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The reckless behaviour of German elites in pursuing increased dependence on Russian oil and gas and ignoring American warnings is shown in this report in The Guardian. The first links to Russian oil and gas were started under chancellor Brandt in 1970. At that time the dependency on oil and gas supplies was much less than 10%. Dependence increased during the Schroeder and Merkel years to the extremes that exist today. Not much more even in the year of the fall of the Berlin Wall in 1989. It was the misconception of chancellor Schmidt of the SPD in his differences of opinion with presidents Carter and Reagan on the risks of increasing dependence on Russian energy that marked this period. Schmidt believed Germany was right in its conviction that increased trade would bring peaceful cooperation without realizing that economic dependency is never a good thing. Poland had a skeptical view- German elites including business elites were being corrupted. Cheap Russian energy was being used in the Schroeder and Merkel years as a competitive business advantage without considering the risks involved and the admonitions of American presidents of the dangers. With Steinmeier of the SPD there was the immense guilt of the millions of war dead from the German invasion of Russia in 1941 that acted as a brake on evaluating the increasing dependency for energy that reached over 35% by the time he was foreign minister. The fall of the Berlin Wall was seen not as a result of multiple factors including the positions taken by Carter and Reagan, the losses to the Russian economy from the war in Afghanistan, and the general decline of the Russian economy. German leaders saw this as coming from the new relationship being built with Russia. German business and Schroeder- Merkel even allowed not just new Nordstream pipelines under the Baltic Sea but also transferred ownership of reserves, the gas and oil storage inside Germany to Russia's Gazprom. German Economy minister Habeck says the storage tanks were emptied so that there would be added surge for oil and gas prices after the attacks on Ukraine. This Guardian report ends by saying that Mr. Steinmeier still needs to show why he pursued policy of cooperation with Russia with increasing dependency to the point that a cut off of Russian oil and gas supplies would lead to gas rationing in Germany in the event of a sudden cutoff. Was it a form of sensible cooperation taking dependency to such extremes. Similar questions remain for chancellor Merkel. With the added question for Merkel about the increase in trading ties with China even after the Trump administration had warned of the serious risks to US and European competitive advantage in technology and manufacturing, and the increased dependence on a supply chain that was fundamentally weak as shown clearly by the pandemic.     ...

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To help growth in the present situation of the pandemic the U.S. central bank is adopting a new policy of letting inflation float above 2%. Interest rates will be kept low for a longer period to support jobs and growth. Jerome Powell the head of the Federal Reserve announced the new policy.  Powell is mainly concerned about jobs. He sees a lot of difficulty in the services sector as jobs are lost. It will take time for this sector to recover. This is "a strategy where undershoots are not forgotten" Powell told the Jackson Hole gathering, meaning that the Fed in contrast to current policy will adopt a strategy of staying with a goal of full employment till the people who are lagging behind in regaining employment are back on the boat with the rest. In the past these people were left to fend for themselves, even when the loss of work was due to no fault of their own- crises from banks overlending and losing money as in 2009, or today because of a virus from Wuhan.  This is the part of economic policy that resonates in the country today and it shows that the Fed is on board in the effort to revive the American economy putting the people first as in the early years after the second world war when national unity prevailed under both Truman and Eisenhower. Powell uses both economic jargon about "a long tail" and common sense language in a way few central bank presidents have in America. He says the Fed is looking at "a long tail of a couple of years at least" during which he says the Fed will "stay with these people, the millions of people still looking for work." No mathematical formulas will be used. Just plain common sense and putting the people of America first, which is just what is needed. Mathematical economics have taken America nowhere. ...

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US president Biden's $2 trillion infrastructure spending plan is being compared to the New Deal infrastructure plans of Franklin Delano Roosevelt in the 1930's. FDR was preceded by Republican administrations under Hoover and other presidents who followed policies that can be compared to the Reagan administration policies when public sector spending was not seen to be as efficient as private sector spending. By the time of the economic collapse in the 1930's it had become clear that only the federal government could save the country in the depression. During the pandemic and collapse of the health systems it was clear that only the federal government could save the country. It is now also evident that infrastructure building led by the government can rebuild America. In the 1930's and during other periods in American history such as the building of the Erie Canal and other public sector infrastructure projects in the 19th century it was the federal government that led the way to building America. ...

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This report in the WSJ  shows that president Xi is pulling back from his signature economic policy to reduce wide gaps in wealth and opportunities in China. In 2021 this was a policy that Xi pushed to reduce inequalities that have built up over decades of hypergrowth. One tenth of the population owns 68% of the wealth in China creating an highly unequal society. Concerned about the future of the Communist party as disparities kept widening and 40% of the population was left behind, Xi early on in his first and second terms made tackling corruption and inequality part of his policy.  Yet the way China's economy is structured, its dependence on the construction industry for growth, and on local governments for investment, it is easier to tackle infrastructure projects than address widening gaps in society. Xi's efforts have led to slowdown in growth to 5% or less. With the US and Europe moving to shorter supply chains and moving supply chains to less integration with China, slowing growth to less than 4-5% presents a major challenge for China. Leading to a pull back from the Common Prosperity policies that Xi initiated and which are part of Communist party policy in its early period after 1949. A major problem for China says WSJ is that social security contributions revenue is 6.5% of GDP compared to 9% for advanced countries in the OECD, the Organization for Economic Cooperation and Development. Personal income taxes are 1.2% of GDP compared to 10% in UK and US. This prevents the better funding of programs for maintaining a better safety net and social support for the less well off in society. The pandemic followed by Ukraine war have added new urgency to the acceleration of the effort to build new supply chains, leading to new manufacturing innovation and manufacturing leadership in the US and European Union, and in countries such as Japan, India, and other parts of Asia. This too has made the goals of reducing inequalities and addressing the wide disparities in Chinese society more difficult with sharply slowing growth in China. This was also the experience of Japan and South Korea with decades of fast growth followed by sharp slowdown with unanticipated problems. ...

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With some aspects of Marie Le Pen's programme possibly violating the French Constitution and some parts of the programme leading to France being forced to leave the European Union, what was not looked at carefully in the first round vote is now happening for the second round. The Le Pen draft law on "immigration, identity and citizenship," is seen by multiple analyses cited by The Guradian, as violating the principles of equality enshrined in the French Constitution. Constitutional experts say this would also violate European law and lead to a progressive or indirect exit from the European Union. Le Pen's proposal to lower the retirement age to 60 was coming under scathing scrutiny, with Jean Tirole, the 2014 Nobel prize winner in Economics saying it would cost 68 billion euros and "permanently impoverish the country." Countries such as Brazil that lowered the retirement age in this manner have found that it seriously affects public finances, leading to the deep economic crisis in Brazil following the commodity price collapse a few years ago. Macron has moved in the opposite direction to raise the retirement age gradually and now with a proposed national consensus, at the cost of losing some support, simply to shore up public finances. So that needed investments in infrastructure and climate change can be made. For this reason it may become evident to undecided voters that Le Pen's proposals have some serious flaws if implemented, weakening the French economy and yet not tackling the deeper problems of younger people. These problems The Guardian says in a separate report are the precarious and low pay jobs, asset based inequality, and rural urban regional differences developing as a result of the offshoring of manufacturing to China, and are common to Britain, France, Germany, and the US. These problems are beginning to be addressed after the lessons learned from the pandemic by western nations.   ...

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Navdeep Puri, India's former ambassador to Egypt, discusses the importance of India's relationship with the United Arab Emirates and particularly its relationship with the leaders of Abu Dhabi. Indian prime minister Modi has visited UAE 3 times and has built a close relationship with Mohammed bin Zayed (MBZ). Interviews with MBZ in the NYT and indepth articles show that MBZ is a different leader in this part of the Arab world who has inbuilt in his nature both old Arab values and tradition that he respects with the modern world that he saw in Britain, and is simply striking out for a different path that sees modernity in the British way as a way forward for the entire region. MBZ is also seen as a mentor for Mohamad bin Salman of the Saudi country. MBS is also striking out  for a different path for the region. Saudis are financing development agenda for Egypt by helping rescue the Egyptian economy with investment and assistance at a critical time of the pandemic. This also extends to aid and assistance to Turkey. For MBZ and MBS the British approach to modernity and the American approach to modernity, with science, technology and both respecting and modernizing traditional ways, offer a way forward for the entire Gulf region. When these countries look around them they see India as also striking out in the same or similar direction. Both Arab and Indian traditions are being seen in a respectful way, without ever losing sight of the development goals and fully accepting the modernity that Britain has brought not just to Asia but long before that to Europe and the US. This may be the true foundation of the new relationship of the Gulf region with India - seeking a common path to modernity and development for all the people of their countries after the failures of the last 75 years. ...

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WSJ tells the story about Biden being slow to act in 2021 and 2022 to close the Southern Border, without telling the complete story and all the facts. Biden did close the Border in 2024 by executive order- when Trump blocked passage of Republican Lankford's legislation in Feb 2024 supported by Biden to close the southern Border. No mention is made that Biden was faced with a once in a century pandemic, winning the fight for vaccines over skepticism, and on Feb. 22 2022 Putin launching an attack on Kiev, Ukraine, and negotiating to get the crumbling infrastructure of the US rebuilt, funds for CHIPS and Science. On top of this the Venezuelan economy completely collapsed leading to an unanticipated migrant surge. Only FDR and Lincoln faced so many huge challenges and tackled them one by one. Without these facts the result can be to stall the biggest boom in manufacturing under president Biden/Harris that America has experienced since the space race in the 1960's. ...

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Biden is a US president in a hurry, says this analysis in The Times. And it says this is for a good reason. Biden as vice president in the Obama administration has watched as time slipped by and much of the hopes remained unfulfilled for infrastructure and other plans including climate change. Biden also has long experience in Congress and long experience working with Congressional rules. He also understands that the Democratic majority may not last beyond 2 years, better to go all out now and lose no time. This is the thinking behind his plan for $2 trillion in infrastructure spending in the first 100 days of his administration, and the idea that he does not need to win Republican support by watering down his plan.

The American people now support this kind of bold vision and bold plan after the pandemic showed the weak nature of presidential plans and aspirations till now for three decades.

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Xi Jinping is seen in this WSJ report as putting China on a course as a competitor of the US compared to other leaders such as Hu Jintao and Jiang Zemin, yet these prior leaders faced a enoromous gap in technology and capital to make it ludicrous. The shrinking of this gap is a result of free markets theory that took no account of the national interests of the US or of the European Union in shifting manufacturing lock stock and barrel to China.  A deeper look at China requires looking at it from putting oneself in China's situation since the period of the 1912 revolution and the 1919 May 4th movement for Science, Modernization and Democracy, to better understand its motives and realities. Jiang Zemin could not pose the question of competing with the US at the time because China's per capita GDP was less than $100 in 1990 and by 2000 during Hu Jintao's term still about a tenth of American per capita GDP.  Even today with population in North America of about 500 million in the economies of US, Canada and Mexico, China lags far behind in technology and capital resources. The Biden administration does not believe in this idea of free markets theory, wrong from the beginning that prevailed incredibly and puzzingly for too long, that it does not matter where you make as long as it is made at the least cost anywhere. It ignored what China and the US under Biden both believe for the US or China that the US is its people and the people is the country. For the US the Civil war itself as Lincoln said in rallying people to the Union, was fought because labor was more important than capital. When looked at the situation in China as stated by Xi at the party congress recently is for having made progress for the overriding goal of Modernization to build a moderately prosperous socialist economy. Huge problems in China remain hidden- ensuring self governance that is honest and accountable to the people, creating jobs and opportunities for hundreds of millions of young people even as supply chains shift after the pandemic in Europe and the US, India and other countries to their home countries for Made In USA, Made in Europe, and Made in India. China is not such a believer in the flawed free markets theory of the non existence of national interest to not grasp the natural aspects of the US and EU, India wanting to build their own manufacturing up again to the fullest. In this situation it also probably realizes the need for a pause to the rampant free markets type of growth that has damaged China's water, air and environment as much as it has damaged the world through climate change. Quality of growth is the new ethos and this gives the US and China, India, the EU and other countries a common frontier to shoot for. The nuclear aspect is also there and managing this well is a common interest for all countries exercizing responsible leadership. ...

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As the pandemic continues to spread and numbers grow with reopening of the economy the question remains -what can we learn from other countries positive experience in controlling spread? Here the Times provides the example of German contact tracing- chancellor Merkel has emphasized that a lot depends on "total" contact tracing, and contact tracing "above all else." Germany's experience is that even if you don't get everything right, you make an honest effort with everything you've got and do it early it makes a real difference. Some of the offices across Germany are stretched and short of staff but they have been working since the beginning of March, sometimes in the early days 7 days a week. Only 33% or one third of the offices throughout Germany for contact tracing have the required 5 person team for every 20,000 people, and 35% are overstretched or at their limit, according to one survey. No apps, just a low tech effort with people from the state administrations who were not working during lockdown trying doing something else, or volunteers. Mainly using the phone, talking to people and tracing the contact chain of people testing positive. Putting this information on the computer with a central database.  The Berlin office has 115 workers and has tracked down every one of 666 virus cases it was given. Because of privacy concerns at the Munich office sometimes even the patient's name is not given and office staff have to locate the name and the person. It requires dedication, flexibility and above all resilience, says Harold Rau, the deputy Mayor of the Cologne office, cited in this Times report. The doctor alerts the local office with a test result. The office calls the person and finds out who he has been in contact with for the last 14 days. Then the people who were in contact with are grouped based on the directness of contact, face to face, so on. These people are asked to quarantine for 14 days, sometimes with the rest of their household. They get daily call to find out how their doing for symptoms. The effort goes back to Robert Koch in the 1892 cholera epidemic in Hamburg. Robert Koch, microbe hunter in Germany, was called in after the epidemic spread from Moscow. It devastated Moscow and Tokyo, but Hamburg suffered far less about 8605 deaths as a result of the contact tracing and strict closing off quarantining of affected chains after isolating them, closing off affected parts of the city. Bit by bit the cholera epidemics sparks were put out before turning into flames, says Koch. In the current pandemic Germany has suffered 8241 deaths and 178,000 confirmed cases. So far this is in line with the cholera epidemic in Hamburg 1892, and this for all of Germany. And it is not just affluent nations that can do this. where there is a will there is a way. In Kerala state in southwestern India, similar efforts have worked to limit spread  with even better results than Germany. ...

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Germany has shown that low tech contact tracing efforts work- no apps needed, a phone, a desktop computer with a centralized database, and most important the human relations skills of the person doing the calls. The  sensitivity to the situation facing each person being called, being able to talk to the person in the language they speak in a multilingual environment such as California, is shown here. A 40 person team operates in San Francisco consisting of public health officials, clinicians, medical students and librarians. They call the contacts of people with coronavirus, arrange tests, and as needed send packages of food and medicines to hotel rooms or homes. Every call is expected to last 15 minutes but all sorts of questions are handled.  English and Spanish are used. Here one of the persons doing the contact tracing says she does not use apps, just an open source software used in the fight against Ebola. Definitely low tech, no waiting, get going is the message to every city in the world. She says apps software such as what Google and Apple are putting out can tell you whether the person went to some place, but cannot tell you more about that person, cannot tell you about problems the person is having being tested, and how they are having difficulty providing for families. One of the big lessons from Germany and efforts such as this one in San Francisco, and in other places such as Paris, Singapore, Taiwan, is that there is a complex nature to contact tracing that cannot be solved by tech. In fact the best thing to do is to get started immediately, with a phone and a database on a computer, as long as you have a person who has the motivation and skills, empathy with people, a lot can be done. Waiting for apps is a dangerous waste of time is shown by the low tech German experience, and the experience in other places. Most important is starting immediately. The example shown here of working with migrant workers in contact tracing shows in the most vulnerable places it is these human relations skills that count, that no tech app can do. It requires detective skills to find out and get people to share their history of movements and contacts for 14 days . In Singapore crowded dormitories house 300,000 of 1.4 million migrant workers. Singapore using an app also but its use is secondary. Apps don't work in many situations but fail in the most critical situations such as these dormitories and other eccentric or atypical situations such as faced by South Korea with religious groups and gay communities, elderly people in Europe, that generate the worst dangers of spread and need to be cluster isolated quickly. Human contact tracing has a history of being an effective method and was used in China and South Korea during the 2003 SARS epidemic. More countries need to adopt the method used in Asia and in Germany, particularly Britain, the U.S., France and India. It is OK that Britain's NHS and India's national government with Aarogya Setu app have put out their own apps which balance privacy concerns with the need to act immediately and cover the entire country, but the hard slog of human contact tracing teams in each district is indispensable. This is why the former Health minister in Britain calls it Britain's national mission to do this. Speed is key- putting together teams across the country in every district from skilled volunteers or government workers, and pulling together the phone and a centralized database on a computer as basic equipment. The fact that this is easily doable and people with human skills needed can always be recruited as they have been in Germany- from public officials in local government who are less busy in lockdowns, medical students, clinicians, volunteers, people from different professions- makes it inexcusable not to learn from others experience and get going. Just Do It. You want to reopen business, professions, offices and public services- Just Do It, it makes this possible. You want to prevent spread of the virus- Just Do It, it makes this possible. You want to limit damage to the economy and get the recovery going- Just Do It, it makes this possible. People of all shades of opinion can agree on this- its the only thing that works, even when there is a lack of enough proper accurate testing. ...

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Gerard Baker in the WSJ points to issues of transgender, illegal migrants in US cities, and race in politics as issues on which the "correct" views were causing anxiety for the American public. Parental anxiety on transgender at school for their children, public anxiety on illegal migrants in American cities, and anxiety about race as a defining factor in political life. The illegal flow of fentanyl and loss of life in the US is a basic issue- how could the US as the largest advanced economy in the world become so feeble that it cannot stop illegal flows of fentanyl and human smuggling. Baker also says that he doubts that the new Department of Government Efficiency will work and eliminate waste, that he thinks imposing tariffs will depress domestic productivity and reduce living standards of the people. And that installing what he calls "oddballs" will work except to create chaos. On the issues of infrastructure, cost of  manufacturing revival in the US which were issues in 2016 and turned into the agenda of the Biden years little is said, and on cost of living nothing tangible about reversing the 20-30 percent of price increases in housing and groceries that have happened in the pandemic years 2019-2023. ...

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The Indian 2024 election involved huge giveaways and caste based selection that takes India backwards, which explains some of the gains of opposition parties in Uttar Pradesh and Maharashtra, two large states. As the WSJ points out giveaways to buy votes for Rs 1 lakh for every woman in the state of Uttar Pradesh with population of 120 million women was part of the strategy used by a leading opposition party. Caste selection was carefully deployed by another large political party in Uttar Pradesh. Fears and misinformation about the BJP party changing the Indian Constitution to remove protection of lower castes enshrined in the Constitution by Ambedkar, was also a factor that swung votes to the opposition. The effects of the pandemic and the unemployment levels for a largely rural population in Uttar Pradesh and Maharashtra in north and west of India played a role as the BJP failed to get an outright majority following its majority wins in 2014 and 2019. The Opposition parties and the BJP main difference is that the Opposition parties have accepted the leakages of funds as part of the culture that has prevailed since 1960 which makes rapid development and modernization impossible as the pool of funds for investment in infrastructure is diminished. BJP party under Modi has fought this leakage every step of the way and by executing projects of infrastructure with on time delivery created the prospects of India modernizing and industrializing the way Japan and China have achieved. The other difference is the execution and the Master Plan Gati Shakti developed by BJP and Modi and a 20 year execution model developed in Gujarat state by Modi from 2001 to 2021. This has made India the fifth largest economy in the world with plans to make it the third largest by 2030 and do what Japan and China have achieved in Asia. It is not really about religion or so called Hindutva that is driving the hard work it is about making India a modern industrial nation with the standard of living of US, Europe, Japan and China.   ...

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India's Foreign Minister told a conference that China's forward deployments at Galwan in violation of 1993 and 1996 agreements was an attempt to change the Line of Actual Control. China after years of peaceful development under previous administrations, during which China had gained from the trade relationship with the US and foreign investment from the US business community, sought  to put India at a disadvantage using its larger economy and technological assets obtained through American business assistance. This was done by making forward deployments right at the Indian border to change the Line of Actual Control in progressive steps. Jaishankar made it very clear. "It is hard work, very patient work, but we are very clear on one point, which is we will not allow any unilateral attempt by China to change the status quo or alter the LAC. I do not care how long it takes, how many rounds we do, how hard we have to negotiate- this is something we are very clear of." Going back to the period of independence with Nehru in 1947- China's occupation of Tibet was an occupation of a peaceful country that led to the situation that India faces today of a border stretching from east to west on the Himalayas that faces China. Faced with the partition and refugees from that partition India under Nehru was not in a position to respond effectively to that occupation. Does China gain anything from being at that border through the occupation of Tibet is a serious question? Why? Because it faces a Vedanta and Buddha driven culture and people with population of 1.8 billion stretching to the Indonesian islands that were and still are the fundamental source of  China's own Buddhist culture and tradition.  US business has allied with one country after another Japan, China and now India. The US has faced wars with Japan, and sometimes in a failed attempt to understand the aspirations of  Southern Asia allied with British ideas of the region which were based on the policies of British Empire to divide the region on religious and language, caste based barriers. US business also lacked a true perception of the importance of working class and families in the US as it sent factories and surrendered its own manufacturing to China. The world is now changing following the pandemic and new supply chains and manufacturing policies of the US are being structured. It is in this context where India's pace of economic growth and technological advancement will change its capabilities and its capacity to meet the aspirations of 1.8 billion people in Asia with a common tradition and culture. It is in this context that one can ask the question does China have anything to gain from the occupation of Tibet and being on the border with a country and cultural tradition of 1.8 billion people stretching across South and South east Asia?  ...

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An enormous achievement of president Joe Biden and of the Federal Reserve's Powell goes unrecognized with the highest growth of any the economically developed nations by far in the US, as groups stuck in old frayed concepts of economic orthodoxy and wanting to keep as FDR said "their place in the economic order," work to denigrate this achievement. They have sold trickle down economics, broken some common sense rules about failures in indiscriminate use of tariffs from the 1930's, which will put at risk this remarkable growth in the US economy. And does the current economic leadership respect Rural White people, Republicans in Republican States Absolutely. It is sending the largest part of the IRA Act funds to these states. It is also standing up for workers and families even on the picket lines for higher wages, a better future for America. True it is that in 4 years the effects of problems that were unanticipated from the pandemic relief and the supply chain crisis with ensuing inflation and price gouging in groceries and essential items, have affected the most depressed groups in America including blacks and Latinos and rural White Americans. These also are largely in the process of being overcome.      ...

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Questions about the every 5 years 20th Party Congress of the CCP or Chinese Communist Party, and the 2300 representatives attending from all parts of China are answered in this report in The Guardian.  Xi Jinping is expected to get a third term. To outsiders in US and Europe it is all about power in China, to insiders in China it is about China making it through the 100 years since the 1901 revolution and the tumult, the chaos of the first 100 years, and now a period of modernization and growing incomes,  the need to create jobs, tackle climate change, ensure a good future for the Chinese people. 2300 party members representing millions of party members in China attend the gathering. New appointments and retirements take place at this Congress. Of this there are 200 elite members of the Central Committee with voting rights. This central committee is responsible for electing a 25 member Politburo, of which the seven most senior persons are appointed to the Politburo Standing Committee. Xi Jinping is the General Secretary, the most senior position in this hierarchy. Age related retirements are at 68 years and a new Politburo standing committee is announced at each Congress. After the Bo Xilai effort to take power and take China in a new and unknown direction, and the gradual loss of the party's respect from corruption and abuses of power by local officials, Xi Jinping sensed problems in the future and conducted a anti-corruption campaign. Most of the system of government set up during the Deng and Jiang Zemin years after 1980 remains in place with Jinping calling for a revival of China, the next stage of modernization, under the banner of the CCP. The result of the anti-corruption campaign and a third term assumed by Xi including lifting of a term limit for heading the CCP, gives Xi Jinping an opportunity to shape the future for China as Deng did after 1980. Jinping in the manner of Deng sees the CCP as the organization that can continue the modernization and growth of China. The model set by Deng and Zemin of local autonomy for economy and centralized overall direction continues under Jinping who is General Secretary since 2012. China has made rapid growth during the period 2000-2022, but faces challenges of reorienting its economy away from dependence on a tight economic export oriented relationship with the US and EU, as supply chains are being shifted after the pandemic. This means more unemployment and need for careful economic planning and investment to create jobs in other sectors, and to meet the challenges of unequal distribution of wealth in China after hypergrowth that hurt China in some ways, and in the climate change effects of use of coal other fossil fuels. As focus of interest is on Jinping externally, within China it is these three challenges that must be uppermost in the minds of the 20th Congress members. Much of this stems from the tumult of the century that began with the 1901 revolution through Japanese invasion and upheavals in the 60's and 70's, leading to the rare period of stability and growth in the last 20 years. Jinping like Deng and Zemin has personal memories of the anguish of this period and the tumult, the chaos of the 20th century for China, and the yearning for stability with modernization.   ...

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There is a sense of cognitive dissonance in the states of former East Germany, known as the GDR or German Democratic Republic in the Soviet Union period from 1950's to 1990. The 5 states that formed the GDR continued to build close ties with Russia after the fall of the Berlin Wall, in the perception that this would build good long term relations. The crisis in Ukraine with border states of the Soviet Union opting in favor of close ties with the European Union and not Russia have disrupted the economic relations between the Federal Republic of Germany and Russia. As long as Russia needed the economic ties to build its economy and standard of living the political issues posed by NATO expansion and EU expansion were set aside by Putin and political parties within Russia. The very ties that were supposed to usher in an era of peace in Europe helped strengthen the Russian and Chinese economies. Leading to a point where these two economies were strong enough by 2021 in the midst of the waning pandemic to  assert themselves on political issues where serious differences existed such as expansion of NATO and Taiwan. When the economic relations such as making China a manufacturing powerhouse  was the path taken by American and European business in 1990's, business interests were focused on the declining quality and high wages demanded by unions and workers in the US and Germany. This could be personally witnessed at Apple's factory in Colorado Springs where quality was failing badly in the 1990's. Apple when Steve Jobs returned in 1997 adopted a China manufacturing strategy when its manufacturing operations in the US failed to deliver the quality and cost structure needed for it to expand. The high margins with low costs of manufacturing in China was the strategy adopted by Steve Jobs to compete with Microsoft and turbocharge its expansion. Soon other companies followed. A similar process happened in economic ties with Russia on a smaller scale. Two decades of such expansion whittled down American manufacturing, hurt American workers, hurt European manufacturing and European workers.  This process could not continue- yellow vest protests in France, the protest vote in US midwestern states in recent elections, the protest votes in German elections and fragmentation of parties, made this clear. The US imposed trade tariffs on Chinese products and moved to restrict flow of technologies to China under the Trump administration, accelerated by the Biden administration. President Xi was once of the view that China's ties with the US were important "thousand fold" in the period as late as 2010. Yet this lopsided trade relationship was not beneficial to American workers or American interests as a technologically advanced leader. It is true that American workers and engineers at Apple had failed to ensure American quality competitiveness in the 1980's into 1990's, yet no advanced country or its business can come up with a false narrative that cedes its manufacturing leadership and jobs for the working class of its country. That false narrative is being challenged today by Mr. Biden, Mr. Scholz, and all American and German political parties, and by Mr. Modi with Atman Nirbhar Bharat for local manufacturing. The integration one sees of the port of Hamburg as Chinese export hub with China's economy is one aspect of what has happened. A new leadership is taking its place in Europe and in America that sees clearly the false narrative. The visit of the new Danish prime minister to India is the beginning of the effort to set up a new logistics relationship with South and South East Asia, as Denmark's Maersk is a world leader in shipping logistics for exports and manufacturing. The planned Noida logistics center outside of New Delhi under Gati Shakti integrated development is part of the change happening today as a new supply chain is being built. The unwinding of the one sided trade relationship with China, and its related relationship on energy with Russia, led to the changing perception in Russia and China of the value of the relationship. Political relations superseded economic and cultural relations during Putin's second phase and Xi's second phase with assertive attitudes on NATO, and on Hong Kong, Taiwan under Xi and Putin 2.0. As could be expected Germany and the US were caught flat footed as leaders who were cast in the mold of Putin as a Soviet representative in Dresden, and Xi with his father leading the Communist struggle in the 1930's and 1940's against Chiangkaishek, acted in ways that reflected the Soviet period. Chiang left for Taiwan in 1948 when Mao-tse-tung setup the People's Republic of China. Taiwan and Hong Kong remained important in the perceptions of Xi 2.0, in the effort to build "China Dream" and erase last vestiges of what in Soviet times were seen as western colonialism. US and EU particularly Business and the new IT telecom Business failed to grasp these matters, and historical events such as the opium wars of the 1850's. Business and cultural interests lacked both the inclination to learn and the knowledge of these events in Chinese history and its relations with colonial powers Britain and Japan, and also Russia. In 1900 the Boxer rebellion against ceding Chinese ports to colonial powers Britain, Japan, Russia, ended with permanent colonial settlements in Hong Kong, Shanghai, Tsingtao, other Chinese ports. Chinese rejuvenation in the mind of leaders such as Xi from the second generation of Communist leadership, means putting this behind, leading to the action taken in Hong Kong. In some ways as some observers have commented it is as much a problem of the sluggishness of American and European thinking, particularly business interests including in Taiwan, post British Hong Kong, and ignorance of recent Chinese history which was mistakenly thought not to exist or forgotten. This is as much of a problem as the action taken by Putin and moves by Xi Jinping. The great democracies such as India, Indonesia, Bangladesh, were ignored as American and European business interests integrated the American and German economies with China's. In terms of population the population of these regions and related parts of South East Asia such as Malaysia and Vietnam which have a shared cultural history is about 1.5 times the population of China. Travelling through the parts of India's largest state Uttar Pradesh, an Madhya Pradesh one finds how much American and European business interests have failed both their own interests, their own workers and failed the great democracies of the world, by not only not investing in the democracies of Asia, and also of Africa and Latin America and bought into a narrative of China which no longer holds true and may never have been true all along. This is starkly evident in a once in a century pandemic in these great democracies of the world. These democracies have been left to fend for themselves during the pandemic and their leaders facing false narratives in the media such as the BBC and American media outlets even on issues such as vaccination of the largest part of the world's people.           ...

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Germany's DW.com says in this report- "However, economists have pointed out that the US benefits from having large trade imbalances with the rest of the world, as the dollar is used in most trade, and offers major tailwind effects to the US economy." Which economists one must ask? Most of these economists had turned their back on the working people in factories in America, on their wages turned into a downward spiral, on their jobs, their factories lost for three decades. Today the American people have a sense of the true cost of this colossal failure to protect American workers and small towns across America depending on manufacturing. The pandemic exposed the risks of supply chain shocks and inflation by overly concentrating manufacturing in China.  The US has 1 trillion in trade deficits each year and it is completing the destruction of manufacturing in the US. Half of this is with China as China exports through Vietnam and Mexico, third countries, in addition to 295 billion dollars of trade imbalance the US has with China. China, Mexico, Canada and Vietnam are the largest offenders. No country can long endure with such a loss of its manufacturing base. The US Navy itself is in danger without the manufacturing to compete with China that has taken up over 50% of shipbuilding, and soon will not be able to protect the free world if these types of economists and self serving German or other foreign interests drive a false narrative. Without the US Navy in the Pacific, Atlantic and Indian Oceans no one is safe, not Germany, not the EU, not India or the rest of the world. ...

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With the aggressive actions taken along the 1600 kilometre border in eastern Ladakh by China's People's Liberation Army, India needs a younger soldier to protect the border at high altitudes in below freezing temperatures. The entire 3500 kilometre border in the high Himalayan regions from east to west need technology driven surveillance with soldiers fit and ready for such duty. Agnipath's goal is to bring down the average age in the army from 32 years to 26 years to better reflect the youthful population in India. A tighter better disciplined force with high tech is needed. Bringing in more and new recruits is intended. Both the 25% of recruits retained after 4 years benefit and the 75% benefit. The 25% will have opportunities to move up the ranks. The 75% who come back out of the military will have the advanced technical training and courses, certification, that would make them attractive to the public and private sector companies in 2026 and beyond when India's economy will be 50% larger than today at growth rates of 10-12%. This is already seen in the way technologically trained military recruits from World War II in the US Army, Navy and Air Force were quickly absorbed at high salaries in the high growth period of America 1950-1970, with incentives like the GI Bill. Modifications that could be discussed- The 25% retained after 4 years. There is no magic number it could be raised to 30 or 40% during these post pandemic years and then lowered to 25% as the economy grows rapidly by 2025, or kept at 30% without changes, a number of options could be open.The financial aspect of the training can be modified where the 25% retained could have these 4 years added to their years for calculating pensions. The 75% are given 1.2 million rupees and even this can be adjusted upwards so that they could start businesses as entrepreneurs or have the time to pursue higher education before taking up for example with free education to enhance their education in areas of interest as was given by the GI bill to Americans in the armed services after World War II in 1946. Ideas from the GI Bill signed by president Franklin Roosvelt in 1944- Adding one year of unemployment payments, low interest loans to start a farm or business, full tution and living expenses for college. In 2008 the Veterans Act in the US continued support for education of servicement by making eduction free at a public college or university.  The Roosevelt GI bill benefited about 7.8 million servicemen in the US armed services. 2.2 million went to college, 7.6 million took training programs. It was an impressive achievement. No scheme is perfect there are budgetary constraints such as how to manage pensions to give the armed services the best possible funding including the training and course capabilities that also need good financing and the higher pensions for armed services. Every political party  government around the world without exception will have to face these budgetary constraints and the goal is to do right by the armed services providing the income and opportunities they deserve. Was a decent effort made with the right goals set? This is how these matters of national interest for India and the Free World that includes South East Asia, Africa and Latin America, should be discussed.    ...

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Andy Grove makes this passionate plea for the dignity of workers in America in 2010. It is worth reading in 2020 what this founder of Intel Corp and pioneering spirit of Silicon Valley has to say. Andy Grove of Intel says there is something seriously wrong when the unemployment rate in the Bay Area is higher than the 9.7% national average for the USA. American companies have added jobs like crazy in Asia, but things are sputtering back home. Hon Hai has 800,000 employees and makes most of the electronic and computer products for American companies. Grove says startups are not the answer, unless they scale up and create jobs the way Intel did starting back in 1968, with a $3 million capital infusion by investors. The move from the first production model to mass production is critical, as companies hire thousands of people. Innovation and scaling up have to go together. He makes his point clearly by pointing out that Apple has 25,000 employees. For every Apple employee there are 10 employees in China working on Apple iMacs, iPods, iPhones. And he adds that the same 10 to 1 relationship applies to other U.S. tech companies. And here Grove asks the tough question by first posing an answer. He says it sounds like- no big deal, we keep the high paying jobs, we keep most of the profits, but what kind of society are we going to have with highly paid professional workers and lots of people unemployed? And he doesn't mention that there are a lot more young people unemployed. He says the US has become very inefficient at creating tech jobs, and it would be a great mistake not to act decisively early on. And adds that the investments in such areas as solar power and electric car batteries have to be made early on to maintain leadership in these areas. Grove faults academics like Alan Blinder and others who say loss of manufacturing jobs and whole industries was no big deal. The U.S. has forgotten the value of manufacturing jobs. He wants to see America focus on jobs and rebuild its industrial base. And less of transferring engineering knowhow and new technologies overseas, technology that can help bring innovation and scaling up of factories at home. In his view individual companies doing their own thing, in a misguided fashion that jobs don't matter, is not the answer to the situation we face. The industrial economies of Asia, China at the present day, have focussed on jobs and technology, and scaled up. Grove reminds readers of the situation in America in 1932, when jobless veterans demonstrating outside the White House in large numbers were dispersed by soldiers with live ammunition and fixed bayonets. This makes him shudder at the very thought of it, and brings back memories of his early years in Hungary, as a young man in 1956. Are we listening? ...

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Netherlands is well ahead of other countries in remote working. The percentage of employed persons working from home is about three times that of the U.S. or Britain. It is about 15% in Netherlands compared to 4-5% in the U.S. or Britain. A culture of near universal fast internet connections, a culture of trust with companies knowing the work will get done, and companies providing employees with funds to set up a good working environment from home. In some Dutch companies employees can take vacation freely as long as the work gets done. The idea of a whole work day spent at a desk in the office in some office building is not entrenched in Dutch culture. A U.S. poll shows 59% of remote workers would like to continue working remotely after the pandemic. Companies are shifting to a new culture of work done away from the traditional business office as the economy reopens. In the Netherlands the pandemic is only giving more confidence in the idea of working away from a business office. This can now catch on in the U.S. and other countries. ...

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The NYT's look at the televised debate between Macron and Le Pen for the presidential election. Macron has this to say in closing about Le Pen's shelving her plans for exit from the European Union compared to her position in the last election. "It's a project that doesn't say its name but entails leaving the European Union. I'm not lying about the goods, you are lying about the goods." Macron says Le Pen is being disingenuous about this, arguing that by reducing French contributions to the Eu budget and by ignoring fundamental rules of the EU such as freedom of movement and the single market, that would lead to a de facto exit from the European Union for France. Lyrarc has shown today on this page how the debate was covered in FR24, DW.com, The Guardian, BBC News, WSJ, and NYT. One of the key questions is what would she or some other candidate such as Mr. Melenchon done differently than Mr. Macron- For the once in a century pandemic? Macron is not faulted by any one for the work done by two prime ministers he appointed for the task. What would she or some other candidate done differently for today's surging inflation, considering that it is happening worldwide? Are their aspects of France's welfare state, and her economy and the currency that are better protected under the European Union than in a situation of de facto exit. The absolute power in the French presidency is something that happened after a weak system of prime ministers and coalition governments in the period between the two wars, and that power used wisely enabled De Gaulle to take decisive steps  over a decade for France in the post war modernization of France. This was a problem for Melenchon with his calls for a new Republic and a new constitution. Yet many of todays problems of decaying communities and once prosperous industrial towns in decay in the north, northeast and the south require a next generation industrial revolution to bring manufacturing back to France and back to the European Union, and large scale investment in France, as is happening today in the US which is confronting the same problem.    ...

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Some of the concern about the economy comes from the economic damage done by the coronavirus. The longer the shutdowns continue the more the damage. About 17 million have filed claims for unemployment benefits. The WSJ consensus of 57 economists is that 14.4 million jobs will be lost in coming months, and the unemployment rate will rise to a record 13% in June, from a 50 year low of 3.5% in February. The earliest the economy could go back to the level in February 2020 is 27 months says the WSJ economist survey. The brighter side of this comes in two aspects of this pandemic recovery curve. By flattening the curve and strict testing, contact tracing and isolation till the vaccine is developed about half the jobs lost can be recovered by the end of summer, says Moody's Analytics. The vaccine a year from now or in 9 months by November 2020 would allow the economy to recover faster. A more optimistic view comes from Daiwa Capital Markets which predicts many of people laid off will be recalled quickly allowing the labor market to recover in 6 months by September or October 2020. Only finance and real estate might take longer but most of the industries where the vast majority of jobs are could be back on their feet. The credible evidence supporting this perspective of a rebound comes from Colorado and Washington which require large employers to specify whether layoffs are temporary or permanent, 70% this year are temporary. Compare this to the prior 2009 recession where this figure was less than 1%- as reported by WSJ. The big push in this direction will be the $2 trillion that the Trump administration and U.S. Congress have committed to this task. Even more so is the determination of president Trump to protect American workers at all costs, that every job counts, and that businesses without exception to get the money have to show that workers are retained. The very success of the aid is being judged by how quickly people are back to work. Now for a look at where the situation is today- Oxford Economics, a UK based forecasting and consulting firm, projects 27.9 million jobs lost with industries other than those ordered to close making up 8 to 10 million of that number. It projects April's report will will capture late March layoffs. It will show cuts to 3.4 million business services workers, including lawyers, software groups, architects and consultants, advertising professionals, in addition to 1.5 million non-essential healthcare workers, 100,000 information workers. One conclusion of this report is that the virus does not discriminate across business groups and business service workers are also affected. Many companies that were hiring will cancel that move and many will cut hours worked. Many of these business services are not a priority. Hospitals are affected too, as they cut elective surgical procedures and routine care that are major revenue sources. Some are now charging for telemedicine visits to maintain some revenue stream. State and local governments employ 20 million workers. As tax receipts decline these local governments will face choices of cutting payrolls and services without enough federal government relief. In a way laying off workers and having them take unemployment benefits shifts that burden to the federal government so that services for overtime to police and paramedics, retention and deployment of nurses in schools.    ...

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Consumer Financial Protection Bureau comes out of a playbook of one party that supported no changes in the Financial system in the US and no consequences for financial wrongdoing in the mortgage and banking speculation financial crisis of 2009 that upended the world's financial system. The Obama administration did little to tackle the root causes of the crisis and no serious consequences for financial wrongdoing. With financial interests vested in the structure of both parties work in the financial business could go on as usual with minor changes such as the Consumer Financial Protection Bureau and financial settlements of no serious consequence. Along with this rural areas, farmers and agriculture were given less priority than Silicon Valley during the years of the Obama administration 2008-2016. The passion for a serious overhaul stems from the sense of injustice suffered by rural America and by tens of millions of middle class Americans who took the first blows with patches of period of less work or parttime work at low wages in a battered economy in the aftermath years of the global financial crisis caused by irresponsible bankers in the years 2010-2014. This strained finances and savings only to be followed in 2019 by the Covid pandemic imposing more strains on finances of American middle class and working class people. ...

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Indian Finance Minister Nirmala Sitharaman is interviewed by Ashok Malik for the Economic Times in this videocast. On what India did right and lessons learned from addressing the pandemic and the supply chain crisis, inflation, Sitharaman says-Getting input and listening to people about what was needed and the pain, was critical in developing the financial plans. On the realization of India's potential in manufacturing, exports, and industrializing its economy, Sitharaman says-India's strength is its rule of law, so that the country is tolerant of criticism including of the prime minister, and there are democratic institutions that protect ordinary citizens, the business and other sectors. Also important is friend shoring as expressed by US Treasury Secretary Yellen alongside Sitharaman, that sees India as a favored destination for the US and the EU. The efforts to develop first rate infrastructure and logistics removes impediments to foreign investment. Training and education of workers is part of this effort to create a supply of trained labor for foreign investment factories in India. The competition between states is also part of this effort to build attractive locations for foreign investments in manufacturing in India. On 20th century financial institutions transforming into 21st century institutions for the IMF, the World Bank and other international financial institutions Sitharaman says- India has full support from all G-20 countries on debt crisis of countries in Asia and Africa, Latin America to change the way in which help is provided. And the skills are put in place to access financial markets on terms that help meet the aspirations of the people in poor countries or middle income countries, including some G20 countries such as Argentina. Sri Lanka she says, is an example where India is the governor and representing the country at the IMF and World Bank for its financial needs. India took up the interests of Sri Lanka with the G20 and the US, so that the loans are not delayed or given in ways that lead to the country exiting the program, unable to meet the aspirations for development of its people. Sitharaman says the G20 found complete agreement on 15 issues facing the world out of 17 issues, these two related to the war in Ukraine and that too from only 2 countries. This suggests that the media focus creating a general perception of lack of unanimity does not reflect what happened at the G20 meetings in India, and is distorted. What really happened is that all countries agreed on the substantial economic issues facing the world- of food insecurity, of development needs, and of climate change impact.  Sitharaman's responses showed optimism based on the hard work put in at the Finance Ministry and connected to all ministries and agencies of the government. And of a resilient attitude, of concentrated effort on the issues facing India and its partners in growth in the US and EU.  ...