LyrArc Article Gist
Pierre Razoux, a French historian provides this account of the Iran-Iraq war that lasted from 1980 to 1988, at a cost of 680,000 people killed and $1.1 trillion in war destruction and money diverted from the economy. In 1980 Saddam Hussein of Iraq launched the war by attacking Iran which had just come under the Ayatollah Khomeini with the fall of the Shah of Iran in 1979. The war dragged on for 8 years with Khomeini persisting in the war. With U.S. and Saudi policy to increase production bringing the price of oil down from $30 to $10 designed to bring Iran and Iraq to the peace talks, as well as the Soviet Union to withdraw from Afghanistan, all three being major oil producers. The dollar also weakened by 37% during this period. The diplomatic isolation of the Khomeini regime made it more difficult for Iran to buy arms on credit than Iraq could, leading to the war ending with Iran finding it no longer possible to continue the human losses. The Carter administration, particularly with National Security Advisor Brzezinski, tilted towards Iraq to oppose Soviets in Afghanistan, and the Saudis also supported Iraq during the early period. Under president Reagan the U.S. began covert and direct assistance to Iraq to prevent an Iraqi defeat early in the war. Rumsfeld visited Baghdad in December 1983 and March 1984 to organize the U.S. effort to oppose Iran. This may have laid the seeds for future conflicts that lasted through the administrations of the elder and junior Bush. As Razoux points out the Revolutionary Guards became entrenched from this period in Iran's history, making it difficult for election process to work or elected governments to operate. 23 months following the end of that war in 1988 Saddam Hussein launched a war on Kuwait, leading to the U.S. led Gulf war and the entry of the U.S. into a ground combat role, which was followed by the invasion of Iraq under George Bush after 9/11 attacks. The twin wars in Afghanistan and Iraq are estimated to have cost the U.S. over 1 trillion dollars. The result today is largely the division on the ground into Shia regions under the Revolutionary Guards and the Shiite government in Baghdad, and Sunni regions led by Islamic State and autonomous Iraqi Sunni tribes, ignoring the Iran-Iraq boundaries set in the colonial period by the French and the British. In all the amount spent in the Khomeini-Saddam war of $ 1 trillion being about $2 trillion in today's money, and the $1 trillion spent by the U.S., means about $3 trillion has gone into the wars in this region. This comes at a time of deficits in government budgets in the U.S. and a deep recession in the U.S. and Europe. It also explains why the U.S. public is reluctant to take even the minor action such as giving a standoff "no-fly zone" protection to the rebels in Syria, and supported the Obama administration in its reluctance to keep even the basic military force in place to protect its diplomatic mission in Libya, where the cost would be small relative to earlier enlarged military missions under the two elder and junior Bush administrations. The result is that refugees are pouring into Europe from Syria and Libya, through Turkey. Turkey itself is host to millions of refugees in camps along its border. The vacuum and the withdrawal of the Obama administration from the region has led to the rise of Islamic State with covert assistance from Sunni regimes in the region to counteract the growing influence of Shiite Iran. It also may explain the Iranian people's support for the nuclear weapons effort through years of sanctions, leading finally to an agreement with the Obama administration that relaxes sanctions in exchange for a future possibility of acquiring nuclear weapons. Lost in the conflict is the Arab Spring of 2012-2013, with the Tunisian democracy the only surviving result of that movement for democracy and awakening among Arab peoples. The Reagan administration in its aggressive anti-Soviet position made large errors- including ignoring human rights abuses and use of chemical weapons in the Iran-Iraq war, by supporting Iraq and reversing position after Iraq's invasion of Kuwait, having a disastrous effect on the entire region decades later. Much of the Obama administration's reluctance for any action may stem from the U.S. role in this period and its consequences of protracted conflict. ...

LyrArc Article Gist
Friedman quotes the Israeli newspaper Haaretz on the intransigence of both the Palestinians under Abbas and Israelis under Likud leader Netanyahu. The Haaretz account of the currrent state of Israeli-Palestinian relations said the situation was close to where it was at the turn of the century, when it was considered a goal just to have Palestinians and Israelis sit down and talk to each other. Friedman suggests Netanyahu offer a 6 month freeze on new settlements as a way to get the Palestinians to negotiate a new peace; saying it costs Israel little as there are already 300,000 new settlers, and the prospects for a settlement make this worthwhile. He also recounts the fears of both sides. The Palestinian side sees the new settlements as sending the message that Israel wants two states, one in the pre-1967 borders and the other in the post-1967 borders, both belonging to Israel. The Israelis fear the Palestinian's covet some of the land that is now inside Israel, but was once part of the old Palestine; and have never reconciled to the co-existence of a Jewish state alongside a Palestinian state, or a Jewish people's co-existence alongside a Palestinian people....

LyrArc Article Gist
Indonesia's GDP increased by 6.5% in 2011. Analysts estimate GDP growth of about 6% in 2012. Exports are stable at about 25-26% of GDP. Consumption is about 55-56% of GDP for 2010 and 2011. Foreign direct investment increased by 20% in 2011 and reached $20 billion for investments in coal mines- to tap Indonesia's natural resources and car and consumer product factories for Indonesia's 240 million people.

LyrArc Article Gist
The interest rate Ford is paying bondholders is half of what it paid last year. This is especially significant considering Ford's high level of debt and debt payments. Ford lost its investment grade rating in May 2005.

LyrArc Article Gist
Ford announced on April 19, 2012, that it will build a $760 million plant in Hangzhou, China. This follows an announcement for $600 million expansion of a plant in Chongqing. Ford forecasts the Chinese market will grow at 5% annual rate for the next 10 years. It is planning to take sales away from other manufacturers by offering an expanded product lineup. Ford was slow to enter the Chinese market and has only 2% market share in China. The expansions will give Ford an annual capacity of 1.2 million cars in 2015, up from 450,000 in 2011. Ford's Chongqing operations are located far inland and a long distance from the west coast of China, which will make it more difficult to export if it turns out that there is too much car capacity in China.

LyrArc Article Gist
NHK polls of March 7-9, show the Abe administration retaining popular support with 51% in favor. On the sensitive issue of reinterpreting the constitution to allow "collective self-defense" 43% say they are not sure, only 17% support and 33% oppose, showing foreign policy needs to be guided towards reducing regional tensions as Japan improves its economic performance.

LyrArc Article Gist
Doug Parker, CEO of US Airways, will lead the new management team after the merger with American Airlines (AMR). He completed an earlier merger with America West.

LyrArc Article Gist
How Hyundai has hired a leading marketer with a record of helping the likes of VW and Apple build their brand image. Hyundai inventory is building up and its falling way short of selling 700,000 cars in North America by 2010, it sold 455,000 cars last year. Wilhite had earned a reputation by being Apple Computer s topmarketer and has also headed Nissan's global marketing. Before that he helped give VW a revival in the US market in the 1990's. He sees the need for "a big idea" to get Hyundai off the ground. A new ad agency compared Hyundai's predicament with Galileo's persecution for presenting his theory about the earth revolving around the sun.The problem- even though J. D. Powers shows Hyundai as having surpassed Toyota in Initial Quality Study, the brand had not registered with car buyers. And in 2007 unsold Sonata cars were piling up on football field sized lots behind the Birmingham, Alabama plant of Hyundai. Sales fell 30% in 1st quarter 2007 in the US. market and matched Chrysler's situation of building cars without the buyers....

LyrArc Article Gist
Reporters at the Washington Post put together the events leading to the formation of a bloc of freshman Republicans in the U.S. House of Representatives who refused to compromise on debt ceiling and deficit reduction negotiations. The role of Cantor, McCarthy and Ryan in these events.

LyrArc Article Gist
The German Statistical Office reported that GDP growth in Germany was 0.1% in the second quarter of 2011. This compares with GDP growth of 1.3% in the first quarter. This is slower than Italy which came in at 0.3% for the second quarter. France had no growth in the second quarter. The German Statistical Office said the causes were: lower household consumption and construction investment, imports rising faster than exports and a buildup of inventories. Analysts at Commerzbank say the warm spring resulted in construction activity starting earlier and taking out some of the growth in the second quarter, in its absence the growth would be 0.4% for the second quarter. The statistics office said an additional 553,000 persons were added to employment compared to the prior year, with a total of 41 million employed.

LyrArc Article Gist
Toyota makes a sharp rebound after the recall and the tsunami in Japan. Still Takahiko Ijichi, senior managing officer, strikes a note of caution. He says "the latest numbers are not necessarily reflective of our true strength." Toyota has to contend with the slowdown in China, the problems in Europe, and the strong yen in coming months.