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The new faces in the Biden administration on economic policy are Janet Yellen, as head of the central bank, the Federal Reserve, and Cecilia Rouse, a Princeton labor economist, as head of the Council of Economic Advisors. In this report WSJ looks at the economic policies of the new administration after Mr. Trump rejected globalization and international trade agreements that were not in America's interest or that hurt American workers.  Informal conversations with experts suggest WSJ says, that globalization is now suspect as a way that benefitted China and other countries including Germany, and hurt the U.S. France, Britain and other countries in Europe that were not strong exporters. This hurt their industries which were eroded by imports resulting in the three decades long destruction of communities across these countries that depended on manufacturing. It has also hurt countries like India that let their markets be dominated by Chinese imports, with a reversal of policy in 2020 with self reliant economy under "Atman Nirbhar" policy as the new goal. Mr. Trump's tactic in this trade war was to fight back to regain America's position in manufacturing with tariffs on imports. The trade deficit had to come down with China just as it had done with Japan decades earlier. This was starting to happen. One problem in bringing down the imports was the increase in the value of the dollar, as Janet Yellen has noted. The new policies will look at what the effective policy will be while keeping this goal in mind.  Both Yellen and Ms. Rouse have spent years studying labor markets and Ms. Rouse is quoted here as saying: " With open trade there are winners and losers. The losers are really losing, and we need to take care of them and take on more nuanced models of international trade as a result." Other experts from the earlier Democratic administrations such as Prof. Frankel at Harvard say that there needs to be increased focus on American workers left behind by trade, technology and unequal education, with more spending on preschool, infrastructure and health. All this suggests that there will be a continuation of U.S. policy in challenging Chinese use of globalization to advance its interests, chastening Americans on the use of the very word globalization which can mean different things to different people based on how they can gain advantage. The word may even be entirely dropped in favor of what the policies are and what they do for the American worker, American communities including small towns, and the American people, spelling each of these out every time supply chains and the global economy is mentioned. The new administration will get an opportunity to show that it too can come up with new ideas and action plan to strengthen American manufacturing and jobs. It will also have to show substantial results as people have lost patience with Democrats and Republicans on the lack of progress in rebuilding America's leadership role in the world economy, and in defending American workers and factories. Clinton, Obama and Bush all offered false promises on trade with China ignoring the damage this had done to American leadership in the world economy. Clinton with support for China's entry into the World Trade Organization, Bush with foreign wars and costly diversions and regulatory failures with banks that led to the 2009 deep recession hurting Americans, and Obama with the lack of will and interest in America's leadership role in the world as the dominant nation in manufacturing,   ...

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General Electric Co. GE says CEO Jeffrey Immelt will retire and be succeeded by John Flannery in August 2017. Flannery is head of the healthcare business at GE.

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Sarah Wagenknecht is combining socialist credentials with support for workers and unions with a platform opposing migration. She is polling 10-20 percent and is second to AfD right wing party inthe polls in three German states of Thuringia, Saxony and Brandenburg. Nationally she is polling 9 percent. Not that this is new.It is new only in Germany with CDU/CSU and Socail Democrats, Greens, Free Democrats dominating with right wing anti migration position taken by AfD. Mette Frederiksen in Denmark the Danish prime minister has long felt that migrations hurts working class families and distracts from the main issues facing workers. On this platform she has won elections in Denmark. Scandinavia is moving in this direction taking up working class issues, policies that favor unions and workers, support child care and families, yet opposing migration, but not with extremist right wing ideologies not compatible with democracy. This is a more effective and sensible path for Europe as there are more urgent issues, climate change, child care and families, wages and incomes, cost of living action, why the need to distract the attention, the vital attention needed to these overwhelmingly important tasks. Here it is common sense that should prevail- by keeping migrants out of this, no more distraction from the tasks at hand for the Nations of Europe, and keeping borders safe. ...

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Peter Hotex of Baylor Medicine in the US is a pioneer and leader in getting low cost traditional vaccines to billions in Africa, Asia and Latin America.  Here Peter Hotez of the Baylor College of Medicine Tropical School is interviewed in The Hindu. He talks about how the new mRNA vaccines are "shiny toys" pushed forward in the US in 2020 under innovation drives, and that the vaccines made by traditional methods are just as effective and provide lasting protection. Without vaccinating the entire world population including the billions of people living in Africa, Asia and Latin America, there will be no end in sight for the pandemic, he says, and the best way to do this is through vaccines made by traditional methods, methods used by Bharat Biotech for Covaxin and Biological E for its vaccine. He said mRNA is a brand new technology  and "it will take years to scale it up to make 9 billion doses" of vaccine for poor countries. Baylor has developed the vaccine technology using traditional methods such as yeast fermentation expression technology used for Recombiannt Hepatitis-B vaccine. Its been around for 40 years. Baylor will transfer the technology to Indonesia, India, Bangladesh, all over the world. He says in terms of virus neutralizing anti-body immune responses it is as effective as the mRNA vaccines. Hotez is critical of some pharma companies- "the rest of them want to bicker about patents. we're not going to go down that direction." Baylor is providing its technology for manufacture to companies to fill the need in poor countries, without patent protection or quibbling about legal things such as indemnities, says Hotez. Hotez also thing recombinant protein technologies vaccine with its traditional approach could also overcome vaccine hesitancy, a key factor for unvaccinated in Europe and US which have stuck to mRNA vaccines. The newer technology behind mRNA could make parents hesitate to vaccinate their children with these technologies, and also be a part of the mental attitude of unvaccinated adults having hesitancy.   ...

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First disrupt the young people's attention and create effects on mental health of long hours spent on social media such as Tik Tok. This results in a loss of literacy on basic knowledge of civics and American history to lower and lower levels. Then let these young people decide who should run the country and its government for the next 4-8 years. The founders never intended this and never anticipated this threat. Congressmen Republican Gallagher of Wisconsin and Democrat Krisnamoorthi of Illinois introduced a bipartisan bill to ban TikTok in the US considering that it was foreign adversary application when its literacy effects are even more a concern. Byte Dance has appealed the law that goes into effect Jan 19, 2025. The appeal is now before a 3 person panel of the Columbia Circuit Court of Appeals of Sri Srinivasan, Neomi Rao, and Douglas Ginsburg. Does Byte Dance have recourse to the First Amendment rights in the US Constitution when the US sees Byte Dance as a foreign adversary controlled internet social media service, is the question before the Appeals Court and next before the US Supreme Court. The US government has shown the judges confidential classified data that shows why it thinks there is foreign adversary influence of some sort.  It is interesting to note that national literacy standards and the ability of average American young people to know enough about American history and civics that is in a dire state today and a key vulnerability for US democracy. This is gravely harmed by social media influence. Only negative effects on mental health of children and young girls has been put forward. Too many hours spent on social media is a negative influence which is why China and now Australia and UK have put restrictions on is use. US has none. India has banned Tik Tok for security reasons. In all situations there are negatives here yet it is an appalling thing that literacy is not the biggest one put forward when it should be for this Nation. ...

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The maximum that can be paid out to executives in upfront cash for bonuses is 20% under the rules set by the European Union starting in 2011. And the amount of time that at least 40% of an EU banker's bonus must be deferred is 3-5 years. The US has not set up similiar rules restricting up front cash bonuses to prevent executives from taking excessive risks. During the 2008 financial many banking executives collected huge bonuses by taking excessive risks, even though the banks suffered huge losses after the departure of the executives. Now the SEC, the Federal Reserve and other government agencies in the US are reviewing the rules. Projected pace of Wall Street profits in 2010 are 28.7 billion for 2010, and the fear is for a repeat of the situation in 2008 as the US has no rules similiar to the EU. Britain's Financial Services Authority passed similar restrictions recently. The Dodd-Frank legislation for financial reforms requires the pay related regulations to be set by April 2011. That legislation specifically prohibits any bonus plan that "encourages inappropriate risks" at financial firms with more than $1 billion in assets. The view of the European Union's financial services commissioner, Michael Barnier, is that not enough has ben done in this area in the US, and doing nothing is to ignore the right lessons from the financial crisis....

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The humble roots of Jorge Bergoglio, born of Italian immigrants to Buenos Aires, Argentina. He studied theology in Germany before becoming a Jesuit priest in 1969. Bergoglio was made bishop in 1992, archbishop of Buenos Aires in 1998, and cardinal by Pope John Paul in 2001. Bergoglio has spent much of his time working with the poor and improving education and has avoided the titles and trappings of the position. He lived in an apartment near the cathedral in the Plaza de Mayo in Buenos Aires, and cooked his own meals as archbishop. He loves Argentine tango music and is a soccer fan of the San Lorenzo Club, which was founded by Father Lorenzo, a priest who assisted at-risk kids. The sense of observers is of a person of overwhelming authenticity. Many in the Catholic Church worldwide feel this was a good choice for Pope by the cardinals because this is likely to bring the church closer to the people in Latin America, Europe and other parts of the world, and infuse the Church with new energy for renewal. Evangelical churches have spread in Latin America, particularly in Brazil, and church pews are seeing smaller numbers of people in Europe. Bergoglio, now Pope Francis, is seen as the right choice to reverse this trend and bring a regeneration of Catholicism at a difficult time. ...

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A technology that has been known for years but with problems to solve before it can go on the road is being developed by automakers. It will increase fel economy by about 15% and reduce emissions of oxides of nitrogen a key smog component. GM is working on getting HCCI which stands for Homogenous-charge Compression- Ignition to work in a gasoline engine. For it to work the combustion process in such an engine has to meet certain conditions, the mixture of air an fuel has to be homogenous and be at certain temperatures. Once this is achieved combustion occurs without a spark. The trick is to get the temperature and gas mixture to just the right homogenous levels so that it sparks and burns efficiently, which at this time is being achieved by computer controls keeping the engine rpm within a certain optimal range of 1000-3000 rpm which covers typical driving. Problems that remain to be tackled are the faint rattling type noise when the engine shifts to spark ignition when its outside this range of rpm, and the emissions reduction at low loads, and handling a range of fuels. GM has made progress upto the advanced engineering and road test phase for the Saturn Aura. German automakers Mercedes and VW are perfecting there own versions of HCCI and Honda is developing its version and its a top priority for these automakers. ...

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Iraq is Iran's most promising market for gas exports. Iraq needs the gas for its power stations now that Islamic State has been decisively cleared from Iraq. Yet Iraq is having difficulty making payments to Iran for gas supplies because banks are not ready to handle the payments with the reimposed tighter U.S. sanctions and restrictions. The deputy head of media at the Electricity ministry in Iraq, Sadoun Shehan, told WSJ that transfer of money by Iraqi banks is prevented because of U.S. sanctions. U.S. sanctions were reimposed by the Trump administration after they were lifted in January 2016. The new sanctions prohibit gas exports from Iran. Iran had hoped to make the sales and also export to the European Union when sanctions were lifted. Iranian exports of gas that started in 2017 were itself delayed for 4 years by the war from Islamic State.  Iran has the second largest reserves of natural gas in the world. The Trump administration's sanctions have led to a drop of Iranian crude shipments by 29% in 3 months and added to upward pressure on oil prices to take prices to $80 a barrel. This issue has implications for India and China, particularly India as it faces both higher prices for oil and the tight restrictions in purchase of Iranian oil. ...

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Prof. Jeffrey Wasserstrom of UC Irvine reviews Henry Paulson's "Dealing With China." Paulson was head of Goldman Sachs investment bank and Secretary of the Treasury 2006-2009, the period of the global financial crisis. He made 70 visits to China since his days at Goldman Sachs and calls Chinese leaders Jiang Zemin and Jinping "old friends." He established the Strategic Economic Dialogue in the Bush administration for dialogue on economic issues with China, and setup the Paulson Institute at the University of Chicago to focus on China-U.S. relations. One of Paulson's points is that China's financial system faces a day of reckoning, with large losses and many restructurings. Wasserstrom's review looks at Paulson's view of dealing with China and points to a sense that it needs updating because by the time the book is published a lot has changed with the new Jinping administration. The new administration in China is more assertive in foreign affairs, and less tolerant of both the corruption that became part of the Chinese capitalist development inside a state run one party system, and of the voices for more openness. It also has placed tight controls on the Internet. Jinping sees a constructive role for the Communist party in the future as China makes economic reforms away from state run enterprises, and is working to strengthen the party through discipline and anti-corruption initiative. The reckoning Paulson mentions, Krugman and other experts have described in other language- not as a reckoning but that China was no exception and would face the same problems that the U.S. and the eurozone faced since 2008 from financial excesses. In this sense Paulson's views and interactions with the Chinese leadership may represent another era, a period of exuberance when some of these financial excesses were being built up. Today's economic team of Jinping and Li Keqiang is more focussed on making sure the transition through a economic crisis is managed carefully, keeping in mind the risks for China considering its history, and the situation where China is still a "middle income country" with aspirations for further development to improve incomes and living standards. Their view is that tight control is needed as China makes this transition to a less state enterprise dependent, and more consumer economy, so that there is no loss of the gains made so far. A different set of skills and deft management of the economy is needed, making Paulson's views from another era less relevant. External influences such as managing the complex China-Japan relationship as both countries become more assertive are creating another dynamic in Asia, which Chinese leaders may see as requiring careful management, making Paulson's experience less relevant for a new period with new challenges. For the U.S. the economic cooperation with China now occurs with an added political dimension. Of concern for the tight control, seen as not forward looking and not bringing more constructive voices into the system, and the new complexities of carefully managing the changing U.S.-China-Japan relationship in Asia. ...

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Business Week's Chad Terhune points out that the health reform bill that passed Congress will do little to restrain the overbilling by pharmaceutical companies, medical device and equipment makers. Chad cites numbers from the U.S. Health and Human Services Department that shows $47 billion in Medicare spending went to dubious claims in the year ending Sept 30, 2009. This is 10% of the $440 billion Medicare program. And 10% of the Medicaid program also goes to dubious claims. Consider then that Congres allocated $10 million annual increase to fight fraud. A suit filed by a former Siemens manager at the federal court in Philadelphia states that Siemens routinely overbilled the Veterans Affairs Department and other governmental agencies by humndreds of millions of dollars for MRI and CT scan machines.

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The situation for organic farmers in the U.S. and Canada where conversion is discouraged by the high costs incurred over 2-3 years for converting to regular farming. A period in which use of pesticides and other chemical products is reduced and new farming practices are introduced. During this period farmers still sell product at the regular price, even as high upfront costs are incurred. The result is tight organic supplies for corn, soyabeans and other food products, with organic prices as much as three times the regular price. In responding to the surging demand buyers are getting involved to support farmers by guaranteeing prices over several years, and in some cases buying farms. This trend should result in lower prices for organic foods as supplies catchup with demand.

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Having an adequate supply of N95 masks is critical for each hospital tackling the coronavirus pandemic. The lack of enough masks leaves health care personnel without the basic protection and is a grave emergency. Hospitals are resorting to reuse of the masks in this crisis and this is not a good practice as it increases the chances of infection. President Trump has invoked the Defense Production Act on April 2 against 3M. This gives the federal government more control over 3M's operations to ensure that it goes all out to make the healthcare N95 masks that the hospitals need in this grave emergency. This report in the WSJ covers the situation as of April 3 on the supply of M95 masks for health workers and others. N95 masks block 95% of very small particles. Supply in the U.S. is for 50 million N95 masks. Demand in the U.S. is for 300 million N95 masks as estimated by the Department of Health and Human Services. in March- this is how many are needed by health care workers to fight this pandemic in the U.S. The principal manufacturer is 3M. 3M company has doubled its production since January 2020. The trend before this pandemic was to send production over to China and other countries. This is changing now with the pandemic and the U.S. policy shifting to be self sufficient in medical supplies in the event of an emergency. A policy Peter Navarro, who heads the agency in charge of getting medical supplies, says President Trump is insisting be implemented. Hospital buyers supported the earlier trend to keep costs down, but this appears to be a costly mistake, putting health care workers in hospitals across the U.S. without the basic protection they need. Minnesota based 3M invented the first modern disposable masks in the 1960's. Interestingly 3M continued to make millions of masks in the U.S. even though competitors moved manufacturing overseas. The 50 million disposable masks 3M made globally went to workers in industries where it provided extra safety from metal shavings or other substances, and medical workers. Now 90% of masks go to medical workers. 3M ramped up production globally since January 11 when the pandemic first hit to 100 million masks a month globally, and 35 million a month in the U.S. at plants in South Dakota and Nebraska. 3M says that it will import 10 million masks from its factory in China, which earlier this year was restricted from shipping it outside China as China needed masks for the pandemic. About 10 million more masks are made by two other manufacturers Alpha Pro and Louis Gerson Co.  U.S. Department of Health and Human Services ordered 600 million N95 masks from 5 companies to distribute to hospitals and build up the national medical supply stockpile. 190 million each of this is from 3M and Honeywell and 130 million Owens & Minor Inc.  3M says it will make 50 million a month in the U.S. by June. Honeywell which had moved production overseas, plans to bring back production to the U.S. by making 10 million masks by May at its Rhode Island and Phoenix plants. There is a company in Singapore that makes one million masks a day in China and other Asian countries, Pasture Pharma Pte, but most of it is committed to government agencies in China.   ...

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Brandenburg Berlin metropolitan region of which Brandenburg and city of Berlin are separate states remains a strong economic region. This is where Germany has evolved under ruler Frederick since the end of the Thirty Years War in 1648. Dietmar Woidke of ruling Social Democrats is expected to win a fourth term in office with the SPD expecting 25% of the vote in the important state of Brandenburg next to Berlin. Even though the AfD right wing party is expected to do well approaching 25% of the vote, there are other factors at work. Sara Wagenknecht has rebranded the Die Linke Left party with immigration policy that is similar to policies now being accepted in Denmark, France, Netherlands and other EU countries that see the need to restrict immigration, drawing 15% support. A good example being Mette Frederiksen, Social Democrats in Denmark. A coalition with the Christian Democrats CDU with about 15% expected vote and Greens with less than 5% is likely for about 45% of the vote. Other factors that show a stable Brandenburg are the economy with the new regional airport hub of Berlin Brandenburg airport, a new Tesla factory, rich natural resources a third of the state of 2.6 million people being filled with forests and lakes, and a stable population after the reunification in 1990 without rural depopulation as in other parts of East Germany, only 12% people of immigrant background including Wagenknecht.   ...

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As the Conservative Party chooses its new leader the hard reality that the country does not support a no-deal Brexit favored by frontrunner Boris Johnson intrudes into the race. The Labour Party plans to build cross party support to block any no-deal Brexit in parliament.

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This report in the WSJ gives a detailed profile of Liu He, who as vice premier and top regulator is now a top economic official in charge of the financial system and the industrial sector. The appointment will be confirmed at the annual meeting of China's legislature in March 2018. Liu He is a classmate of Jinping at Beijing's Middle School 101, went to Renmin University for a degree in Industrial Economics, and studied at the Kennedy School of Government, Harvard. As the superregulator and overseeing the central bank, Liu He's team has set the goal of bringing financial risks in the Chinese economy under control in 3 years. This team also setup the 2018 economic blueprint that made "Xi Thought" the guiding principles for running China's economy. Financial risks in China's economy from the high debt to GDP ratio which worsened after the 2008 financial crisis and higher lending practices, are seen as a threat to the economy. Policy now is focused on stabilizing the economy and setting a long term path to slower but sustained growth, so that the entire country can share in the benefits of modernization that the coastal regions and parts of the country in the east have experienced during a period of rapid growth. Even the quashing of term limits for presidentcould be seen in the light of this economic blueprint as financial risks could lead to other serious problems if a stable path for the economy is not set and followed over the next decade. As part of this effort Xi Jinping has focused his efforts on corruption to improve perception of the party in the country. Liu He is the main economic official speaking for Jinping at Davos Forum. Another member of the circle advising Jinping is Wang Quishan, who has helped run the anti-corruption campaign. Both Liu He and Wang are expected to handle the future relationship with the U.S. Liu He's policy ideas are for strengthening the state sector with mega mergers, closing less profitable competitors, reducing industrial overcapacity, and making the remaining companies stronger and more profitable. This includes making firms more efficient, better run and more profitable- in the words of the economic blueprint to make "state capital stronger, better and bigger."   ...

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Valery Giscard d'Estaing known in France as V.G.E. died at the age of 94 from covid complications. He was president of France from 1974 to 1981 and ran for election after De Gaulle and De Gaulle's assistant Pompidou withdrew from politics. He presented himself as the modernizing face of Gaullism and supported most of De Gaulle's initiatives in improving Franco-German relations. He was finance minister and a Gaullist under both De Gaulle and Pompidou for 12 years. He lowered the voting age to 18 and advanced women's rights. One of his major contributions was the EMS or European Monetary System that set the stage for the Euro currency. He strengthened relations between France and Germany. After losing the 1981 election to Francois Mitterand on the left he continued to serve in the European Parliament and drafted a European Constitution that became part of the Treaty of Lisbon. To this day France is governed by a strong presidency after the lessons learned from the failure of political parties to agree and get things done both in the prewar period and the period 1946-1958. De Gaulle pushed through the reforms that made "the state" above the parochial and selfish interests of parties and politicians and embodied this in a directly elected president. From 1958 to 1981 France was governed with this principle in mind, and later presidents from Mr. Sarkozy to Mr. Macron also adopted this idea of "the state" with their movements but with lesser success than Mr. De Gaulle, Pompidou and V.G.E. who as Mr. Macron says "set the directions for France that still guide our steps." ...

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With Britain preoccupied with Brexit, and the U.S. in a trade dispute with China, Chancellor Merkel remains the only western leader to visit and hold extensive talks with Chinese leaders Li Keqiang and Xi Jinping. She also visits other Chinese cities such as Wuhan and gives a speech at Huazhong University of Science and Technology in Wuhan, in which she commented on the social credit system being implemented in China about the social creditworthiness of individuals and businesses.  Merkel sitting next to premier Li Keqiang in Beijing advocated "that conflicts be resolved without violence and that anything else would be a catastrophe." She called for a peaceful resolution of the situation in Hong Kong and for Hong Kong's rights to be "guaranteed." This is significant because the close cooperation between Germany and China is critical for China today to tackle the economic problems created by the trade disputes with the U.S.  Merkel has a close relationship with Chinese leaders and has visited China many times, giving her the confidence to talk to Chinese leaders without arousing any sensitivities about internal affairs of China. She is the only leader who can speak her mind to Chinese leaders, without offending them. When she used the word "catastrophe" she chose it carefully. It took decades for China to build the trust and relationships with Europe and the U.S. that it has.  Trading relationships matter for both China and western nations and are built on trust and good relations. With the Shenzen region growing faster than Hong Kong, and thinking like Beijing, China could tackle the situation in Hong Kong over a long period. ...

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Efforts to develop the next generation Ukrainian aircraft industry from its current moribund state by discarding the old Soviet model. Attracting new foreign investment alongside state investment, modern management, preserving intellectual property rights, and looking for contracts across Europe, is critical for future development. Ukraine has a history of technology development and design in the aircraft industry, which makes this industry a good candidate for export revenues. The first mass produced helicopter was made in the U.S. and used a Sikorsky design in 1936. Igor Sikorsky is from Kiev, Ukraine, and immigrated to the U.S. in 1919, as Soviets took control of Russia. His son was a vice president of United Technologies Sikorsky helicopter division. (Wikipedia). MacFarquhar describes this industry in its new form at its early beginnings- a decade from now the industry under good management could provide large export revenues. Many of the old Soviet auto plants also developed in this direction with investments and technology from companies such as Renault, GM and others, helping revive the industry. There are no spheres of influence in modern industry- Ukraine, Russia, Europe, and the U.S., all benefit from openness to new technology and investment, which improve the economy and living standards. ...

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This report in the Economist says that the days of double digit increases in the car market are a thing of the past. Future increases will be in the mid to high single digits, according to McKinsey consulting firm. China's economy is slowing and official estimates of GDP growth of 7% are described by experts as overstated, with real estimate of growth for the 1st quarter of 2015 by Citi, Conference Board and Capital Economics all below 5%, as reported in the WSJ. A sign of the change in the market is the need for higher use of incentives. The growth in the used car market offers buyers other alternatives. The new plants being added will increase production by 5.3 million light vehicles a year and come online in 2015 and 2016, this is in addition to the 22.8 million in sales in 2014. Average Chinese auto plants operate at 70% of capacity and the added volume will lower capacity utilization further. China's local automobile companies, with the exception of companies in joint ventures with foreign companies, have failed to gain customer loyalty. Many of these companies may be absorbed by foreign car makers or shut down as the industry consolidates. Foreign companies will find doing business less attractive as sales decline. ...

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Areas in which David Cameron shares the same thinking as Barrack Obama are generating green technology jobs, the importance of the voluntary sector and families all doing their bit so that its not just government that will be doing things. "That society should bring about change, not just government." He diagrees with Obama on the Stimulus and believes that the situation in Britain with the government borrowing 10% of national output already makes it difficult to have an extra discretionary stimulus without people losing confidence in then nation's finances. He makes some other points. Britain needs amore balanced economy so that it is not so reliant on financial services. And in Europe as awhole he says its important to deal with the huge dependence on welfare which is a drag on the economies of Europe. This has to be seen in the light of the huge emphasis placed by recent Labor governments on rebuilding the health and human serivces and infrastructure of Britain. In this crisis the social safety net provided by these services may be the reason that asmaller stimulus is needed in Europe. He talks of capitalism with a conscience, where markets are amean not an end to themselves and morality, ethics and asense of values are brough to bear at every turn. ...