LyrArc Article Gist
Car sales in Germany are up 40% from ayear ago. This is not about to happen in the USA. The cash for clunkers program in Germany is broad and less complicated.In Germany eligible cars have to 9 years old and the subsidy covered the purchase of any new car, regardless of size and fuel efficiency. In the US the program just signed by President Obama covers a narrow profile of customers. In the US customers who benefitare economically challenged and in the midst of adeep recession. Cars can't be over 25 years old, and can't have a combined highway and city fuel economy rating of more than 18 miles per gallon as calculated by EPA. To get the full $4500 credit customers must buy either a new truck or sport utility rated 5mpg higher than the clunker or scrapped vehicle, or a passenger car rated at least 10 mpg higher.And the credit is given instead of the trade in value, so if the trade in value is higher it doesn't help. The German government is giving away upto $4500 but it started out with 1.5 billion euros to get 600,000 clunkers off the road, but because of the popularity of the program has expanded it to 5 billion euros for 2 million cars and extended it to end of 2009. The US program only has $1 billion for 250,000 cars or one eight of what the Germans are doing for amuch larger car market. Because of the dire shape Detroit and much of the midwest is in, because of the slump in the auto industry, this may be a mistake and a missed opportunity to do what the Europeans are doing, and get an even bigger impact. The American car market and industry is taking a severe blow from the deep recession. Because of the depressed region the impact of a real clunkers for cash program that targets a broader profile, with bigger financing and designed to give a boost to the market, could make a real difference. At this point it is more of a program designed to help people turn in their gas guzzling trucks for passenger cars, and those driving a $200 car are not likely to be the kind of customer who goes out and buys a new car say dealers. See the link to Alan Blinder's stimulus proposal in July 29, 2008, that suggested a $20 billion program even before the current crisis. The present program has only $1 billion....

LyrArc Article Gist
Barbara Wesel of DW.com says 2017 will be a difficult year for the European Union. Elections will be held in the Netherlands, France, Germany, and possibly in Italy. The Netherlands election is coming up this month and the far right party led by Wilders is likely to gain as much as 25% of the vote but have to negotiate with other parties in a fractured parliament to form a government. Elections in France show Marie Le Pen winning the first round, with an uncertain result in the second round between Le Pen and Macron. A win by Le Pen could lead to the unwinding of the EU. In Germany another coalition government is expected with the SPD playing a larger role as it regains favor with the voters under the EU's Martin Schulz. Wesel says Germany and Merkel are looking like a beacon of stability and hope as the world looks for leadership with America looking inward to fix problems at home.

 

LyrArc Article Gist
Views of East Germans in the city of Erfurt on the eve of the 20th anniversary of Germany's reunification. Disparities remain after over a trillion dollars were invested to improve conditions in East Germany, yet the positive changes are visible. In this city of Erfurt the burning of lowgrade coal for heating homes made the air less breathable. It could take years just to buy a car. Still Germans in the east are disappointed, as their expectations were high during reunification. Wages in the east are 80% of wages in the west and unemployment is 12%, and the average wealth of east Germans is 40% lower than west Germans. Young people have immigrated to the west, leaving older people and retirees. Because of this the term reunification is less used than the term "die Wende"- meaning the turn or the change. A sense of the loss of the old values forged in a socialist state is still felt deeply by some east Germans and the change has been largely positive but wrenching in terms of a loss of identity, a sense of being treated as immigrants in their own country....

LyrArc Article Gist
The question remains why the defamation law has remained a part of the Indian Constitutional law and the Indian  Supreme Court has upheld it. Under Britain there must be the sense that this would have put the unified subcontinental government at risk. Under India post independence this could be seen as an effort to keep the unified country India that emerged from the British Indian rule together as one nation. It may not be individual to individual defamation that underlies the spirit of this law. Its spirit may lie in keeping together as one nation a country with many languages and people after centuries of foreign rule by not letting the spirit that keeps it together be undermined in any way or form. Gandhi and the independence movement before Gandhi created the spirit for a new nation from many peoples and languages, this has now taken the form of timely delivery of the services and infrastructure that these peoples are entitled without any dilution of any sort, after all the hard work, sacrifices and aspirational effort of an earlier generation of leaders. ...

LyrArc Article Gist
Wisdom shared by students on picking a place to study. Ten people look back to reflect on how their college was chosen, their experience at that college, the cost of tuition. Some changed to other schools where they fit in better, others struggled with large tuition bills when the same education could be obtained at state universities with lower tuition fees. You are never stuck says one of them as you can change schools if it is not the right one. Others point out the risk of relying on "the best school", the most "rigorous program," and one engineering student points out that one can get a good engineering education at many less costly or famous schools. The general feeling is find what will be good for you without being overawed by big names, consider cost carefully, one can get a good education at most universities and colleges just find the place where you feel valued as a person and which fits in with your sentiments and mental makeup. The rest is effort studying and concentration which is entirely upto you.  ...

LyrArc Article Gist
M.r Modi recalls the blessings of Mr. Mulayam Singh Yadav given to him with his advice in 2014 when he became prime minister and met Opposition leaders in India. Mulayam Singh was mentored by Ram Manohar Lohia, a socialist educated at Humboldt University in Germany in the 1930's and an early activist in India's Independence struggle under Mohandas Gandhi. PM Modi who has translated many of the ideals of Mr. Lohia into practice with development work for water, sanitation, electricity, gas stoves, housing, for tens of millions, says Mr. Mulayam Singh's advice has stayed with him even today. Without the stability given by leaders such as Lohia and Mulayam Singh India could not have navigated carefully the difficult period of the first 50 years after independence in 1947. For democracy to prevail leadership of this kind is essential. America turned from time to time to leaders such as Lincoln, FDR during its history, India is in a formative period for its democracy as it goes through modernization for a country with 1.2 billion people and many languages.  ...

LyrArc Article Gist
This report in the NYT says a little known donation raising method used by the Republican National Senatorial Committee may affect Republican chances of taking control of the Senate in the US. The method is considered part of hyper aggressive methods that ask people provocative questions such as "Should Biden resign?" in millions of text messages sent out and asked to reply click YES to Donate, the amount is then processed immediately, says NYT. It was so controversial that WinRed the main Republican donation processing platform banned the practice. It appeared to be working earlier but with the cost of living crisis in 2022 donors are holding back. NYT says the digital ads to get these donations cost more than the donations in some situations. It cost $23.3 million for digital ads and expenses and raised only $6.1 million leading to a $17 million deficit, according to NYT. Senate Minority Leader Mitch McConnell now thinks it could affect chances for the Senate. The NSRC Republican group has $23 million about half what the Democrats have. ...

LyrArc Article Gist
Turkey's inflation rate continues to rise even after a government effort in December to stabilize the economy by stabilizing the lira. Annual inflation jumped from 21% in November to 36% in December, according to the Turkey Statistical Institute. The true inflation rate could be much higher. The ENAGrup estimate after assessing thousands of prices is that true annual inflation is 82%. Ordinary Turks have difficulty affording essential food supplies, says this WSJ report. Turkey has overdependence on the US dollar in its government and bank borrowings which has intensified the impact of the cost increases world wide with the supply chain problems and higher energy prices. Food imports now are much costlier. Depreciation of the lira currency by about 50% added to the impact of the overall global inflation. The lira has come back a bit to 40% loss of value after an unorthodox government plan, yet inflation continues to rise. Deeper problems within the economy that were hidden when the economy was in high growth years are now apparent as the world sees an inflationary surge during the second year of the pandemic. ...

LyrArc Article Gist
President Biden's scorecard for the first year- 3.9% unemployment down from 6.4% in January 2021. Created 6.1 million jobs the most since 1939. $ 1 trillion infrastructure building plan approved in Congress with support from Republicans, the money going quickly and directly to specific much needed rebuilding projects all over the USA for the first time.  73% of the population of American adults fully vaccinated with two shots. And $1.9 trillion relief to Americans to restore their finances. Suspended student loan payments during the pandemic. Action on climate change, children's education, help to women, held up in Congress by two Democratic senators joining the Republicans opposed to Biden. It could be said that more was accomplished in 1 year than at any time since the presidency of Franklin Delano Roosevelt in the thirties and forties. And this comes in the middle of the pandemic of coronavirus with 853,000 Americans dead from the virus. Biden puts is faith not in the polls but in getting things done.   ...

LyrArc Article Gist
In a new trend that looks good for America is seen at companies such as American Fleet, which makes diesel engines for trucks. During the pandemic it was making 40 engines when it could make 30 normally, by adding overtime. It looked for mechanics. Now as demand is slowing workers work fewer hours. And the company which has a hard time finding mechanics is avoiding layoffs. It wants to avoid the expense and trauma of hiring and retaining workers. With fewer engines to build workers are prepping engine blocks and upgrading equipment so that when demand picks up again they will be ready. Workers are being hired to fill unfilled positions allowing overworked employees to return to normal hours.This is a national trend reflected in declining overtime hours and working hours are shifting also with workers opting to work less because of work-life priorities. This should be seen as part of the renewal of America, because when workers do well, the middle class does well, and when the middle class does well America does well. America does well when companies and workers mean the same thing. ...

LyrArc Article Gist
There was a time when tech meant scientific advance for mankind and something positive for ordinary Americans. Today "Tech" can mean something different from what it used to mean, including something that is unwanted, even pernicious, something to increase profit margins even to exorbitant levels that hurt ordinary Americans and the public, and not a scientific advance in the real sense of the word. Nothing that inspires hope and better future for mankind. RealPage software that induces increase in housing rent prices is one aspect of the current housing cost of living crisis that Harris is focused on. Binyamin Applebaum of the NYT looks at the RealPage software sold to housing companies that would increase prices and be an added burden to households already under pressure from rising grocery prices and housing rent increases during the pandemic. This is a key issue for voters in 2024 and a comprehensive approach has to be taken on many fronts to address costs- including attack on price gouging, $50,000 for first time home buyers, and incentives for home building that Harris has proposed, and other actions.   ...

LyrArc Article Gist
Here is someone in the UK who got is degree a BSc. in economics and is now working in finance in London. He borrowed 44 thousand pounds. He paid back 7000 pounds. How much does he owe? 54,000 pounds that's because at interest of 7.3% instead of 8% he still cannot keep up with interest costs. This is the problem not that young people don't want to pay back their loans. The setup is faulty. The problem is Plan 2 Loans in England And Wales which charge an additional 3 percent over and above the Retail Prices Index which was 4.3% in March. All Plan 1 Loans charge only the RPI 4.3%. At 4.3% this borrower would at least have paid back some of the principal so he knows he is making progress with the student loan.  The Labour government has said -"government could reduce the monthly repayments for every single new graduate without adding a penny to government borrowing or general taxation". But nothing new is expected this year's Budget.  ...

LyrArc Article Gist
One Big Beautiful Act passed in US Senate with Vance casting tie breaking vote. It renews the tax cuts from DJT's first term in office in 2017 and provides tax cuts to seniors, middle class, and small business. It provides 100% expensing for business to increase investment. Mothers get child care credit that is doubled, senior citizens over 65 years get a $6000 deduction. The seniors deduction means 88% of seniors will now pay no taxes on social security benefits from 64%. Medicaid changes so that able bodied Americans will have to put in 80 hours of work to qualify.  Note that the Medicaid program was becoming unworkable and unsustainable- starting with the idea of helping people unable to work and transitioning those who could work, it jumped to $228 billion cost in 2000 from $28 billion in 1980, ten times over 20 years. Going up to $918 billion in 2024, 4 times the 2000 level. Medicaid is now 62% of what Social Security costs, $918 billion compared to $1480 billion for Social Security. ...

LyrArc Article Gist
In the current situation where the "too big to fail" problem for banks has only worsened since the crisis with the remaining banks even larger after mergers, and no dividing wall between speculative trading in securities and the utility banking of collecting deposits and making loans, the country depends on regulators to do the job of supervision. Regulatory reforms have faced resistance from the banking industry and the reforms have been watered down in Congress. It is in this environment that Patrick Parkinson takes on the job of head of bank supervision at the Federal Reserve. He will work with Daniel Tarullo, the Fed governor who heads the committee of governors overseeing bank supervision. But he is also one of the old faces at the Fed when the Fed failed in its role of bank supervision. From 1993 to 1998 he was the top staff advisor to the Fed chairman, for matters considered by the President's Working Group on Financial Markets.

LyrArc Article Gist
Prime minister Renzi of Italy resigns after defeat in a referendum to change the constitution. Renzi had said he would resign if there was a "no" vote on constitutional changes to make it possible to pass further reforms. The results show the "yes" vote with about 41% of the vote, and 59% saying "no." About 65% of 47 million registered voters voted. The referendum called for cutting the size of the upper house Senate eliminating some constitutional bodies, and increasing powers at the federal level. Renzi may have made the mistake of making the vote for or against constitutional change a vote for his democratic left party, and not understanding the depth of public skepticism of established parties. Parties such as 5 Star M5S  have appealed to a public skeptical of how economic reforms would help bring more prosperity to the middle class, and a desire to try out new options. Virginia Raggi of M5S was elected mayor of Rome recently and Renzi's referendum move similar to the way prime minister Cameron moved for a referendum on an old issue of euroskeptisim, may have failed to grasp grassroots changes. The irony is that in 2014 elections to the European parliament Renzi's democratic left party won 40% of the vote and was seen at the time as a success, and the same size vote in the referendum is seen as a failure. In a referendum all other parties votes are added together from right to left parties and new parties. In the Brexit vote the Labor party "no" vote including Labor voters who never voted added to the votes of Brexit supporters and the newer UKIP party giving Brexit the slight edge needed. The singular feature of the trend is that working class voters are combining with right leaning voters to upset established parties, in the midwestern U.S., in the north of England, and in the north of France. In the medium to long run this means the left parties are likely to move to realign themselves with their base of support. ...

LyrArc Article Gist
Class and the divide between rich and poor, educated and uneducated, urban and rural, in China. Even with rapid industrialization in the urban mostly coastal regions, a large number of China's people live in rural areas and in the hinterland away from the big cities. October 1, is the 60th anniversary of communist rule. With the internet and more communication of all types, incidents in which the rich and powerful are treated differently by the judicial system- and can get away with light sentences for wrongdoing or crimes- cause a great deal of anger among the people. In this traffic accident in Hangzhou, one of the rich people's kids- the young emperors is how they are referred to in Chinese- runs over and kills on the pavement a 25 year old telecom engineer from a rural area near Changsha. He had to work hard to get to college and become a engineer, and his parents struggled to pay his tution in college. The 20 year old racing car driver gets away with a light sentence of 3 years, and is suspected to have used a stand-in for the trial, who would also serve the sentence. The public in Hangzhou was upset about this and blogs all over China began to talk about this. The police initially covered up the incident, saying the speed was 43 mph. Only after public pressure did the police say it was double that, and that the Mitsubishi racer used by the rich kid was retrofitted for speed....

LyrArc Article Gist
The issue of high youth unemployment. The bulge in demographics and the emphasis on increasing the number of college graduates without increasing the jobs available, or providing apprenticeship type training and degrees in areas where jobs can be created, has created a major problem in the Middle East. High youth unemployment in the US, Spain and the UK also poses serious problems. Former primer Minister Giuliano Amato of Italy recently told Corriere della Serra: "The older generations have eaten the future of the younger ones." Older workers tend to hold onto their jobs as long as possible as retirement ages are being raised, and they have negotiated higher retirement pensions. In Spain the younger part time workers and immigrant workers are the first to be laid off and unemployment is highest in this group, which is also why the high unemployment has not attracted as much attention there. Younger workers will eventually have to support a higher proportion of these workers in retirement because of the demographics. The shift to higher parttime employment and employment at low wages has also created a class of workers who have no future, as their incomes are low, and are easily laid off. This shift has been taking place in the US, Europe and Japan over the last decade. Germany has fared better because of its long tradition of apprenticeship training, and employers working directly with young students at universities to provide on the job training. The financial crisis of 2008 in the US slowed down many industries and created a shift in industries creating jobs, the result was a larger mismatch of skills of job seekers and new jobs created. One way to address this is more on the job training and working directly with employers, and assistance to community colleges to fill education gaps. ...

LyrArc Article Gist
Over $700 million in aid was provided in 2013 to struggling Chinese automakers from the central and local governments in an overcrowded industry, according to Wind Information Company. Companies receiving aid include Dongfeng Motor, BYD, Geely, Great Wall Motor, Guangzhou Automobile. Both domestic and foreign makers of cars are increasing capacity in an oversupplied market as sales decelerate. Domestic brands market share is declining compared to foreign car makers. Domestic makers market share declined to 37.1% in April 2014 from 39.6% in 2013, according to the China Association of Automobile Manufacturers. Ford Motor has added large SUV capacity to increase sales, and VW plans to increase capacity further. By 2015, overcapacity in China's market could reach 8 million cars, according to UBS Securities.

LyrArc Article Gist
Douglas Feith was Under Secretary of Defense for policymaking between 2001 and 2005. He cochaired the U.S.-India Defense Policy Group (DPG) with Jaswant Singh opened his first DPG meeting in December 2001. He talks about the need to bolster the one area in which the Bush administration fell way short which is to combat terrorism with ideas and communicating anew bold vision and view of the world that using key channels of expresssing ideas in the developing world and having measures to track progress year after year. He also talks about the need to partner with India and the importance of democratic ideals and ideas and a country like India which has established a long track record of peaceful democratic government.

LyrArc Article Gist
Philip Alston, UN expert on extreme poverty and professor at New York University School of Law, says most of the progress on poverty that the UN agencies  and elites talk about is based on one country China. In the rest of the world, in Latin America, in Africa, and in other countries in Asia the situation is not any better than it was in 1990. About half of the world's population 3.4 billion people live on less than $5.50 a day, and this is not much changed since 1990. The improvements in China could also mean that the situation has worsened in other parts of the world. The pandemic has taken the lid off the situation in Latin America with Mexico, Brazil, Colombia and other places there showing extreme weakness.  Alston studied this as UN's representative for looking at extreme poverty 2014-2020. He is clear in describing what happened. The World Bank he says set $1.90 a day for poverty line, artificially low and what will not pay for housing or food even. He calls it "scandalously unambitious as a benchmark" what would pay for "a mere miserable subsistence." By using this he says a devastating effect is being allowed to happen as more of the investment is drawn into a pro-growth narrative which pushes allocation of capital in the direction where it profits short term speculative capital and profits rather than the long term investments in health, education and public services that are vital for any country. The improvements in China have also come at the expense of communities in Europe and the U.S. as industries were being shifted with their jobs overseas since 1990, first imperceptibly and then in waves after 2000, which leaves millions exposed to poverty and social decay for the first time in history in the advanced countries. It is an unhealthy and destabilizing situation. Alston's other points are that the so called progress narrative has been used to drown out the appalling effects of policies that misallocate capital away from the vast numbers of people. And in doing this he says it has entirely upended or turned upside down the social contract with the people. From Carl Sandburg's "The People Yes" in the 1950's after the tragedies of war we have come to "The People No." Nothing could be more reprehensible than capital being allocated for dog walking apps and other speculative investments by investment funds pooling hundreds of billions of dollars when basic sanitation services, health care investments are neglected in countries like Brazil, and smaller towns and communities are being systematically uprooted for jobs and social services over three decades in advanced countries in parts of Europe and the U.S.   ...

LyrArc Article Gist
A clean break from commissions of every sort is needed in India, without that Mohandas Gandhi's work and legacy is lost, the opportunity of modernization of India and the economy on a scale surpassing China using the latest technology and huge investments in infrastructure is lost.  Lyrarc has a pledge in India -The Way Forward for every young person in India to take. The future of infrastructure building, ease of living, modernization of a nation of 1.4 billion depends entirely on this. Every penny, every cent, every rupee goes into infrastructure building to create a modernized nation and economy similar to the US and Europe. The situation with "40% commission" in Karnataka and its impact on the recent outcome in the southern Indian state of Karnataka is shown in the Indian Express. Indian Express analysis shows that the ruling party did well in coastal Karnataka and poorly across the rest of the state in comparison to 2019. It happened even in Gujarat but was corrected in time by Mr. Modi.  This analysis in Indian Express says the reason the vote share of 36% led to 104 seats in 2019 and only 66 seats in 2023 is that a lot of the votes were concentrated not all over Karnataka as in 2019 but only in Old Mysore and in Bengaluru, and also in south Karnataka where it cut into JDS party votes without winning seats. Divine providence offers an opportunity for everyone to reject commissions 100%. Gandhi's Hind Swaraj 1910 needs that kind of committment today to surpass that made in 1931 during the Salt March against British rule, to build a modern nation and modern economy by 2035 comparable to the best in the US and Europe. ...

LyrArc Article Gist
The riots in Dublin, Ireland, covered in depth in The Times, started with a stranger approaching an Irish language primary school in Parnell Square East, and attacking children there with a knife. A deliveroo driver on a motorcycle moves to the scene and using his helmet hits the attacker felling him to the ground where he is disarmed. Minutes later the scene is replayed over social media channels TwitterX, Whats App, and far right figure puts it in a Twitter account that a "foreign man entered the school and stabbed five people," setting off marauding youth to riot on the streets A tram and several police cars, shops in the centre of Dublin, a hostel for asylum seekers, are damaged or set on fire.  In September 2023 200 people protested high immigration outside the Irish parliament. As in Amsterdam-Rotterdam-Utrecht area  housing in Dublin is unaffordable to the locals. Immigration has surged particularly from Ukraine all over Europe in 2022. It is an issue in UK, Netherlands and Ireland. With the cost of living crisis, the aftermath of the pandemic with people suspicious of the state, overcrowding in socially deprived inner city areas Parnell Square being one of them,  and record homelessness; immigration has become a scapegoat. The suspect in this situation was a naturalized Irish citizen who has lived in Ireland for 20 years and is of French-Algerian origin. The Deliveroo driver who came to the rescue is a 43 year old Brazilian Caio Benicio. It took three hours after nightfall 6.00 pm for police to restore order. ...

LyrArc Article Gist
The failure of regulators is one of the features of the last decade leading to the losses of capital that could have been better allocated to infrastructure, health education and paying down debt in the U.S. and Europe. This WSJ report says fintech or financial technology companies faced little regulation or critical oversight from regulators as regulators tried to foster growth in that sector. This puts more burden on shareholders to be vigilant, it says. Wirecard went into insolvency with huge losses and debt and accounts in the Philippines for over a billion dollars that were later proved not to exist. The astonishing aspect of the Wirecard scandal is the way German regulators not only did not investigate but pushed back against critics of the company's finances, that there was something fishy about the finances. Wirecard was established in 1999, and is described as a slow-burning story since 2016 when the stock price took off for a wild ride. This report says government regulators are relaxing important rules in the hope of coming up with a winner- this is proving to be a dangerous exercize and an exercize in folly, as it leads to losses of capital with no one taking responsibility among government officials or regulators. In the case of Wirecard the German officials even filed a criminal complaint against accusers, and banned short selling. of stock.    British and European financial watchdogs are acting as cheerleaders and watchdogs at the same time says the WSJ. Watch out it says when regulators play this kind of double role. During the financial crisis of 2008 the revolving door between companies being regulated and the regulatory agencies themselves was a defining feature of that period leading to huge losses of capital. Today this has taken on a new  and additional dimension, each time making things worse, even as infrastructure investments, investments in health and education are being deprived of capital because they benefit the public, and are not a benefit to small groups of well connected people willing to flagrantly conduct activities such as setting up accounts that do not exist for over a billion dollars.   ...

LyrArc Article Gist
Lamar Alexander, Republican Senator from Tennessee, and one of the longest serving Senators, votes against calling for witnesses in the Senate trial of U.S. president Trump. The vote against is 51 to 49, with 2 Republican senators, Collins of Maine and Romney of Utah voting for calling witnesses. Within hours of Mr. Alexander expressing his intention to vote against Republican Lisa Murkowski of Alaska decided she would vote against.  This vote was crucial in concluding the impeachment trial because of Mr. Alexander's reputation for fairness and his service as governor, university president, secretary of education, during a time when traditions of bipartisanship were honored. Mr Alexander stated his reason for his vote even though he believed Mr. Trump acted inappropriately. Was an improper decision on Ukraine by Mr. Trump at the level of treason or high crimes and misdemeanors? Mr. Alexander said it was not. Mr. Alexander shared his view saying what was on the mind of most Republican Senators including Sasse and Graham but expressed clearly- "For the Senate to tear up the ballots in this election and say Mr. Trump could'nt be on it, the country probably wouldn't accept it. It would just pour gasoline on cultural fires burning out there."   ...