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ECB President Trichet calls for the equivalent of "a fiscal federation" for the European Union, a broadening of powers of the European Commission when it comes to fiscal issues. He called for an independent agency housed within the European Commission, with powers to hand out sanctions on countries with poor fiscal management. Such sanction have to come early and could take the form of suspending member's voting rights in financial affairs. Such reforms would have to come through secondary legislation, and not a renegotiation of the EU treaty.

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Last week the skies over Sao Paulo, the largest city in Brazil, in the lunch hour suddenly turned dark as smoke mixed with rain clouds appeared and turned day into night. It was the result of fires blazing in the Amazon- 43,000 fires set this year alone illegally. It could be ranchers clearing land for pasture or farmers clearing land for planting. Illegal logging has also increased since the severe recession in Brazil. 

The cash strapped government is also cutting the funding of the agency that controls illegal activiites in the Amazon leading to fires and illegal logging. Brazil's president is defiant amid world criticism of his lack of concern for what is happening in the Amazon.

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WSJ on Intel CEO Lip Bu-Tan and ties to Chinese chip making since 2001 and as an investor through investment firm Walden. Senator Tom Cotton, chair of Intelligence Committee in Senate, questions ties of the new Intel CEO Lip-Bu Tan to China. DJT calls for a new CEO, saying there is no other solution that Tan should resign immediately. Under the Biden Administration and the previous CEO Pat Gelsinger the US government offered $8 billion in aid to Intel to maintain it's leadership in chip making technologies. Gelsinger was ousted by the Board last year after Intel's recovery effort was taking time and replaced with Lip-Bu Tan who was an early investor in Chinese chip makers. There are questions why the acting CEO Yeary is cited in WSJ reports to have considered offering Intel's chip making manufacturing for sale to TSMC to exit manufacturing, after the help Intel had gained of $8 billion from Biden to become the dominant maker of advanced chips in the US- recovering a position lost to TSMC when the US had invented the computer chip. Under DJT that is still the American goal under MAGA.   ...

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Did Putin overreact as he did in Georgia. On the issue of Russian speaking people in neighboring eastern European countries Putin has strong emotional reaction, as evident in the 2008 Georgian conflict. In Ukraine the issue assumes significance because of the effect of western sanctions, adverse foreign investor sentiment and the tendency of rich Russians, similiar to Argentines, to shift assets abroad. Capital flight was $75 billion in the first 6 months of 2014. Add to this adverse effect on foreign investor sentiment on an already slowing Russian economy, and growth will be seriously affected. Car sales are expected to decline by 12% in 2014, according to a trade group. The rhetoric has been toned down on Russian television. And Russian analysts now say relations with the West must be maintained. Polls by state run polling company WCIOM show 66% of the Russian public oppose Russian forces entering Ukrainian territory.

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The efforts of Syrian fighters to prevent the Assad regime from using the Abu ad Duhur base for airstrikes around Aleppo. At least 3 MIG aircraft were destroyed. The Syria Free Army fighters are young, lack training, and poorly armed compared to the artillery, tanks and aircraft used by the Assad regime. With sheer determination and using groundcover Jamal Marouf and other men of the Free Syria Army have cut the road from Aleppo to Damascus. Before the war Marouf, 37, from the village of Deir Sonbul, near Jebel al Zawiya, was a construction contractor in Lebanon. The Assad regime responds with artillery attacks on the civilian population in neighboring towns. The Lakhdar Brahimi UN-Arab League mission seems remote to these people on the ground and has made no difference to the scale and violence on civilian populations in Syria. Without the leadership provided by France and Britain in a similar struggle in Libya, and the Obama administration on the sidelines, the young people of Syria are left to fight on their own....

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What is not reported is that the US could accept a shift of some appliance production overseas, what it could not accept is the shift of its manufacturing base in industries it created in semiconductors and technology to Taiwan, China and Japan, South Korea. The economists of the previous administrations were clearly wrong, and the previous administrations did nothing but observe the slow destruction of America's industrial base. It will take 4 years of the DJT administration for the investments to be made in the US, the future administrations will continue this policy. Deng and Kellman in WSJ clearly understate the importance of the policy changes for America's Level Playing Field ALPF. It is easy to say Whirlpool and Harley Davidson won't be coming back strongly soon as the EU, Japan and South Korean makers of appliances and motorcycles will be able to absorb most or all of the 15% in tariffs. Yet it gives them a better  and level playing field to compete with foriegn makers. What is not shown here is that the tariffs will help increase investment in EU and Japanese , South Korean automakers in the US, and will increase with lighter regulation the opportunities for American automakers GM and Ford. ...

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Kozo Yamamoto joined the Finance Ministry in 1971, and is serving his sixth term as member of Japan's parliament. Since 2011 Yamamoto has convinced Abe, a colleague in parliament, about the need for reflationist policies now called Abenomics. This helped Abe make a comeback win for the prime minister's position for a second time. Yamamoto led the study group that convinced Abe of the need to delay the second increase in the consumption tax to 2017, and a 3 trillion yen stimulus package to encourage household spending, following the economy's fallback into a recession in Nov. 2014. He says it was important to not add to the headwinds the economy is facing. Yamamoto does not fall into the conservative mold of people from the Finance Ministry, as he takes tango lessons, is interested in fine pottery, and in Italian cooking. He has called bureaucrats in the ministry and central bankers "feckless" and "defiant," after years of questioning them in parliament and demanding reflationist policies. With the snap election in December 2014 the Abe led LDP is taking on the conservative Finance Ministry officials, who have insisted on sticking with the old timetable for the tax increase, regardless of the headwinds and slowing exports....

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The night of January 29, 2011, in Alexandria Egypt, as the Egyptian people of all classes of society, ordinary citizens, overcome massive police presence and tear gas. The writer directs the global emergencies program at Human Rights Watch. He saw firsthand the attacks by security forces of the Mubarak regime on unarmed protestors calling for Mubarak to step down after 30 years of autocratic rule, and the restoration of basic freedoms.

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Left party Syriza did better than the government parties in the EU elections. A new parliamentary election would have to be called if prime minister Samaras cannot find the 180 votes needed to elect a new president in Feb. 2014. Syriza is calling for writeoff of some of the massive 318.6 billion euros of debt owed, 85% of it to France, Germany and other foreign governments and IMF. To offset Syriza's popularity Samaras is likely to use the improved confidence of investors in Greece to raise funds on capital markets, and access funds from a Stability Fund. By exiting the IMF program early and not taking 12 billion euros of IMF funds due for 2015-2016, Samaras can take independent steps to revive the Greek economy and reduce the burden of cuts. Greece will run a primary budget surplus before interest payments in 2014, as it did in 2013. GDP is down about 25% and unemployment is at 26%. Anger in the early years reflected in Athens riots, is now replaced with anguish and despair among ordinary Greeks and some public suicides. The current debt repayments is for debt to be repaid to IMF in 10 years and the EU loans in 32 years, with 10 years of interest payments at 1.5%. Even then the debt is already at 178% of GDP, way above the initial target of 124% of GDP set by IMF-EU for 2020. As a backup strategy German officials including Asmussen and Schauble, and ECB's Draghi are meeting with Mr. Tsipras of Syriza to ensure a smooth transition if this becomes necessary, without the uncertainty in financial markets created by earlier Greece elections....

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Caroline Schmitt describes the situation in Scotland just before the general election. Scottish voters rejected Brexit with 62% voting "no." Here Scottish National Party manifesto is cited about the loss of 80,000 jobs in a hard "Brexit," and the sentiment in Scotland about the way Theresa May has handled the situation.

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The border crossing at Kirkenes, Norway, remains one of the few border points in the EU with Russia that are open, where visitors go back and forth between Russia and Norway. This part of Norway near the Arctic Circle was taken back by the Soviets in the war, after Nazi Germany occupied Norway. Russia let Norway run this region from that time leading to friendly relations. Norway is the only neighboring country that was never at war with Russia. Because of its location far up in the Arctic Circle it remains a unique location with Russian ships coming here. 
And 62 miles from the Norwegian coast is Russia's ballistic missile submarine fleet. Norway as part of NATO provides support to Ukraine with $7.2 billion in aid. It also is a major supplier to EU for oil and gas helping the EU after the cutoff of Russian oil and gas supplies.

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The elections in Italy in Feb. 2013 show the centre left coalition headed by Pier Luigi Bersani with 29.6% of the votes in the lower house, the centre right coalition headed by Silvio Berlusconi with 29.2% of the votes, the Five Star Movement headed by Beppe Grillo with 25.6% of the votes, and the Civic Choice headed by Mario Monti with 10.6% of the vote. In the Senate the results show the centre left coalition with 31.6% of the vote, the centre right with 30.7%, the Five Star Movement with 23.8%, and Civic Choice with 9.1%. Election rules in Italy give the party with the highest number of votes for the lower house an automatic majority of 340 of 630 seats. The vote shows voter protest over austerity measures. This benefitted both the centre right and the Five Star Movement and hurt the Civic Choice centrist party of Mario Monti which implemented austerity measures in 2012. The centre left was affected by its role in coming to the aid of Monte de Paschi bank in Siena and failing to mount a strong campaign under Bersani. A majority in both houses is needed to provide a stable coalition government which opens the prospect of new elections. The Five Star Movement emerged as the largest single party. Its support comes from young people, internet based campaigning, and a rejection of the right and left parties from the old order in Italian politics, and offers a new dimension to Italy's political future....

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Sharply lower consumer spending is hurting Apple sales in China. Apple cut sales and issued a sales warning in January 2019. This follows Apple's sharp slowdown in India with its uncompetitive pricing.

Retail sales growth in China- which bounced back in previous downturns- dropped to the lowest level in 15 years in November 2018. Auto sales are down with the sharpest drop in 7 years- the first annual drop in sales since 1990. Fears of a housing bubble have led to restrictions on home purchases for speculation which have not been lifted. Income tax reduction has not increased spending. GDP growth for the fourth quarter dropped to 6.4%.

Further signs of a sharp pullback are seen in the drop in consumption tax revenue falling by 61% in October and 71% in November 2018. The consumption tax is placed on cars, gasoline and luxury goods, and is paid by the companies making the products.

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Ban on sale of smoking products for 17 year olds (those born before 2009) in a new law for Britain. Smoking cost -64,000 deaths a year, 500,000 people living in poverty, $29 billion ocst to Britain and higher costs for the National Health Service. 5.3 million or 10% of UK adults are smokers most want to quit and wish thay never took up smoking.

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Parussini describes the different style of new RBI Governor Urjit Patel, who is no rock star economist like his predecessor Raghuram Rajan. Rajan is quoted as once saying; "My name is Raghuram Rajan and I do what I do." Rajan engaged widely with the media. At his first press conference Patel made a short statement thanking RBI staff, and turned it over to staff at RBI who talked about financial supervision, banking regulation and other issues. Patel's answers were short without follow-up questions, the whole event over in 20 minutes. Patel was chosen by the new government of prime minister Modi to run RBI in 2016.

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This WSJ Editorial Board view of the situation in eastern Ukraine in the Donbas region is that Russian forces aim to secure the whole southern region including port of Odessa and its link with global commerce. It says Russia seeks to also control Moldova, close to Romania, and would then be a threat to other NATO countries with significant Russian population. It calls for a vigorous program of military aid to Ukraine to prevent such a situation from happening before some sort of ceasefire takes place.

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Individual tax collections in the US have reached $2.6 trillion or 10.6% of the economy, the highest in its 109 year history. The surge is particularly strong in taxes outside paycheck withholding, with higher capital gains and business income tax. Short term capital gains are taxed at 41% up from 24%. Yet the huge increase is still a mystery. Higher inflation, government aid in the economy, and bringing forward income because of expectation of higher tax rates later are other factors cited in this report.

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The Obama administration has not given strong support to long delayed democratic processes in Egypt. The Washington Post cites several of the actions that have quashed Egypt's hopes of a return to normal democratic processes. The President and the Secretary of State have shied away from public support for democratic processes, free elections and freedom of expression. There is a failure to link Egyptian President Mubarak's suppression of free expression and of freely contested elections with the $1 billion annual aid to Egypt, much of it going to the military. And the Obama administration has failed to support legislation or resolutions calling for democratic processes and free elections. One of the opposition leaders is a respected diplomat El-Baradei, who headed the UN arms control agency. The US is missing an opportunity to do the right thing and make its voice heard. Not doing this only creates a credibility gap for the US in the Middle East. This comes after Obama's speech to students at the university in Cairo. In that speech he said that the tension between Muslims and Western nations "has been fed by colonialism that denied rights and opportunities to many Muslims, and a Cold War in which Muslim majority countries were often treated as proxies without regard to their own aspirations." Not only is Obama squandering the hopes and aspirations of Egyptians looking for change, but this puts the US as going along with Mubarak, an 82 year old President who will not be around for long. ...

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The 71 metre tall Leshan Buddha in August 2020 as the river Yangtse rises and the water level reaches the toes of the Buddha. This is a UNESCO heritage site and Chinese visitors light incense at the Buddha's feet.

It is carved out of the rockface of hills near Chengdu in the 8th century AD. Buddhism made its way to China and then Japan from India with Bodhidharma (Daruma in Japan) in the 6th century AD. Hsuan Tsang a Chinese Buddhist monk in Chengdu, Sichuan province made his way to Nalanda in India 627 AD to 643 AD for a 17 year trip to find the original Buddhist texts and teachings. He called India In-tu the place of the shining moon because of it being a spiritual place, and birthplace of the Buddha.

The last time the water reached the Buddha's feet was in 1949. Today after the pandemic pilgrims burn offerings at the Buddha's feet in 2020. 

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This editorial in the Wall Street Journal says faster approvals at the Food and Drug Administration have helped bring more generic drugs to market lowering prices for the public. In 20 months the Trump administration approved 1617 generic drugs, 81 a month on average or a 17% increase over the preceding 20 months. Council of Economic Advisers in October said this was a saving of $26 billion for the public.

President Trump is looking at price controls as a way to bring down drug prices. With increasing outcry about high drug prices in the U.S. the Trump administration and Democrats in Congress are looking for new approaches to bring down prices.

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The cushion of pandemic savings of US households is thinning About 35% of it is spent already and by the end of the year 65% of it will be spent, says this report in WSJ. American households accumulated $2.7 trillion by the end of 2021 in extra savings during lockdowns that restricted spending and with stimulus government aid. At the exact time when transfer payments by the US government to households stopped there was inflation lowering the purchasing power and this has resulted in some households increasing credit card balances, dipping into savings and cutting spending. This is what economists are seeing at the Fed as resistance to price increases. Estimates show the percentage of disposable income saved in the US doubling to 16% in 2020 from 8% in 2019 with lockdowns, then dropping to 3% in 2022 with extra spending, and up to 4.5% by the end of 2023. This will have the effect of putting up resistance to inflation and lowering the Fed's interest rate increases to cut inflation. ...

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This Economic Times report provides details about the  remaining aspects of the Indian Mumbai Ahmedabad bullet train project using Japanese technology. The project is being expedited with the federal and state governments completing land acquisition and covering extra costs of the project. This was one of the projects coming out of meetings and close collaboration .between Modi and Shinzo Abe of Japan. The cost estimated at 1.1 lakh crore is financed for 81% of cost by Japan's JICA through along term loan. Some of the engineering work may be completed by Indian engineering firms to reduce the cost. Delays mean the project cost will increase and some of the cost can be adjusted by doing some of the work through Indian firms under Make in India. JICA or Japan International Cooperation Agency is a government agency that provides aid for development projects and technical cooperation with other countries. It is part of the official development assistance of Japan which was $16.1 billion in 2020, according to OECD. ...

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Questions raised by analysts at the Peterson Institute for International Economics and the European Policy Center in Brussels, about the lack of leadership from Chancellor Merkel of Germany and EU leaders in addressing swiftly the crisis facing Greece and countries in southern Europe. Facing voter displeasure in Germany Merkel stalled in the hope of delaying adecision till after a regional election in Germay on May 9. In the process Merkel turned a smaller crisis in Greece into a crisis facing many countries in Europe including Spain, Portugal and Italy, and a crisis for the euro currency. French member of Parliament Juvin, told the French press: "are they waiting for the collapse of the euro?" One sticking point is that the Lisbon Treaty has no provisions for coordinating fiscal policies, and Germany did not insist earlier on oversight of Greek statistics which were generally known to be false since the 1990's. Another French member of the European Parliament, Le Grip, insisted on the need for a new European economic government, and the creation of new institutional responsibilites. The problem lies in the feeling in countries like Germany not to cede sovereignty on economic matters to a European economic body. ...

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President Biden visits the Polish town of Rzeszow close to the Polish border with Ukraine. It serves as the headquarters of the 82nd Airborne Division and Us operations to supply weapons and humanitarian aid to Ukraine. The Russian offensive met with stiff resistance and incurred high casualties in Ukraine with this WSJ report showing 40,000 casualties in the 150,000 Russian invasion force, making it less effective. 
Russia appears to have scaled down its objectives to focus on the separatist Donbass region in the east. The offensive on Kviv, Odessa and Kharkiv is stalled with stiff resistance. About 10 million people have been uprooted.  3.7 million people fled Ukraine, with 2.2 million crossing into Poland.

The US has warned that it would respond if Russia attempted to use chemical weapons. 

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Ali Gomaa, the grand mufti of Egypt, gives his ideas on Articles 2 of the 1971 Constitution (which established Islam as the religion of the state), and Article 7 of the interim Constitution (which guarantees equal citizenship before the law, regardless of religion). As head of Egypt's agency of Islamic jurisprudence, he gives his assurance to the West and to Egyptians, that the religious establishment of Egypt and he personally, is committed to tolerance and popular sovereignty that respects the rights of all citizens. He points to Egypt's tradition of a moderate and tolerant view of Islam. He says that Egypt threw out the heavy hand of authoritarian rule after many years and is not about to replace this with another type of authoritarian rule based on Islam. Islam's place in Egypt he argues, will be similiar to state churches in Denmark, and England, and similiar to Islam as the national religion in secular states like Tunisia and Jordan. The kind of Islam he sees for Egypt, in his words, is that of freedom and tolerance....