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Germany went through a period of stagnant growth and persistently high unemployment leading to reforms of the welfare system and entitlements under the Schroeder administration. The reforms led to lower unemployment benefits and an effort to get the unemployed take up jobs. Instead of unemployment benefits that amounted to half the salary indefinitely, unemployment benefits ended in 12 months under the reforms, and workers were forced to take up jobs or dig into their savings. The cuts to benefits led to more of the unemployed taking jobs that were not their first choice with lower incomes. Unions agreed to defer wage demands and wages remained relatively flat for a long period. The "kurzarbeit" system of government subsidizing employers to retain workers during economic downturns, helped cushion the workforce from ups and downs in the economy. Unemployment which was in double digits a decade ago, is now 6.1%. The system still preserved some other aspects of generous benefits- parental leave of 14 months at two-thirds salary, vacation time and publicly sponsored health insurance. Recent changes include raising the retirement age to 67 from 65. The Organization of Economc Cooperation and Development estimates that the 200,000 jobs saved in Germany during the recession of 2008-2009 cost the government $7 billion. Government funds helped companies retain workers by paying a portion of worker salaries and averting layoffs.This comes to $35,000 per job. Compare this with the $38.9 billion allocated to a loan program at the Energy Department under the U.S. stimulus. 8050 jobs were created under this program according to the Washington Post- for the money spent so far in Sept 2011- 2 years into the loan program, of $19.3 billion. This comes to $2.4 million in government guaranteed loans per job. The Energy Department says that 33,000 jobs were saved under the $5.9 billion that was given to the auto industry under this program for investments in manufacturing to improve fuel efficiency. This comes to $178,000 per job. The Energy Department and Congress estimated a 5%-10% loss on the $38.6 billion loan program for loans that go sour, such as the Solyndra solar company $535 million loan. This comes to $1.9 billion at 5% loss and $3.8 billion for a 10% loss. The purpose of these figures is to show the cost of programs when the programs fail to achieve job goals or produce too little for the investment. The $3.8 billion loss under the program is over half the $7 billon Germany invested for the 200,000 jobs saved as estimated by the OECD. That ranks as a far superior investment than the Energy Department program. For the U.S. there are aspects of German reforms such as "kurzarbeit" that bear emulation, with serious questions about the effective use of the U.S. stimulus funds. For the rest of Europe the stingier unemployment benefits, raising the retirement age to 67, and other reforms send a different message. From the average German the message is: we made the tough changes, the rest of Europe cannot expect Germans to pay higher taxes while they put off similiar changes. Italy needs to change its retirement age, just as the Germans have done. As Chancellor Merkel puts it: "People in countries like Greece, Spain, Portugal shouldn't be able to retire earlier than in Germany. It's important for everybody to put in effort to make it roughly equal. Germany will only help when others really make an effort." Which is why Greece, Spain, Italy, even France are faced with making serious changes. This isn't stalling when it comes to euro bonds, from the German perspective. And it isn't about the lack of committment to the idea of a European Union, as all major political parties in Germany, the CDP, the SDP and the Greens, all strongly support the idea of a European Union. ...

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Mario Draghi faces his first test as head of the European Central Bank as Italian bond yields approach 8%. Draghi has limited purchases of bonds of troubled EU countries to 5-10 billion euros each week. This has been sufficient to keep Italian bond yields from going out of control, but high enough to keep pressure on governments in Italy, Spain, Portugal and Greece to make necessary changes. France, Germany and other countries in the EU are working on new rules for making strict budget discipline legally binding, with enforcement sanctions by a EU budgetary authority. Germany is pushing for the new rules. France's Sarkozy with a legacy of Gaullist reluctance to surrender sovereignty in such matters had resisted such calls in the past, but is moving in the direction of convergence of fiscal policies as the only way to preserve the euro currency and the EU idea alive. Draghi is taking a flexible stance on inflation and lowering rates compared to his predecessor, Trichet. He sees signs of slowing manufacturing activity and credit tightening in Europe as signs that inflation will come down from above 3% to something closer to the 3% target set by the ECB. Economists expect him to lower interest rates for the eurozone to 1% from 1.25%, when the ECB meets in a week. The manufacturing purchasing manager's index went down to 46.4 in November, below the breakeven point of 50, which signals a contraction. Output and orders were down across all of Europe, including Germany. Economists say Draghi has left open the possibility of larger bond purchases if the new rules are made legally binding on eurozone members....

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In 2013 growth shows signs of strengthening in the U.S. and the eurozone countries see improvement from the severe recession in Greece, Ireland, Spain, Portugal and weakness in Italy. Developing countries see growth slow down to about 5% in India, 7% in China and 2% in Brazil. Growth improvement in Japan. Overall the situation appears to be reversing with growth picking up in the developed countries and slowing in developing countries and emerging markets. This was also reflected in equity markets performance with U.S. and European stock markets showing strong performance and emerging markets weak or declining performance.

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This report shows how the H1-B visa system as it operated for many years till 2025 undercut wages of American workers in the computer and software engineering fields. Changes are being made to accomplish the original aims of such a program. More critical is the number of jobs over a span of years that are lost to US born citizens- in just 5 years 300,000 US born talented engineers and the 3 million workers they could train would simply not be there to power America's reindustrialization and re-modernization 2025-2030. The same is true for India as 300,000 India's talented engineers and the 3 million workers they could train would simply not be there to power India's industrialization and modernization 2025-2030. This hurts the modernization of the two of the most important economies of the world to the year 2030, which would be profoundly felt by 2035. As part of many actions taken by both the US and India this could lead to shrinking the development speed and development gap with China for the US and India to 2035. ...

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Germany's largest utility plans to spin off its conventional power generation, exploration and production units to focus on renewable energy. The fossil fuel units are restricted by German regulation as Germany moves to increase use of alternative solar and wind energy. The German government sees this as a positive step for energy transformation. German government support for green energy, including large subsidies, is resulting in a power surplus and lower prices for wholesale power. This makes traditional power plants unprofitable. In addition the ruble is negatively affecting Russian operations, Brazilian operations are unprofitable- these assets will be part of the fossil fuels unit, a kind of "bad bank" of assets, say analysts. E.ON shares went up by 4.3% on the DAX exchange, Dec. 1, 2014, showing positive investor perceptions of the move.

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It is the US that has stood steadfastly for freedom from colonization by European Powers in the Western Hemisphere and also in China and India. President James Monroe told Congress in 1823- "The nations of America are equally sovereign and independent with those of Europe. The people of the United States cannot, therefore, view with indifference attempts of European powers to interfere with the independent action of the nations on this continent." Nowhere is there even a hint of American effort to suppress freedom-  it was designed to prevent European powers recolonizing Mexico, Columbia, Argentina, Brazil. France invaded Mexico in 1828 on the pretext of collecting debts of 600,000 pesos (3 million francs) 15 years following the Annual Message to Congress of president James Monroe, in 1838 and again in 1867 on the same pretext. In 1867 the US after the Civil War placed an army in Texas to get the French to withdraw. The Monroe Doctrine is stated in the Annual Message to Congress of president James Madison in 1823. The US and Britain were concerned that the European colonial powers would attempt to recolonize Spain's former colonies that had become independent nations. Former presidents Madison and Jefferson agreed. John Quincy Adams sought to make this an American statement. The idea of preserving freedom in Latin America is enshrined in this document and the original document supported Greek Independence from Turkey, and was critical of France's invasion of Spain. A method employed by European powers to recolonize in the Western Hemisphere was to set an enormous sum of debt due as a pretext for invasion. Britain, Germany and Italy imposed a naval blockade of Venezuela in 1902-1903 on this pretext. The remaining colonies of Spain were in Cuba and the Philippines which were transferred to US after the Spanish American war. The US did not seek intervention for 3 years after the Spanish under Gen. Weyler pursued a policy of "reconcentration areas" for the Cuban population to suppress an independence movement causing great suffering in Cuba. On Feb 15 mines or torpedo sank the US ship the USS Maine in Havana Harbor with death of 266 sailors. Under president McKinley the US with Commodore Dewey took Manila Bay in the Philippines and Havana and Santiago in Cuba. The Treaty of Paris in 1898 giving US authority over Cuba and the Philippines, and Puerto Rico, was passed with only one vote in the Senate showing how much the issue was debated in the US. The foresight of Teddy Roosevelt and Cabot Lodge for a base in the Pacific at Manila Bay, and Hawaii, can be seen in how the US first resisted European colonization in China under president Wilson in 1913-1921, and fought Japanese colonization in China under Gen. Stilwell and Gen MacArthur in the FDR years 1932-44.     ...

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Rep. Wesley Hunt is flown to Washington from campaigning in Texas to get the vote in the US House of Representatives to 215-215 on a War Powers Resolution on the president's action in Venezuela. He was driven directly to the House with escort from the Washington Dulles Airport by Capitol Police. Such is the drama in the House nowadays as Democrats look for ways to restrict the president's action in the international arena on the Monroe Doctrine. The resolution if passed would require Congress to authorize the action to deploy troops. The Venezuelan action was taken quickly in a few hours bringing Maduro to the US. The US set a naval blockade of the country which has fallen apart with high inflation and mismanagement, corruption and drug trafficking after Chavez entered Venezuelan politics with a military coup in 1998 and set up an authoritarian government. When he died the power was handed to a person who lacked experience tackling a complex oil economy and inflation reached 1000 percent destroying the economy. The Monroe doctrine had fallen into disuse since 1824 and its revival in 1904 by Teddy Roosevelt which made it difficult for the US to take action in the interests of peace and security in its neighborhood free of European colonial powers. Russia withdrew from Venezuela after the Trump administration set a new start for US Russia relations based on "respect" for Russia as a power in Northern Europe. In 1824 the situation facing Venezuela and other South American countries blocked by president Monroe was intervention by France, Spain to collect debts.  President Teddy Roosevelt affirmed the Monroe Doctrine during his term 1900-1909 to ensure fairplay, democratic governance and good governance in the western hemisphere free of European powers. In 2026 much of this is being misrepresented in a torrent of what TR called "mendacity." The issue of Greenland and security for the Eastern seaboard of America from foreign powers is also getting the same treatment by the US and European press with no mention of Admiral Perry's discoveries in Greenland for the US Navy in 1890's, and Denmark as a colonial power which had no belief in representation of local people having transferred its colonies in Asia and other parts of the world to other nations for payment or in exchange of territory. The entire population of Denmark of 6 million is smaller than the Houston area and the entire population of Greenland of 50,000 would not fill a baseball stadium, and yet it seeks to block US security for the entire eastern seaboard of  North America from foreign powers in 2026 after it did so in 1947 when Harry Truman offered $100 million for Greenland, as the Cold War intensified in Eastern Europe. ...

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France's Finance Minister Michael Sapin introduces a no-austerity budget in September 2014 as France's growth is forecast at 0.4% in 204 and not reaching 2% till 2017. Sapin says "we have taken the decision to adapt the pace of deficit reduction to the situation in the country." The government will put off large parts of the 50 billion euros in cuts in spending towards the latter part of the period to 2017. Critics on the left say the cuts are undermining the social welfae model of France. President Hollande's popularity has declined to very low levels in 2014. Prime minister Valls wins support in the National Assembly for the government's strategy to tackle the economy and growth- increase business confidence and postpone cuts till the economy recovers by 2016.

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National Portrait Gallery exhibition on "America's Presidents," opens May 15 after a month long closure during which the writing about each president was changed to take out comments from the culture wars in the description of each President. The format includes extracts from farewell addresses, basic resume of life, education, accomplishments. For the recent presidents history's assessment is not known so that descriptions cannot be authoritative. For the presidents from an earlier period there is a sense of authority. For instance the presidency of James K. Polk- “The presidency of James K. Polk reflected his belief in Manifest Destiny,” begins one summary. Another is "Andrew Jackson campaigned for president as a self-made man." Previous descriptions were filled with controversial statements which have been corrected. “Andrew Jackson’s life was colored by struggle, conflict, and aggression.” The Washington Post says it now drops the omniscient judgment it is making which has caused controversy and quotes Jackson giving his own self-analysis: “’I was born for a storm, and a calm does not suit me,’ Andrew Jackson reportedly told a friend. This kind of omniscient judgement is seen at the National Portrait Gallery on Woodrow Wilson. It said- “Wilson is most often remembered as a champion of liberal values, but recent scrutiny has drawn attention to his regressive actions with regard to women’s voting rights and segregation in the government, as well as other violations of civil rights.” Is this fair to Woodrow Wilson who laid some of the basic foundations -for what was to come later with the efforts of Franklin Roosevelt -in setting up the fair conditions for working men and women in the industries of the day, the essentials of the modern economy? New wall text says Wilson supported the 19th Amendment guaranteeing women the right to vote. But it could have said more as these presidents from George Washington and Jefferson,Lincoln to Teddy Roosevelt, Wilson, FDR, Truman, Kennedy/LBJ, laid the foundations of the modern society and economy we have today, and its democratic parliamentary process, industrial development, higher standard of living than the rest of the world. One such laggard is the entrance to the Smithsonian Exhibition in Washington DC where Benjamin Franklin's efforts and achievements do not receive the recognition and admiration of the Nation's future generations of young people, with statements of this kind including race relations. It is not stated that Ben Franklin was the President of the Pennsylvania Society for the Abolition of Slavery. And little is shown about the 6 difficult 6 week voyages across the Atlantic ocean to London and France that secured the support of France critical for Washington to win in the deciding battles of the War of Independence; and signing the peace settlement with Britain that set up this glorious experiment with democracy that is ours now for 250 years. The current zeal to see things only from today's lens puts everyone at risk from the founding fathers to the eminent writers of America. For instance the media tends to exalt contemporary writers and ignores the writers that set America apart for its uniqueness and being exceptional for much of its 250 years. Too much of this mistaken view only makes one miss the significance of 250th anniversary of the Declaration of Independence, and what it means to the people of the world on different continents Asia, Africa and Latin America. Whitman and Longfellow are forgotten and were it not for some brave schools and teachers in public schools left out of the curriculum. Whitman has this to say about Longfellow- "Longfellow brings what is always dearest as poetry to the general human heart and taste, and probably must be so in the nature of things. He is certainly the sort of bard and counteractant most needed for our materialistic, self-assertive, money-worshipping, Anglo-Saxon races, and especially for the present age in America- an age tyrannically regulated with reference to the manufacturer, the merchant, the financier, the politician and the day workman- for whom and among whom he comes as the poet of melody, courtesy, deference- poet of the mellow twilight of the past in Italy, Germany, Spain, and in Northern Europe- poet of all sympathetic gentleness- and universal poet of women and young people. I should have to think long if I were ask'd to name the man who has done more, and in more valuable directions, for America." ...

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A view that there is more pain ahead and more failures of financial companies even after the Fed and Treasury's massive intervention the week ending September 19, 2008.

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It should be remembered as NHK points out that Mr. Obama never visited the Main Building of the Hiroshima Museum and only spent a little time in the East Building. It is the Main Building that Prime Minister Kishida- who represents Hiroshima City in parliament - wants Biden, Scholz and other G7 leaders to see. It is only in the Main Building that leaders can see the graphic images of the devastation of the atomic bomb dropped by the plane Enola Gay on Hiroshima.  A suggestion is for NHK to give a private broadcast to G7 leaders of the documentary already shown in Asia on NHK television last week.  Having seen it one can say that it in no way affects the use of nuclear deterrance. A suggestion for the Hiroshima Museum authority is for it to also show the devastation of Japanese bombing in Asia from World War II that  may have created the insular feeling in American public about the dropping of the bomb and only thinking it could have come sooner to save lives for the Allies, itself creating conflicting feelings and affecting mental health. A recent exhibition in Barcelona showed the Nazi bombing of Republican parts of Spain leading to millions of refugees crossing over to Europe. Similar situation happened in China and the images may have created America's insular feeling about the bomb dropped on Hiroshima. It is in everyone's interest to know, to comprehend the devastation in all places, the conflicting narratives that were told, and for people as spiritual values teach us to develop the virtuous conduct, the concentration and the wisdom that both the Bible and the Buddhist suttas teach Americans, Europeans and Asians. Something that was lost in the 18th, 19th and 20th centuries.    ...

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Greece prime minister Mitsotakis in this interview tells Reuters on May 15, that he hope the next four years will be years of rapid growth for Greece, but also one that will limit inequalities and make sure that Greece supports its most vulnerable. Greece was hit hard with higher energy costs after the war in Ukraine. It was not long ago in 2010 that Greece was daily in the news with reports of the eurozone debt crisis that affected Greece, Ireland, Spain. That crisis wiped out more than 25% of its GDP. He is credited with having managed the economy through the period after Syriza a rival party almost put Greece out of the eurozone. Lack of eurozone controls on debt of its members, lack of transparency in Greece's financial affairs were severe handicaps.  Today after a decade of austerity that it took to get its financial affairs in order including tackling over hiring in the government burreaucracy, lax financial controls, ordinary Greeks face high inflation and low incomes. Mitsotakis has raised the pensions and raised the minimum wage by 20% to 780 euros to help Greeks with the cost of living crisis. He has spent $50 billion euros in relief measures since 2020. Economic growth after reaching 5.9% in 2022 will slow to 2.3% in 2023. Mitsotakis addressed both Houses of the US Congress last year when Speaker Pelosi was in office. His image is dimmed somewhat by a surveillance of the Opposition ranks that was discovered recently and is covered in an accompanying article in the WSJ on May 19, 2023 shown on this page. The elections in 2023 are expected to bring Mitsotakis back in government with his party getting about 31% of the vote but lacking a majority in parliament. ...

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Strange as it may sound the retired coal power stations in Europe were back in operation and highly profitable during the COP26 Glasgow conference. Unknown to speakers at the conference calling stridently for complete coal phaseout instead of rapid phasedown including speakers from the European Union and from Tuvalu (population about 1500) this was happening not just in China but also in Europe. This was dictated by energy economics as coal prices have come down by half and natural gas prices have risen ten fold, and natural gas shortfall in Europe.  This report in the WSJ shows coal and lignite plants making huge profits for electricity companies in Europe. As a result the calls for phaseout were seen as hollow by China and India in the last days of the conference leading to the language change in the final agreement to "phasedown of fossil fuels." Natural gas producing power stations are losing 2.26 euros for every megawatt hour, compared to 57 euros per magawatt hour for coal powered power plants, 4 times as high as the previous highest levels in 2017, as reported in the WSJ. Estimates are for coal power stations to be more than gas rivals till 2023. Germany says WSJ still has highest level of addiction to coal and lignite. It generated 40 gigawatts of electricity from coal and lignite in September and October, the highest for these 2 months since 2018, Poland is doing the same exporting its coal based power to the rest of Europe. In the same way coal power plants that were idled are back producing electricity in Spain, Portugal and in UK home of the COP26 Glasgow conference.   ...

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The reference Bazooka man comes from Scholz's hard work putting together the 750 billion euro funding package to help German businesses and workers survive the coronavirus pandemic. At the time Scholz said-"This is the bazooka that's needed to get the job done. We are putting all our weapons on the table to show that we are strong enough to overcome any economic challenge that this problem might pose." Scholz gets high marks for his hard work during the Covid crisis as finance minister putting together the funding packages. This BBC report says Scholz chaired cabinet meetings when Merkl went into self-isolation as a precaution. BBC says it gave Scholz the platform he needed to go back to his roots as Mayor of Hamburg when he stood up for social cohesion and help for workers and families. Before he announced his SPD candidacy when asked if he would run he would say - "we need to work, not indulge in vanities." Scholz also played an important role in European solidarity. He was the lead architect with France of the European Union 750 billion euro recovery fund. This brings him strong praise from France, and also support from Italy, Spain, Portugal and other countries in the EU. French foreign minister Bruno Lemaire has praise not only for Olaf Scholz but also for his brother Jens Scholz, who airlifted 6 critically ill French patients to an hospital in Kiel. Says Lemaire "It really is a great German family." Scholz grew up in Hamburg, becoming a Socialist youth leader and studying labor law. He was Mayor of Hamburg from 2011 to 2018. In 1998 he entered the German parliament, the Bundestag.   ...

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An argument for the market economy is that it enables social mobility, so that persons willing to work hard and use talents can do better than their parents and move up in income level.  Yet this is proving to be wrong as there is less social mobility in developed countries, and even less so in developing economies. In the U.S. it would take 5 generations or 100 years, says this OECD report, for someone in the bottom 10% of earners to secure an average income. Even in a country like Denmark it will now take 2 generations or 40 years. In Colombia it would take 11 generations, almost as long as the country has been separate from Spain. Globally, says OECD, the social mobility was better before 1975. OECD's Gabriela Ramos, the chief of staff, says families and communities have been trapped since the 1980's at the bottom rung of the social ladder. In the U.S. 42% of men with low earning fathers end up in the same income level, much higher than the OECD's 31%. At the other end 48% in high income groups see descendents in the same group, similar in the U.S. and Germany. This the OECD says is bad for economic growth in the long run. This "broken elevator" is causing a backlash against the market economy and democracy, disturbing the social cohesion in society. The answer says the OECD, is to provide federal funds to make up for gaps in education so that access to higher education is provided to people on a broad level to include all parts of society. ...

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Labour party in Britain is removing a never used anti-labour minimum services law that tended to worsen industrial relations and make it difficult to negotiate and resolve disputes over wages and conditions. The minimum services restricted the ability of 5.5 million workers to negotiate wage increases- it affected ambulance services, fire and rescue, teachers and rail services, border security to take industrial action, by requiring that a minimum level of service had to be provided. It was adversarial in nature and Angela Rayner call its effect as "poisoning industrial relations." We’re consigning it to history,” she said. “Scrapping this toxic legislation is our first step in ending the scorched-earth approach that has blocked negotiation and compromise to resolve disputes and prevent disruption." “This government’s new deal will create a new partnership between business, trade unions and working people and is fundamental to our growth mission.” A White Hall (British Civil Service) source says it was never used, Business did not want it, the legislation never worked, and Britain still lost more days to strike action than France or Spain. He says "it is the first major step in terms of resetting our relationship with the trade unions of this government." Jonathan Reynolds the Secretary for Business and Trade says- "The strikes act has not worked; it was a gimmick which inflamed tensions and only made serious negotiations harder, ultimately harming our public services and economy. It is telling that no single business ever used this pointless legislation. Putting an end to costly strikes that impact people’s day-to-day lives is key to getting our economy moving again and ending the chaos for our public finances.” ...

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At the core 66% of people in the US, UK and in Germany, 77% in France, Italy and Spain  in Pew Research in 2024 see the need for big economic changes. Inequality increase are often automatically seen as correlated with deterioration in standard of living. However in practice cost of living concerns and opportunity to do something about it can move in the opposite direction to inequality increases. Cost of living can improve based on gas and electricity prices and access to housing with lower interest rates independent of whether government is or is not intervening in the economy. Some interventions may not work as in the supply side shocks in prices from Covid lockdowns or simply exhaust people's patience without sufficient timely correction. A disquiet index can also move in a different direction from inequality increases when cost of living raises disquiet levels for people, and cultural issues such as transgender in schools create  additional disquiet. Failure to get bipartisanship may leave inequality issues unresolved as happens with one group student loan borrowers stuck in repayment.  In this sense inequality is only one goal and can be elusive if the overall goal of reducing disquiet index are left unresolved. A better quality of life can be achieved in other ways- as with the effort for "a rising tide lifts all boats." This can include the ripple effect of international politics where issues spill over into the US creating cultural disquiet on campuses as happened in 2024 with Israel Gaza conflict. The interplay of local and international starts adding complexity that adds to disquiet index for people in all levels of society.   ...

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A review of the aid program for Greece done for European leaders meeting in Brussels on October 23, 2011, shows that most of the money sent to Greece has gone to pay off bondholders (mostly European banks that lent to Greece). For the initial bailout program of the European Union and the IMF in May 2010, international loans amount to $91 billion. Of this $52 billion has gone to repay bonds that came due between May 2010 and September 2011, according to this review. The report was prepared by the European Commission in coordination with the IMF and the ECB. Greece owes over $300 billion dollars and Greece's borrowing extends far beyond the country's size and ability to repay, creating extraordinary risks to the financial system in Europe. The initial bailout program based its lending on little or no haircuts for the bondholders, who are mainly the European banks (mostly French and German banks) that loaned the money, which creates another set of risks, and a logjam, because taxpayers in the stronger financial countries such as Germany are equally adamant on not paying for the excess lending of the French and German banks. The financial leaders in Germany, Finance Minister Schauble, Axel Weber, the former head of the Bundesbank, and other prominent financial experts have also adamantly insisted on following prudent financial practices, and are opposed to using the European Central Bank to buy the sovereign bonds of France, Italy and Spain....

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Spain's newly elected prime minister, Mariano Rajoy, appointed Luis de Guindos, a former deputy finance minister in the governments of prime minister Jose Maria Aznar during 1996-2004, to be the new finance minister. Guindos is not a member of the governing Partido Popular, and is perceived as independent in Spain. A new Budget ministry was added, to be headed by the Partido Popular's economic spokesman, Cristobal Montoro. Montoro was formerly a budget minister in the Aznar government. Jose Manuel Garcia-Margallo, member of the European parliament for 17 years, will head the Foreign Ministry. Madrid's mayor, Alberto Ruiz-Gallardon, who has wide appeal, will be the new Justice minister.

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The problem of poor competitiveness in Greece which is stifling the economy. A recent analysis by research firm Variant Perception based in London, shows severe pricing distortions in the Greek economy. The cost of labor in Greece from 2005-2010 was, on average, 25% higher than in Germany. And small business is muffled by the bureaucracy and old rules and restrictions. Compared to Greece, Ireland, Portugal and Spain have lower labor costs. This increases the trade deficit for Greece. Greece has one of the highest number of lawyers per capita in the world, one lawyer for every 250 people compared to 272 in the US.

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The U.K.'s deficit in trade in goods widened to 8 billion pounds in January 2010, even with the 25% decline in the value of sterling against the dollar and the euro. This suggests that devaluation is not likely to help rebalance the economy and things will have to be adjusted the hard way in the manner being done in Greece, Ireland and possibly Spain with cuts in spending. In the past the devaluations were accompanied by drop in interest rates, but this time interest rates are already low. And the U.K.'s weak manufacturing and excessive reliance on financial services does not help in boosting exports.

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Faces of ordinary Argentines in Buenos Aires, as Argentina faces high inflation following a devaluation of the peso by 17% in early 2014. Argentina has faced recurring crises of devaluation of the currency and high inflation, in 2001 and a decade earlier under president Alfonsin, and in periods stretching back to the period after independence from Spain. Brazil had recurring bouts of inflation and devaluation of the currency which was followed by a buildup of foreign currency reserves during the recent boom in commodity markets. This has helped Brazil keep inflation under control, better than the situation facing Argentina with much smaller currency reserves.

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Sluggish sales of GM cars in mature markets like Germany and in markets with exacerbated credit crunch like Spain lead to decliing sales for GM's Opel brand in Western Europe. GM announced that sales in western Europe declined by 11% during the first three quarters of the year. The Opel brand is the higher margin brand for GM and is prominent in western Europe. Its Chevy brand is prominent in Eastern Europe and these sales increased by 43%. In Russia the mood is uncertain as September sales for Chevy declined by 2% and Ford's sales slipped 13%. GM's shares dropped 19% on Thursday October 9 to $5.57.

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Merkel tells a Davos meeting in January 2011, that "the euro is much more than a currency, it is the embodiment of Europe today." The idea of the euro as needed for the political and economic integration of Europe is accepted. Merkel also says "that "solidarity and competitiveness are two sides of the same coin." Suggesting that the slower economies in Europe will have to remake their economies, just as East Germany did when it joined a reunified Germany. Mathias Dopfner, CEO of Axel Springer, says Merkel knows from personal experience the traumas faced by a bankrupt economy. At the time of reunification the deutsche mark would become the national currency, even though the value of the mark reflected productivity levels and the strength of the economy of the western part. East German businesses were priced out of the job market. About 14,000 businesses were shut down and 4 million jobs were lost in the first five years after formal reunification in 1990. Unemployment jumped to 20% in East Germany in 2005. After the fall of the Berlin Wall two million people of the 16 million living in the East moved west, most of them younger people. For West Germans there was a price also. Germany has raised 1.7 trillion euros through an income tax "solidarity surcharge" for modernizing East Germany. Volker Perthes, director of the German Institute for International and Security Affairs, says Merkel knows what resistance and what dangers come with structural adjustment programs. And she has to sell the programs and insist on strict conditions for German aid to Portugal, Spain and Greece. After many years the project has paid off. The unemployment rate in the east is 11.7%, much closer to the 6.4% in the west than before, and the growth rate in the east is 2.7% compared to the 3.6% in the west. The antiquated industrial base in the east has been replaced with a solar power sector and new chemical engineering and microelectronics industries....

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This editorial in the WSJ shows a different view of the passage of the $280 billion semiconductor bill in the US Congress and the Biden Schumer negotiation for the $369 billion climate change and tax bill that was done at rapid pace in the span of 24 hours. It sees this from the view of the Republican party that hoped to present president Biden as a failure, unable to tackle inflation or achieve much for action on climate change, renewable energy, and building America's supply chain.  All this is happening quickly and shows the value of patience and persistence, and faith in the ultimate fairness of the American cause during a difficult time of war in Europe and rancor at home. It is not that 17 Republican Senators got played as the WSJ puts it, they voted for the $280 billion semiconductor bill on its merits and their ultimate faith in the fairness of the American cause and faith in America's workers and families, in its people. ...