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How opinion has changed in France since the time of British and Allied bombing of France's rail and other infrastructure that the Germans used in World War II occupation of France. By the end of the war 50,000 French people had been killed in the bombings and large parts of some smaller cities destroyed. The story of these bombings and the survivors has not been told. Churchill was warned about the risk of turning the French away from the Allies and to favor the Soviets as the bombing progressed. By 1964 De Gaulle chose another landing in Provence that the Free French Army had actively taken part in for celebrations instead of D-Day. About 60% of French at the time in 1964 were favorable to the Soviets. Today this has changed as Biden visits Normandy for D-Day and the EU's future is intertwined with that of the US.

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Volcker helped set the autocratic tradition at the Federal Reserve which Greenspan followed. Actually this may not have been a good thing- not to have any dissent and to all speak in one voice as often there are many angles to one issue and only more than one viewpoint can accomodate the different angles which all have to be taken into account. Meltzer describes it as a club with al the members supportive of the club and its chairman. This may not be a healthy thing in the long run. Mr. Volcker at a recent meeting questioned Mr Greenspan's cheerleading of the " bright new financial system" as he called it and which in the end with all the brains and talent as well as greed failed the American people.

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WTO Trade talks and the negotiations between EU, US, Brazil, India, China, Japan, and Canada continue with difficulties in getting India's agreement. Mr Nath of India has come to speak for all the world's poorest countries in Africa and Asia and also the growing emerging economies like S. Korea and India. THe EU and the USA are keen on access to India's growing market. And India and Brazil want to see concessions from the EU and the USA that will help the poorer countries especially promises made at the Doha round that were to ease global poverty that have not been fulfilled. With the difficult economic situation in the EU and the USA there is less give on their side and the Indians and the Brazilians are insistent.

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The amazing story of how the human march of Syrian refugees on highways from Keleti station Budapest to the Austrian border got started, told by WSJ reporters Thomas, Bradley and Geiger in an exceptional way.

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As Japanese sales in the USA drop from 4.35 million vehicles in 2007 to 4 million in 2008 and an estimated 3.67 million in 2009 according to CSM Worldwide, even the Prius and the Honda Civic are afected. The Mississipi Blue Springs plant originally designed for the Higlander SUV , then assigned the task of making Prius after the shift to smaller cars, now will not make the Prius. The plant investment will stop at $300 million, with the plant construction being completed but the equipment not being installed, and no plans to manufacture cars there till things improve and the plant is made fully operational. At the same time it is noteworthy that employees Toyota has hired at the plant will keep their jobs. Toyota has not laid off permanent staffers at its plants in North America or any other region despite slowing sales in its worldwide markets. What does this mean? The culture of the United Autoworkers Union developed through the prewar confrontations between the union and the auto companies, and union workers and union officials and company managers came to a consensus through these struggles with the coexistence of high executive compensation and union medical benefits and other benefits and job security. But its not really been a frutiful arrangement as it has constantly been whittled away and eroded to the point of going out of existence even as the union clung on to the old ideas and management just went on with the status quo. Jobs security is nonexistent and jobs constantly cut as plants close, and now high executive compensation will face government oversight with the auto loans. See the link to Business Week which states that the numbers show the auto workersin Detroit union plants pay about 5% of their medical costs as opposed to 30% for workers who have healtcare coverage in the USA. But what good is the additional benefit in an environment where plants are constantly closing and jobs being cut. Is'nt aworker at a Toyota plant with no job cuts but costlier medical benefits better off than his Detroit counterpart? Which is to say with forward looking management that lowered executive compensation and unions that discarded an entitlement attitude and proactively matched its medical benefits to levels to nonuninized Japanese plants, and management that proactively shifted to higher fuel efficency and smaller cars in the interest of energy conservation and good strategy to be level with companes like Honda ad Toyota in that performance measure, wouldn't that have led to fewer plant closures and jobs, and public support across the country including in dealer showrooms?...

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Sindhi sentiment in Pakistan. Behind the calls for democracy and elections sentiment is gathering in the Sindh that supports looking after Sindhi interests. Because the Punjabi majority in Pakistan has dominated the bureaucracy and the military and looked after the interests of the Punjab. The nature of the Pakistani state not providing safeguards and devolution of power to the provinces, there is some basic underlying tension even without the problems that have been piled on it by the migration of Pashtuns and Punjabis into Hyderabad and Karanchi, and the killings of 2 popular Sindhi politicians in the Bhutto clan, and the army's suppression of a Sindhi revolt in 1983 with harsh treatment of Sindhis. Now the aftermath of the new Bhutto killing is taking a new turn with calls for Sindh and its 38 million people to go its own way. The Bhuttos have not supported it but the sentiment is now appearing to take a life of its own, disregarding Zardari and Bilwal, spouse and son of Benazir, who are said to be of Baluchi descent. The large dam on the upper reaches of the Indus river benefits military officers who own land there but shrinks water supply to the Sindh which is on the lower reaches of the Indus river. This further aggravates tensions. The province is now run by Punjabi associates of Musharraf and this does not help matters as Sindhi interests may have been ignored. If there is sentiment for a separate state, the state of Pakistan that was built in 1947 and how it has shaped itself with Punjabi military running things is not designed to handle that kind of upheaval very well. It lacks the checks and balances, devolution of powers to provinces enough to keep local representation strong, and the avenues of expressing sentiment being kept open for local ethnic communities. The Pakistan military is strong and there are nuclear weapons, but how effective is that if the goodwill and sentiment of the Sindhis is lost. In the long term the only hope may be for an economic union much like that of the EU in South Asia in which the Punjab, Baluchistan, and the Sindh could coexist with India and among themselves in whatever form the political aspect of states takes shape, making the politcal shape of states less relevant, and like the EU putting the years of internecine strife behind them. Looking towards a better economic future, open trade, investment, communication and infrastructure links in Southern Asia and parts of Central Asia and Iran. ...

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Unorthodox cabinet nominees- Kash Patel at FBI, Tulsi Gabbard at Intelligence get nominated. Others where the nominee is supported broadly by moms and parents, and many senators Rand Paul and Ron Johnson who are highly enthusiastic, are RFK Jr. for Health Secretary who still faced questioning from Republican Kennedy and other Republicans. All of them get nominated by Feb 15, 2025. Republicans in Congress stay together, Democrats do the same strangely opposing everything on the other side, including action on obesity and chemicals in food, drug industry practices they have been railing against for years that are RFK's agenda.  By tapping into different ideas just because they are good, make common sense, and not worrying too much about whether it is from the opposing Kennedy clan, and willing to take some risk with Patel and Gabbard, try youngsters such as Pam Bondi at Justice Department, Elise Stefanik at the UN and Kate Leavitt as Press Secretary, a woman Kristi Noem in the toughest job there is today at Homeland Security, DJT and Chief of Staff Susie Wiles have put forward a different set of people highly motivated, more than a bit rambunctious and boisterous, to get things done on immigration zero illegal migrants, zero fentanyl deaths, and zero deindustrializing technology transfers to the Nation's competitors, and zero play except on a level playing field in trade and business. ...

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US antiship missiles Nmesis are placed in the Philippines islands to protect parts of the Pacific region in 2025. During the period of US engaged in wars in the Middle East under Bush and then Obama, the US Navy lost time and China built up its Navy. The lack of foresight of US business and focus on profits of firms like Apple shipping manufacturing to China meant loss of the manufacturing knowhow as other companies followed Apple for 2 decades. The result is that it takes long lead times for the US to build the ships the US Navy needs, a repeat of the situation the US faced with Japan by 1935 when the US was focused on tackling the Great Depression under FDR. At that time at a Naval Conference in London in 1934 the Japanese walked out rejecting the Washington Naval Agreement of 1924-25 that limited Japan to 60% of the US and British Navies ships tonnage. By 1941 the Japanese Navy was its main reason for its efforts to control Asia. FDR who had been Secretary of the Navy was not far behind so that America launched its own efforts in 1937- in an 18 month period 1942-1943 the US destroyed the Japanese Navy and protected China, India, from the worst Japanese Kwantung army elements that ran the government leading to 14 million lives lost in China. ...

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The pandemic and the lockdowns resulted in a sudden surge in demand in 2020 and 2021 for home delivery of goods by Amazon. Amazon expanded rapidly during this period. Now in 2022 Andy Jassy the new Amazon CEO is cutting back warehouse capacity and finding ways to reduce Amazon's size as buyers are cutting back now that the economy is getting back to some normalcy. Inventories are piling up for retailers Target and Walmart. During the pandemic Bezos set up hundreds of new warehouses and sorting centers, and employees doubled to 1.6 million from March 2020 to March of 2022. As instore buying came back and Amazon projections of long term demand turned to be too high Andy Jassy the new CEO is working on cutting back. Amazon says this extra capacity will mean $10 billion in extra costs in the first 6 months of 2022. Its stock lost about one third of its value under Andy Jassy's first year as CEO. Jassy and his team are working to sublease about 10 million square feet of excess warehouse space and renegotiate warehouse contracts. Dana Mattiolo looks at how Mr. Jassy tackled the new job of online retail with his obsession for detail, learning the new business from scratch. He was previously head of the cloud business at Amazon which generated three fourths of the profit of Amazon. Jassy says Amazon always chose the higher end of the numbers generated by its forecasting tool SCOT that showed how much warehouse and handling capacity was needed. SCOT tool generated high medium and low figures of what the demand would be and what resources were needed to tackle it. The policy of Bezos who ran the operations and delved into details during the pandemic was to not constrain sellers and buyers during the pandemic. Though not mentioned here this was a decision of Bezos that helped America tackle the pandemic in an effective way. And could be seen as a courageous move by Bezos of ignoring the risks and doing the right thing for America and the American people. It is now left to Jassy to figure out how to take corrective action but the basic policy of Bezos was done with the right intentions towards America during a period of serious danger of the pandemic when over a million lives have already been lost. ...

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Getting savy employers to pay attention and getting employees to have a better sense of who they are, provides the topic of this article in the WSJ. It shows that different types of employee behaviour can be seen after two years of the pandemic, and employers need to pay attention to their needs.  There are ambitious employees and work to live types. Work to live advocates have put lifestyle and health as priorities learning from the pandemic. The great resignation and employers facing worker shortages have given them an opportunity to look for more flexibility in work life situations. Related to work to live type are double duty professionals of which women form the larger part. During the pandemic women took on more responsibilities for children with lockdowns and school closures. This also meant a more stressful life. All of these types of employees are now in the workplace. Employers can get better results by paying careful attention to worker needs. The types are not exclusive as double duty professionals also have the drive and the resilience to match ambitious employees in tackling new positions and responsibilities. The double duty professionals also share the aspirations of work to live advocates for a better work life balance that gives rest and relaxation, home and family, the importance it deserves for a full and complete life. There is one more type which is also part of the workplace that is entirely different. It is the disoriented new employee who has been left alone to find out about new responsibilities at work virtually without the necessary human contact. Related to this type is the desperate to connect type which is the type that has lived in relative isolation during the pandemic and is now hungering for human contact. There is also one more type closer to retirement that is the zest for life type that can be very productive in the workplace because of its experience and talent if given the chance. This type is not just there for the paycheck or career progress. Here the zest for life means the desire to connect with others and learn new things. Companies and management can accomplish more and be more responsive to needs of their employees by understanding these types and their different needs. Dorie Clark ,who teaches executive education at Duke and Columbia University ,says this is important for companies to retain talented employees and get the most out of them by understanding early on what motivates them. ...

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Lessons can be learned about careful reopening in fighting the coronavirus from other countries. Here the Netherlands experienced a rise of cases by 500% within two weeks of reopening after some poor decisions. The Mark Rutte government decided to open all bars and nightclubs resulting in a twelve fold surge in these locations in one week. Most of the new coronavirus cases were in people 18-29. Data from Dutch public health institute shows 4 out of 10 new cases linked to bars and nightclubs with 262% surge in cases for young people 18-24 years. This goes to show that with the vaccination drive what we see is the cases shifting to younger people, the unvaccinated, and to activities like nightlife. People going to work, or doing hybrid remote work with trips to the office, workers in factories, people doing essential shopping, are not causing the rise in cases. Much can be learned from these examples in working out reopening that does not lead to new crises with surging cases in new waves of coronavirus. Earlier in 2020 summer tourists who ignored mask and social distancing restrictions in Croatia brought on a post summer coronavirus wave to Germany and Austria. This time Greece and Portugal are introducing restrictions. Greece plans to make vaccine health pass required effective July 21 to go into restaurants. Another lesson from Netherlands this week is that a 20,000 person music event of 2 days in Utrecht where QR codes were required showing vaccination or PCR tests failed. About 1000 cases were attributed to the Utrecht event alone. Reasons given are that people faked the QR codes, or that the covid testing system produced too many false results as much as 20%. The same QR code system was followed at nightclubs resulting in big problems. One can never be sure that things work as expected and the risks are great as this adds up. Even vaccines offer limited protection and only if fully vaccinated depending on the type of vaccine. One dose of the vaccine is simply inadequate, and obesity, other morbidities can lead to problems. Withdrawing the mandatory use of face masks in most situations is also a risky decision of the Dutch government. Face masks offer the added protection at a time of variants that spread quckly, and when large parts of the population have only one dose of the vaccine, some elderly are still not vaccinated, and young people have not been vaccinated in large numbers. ...

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Biden calls ending the war in Afghnistan a "wise decision" for the American people. He says in his foreign policy speech that "it is about ending an era of major military operations to remake other countries." A Pew Research poll shows 54% of American adults support the decision.  In a sense the decision had already been made. Biden cited the Doha agreement president Trump signed a year ago with Taliban that called for the release of 5000 Taliban prisoners which included most of the top commanders, and no agreement on the future of Afghanistan. The decision had come much earlier than that when the wars in Iraq and Afghanistan from the period of George Bush were rejected by the American people for the cost and lack of purpose during the presidential election of 2016. That period marked the rejection of policies set under Reagan, Bush and Obama for starting American involvement in the Iraq-Iran conflict first on one side and then on the other side. All the time precious resources that were needed for infrastructure and services in education and healthcare were diverted to these wars, impoverishing America and also Europe. Looking beyond the words thrown around for political advantage both Trump and Biden and the American people, had decided to put these wars behind them 5-10 years earlier. Biden said assertively that America had made a tragic wrong turn, that was all he could say about Reagan, Bush, Obama policy. In the meantime he stated something else was happening- the US was losing its position in the world by wasting its resources in these wars that do not serve the interests of America. "There is nothing China and Russia would want more in this competition than the US to be bogged down for another ten years in these wars."  Biden was saying that he had the courage and tenacity to make a decision that was the right one and a wise one for America against all the transient opinion of people who lacked a grasp of what was happening to the American people- the increasing impoverishing of America in both rural and urban areas. And a similar situation in Europe. It was time to take a new turn, close this chapter, and write a new one in American history, brighter and with new sense of hope. ...

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Jawaharlal Nehru was leader of the party under Gandhiji which fought for independence in the 1930's. Under the India Act of 1935 India was given the opportunity to setup state assemblies and free elections  for local self-rule that prepared for eventual Dominion status similar to Canada and Australia. Rab Butler as India Secretary fought hard to get it passed through the British parliament. See Rab Butler in the adjoining articles gist. This is very important as none of what happened in 1947 the task of writing a new Constitution and a Constituent Assembly to do this for India would  have been possible without India Act of 1935- the initial training for elections and assemblies. Some good work was done for example in Tamilnadu Chief Minister Kamaraj under Nehru changed that southern state with progress in education, health, and industry over 15 years 1950 to 1964. By the seventies to the 2010 period the progress ran into serious problems first with one party followed by weak coalitions that led to poor governance, corruption and economic progress stalled. After the experience of China's modernization India is attempting a similar effort with Vision 2047 for modernization of infrasructure and development in speed and scale with one difference- the legacy of Rab Butler who no one knows about in India and forgotten in Britain, the simple document Hind Swaraj written on a British steamship from South Africa to England in 1912 by Gandhiji that asked Indians to self-reflect on their part in letting the British in "who made the Company Sardar?", the post 1950's leadership of Sardar Patel who like Rab Butler was also forgotten till 2014, Jawaharlal Nehru who won a third term in 1962 but was followed by a series of weak governments unable to steer economic progress of scale similar to China or Japan, Lal Bahadur Shastri cut short like JFK, and Narendra Modi who is bringing to the task the hard work and discipline that made it possible for first Japan and then China to modernize infrastructure and emerge as dominant manufacturing nations. Like Japan and China India with its own stumbling periods is making its way in the world today. Both Shastri and Modi are in the direct tradition of their Master, Gandhiji, in the words of Shastri "hard work is equal to prayer." ...

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David Barboza of NYT describes the hidden subsidies China gives to Foxconn for its plant in Zhengzhou, in a poor region of China. The factory there makes about half a million iPhones a day. These subsidies include incentive packages, infrastructure building, local government help of about $1.5 billion. As a result Apple has high margins. For a 32 gigabyte iPhone 7 that costs $400 to make, the retail price is about $649 in the U.S.  The hidden subsidies is why Apple can maintain dominance as profits are reinvested. And the result is that with only 12% of the smartphone market Apple can take in 90% of the profit, according to Strategy Analytics. Barboza looks back at Apple before co-founder Steve Jobs left in 1985 as focussing on manufacturing at plants in Colorado and California. By 2001 with iPod sales soaring the move to China under Cook, who previously worked for Compaq, was underway. With the introduction of the iPhone in 2007, the move to China for manufacturing accelerated. The reason: only China offered the kind of subsidies, the speed of approval and building of infrastructure facilities, the local government support, the hundreds of thousands of workers, and the best tooling engineers, to produce in huge volumes with speed, and maintaining quality levels. Earlier plants including one in Colorado Springs that this Lyrarc editor was invited to visit just prior to Jobs rejoining Apple had many quality problems, so much so that Apple had a large part of the manufactured personal computers set aside for rework. The quality levels were dismal, defects were unbelievably high. This is the Apple manufacturing process and plant that Jobs must have seen when he returned, and which he hired Cook to fix. Not only were costs higher in the U.S., (subsidies in China came later) when Jobs looked at the manufacturing quality and the inability to get the quality he needed from American workers and engineers at that time in the 1990's, only then did he turn to China- and the more he saw what was possible to accomplish there he sensed an unusual opportunity to finally put the ghosts of memories from competition with Microsoft at rest, and to surpass everything that had been done in Silicon Valley. The result one of the most ingenious and large manufacturing networks in the world, huge profits for an American company, except for one thing- it would not do much for American workers. ...

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Patel's speech on August 15 1948, provides a point of reflection for Gandhi's project of Hind Swaraj announced in his book Hind Swaraj written on a steamship voyage in 1909 returning to South Africa from England, and this week's Vikshit Bharat 2047 vision taking shape 75 years after 1947. Hear this audio podcast from All India Radio of Indian Deputy prime minister Sardar Vallabhbhai Patel's broadcast to the Indian Nation on Aug 15, 1948. It  is a point for reflection just one year after independence when the "paramountcy of the British inIndia came to an end," yet it was not clear that India would be pulled together as one Nation or be in pieces "Tukda, tukda." 75 years ago Patel talks about the situation in China where civil war raged- on that day the NYT showed Koumintang and Communist armies facing each other near Nanking and in Shantung province. Hyper inflation had already hit Shanghai a sack of rice cost 6.7 million yuan and the highest denomination currency was 180 million yuan, the Kouminatang decided to print money to fight the civil war.  Malaysia had riots and communist insurgency was about to take place. Synghman Rhee was made president of South Korea with US Gen. Douglas McArthur present in Seoul and the invasion by Communist North Korea on June 25, 1950 was around the corner.  Israel's Ben Gurion asked the UN to have Arab armies withdraw or it would have to go to war. In India the Kashmir invasion in the Himalayas starts on 12 September 1947 with Liaquat Ali Khan approving plans for tribals and Pathans to attack Kashmir.The states of Hyderabad, Travancore and Junagadh among princely states(which were one third of the British Empire) that had not been integrated. In Europe the Berlin Blockade had started in June 1948. This is the Asia and Europe that Patel saw in 1948 as he pondered on the meaning of Gandhi's success and what had still to be achieved. It is also a point of reflection in advance of  August 15, when India gained its freedom from British rule and set the stage for the decolonization of Indonesia from the Dutch, of Vietnam from the French, and Malaya from the British, followed by decolonization in all of Africa. ...

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The effort to shift China's economc growth away from the rampant overbuilding in housing and industrial capacity of the past to domestic consumption, and focus on meeting the demand for better medical care, quality of food, education and other quality of life products. China's leaders met at the Central Economic Work Conference in Beijing in Dec. 2015 to work out ways to make this shift so that growth rate of 6.5% and other goals can be met. Plans include reducing industrial overcapacity, dealing with overinvestment and unused inventory in housing, reducing financial risks from high corporate debt to GDP ratio approaching 160% estimated by Standard and Poors Ratings Services. By comparison the U.S. debt to GDP ratio is 70%. A steep rise resulted from the huge China stimulus program of 2008-2009, when the ratio was 98% for China. Experts such as Derek Scissors of the American Enterprise Institute are pessimistic about the prospects of successfully implementing reforms, saying reducing industrial overcapacity was a goal of the new Jinping Li-Keqiang leadership in 2013, but not much progress has been made in 2 years....

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Peggy Noonan reflects on the deep changes taking place in America. Behind the changes is a strong feeling in the middle and working class that it has been ignored by the establishment in both parties. She points to Citizens United and says it is bad for the Republican Party, encouraging large donors and hedge fund billionaires, making the party less accountable to ordinary people. The Clinton's fundraising also raises similar questions. Trade policies depressing wages have worked against the working class, yet espoused by politicians of both parties. The young supporting Sanders, she says have seen little to show capitalism is working for them. Institutions such as Congress, the presidency, the political class, the Supreme Court, the media, are all in an uncertain position, as voters lose faith in the ability of these institutions to work for them. Yet she points out that it is important that the U.S. voters choose wisely- keeping in mind the importance of electing someone who can demonstrate goodness and a sound mind- not obscuring the questions about Trump. Uncouth language, uncouth behaviours reflect sense and sensibilities, it matters a lot, Peggy Noonan tells the Republican Party and America....

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Gordon Crovitz points out in this op-ed that an issue of this importance of preserving an open and independent internet free of influence of governments and politicians, should not be left to the Assistant Secretary of the Commerce Department and administration officials. He points out the need for Congress to play a role in determining the future openness and independent nature of the internet free of politics and governments. He says the Obama administration's move to use the Dotcom Act to transfer the role now played by ICANN to a new body in which other governments say they want to play a major role, is a mistake as it risks the very openness of the internet that has been its core quality and mission till now. Doing this by July 2016, in 30 days following its submission to Congress by the Obama administration, is prevented by Senator Ted Cruz's effort in Congress requiring clear approval by Congress. The U.S. has a unique role in this respect because of its role in defending freedom of speech since its founding, a role found nowhere else in the world. ...

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David Wessel says there are three hypotheses about the slow recovery with growth of 1.9% in the first quarter of 2011, estimated growth of 1.4-1.5% for the second quarter. The first, is that this is transitory, with gas prices, Japan's tsunami disrupting supply chians, and Europe's poor handling of the financial crisis. This he scores as wishful thinking. The second, that the stimulus was too small, the need for a second stimulus, or the related hypothesis of the large uncertainty hanging over business, including the debt ceiling negotiations, deficit etc. This he scores as more convincing, but one is not sure different policies would have led to a different situation. The third hypothesis is that the underlying diagnosis of the economy itself was hopeful but flawed and wrong. Hope about the housing market- which has been proved wrong. The same for exports, or consumer spending. Wessel cites Ken Rogoff and Carmen Reinhardt's new book on the afterperiod of financial crises and asset bubbles, with data going back to many historical periods showing that the periods following crises are difficult having protracted periods of slow or marginal economic growth....

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Private companies such as Reliance Power and Tata Power control only 27% of India's power generating capacity of 205 gigwatts. The government controls most of the capacity in this sector for generation and transmission of power and has failed to invest enough to keep up with growing needs. The government has failed to achieve even modest expansion goals for power generation. A target of 78.7 gigawatts of additions to the national grid were planned for the five year period ending March 31, 2012, but only 70% of that target has been met. China during the same five year period added 418 gigawatts. State utilities sell power at discounted rates resulting in large losses, making it difficult to invest in upgrades in transmission technology and facilities. Rate regulations make it unattractive for private investors. Another problem is the shortage of coal, with coal production concentrated in one state owned firm Coal India that has failed to invest in new technology and improvements. The result is the kind of massive outages from overload of the national power grid in July 2012, affecting most of northern and eastern India....

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James Q. Wilson points to the link between educational levels and inequality. He says the poor face too few skills and too few opportunities. The link with education is critical. He cites information from the Bureau of Labor Statistics which show that between 1979 and 2010, hourly wages for those with a college degree went up 33% for men and 20% for women. For those without a high school diploma wages declined 31% for men and 9% for women. It appears that men have been more adversely affected than women. Minorities have done poorly especially Hispanics and Blacks. Social factors such as unwed mothers aggravate conditions for the bottom fifth in incomes. As the demographics of America shift to higher population of Hispanic immigrants, the situation worsens. High schools in Hispanic areas of New York city with high dropout rates, to take one example, can affect income inequality as more immigrants take jobs at the minimum wage level. The 2008 financial crisis has also taken a higher toll on minorities and people with modest incomes by reducing their savings and through the large number of home foreclosures....

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Spain's finance minister, Luis de Guindos, announced a two year plan in which Spanish banks are required to set aside 50 billion euros for losses on bad real estate and other loans. This is part of the effort to restore the flow of credit in the economy. He told a news conference: "At the moment credit is falling by around 5% or 10%." Banks have been slow in Spain to get rid of bad assets and proceed with a bank cleanup.The provisioning for losses required under the plan is by type of asset- for undeveloped land this will be raised to 80% of value from the 31% used currently, for new homes this goes to 35% from 25% used currently. The idea is to get banks to sell these properties at today's prices and give Spaniards an opportunity to buy these homes as opposed to letting this remain on the bank's books. Banks that merge will be given one year, other banks will be required to do this in one year. The cleanup will make it easier for Spanish banks to obtain financing in international markets, and in turn improve the flow of credit in the Spanish economy. ...

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According to preliminary estimates of the UK Office for National Statistics, gross domestic product fell 0.5% in October through December 2010, after expanding 0.7% in the third quarter of 2010. The UK inflation rate increased to 3.7%. At the same time the money the UK needed to borrow in December 2010 came in at 16.8 billion pounds, down from the 21 billion pounds in December 2009, showing an improvement in public finances. The two main drivers of UK growth are now set to slow down. Consumption spending down because of higher unemployment and inflation, and tax increases equivalent to 8% of GDP over 4 years. And government spending cuts leading to a reduction in spending for the 2011 fiscal year of 23 billion pounds. UK economic growth is 2010 is 1.4%, after contractions of 4.9% in 2009 and 0.1% in 2008. The UK Treasury chief George Osborne said the government will "not be blown off course by bad weather." Central bank governor Mervyn King pointed to the choppy recovery. Referring to the austerity policies King said, "the right course has been set and it is important to maintain it."...