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This editorial in the New York Times points out that the new president of the ANC party -that runs South Africa and has a monopoly of power in the post Apartheid years, under Mandela, Mbeki and Zuma- faces a uphill task as the ANC remains deeply divided after supporting Mr. Zuma in office till the very end. Apart from the stagnant economy, there are challenges the ANC faces in the lethargy of the post Apartheid years, and the culture of corruption, and patronage management that led to mismanagement of state enterprises.

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The Bureau of National Labor Statistics in China says China's GDP growth for 4th quarter 2008 was 6.8%. Private economists expect growth to slow to something like 5% in 2009 as the full brunt of the housing downturn and the drop in exports manufacturing is felt this year. Housing and exports were the two engines that helped China to reach 12-13% growth rates for 2007 and 2008. 2008 was also the year of the Olympics, and it now appears that by excessive growth and production capacity in many industries and increasing exports China may have created severe imbalances in the world economy. One way this happened is through the huge and ever increasing trade deficits with the US. By reinvesting the money in US Treasurys, China made a huge wave of liquidity and cheap credit possible in the US creating a bubble economy. The other is through the inflated demand in commodities like oil from the Middle East and countries like Russia, and demand for iron ore and other metal commodities from places like Brazil and Australia. This put upward pressure on the prices of commodities, creating a bubble in the price of oil. With the bursting of these bubbles the economies of Russia, Brazil and Australia and other countries are in a deep nosedive. The effects have operated in myriad ways, including a circular effect of the bursting of the credit bubble in the US leading to a collapse of demand in the US market for Chinese goods. In turn the collapse in demand for German and Japanese goods in China with declining demand, as the effects moved through the channels of the international trading system. The decline in Chinese demand also affects the US ability to make a export driven recovery....

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Merrill Lynch's Linenberg says the expectation of earnings for AMR is at $1.15 per share for 2006. JP Morgan's Baler's earnings per share estimate of $3.00 per share, and Standard and Poors stable outook for AMR Bonds substantially support evidence of turnaround in profits at American Airlines. American's business model factors in $65 per barrel oil.

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This televised debate of Republican presidential candidates focussed on Iran's development of a nuclear weapon. Rick Perry said he would impose sanctions on Iran's central bank, something the Obama administration is reluctant to do because it might disrupt international oil markets. Romney and Gingrich said they would use military action if other measures failed. Huntsman called for a complete withdrawal of troops from Afghanistan and Iraq, saying: "This nation's future is not in Afghanistan. this nation's future is not in Iraq." Ron Paul said hw opposed military interventions in conflicts overseas. Perry and Gingrich said U.S. aid to Pakistan should be suspended because Pakistan was not a reliable partner.

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A final U.S. State Dept. review of the XL Keystone pipeline shows there will be no negative environmental impact. The amount of oil from oil sands will not be increased by the building of the pipeline. The final decision will be made by president Obama.

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U.S. president Obama tells the NYT that the Keystone pipeline construction will generate about 2000 jobs during the construction of the pipeline, which would take a year or two years- really not that many jobs.

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After delaying taking a loan from the IMF, a multilateral lender known for setting austerity conditions for its loans, Pakistan finally accepts a IMF loan of $6 billion over 3 years. In August 2018 Pakistan turned to Saudi Arabia for $3 billion loan and deferring oil payments of a similar amount, UAE for $3 billion, and China adding another $2.2 billion. A sharp drop in the country's currency reserves left Pakistan little choice. Other problems were a overvalued exchange rate that hurt exporters under the previous government and fiscal spending on needed infrastructure that could not be matched with changes in tax collection. Pakistan has some of the poorest tax collection in Asia, depriving the government of the funds needed to finance infrastructure.  The IMF loan is a smaller loan so that Pakistan would feel less compelled to comply with the difficult conditions often imposed by the IMF that has made it unpopular in developing countries, particularly in Latin America. This is the 21st IMF loan to Pakistan. Only Argentina has had to turn to the IMF for 21 loans. For example the IMF conditions to Pakistan require increasing the electricity and gas prices. Under the IMF plan Pakistan must cut its budget deficit before debt service to 0.6% of GDP next fiscal year starting in July 2019 from the deficit of 1.7% expected this year.  To do this tax breaks of 350 billion rupees or $2.5 billion next year have to be removed. The central bank autonomy was also promised and with this 2 former Pakistani IMF officials now head the central bank. Because widening the tax collection base and better tax collection are promises made in the past to IMF which have not happened, this report in the Economist magazine says implementation in this IMF plan will also be lax, more so as the IMF loan is small and supplemented with funds from other countries. A cartoon in one magazine critical of the IMF shows the IMF officials from Pakistan negotiating for the Pakistan central bank with the IMF head Christine Lagarde. Increasing the Pakistan tax base is essential for Pakistan's development to invest in infrastructure similar to what is happening in India. Releasing funds for infrastructure, roads and railways, hospitals and education, requires a larger tax base in all South Asian countries. Without this internal capital and showing results of spending -with successful infrastructure implementation with least or no corruption or overspending- countries risk falling behind.  ...

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The Renzi government's new merit based appointments to CEO positions at Enel, Eni, Telecom Italia, Italiane Poste, and Finnemecanica, companies in which the government has large stakes. Women were appointed as chairwoman for Enel and Eni. This is part of an effort to revitalize Italian industry in the economic slump. The Italian government has a 30% and 31% stake in Eni and Enel. These companies represent about a third of the Italian stock market. Claudio Descalzi is the new CEO of Eni. He is seen as having as having an excellent record as head of the oil exploration division of Eni.

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The OPEC meeting in Doha in April 2016 fails to lead to an agreement to freeze oil production at Jan. 2016 levels, with Iran staying away from the meeting.

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As BP reports large losses in the second quarter resulting from its focus on safety, and building a smaller but more profitable company, BP's CEO Dudley says- "One of the things we are not going to do is drift off the path of focus on safety." He emphasized this by adding that "stepping up the accelerator of performance in place of that is not going to happen." BP has cut overall production from 3 million barrels a day in 2009 to 2.3 million barrrels as it focuses on safety and profitability. Dudley says "its going to be value over safety." As it finishes repair and improvement work in the Gulf of Mexico, BP will repeat the exercize in its North Sea fields. Extensive maintenace work is leading to extended shutdown periods.

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Elections in Nigeria on February 16 are seen as a referendum on president Buhari's first term. 84 million voters will chose who will lead Nigeria, Africa's largest democracy. The choice is between Mr. Buhari and Mr. Atiku Abubakar, Mr. Buhari won office in 2015 with his All Progressive's Party on three promises of ridding Nigeria of endemic corruption, fixing the economy, and tackling security issues. The economy entered a recession and then climbed out of recession under Buhari. Mr. Atiku plans to privatize parts of the state owned oil company, a plan which has been received with some skepticism considering problems with privatization around the world. A remarkable aspect of this election is that half of registered voters are aged 18-35, who see their leaders as out of touch. In fact many are supporting a "Not Too Young to Run" campaign to encourage younger people to run. 2015 was the only time Nigeria had a peaceful transfer of power since civilian government was installed in 1999. The candidate with the most votes is declared winner if they have at least one quarter of the votes in two thirds of Nigeria's 36 states and the capital Abuja. Nigerians look for someone who will unite the country as the  democratic process is only now being popularized and planted in Nigeria. This is not an overstatement as Nigeria has Muslim North and Christian South, and 200 ethnic groups.  ...

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The Reserve Bank of India (RBI), India's central bank, left rates unchanged in October 2012. RBI Governor Subbarao says inflation could go above 8% by January 2013. High global oil prices and a weaker currency are adding to food price increases to push inflation higher. The RBI lowered its growth forecast to 5.8% from 6.5%. Mr Rangarajan, chairman of the Prime Minister's Advisory Council said the RBI will not lower rates till January 2013 unless there is a significant tendency for a decline in inflation before then.

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Iraq is only spending one percent of its $80 billion in oil revenues generated each year on repairing roads, bridges and other infrastructure. The reason for this and the extreme nature of the situation is because Iraq has shortage of trained staff, extremely weak procurement and budgeting systems with computerization and electronic currency movements and financial check clearing house as one sees in modern states in Europe or in Asia are nonexistent here and stacks of cash have to be moved around to finance projects. The violence and sectarian strife complicate the situation further with little agreement on wehere the money should be spent. On the positive side all these revenues mean money will be available for reconstruction on a big scale once the politicians and political groups among the Sunnis and the Shiites and the Kurds can get together and this should help to restore normal life in the country.

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Jim Krane of the Judge Business School at Cambridge University, points to an important development- the increasing consumption of oil in Saudi Arabia that is shrinking its ability to be a reserve supplier in the Middle East when a Iraq, a Kuwait or a Libya's oil supplies are cutoff. Saudi population and industry is growing and is using up a quarter of its oil production. Consumption is at 3 million barrels a day, more than the oil consumed in Germany, and is growing at 10% a year. Use of oil is subsidized by the government and with social spending up in Arab countries a cut in subsidies is not expected anytime soon. Projections by Jadwa Investment of Riyadh show that the reserve margin will disappear by 2020. By 2038 Chatham House in London predicts Saudi Arabia will become an importer of oil. This is important because America's sanctions against oil imports from Iran require the Saudis to step up and act as the reserve supplier. This happened with Libya, and 1.5 million barrels a day were cutoff after the revolution. Iran exports 2.2 million barrels a day. This will keep supplies tight and keep pressure on oil prices in 2012-2013....