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The failure of Nintendo's new handheld 3DS video game device to win market acceptance. Sales dropped to 710,000 in the last 3 months from 3.6 million the prior quarter. Nintendo has now made a big price cut from $250 to $170. The entire videogame industy is going through a transformation where a closed platform like Nintendo's is facing obsolescence. Today any device with a screen and an internet connection can work for videogaming. Companies such as Zynga have Facebook games such as "Farmville" and "Cityville." Mobile and social games are $1 or $5 and often free when they have advertising within the games. They can be readily acccessed instantly by downloading, Contrast that with Nintendo games for 3DS which can sell for $30 to $40. Nintendo has sold over 87 million Wiis and 147 million DS devices. But the sales are dropping precipitiously. Wii sales dropped to 1.56 million in the most recent quarter compared to 3.04 million in the prior year, and DS sales fell to 1.44 million from 3.15 million, according to Nintendo. As a whole game sales in retail stores including hardware and software are declining down to $995 million in June 2011 from $1.111 billion for the same month prior year, according to NPD Group. Microsoft continues to see an increase in its Xbox gaming business- with a 30% increase in sales to $1.49 billion for the last quarter for the division with the Xbox business. One reason is that this is a group of hard core gaming customers who prefer shooting and sports games including the use of a camera device called Kinect where body movements are used by players. In that manner this business is insulated from the overall trend where game developers are shifting to new technologies and developemnts such as Facebook and iPhone. Electronic Arts is focussing on the fast growth for popular games on the iPad....

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Saudis are now prepared to increase oil production after weeks of US diplomacy in exchange for security guarantees against attacks by Yemeni rebels and Iran. Russian oil output has declined by about 1 million barrels a day since the start of the war says WSJ. Drops in production lead to a rise in oil prices more than making up for the decline in revenues for Russia. This makes oil sanctions a weak deterrent for Russia in its invasion of Ukraine unless Saudis and UAE step in with increased oil production to make the EU embargo on Russian oil work effectively to cut Russian oil revenues financing the Ukraine invasion. Europe has stepped up with its embargo on about 90% of Russian oil- all except pipeline supplies to Hungary and Czech Republic, Slovakia as an exception. This will reduce oil production in Russia as EU is the biggest importer of Russian oil, bigger after previous German chancellor Merkel's failure to see the risks in such dependence and increased imports. For the oil embargo to lead to sharp reduction in Russian oil revenues that reduces financing of the Ukraine invasion, and for the EU oil embargo to bring results the missing piece is Saudi action to increase production. This may now be in place as Mr. Biden visits Riyadh next month. Crown Prince Salman of Saudi Arabia has pushed Saudi Arabia to make changes to modernize the country's culture providing the US with a partner that is now different than the Saudi Arabia steeped in tradition and inward looking under previous rulers. Under president Obama Democrats favored Iran and reduced security guarantees that were set up since president Franklin Delano Roosevelt met the Saudi King in 1944 aboard an American ship during the war. The turn of events with Russian invasion of Ukraine with Chinese support have created risks of a China invasion of Taiwan with aggressive action of China. President Biden has made this clear and stated straightforwardly the American position on Ukraine- Russia winning by invading a neighboring country sets the precedent for a Chinese invasion of Taiwan. This is why the US remains resolute with its European partners in seeing to it that Ukraine remains as Biden said in the NYT  "independent, sovereign and able to deter invasion and defend itself." For Europe it is about defending its neighborhood from the Baltic Sea to Bulgaria in the Balkans with American support. For the US it is about keeping its leadership presence in Asia in an alliance with Japan, India, Australia and most of South East Asia including Indonesia, Bangladesh with a population of close to 3 billion people. China which was supported by the US throughout the period of colonial dominance since the 18th century preventing its breakup and foreign rule as happened in India, and a major recipient of American aid and investment in the 20th century is now where Japan stood in the two decade period 1925 -1945 with its aggressive expansion under Japanese imperialist rule. In this sense the world is moving back to the days of the Free World's struggle in the days after the Iron Curtain fell over Europe with Soviet expansion in Eastern Europe. Saudis, UAE, and Turkey as part of NATO, are also moving back to the positions they had over a long period for centuries from 1800. Saudi Arabia and UAE came into prominence after discovery of oil and were backwaters to Egypt and Turkey which were supported by Britain to keep Russia from advancing in Asia and Europe during that period. India under the British Empire is now in the Indo-Pacific Framework with Japan which was inward looking and under European influence for most of the last 200 years.  ...

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Department of Education invites controversy because of diversity programs and "transgender" as culture ignoring health risks. Established by president Jimmy Carter in 1979. Education in the US is run at the state level by each American state administration compared to UK where it is done at the national government level. It has one of the smallest budgets of any agency at 4%, Transportation is 1.7%, Agriculture 3.0%. Most of its work is overseeing $120 billion of federal grants and programs for public education through high school. It supports districts with low income students with $18 billion aid. Head Start program supporting 883,000 low income pre school children in 2022 gets federal aid from Department of Health and Human Services. National School Lunch Act of 1946 by Harry Truman is not affected as it is run by states,  federal aid comes from Department of Agriculture to 20+ million children. Republicans oppose spending about $1 billion to support Diversity program DEI initiatives and support for "cirtical race theory." There is opposition to "transgender." Britain's NHS had a commission look into transgender and says it poses health risks to children and young people. It also adds to anxiety of parents. Republicans are 53 -47 in majority in Senate- to scrap the agency Republicans need 60 votes in the Senate. The likely option is that they will pass a bill putting many of the functions in other agencies reducing its impact- between HHS, Treasury and Interior agencies. ...

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How small communities such as this one on the Tennessee river are advancing during the period of remote work and migration to smaller towns and cities in the US. The benefit is more space and a better quality of living. Chattanooga moved early on to build a super fast internet network.

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A way of gauging the extent of a bubble in the internet IPO's in 2013, says Hulbert, is the first day return on IPO's in the U.S. of 25% in mid-Aug to mid-Nov 2013 compared to 96% in the first quarter of 2000. He cites a study by finance professors Jerry Wurgler of New York University's Stern School of Business and Malcolm Baker of Harvard Business School, which stresses the need to use objective indicators in assessing the current equity markets and not relying on memories alone. Investor caution after two bubbles since 2000, active regulatory oversight of markets, and legal frameworks updated for changes in financial markets have provided additional safety and stability to markets. The study authors cite evidence for the changes in the way investor sentiment values speculative stocks compared to established stocks. The price/book ratio per share or net worth of established stocks is way higher compared to speculative stocks in 2013 compared to 2000. In 2013 established companies in the S&P 1500 index, according to FactSet, had a 49% higher price/book ratio on average than speculative stocks. Wurgler and Baker used dividend paying stocks as "established" stocks compared to non dividend paying stocks as "speculative." Another piece of evidence that companies are also adjusting to sentiment this time is that less money is coming from stock issuance in 2013 of 11% compared to 20% in 2000. Visible evidence of company behaviour is also telling- banks are changing bahaviour after tougher regulatory oversight and settlements in 2013. GE is planning to shrink GE Capital and put it on sale. Investors have sharply cut back allocations to stocks and are returning to modestly higher allocations from much lower levels and memories of 2000 and 2008 are still present....

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Gurcharan Das on the appalling governance in India and the slowing economic growth.

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With a unanimous vote of the company's board on Nov. 28, 2011, American Airlines filed for bankruptcy. Gerard Arpey, CEO since 2003, is known to have resisted the move. Arpey decided to retire and will be replaced as CEO and chairman by Thomas Horton, the president of American Airlines. Analysts and management say the move is a proactive effort to take action before AMR's financial posiiton deteriorates further. AMR has about $4.1 billion in cash and short term investments. One airline analyst described it as an offensive bankruptcy to reduce labor costs and leasing costs in a proactive manner. American Airlines management has said in the past that its costs are $800 million higher than other airlines, because its pilots fly shorter hours and have more liberal work rules. Cost per available seat mile, an industry metric including labor and operating costs, is about 10% higher for American compared to Delta Airlines. American is also hit by higher fuel costs especially because about a third of its fleet uses older McDonnell Douglas MD-80's, and its regional carrier American Eagle flies 50 seat jets that are less efficient. American has total losses of $11.4 billion for the period 2001-2010. Additional loss was incurred for $982 million in the three quarters of 2011. Efforts to increase fuel effiicency of its fleet which is on average 15 years old, are underway. A $38 billion order for 460 new single aisle planes from Airbus and Boeing, with $13 billion in financing from the aircraft companies, was placed in July 2011. AMR says it will keep the order as planned. The end result is likely to be a smaller airline with fewer employees, fewer planes, fewer routes, and cuts at AMR's smaller hubs in Los Angeles and Chicago, says one aviation specialist....

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Simpson and Bowles travel around the U.S. to sell their plan for U.S. debt reduction. Bowles is the numbers guy and Simpson adds color and conviction to the conversation. The duo is famously bipartisan. Bowles a chief of staff to a Democratic party president, former U.S. president Clinton. Alan Simpson, is a former senior Republican senator from Wyoming. Both are highly committed to the cause and highly regarded.

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Barry Schwartz, a Psychology Professor at Swarthmore College, and author of Paradox of Choice: Why More is Less, points out that the 35 years of research shows that you get exactly what you pay for, but it turns out to be the opposite of what you want, and there are a lot of ways that incentive based compensation can go wrong. In theory choosing a parameter like share price and creating incentives to promote shareholder interests through higher share price as a measure of executive performance is reasonable, but it assumes that there is no manipulation of share price, or other external factors do not distort the measure of performance. In reality you get a situation like Merrill Lynch and other financial firms that gave out huge bonuses and executive pay even while bad decisions- that were later to sink the firms- were being incentivized. Schwartz points to research worldwide by Bruno Frey, Oberhozer-Gee, Uri Gneezy, James Heyman and Dan Ariely, that shows that incentives tend to remove the moral dimension from decisionmaking. Heyman's reaearch showed that when people offer passers by a token payment for help lifting a couch from a van, they are less likely to lend a hand when they are offered nothing. The question people ask themselves he says when money isn't part of the equation is very different he says: what are my responsibilities, what should I do that will fulfill these responsibilities to other people and to my country? In his view even though we put a lot of faith in incentives as a society to influence behaviour in a positive way, they actually do the reverse. Even if they work for some time, after a while some people who have fewer scruples learn ways to game the system and gradually distort the way it functions, leading to perverse results endangering all....

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Exxon to invest $600 million in producing liquird transportation fuels from algae- organisms in water called oilgae. Its a research effort that will take 5-10 years to bring results with large scale commercial production. The project will be conducted in partnership with Synthetic Genomics, abiotechnology companyfounded by genomics pioneer Craig Venter. Algae generated energy is apromising technology which yields 2000 gallons of fuel per acre of production each year compared with 650 gallons for palm trees, and 450 gallons for sugarcanes which Brazil uses for producing energy. Corn which has become controversial in recent years yields 250 gallons per acre with energy, and water supplies required to grow corn, and the impact on food supplies. Exxon is also showing support for the work of Dr. Venter, ascientist who is known for decoding the hman genome in the 1990's. In recent years he has done research in searching for micro-organisms that can be turned into fuel. Algal biofuel called oilgae by environmentalists is made from algae that have molecular structures that are similiar to petroleum products like gasoline, and is compatible with the existing transportation structure....

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The issues China faces as it plans the next phase of massive urbanization. Urbanization is a major priority of prime minister Li Keqiang, which was also the focus of his postgraduate work in his student days. In the early 1980's about 20% of China was urbanized, this has changed over three decades to where the figure is 47%, plus 17% for workers working in the cities but classified as rural, a total of 64%. China's plan is to fully integrate 70% of the population or 900 millon into cities by 2025. In 2013 only 35% of the population has a urban residency permit, or hukou. The permit is needed for residents to register their children in local schools or qualify for medical programs in urban locations. One of the problems is the huge cost of doing this which it is feared could lead to inflation and higher debt levels. Currently local governments bear these costs using land sales, and central government transfer payments, but without added financing and unable to issue their own bonds, the local governments strictly limit the use of local school and health services to their own residents keeping out rural newcomers. Local government taking over farmer plots, often without enough compensation is highly unpopular in China. Other problems are- providing a steady stream of earnings for new urban residents from farms, if no employment can be found. So they can sustain themselves- especially as they get past 40 years of age when factory employment is harder to find. The government planners see the larger urban population as a way to shift from a largely export based economy and slowing growth, to a consumption based economy. But critics say the risk is that for this to happen new residents from the farming villages have to find jobs, something the government will have difficulty accomplishing. A permanent underclass of unemployed and other financially strapped citydwellers living around major cities, as has happened with the progress of urbanization in Brazil and Mexico, is something the government would want to avoid. ...

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The title says it all. The Jobs bank the United Autoworkers trade union in the US setup in GM in 1984 threatened American automaker GM's very survival in 2006. It put workers who were not needed at GM in a jobs bank. It basically meant the idled workers -many of them close to retirement -would stay there till they retired doing nothing collecting full salary. As Mohandas Gandhi had done for India in Hind Swaraj in 1910, the American labor movement needs to look at itself in the mirror if labor is to find its way into a world of dignity and fairness in wages that Mr.Biden truly seeks for American workers.   It was setup when GM had 45% of the US market and 415,000 workers. By 2006 113,000 workers were not needed with GM having lost marketshare to Japanese makers and the Jobs bank was costing GM about $10 million a week, half a billion a year threatening its survival. The Labor movement and the UAW union did nothing to fight its own membership and set it on the right course in union with management, putting at risk the very foundation that labor had put in place since Wilson, FDR and Truman for  fairness in wages and working conditions. Jeremy Peters tells the story in the NYT. That it was recent as 2006 and shows how much had gone wrong with the labor movement and the failure of its leaders to do the right thing. The Jobs Bank says NYT was intended to prevent manufacturers from shifting manufacturing overseas, instead it did just that by undermining confidence in unions and the American labor movement, and in American workers. Two crippling wars initiated by Republicans Bush and continued by Democrat Obama, disinvestment in American manufacturing, companies like Apple shifting their entire manufacturing through outshoring to Taiwan and China, the 2009 crisis from deregulation of American banks, led to the loss of not one, but two decades for America. In today's news a modest $2 in minimum wage increase from $15 to $17 over 3 years is all that New York governor Kathy Hochul could get- even though Assembly Democrats were asking for more- to give American workers and families a fair wage to meet the cost of living crisis.  ...

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Easy steps to happiness are to conquer negative thinking, be easy on yourself and forgive lapses that happened in the past to focus on the present, finding real satisfaction in work, and not focussing on money as the way to happiness beyond a point that is needed for financial stability.

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Thomas Hoenig was Governor of the Kansas City Federal Reserve Bank for 20 years. Here he talks about the dangers of "too big to fail" with Gretchen Morgenson of the New York Times. He is due to retire at the age of 65 in 2011. Hoeinig has stood for conservative safe financial practices for U.S. financial institutions throughout his 20 year old career, and cautioned against extending the government safety net for banks that engage in risky financial activities including derivatives trading. And essential element of safe financial practice and part of necessary market discipline, he has pointed consistently, is the fear that taking on risky activities or acting recklessly has a price- creditors can take out their funds if they see a banks as unsafe, and the financial institution may have to be broken up or closed. He joins Alan Meltzer in his criticism of Federal Reserve policies under first Greenspan and then Bernanke that take on the job of stimulating the economy and creating jobs through a very loose monetary policy after the collapse of a bubble. Hoenig sees the role of the Fed in such situations as a neutral player. The reason say Meltzer and Hoenig is that the Fed has not given enough thought and attention to the long term consequences of its policies. What were the consequences of the low rate policies in 2003 asks Hoenig? It promoted another bubble and the mortgage meltdown of 2008. What were the consequences of QE II asks Meltzer in an op-ed piece in the Wall Street Journal on August 11, 2011, "The Folly of Economic Short-Termism?" It has failed to revive the economy or reduce unemployment. Hoenig also points to questions of fairness and equity that arise when banks are treated differently and farmers, seniors and other groups are asked to make sacrifices....

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Lee Cheuk-yan, chairman of the pro-democracy Labor Party, describes the 17 year old Wong and young people in high schools to a crowd in Hong Kong in this way- these are very young faces, the old men in Hong Kong including many in the elite who dared not to speak up for Hong Kong's cherished traditions and rights out of caution will die, but these young people will carry on. Wong started the group Scholarism as an internet based movement to fight the 2012 "patriotic classes" plan of the Communist Party and Hong Kong Chief Executive Leung Chun-ying. That movement took hold in Hong Kong and the government had to shelve the plan. This time he is fighting for universal suffrage in Hong Kong in 2017 with the right to elect its own leaders without prescreening by the Communist Party. This is in the spirit of the Basic Law, former Hong Kong Governor Chris Patten tells the BBC. Patten helped negotiate the transfer agreement for Hong Kong and handled the transfer in 1997. In August 2014 China changed this intent leading to protest demonstrations. Wong is of Protestant parents who helped stir in him a sense of opposing social injustice. Beyond Hong Kong there is something else at work- a sense that the new leaders in Beijing are choosing the Putin Way that sees these demonstrations as inspired by foreign forces and treating all NGO's as foreign agents. In a larger sense the old leaders are living in a past world of territorial gains and keeping tight grip on power, when the world is now interdependent economically and politically, with change requiring new approaches to problems. The presence of 15 year old high school students and very young generation suggests no such foreign interference, as most of these students are very young....

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This view in the Economist shows that president Trump actually represented the instincts of the Republican party base by 2018- anti-immigrant, anti-elitist, and to the right on social issues. As a result it says it is no surprise that he has taken over the Republican party. As the elections for Congress get closer most candidates are trying to get Trump's support and many of the older senators and Congressman from the earlier period of the party are retiring. It cites polls showing Trump has support of 85% of the Republican party base. In 2018 Mr. Trump appointed new members of his cabinet who more closely represented his views on China, Iran, NATO, and business issues. Remaining party leaders such as Mr. Romney running for Senate seat from Utah are now seeking and getting Trump's endorsement. The Republican National Committee is also run by Trump supporters. On issues of foreign affairs Trump has combined alternate shifts between demands and pragmatism in relations with China, Iran, and other countries on trade, politics, coming up with a new way international relations are tackled. Part of the reason for their appeal is the nature of the intractable problems such as the imbalances in trade, nuclear weapons, and the idea that an alternative approach might work when other approaches have failed.  On social issues such as issues facing workers in globalization and free trade the parties to the left in the U.S. and countries in western Europe have failed to deliver, leading to the appeal of Mr. Trump, Brexiters, National Front in France.  The immigration issue has also worked against the socialist parties.  In Britain dissatisfaction with Theresa May and hard core Brexiters is growing, leading to Labor Party getting 40% of the vote in the recent election. Suggesting that the changes induced by the Brexiters and the Trump administration may lead to other changes in the future that may shift the focus back to basic issues and delivery on infrastructure, health and education which are fundamental for the future.   ...

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Keith Bradsher visits Guangzhou, China, just as prime minister Wen Jiabao tells the National People's Congress that China is changing its priorities from high growth to sustainable development. As recently as 2007 GDP growth reached 14%! The minimum wage is expected to rise 13% each year under the five year plan. Even with the increase in wages owning an apartment is unaffordable in Guangzhou- a 1000 square feet apartment costs upward of $300,000, showing the extent to which the bubble in real estate prices affects young people who cannot afford to own an apartment. A new graduate with marketable skills such as computer engineering makes about $6000 a year, putting owning an apartmet beyond reach. Another change he notices today is that during visits to construction sites he does not see flood lit sites at night. This used to be the case because builders were scrambling to build. With government policies discouraging the property bubble there is no longer a need for work at night. The focus now has shifted to build low income housing....

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The current number of American soldiers in Afghanistan of 32,000 in May 2014 will be reduced to about 9,800 after 2014, which would be cut to about 5000 in 2015, an leave only a small force of specially trained forces to protect the embassy and for additional security. Residual forces will include trainers and Special Operations forces to keep a check on Quaeda loyalists in remote parts of Afghanistan and in the mountains. The drones have accomplished much of the work done in earlier phases of the war by ground troops. The Afghan war has also been all about Pakistan. The completion of a full term in office of a democratically elected government for the first time, and the election of the Sharif government, including the participation of tribal and other Muslim extremists in elections, have been the hidden face of the war changing its face in other ways. The beginning of a focus on development in Pakistan and India, and the election of a new government in Aghanistan, the peace talks with the Taliban, are other parts of the shift to winding down America's presence coming from changes in the region itself- by changing the very nature of the conflict itself and isolating the most extremist elements....

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The Supreme Court upheld the provision under an Arizona state law that requires police to check the immigration status of people stopped for traffic and other offenses. By a vote of 6-2 the Supreme Court voided the provision that made it a state crime to fail to carry federal registration papers. By a vote of 5-3 it voided the provision that provided for jail time for immigrants not carrying federal registration papers. Justice Anthony Kennedy wrote the majority opinion that includes Justices Roberts, Ginsburg, Breyer and Sotomayor, and said: "The government of the United States has broad, undoubted power over the subject of immigration and the status of aliens... Immigration policy can affect trade, investment, tourism and diplmatic relations for the entire nation." At the same time Justice Kennedy said " the problems posed to the State by illegal immigration must not be underestimated," saying that "unauthorized aliens, were responsible for a disproportionate share of serious crime." Unauthorized aliens are only 8.9% of the population of Maricopa County which includes Pheonix, but caused 21.8% of the felonies. The part of the Arizona law SB 1070 that stated the illegal immigrant seeking work was commiting a crime, was struck down on the grounds that this "would interfere with the careful balance struck by Congress" for the labor market in which only employers are committing a crime. Justice Kennedy reminded the country that it was still a nation of immigrants....

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As the final Republican tax bill is debated in Congress on December 19, 2017, Senator Bob Casey cited the following points from the Joint Committee on Taxation Report on the floor of the Senate.  1. Americans building their hopes that their pay checks in February 2018 will be increasing are in for a big disappointment said Senator Ron Wyden of Oregon, a senior member of the Finance Committee. The Joint Committee on Taxation estimate is that for the 57 million families making less than 100,000 dollars a year the tax cuts in the Republican legislation will either not reduce their taxes or reduce the taxes by about $100 a year. 2. The bill does little for the big tasks facing America of rebuilding failing infrastructure. Senator Casey cited 4500 bridges needing repair or replacement in Pennsylvania alone. It also does little for health care access for middle class families and is likely to lead to 10% increase in health care premiums. Affordability of college and other hurdles of middle class and working class families remain unaddressed.   3. The $9 billion in the estate tax cuts would finance the Children's Health Insurance program which has expired.  4. The $36 billion in tax cuts for corporations comes at a time when corporate profits are at the highest they have been in 15 years, according to Vanguard founder Bogle. He also points out that wages as a percentage of GDP are the lowest in 15 years. The tax cuts in the Republican bill are not likely to correct this imbalance.  5. The share of GDP of people making more than one million dollars in 1980 was 11%, this is up now in 2017 to 20%. This has led to questions about the wisdom of these tax cuts which disproportionately benefit a very small percentage of Americans who do not need these tax cuts, and come with significant sacrifices for the middle class in terms of what is available in public services, and the cost to their children as infrastructure and access to health and education is made more distant because of a growing U.S. debt from this tax cut. The big problem then with this bill is that it further damages intergenerational mobility in the U.S., undermining the foundation of a democratic society. Damage has already happened in the past three decades as Federal Reserve chairman Janet Yellen pointed out at a conference on Economic Opportunity and Inequality on Oct. 17, 2014, saying-"The past several decades have seen the most sustained rise in inequality since the 19th century after more than 40 years of narrowing inequality following the Great Depression." This is why there is substantial agreement in the media from the Wall Street Journal's Greg Ip to Krugman in the New York Times that the bill fails to correct a harmful trend, and goes further in the wrong direction for a democratic society.       ...

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Feldstein says that for the 85% of the people who have healthcare the Obama proposals are not a good deal. The Obama proposals mean higher taxes in the long run to pay for the $1 trillion cost of healthcare for the uninsured group over 10 years. This lower income group has no coverage despite the $300 billion Medicaid program. Feldstein says there surely must be better and less costly ways of getting this lowincome group healthcare. Raising the top income tax rate to 45% from 35%- as a result of letting the Bush tax cuts expire and adding aproposed health surcharge on higher income individuals- would actually lower revenues for the government, as it would change behavior of high income individuals in ways that lower their taxable inome. The result is higher deficits and higher taxes when even without this large deficits are projected for the future. How to slow the rapid growth in healthcare spending? The Obama plan is to cut spending on Medicare. Feldstein sees the govenment's effort aimed at reducing the amount of medical services, as reduced spending comes from fewer services, not reduced payments to providers. Will this result in enough of acost reduction to make the system work. And if the cost reductions are too heavily weighted towards reduced services and not reduced payments to providers would this result in large cuts to services to affect the quality of healthcare for the 85% who are accustomed to a different pattern of healthcare, even though it is structured to allow cost escalation. Feldstein offers no solutions to the problems of cost escalation except to suggest that the Obama plan does not really tackle the cost escalation issues directly with providers, and instead burdens the national finances to an extraordinary degree. And the need for apause and reflection....