeasure, the last appointments by Adams as President "from among my most ardent political enemies." This says Jefferson "laid me under the embarrassment of acting thro' men whose views were to defeat mine, or to encounter the odium of putting others in their places...If my respect for him did not permit me to ascribe the whole blame on the influence of others, it left something for friendship to forgive, and after brooding over it for some little time, and not alwasys resisting the expression of it, I forgave it cordially, and returned to the same state of esteem and respect for him which had long subsisted...I maintain for him and shall carry into private life an unform and high measure of respect and goodwill, and for yourself a sincere attachment."...

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The head of Italy's statistics agency Istat, Enrico Giovannini, says Italy's manufacturing sector has performed quite well, and the problem is with the services sector, in lagging sectors such as transport, communications, tourism, retail and social services. The manufacturing sector is only one sixth of the economy. He says productivity is poor and there is lack of investment in human capital and information technology for the services sector. IT's contribution to growth in Italy's labor productivity is the lowest in Europe, according to the European Investment Bank. Italy's total efficiency gains declined one half percentage point from 1995-2005. Retail and tourism sectors lack the needed productivity gains. This means actions taken by prime minister Monti to change labor laws and related changes will not be enough to generate confidence in the economy and economic growth. Giovannini says investment in human capital and productivity is badly needed, and shifting education and training to where there are new job opportunities....

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Spain will allow a European banking supervisory authority to visit banks and exercize financial supervision over banks receiving aid from the EFSF, the EU rescue fund. In addition investors including small retail investors will have to take losses to reduce the loans required to recapitalize Spanish banks.

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Sabotage of two tankers in the Persian Gulf and reports of activity of Iranian proxy forces in Iraq and Syria have led to an American response with the dispatch of a aircraft carrier and other forces to the region.  This report in the NYT says Defense Secretary Shanahan has prepared plans for deployment of American forces in the region with one plan calling for 120,000 troops to be dispatched to the region. As president Trump is against American involvement in land wars in distant places, the force is designed as a precaution in case of an Iranian attack through proxy forces in Syria or Iraq and not for a land operation. National Security Adviser Bolton has taken a strong position on Iran since the days of the Bush administration. The U.S. withdrawal from the Iran nuclear deal, the sanctions on Iranian oil, are part of a new policy of the Trump administration. The European Union countries have followed a policy of preserving the nuclear deal of 2015, even though the U.S. is pressuring EU countries. The oil sanction have led to a sharp drop in oil exports and is hurting the Iranian economy. President Rouhani of Iran says Iran may withdraw from parts of the Iran nuclear deal and the Iranian response is leading to heightened tensions in the region.  It was only recently that the Democratic party Obama administration pursued the Iranian nuclear deal with opposition from Republicans in Congress and skepticism of Israel. The election of president Trump who says the deal was a bad one has reversed U.S. policy leading to a complete change in policy and a possible confrontation with Iran. U.S. policy can veer back and forth depending on the party or president in power who completely different perceptions of the region. Obama had sharp difference with Israel and Saudi Arabia, and a different perception of Iran. Trump and Bolton see Iran as a threat to the U.S. After Iran shipped most of its nuclear fuel out of the country in 2016 in exchange for lifting of economic sanctions under president Obama's nuclear deal it would take over a year for new uranium enrichment facilities to produce the materials for a nuclear bomb, according to this report in the NYT. When the Obama administration negotiated with Iran the window had shrunk to a few months.   ...

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NATO's new guiding document and security concept now includes China for the first time as a shared security challenge. In the past there were concerns about China yet Germany and France continued economic engagement with China as before. The clearly worded statement by Xi Jinping and Putin expressing strong disapproval of a world in which the US and the EU play a prominent leadership role, made just before Russia launched its attack on Ukraine, has changed the sentiment in Europe. It is now becoming clear to Germany that the world has changed.Under Merkel Germany expanded trade ties with Russia on energy and with China as a major trading partner. The first steps are now being taken to decouple the trading relationship with China and restructure Germany's trade away from China towards other parts of the world including India, Vietnam and other Asian countries. Mr Scholz pointed to this needed shift during the Trade Fair in Hannover. As part of this shift NATO now sees cooperation with Indo-Pacific partners Australia, Japan, and South Korea and India essential for meeting the challenge of Russia today and of China over the long term. The NATO document says about China that "its stated ambitions and coercive policies, challenge our interests, security and values." Here are some of the ways the world has changed today. There are new administrations and newly elected leaders in the US, Japan, South Korea, and Germany. The new administrations are led by leaders in Japan and South Korea that are keen on working hand in hand with the US to meet the challenge from China. In the US president Biden seems determined to build up America's strength to meet any challenges China can pose. In Germany the administration is run by the SPD socialists with the Greens and the Free Democrats coalition. The Greens led by Robert Habeck and Annalena Baerbock have taken a strong position to face up to Russia's invasion in Ukraine, and Mr. Scholz is following step by step and has distanced himself from old SPD and CDU policies of  Angela Merkel of close commercial ties with Russia and China.  Indian prime minster Modi was a close partner at the G7 conference in Munich, Germany. The leaders of Japan and South Korea attended the NATO summit in Madrid and met with president Biden as shown here.   ...

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Google's Schmidt reminds newspapers that they can opt out of Google Search and Google News with a single line of simple code. Schmidt understands that the Web runs a serious risk of becoming a wasteland as reporting declines. Only a few brave reporters take up the immense burden of keeping the U.S. public informed in international crises, at important international events, and as major changes take place in different parts of Asia and Europe. Reporters in the U.S. perform similiar tasks, with fewer reporters assuming bigger responsibilities for informing the public. Newspapers in other advanced countries Germany and France face a similiar situation.

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The Russian economy has proved stronger than other emerging markets in a similar situation. The ruble has declined from 35 to the dollar before the Ukraine crisis and sanctions in 2014 to 86 to the dollar in Jan. 2016. Foreign currency reserves dropped from $600 billion to $385 billion in 2009, when Russia with memories of 1997 when the ruble collapsed, decided to prop up the ruble. In Nov. 2014 Russia's central bank let the ruble float, this time responding in a different way following western sanctions over Ukraine and a emerging markets crisis. Interest rates were increased to tackle inflation.A key rate was raised to 17% in Dec. 2014, dropping by Jan 2016 to 11%. Inflation was 12.9% in Dec. 2015, the target for 2017 is 4%. The economy has contracted by 3.7% in 2015, and expected to contract by 1% in 2016, according to the IMF. Alexsei Kudrin, former finance minister, expects modest growth in 2017.

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Samuelson points out that the golden age of bipartisan harmony never existed. Yet it is true to say that with the constant chatter on cable television and stridently expressed views, the activism of the more extreme wings of both American parties, and the role of money in politics, the partisan nature of politics in America has increased. And this is happening even when the Gallup polls from 1992 and 2010 show similiar numbers for the people who describe themselves as Conservative, Liberal or Moderate, showing that the people themselves haven't changed (42-43% Conservative, 35-36% Moderate, 17-20% Liberal), but activism at the edges of both parties has. In this condition, only 7% of americans have a "very positive view" of the Republican party, only 11% of Americans have a "very positive view" of the Democratic party and only 12% of Americans have a "very positive view" of the Tea party (even though the Tea party is at the height of its mometum). The net impact says Samuelson is that the nation's important problems get neglected. There is little discussion about the expenditure of blood and treasure in Afghanistan, says Tom Brokaw, see his article. There is little discussion of the need to rebuild America's deteriorating infrastructure. Or a serious discussion on deficits or energy. All this is lost in the dysfunctional politics of the moment. This is a significant observation....

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The European Banking Authority has lost credibility after two rounds of stress tests by the EBA failed to turn up the problems at Spanish banks that required a $125 billion recapitalization by the EU rescue fund. Now EU officials are turning to the European Central Bank as the eurozone's main banking regulator. The U.S. Federal Reserve is performing this role after the 2008 financial crisis, with the FDIC in charge of bank closures and resolution. ECB president Mari Draghi says, letting the ECB perform supervisory tasks, a decision made at the June 28 EU summit talks, is fully in line with the bank's mandate. Separate decisions will be needed for a bank resolution authority like the FDIC. The ECB will then have to hire hundreds of banking experts to make on site visits to eurozone banks and check their loan books and make independent assessments of bad loans, bank risks, and capital requirements. The important thing is an agency which is free of local and political interference to make the correct evaluations....

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Italy's prime minister, Monti, says he will submit his "irrevocable" resignation, after about 1 year in office, following the withdrawal of support from Berlusconi's People of Liberty party. He told president Giorgio Napolitano he would make an effort to pass the budget and a financial stability law to defer "the consequences of a government crisis" before turning in his resignation.

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David Brooks of the NYT describes the approach taken by British prime minister David Cameron and his Conservative Party government to help the working class poor in Britain, and tackle the social roots of poverty. He says an American adaptation similar to this is badly needed in the Republican Party, with the candidates in the election providing solutions from an old rulebook. Only after Trump's popularity with appeals to less educated older Americans has the Republican leadership responded, with Speaker Ryan helping organize a forum on poverty under the Jack Kemp Foundation- emphasis was placed on education, work, opportunity and accountability for anti-poverty programs in the discussion moderated by Ryan and Senator Tim Scott. Less attention was paid to the other social aspects mentioned here by Brooks, and cited by Cameron when he described the inadequacy of traditional solutions from the right and left of the political spectrum. Cameron outlined the principles of his anti-poverty plans called "Life Chances Strategy," in a speech on Jan. 11, 2016, in north London, with the entrie transcript on the gov.uk website. Cameron acknowledged in the speech that social issues including single parent families, and other social problems such as long term unemployment, can make it harder for some people to use self-reliance and personal responsibility in a growing economy as a way to grasp opportunities. Cameron proposes a combination of economic, social and job growth strategies. His second term plans include 30 hours a week of free childcare for 3 and 4 year olds so both parents can work, parental maternity leave, expansion of Troubled Families Program, in addition to the introduction of National Living Wage, tax cuts, universal credit. In tackling social aspects of the problem Cameron cited the need for development in the early years of childhood, the huge importance of family, social connections and experiences, informal mentors, cultural experiences, broadenend horizons, that enable young people to acquire language skills, character and resilience. Second term projects include expanding reach of high performing schools to deprived areas, emphasis on core English, math, science, history, geography Ebacc skills, a 1 billion pound investment in the National Citizens Service by 2021, a plan to transform housing estates including rebuilding from scratch, additional 1 billion pounds to provide mental health treatment including treatment within 2 weeks in homes and communities. Throughout Cameron's "Life Chances strategy" is aimed at tackling not just the material dimensions of poverty, but also what he describes is broken in Britain- "the paucity of opportunity."...

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One military expert says even if half of the Iraqi army can be put in shape it could turn the tide against the ISIS. Advice from U.S. military experts is for the Iraqi army to focus only on the ISIS and avoid hurting relations with the Sunni population. Advisers are seen as making a difference and needed also for the tribal forces. A major difficulty is that Shiite militias and advisors from Iran play a role in the forces loyal to prime minister Maliki. Following the U.S. training of the Iraqi Army at a cost of over $25 billion there was a period under prime minister Maliki when he appointed officers more for loyalty than for military skills and training. With the U.S. withdrawal the Iraqi Army languished in this situation. Reporters from NYT and WSJ have documented extensively the weakness of the Iraqi Army in commanding officers, in training and in equipment.

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Polls by Renato Mannheimer show popular support for the People of Freedom party of Mr. Berlusconi, which won 37% of the vote in 2008, is now down to 17% This comes after a series of corruption scandals. The most recent involves embezzlement of 1.7 million dollars by a politician from the Rome-Lazio regional government. New parties are being formed which are drawing increasing support. The Five Star Movement of Beppe Grillo, a former comedian, which opposes being in the eurozone and calls it a "noose" for Italy shows 18% support, according to a poll by the SWG agency. In that poll the Italy of Values party had 6% support, and the Left Ecology party 6%. Mannheimer says only one third of Italian voters are now in favor of the large established parties, indicating a big change is underway in Italian politics. The new parties are also critical of prime minister Monti's policies. This happens just as political and business leaders in Italy are calling for Monti to run for office to continue policy changes he has made to improve Italy's competitiveness and lead to economic recovery. Monti, a former EU Commissioner, was appointed as prime minister after pressure from German chancellor Merkel and the EU led to a loss of parliamentary support for Mr Berlusconi with key members of his own party defecting. After passing legislation for changes to Italian labor laws and making other shanges to improve Italy's competitiveness since taking office in November 2011, Monti is now seen in Italy, and outside Italy in EU circles, as the only person who can lead Italy out of the economic crisis; even though his reforms and austerity measures have not proved popular....

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Mark Gilbert, a visiting associate professsor of European History at the John Hopkins School for Advanced International Studies in Bologna, describes the crisis of the political culture in Italy that goes deeper than the economic crisis and has lasted for most of the post war period. Gilbert says the political parties have avoided implementing financial discipline and opening up the economy for most of the last two decades, except for brief periods, and did not take the opportunity of joining the eurozone to make serious changes. Italy has many parties with the Democratic Party having 25-30% support in the polls and Berluconi's People of Liberty (PdL) having the support of 20-25% of voters. There is also the Northern League, the Third Pole of centrist Catholic parties, the Italy of Values party, and the Ecology Freedom party. Italy lacks a national consensus on making the changes. The risk is that Monti will not have enough time to make the changes, as new elections may be held by April 2013. His government was formed as a government of technocrats led by former EU commissioner Mario Monti, after President Napolitano forced the PdL, the PD, and the Third Pole to work together to support the new government. Changes are needed in the legal system, local government, the health sector, and in the university system. One factor favoring Monti is that 90% of Italians voters are dissatisfied with the political parties, according to Italian think tank ISPI. For Italy the EU crisis has in this sense a positive aspect as it has forced Italy to come to grips with economic and cultural changes under a leadership from outside the political system....