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This New York Times editorial asks whose side the Republicans are on when they try to water down needed financial reforms. Are they simply speaking for the banks who stand to lose billions of dollars in profits through unregulated derivates trading but increase systemwide financial risk. The NYT supports senator Blance Lincoln, an Arkansas Democrat who is chairwoman of the agriculture committee, and who took a strong position in favor of controlling derivatives. Her proposal requires nearly all derivatives be traded on exchanges with exemptions only for unique contracts which would be supervised by regulators, and for a strictly defined group of companies with specific purposes.

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Russian president Putin tells Russians at an annual news conference on Dec. 17, 2014, that the West wanted to deprive Russia of its natural resources. He says steps taken by the central bank and his administration were proper, including avoiding capital controls, except that the decision to raise interest rates to 17% in mid-Dec. should have been taken earlier. He deflects criticism that the sanctions and the decline in the ruble were "payment for Crimea" (Russia's takeover of the Crimea) by saying it was "payment for our independence, our sovereignty." Putin expressed unease with the expansion of NATO to Russia's borders. He told Russians to expect that the crisis will last for 2 years and during this time the Russian economy will adapt, in particular shifting its heavy dependence on oil exports. During the 10 years of the Putin administration since 2004, Russia has not made a vigorous effort to diversify away from oil dependence. Progress was made primarily in better integrating the economy with the European Union, entry into WTO, building a sovereign reserves fund, until the crisis in Ukraine. The Putin years may be seen in the future as the transition years towards a more diversified economy, and may lead to a shift away from the kind of management of economic and foreign policy by a single leader that may have led to the disruption in relations with Germany, a critical economic partner for Russia. Chancellor Merkel said Germany would continue to support sanctions as long as Russia opposed the right of self- determination of people in Europe and European values. Germany continues even now to maintain dialogue with Russia through Social Democrat Foreign Minister Steinmeier, which is why Putin continues to refer to it as "our partners" and cites the differences with our partners, very different from the Cold War period when no such close relations with Germany existed. ...

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The Saudi increase production but only by a modest amount of 300,000 barrels a day. President Bush meets the Saudi king in Riyadh, Saudi Arabia and with Al Naimi, the Saudi oil minister. Pressure is increasing in Congress as some Democrats are calling for sanctions against the Saudi government. The Saudi position is that they will increase production only if the refineries demand it. Odd position because refineries are not going to increase demand as long as they have to pay higer prices for crude oil and their margins are shrinking from higher oil prices- this is true of the independent refiners like Valero and Tesoro.

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U.S. president Obama repeatedly compared the Iran nuclear deal vote in Congress to the 2002 vote to authorize the war in Iraq under president George W. Bush, in a speech at American University. President John Kennedy made a speech on a strategy for peace at American University in Washington D.C. on June 10, 1963, offering negotiations as away to a comprehensive nuclear test ban treaty with the Soviet Union. Obama said the "choice we face is ultimately between diplomacy or some form of war." The nuclear deal faces bipartisan opposition in Congress on grounds of weak verification, doubts about Iran's intentions, lifting of a weapons embargo including ballistic missiles, and lifting of economic sanctions with snapback seen as unrealistic, and support limited to Democrats in Congress. Compared to the speech by Kennedy which was hopeful- " in the final analysis, our most common link is that we all inhabit this same planet. We all breathe the same air. We all cherish our children's future's. And we are all mortal." It was also a response to Soviet Union's head Nikita Krushchev's letter to Kennedy of Dec. 1962 following the Cuban missile crisis in October 1962, saying "the time has come now to put an end once and for all to all nuclear tests." Compared to the enthusiasm with which the Kennedy speech was received, the Obama speech brought up the divisions of the wars in Afghanistan and Iran, in which many Democrats including Senator Hillary Clinton voted to support the Iraq war, and missed the power of president Kennedy's (and Krushchev's) words of 1962. The last minute inclusion of a lifting of an arms embargo including ballistic missiles," created doubts about Iran's intentions in the U.S. Congress, unlike Kruschev and Kennedy's decisive response on the nuclear issue which led to the Nuclear Test Ban Treaty. The condition agreed to that the Iran nuclear deal of July could pass with only one third of Congess supporting it- based on a presidential veto if Congress did not approve it with a two thirds majority- created the prospect of the U.S. moving ahead on a major foreign policy issue with only limited support....

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The southern U.S. which was early to reopen the economy after the lockdown with some states having only partial lockdowns, is emerging from the coronavirus in much better shape than the rest of the U.S. The unemployment rate fell to 6.9% in August, the lowest of any region. The number of people employed was only 6% lower in August than in February, when most of the U.S. went into lockdown, compared with declines of 10.6% in the Northeast, 8.2% in the West, and 7% in the Midwest. Some of this was a result of aggressive reopening in Texas and other southern states. Overall deaths in the south were 60 per 100,000 people compared to 132 in the Northeast including New York and New Jersey, Midwest at 52, and West at 40. The Northeast numbers are high because of the elderly in nursing homes hit hard in New York and New Jersey.  In the southern states by comparison the deaths came later and among young people taking risks. The virus hit the northeast early and parts of the midwest, southern states had the advantage of some of the work already being initiated in March to fight the virus nationwide. Many of these states are also Republican and residents feared the virus much less. Republican Governors followed their instincts and aggressively reopened putting the economy first. The numbers tell the story. In South Carolina 44% of Republicans say they aren't afraid of the virus outbreak in the local area, compared to just 2% of Democrats, according to Civiqs poll. Georgia and Florida have similar numbers, all with Republican Governors. One factor favoring southerners is that cities in the south are much less dense and less populated than in the North and West. Smaller cities than Los Angeles and New York. ...

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BBC News provides a look at the first proposals of the Boris Johnson minority government to the European Union. This includes replacing the Irish backstop. The Irish backstop is a way set up by the EU and the previous UK government of prime minister May in negotiated agreement to prevent a hard border in Ireland. It means Britain would remain in the customs union with the EU after December 2022 if no agreement for withdrawal is reached by then. Conservative Party hard liners oppose it because they say it leaves the UK indefinitely in the customs union. The EU insists on this to protect the interests of a member state Ireland. The moderates in May's Conservative government agreed to it to keep the peace accord in Ireland. Boris Johnson wants to get rid of it, and his proposals include customs checks between Northern Ireland and Ireland which removes the free flowing border between the two Irelands, a major achievement of the Irish peace accords.  Which is why the negotiations could end up going nowhere, with each side presenting the other as the side that wouldn't negotiate terms of withdrawal. The Liberal Democrats and the Scottish National Party, and the Labor Party except for its leader Corbyn's neutral stance, oppose leaving the European Union. And parliament opposes leaving without a negotiated agreement pitting Boris Johnson against parliament and the opposition.  Another referendum or a general election would settle the issue with Boris Johnson thinking he can flip former safe Labor seats in working class areas in the north of England to win the election. Labor party's McDonnell says he has miscalculated and Labor party is buying time to organize an effective election campaign to get back the working class vote lost under Blair with his confusing Third Way that lost workers on the way.   ...

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Seib points out that Deficit Commisssion chairmen, Bowles and Simpson, have jolted the Republicans and Democrats with their carefully prepared recommendations. The other members of the 14 member commission cannot now dodge easily the responsibility of taking up the unpopular steps. And Republicans and Democrats have to wake up to the need for taking bold steps. No longer is it easy to postpone deficit issues by making glib talk and not taking action.

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Peter Altmaier is director of the chancellery in Berlin, and is the person closest to Angela Merkel. This report in the Economist points out that Altmaier has played a critical role in steps taken by Merkel- as chief whip in parliament for the CDU during the Greece financial crisis and bailouts, as environment minister implementing the program away from coal based electricity, and in negotiating deals such as the deal with Turkey on refugees, and now with Brexit negotiations. Merkel has asked Altmaier to write her manifesto for the September 2017 election. A member of the CDU's liberal wing, Altmaier is known for being a scholar on German history, especially Bismarck, and a workaholic. Here he is mentioned as a bridge maker for the CDU to the Greens Party and was part of a group of CDU and Green Party politicians who met at an Italian restaurant in Bonn. As the moderates are now dominant in the Greens Party, a CDU coalition with the Greens could be shaped by Altmaier if the election results move in that direction. ...

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The German Chambers of Commerce and Industry President Heinrich Driftmann told reporters in Berlin that the new government should overhaul the tax code and improve credit access for companies. The German chamber wants to see changes to the corporate and inheritance taxes. He said that even if it was considered taboo companies needed more flexibility in the labor market. Merkel has promised labor unions that keeping social protections will be a priority in her administration. Economists say it will be difficult to cut taxes because unemployment will rise to 11% in 2011 as Germany's economy contracts 5% this year, and this will mean less tax revenues and increasing costs for social spending.

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A charm offensive is under way following the New York primary led by Mr. Manafort to show the Republican National Committee (RNC) Trump is just "playing a part" and has another demeanor. Wiley points out that Trump would appeal to traditionally Democratic states in the midwest that have working class Reagan Democrats. This follows a parallel effort by Trump presenting an election narrative to draw voters by saying that the system is rigged, first banking, then trade, now the way delegates are chosen, to increase voter support at a time when voters have genuine concerns. Yet the fact that Trump won 90% of the delegates with 60% of the vote in New York, provides proof that it is not, says Vince Preibus, RNC chairman. Others point to the splintered vote in the early primaries as disproportionately benefitting Trump, as well as the media coverage for sensational statements, and jingoistic talk about China, Mexico and Muslims.

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After intense efforts German Chancellor Merkel was able to pass legislation expanding the EU bailout fund with the support of members of her coalition in Parliament. The opposition Social Democrats and Greens supported the legislation. Merkel carried the vote with a 4 vote margin from her CDU-FDP coalition. Fifteen members of her coalition voted against the legislation. This increases the bailout fund's lending capacity from around 250 billion euros to 440 billion euros. There is considerable skepticism among members of the German parliament about whether this will work. German guarantees for the European Financial Stability Facility (EFSF) increase to 211 billion euros from 123 billion euros under the new legislation. German finance minister Schauble ruled out borrowing by the EFSF from the ECB and leveraging EFSF funds in the process. The fear for German policymakers is that this would lead to Germany losing its triple-A credit rating and create its own risks. Experts have cautioned against the use of leveraging because of the financial risks....

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The new fiscal 2012 budget proposed by the Obama administration projects this years deficit will reach $1.6 trillion. This includes the renewal of the Bush tax cuts and the temporary cut to the payroll tax that was part of the tax deal reached in December 2010. This is up from the $1.3 trillion deficit in 2010. At this time both the Democrats and Republicans are choosing to leave Medicare and Social Security out of the picture as they deal with the 15% of total spending that is discretionary and unrelated to defense and security. Both parties are hesitant to propose changes to the popular Medicare and Social Security programs without getting the other party to join in the proposed changes. As this could affect voters perceptions. Social Security, Medicare and other entitlement programs will take up 60% of all federal spending or $2 trillion next year, not counting the interest on the federal debt, according to the Congressional Budget Office.

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Voter awareness and discomfort about the $1.6 trillion deficit this year, does not translate into wanting to see spending cuts in Medicare, Social Security and popular programs. It is the view of public opinion that is determining political leaders inaction on these issues, which are at the heart of controlling spending and the deficits. It is no surprise then that the Obama budget showed no action on these issues. Both parties are careful not to talk about cuts to popular programs without broad public support. The Pew Research Center survey shows 12% of Americans want to cut spending on Medicare or on Social Security, only 6% want to reduce spending on veterans benefits. Politicians can do the math from these numbers. They may be sending loud signals to Democrats and Republican politicians that voters will punish those who cut these popular programs. Polling done by the Wall Street Journal and NBC News produced similiar numbers.

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This Washington Post editorial says Obama and the politicians, both Democrats and Republicans, want something for nothing. The Ryan budget, Obama's health care plan, all require paying for it with higher taxes, but the mention of the word "tax" is the last word any of the politicians will say. These comments come as the U.S. Supreme Court considers the mandate that young Americans and others be forced to pay for health care along with the rest, as required by the health care mandate, with the idea of keeping costs down. The idea of getting something for nothing was also emphasized in an op-ed in the WSJ, March 29, 2012, by Mayor Bloomberg of New York City, where he called for letting the Bush tax cuts expire for all income groups, and an up or down vote in Congress on the Simpson-Bowles deficit reduction plan, as part of a two step plan.

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Local elections for 181 local councils in Britain in April 2012 show the toll taken on the Conservative party led coalition government of David Cameron from austerity measures and general dissatisfaction with the government. The Conservative party Mayor of London won the election in London over Labor's Ken Livingstone, with a slim majority, largely determined on personality issues. Throughout Britain the Conservatives lost seats in local government. BBC projections with most of the votes counted show Conservative share of the vote dropping from 35% to 31%, Labor moving up from 35% to 38%, and the Liberals remaining at 16%. Labor gained 823 seats, Conservatives lost 405 seats, and Liberal Democrats lost 336 seats. Voter indifference was shown in the voter turnout at 32%, the lowest since 2000, according to the BBC. Cameron said he would continue with his austerity program and cuts in spending, saying "these are difficult times, and there aren't easy answers."

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Germany's finance minister, Wolfgang Schauble, says Germany can move faster than expected to allow shared liability of eurozone debt. He also accepts the need for short term measures such as the European Stability Facility buying bonds of Spain and Italy in private markets to drive down yields. Schauble indicated this flexibility in an hour long interview with the WSJ on June 27, 2012. This comes after Angela Merkel's remarks made in talks with coalition partners the Free Democrats that she would not accept any mutualization of debt in the eurozone in her life time. Schauble reiterated his view that before joint liability of debt can take place there has to be a joint EU fiscal policy, and sequencing was critical. He called for a EU fiscal commissioner arrangement for reviewing EU member budgets and policies. At the same time he said Germany was open to some level of mutual financial support between members of the eurozone, under the right conditions.

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The U.S. Federal Reserve begins to scale back its quantitiative easing stimulus for the economy in December 2013. Ben Bernanke announced the Fed will cut back on purchases of Treasury and mortgage backed securities from $85 billion to $75 billion in January 2014, and gradually taper the purchases down to zero by the end of 2014. The Fed will also strengthen its plan to hold short term interest rates near zero to provide additional support because of weakness in the economy. This sets out a plan for the next two years with the first increases for short term interest rates not till near the end of 2015. This removes uncertainty in the economy and the stock market responded with a 1.7% increase after the announcement by the Fed fllowing a 2 day meeting. The Fed's announcement coincided with the Senate passing the Ryan-Murray compromise bill that provides an agreement between Republicans and Democrats on the budget, removing risks of a debt limit standoff in 2014.

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Senator Daniel Inouye, Japanese American from Hawaii, is the second longest serving U.S. senator in its history. He came to Washington in 1959 as the first Japanese American elected to Congress. He was elected senator from Hawaii in 1962, and he has served over 50 years as U.S. senator. As a premedical student at the University of Hawaii, Inouye decided in 1943 to join a Japanese American regiment, the 442nd Regimental Combat Team. He was wounded in Italy and received the Distinguished Service Cross, Bronze Star Medal and the Purple Heart for bravery. He met Bob Dole in a military hospital in Michigan and both senators followed a path of law school and service in the Senate. Inouye attended George Washington Law School graduating in 1952. In 1955 Democrats swept out the Republicans in Hawaii who controlled state politics and were tied to the sugar interests. Inouye was elected to the state legislature that year and went onto the U.S. Congress.

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The Obama Stimulus Plan of January 2009 was passed in the House by avote largely on party lines of 244-188. The Democrats have a 255 to 178 advantage in the House. Before the vote Mr Obama met with business leaders at the White House including Sam Palmisano of IBM and Cote of Honeywell. Cote said these are not times for timidity, thank god you are not a timid man. And later told Bloomberg News, that the need was urgent to move ahead and not wait any longer to get it passed and into action, because the situation was deteriorating with more layoffs announced this week by a number of companies. For his part President Obama said quoting Justice Brandeis that the best disinfectant is sunlight. To ensure transparency and effectuve use of the money the information on the spending will be posted on the internet for the public to see and monitor.

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Gigot personally faced the brunt of attacks from Countrywide's Mozilo and of Fannie's Raines and of Freddie Mac as he had his reporters look into the workings and shady things that were going on at Fannie and Freddie. Here is his personal account of how it all started and how anybody who raised any questions about these companies was given a lot of trouble by these executives and their lobbyists and the people whose support they bought with donations in Congress and in the political setup, all so that the executives at Fannie, Freddie and Countrywide could enrich themselves. In the end both liberal democrats and countryclub republicans shamelessly supported Fannie and Freddie upto the end when their dishonesty and failure was clear for all to see says Gigot. Says a lot about the political system, its only guarantee for good sense and honesty is in the quality of people and their courage, as leaders so often fail in so many basic ways.

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The Labour leader and prime minister of Britain met Donald Trump during a trip to speak at the UN General Assembly in New York on September 26, 2024 Starmer has misgivings that Trump may withhold support for the United Nations and its framework for maintaining peace in the world, and tackling issues of development and climate change. Britain's leader Starmer told the UN General Assembly- "People talk about an age of polarization, impunity, instability and an unraveling of the U.N. charter. And I feel a sense of fatalism has taken hold.” “But our task is to say no … This is the moment to reassert fundamental principles and our willingness to defend them. To recommit to the U.N., to internationalism, to the rule of law.” With Macron's shaky coalition government in France, and a coalition government in Germany with less popular Greens, FDP and Social Democrats, Russia engaged in a conflict with NATO in Ukraine, Starmer speaks for Europe at an important time to recommit to the UN Charter and uphold the principles of the UN for the betterment of mankind. ...

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Michael Barnier was the candidate for Les Republicains. Macron's Movement Renaissance party is closest in thinking to the Les Republicains, the party of De Gaulle. He was appointed prime minister of France by Macron. Barnier had proposed a strong policy of turning off non European immigration for 4 years, and not allowing relations of immigrants within the country to come in. This immigration policy is becoming accepted in Europe among the socialist parties. In Denmark socialist prime minister Mette Fredriksen was elected with policies for the working class and unions but opposed to migration on grounds that it hurts the working class. France, Germany are shifting in this direction after overburdening of social services, and crime by migrants. The US is also shifting in this direction for both Democrats and Republicans with Biden policy to close the Mexican border. This ends a period of relative tolerance which set back goals of workers and their families for a decade or longer as anti migrant parties used the protest vote to oppose worker rights and shifted the economy into the hands of pharma, oil and tech companies, billionaires in the US, UK and Europe at the expense of workers, middle class, and students.  ...

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ProPublica Report that shows taxes paid by Warren Buffett of Berkshire, Jeff Bezos of Amazon, Michael Bloomberg of Bloomberg, Soros of financial business, and Elon Musk of Tesla. This report put out by Americans for Tax Fairness shows tax rates of a group of 25 such business persons at 3.4% on wealth growth between 2014-2018 of $401 billion. This is not to say that Democrats or Republicans can be elected to solve this, which is basically a problem not of fairness but of how it enables underfunding of America's basic infrastructure of health, education, transportation, and public services such as parks, clean air, and renewable energy, energy grids, water supplies, heating infrastructure, on and on on the list. Why because the difference between a modern industrial base country and a backward, lack of industrial base country is just this list. When the companies also unfund maufacturing in the US as Apple does by making almost  all products overseas it means lossof manufacturing knowhow and loss of leadership of the free world which simply means chaos without America's leadership based on its founder's values.   ...

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What Obama faces in Congress, Pelosi, Schumer, Miller, Waxman, Conyers, Stark and others among the Democrats.

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The federal German minimum wage passed into law of 8.50 euros or about $11.60, is closer to what it should be in the U.S. than the $10.10 in the Democrat proposal, says this editorial in the NYT. The new minimum wage goes into effect in Germany in 2014. It is meant to counteract the trend of a growing number of workers who are not covered by wage agreements between labor and business in Germany. An increasing number of women are doing low wage jobs in Germany, and the number of workers in part time jobs with lower wages has increased as German labor union exercized restraint on wages in the last decade.