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Britain has missed 400 billion pounds of growth as a result of Conservative governments spending cuts since 2010, says this TUC report cited in The Guardian. The Institute of Fiscal Studies and other reports also support this- that the income from work has fallen behind the income from owning assets in Britain- benefitting only the top 10% of households, hurting the rest and and creating a socially split and fragmented society. This has hurt Britain's economy. If the pre 1979 growth rate was maintained Britain's GDP would be 2 trillion pounds higher says this report citing the TUC. It has not improved the public finances as weaker growth means lower revenues, has weakened growth of the whole economic potential of the economy. At fault are institutions the IMF and the OECD and others that created a culture of misinformation that government spending gives only a modest spurt to growth so that austerity cuts can be prolonged with little impact on GDP. These institutions have later revised their analyses but the cultural impact of such perceptions has led to austerity cuts being accepted way of operating without thinking of the damage being done to the economy and to society. US president Biden has moved firmly to make the kind of targeted investments in infrastructure and to cut inflation that yield results and create a sense of optimism for the country. ...

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Support for the climate change bill by companies including Exxon frustrates Republicans, says this report in WSJ. Exxon CEO Darren Woods calls the climate bill "a step in the right direction." A letter signed by 38 companies including the arms of BP and Shell in the US calls for quick passage of the climate change bill. It says- "Investments in the climate change bill would reduce climate related risks across the economy while combating inflation, reducing costs for families, and improving energy security." This letter is organized by two climate oriented business groups. Republicans are now lecturing the oil companies for their response to what oil companies see as a bill that finally is tackling climate change. As one Senator puts it once you enter the cloak room of the Republican party in the Senate you enter another world that does not connect with the climate change, drought in the western US and in Europe, floods and other effects of climate change happening in the world. Oil companies see little advantage in distancing themselves from necessary climate change action and see quick passage of the bill. Oil companies also see the positives in the efforts of Mr. Manchin to negotiate provisions for boosting oil and natural gas in the interim period. ...

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European Union and at its heart Germany cut oil and gas use by 25% over a short period. The WSJ looks at one company that makes agricultural machinery such as harvester combines in Germany, and how it did this. The lesson from this experience- long dependent on cheap oil and gas supplies from Russia Germany was not expected to bounce back and cut its use sharply, when prices of Russian gas increased 20 fold. Not only did this German company slash gas use by 30% by making technical changes in how the machinery operated, and by using oil pipes, storing LNG from other countries such as Britain and Norway.  A 6% decline in sales to eastern and central Europe was offset by a 35% growth in sales in the US. By pivoting to the US German manufacturers have increased sales. The US has also become a major supplier of LNG to Europe. This makes it possible for Germany to conduct its own policies free of the kind of influence Russia exerted on Europe. So what does the CEO of German company Claas say about this experience- he says the export model is robust but in a different form with the US Europe's and Germany's biggest partner. The lesson of the past few years says CEO Bock- "Don't be dependent on one country." Not Russia, and not China. ...

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The economic effects of US and German-French sanctions on Russia ar shown here in this Guardian article by Jim O'Neill, who helped coin the term BRICS that include Russia. The sanctions are likely to make the Russian economy even less significant than its current role in the world economy.  Renewable energy development and alternative use of LNG through new super terminals will likely be speeded up with new investments in Germany and the US. The result could be even faster depreciation of oil based assets for economies dependent on oil and gas exports. This would also contribute to the COP26 pledges for accelerated response to global warming. Western oil companies will also be put in a situation where an accelerated shift to renewables is seen as connected to less dependence on outside sources and so enhancing energy security. Productivity gains and gains in technology are also dependent on good relations with the economies of Europe and the US, Japan, for the rest of the world. This leaves economies that are left out in some form or other failing to grow up to their potential, a situation that accelerates over time and could be seen clearly in the next 5-10 years. This would impact growth rates and economic development in these countries and reverse years of gains in the last two decades.     ...

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David Behre is a German paralympic sprinter who won gold in Rio de Janeiro in 2016 for relay 4 X 100 meters, silver in 100 meters, two bronzes including one in London 2012. Here DW.com looks at his first vocation that of helping other athletes using prosthetics. He brings hope and helps others who are amputees to live a normal life.  It is now 14 years since David Behre was hit by a train at a level crossing in town of Moers in west Germany, while riding his bicycle. The barrier was open. Both legs were amputated. David Behre saw aTV report about South African para runner Oscar Pistorius and he decided the wheel chair was not the end. Four months later he was able to walk again with prosthetics. Five years later he won his first medal at the Paralympic Games in London. Then Rio. Then Tokyo. These days he is busy visiting amputees in clinics and bringing new hope. He says that when he shows them his prosthetics, many amputees cry- "they are tears of joy as they can hope again." He has a little daughter and family, he works in a company that makes prosthetics. David makes this part of his life helping amputees and bringing hope into their lives the core of his life along with the rest.   ...

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The story of how Mr. Rausing of Sweden built Tetra Pak from a small Swedish packaging company. Today 500 millon Tetra Pak containers a day are sold globally, making it possible to store milk, juice for over 6 months. Mr. Rausing says he understood machinery, but not finances, and had no idea how much money he had.  Estimates run to $12 billion. In Europe Tetra Pak containers are known for storing milk, and in the U.S. for fruit juice with straws that puncture a foil seal. They are very popular in India, Latin America and Africa. Teta Pak's innovation was to devise machinery that could fill long tubes of paperboard with fluid and pinch the material into individually sealed containers, with box like shapes for easy storage. Hans Rausing studied economcs, statistics and Russian at Lund University. The Rausing brothers were patient in building up their fathers small company which was unprofitable for more than two decades. Eventually Rausing moved to Britain, to East Sussex in 1982. As a privately held company Tetra Pak was nimble and made long term bets. In 1984 it started China operations with a factory long before other companies when China was just opening up. Rausing invested in Ecolean AB in 2001.  Tetra Pak is considered one of the most important Swedish inventions of all time with a display at the British Science Museum. ...

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The story is an encouraging one as the president and bipartisan Congressmen persevered with courage and patience to invest in America. The story is told by Biden adviser Gene Sperling in the WSJ today Feb 16, 2024, and is on this page. The US federal Budget deficit rises to 6.1%  in 2025 from 5.6% in 2024, then slows to 5.2% in 2027 and 2028, going back to 6.1% in 2034. Because these projections depend on assumptions inflation, interest rates, wages, which may be different in actual numbers in future years the broad guage one can get is that the extra surge in investment of five tenths or six tenths of a percentage point of GDP help the US make the investments in an aging or crumbling infrastructure and in manufacturing, better technologies, not replaced since the 1950's or 1970's, is needed for economic growth and better living conditions for the American people. It is this investment that in trillions of dollars of spending under president Biden that has generated growth of 3.1% in the last 2 years compared to the recession in Germany, UK, France and otehr European countries. UK is the latest to fall into recession this month. Sluggish growth can also be seen in China with a bloated construction center hindering growth. The US is in abetter position after the pandemic than any other country with the exception of India. ...

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Trump has an interview with Larry King, a veteran TV personality, who made the interview for the Russian government controlled RT network. In it Trump says the war in the Middle East has cost the U.S. trillions of dollars and that we should never have gone in there. The interview was phoned in and done as a favor to Larry King, lasting 10 minutes and ending abruptly.  Trump also denied the Russians are involved in the hacking of the Democratic Party computer networks. The issues over Trump's opposition to the war in Iraq also comes up in an NBC interview. Media sources say this is not true, that initially Trump supported the U.S. going into the war, and Matt Lauer of NBC has come under criticism for not pursuing this question with Trump. It has become common for political leaders to blame the Bush administration for action since 9/11 including the war in Afghanistan, and the war over WMD in Iraq, because of the unpopularity of the wars today. Yet at the time this was not the case, and only when WMD was not proven and the war in Iraq's Anbar province dragging on did the situation change. Separately Trump in other events praised Putin as a stronger leader than president Obama. This has come under criticism from Republican party leaders. ...

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The Wyeth vs Levine ruling by the Supreme Court.

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Bank of Spain Gov. Miguel Angel Fernandez Ordonez said Spain finds itself in an "exceptional situation," as it goes "back into recession," and only exports acting to contribute to gains in GDP.

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NATO was formed in the days of the Truman administration on 25th July 1949, following the Berlin Blockade, the coup in Czechoslovakia by Soviets, and the efforts to set up pro soviet governments in Turkey and Greece. It accomplished its purpose by pushing back against the Soviet effort securing democracy in Greece and Turkey in the 1950's. Much of this was achieved under Heads of NATO from the US- Gen. Eisenhower, Gen. Ridgway, Gen. Guenther and Gern Norstad proteges of Ike all from West Point by 1964, when Brezhnev was new head of Soviet Union and by 1991 Warsaw Pact of Soviets setup in 1955 was dissolved yet NATO was not. The US interests shifted to Asia - Gen MacArthur leading a UN effort in Korea and the US leading its own effort in Vietnam in the 1960's. The Soviet threat actually receded after 1964 when Brezhnev became head of Soviet Union till 1982. During that period in the 1970's till today the face of NATO as today was from a series of heads of governments of Dutch Stikker in 1970's or other small European states such as Norway Stoltenberg and Rutte Netherlands again in 2025. It could be said that none of these leaders  of small EU countries represented US interests- or even European interests- a point the DJT administration is trying to make. It hurt the US in Venezuela as Russia propped up a regime which led to millions of refugees entering the US illegally. And it hurt Europe as Russia propped up the Syrian regime with millions of refugees entering Germany and destabilizing its political structure. Going back if a new defense institution was set up to replace NATO by the Europeans in 1970's this would have been the right step which would have not led to Russia propping up regimes in the Americas or the Middle East. A goal that is being discussed with Russia by the DJT administration to refocus American efforts in a new direction and pause not just the Ukraine war but also put the US  and Russia in a new direction with the new competition from 3 billion people in China and India. WSJ Editorial Board takes the British position on the Ukraine peace proposals with centuries old skeptical attitude on Russia's intentions. The US government position put forward by DJT is that there are constructive discussions with Russia, and the need to settle the underlying issues behind the conflict. This includes NATO's future. NATO setup in 1949 for Soviets,  on the borders of Russia in 2025 after the end of the Cold War when its rival the Warsaw Pact set up in 1955 of the Soviets was disbanded in 1991. The British position comes from centuries of conflict in Europe and its interests in protecting its Empire till the 1950's remaining unchanged, and cannot reflect American interests in the 21st century as its economy competes with China and India and the EU, and seeks to do this by keeping former colonial powers out of the Americas including Russia, and China.   ...

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The memo to U.S. president Reagan written by his economic advisors in November 1980 before his first inauguration. Inflation was running at 13% and the economic problems looked as intractable as they do today. Advisors included Milton Friedman and George Shultz. The memo called for setting steady policies for the long run to encourage investment and growth, and at the same time steady monetary policy. This is different from the repeated quantitative easing efforts by the Federal Reserve responding to financial markets, and the Obama administration's stimulus efforts that have not led to long term growth. On the long term perspective the memo said: "The need for a long-term point of view is essential to allow for the time, the coherence, and the predictability so necessary for success." The memo was released by George Shultz.

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Three NBC reporters talk to people in areas in southern France, including Cogolin, which voted in a National Front mayor. This report describes the contrast between the National Front under Jean Le Pen and his daughter, Marie Le Pen. Marie took over the party leadership in 2011, and has downplayed her father's more racist ideology, even calling her self Marine dropping her last name. About 22% of French women are expected to vote for Marine, according to Elabe polling agency. In previous elections only 12% of French women had supported Marine's father because of overt racism. Yet recent remarks by Marine about Vichy regime shootings have revived some of the old memories of the National Front among some women. High unemployment and sense of neglect has led to a search for alternatives, and the terrorist incidents in Nice and Paris have added to the momentum for the National Front that calls for tougher measures. The Republican Party candidate Fillon, now has the support of Alain Juppe of Bordeaux, and former president Sarkozy. Fillon is also advocating tougher measures, and it is not clear how many votes would shift from Fillon on the right to Le Pen.  ...

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Rosa Ines Rivera, a cook at the cafeteria for the Y.H. Chan School of Public Health, Harvard University, with 2 small children, describes the protests over the increase by Harvard administration of the premiums charged on health insurance that now take up over 10% of the income. She says she lives in public housing with her parents as she lost her apartment because she is behind on the rent, and now cannot afford to pay the increase in premiums. About 750 workers at Harvard are on strike on this issue. She says dining hall workers want the current pay of $31,193  a year increased to $35,000 to provide a living wage that helps them afford medical care, because of the high cost of living in Boston.  To get some idea of the plight of workers who provide the kind of nutritious meals that a lot of students depend on for healthy living- Rivera says she takes in about $450 a week after taxes, or about $1800, rent is $1150, which leaves $650 for herself and two children for all food, and expenses in Boston. The $4000 in premiums for health insurance would be about 330 per month, leaving her about $320 for food and living expenses with 2 children. Why the need to bring up children in poverty in America, for generation after generation, after putting in a full day of work? ...