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A power outage at its Atlanta headquarters leads to cancellation of 650 Delta flights on August 8, 2016, and disruptions to its airlines reservations system. Older technology that was not updated during the airline's lean years, a problem affecting most airlines, is seen as the cause of the problem. Airline experts say that after the merger with Northwest Airlines older systems of one airline were integrated with older systems of the parent airline. This disruption follows one at Southwest Airlines and shows the need for updating the obsolete technology. Delta's hard won reputation as one  of the better airlines has suffered as a result.

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Buried in the Pew Trust study in 2017 showing that only 9% of French, 24% of British, 36% of Germans and 37% of Americans feel their children would be better off financially, is the divide between college educated and those with a high school diploma. Only one third of Americans are college graduates, and 69% of them are satisfied with the economy's condition. Of the high school diploma holders or the rest of the population, only 55% think so. This is likely to take a long time to correct, particularly with the loss of good manufacturing jobs and drop in wages in manufacturing of the last two decades,  the need for more technology and skills in the jobs environment, failing schools and families in the social environment.

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Bret Stephens in the NYT points out that the Iran Nuclear Deal did not have the support it needed to become a lasting agreement. He cites a Pew poll at the time of the deal showing 21% supporting it and 49% not supporting it. It lacked the two thirds support needed in Congress for a treaty to be passed. It was a J.C.P.O.A. or Joint Comprehensive Plan of Action not an Executive Agreement or a Treaty, says Stephens. France initially called for stronger safeguards so that the Agreement would limit the development of nuclear weapons. Only later did France and the EU come into acceptance of the deal.  Stephens points out the efforts to renegotiate the deal coming from the EU, and cites this as showing that a better deal could have been negotiated. Since the deal the conflicts in the Middle East have continued to grow, so that the constructive developments of advancing Iran's economic development and reducing the role of military conflicts were not addressed, say experts skeptical of the deal. ...

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Nearly 9-10 million Indians work in the Persian Gulf kingdoms. They are affected by the war with Iran. About 1 million have returned to India during the current war in 2026. About 2.2 million of the 9 million are from Kerala state in southern Indian coastline with cities such as Kochi and Thiruvananthapuram the capital. Of the $50 billion they send back as remittances to India Kerala gets the largest amount among the states in India. As aresult this is affecting the state economy. Many people in the Gulf are being laid off as the Gulf economies are hit by the war. Recovery will be strong in 2027 only in Saudi and UAE (Emirates), others Kuwait, Qatar, Bahrain, Oman will take much longer to recover according to some forecasts.

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Saudi East West 750 mile Pipeline from east coast fields to west coast at Yanbu port- capacity 7 million barrels a day with average 4-5 million loading each day in April 2026. About half of this goes to India and China. It is critical supply point for the Saudis now that Straits Hormuz is restricted. The UAE has pipeline to Fujairah which it seeks to double capacity by 2027 from 1.8 million barrels a day to 3.6 million barrels a day. UAE has left the OPEC cartel that limits supplies and sets prices, which makes this critical for the US to ensure oil prices remain at levels that are moderate. UAE now favors lower oil prices while the Saudis objective is to keep prices high.

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Beaverbook type media magnates from the 1900-1950's period managed events in Britain with control over newspapers in print. The wars of the 20th century had much involvement by these media magnates who could drive up passions and move Britain in different directions based on the whims and interests of the magnate, indifferent to the welfare and interests of the British people. Republicans and Democrats, patriots and well meaning citizens, need to encourage a level of literacy in the US that enables informed decisions. Lyrarc.com is about knowledge, about a form of cultural literacy that is world knowledge, that helps millions build educated and informed mindsets that shapes better lives and better societies in the spirit that George Washington and Jefferson laid the foundations for this Nation. This type of influence came to the US through Australia and Britain. It has led to Brexit in Britain and to a volatile political situation in America. America is only beginning to add up the costs and find away out of this morass with its democracy and its founders Washington and Jefferson's intent and effort protected following the long struggle with Britain in the 18th century, the Civil War fought under Lincoln that abolished the plantation system in the South, and the two Wars under Wilson and FDR that restored faith in the United States of America Washington and Jefferson created for new generations and for the World.   ...

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Attorney General Sessions says the driver of the car who drove into protesters could be prosecuted in a number of ways including for a hate crime. The protest was against a white supremacist rally in Charlottesville. A car driven by 20 year old James Alex Fields drove into protesters injuring 19 and killing one woman. The local charges being made are for hit and run, malicious wounding, and the Justice Department is conducting its own probe. The comments by Sessions contrasted with the statement blaming both sides by president Trump, which led to strong criticism in the media and by the business community.

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The pictures of a 4 year Syrian Kurds child Aylani- dead on a Turkish beach after the small boat carrying the parents and 2 children capsized on the way to the Greek island od Kos- made headlines in the media and created anguish in Europe.

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Moody's downgraded its outlook on Germany's triple-A credit rating to negative. It also shifted to negative the outlook on triple-A ratings of Netherlands. Spain's ten year bond yield went up to 7.51% on July 23, 2012 according to Tradeweb. Analysts estimate Spain needs to issue 28 billion euros of debt for the rest of 2012 to cover deficits and repay maturing debt, and 50 billion euros in short term Treasury bills. An additional 30 billion euros may be needed if tax revenues decline increasing the deficit, and to meet the needs of regional governments. In changing the outlook for Germany, Moody's emphasized the costs Germany would incur if Spain needed a full bailout and if the situation spread to Italy, including the large exposures of German banks to Italy and Spain.

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Food aid given by the Indian government to every household in need was critical in tackling the two years of the pandemic for a country with 1.2 billion people. Few realize the significance and real meaning of this in the lives of hundreds of millions of people. Here Dr. Iso shows how during the Edo period (1603-1867) in Japan 7.5 kilos of rice were given to each backstreet tenement house and the importance given to speed. In this sense the Modi government was following a practice that goes back to ancient times. This kind of social spending for food, medicine, and other social needs is a part of the common history in Asian countries and also has its history in European societies. 

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US differences with Pakistan are based on two different perspectves that are not reconcilable. Recent events and the relationship between the US and Pakistan's army chief have confirmed that this is not going to change. US sees militants and Taliban inside Pakistan as havens for the short term as the US disengages from Afghanistan, whereas Pakistan's army sees them as useful elements in Pakistan's security interests in relation to India for the long term. Whe Kayani met with Obama in Washington, he handed Obama a 13 page document showing Pakistan's strategic perspective and emphasizing the gap between short term US interests and Pakistan's long term interests. The Wikileaks cables show Kayani discussing with US officials a possible removal of President Zardari and his preferred replacement. This made Kayani, normally reticent, to rant for hours on the irreconciliable differences between the US and Pakistan with a group of Pakistani journalists. He described Pakistan as the US's "most bullied ally," and said the frames of reference of the US and Pakistan regarding regional ssecurity "can never be the same," according to news accounts. And added that "the real aim of US strategy is to de-nuclearize Pakistan." Holbrooke and Admiral Mullen had hoped to reverse "a trust deficit" between the two sides. But this has not happened. General Petraeus is taking a tougher attitude and patience is thin on both sides. According to a Kayani friend, air marshal Chaudhry, Kayani is always asking Petraeus what the strategic objectives are in Afghanistan. US officials say they have given up on changing Kayani's thinking and that Kayani has told them: "I don't trust you." Kayani's position makes sense when one looks at the strongly anti-American public in Pakistan. Pakistani military and intelligence officials say a campaign against militants inside Pakistan incites domestic terrorism and uproots local communities. And by following Pakistan's own interests and frames of reference Kayani sends signals that win esteem among the Pakistani public. Opinion polls now show the military held in higher esteem than the Zardari administration. This puts the US in a no-win situation in Afghanistan with no clear objectives for the long term. This leaves the US in a time of tight budgets stretched thin to meet the needs in other defence areas that need attention, such as modernization of forces, trouble spots such as Korea, Iran and elsewhere, and resources needed for modernization of US infrastructure and supporting new technologies and industries. The lasting solutions that will take time, careful thought and preparation would be to integrate South Asia as a whole into an economic zone, extensive infrastructure building, and bring India and Pakistan closer through diplomacy and negotiations. See the articles by Richard Haas and others on the need to redirect resources. ...

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An argument for more troops, as Max Boot of the Council of Foreign Relations vists Afghanistan at the request of General Petraeus. This is a local account, what is the larger picture. And can the problems of a failed Afghan government and the way American boots are seen as foreign occupiers be wished away? See the link to Kristof who says even the Punjabis in the Pakistan army are not welcomed in Pashtun land on both sides of the border, and there are 40 million Pashtuns.

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Senator Edward Kennedy turned a close election around with an ad in 1994 attacking Romney for job cuts. The result was a 58% to 41% defeat for Romney. In Iowa a Perry ad presses this issue saying "Mr Romney made millions buying companies and laying off workers."

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A video tour of Zhonghanhai Compound of China's leaders and DJT on the tour as guest of president Xi. See the ancient trees including two cypress trees with their trunks growing together called 'Lianli Bai.'

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The IMF commmittment to troubled European economies is large, at $320 billion, 40% of its theoretical financing capacity, and exceeds its role in the 1997 Asian financial crisis. Concern that the IMF is now helping politicians protect the eurozone. And fears that the lack of the option of devaluing currency leaves too much of the burden on cutting spending in the midst of a recession. Deficit reduction in the current situation will take years to happen.

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U.S. States faced a shortfall of $86 billion during the 2011 budget season, according to the National Conference of State Legislatures. This was after a rise in tax collections during the last year from an improving economy, and about $30 billion of tax increases passed in 2009 and 2010. States faced the end of $66 billion in federal stimulus aid, and their share of Medicaid costs are expected to go up by $16 billion in this fiscal year, according to the National Association of State Budget Officers. The political mood has shifted with worries about the deficit and fears that tax increases could make the states less attractive for employers. As a result there is a focus on spending cuts with very few tax increases. Forty six states began a new fiscal year this week after legislatures focussed on spending cuts, mostly avoided tax increases, and some states placed restrictions on the pay and benefits of public employees.

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Iraq is Iran's most promising market for gas exports. Iraq needs the gas for its power stations now that Islamic State has been decisively cleared from Iraq. Yet Iraq is having difficulty making payments to Iran for gas supplies because banks are not ready to handle the payments with the reimposed tighter U.S. sanctions and restrictions. The deputy head of media at the Electricity ministry in Iraq, Sadoun Shehan, told WSJ that transfer of money by Iraqi banks is prevented because of U.S. sanctions. U.S. sanctions were reimposed by the Trump administration after they were lifted in January 2016. The new sanctions prohibit gas exports from Iran. Iran had hoped to make the sales and also export to the European Union when sanctions were lifted. Iranian exports of gas that started in 2017 were itself delayed for 4 years by the war from Islamic State.  Iran has the second largest reserves of natural gas in the world. The Trump administration's sanctions have led to a drop of Iranian crude shipments by 29% in 3 months and added to upward pressure on oil prices to take prices to $80 a barrel. This issue has implications for India and China, particularly India as it faces both higher prices for oil and the tight restrictions in purchase of Iranian oil. ...

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India and China find a common ground to work together to maintain access to cheaper Iranian oil supplies in the face of threats from the Trump administration of sanctions on countries importing Iranian oil.

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Carney breaks down Fannie Mae's 2013 earnings figures of $84 billion to show that this is due to unusual factors- such as low interest rates that it gets to access capital from the government, and the reversal of a write-down of deferred-tax assets. $45.4 billon is from the reversal of a writedown of deferred tax assets, $14.6 billion to gains not easily repeated, and about $12 billion because Fannie was able to borrow at 2.06%. (Mortgage securities generated interest income of $22.12 billion. The mortgage guarantee business generated about $12.3 billion which is a result of the 2012 change to the bailout agreement terms) He sees Fannie's core earnings that it could keep generating at about $12 billion. The additional reserve capital requirement that it would face as a systemically important or "too big to fail" financial institution at about $100 billion, making it about 8 years for it reach the reserve capital requirement. The situation at Fannie Mae is not as rosy as the 2013 earnings figures suggest. ...

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Michas points out that the first bailout loan was made to the Papandreou Greek government without getting the opposition to agree on the terms of the loan. This has led to the opposition parties using the austerity cuts to win public support and undermine the government, making it even harder to carry through the changes and spending cuts.

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With only 8% of the world's population Latin America has a third of the world's murders. Cities such as Acapulco once a tourist resort in Mexico are now seeing 953 violent deaths out of a population of 800,000. Daily tally for Brazil, Mexico, Central America and other countries in Latin America is 400 murder deaths and yearly 145,000 dead. One in four happens in Brazil, Mexico, Columbia and Venezuela. Mexico 31,174, Brazil 63,808. In China according to the UN it was 8,634. For European Union 5,351.

 

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A new family sedan will come out of a new manufacturing plant VW has built in Chattanooga, Tennessee, in 2011. The plant will turn out a new version of the Passat to compete with the Toyota Camry and the Honda Accord. Production capacity will be 150,000 A new Beetle will also be introduced. This is the first time VW has built a car specifically designed for the U.S.. During its previous efforts in the 80's VW used European designs and transferred them to the U.S. Its plans are to sell 400,000 VW's in the U.S. by 2013. VW sold 213,000 cars in the U.S. in 2009, so this means doubling sales in 4 years. At it height VW sold 577,000 cars in 1970, but this was before the Japanese and the Koreans entered the market in a significant way, and now the potential is there for Chinese and Indian imports at the low end of the price scale. Another factor making this goal difficult to achieve is the smaller car market and lower economic growth. By 1992, sales had dropped to 49,000, after the boxier replacement to the bug- in its Rabbit and Golf models- never took off. The new Beetle's introduction in 1998 improved sales, which reached 356,000 in 2001, and then declined as a result of too few new models, declining quality and a weakening dollar. There is a feeling among VW's American dealers, that VW's European headquarters staff is not giving the US the priority it deserves. The revolving door change in CEO's for the US operations, has only reinforced this impression. Mr Browning of GM's European operations replaced Jaccoby recently. Jaccoby joined Volvo as its new CEO. Steps taken to address these issues are to revamp the Jetta model for American customer preferences, and advertising that appeals to price conscious customers with the line: "Great for the price of good." Another innovative effort is an ad strategy that tries to capture Hispanics in the US market, with ads on Spanish language television networks. A sign of how much German management is involved in the detail of the new Jetta, is the discussion at the management board level about whether the new model should have American style cup holders. This meant pushing the brake two inches forward towards the driver, a decision that was made to do so after some deliberation at the management board. This will lead to intense competition in the US market, with Asian, European and US manufacturers all vying for the same price conscious customers....

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The U.S. Department of Labor says it has evidence of "systemic compensation disparities" against women at Google in violation of federal employment laws. A regional solicitor for the Department of Labor says the government analysis shows this "discrimination against women at Google is quite extreme, even in this industry." Google's own diversity statistics show 31% of employees were women in 2014, with whites making up 59% and Asians 32%.

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China's GDP growth accelerated slightly to 6.9 percent in the 1st quarter of 2017, after five consecutive quarters of GDP growth at 6.7-6.8%, according to government data. This reflected larger use of steel in the construction industry and more mortgages issued by the state controlled banking sector. Government officials say productivity is improving helping GDP growth, with closing of less efficient manufacturing plants. Industrial production increased 7.6% in March 2017, according to the National Bureau of Statistics. The government is trying to control higher lending and reduce the backlog of bad loans at banks. Higher growth helps to reduce the bad loans at banks from the earlier period after 2008 financial crisis, improving financial stability.

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Job cuts may be in the future for Opel plants following the acquisition by PSA Peugeot. CEO Tavares is known for making efficiency gains and this may be the only way forward at Opel as PSA makes changes to the way the company is being run.