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The U.S. Federal Reserve's decision to extend Operation Twist beyond June to the rest of the year after the June 2012 FOMC meeting. By extending Operation Twist the Fed will buy $267 billion in long-term Treasury bonds and notes and sell short term Treasurys.

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Boeing reaches a tentative agreement with the International Association of Machinists & Aerospace Workers in Nov. 2011. Under the agreement Boeing will build the 737 MAX, a retooled version, at a union plant in Renton, Washington. In exchange the union will not oppose Boeing's use of a new nonunion plant in South Carolina for assembling some 787 Dreamliners. The agreement when approved by union vote would extend the contract for 4 years till 2016. Advantages to Boeing lie in labor peace during a period when Boeing plans to increase production by about one third, over 2012-2014, to meet aircraft orders of $332 billion. Existing 737 production has been moved up to 35 a month, going up to 42 a month, accelerating the pace significantly, making it important for both sides to avoid labor discord. The Max first delivery is planned for 2017. In the current unemployment crisis there was considerable incentive on both sides to resolve the issue quickly, after the union had raised the issue with the National Labor Relations Board. It provides Boeing with flexibility in assembling some of the 787's in S. Carolina along with assurance for union commitment to productivity, and gives the union assurances that Boeing will continue to maintain significant maufacturing presence in the Washington area, a win-win for both sides. The NLRB appeal will be dropped by the union....

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Rick Perry faces criticism from Republican candidates Romney, Bachmann, Huntsman and Paul at the Republican presidential candidate debate in Tampa on September 12, 2011. Perry defended his remarks on Social Security by telling viewers- "slam dunk guaranteed that program is going to be in place." Romney suggested Perry had been served four aces for his jobs record in Texas. And Santorum accused Perry of providing education assistance to illegal immigrants to attract the Latino vote. Perry defended his remarks on Fed chairman Bernanke printing money amounting to treasonous behaviour.

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After a general debacle the Congress party gains ony 44 seats in India's parliament, the lowest since independence in 1947. The BJP party under Modi gains 282 seats and sweeps the north, centre and west of the country, and parts of the south and east. Younger voters in overwhelming numbers voted against inept governance and corruption under the Congress led government of Manmohan Singh and party leader Sonia Gandhi.

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Over 50% of respondents in the 2012 Gallup poll view Japan as the U.S.'s most important partner in Asia, compared to 39% for China. The shift in how Americans view China is pronounced in the last 3 years. In 2010 the two countries were tied 44%-44%. In 2011 China was 39% to Japan's 31%. In 2011 India, S. Korea and Australia were added to the poll as partners. Among "opinion leaders" such as business executives, government officials, academics and journalists, China gets 54% to Japan's 40%. The poll is conducted by Gallup for the Ministry of Foreign Affairs of Japan since the 1960's. The analysis shows that respondents picked China for economic reasons not for political reasons. A survey of the general population shows 84% view Japan as a dependable ally, up 2% froom 2011, with similiar trend for opinion leaders.

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Republican presidential candidate Rick Perry tells an audience in Cedar Rapids, Iowa: Printing more money to play politics at this particular time in American history is almost treacherous- or treasonous, in my opinion." He was referring to Federal Reserve chairman Bernanke when he said: "I know there's a lot of talk and what have you about if this guy prints more money between now and the election... I don't know what y'all would do to him in Iowa, but we would treat him pretty ugly down in Texas." Perry's spokesman said Perry feels strongly about printing money, and "got passionate" in his comments.

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William Cohan describes the "bait and switch" techniques used by Bain Capital that he experienced in his personal dealings as a deal maker for 17 years on Wall Street. By this he means that Bain would make attractive offers in the early rounds of an auction for firms as the only way to get selected as a prospective buyer for a final bid. This was necessary for Bain to visit the company facilities and examine its books on-site. At that point Bain would finds all sorts of problems with the company and lowball its bid. Cohan says of all the private equity companies Bain Capital was the one most noted for using these methods during the period Romney headed the firm, and questions the credibility of Bain's word and Romney's word.

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France is moving quickly with spending on the $37 billion stimulus. Public buildings, museums, cathedrals and historical sites are being renovated in 2009. About 50 chateaus, and 75 cathedrals are part of 100 million euros for cultural centres. About 75% of France's stimulus money will be spent in 2009, in contrast to the slow work in the USA.

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Reflections on Spanish democracy, 34 years after free elections following the Franco regime. No new solutions to problems of high unemployment (reaching 5 million "paradores" or unemployed as a recent front page headline in extra large print in the paper Cinco Dias declared) from the Socialist party and the Partido Popular. And a sense that the country is on autopilot, as decisions are being made by the EU on recapitalizing banks and other economic issues without a significant voice from the Zapatero administration.

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Dallas Fed president, Richard Fisher, says the Fed cannot create jobs, and why he is opposed to the Bernanke quantitative easing policy.

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Race and religion as a quiet issue for both candidates in the 2012 U.S. presidental candidates, with Obama and Romney both reticent and unwilling to talk about the defining aspect of their lives fearing voter prejudice.

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U.S. Federal Reserve chairman Ben Bernanke tells the House Financial Services Committee hearings that the Fed will give importance to underemployment, not just the unemployment rate, in making decisions about bond purchases. The unemployment rate could be a false indicator of the labor market if the rate falls below the Fed's goal of 6.5% before raising interest rates, and yet labor markets are still weak because of underemployment. Bernanke said: "There are a number of problems with the labor market. Unemployment is one problem, but long term unemployment and underemployment- and by 'underemployment,' I mean people either who are working fewer hours than they would like or possibly working at jobs well below their skill level- is also indicative of a weak labor market." In this situation of high underemployment combined with low inflation the Fed may hold off on raising interest rates when the unemployment rate reach 6.5%. In Bernanke's words: Reaching 6.5% unemployment "would not automatically result in an increase in the federal funds rate target." Since 2010 financial markets in the U.S., and to a lesser extent worldwide, have looked to U.S. Fed policy for raising interest rates, as guidance on the degree of support for the economy and by extension for markets....

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A black supporter of Obama, Ms. Hart, tells him- " I'm exhausted of defending you, defending your administration. I've been told that I voted for a man who was going to change things in a meaningful way for the middle class." This encounter happened at an hour long town hall meeting on CNBC, which John Harwood moderated. Harwood asked Obama whether he was having difficulty connecting with average Americans because of attending Ivy League schools and spending part of his youth overseas. The incident reflects the frustration and disappointment felt by average Americans with the Obama administration and with Obama.

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Fomer U.S. Census Bureau officials Gordon Green and John Coder released a study by the firm Sentier Research. The study looks at two groups of Census data from 2005-2007 and 2008-2010, which has information on interviews with 3.5 million households for each period. The study shows 38 states with household income declining. The losses in income are greatest in the midwestern states affected by the loss of manufacturing industries. Incomes fell by 5.7% in the midwestern region of Indiana, Illinois, Michigan, Ohio and Wisconsin. Oil, shale and other energy producing states- Louisiana, Oklahoma, Texas- saw incomes rise by 0.3% from 2007 to 2010. This report looks at pretax income levels in 2010 dollars for all 50 states and 297 metropolitan areas. Michael Greenstone, professor of environmental economics at MIT, says the regional shocks from the economic crisis can last for a couple of decades. The Midwestern states showed median annual household household income decrease by 4.7% to $49,710 and the Southern states showed a drop of 2.5% to $47,389. Nationally for the U.S. the drop in annual median household income from 2007 to 2010 was 3.5% to $51,287. Another finding of the study was that of the top ten metropolitan areas with the highest percentile of incomes, nine were in Connecticut, New York and New Jersey, a region where the financial industry is based. Silicon Valley in California comes in at No. 10 in this list of metropolitan areas. In terms of growth of households reflecting migration patterns and new families the Mountain States of Arizona, Colorado, Idaho, New Mexico, and Nevada did as well as the oil patch states of Texas, Louisiana and Oklahoma, showing an increase in households from 2007 to 2010 of 5.8%....

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Compared to the situation in 2008-2009 during the global financial crisis with the excess supply of labor, China in 2012 faces an excess in demand for labor. In 2009 about 20% of migrant workers were unemployed when the crisis hit, and wages dropped 10% for migrant workers, according to the Chinese Academy of Sciences and Stanford University. The situation three years later is one of tight labor markets and higer wages. A large stimulus in not only not needed today in the way it was in 2008-2009 as a way to maintain social stability, it would reduce the benefits of the anti-inflationary steps taken in 2011-2012, by putting more pressure on wages and prices. Manufacturing sector wages increased by 20.1% in 2011, according to China's statistics bureau. This may be why the Chinese government is taking measured steps to avoid creating more bad loans through indiscriminate lending, and being more selective in accelerating development projects in the pipeline. According to Hong Kong's new Chief Executive Officer China plans to have about 7% growth. This shift in approach would help China refocus on growth strategies recommended in the recent Development Reform Commission and World Bank Report on China....