LyrArc Article Gist
The WSJ editorial supporting the former WSJ Detroit Bureau chief's position on the editorial pages on November 10, 2008, asking the Bush administration to turn down any request from Congress or the president elect to turn over TARP funds to the automakers. The automakers have problems of not being competitive and making the cars that people want for decades, handing out taxpayer billions will not solve this, and will only postpone the day of reckoning says the WSJ editorial. The union goldplated contracts and things like the Jobs Bank never made sense and neither the union or management acted responsibly. The best thing now it says is to let the shareholders lose whatever value is left, cancell the contracts, and put the companies in government receivership, letting go the old management and the boards that let these companies get to this sorry situation. This is not a time for politics as usual, and if the new administration wants to do it let it do it on its own political dime says the WSJ. ...

LyrArc Article Gist
Deep polarization is seen also in South Korea. Policy issues are not being discussed with eligible voters divided evenly among progressives in their 40's and 50's and conservatives over 60 years, and about 20% of the voting public that are independents and younger voters deciding the elections in South Korea. As in the US cost of living is an issue, down to the price of onions of which president Yoon is seen as not paying attention to. Conservative People Power Party of president Yoon is expected to gain only about 100 seats of 300 seats in the National Assembly in the parliamentary election in South Korea. Yoon won in a tight race with Lee a candidate from the Liberal Democratic Party in 2022, which is expected to win about 200 of 300 Assembly seats. Yoon is building a close relationship with the US and Japan and visited the US for talks with Biden. The election is not expected to affect the close relations of US with South Korea. It reflects the polarization in South Korea, Yoon's effort for corporate tax cuts may not go through. The opposition has made allegations of corruption and abuse of power, and the cost of living, as campaign issues. About a third of 44 million eligible voters have cast votes. Younger voters and moderates appear not to trust Yoon. ...

LyrArc Article Gist
After Macron and Merkel flatly reject Britain's appeal for direct talks, Mr. Boris Johnson says it is now looking "very, very likely" that Britain will leave the European Union without an agreement. Johnson said this was a potentially "wonderful" outcome. Both sides want to be seen as not responsible for the failure of the talks. The stumbling bloc is the adherence to EU rules which Britain rejects as infringing on its sovereignty, and EU's fears of Britain relaxing its environmental and other rules to gain unfair competitive advantage in business.

LyrArc Article Gist
Keir Starmer of Britain gets the support and good wishes of Modi, Trudeau and Albanese in the Commonwealth, and of Scholz in Germany and the European Union, after his landslide win. Scholz said in Berlin of Starmer: "I know Keir Starmer personally. We have often met and spoken with each other. He will be a very successful prime minister, of that I am convinced." Spain's Sanchez talked about working together based on "the values we share." And Trudeau of Canada said "lets get to it my friend."

LyrArc Article Gist
Higher inflation in Germany could help rebalance the German economy by increasing imports. German inflation has averaged 1.6% since 1999, compared to 2.0 % for the eurozone. It was 2.3% in December. And after years of wage restraint German unions are increasing the wage demands. IG Metall is looking for a 6.5% wage increase. And interest rates at 1% are quite low for Germany where unemployment is down to 5.5%, according to Eurostat, and employers have to meet higher wage demands. The ECB is aiming at 2% inflation and Germany has a 26% weighting in the calculation of the rate. But as Italy, France and Spain see inflation decline there is room for addditional inflation in Germany before the eurozone goes well above the 2% inflation rate. By freezing wages and improving price competitiveness with German products, other countries could increase exports. Yet the prospects of this making a large difference is limited because German companies are likely to push for wage restraint. The Bundesbank predicts wage increases of 2.4% in 2012. Over time the wage restraint in other eurozone countries and even slightly higher wages in Germany would reverse the trend since 1999 of Germany having much lower inflation, and this could be one of the factors helping in rebalancing....

LyrArc Article Gist
Boris Johnson, who heads a minority government in Britain following resignation of Theresa May, will do just about anything to push Britain out of the European Union by October 31st. He has said he would "rather be dead in a ditch" than ask for an extension of the October 31st deadline. The British parliament is dead set on preventing that and has passed legislation requiring a extension of the October 31st deadline to January 2020. Johnson is even willing to go to jail for breaking the law, on the grounds that he is simply supporting the people's referendum choice over an elected parliament. This is itself a strange situation because the elected representatives in parliament decide for the people, and views in a referendum can change over time. Johnson says the reports of Britain's economy taking a blow from simply falling out of the European Union without a negotiated deal are exaggerated. He even once said all it means is that there might be "a shortage of Mars chocolate bars." Before becoming prime minister with a one vote majority in parliament which he promptly lost on the first day parliament met, Boris was a journalist who was elected Mayor of London. His only other position was for a brief period with controversy as Foreign Secretary in Theresa May's government. By taking in as chief adviser the head of the Brexit referendum Leave campaign Mr. Cummings, Mr. Johnson shows he believes he could win a general election with a carefully orchestrated campaign like that of Leave that blames the Labour Party, and the Scottish National party for stopping Brexit and halting the people's mandate.  The question is whether Cummings has gone too far or Boris Johnson has gone too far using Cumming's methods and views. Many Conservative moderates were expelled from the Conservative Party by Johnson and Cummings leaving the Conservative Party in self-destructive mode and the worst shape it has been in its history. It is not clear that after 10 years of austerity and rule by the Conservative party, and the mess from the single minded pursuit of Brexit that has overshadowed Britain's other priorities, that the British public would simply give a broken Conservative Party another mandate without thinking carefully about all the consequences. More so amid the lack of trust that is a feature of the Boris Johnson minority government.  ...

LyrArc Article Gist
With the 15% mandated cuts to energy use in the European Union countries and the shutoff of Russian gas supplies, three remaining German nuclear plants can be run for an extended period to take off some of the strain on the German economy. Sentiment for nuclear power is changing in Germany. A Spiegel opinion poll is cited in this WSJ editorial that shows 78% of Germans favor keeping the three remaining nuclear plants operating till summer 2023, and 67% say it is a good idea to keep them running for 5 years.  The issues of nuclear vs solar, or coal and gas vs solar is not a yes or no proposition anymore as shown in the negotiated measures to allow some coal and gas operations in the US in the Biden Climate Change bill that passed the US Senate on August 7, 2022. This is not merely a concession to a fossil fuel dependent state (West Virginia) and Senator Manchin, this is a realization that the transition can be better managed economically and the same results for renewable energy and climate change emissions goals can be met with a carefully planned  strategy that allows for LNG exports to Europe, and fossil fuel production flexibility in the face of the embargo on Russian fossil fuel supplies. ...

LyrArc Article Gist
Life for ordinary people in the GDR meant living in a communist state but for ordinary people it also had its good points, as shown in this report on the German Democratic Republic that lasted from 1949 to 1990. Female participation in the workforce was 90%. It was the most developed state in the bloc of countries led by the Soviet Union. Ownership of fridges or refrigerators was twice that of the western nations. Till 1989 the East German state known as GDR was accepted as a socialist workers state even by people in West Germany called the Federal Republic. Its collapse so quickly was not expected and was a result of a chain of events in which eventually no one was in control- a totally spontaneous collapse of a socialist state. For east Germans 33 years later it is still a difficult event to grasp as the collapse of the socialist state led to most of the young population moving to western germany leaving behind an aging population without the economic security for workers that prevailed in the former GDR socialist state. As a result even after billions were spent on integration east Germany never adapted to the change, and still feels separate from the rest of Germany, and people feel looked down upon. ...

LyrArc Article Gist
Exxon is looking for a big oil dealer in the shale patch in the US. It is considering the acquisition of shale company Pioneer Natural Resources with a market cap of $49 billion. Exxon wants to make use of its windfall profits of the last year to good use. An acquisition of Dallas based Pioneer would give Exxon a dominant position in the West Permian basin of Texas and New Mexico. Exxon made windfall profits of $56 billion in 2022 after the jump in oil prices following the Russian invasion of Ukraine. Based in Irving, Texas, it is heavily invested in fossil fuel assets and its thinking is that fossil fuels are here for a long time as it has not made a significant shift to renewable energy. During the cutoff of Russian oil supplies Europe has depended on LNG supplies from the US and Qatar, and on Norway for increased oil and gas supplies. President Biden included drilling concessions in some of the legislation passed in Congress and Conoco plans to drill in Alaska. The transitional period has gained support in places like the US and Norway following the need to support the European Union and Germany in the crisis. This gives oil companies some time to sort out their future plans for renewable investments. ...

LyrArc Article Gist
Russian president Putin may have exacerbated the very thing he feared- a deepening demographic crisis in Russia. This report in the Financial Times says excess mortality was already one of the highest from the coronavirus- about 1 million compared to official figures of 360,000. During the 1990's Russia had gone through a demographic decline with fewer births after the fall of the Soviet Union and unstable conditions in the economy.  During the pandemic there was outward migration from Russia as a result of people wanting access to vaccines other than the local vaccine, says FT.  In an interview last November Mr. Putin talked about the dangers to Russian statehood and to the economy from a drop in births and falling population. The war has worsened this situation as the FT says about 70,000 highly educated people left the country in March and another 70,000 are expected to leave in April. The response of Europe and the US to the Ukraine invasion with moves that affect the Russian economy could lead to drop in jobs and living standards that lead to a further drop in births, says FT. This may be a more serious way in which Mr. Putin may have neglected to consider Russia's own long term interests in invading its neighbor.   ...

LyrArc Article Gist
A Kyodo News poll shows about 60% of Japanese want the Olympic games cancelled. Japan faces another wave of the pandemic with a surge in Osaka and other cities. The government's handling of the pandemic is disapproved by 71% of Japanese in a Kyodo News poll. Over 80% are unhappy with the slow vaccine rollout.   India faces a surge in cases public dissatisfaction that is similar to Japan and other countries in Europe. France and Germany have a slow vaccine rollout. In India vaccination drive is affected by a lack of supplies as in France and Germany with shortages of vaccine. The European Union in April signed contracts for over a billion doses with Pfizer and India has plans for ramped up supply of its Covishield and Covaxin vaccines to 2 billion doses by December 2021. This shows how difficult it is for advanced countries and major pharmaceutical producing countries such as as India to vaccinate their populations quickly in the initial stages of the vaccination effort. In July the vaccine effort would be in its 7th month and vaccine supply constraints are expected to ease as a result of aggressive action by governments in EU, France, Germany and India. This will also enable addressing needs in Latin America, Africa and South East Asia. ...

LyrArc Article Gist
Roger Mosey who worked as Director of BBC News, left BBC News in 2013 and is now the master of Selwyn College, Cambridge. Here he describes the problems the BBC faces and tasks facing it under its new director general, Tim Davie. Mosey sees the need to move power out of London. He is critical of the way the BBC has tended to narrow in its views and its failure to reflect the sentiment in the whole country for Brexit, attitudes towards the European Union, and also in its failure to reflect the sentiment in favor of Boris Johnson's "Get Brexit Done" stance. In recent coverage Mosey says the BBC has not covered both sides of the story in the taking down of statues of Robert Clive to try to educate readers of who he was what happened and why there are different views on this in Britain, opting instead for following what is popular at the moment. He sees BBC as patronizing ordinary Britons who have views that may not coincide with that of people in London who have views on the hard right or hard left. In his view the best way to lose the rationale for BBC license fee is not to educate people on both sides of the story every time. ...

LyrArc Article Gist
More than 600,00 people in Hong Kong are expected to use their colonial era British National Overseas (BNO) status to seek the pathway to citizenship offered by the British government. The advocacy group HKB Hongkongers in Britain surveyed the city's residents hoping to take advantage of the program that starts in January 2021. The Home Office had expected this to be about 500,000 over 3 years. About 80% of those surveyed want to emigrate in 2 years, faster than expected. About 75% of them have university degrees and earn well above the city's average, so that they can contribute to the British economy. About 75% plan to travel with children. Only half have friends in the UK and few have family there. Compared to the influx of migrants into Germany this is likely to bring a fresh infusion of talent into the UK economy at a time when Britain is embarking on building trade with countries around the world after leaving the European Union. Germany had language classes and many problems to integrate migrants from Africa. There is no language barrier and cultural issues are also for the most part absent. The technical skills of Hongkongers with BNO status could add to the British economy in many unanticipated ways.   ...

LyrArc Article Gist
Oxford University Wellbeing Research Center has developed Happiness score using Gallup surveys. US score No.10 ranking among 143 countries for older adults over 60 years. Yet it drops off steeply for young people to 62nd of 143 countries. The situation is the same in Canada and to a lesser extent in the European Union. Overall the US dropped out of the top 20 countries  falling from 15th to 23rd. The report is based on Gallup World poll surveys from 2021 to 2023. Young females recording even lower. Normally it starts with youth doing better and higher then in a U curve dropping all the way down during a midlife crisis in 30's and 40's age before rising again for older adults wi have experienced the vicissitudes of life. The US data contradicts this. Why? Jan De Neve of Oxford Wellbeing Center says it could be from social media use and growing health and income disparities. The pandemic also played a role- beginning college or a career in a pandemic was just not the way to start. Housing prices, cost of living, loneliness epidemic, misinformation and social media negative effects add to this. At the same time there is an increase in benevolence among younger people aware of the situation they face and looking for ways to mitigate this. ...

LyrArc Article Gist
TSMC will build a third plant in Arizona with the $6.6 billion in grants it gets from Biden's CHIPS Act. It will increase its investment in the US from $40 billion to $65 billion, essential to make the US a manufacturing hub for semiconductors. Intel, Samsung and other companies are making similar investments in the US in semiconductor plants. After years of post Reagan/Friedman period orthodox economics that led to the US chip industry and other advanced manufacturing following textiles to Asia, the US is making its policies follow actual practice and experience. This experience shows that in semiconductors with long lead times of a decade to build plants the country which supports its semiconductor industry gets ahead while others following orthodox Reagan/Friedman period economics fall behind. This has revealed the danger of a theoretical economic textbook approach that doesn't work and endangers American manufacturing and technological leadership. A culture wrapped around the textbook approach has led to the US and the EU, India, losing their competitive advantages and losing manufacturing in industry after industry, with loss of millions of jobs and deindustrializing. It has also led to decline and increasing lack of economic opportunity in towns and communities dependent on this manufacturing across the US and the European Union. ...

LyrArc Article Gist
Egypt plans to tackle the financial crisis after the pandemic and the war in Ukraine by increasing natural gas exports by one third. It has the LNG terminals to do this which are underutilized. The LNG could be exported to Asia or Europe at ten times the price buyers in Egypt pay for it. The way this additional natural gas is to be exported is to impose 15% cut in use of natural gas in Egypt similar to what the European Union has done with its 15% mandated reduction. This will then be diverted to LNG terminals. The max temperature for air conditioning is 25 degrees under the new plan and lights are dimmed or shut off after 11 pm in streets, shops and malls.  The war in Ukraine has doubled the price of wheat and other basic food necessities imported from Ukraine and Russia. This put a heavy burden on state finances in Egypt with subsidies on bread and other food for 70 million people out of 102 million people. Investment needs are also affected. Saudi Arabia has stepped in with help as no IMF program has been set. A 14% devaluation of the currency took place in 2022 and another devaluation of the currency is expected. ...

LyrArc Article Gist
President Biden launches the US Asian Economic Framework during his visit to Tokyo. Biden's main achievement on his Asian trip is to lay the foundations for the economic framework of the free world democratic countries drawing in India, Indonesia, Vietnam, countries from ASEAN, in addition to the core of Japan and South Korea. India, Australia and New Zealand are now seen as part of the core group in the Indo-Pacific Economic Framework. By 2030 and 2040 this trip will be remembered for laying the foundations for the new economic relationships and supply chains in Asia, policies similar to that of Harry Truman after the Second World War that set the policies of US for the rest of the twentieth century. It is similar to the US EU Trade and Technology Council in setting a economic union of friendly free world countries in trade, technology, capital and supply chains. Four pillars are set by president Biden- digital policies, climate change action, supply chain renewal action, and transparency plus good governance. These are also the policies pursued by the Modi administration in India, which has set priorities in these four areas. The other aspects of the policies of president Biden are to set policies friendly to working families and set to promote worker incomes and conditions. ...

LyrArc Article Gist
Biden goes to Brownsville, Texas, on the same day that Trump goes to the Texas border with Governor Abbott. Biden talks to Border Patrol and Trump visits a barbed wire section of the border with Abbott. The two visits show different approaches to the fight to control border crossings of migrants that reached 250,000 in December, an all time high that requires action and has the support of the president. Biden offered a compromise legislation with Republicans in the Senate which passed 70 to 30 with 22 Republican senators supporting Biden to toughen the asylum policies, add Border Patrol resources, and make it harder for fentanyl to enter the country. Biden has worked out and agreement with China and Xi Jinping as part of an overall economic agreement and cooperation to eliminate the source of fentanyl production in China. Republicans led by Trump hoped to use immigration as an issue in the election in Nov. 2024 and refused to even let the House vote on it, as there is likely a majority in the House that would pass it over Mr. Trump's objections. Republicans now look to president Biden to issue executive orders to get the job done to which Congress offers it deference today. Biden has the State of the Union speech coming up next week.   ...

LyrArc Article Gist
When you compare the US to the European Union or India one can see how America is failing its people in offering basic public services that other countries do routinely. Jennifer Pahlka is the author of- Recoding America: How America is Failing in the Digital Age and How We Can Do Better. Pahlka points out the problem in the US where private companies obstruct the delivery of basic services that the government can provide, just for their own profit. They throw in a carrot so that there is an excuse for not doing anything about this. For example tax preparation companies tell the IRS not to develop a simple tool available to all taxpayers to file their own taxes easily which is already filled with basic details. The carrot so that no one complains is that they will offer free tax preparation services to low income people. In the EU and many other countries tax preparation is done using tools offered by the tax agencies for easy preparation. In India it was possible to make it through the pandemic for large parts of a population of 1.4 billion because checks could be deposited directly into people's bank accounts. Digitization is used in India to make certain there is delivery of public services directly to each person. ...

LyrArc Article Gist
The U.S. makes its first interest rate cut since 2008. The U.S. central bank, the Federal Reserve cut interest rates by a quarter percentage point on July 30 2019. For seven years after the financial crisis of 2009 the U.S. central bank cut rates to generate business investment confidence and initially to prevent a deep crash in stock markets. In making this cut the U.S. is now a follower of the European central bank which is cutting rates to stimulate the economy. The U.S. does not want to see too much divergence with European interest rates which are showing negative yields and the U.S. at about 2.25% putting the U.S. with a disadvantage in trade from a stronger currency that results from higher rates. That crisis was a result of poor lending by banks in an irrational search for profits that never materialized. It ended up hurting the savings of ordinary Americans who earned close to zero on savings accounts. A similar pattern was seen in Britain and the European Union, resulting in a loss of confidence of working class voters in the established political parties and the emergence of Trump in the U.S., UKIP in Britain, AfD in Germany and the National Front in France.  ...

LyrArc Article Gist
The cooperation of Paris residents and visitors was key to the security achieved during the Paris Olympics. The stadiums were full, 743,000 people attended venues on July 30, and millions of people lined the streets for the men's and women's cycling road races. "The Games took place amid a great atmosphere, and the police were very well received by both Parisians and tourists, who cooperated well with them," says Axel Ronde of the CFTC police services union. Clarisse Agbegnenou, bronze winner in the women’s 63kg judo category was a member of the police force. 75,000 police, private security and soldiers were used for smoothly carrying out the Olympic games with the Olympics integrated into the city of Paris for opening and closing ceremonies in a way not seen before. It was also intended to revitalize neighborhoods of Paris that had fallen into decline. In this sense the designers aspired for something different and can draw satisfaction that they made the effort and it may leave a lasting value in revitalization of Paris. Yet considering the lack of adequate investment most cities in Europe and the US were getting over three decades of laissez faire economic theory of Reagan/Friedman there is a lot that remains to be done with new investment scale and spirit. ...

LyrArc Article Gist
Wellstone's unique contribution comes from his effort to work with rural poor and poor white farmers in the tradition of Minnesota Farmers Labor Party. This part of rural roots for the Democratic party since FDR and from the  time of Woodrow Wilson in 1900 was lost by 1980. After 1990 the Republican party set up roots in rural America that continued into the Obama period when the emergence of internet and tech companies as part of Democrats distracted and led to the loss of rural support in addition to the loss of union workers support. Tim Walz is from a rural small town America and bring the Democrats closer to their roots.  Paul Wellstone was  Senator from Minnesota in 1990 from the tradition of Farmers Labor Party in the state, and the period of FDR that followed the Great Depression and continued right into the 1960's with John F. Kennedy. He was for local community organizing during all periods not just campaigns, and public policy. He was educated at UNC and was a professor of political science at Carleton College from 1969 to his election as Senator in 1990.  He died in a plane accident in 2002 during an effort to run for a third term in the Senate.  ...

LyrArc Article Gist
Minnesota has the lowest unemployment in the country at 2.9%. It also has the highest corporate tax rate in the ocuntry of 9.8%. A prominent businessman says about a state's attractiveness for business that it is about more than tax rates. He is cited here in this WSJ report- Minnesota takes care of kids, parks, water, a state that works and Walz having contributed to the low unemployment and quality of ife in the state. It is not a high growth state yet on the indices of quality of life it does quite well. When nurse staffing levels became an issue in state legislation, Governor Walz had the proposal backed by a large union dropped by working through this. It led to Mayo Clinic moving ahead with $5 billion investment in the state at its Rochester location. Bill George, former CEO of Medtronic, which is located in Minnesota, says people like working in the state and this helps businesses grow. The high tax base, says George, has contributed to strong educational systems, the arts, the environment and the quality of life. The Governor Tim Walz is very easy to get to for help when there is an issue to be worked out for business.   ...

LyrArc Article Gist
Three events September 29 Sunday to October 5 Saturday described as "week from hell" for the Biden White House in this report. President Biden can feel a huge sigh of relief for having overcome in each event. The hurricane Helene devastating a swath of western North Carolina, parts of rural Georgia, and western Florida. The president was working round the clock for relief efforts and visiting the flooded regions. Then there was the large missile strike by Iran over Israel following its bombing of Lebanon. This was averted using US missile defense. And in the middle of all this there was the International Longshoreman's Union 45,000 members announcing a strike that  closed all ports on the East Coast from Maine to Texas. President Biden supported the dockworkers efforts to have shipping ports owners in Asia and Europe to share huge profits with dockworkers.  All the time the hard work at the White House and agencies for relief efforts paid off. Republican governors in North Carolina and Georgia praised the relief efforts. And Zient, Buttigieg, Transportation Secretary Brainard at NEC, were on the phone with port owners overseas at 5.30 am Thursday to setup a stopgap agreement till Jan 15 for settlement. The process and hard work paid off.   ...

LyrArc Article Gist
Pew Research looks at Inequality as an issue. It also looks at whether people see that their children will be better off financially when they grow up. The Better off Financially is not the same as the inequality issue, on inequality issue progress can be inadequate but perceived differently among different income groups in industrialized nations to be inconclusive as in this recent Pew Research in 2024.  On whether children will be Better off financially there is a decisive result in Pew Research in 2024. With France and Canada at the top 81% and 78%,  Italy and UK at 79%, the US at 74%, Japan 77%, Australia 79%, Spain 75%. Almost across all the European Union countries and the US this is decisive, a clear unequivocal result. Both the Trump first term and the Biden first term felt effects of Covid pandemic.  Reviving Manufacturing in the US and  Europe is the only way, and with it infrastructure investment, to bring back a sense of optimism to the US and Europe. For this levelling the playing field and tariffs that do that selectively are the plan in the second term, getting industry to take up the challenge is the second goal in this decade to 2030.    ...