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iCET Initiative for Critical and Emerging Technologies is a new program that was agreed to between president Biden and prime minister Modi at the Quad Summit in May 2022. It has the focus of building the US relationship with India for advanced and emerging technologies in the competition with China, and also as a way to expand India's role in the US and EU supply chain arrangement. Its first inaugural dialogue happened this week between Jake Sullivan NSA for the US and Ajit Doval NSA for India. The goals of iCET are To seek to build supply chains which increase co-production and co-development between the countries  To increase linkages between the countries startup ecosystems To broaden defense innovation and technology cooperation To build resilient semiconductor supply chains  Space cooperation STEM talent Next generation 5G and 6G telecommunications cooperation The US will speed up approval of GE Engines making of engines in India for light combat aircraft manufactured in India. ...

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Europe is importing natural gas for heating homes and industry like never before as it shifts imports from Russia to the US, says this report in WSJ. Shown here is the import of LNG from tankers at the LNG terminal in Cherniere, France. Between 2021 and 2022 imports of US LNG to Europe more than doubled. The WSJ shows how drilling for gas takes place in Texas and Louisiana. That gas finds its way through pipelines to places where it is converted into LNG by freezing and transported by tankers across the high seas to European LNG terminals like Cherniere in France. The shale gas comes from the Permian Basin in Texas and New Mexico and a basin in Texas and Louisiana. Technological advances enable drilling 2 miles vertically and then two miles horizontally to reach into shale rock containing gas. Impurities are taken out to get gas that can be sent through pipelines to liquefied natural gas storage locations on the Gulf coast of America. Tankers take the LNG to LNG terminals in Europe that distribute the gas to homes. ...

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US aid to Ukraine shifts to the long term. Republicans ask the president and Democrats to leave Ukraine aid on a stand alone basis and not mixed with other health or budget requests where there are differences. Republicans want to move quickly on aid to Ukraine as the invasion on the east of Ukraine builds up. In comments earlier this week Mr. Biden told a national audience in a televised speech that he wants to make Ukraine aid to be ongoing as this could be a long effort to resist the Russian invasion. Ramstein now has a new symbolism - US Joint Chiefs head Gen. Mark Milley was clear about it- "The outcome of this battle, right here today, depends on the people in this room." The battle is one in eastern Ukraine. Defense Secretary Austin was clear about also clear- "the war had galvanized the world." About 40 countries were represented at Ramstein base, some virtually. There was a sense that the previous symbolism with Anglela Merkel and Mr. Steinmeier and Mr. Schroeder may have emboldened Russia into invasion of Ukraine. ...

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Ellen Barry of the NYT gives this exceptional story of how an old paper mill in Maine is rescued from liquidation by a Chinese investor needing pulp for making cardboard boxes at mills in China. The owner of the Chinese company Ms. Zhang built her business converting recycled scrap from the U.S. at mills in China into cardboard boxes used for shipping products. It is the largest manufacturer of this kind in China. The Chinese government stopped the import of scrap from the U.S. leading to the immediate need for new sources of pulp material for eight mills in China making the paper boxes. Ms. Zhang uses traditional methods including Feng Shui from ancient Chinese culture to make sure all the spirits are favorable for the enterprise. Hundreds of peach trees were planted along a tall fence around a nearby cemetery.  Zhang grew up as the eldest daughter with 7 siblings during the Cultural revolution upheaval in China and went to work at a young age. The work ethic is deeply built into her family where she is revered for her hard work and enterprising spirit. ...

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Biden efforts to reduce the level of escalation in relations with China include a visit by Secretary of State Blinken to Beijing in June 2023. The US says it seeks "to responsibly manage relations with China." The visit of Blinken to China was planned for February 2023 but postponed after the shooting down of a Chinese balloon craft in US airspace. China's support of Russia in the war with Ukraine has further strained relations. A similar effort is under way to reduce tensions with Iran by approving 2.5 billion euros payment by Iraq for Iranian oil deliveries. China sees Biden's efforts for stronger competition with China as affecting its economic interests. It seeks economic ties in the face of a slowing economy preserving its advantages in manufacturing developed over 2 decades. The Biden administration seeks with the EU a new supply chain that corrects the errors of overconcentration of manufacturing in China. This is what China means when it refers to the Biden administration stoking "competition" with China, as affecting China's sovereignty and national interests.  ...

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US Treasury Secretary Janet Yellen says president Biden's $2 trillion plan for workers and families is aform of modern supply side economics. Where the old supply side economics failed with deregulation causing environmental damage and tax cuts on capital did not achieve promised gains, she says the new "modern supply side economics seeks to increase economic growth by boosting labor supply and raising productivity, while reducing economic inequality and environmental damage." Biden plan seeks to use common sense ideas that are more likely to work by investing in education, healthcare, child care, helping more women be productive in the workplace and tapping into their skills, investing in social cohesion essential for democracy by giving all sections of the people better opportunity for a better life, and creating a ground for fairness in taxes to finance the public infrastructure that will make the US a leading economy in the world that serves all its people. In that sense it is even wider and deeper in both intent and purpose than any term such as supply side economics that economists and politicians use. ...

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Prime minister Modi of India says India has take a step forward for bringing in the people of the Global South into G20 discussions. India, he says, has set a path for getting development to the last mile, the last person in the public who in previous years was left out. This was done through digital infrastructure for bank accounts for hundreds of millions of people, cooking gas stoves for women in rural areas, housing, tap water for every one of India's households, sanitation including toilets, road infrastructure. Much of this was done at low cost with technologies that can be transferred to  a billion people in Africa and 700 million in other parts of Asia such as the Philippines and Indonesia, Vietnam, and Malaysia. This is the lasting achievement of the G20 first in Jakarta, Indonesia, and now in New Delhi, 24 months of leadership of Modi and Widodo of Indonesia as partners. It is also why Mr. Modi was in Jakarta just one day before the G20 Summit for ASEAN meeting that brings India into close relations with ASEAN (Association of South East Asian Nations).  ...

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In a new trend that looks good for America is seen at companies such as American Fleet, which makes diesel engines for trucks. During the pandemic it was making 40 engines when it could make 30 normally, by adding overtime. It looked for mechanics. Now as demand is slowing workers work fewer hours. And the company which has a hard time finding mechanics is avoiding layoffs. It wants to avoid the expense and trauma of hiring and retaining workers. With fewer engines to build workers are prepping engine blocks and upgrading equipment so that when demand picks up again they will be ready. Workers are being hired to fill unfilled positions allowing overworked employees to return to normal hours.This is a national trend reflected in declining overtime hours and working hours are shifting also with workers opting to work less because of work-life priorities. This should be seen as part of the renewal of America, because when workers do well, the middle class does well, and when the middle class does well America does well. America does well when companies and workers mean the same thing. ...

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There are four pillars to this fight Biden and Harris are now waging. Biden tackled infrastructure by getting the Congress to pass the Inflation Reduction Act and the CHIPS and Science Act to put trillions of dollars into rebuilding aging and dilapidated American roads, bridges, airports, ports, rural internet. This also tackled Manufacturing and factory jobs in the US neglected for 3 decades, the second pillar. The third pillar for Biden was getting American wages that had fallen behind to catch up by supporting labor in wage negotiations.  Something was missing as Cost of Living for housing, childcare, remained. This is where Harris has stepped in with Jerome Powell of the Fed. Powell cutting interest rates to make housing more accessible and Harris putting in $25,000 for first time homeowners for a down payment, build 3 million new homes, $6000 for childcare for parents, and $50,000 for small businesses to start. Specific programs at specific targets in FDR type "bold, persistent experimentation" activity. Put together the four pillars mean giving strength to the US economy which Powell says is "in solid shape." ...

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Much of the growth in 2022-2024 was a result of Biden administration government spending on infrastructure supported by private sector spending. With efforts to cut waste and set new priorities in government spending, growth in 2025-2026 has to come from private sector spending with the DJT administration. The tariffs in the first 100 days are seen by business as a bargaining chip. Scott Bessent has described the tariffs as domestic policy, and president DJT has stated clearly that the tariffs against CMC countries, Canada, Mexico and China, is intended to stop the flow of fentanyl into the US. The scale of the fentanyl issue can be seen from the 490,000 American deaths over 12 years from fentanyl.  It is incumbent on CMC countries to take action on fentanyl. It is also incumbent on the CMC countries and on the EU, on opinion in business and the Silicon Valley in the US, to grasp the real dimensions of this crisis destroying so many lives, that is so unprecedented in the history of the US.   ...

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What harm will one ton of carbon dioxide pollution cause to the planet? Under Obama administration $50, under Trump administration $5, under Biden administration $200.  Mr. Revesz asks the obvious question others forgot to ask- how does this regulation or change affect future generations, what problems children and grand children won't face because of this action? The man who heads OIRA is given the task of doing the cost benefit analysis for billions of dollars of US government projects designed to fight climate change. Because of its looming importance Mr. Revesz of NY University School of Law was brought right into OIRA in the White House instead of the EPA. The Office of Information and Regulatory Affairs (OIRA) is located right in the White House. It is the gatekeeper and final word on new federal regulations on climate change. Astounding as it may sound, during the Obama and Trump administrations no effort was made to track the cost of climate change for future generations. Mr. Revesz is changing that. As a result of his efforts at NYU School of Law and in assisting attorneys general in the Trump administration, and now at the Whit House he is changing the way the world looks at climate change action. He shows how the EPA new rules on tailpipe emissions will promote electric cars. The benefits exceed $1 trillion from the shift and this will show that it exceeds the cost of the fossil fuel companies and the US economy making the changes required. ...

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This opinion of the Editorial Board of WSJ says it is not clear why Taiwan has been excluded from the Indo-Pacific Economic Framework that includes most of South East Asia including Indonesia, and India, South Korea, Japan, Australia. The Biden administration plans to deepen economic ties with Taiwan. WSJ says this is a mistake and Taiwan should be included in the new Asian alliance led by the US. IPEF is a Asian alliance built around 4 pillars of digital economy, transparency and good governance, Asian security and rule of law, and rapid economic technological progress. Biden administration Commerce minister Raimondo says it will increase investment in the alliance countries for supply chain renewal and shift of investments away from China and into India, Vietnam. President Biden and Jake Sullivan see it as pulling in investment into the US for infrastructure and technology and into allies such as India who have the pool of manufacturing workers to compete with China in a new supply chain. Mr. Modi also sees it as he is focused on digital economy, good governance, and infrastructure with speed and scale at high levels to match rising aspirations for the economy in India. It is designed in a way that lets US, Japan South Korea and India to fill in the needs and strategies over the period to 2030 and 2040 so that US and Europe and the Free World in Asia and Latin America, Africa can preserve democratic values with matching technological and economic strength. ...

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An extraordinary moment in history took place at Rajghat Gandhiji Memorial in New Delhi on September 10, 2023. The leaders of 20 largest nations from all over the world observed a moment of silence after devotional hymns at the memorial to Mahatma Gandhi. Click on original article to pull up the larger picture and take our On the Spot Quiz on which countries were paired together on either side. On either side of Modi are Widodo (Indonesia) and Lula (Brazil), next to them either side Macron and Biden, Albanese and Sunak, EU's Michel and Leyen , Erdogan and Yeong, Fernandez and Meloni, Qiang and Kishida, Lavrov and Scholz, Sissi and Ramaphosa, Rutte and Trudeau. Can you tell which countries each pair of leaders are from? Answer below for our first On the Spot Quiz. Answer: France and US, Australia and UK, EU's pair, Turkey and South Korea, Argentina and Italy, China and Japan, Russia and Germany, Egypt and South Africa. It is an exceptionally well thought out arrangement. With Indonesia and Brazil on either side of India, you have the core of the aspiring population of 1.7 billion people more than anywhere else on the planet Earth, who think alike, act alike. And next to them are leaders of France and US, Australia and Britain, and the European Union, who are resolutely backing the shift in agenda- debt assistance, tripling renewable energy, and a new infrastructure building effort for ease of living.   ...

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The WSJ's Iliff and Luhnow's interview with Emilio Lozoya, CEO of Petroleos Mexicanos (PEMEX). Lozoya says about the new oil law that allows foreign companies to compete with Pemex, as something that should have happened decades ago. President Calderon of the PAN party pushed hard for this, but failed to get the support of the PRI during his term in office 2006-2012. It made sense for Mexico because President Cardozo (1997-2002) of Brazil already set a successful example by doing this for Brazil's state oil company, Petrobras. The main point is that competition is good for Pemex, and good for Mexico and Mexicans, and Lozoya emphasizes this. Under the law Pemex can keep oil fields it already has and have the first pick in future fields. Pemex is expected to partner in oil field exploration in deep waters of the Gulf of Mexico where it needs the technologies of foreign oil companies. Under the new rules Pemex will have 2 years in which to make the transition to a well managed business enterprise. A new tax code works to increase nonoil tax revenues, so that Mexico does not depend on Pemex profits for one third of its budget. It also gives Pemex autonomy and control over its budget, and lowers its tax burden to international levels. This frees up badly needed resources for investment opportunties to increase Mexico's growth rate. Lozoya says the investment budget could be increased from $25 billion to about $30-$35 billion as a result. He gives a list of badly needed projects not taken up by Pemex for lack of funds- developing natural gas from Mexico's large reserves where Mexico imports its natural gas from Texas increasing the cost of manufacturing, building pipelines where Mexico transports fuel by truck which is 15 times more costly, making its own fertilizer and petrochemicals instead of importing it in a country where 60% of farmland is not fertilized. There is so much to be done that Lozoya realizes his main challenge will be execution. Enormous responsibility rests on Lozoya's shoulders to get the execution right. Pemex has 160,000 employees and crude oil sales of $130 billion in 2012. He has a Masters degree in economic development from Harvard and managed investment funds in New York before this position. Cardozo also picked an investment banking professional for the job of recharting the course of Petrobras and attracting foreign investment....

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Anne- Marie Slaughter's new book Unfinished Business is reviewed by Laura Vanderkam. Ms. Slaughter says in her new book that part of the unfinished business for women in the workplace is to give women time for child care duties in a way that does not hurt their careers. Anne Marie makes the case on the grounds that this is a social bias. Yet there are many reasons beyond simple fairness, and the value of parental work. Women can contribute to society in different ways than men. For example reports show women are more interested in using technical skills in ways that will benefit developing countries. Women bring a different perspective than men. Women are also prominent in scientific fields. For this contribution to grow and enrich society it can be enlarged by giving women proper benefit for maternity leave, and preserving the ability to come back and contribute in the same way after the maternity leave period is over. Toshiba did this for a female engineer who had made significant contributions in the technical field. Doing this would also help in other ways. It could make it more attractive for women to have kids knowing it will not hurt their careers or the careers of their partners. This is needed in western societies with falling birthrates and declining number of young people to support larger numbers of older people....

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Gettelfinger discloses that he is discussing more possible cuts at Chrysler as Chrysler faces a big restructuring. This will be the most difficult of the Big Three because Chrysler faces a financial crunch. Chrysler did not anticipate the new fuel economy standards mandated by Congress and will fall behind if it does not take action in this area. It lacks the resources to develop these new technologies.

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Can the new intelligence assessment that Iran gave up the effort to make nuclear weapons three years ago affect oil prices and to what extent? At least it calms the anxiety that there is an unknown out there being the development of nuclear weapons in the backyard of Iraq where US is involved and in a major oil producing region. This should take some of the pressure off oil prices and any its significant in another way, that any developments in the middle east would be taken in a different light, not as a part of a cloud of uncertainty but taken by evaluating the new development on its own merits carefully. Interestingly this happened in the same week that another development ocurred. The President of Venezuela lost a referendum in Venezuela designed to givie him emergency powers by amending the constitution. Even by controlling most of the media and using oil money to support social programs and giveaways to the poor and working classes, Chavez lost the referendum that he initiated. It was not clear what would happen in Venezuela, and the Iran development was a surprise, so this also means that in international affairs educated people will look at a lot of different possibilities from now on before drawing any conclusions. In fact this is exactly what appears to have happened in the case of the intelligence on Iran, as mentioned here the new assessment was based on allowing different agencies and groups within the government to come up with different conclusions and then to test the facts again and again, and to question old assumptions....

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Jens Thurau writes about a holiday trip to Fohr on the Wadden Sea on north German coast from Berlin by rail, on Deutsche Bahn, July 27 2025. Thurau writes about the travails of DB, the sudden announcements that the train is headed in another direction, having to get off and catch a regional train. On the return trip the train making a stop when sheep cause rail delays on the rail line further up, the train canceled an having to take aintercity regional express to Berlin. The employees struggle too as the conductor on the return trip offers vouchers from DB to passengers and his apologies. Many DB employees having to deal with customer complaints are planning to leave.  Next trip Jens plans to drive to Fohr.  DB has suffered for years with lack of investment on the 2800 mile rail network. Thanks to chancellor Merkel who never gave priority to such investment and who Jens says called the internet "uncharted territory" in 2013, the digital part of the German economy and DB, along with infrastructure has also suffered. The Scholz coalition promised but failed to deliver on infrastructure with opposition from FDP finance minister Lindner. Only in 2025 has the new coalition of Merz with SDP has the constitutional provision limiting infrastructure spending of Merkel been removed, and DB put on the way to modernizing German rail connections starting with the Berlin Hamburg line. ...

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Ireland's prime minister Enda Kenny says following the Brexit vote that is seen as a disaster for Northern Ireland-"My first interest is Ireland's interests, the protection of the common travel area, the peace process, the open border." Other issues facing Ireland are economic- British people will find Ireland's exports costlier by 10 percent, and make Ireland costlier for British tourists who make up 41% of all Ireland's tourists. Ireland's effort to build an all island health system is also at risk. As Ireland tackles this economic problem it is also moving to attract new business to relocate in Dublin. Among ordinary people the fears are more basic- no one wants to go back to the old days and the sectarian strife and conflicts. For most people the open borders mean a great deal- an achievement that took a long, long time, and no one can see this being reversed overnight, which is why Northern Ireland voted 58% to remain in the EU. ...

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Thomas Hoenig was Governor of the Kansas City Federal Reserve Bank for 20 years. Here he talks about the dangers of "too big to fail" with Gretchen Morgenson of the New York Times. He is due to retire at the age of 65 in 2011. Hoeinig has stood for conservative safe financial practices for U.S. financial institutions throughout his 20 year old career, and cautioned against extending the government safety net for banks that engage in risky financial activities including derivatives trading. And essential element of safe financial practice and part of necessary market discipline, he has pointed consistently, is the fear that taking on risky activities or acting recklessly has a price- creditors can take out their funds if they see a banks as unsafe, and the financial institution may have to be broken up or closed. He joins Alan Meltzer in his criticism of Federal Reserve policies under first Greenspan and then Bernanke that take on the job of stimulating the economy and creating jobs through a very loose monetary policy after the collapse of a bubble. Hoenig sees the role of the Fed in such situations as a neutral player. The reason say Meltzer and Hoenig is that the Fed has not given enough thought and attention to the long term consequences of its policies. What were the consequences of the low rate policies in 2003 asks Hoenig? It promoted another bubble and the mortgage meltdown of 2008. What were the consequences of QE II asks Meltzer in an op-ed piece in the Wall Street Journal on August 11, 2011, "The Folly of Economic Short-Termism?" It has failed to revive the economy or reduce unemployment. Hoenig also points to questions of fairness and equity that arise when banks are treated differently and farmers, seniors and other groups are asked to make sacrifices....

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Microsoft is tryin a new approach to improve its retention rate and keep employees happy and productive and attract new talent. Turnover reached 9.4% in 2004. Its dropped to 8% with Brummel a software programmer who has take charge of HR at Microsoft and brough a human face to Microsoft's management's relations with employees.

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Canadian steel and lumber industries get government aid, as talks to end US tariffs are halted over an ad on Reagan misrepresenting him on tariffs by Ontario state.  Canada's steel and lumber industries will get the aid in the form of railway costs cut in half with rail subsidies, and tariffs on US steel imports into Canada to reduce domestic steel costs for other industries. Stellantis shifts car production for a new Jeep from suburban Toronto to Illinois, GM cut a shift at a pickup plant and closed a electric van plant in Ontario. Not all imports to the US from Canada face tariffs. Other products enter the US from Canada under a free trade agreement USMCA that went into effect July 1 2020. Canada is also shifting policy under Carney's Liberals on climate change, as it seeks to reorient its economy to export oil to China and India- a new pipeline is now approved for oil and gas to be shipped across the country from Alberta. Since it's independence with Dominion status in 1867 Canada's economy has struggled with the idea of building a economy separate from the US so that trade between the northeastern Canada and Northeastern US which is next to each other is foregone for trade with distant provinces in the western states such as Alberta and British Columbia. In Brazil Lula's Worker's Party is also slowing efforts on climate change for the economy as it approves oil and gas projects in the Amazon, at the same time as it holds COP30 at Belem port in the Amazon. Even Biden had shown flexibility on the economy to support cost of living measures that are in conflict with climate change action. In DJT's second term climate change action has taken a back seat to cost of living concerns when a large majority of people are living paycheck to paycheck. ...

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Questions raised in this Hindustan Times report about whether India's participation in the Shanghai Cooperation Organization makes sense now after the pandemic and the new arrangement in global affairs. New supply chains and trade alliances formed after the pandemic are likely to be very different after the pandemic and formed with dominant consideration of each nation's economic interests including manufacturing in the home country.  India joined the SCO to forge ties with the central Asian countries. But this no longer makes sense as India's manufacturing ties with individual nations such as Britain, Japan, Taiwan and the U.S., European Union may make more sense and build on "Made in India" initiatives than older thinking and approaches. Britain after Brexit, Japan and Taiwan after a realignment of trade relations, are keen on expanding business and trade, investment ties with India. India has many opportunities to pursue for mutual economic benefit with these countries. Germany, France and other EU countries, the U.S. are also keen on expanding trade and investment with India to boost their economies after the pandemic. This is a crucial juncture for India to plan for the next 10 years for a changing world in which India becomes a dominant story in manufacturing. Australia's participation in the RCEP may also not be long term under the prevailing climate of trade relations with China. Australia India trade can be expanded with new efforts.  ...

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Approval process by government is now much stricter and the approval process takes longer for new wind turbines. A leading renewable energy developer BayWa re. estimates 45% of the old turbines installed 20 years ago would not be approved under today's stricter standards. As these become unprofitable a lot of new turbines have to replace older ones. After years of gains suddenly in 3 years the wind power capacity installed each year is dropping sharply, and is in deep trouble. Especially because wind energy plays a big role in Germany, accounting for 25% of total electricity production in 2019, solar only has 10%. For all of Germany only 290 MW was installed in first half of 2019, 80% drop from same period 2018.  In 2018 2800 MW of wind turbines were installed, and that was down from 5000MW in 2017. Problems in addition to stricter approval standards is the resistance from the public which fears wind turbines close to residential areas could affect health of residents. In Bavaria 10H ban is imposed on new installations, requiring 10 times the height of the wind turbine as minimum distance from homes. Other issues are wildlife and the impact on  birds in the area. 300 turbines for 1200 MW are blocked for this reason. Other reasons are military concerns, FM radio beacons. It used to take 10 months for approval. Now the process is so long that the technology itself has changed by that time. Commercial risks are growing for operators in this environment as new costly regulations come into place. A regulation in Brandenburg requires payment of 10,000 euros to neighboring municipalities per wind turbine. Subsidy eligibility is also being cut. ...

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Vivek Wadhwa visits India's IT sector companies to take a first hand look at new developments in 2011-2012. He finds innovation in areas ranging from printer ink to medical diagnostic tools, all at low price points suited for India's large population and lower incomes.