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Nigeria's Excess Crude Account is down to $5 billion from a 2007 balance in the account of $20 billion, according to Mr Aganga, the Minster of Finance. About $27.5 billion has been spent from that account to cushion the impact of the global financial crisis. But this amount of spending also fuels corruption and misallocation of resources. The Revenue Watch Institute, which focusses on financial transparency in government says this drawdown leaves not enough money in the account to meet a new shock in oil prices or an economic crisis. Mr Aganga says he has no oversight on how the money is spent when it goes to the Nigerian states. He also said that "it is not my job," to address the lack of disclosure and the lack of financial transparency. Aganga is a former Goldman Sachs executive who was appointed finance minister in April 2010. He said that $8.2 billion was spent on improving the power sector. Yet most Nigerians know that the power supply is erratic and does not provide electricity to Nigerians for weeks at a time. Most Nigerians depend on the use of small generators for electricity....

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As the Bush administration and Secretary Paulson look at Chapter 11 though acarefully arranged and orchestrated process with government support oversight and backing, Sorkin of NYT outlines how this would happen. It would clearly avoid Chapter 7 and be an orderly and organized process with warranty backing and debtor in possession financing. And echoing a lot of public sentiment on this issue Sorkin calls Wagoner's effort to say with a straight face that he still should run the company is laughable. It was his neglect of some of the important decisions that needed to be made that have created this situation and no serious changes can be made with current management and board.

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Ajami makes the point that opinions and attitudes -after the Obama efforts to improve America's standing in the Muslim world - havent changed much since the Bush days. He cites the Pew Global Attitudes Survey for 2009- In Turkey after the Obama Anakra visit favorable rating is only 14%, 69% are unreconciled. In Egypt 27% have favorable view 70% do not, in Pakistan unfavorables actally went up from 63% to 68%. He also points to the situation in Iran where the protester for the fraud in the election of Ahmadinejad did not receive much supprt from Obama, as the Obama administration decided to engage with Ahmadinejad to achieve nuclear settlement. In effect the rhetoric from Obama has not been matched with courage of convicitions , and lacks the courage to turn a new chapter by breaking from the past not just with talk but in real policy changes. And says Ajami the Arabs havve stopped listening to the rhetoric as little has been accomplished by way of change. At the same time false expectations may have been aroused because the Cairo speech was made at the University with the aging Mubarak at Obama's side, and beyond addressing these students the feeling clearly must be that the US would simply continue its policies of supporting old regimes that tolerate no dissent of any kind such as Mubarak's. ...

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Ukraine's conflict flares up again in Feb. 2014 with the flow of Russian arms and fighters into eastern Ukraine. The U.S., Germany and France call on Russia to respect an agreement made in September 2014 to end the conflict. Russian president Putin's proposal is for a new agreement that takes into account the new territory captured by the separatists, in effect creating a new conflict zone with which to influence the government in Kiev. U.S. Secretary of State Kerry says the great technology available today makes it possible to see the flow of Russian forces and arms into eastern Ukraine, refuting Russia's claims that it is not involved. Germany's Merkel and France's Hollande plan to visit Russia to discuss the crisis with Putin as the Americans consider sending arms to the Poroshenko government in Kiev. In Brussels NATO chief Stoltenberg announces the preparations for the new Rapid Response Force to counter Russia's aggressive posture in Eastern Europe.

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Automakers are also looking at small engineering changes that will help them accomplish the task of doubling fuel efficiency by 2025 to meet new U.S standards. Honda's new 2012 Civic has special coated engines to reduce friction for a 2% increase in fuel efficiency. Toyota's new 2012 Camry weighs 150 pounds less than the 2011 model. Chevy tried aerodynamic changes on the new Malibu, and lighter materials for the roof, computer controls that shut off the engine when idling,, and active air shutters for the engine compartment.

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The different approaches of presidential candidates Hollande and Sarkozy to reviving France's economy as they contest the elections on May 6, 2012. Sarkozy proposes a value added tax and has called for broadening the mandate of the European Central Bank to stimulate growth. Hollande proposes higher taxes on the wealthy, and hiring more teachers and making no cuts in the civil service. Hollande opposes the austerity measures being pushed by Germany and adopted in eurozone countries.

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It may come as a shock to the Egyptian people and freedom loving Arabs and Americans everywhere that Secretary of State Hillary Clinton called the Mubarak government "stable" and "responding to the legitmate interests of the Egyptian people," on Tuesday January 25, 2011. Vice President Biden said on Jan 27, in a night interview on PBS, that he would not call Mubarak a dictator and did not think he should step down. This Washinton Post editorial is strongly critical of the Obama administration for its statements implying that the 30 year Mubarak regime would continue. It says Mr Obama spoke with Mubarak on Friday night and after speaking to Mubarak stated that he would continue working with Mubarak, and not once mentioning elections. The Washington Post says it is dangerous to assume that the energized and enraged people of Egypt protesting on the streets of Cairo and other cities will back down and carry a dialogue with a regime that has repressed every form of assembly and free expression for three decades. It supports the moderate and democratic platform of leaders of the protests and of Mr El-Baradei. This includes lifting of a hated emergency law that bans peaceful assembly, the right to freely organize political parties, and allowing free democratic elections. The Post calls on the Obama administration to prepare for the peaceful implementation of the opposition platform, and telling the Egyptian army without qualification, that violent repression would rupture the rellationship with the United States....

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As many politicians and commentators deride programs by the government in the infrastructure area as " mere spending programs", Robert Frank, an economist at Cornell and NYU offers some much needed clarfication. High savings rates are not bad for the public, savings go into investment int he economy, and higher savings properly channelled can lead to higher productive investments that in turn generate a virtuous cycle of more investments. There is thus no conflict between private savings and economic growth. China's and India's higher savings rate leads to savings going into investments in the economy for higher economic growth. Only in sharp economic downturns does the paradox of thrift operate, here lower consumption leads to lower production and layoffs, and the economy goes into a tailspin as consumers hoard their cash and postpone purchases. There is an element of fear in that kind of downturn. So its aunique animal. With the government stepping in to provide investment, make up for jobs lost, and restoring confidence, the paradox of thrift does not operate. ANd its ok and desirable to have consumers save especially when they are so overstretched as they are today. A real world example is that much of the US credit card debt is at 20% interest rates or more. In just 5 years says Robert Frank each dollar invested in reducing debt would support more than $2.50 of additional consumption, in 10 years more than $6. Savings matter. The wastefulness of spending is not a given. It depends on where the government is spending. If there are productive investments like infrastructure that are waiting to be made, then with some due diligence and care the investments can be very efficient....

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Giorgio Napolitano, 87 years, is elected to a second term as president of Italy, after several failed atempts to get other candidates elected in parliament.

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Vice President Biden says "I would not refer to Mubarak as a dictator," showing a lack of sensitivity and understanding of the Egyptian people's demands for freedom of expression, human rights, and democracy. Harshaw says that its clear the Mubarak regime has been wounded at the core. In the light of this the Obama administration's hesitant and timid response to the protests against 30 years of one party rule under Mubarak is baffling. It means the US will have to bear the costs of being on the wrong side of public opinion in the Arab world says Harshaw. And President Obama has failed to bring the much needed change that he promised for US relations with Africa, the Arab world, and the developing world. Apart from improvement of relations with Turkey, the failure of the Obama administration to grasp opportunities for forging a new era of relations with the Muslim world.

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United with subsidiaries United Airlines and Continental Airlines had $6.8 billion in liquidity as of June 30, 2014. American Airlines after the merger with US Airways has $9.4 billion unrestricted cash by July 2014. Mr. Parker, the CEO of American, plans to prepay $2.8 billion in debt and aircraft lease payments, place $600 million more than required into pension contributions, and start a dividend and share buyback. Airline consolidation into 4 major carriers, cutting unpofitable hubs and routes, filling planes to capacity, and charging for better seating, snacks and other amenities, are leading to record profits for the U.S. airline industry.

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This WSJ Editorial Board article says Ron DeSantis has strong support in Florida with his 19 percentage point margin win in Florida. As a national candidate he is seen as conservative with a ban on 6 week abortion and cultural stands on a number of issues, and a sense that there is what it calls "cultural brawling." His position on Ukraine as simply "a territorial dispute" is questioned. This gives Mr. Trump an opportunity to show DeSantis is too conservative, says the WSJ. Mr. DeSantis 44 years, is praised for the way he handled the pandemic by opening up schools earlier than New York and other states, and opening up the economy. Yet he is seen as lacking a larger vision on how the country can build a stronger economy, and reduce social divisions, for American Renewal.  WSJ's views on Biden are that he leans too much towards Progressive Democrats. And on Trump that he is stuck with the idea of national retribution leading to 4 more years of trench warfare that it finds unacceptable. ...

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Adam Bryant interviews Satya Nadella, CEO of Microsoft in Feb. 2014. Nadella led the cloud computing effort at Microsoft before becoming CEO in 2014. He is a native of Hyderabad, India, studied electronics and communication engineering at Manipal Institute of Technology, and computer science at the University of Wisconsin. Here Nadella recalls his early leadership experiences. As a bowler on his school's cricket team (similiar to a pitcher in baseball), Nadella was pulled out from a bowling spell when he wasn't having success getting batters out. He recalls the captain bowling to get some outs and then putting Nadella back in, who continued getting wickets at that point. He sees this sports analogy as a leadership experience where the captain was sensitive about keeping Nadella motivated and confident, and giving him an opportunity to try again. He takes more out of this and other experiences in his role at Microsoft- to create energy and genuine commitment in his team, and build a team effort to take advantage of opportunties that present themselves in the future. Nadella makes some interesting observations about the tech business. A $1 million business can seem too small for a large company, but in the tech business driven constantly by innovation, there is the need to pay attention to innovation that starts small. At some point says Nadella an innovation can appear to be a failure, an absolute flop, until it becomes a hit. Leadership has to be able to dig deeper and listen, as small changes can lead to big things. About people Nadella likes to know what people have done that they are most proud of, and what they feel didn't work out or where they failed, and looks for how a person can reflect on his experiences and grow as a result of having had them. A useful point Nadella makes at the end of the interview is that people outlive companies in our rapidly changing society, having a sense of our own mortality within this short duration, gives one a special sense of responsibility. ...

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India's National Pharmaceutical Pricing Authority placed pricing controls on frequently used antibiotics including Ciprofloxacin, diabetic drugs including Metformin, and heart medications. It also said it would audit manufacturers to ensure that normal production continues. The pricing authority acts under a 1955 law that requires pricing to be affordable for essential drugs needed by the vast majority of poor people in the country. Some mass consumption drugs are now imported where it is unprofitable to make them in India. In the case of other drugs the volume increases from lower prices increases access to medicines, and the volume makes up for the price cuts. An example cited by the pricing authority is essental antibiotic (especially for children), Augmentin, where the prices dropped by 40% but the volume increases as it became more affordable have more than made up for the price reductions, with overall sales higher than before the price cuts.

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Reilly points out that removing the government and "putting private capital back at the center of a healthier" housing-finance system, as recommended in a policy paper from the Treasury Department, is only possible if the government gives up the idea of a 30 year mortgage. Thirty year loans as currently structured are not attractive to investors without a government guarantee. The revival of securities markets for mortgages not backed by the government is not possible with the 30 year mortgage. There are benefits from the government getting out of the mortgage markets. A significant benefit is that there would be less incentive to invest in housing, so that more capital is available to other productive areas of the economy leading to higher economic growth. In fact the diversion of economic resources from more productive uses to housing was a major problem in the last decade.

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Of the estimated 14,400 candidates for provincial elections in Iraq, about 4000 are women. And security improvements have enabled women even in Basra to stand up for elections. In the current Iraqi constitution there is amandate for 25% of seats in Parliament to be reserved for women, but there is no such provision for provincial elected parliaments. This does not imply that years of lack of representation in the last 50 years under dictatorships, and the rule of religious parties and militias, is going to be easily overcome. Many qualified women simply don't want to risk standing for election because of threats to their safety and the male dominated culture that prevails. Its the courageous ones who are standing. The hope is that women can also put adent in the deep corruption that prevails in government and bring a new perspective and better representation of society.

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Leon Panetta, former U.S. Defense Secretary, answers questions from a CNN correspondent and GW professor at George Washington University in Washington D.C. He says President Obama dropped the ball when it came to taking on Congress over budget cuts and on tough issues in Iraq and Syria. Panetta says he told Obama that getting back into the ring was necessary to get things done.

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Experts at the East-West Center in Honolulu, say China will add about 55 million barrels to its strategic reserves in 2012, which is another factor that will keep oil prices high in 2012. A number of new storage locations are coming on stream to store the additional reserves. China imported 5.57 millon barrels a day in March 2012, an increase of 8.7% from the prior year month. Oil imports for the 1st quarter of 2012 increased by 11% over the prior year quarter, according to China's General Administration of Customs. This is a much faster pace than imports in 2011, which increased by 6%. China is building its strategic reserves to reach a goal of 90 days supply similiar to the U.S. strategic reserves. Lu Tienan, director of China's National Energy Administration, said at a conference in the first week of April that current total oil stocks, including strategic and commercial are enough for 40 days. It is doing this in the face of higher oil prices, because of the threat of sanctions against Iran's nuclear program could lead to a cutoff of Iranian supplies. China's oil imports from Iran were 11% of total imports in 2011, making this an urgent priority for China. Estimates of the East-West Center are for crude oil imports at an average of 5.77 million barrels a day in 2012, an increase of 13% over 2011. International Energy Agency estimates are for China's total oil demand for 2012 to be 9.9 million barrels a day in 2012, an increase of 6% over 2011....

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As the graph vivdly shows in 2005 and 2006 there is surge in subprime lending to Hispanics and blacks, with almost as many subprime loans to Hispanics and Black people as to whites. It slows down in 2007 by which time foreclosures were starting to take shape. WaMu, Countrywide, Ameriquest and other lenders who pushed subprime lending were backers of an initiative called Hogar which worked to spread lending to redline areas, in what an organization for responsible housing lending calls reverse redlining- in which high cost loans were pushed on those least able to sustain payments for a long time. Previously these areas did not get much lending because of the lack of good credit history.

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Nouriel Roubini has proven correct on global financial issues. He said in an interview on the sidelines of a symposium in Malaysia, that China needs to revalue its currency for its own sake. China will see a growth collapse in the next 2-3 years if it fails to do so. His point is that China can still maintain growth by shifting to domestic consumption and less infrastructure spending and exports. In his view growth should not be affected if China exports less and consumes more. He points to the decrease in consumption as a share of GDP from 45% to 36% in the last ten years- this ratio is 70% in the USA. A cheap yuan keeps foreign goods unaffordable and protects state owned companies which also get cheap credit, as keeping the yuan low requires China to keep interest rates artificially low. What this does is make a massive transfer of income from the household sector to the state owned companies, just at the time when China needs to do the very opposite of this. And compounding the problem is that the 25% of China's GDP that is made up of retained earnings of mostly state owned companies, goes into real estate and production facilities. See the link to David Barboza in the New York Times who points to the wasteful spending and real estate speculation by state owned companies. Roubini cites the automobile sector where capacity has doubled in the last year to 20 million, when the domestic market increased by 50% to 10 million vehicles. The stimulus only increased the effect of surplus capacity and misallocation of investment, with highways to nowhere and brand new airports that are three quarters empty. The Chinese leadership is beginning to grasp this, but the state owned companies and other interests who benefit fromm the old model, may make it difficult to reverse the trends. A lot is at stake in this, as it affects the U.S., as well as countries dependent on China's imports such as Australia, Canada, Brazil and Germany. ...

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A change in the tone of how the US sees China's military and nuclear weapons buildup in December 2025 from the US War Department as the US and China work to preserve a trade truce and better relations with planned US president DJT visit to Beijing in 2026. US has 3700 vs about China's 600 nuclear weapons growing to 1000 in coming years. US sees the Monroe Doctrine as its major foreign policy goal in 2026- US setting rules in the Western Hemisphere for Peace and Progress without the lawlessness of drug and people trafficking in Venezuela and Mexico of the last 2 decades across the Bush, Obama and Biden administrations. This is a major change in policy to ensure the safety and well being of American communities in 51 states of the Union, in addition to jobs and factory expansion across America by fighting unfair trade practices in the world economy.

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Like Japan China is looking to wean its exporters away from dependence in the export markets- one of the steps agreed on at G-2- in Pittsburgh- and increase spending by Chinese consumers to buy more of the same products at home. Bicycle manufacturer Tandem has lost 40% of the American sales, now it is looking to the Chinese market as incomes are rising in China. As Tandem's general manager puts it in the US the shift is now to buying cheap things. Chinese exports after rising 20% each year for years, recorded a drop in August 2009 of 23% down over August 2008. In China urban household spending was up 9.2%. THe savings by American households jumped to an annualized $566 billion in the second quarter of 2009, quadruple the rate at the start of 2008. Batson gives this account from Shunde in Chinawhere Tandem has it head offices. He talks with managers at Tandem and sees the struggle within the company to some up with anew mindset, and organization, to sell bicycles in the domestic market where other bicycle manufaturers like Giant Manufacturing Company of Taiwan already have a large share in the high end market. Mr Tseng had to convince his fellow managers and the board that it was a good idea, as the domestic market is tough to pentetrate, kickoffs are common, and competition is intense. Tseng says Tandem will approach first the children's market where competitors haven't focussed, and treat as atoy for kids. Tandem will bring higher quality better built bikes into this market. And this is similiar to what it sells to American kids with lots of colors and funny names. Tandem managers aren't sure Chinese distributors or retailers will pay enough attention to their bicycles so they decided to open astore in Shunde and start small and scale up. Tseng says that Tandem will have to pay its tution first and learn about the market. This means it will still continue selling to America and Europe. Chinea's government is now encouraging these efforts to target the domestic market with tax breaks and coupons. But as China and Japn also become more inward looking economies and trade inside Asia increases, the domestic demand is not enough to make up for the loss in the American and European markets. The US and Europe each put in $9.5 trillion into the global economy, even at their current recession diminished pace, compared to the $1.5 trillion spent by Chinese households. Per capita incomes tell the story. In the US $35,486 and in China $2,270. T...