LyrArc Article Gist
There is a lack of enthusiasm for Rishi Sunak and Liz Truss in the so-called blue wall Tory constituencies in the south of England sasy this report in The Times.

LyrArc Article Gist
European banks hold $147 billion of Portugal's assets and $117 billion of Greece's assets. The banking systems of Euopean lending countries are heavily exposed in the event of a sovereign default which is why it is in the self interest of Germany and France to come up with an aid package that restores confidence in financial markets, to avoid a direct hit to their banking system. Because of the ineptitude of Europe's decisionmakers, especially Chancellor Angela Merkel, private investors will not play the role in helping roll over Greek debt at tolerable interest rates that they could have played. With the now larger aid package of $160 billon there are still concerns from other angles. One is that debts of Greece will continue to grow- hence the three year aid plan. Analysis by the Economist suggests that the Greek government debt would rise to 149% of GDP by 2014 even with an aggressive budget deficit reduction of 12 percentage points (excluding interest costs). This assumes an interest cost of 5% in the aid package. In an average year Greece needs to refinance 40 billon euros of its debt and $70 billon is needed to cover cumulative budget deficits till 2014, hence the need for the IMF to step in and the nervousness in financial markets. ...

LyrArc Article Gist
Without a final Brexit agreement Britain has the advantage of being able to use Northern Ireland, which would remain in the EU, as a way to send British goods into the European market including goods from companies subsidized by Britain. This and related reasons on Britain being able to set its own rules on the borders between the two Irelands, and on its trade and movement of goods, is why Boris Johnson says Britain does not absolutely need an agreement on Brexit with the EU.

LyrArc Article Gist
Behaviours of young people going to beaches and bars, ignoring social distancing guidelines and not wearing masks is leading to a rise in the number of daily cases in Europe. This includes an illegal rave in a Berlin park. The incidence of coronavirus is now 19.6 per 100,000 people for persons ages 20 to 29 compared to 9.7 per 100,000 for the French population as a whole. Germany has recorded 900 new cases daily, France 1000, and Spain 2000 as a result of these youth behaviours during the last week.

LyrArc Article Gist
The pandemic brings together companies in three countries U.S, Italy and France with the merger of Fiat Chrysler with PSA. Fiat Chrysler is owned by the company Exor owned by the Agnelli family in Italy. PSA is owned by the Peugeot family in France. In addition the government of France and Dongfeng Motors in China have stakes in PSA.  During the 2008-2009 crisis Chrysler merged with Fiat with the help of the Obama administration which pursued a policy of promoting small cars. Instead the merger saved jobs but led to the PR effort for small Fiat cars and the focus on the Jeep Cherokee and SUV's like the Dodge Ram. Today one hardly ever hears about small Fiats from Fiat Chrysler that was the basis for government help on the merger. 

LyrArc Article Gist
South Korea prepares for new elections with about a third or quarter of the people strongly supporting Yoon whose impeachment was upheld by the Constitutional Court April 4, 2025. Adjoining BBC Special Report shows how Yoon went astray. The gist also shows how South Korean democracy is only since 1988 compared to India's 1948, and how India's democratic traditions were formed under the Birtish with representation in parliament, first British then Indian, and in state assemblies in the 1930's, under Nehru in 1950's.

Today with the US imposing 25% tariffs on South Korea there is no government to make a response or strategy to deal with this.

LyrArc Article Gist
France's prime minister Edouard Philippe announces hard line measures after rioting in Paris in yellow vest protests.

Yellow vest protests will be banned in worst hit neighborhoods in Paris. The Paris police chief was replaced after violence, looting and arson in the Champs Elysees area of Paris. 10,000 gilets jaunes yellow vest protestors marched in Paris. Police have come under criticism for excessive use  of force. Hand held rubber bullet launchers and explosive sting grenades are some of the devi ces used  by police. The government says not enough force was used. Philippe said "inappropriate orders were given to reduce use of rubber bullet launchers. He says there should be a hardening of France's doctrine of law and order.

Suggests an impasse has been reached between the government and protestors.

LyrArc Article Gist
The large stimulus effort in Canada is about $382 Canadian dollars or $300 billion U.S. dollars for help to families, workers and businesses. It is about one fifth of Canada's total economic output. This has helped Canadian banks RBC and TD avoid major loan losses. 

LyrArc Article Gist
The view from Qureshi, Foreign Minister ofr Pakistan at the Journal's offices in New York of a sudden withdrawal when the Pakistani Taliban are threatening Pakistan and so close to Islamabad. He fears "more misery, more suicide bombings, and adramatic loss of confidence in the economy as investors fear that an emboldened Taliban , no longer pressed by coalition forces in Afghanistan, would soon turn its sights on Islamabad. Pakistan faced with a withdrawal would lessen cooperation against AlQuaeda and the intelligence that made drone attacks so precise in targeting Taliban leaders may be withdrawn. Pakistan may then strike adeal with the jihadists.

LyrArc Article Gist
This graphic shows the increase of interest rates by central banks around the world to cope with inflation and risks to the economy. Sri Lanka, Ukraine, Russia, Egypt, Argentina have large increase in rates. The US increased rates by 0.75% this week.

LyrArc Article Gist
Brandon Johnson not just won the mayoral election in Chicago but also showed that putting the community effort forward to continue fighting crime, distancing oneself from extreme positions such as unfunding police, and energizing the community through a grassroots campaign works. When people can see and feel the candidate and that he cares for them, is grappling with the problems, it is possible to come from behind, for an unknown candidate like Johnson to win. Julie Bosman talks to people in Chicago to show how this was done. Mr. Johnson, a public school union leader won over a well known Democrat Mr. Vallas who fought the election on tougher action to fight crime, winning 51% to 49%. Mr. Johnson carried wards with black majority population by over 80%. Johnson pitched voters on a public safety plan that went beyond policing while supporting police yet getting the community involved. Johnson also did well in white neighborhoods along the lake and in the northwest Hispanic neighborhoods of Chicago. Bernie Sanders was out campaigning with Johnson in the final days of the campaign. And Representative Jesse Garcia also supported Johnson in the Hispanic neighborhoods. Mr. Quezada, a Cook County Commissioner for the northwest side says people just felt- "we want to be invested in, we don't want to just be punished."  ...

LyrArc Article Gist
That climate change is real and pervasive can be seen in the low levels of water in America's largest river the Mississippi. As in Europe with the Rhine river in Germany water levels never seen for decades are creating problems along the river.

LyrArc Article Gist
The head of the CDU party who would become chancellor after Merkel, makes an emotional plea to the British people to change their mind and remain in the European Union. In an affectionate letter to The Times of London many leading figures from politics, industry and the arts in Germany made a plea that Britain remain in the EU "from the bottom of their hearts." A look at dozens of letters in response to this article in The Times shows that many Britons feel that Britain would have voted to remain if Germany and Merkel had given prime minister Cameron a better response during negotiations in 2016. Even chancellor Merkel warned Germans not to take an indifferent or complacent attitude to Britain's staying in the EU. The letter makes amends by saying there is an indissoluble bond between Britain and Germany because of the help given by Britain to rebuild Germany after the war. "Without your great nation this nation would not be what it is today, defined by freedom and prosperity," the letter says. It says "should Britain wish to leave the EU it will always have friends in Germany and Europe. But Britons should equally know that know choice is irreversible. Our door will always remain open: Europe is home."  Katarina Barley, Germany's Justice Minister whose father is British, says she supports a second referendum on Brexit. The letter is signed by Andrea Nahles, head of the Social Democrats, Annalena Baerbock head of the Greens party. Also signing it are the heads of Daimler, Airbus and the German Federation of Industry. Annegret Karrenbauer, head of the CDU says it is looking for constructive proposals from Britain, now that the deal put forward in the British parliament was defeated by a large margin. "We will not block the path to Britain remaining in the EU." The letter is significant in that it changes the whole tone of German leaders across the spectrum towards Britain- as critical to the idea of Europe, and the dawning in German minds that Europe would never be Europe without Britain, would never be Europe simply with France and Germany and the other nations. ...

LyrArc Article Gist
Poland, which shares a border with Belarus, has actively supported the movement for democracy and freedom of expression in Belarus.

LyrArc Article Gist
The National Assessment of Education Progress, NAEP, which is a report card of educational levels in the U.S. secondary school system shows 36% of fourth graders in the U.S. are proficient in reading for 2017. For eighth graders this drops to 34% in 2017. This shows that a little over a third of fourth and eight graders are achieving proficiency in reading, a glaring sign of failure leaving about two thirds of young people behind. With declining level of reading proficiency and proliferation of social media, the bottom 25% are faring much worse than even this dismal result.

Between 2015 and 2017 there was no improvement in NAEP scores.

LyrArc Article Gist
Britain lifts the lockdown quickly after the Business Secretary and the Finance Minister warn of possible loss of 3 million jobsin the hospitality sector if it remains closed over the summer. Much of the job gains in the U.S. in April came from surprise additions of jobs in the hospitality sector.

Britain will now relax planning controls to allow pubs, restuarants and cafes to open outside areas for business. Outdoor weddings will now be permitted, with indoor weddings of upto 10 people allowed by early July. Places of worship, churches, open June 15, as do non-essential shops. 

The R rate has risen slightly yet it remains between 0.7 and 0.9. 

LyrArc Article Gist
Krugman comments on the Swiss National Bank's decision to give up the peg of 1.20 to the euro made in 2011, and reduce interest rates to a negative 0.75% on Jan. 14, 2015. He points to the dangers of complacency about the deflationary trend in Europe, Japan and the U.S., and deflationary pressures in China in the first quarter of 2015.

LyrArc Article Gist
An investment of $1000 in Deutsche Bank shares in 2015 would have led to loss of most of the capital - loss of 75% of it, says this report in DW.com. For years Deutsche Bank chased profitability but the results are dismal. Recently 18,000 jobs were slashed and the bank is now accepting the inevitable shrinking. It all started with with chasing profitability in the U.S. as an investment bank leading to deep losses during the 2009 financial crisis. While German and Swedish teachers as shown in this weeks stories from Europe show struggle to make ends meet on low salaries, jobs in banking have continued to pay even when their are steep losses as at Deutsche Bank. This report argues about who is responsible for high severance pay at banks investors, shareholders, supervisory boards or regulators. Ultimately it is about what choices a society makes, and about the importance it gives to education compared to other occupations, and to good governance across the board without exceptions. Developed countries sometimes fail to learn the lessons of the past in the chaos of the times. ...

LyrArc Article Gist
A quarter of the 20 clubs in the Premier League soccer in Britain have seen managers fired. There is a lot of pressure. On managers, players and teams. Jose Mourinho says the League has lost much of the stability. Even relationships don't last, players tired of each other, tired of managers and everything is moving too fast, say managers. Arsenal follows Tottenham in changing managers after losses against other soccer teams. Arsenal is in 8th place and Manchester United in 9th place, owners see changing managers particularly in December as a way to keep their place in the big leagues. With more jobs opening up it is not particularly bad for the fired managers such as Pochettino of Tottenham who can sit at home waiting for the call.

LyrArc Article Gist
The Obama administration's foreclosure prevention programs were designed for subprime lending situations. They were not designed for the high unemployment experienced in the U.S. A Treasury Department effort allows jobless people to postpone mortgage payments for 3 months, the average length of unemployment however is 9 months. Only 7,397 participants are in this program. As part of the bailouts Treasury had $46 billion to spend to prevent foreclosures, as of May 2011 Treasury has spent only $1.85 billion. Because housing provide so much of the underpinnings for the U.S. economy, it is essential to put housing back on a stable footing for an economic recovery. The lack of a sensible plan in this area is simply incomprehensible. Morris Davis, a former Federal Economist, has estimated that a million more homeowners went into foreclosure because of a lack of help for the unemployed. Davis is an associate real estate professor at the University of Wisconsin. He says its simply outrageous that the Obama administration has done so little. President Obama recently took credit for a recovery and jobs saved in the auto industry in Detroit. The failure to come up with a workable plan and to do so little in the larger area of housing and unemployment, is likely to overshadow everything else. This is especially so with the Fed approaching its limits after QE II, and with the administration and the Congress in a stalemate over further stimulus and the deficit....

LyrArc Article Gist
Working families who are also struggling to make a living in Los Angles support teachers and other school district workers who are on strike for higher wages. Los Angeles is one of the most expensive cities in the US with rent taking up a significant part of lower incomes that have been depressed for a long time.

LyrArc Article Gist
The debate in the U.S. Congress about whether pandemic jobless benefits are deterring people from returning to work. Are extra $600 weekly payments affecting the way people return to work. The surge in the pandemic in many states in July could also be a factor. The extra weekly jobless benefits amount to about $18 billion a week and are set to expire unless Congress renews them.

The enhanced payments of about $15 an hour in the U.S. for a 40 hour week amount to $600, before regular state unemployment benefits are added in. Researchers say 68% of unemployed workers receive more benefits than they did working. Some of this added benefit during the pandemic helps people to stay home for work that involves contact with people such as in travel and food increasing risk of spread, which can be a good investment in prevention. In other work such that involves no contact or which can be done from home, there is good reason for incentives for gradual return to work.

LyrArc Article Gist
A call for immigrant friendly policies in the Republican party in this WSJ editorial. It shows immigrants are not looking for a handout and immigration today is net zero from Mexico.