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US president Biden's $2 trillion infrastructure spending plan is being compared to the New Deal infrastructure plans of Franklin Delano Roosevelt in the 1930's. FDR was preceded by Republican administrations under Hoover and other presidents who followed policies that can be compared to the Reagan administration policies when public sector spending was not seen to be as efficient as private sector spending. By the time of the economic collapse in the 1930's it had become clear that only the federal government could save the country in the depression. During the pandemic and collapse of the health systems it was clear that only the federal government could save the country. It is now also evident that infrastructure building led by the government can rebuild America. In the 1930's and during other periods in American history such as the building of the Erie Canal and other public sector infrastructure projects in the 19th century it was the federal government that led the way to building America. ...

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Email exchanges between OMB staffers and Obama administration officials, released exclusively to the Washington Post, show the Obama administration urging the OMB to speed up its decision on the half a billion dollar loan to Solyndra. This was part of stimulus funds to the solar industry. Solyndra was a favorite of the Obama administration according to the Washington Post, and aides to Rahm Emmanuel and other officials sent emails urging speeding up approval. OMB officials in their replies stated they were under pressure. One email by a senior OMB staffer sent to McSweeney, Biden's domestic policy advisor, Aug 31, 2009, said: "we have ended up with a situation of having to do rushed approvals on a couple of occasions (and we are worried about Solyndra at the end of the week)... we would prefer to have sufficient time to do our diligence reviews." Other emails referred to "the time pressure we are under to sign-off on Solyndra," and indicated "there isn't time to negotiate." Solyndra had large investments by the funds operated for the family foundation of George Kaiser, an Obama fundraiser....

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Obama's closest advisor, David Plouffe. Asked about Plouffe's influence in the Obama White House one aide says that Plouffe's imprint is on "everything." For the last 18 months Obama has kept the 2012 election in mind in his actions and kept a campaign focus, on the advice of Plouffe. George W. Bush's advisor, Karl Rove, does not see this positively, as he says it kept the president from governing. One issue on which there is considerable questioning is why President Obama did not support the recommendations of the president's Simpson-Bowles commission on deficit reduction. Though it remains conjecture, it may be because of Plouffe's and other election related advice that reducing deductions- or what are called tax expenditures- as suggested by Simpson-Bowles would be politically unpopular. If true this may be ways in which running for office long before the election date may affect necessary action in governing. The political calculations when allowed to go rampant can distort the needed actions of responsible governing, and lead to timidity, indecision and lack of leadership. ...

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Alan Blinder, former Fed senior official, makes a spirited defense of the Federal Reserve's $600 billion quantitative easing move in November 2010. He says at the most this would lead to 1% to 3% inflation, and not the inflation critics are pointing to that would hurt the US. He is critical of the mercantilist countries, Germany and its Finance Minister Schauble, for calling this currency manipulation. He finds it incomprehensible that aides to Russsian Prime Minister Putin have asked the Fed to consult with Russia before taking such action. His preferred move would have been to purchase private securities and reduce the rate the Fed pays on reserves to negative. This he says would blast reserves out of banks into more productive uses. Yet he sees the Fed's move as better than doing nothing. He says that if buying Treasury's is a weak tool, a view he shares, then this should not be very inflationary. See his earlier op-ed piece in the WSJ when the Fed announced its action.

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As Huawei's young engineers go through a learning curve, the company faces challenges of giving them additional business experience. Huawei is working to instill western practices and culture in its enginers by expanding overseas, and hiring seasoned engineers in Europe to mentor the younger Chinese engineers. Of the 23 Huawei R&D centers, 13 are located outside China. Huawei adds engineers right out of college- 50,000 employees were added in the last 5 years right out of college. Of the 149,000 employees, half work in R&D. Average age at Huawei is 29 years. In this sense Huawei is unusual for a high tech company compared to western companies. It is a plus for Huawei in the long run, but it means a lot of training is needed. Lars Bondelind, the Swedish head of wireless marketing at Huawei, describes these challenges at the 2012 Barcelona Mobile World Congress. Bondelind says the Chinese engineers he works with have higher knowledge and expertise than newly graduating Swedish engineers, the challenge is training them in western engineering and business practices....

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Mark Hulbert lists the quality stocks with low P/E ratios, little debt, high return on equity, and long records of earnings growth spanning long periods that limit volatility after the emerging markets crisis of 2014. He adds a cautionary note on the idea of quality stocks by saying P/E ratios matter, that quality stocks at a high price are a bad investment and at extraordinary prices are a extraodinarily bad investment, citing the Nifty Fifty stocks of quality in 1972 that lost value in the stock market slide in 1973. He takes quality stocks Disney, Procter & Gamble, Johnson & Johnson off the list of quality stocks because of high P/E ratios, a critical criteria. Hulbert's list for financial quality companies and their P/E ratios in Jan. 2014: AT&T telecom 9.4, Aflac insurance 9.1, Allstate insurance 10.9, Apple computer and telecom 12.7, Bank of Nova Scotia 11.0, Chevron oil 10.0, Cisco computer hardware 12.2, IBM technology 11.7, Royal Bank of Canada 11.5, Wells Fargo banking 11.5. These P/E ratios compare with the S&P 500 P/E of 17.3....

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Britain's 2013 budget provides some benefits to home buyers. Chancellor of the Exchequer Osborne says the Bank of England will have more leeway with its inflation target to aid economic growth. Britain's Office of Budget Responsibility says growth will be down to 0.6% in 2013, and 1.8% in 2014. This is a result of weak exports to the eurozone and decline in consumer spending. The government now expects to borrow 240 billion pounds more than forecast for the 5 year period ending April 2016, as a result of the weaker economy. Debt as a percentage of GDP will not decline by 2015 as planned earlier, it will be 2018 before this happens. Osborne said: the plan "is taking longer than anyone hoped. But we must hold to the right track."

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Mr. Acton and Mr. Koum, co-founders of Whats App messaging service have left the company after disagreements with Mr. Zuckerberg of Facebook. They say they had no intention of seeing Whats App turning into a clearing house for ads. Initially following the acquisition there was an agreement that advertising would not be the focus for Whats App, and the Whats App founders were given a large degree of autonomy. This has changed as Facebook uses data it collects to target audiences for ads on its services.

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Mr. Trump sees jobless aid and stopping evictions a top priority but negotiations with Democrats are not moving forward.

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The pandemic and ensuing lockdowns, unemployment in the US separated workers from their jobs just long enough to give them a chance to rethink how bad their jobs, incomes, and working conditions were before 2020, says this expert in the NYT. The aid to unemployed workers through long term unemployment benefits, moratorium of rent payments, direct money to households, gave workers enough financial room to make the choice not to go back to poor paying jobs with huge contact risks from coronavirus in the restaurant, fast food franchise, travel and entertainment industries, related industries.  With the Biden administration investing in child care, maternity leave, care for elderly leave, new opportunities for relocating and looking for work were opening for women, and for men who had stuck to old jobs and put up with lousy conditions because of a lack of alternatives. Biden administration's Families and Workers Plans, the effects of the pandemic, helped to shape a new culture of what was possible for workers- a sense that dignity in the workplace was part of culture in America. Restored by FDR/Truman and now again by Biden after two tech booms in the 1920's and the 1990's. A similar situation of a change in culture respecting the dignity of workers and of work is taking place in European Union as stated by SPD leader Olaf Scholz in his election campaign in Germany. Scholz is now incoming Chancellor replacing Merkel. European Union countries have better laws and rules in place for worker retention, and also better worker protections so that the great resignation that happened in America took place in a milder version. ...

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Patience and remaining undeterred with SPD at 15% just months before the election helped SPD'S Scholz to win. There was also a carefully planned campaign around Scholz, unity in the SPD behind Scholz. Scholz and SPD realized that there was a major opportunity to win confidence of Germans in the pandemic aid packages for Germany and the European Union that Scholz put together. Scholz took charge chairing meetings when Merkel was in isolation. In this way he not the outgoing chancellor Merkel was seen as the architect of economic recovery from the blow of the pandemic.  Percentages are deceiving including the drop to 15% for SPD. Scholz pointed to public fatigue with the two major parties and need for change had led to shift to Greens, and other parties. By working with Greens to develop a common approach based on borrowing to invest in infrastructure and climate change Scholz realized he could both tap into skills of a younger generation that had gone to the Greens and build Germany along lines that also tackled climate change. This created a new and real option for Germany- the experience and new zeal for workers and families of the changing SPD under Esken and Scholz with the energy and zeal for tackling climate change of the Greens under Habeck and Baerbock. As a map of Germany in the NYT shows on September 28, the numbers can be deceiving. Except for Bavaria in the south most of Germany's regions including cities of Cologne, Berlin, Hamburg voted for the SPD or the Greens. Most of the map is red color of the SPD, with small densely populated pockets in cities Cologne and Berlin for Greens. Apart from Bavaria and Thuringia-Saxony, the election was won by Greens SPD by big margin. ...

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The impeachment inquiry in the U.S. House of Representatives set off by a release of president Trump's conversation with the new Ukrainian president, involves vice president Joe Biden and his son Hunter Biden. Mr. Trump had called for the Ukrainian government to look into corruption. The Washington Post gives this story of how Hunter Biden joined the board of an obscure Ukrainian gas company set up by a former minister and that this was brought to the attention of Joe Biden by advisers. At the time Joe Biden was representing the U.S. in Ukraine during a period in Ukraine when there was little clarity or transparency on what was happening in the country with changing governments. This story describes the thinking of people in the Biden circle who thought this was a bad idea.  This includes Hunter Biden's partner in the investment firm, a stepson of John Kerry, Secretary of State in the Obama administration, and other advisers of the Bidens. It has raised questions about why steps were not taken to prevent the perceived conflict of interest.  As a result of this Ukraine, a country at war with Russia and having elected a new president outside the conventional politics, is now at the centre of the impeachment inquiry. It is also likely to reshape the 2020 presidential election with differing views on this inquiry from president Trump who sees it to be about corruption in Ukraine, and Democrats about the president's effort to pressure Ukraine for his political campaign as U.S. provided critical aid to Ukraine.    ...

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Anatomy of Zhao Qingjies and Wonder Auto Technology Company in Jinzhou, China. Th arithmetic adds up, see costs for Wonder in Jinzhou, and the dream.

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India's Supreme Court urges the Modi government to ensure protections are in place to preserve privacy rights of Indians. It said the dangers can originate from private parties or non-state actors as well as the government. A nine judge bench led by Chief Justice J.S. Khehar stated- "we commend to the Union Government the need to examine and put in place a a robust regime for data protection." The Court called for a sensitive balance between individual rights to privacy and the legitimate aims of the state which it said would include "protecting national security, preventing and investigating crime, encouraging innovation and the spread of knowledge and preventing the dissipation of social welfare benefits." The biometric identification program Aadhar was designed under the previous Congress government as an effort to control the leakage of social welfare benefits through corruption, a significant problem that hurt the poorer sections of society in rural areas. The Modi administration has pushed forward with the program and expanded it to turn it into a national identification program. As part of the plan to ensure data security the Modi government has setup a committee of experts led by former Supreme Court judge, Justice B. N. Srikrishna to identify key issues for data protection, and to propose a draft Data Protection Bill. The Ministry of Electronics and Information Technology will work with this committee over the next 2 months, as the committee prepares its report. ...

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Leaders of Germany's federal states agreed on cost sharing to settle refugees from Ukraine. Chancellor Scholz said that Germany will provide $2 billion in federal aid to German states for accomodating and integrating Ukrainian refugees.  Refugees from Germany will be able to receive basic welfare benefits similar to the welfare aid received by Germans of 400 euros per month under Hartz welfare program. By integrating them into Germany's social security system the refugees can integrate and stay in Germany, Scholz added. This means access to more resources, to job centers, health care and German language courses.

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This WSJ editorial on March 7 with Cruz winning in Maine and Kansas with wide margins, and Trump winning narrowly by 3.6% in Louisiana and in Kentucky, says that the Cruz win in Maine shows he could win in other states. It points out that Trump actually lost in Louisiana with those who voted on election day, that early voters made a difference. As Trump gets not just media attention on which he thrives, but also close scrutiny in media the situation appears to be changing. The WSJ calls for Trump to release his tax returns, particularly important in Trump's situations says the Journal because of his flamboyant statements about competence as a wealthy businessman. Also a factor in the elections in March will be how much Trump spends on ads as he has spent little so far.

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This Journal editorial points to the 3 page letter from Gen. Dempsey that make a U.S. response in Syria seem difficult and laborious, cost $1 billion a month, and endless. Gen. Keane points to the Syrian air force operating from just 6 main air strips and with about 50 aircraft out of 100 operational, using this to terrorize the opposition and the countryside indiscriminately including civilian population. Taking these out with cruise missile and other strikes is all that is needed, not even a no-fly zone says Keane. Short of a proper response the U.S. and the Obama administration could only end up leaving the Assad regime in place for longer, says the Journal. Aid to rebel groups that can then do the work of completing the transition is the right strategy, says the Journal.

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President Obama and President Maliki of Iraq meet at the White House in 2013- both in an awkward position. Maliki having to ask for American assistance in fighting Al Quaeda in western Iraq after insisting on America's complete withdrawal two years earlier. Obama having to face uncomfortable questions on the withdrawal and the current situation after American sacrifices in Iraq during the Bush period. The situation in 2011-2013 involved use of Iraqi airspace for the government of the previous Iranian president Ahmadinejad to supply the Assad regime. Maliki also opposed sanctions against the Assad regime. The visit by Maliki and requests for aid and increasing investment in the oil industry, comes as Iran under president Rouhani improves relations with Turkey in late 2013 to head off increasing Sunni-Shiite sectarianism and conflict in Syria, Iraq and other parts of the Middle East.

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This NYT editorial points to the dangers lurking behid the jobless numbers. The House bill that passed recently for $154 billion to extend unemployment benefits- set to expire in Feb 2010- to June 2010, and increases aid to local and state governments. It also includes infrastructure spending and help for small business. But it does not do enough for young people whose joblesness is at all time high. For instance only 4 in 100 low income black students found work in Fall 2009 This according to a study by the Northeastern University Center for Labor Market Studies. According to the analysis done by this Center the employment rates among teenagers has risen four times faster than the rate among adults since 2000, and todayme over 65 are more likely to find jobs than youth of 16-19 years.

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Donald Trump's economic advisory team includes in addition to Harold Hamm, shale energy billionaire, Steven Mnuchin, CEO of hedge fund Dune Capital Management, hedge fund billionaire John Paulson, Dan DiMicco, CEO of steelmaker Nucor, bankers Stephen Calk, and Andy Beal, tax expert Stephen Moore, and David Malpass, a columnist for the WSJ. The team is headed by Stephen Miller, an aide to Senator Jeff Sessions of Alabama. The Washington Post points out that the selection of the team with many hedge fund businessmen including John Paulson, who bet against faulty mortgages before the 2008 financial crisis, is at odds with his criticism of Hillary Clinton for her contacts with Wall Street and his message of not having any connections with Wall Street so that he could better represent the interests of ordinary Americans- people hurt by the 2008 financial crisis with the high jobless rate for older white men. In the 2008 election both candidates John McCain and Barrack Obama were shown in media articles to have connections to lobbyists for Fannie Mae and Freddie Mac. In the 2012 election Mitt Romney as a private equity executive at Bain, was a part of the financial industry. This time in 2016- after all the noise and tumult about who represents Main Street- is no different for Trump and Clinton's connections to the financial industry. Only Clinton has to respond to the movement within her party from Bernie Sanders for providing a genuine example, and breaking with the past. The team of economic advisors put together by Jeb Bush led by Glenn Hubbard may be little different in substance than the one put together by Trump in its connections to the financial and real estate industry. The only person who took on the financial industry to fight for homeowners interests shown in Lyrarc since 2008 is Sheila Bair of the FDIC, a Kansas Republican. She could truly represent the interests of working class and ordinary Americans simply from a notion of fairness that  is so much a part of the American experience. Yet she has said running for office and fund raising in the way it is practiced today makes the thought too difficult to accept. Recent developments do not offer encouragement. Yet ordinary Americans ought not to forget, and ought not to let anger affect a discerning view of things. ...

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The former head of U.S. Homeland Security ministry, Mr. Chertoff, and the former head of NATO, Mr. Anders Rasmussen, say the U.S. and European allies are not prepared to meet Russian meddling in elections two years after the U.S. elections and elections in the last year in Germany, France, Spain and Italy. Both co-chair Transatlantic Commission on Election Integrity. They expect 20 elections between now and 2020, and see 20 opportunities for Russian meddling in these elections- suggesting the response to the recent meddling is very inadequate. They cite the shift from fake news to hyper partisan narrative used in the Italian election. This approach uses some content that is true to weave a narrative that leads to an exaggerated version of events. It was used on immigration to appeal to immigrant weary Italians to lead to a situation where the anti-immigrant party Northern League attracted a large portion of the vote. This approach is not new as it was used by pro-Brexiters with ads showing an unending wave of immigrants crossing European borders. Suggesting Britain itself was facing this wave of immigration, using pictures of immigrants from Africa crossing the borders of Hungary and Austria. Placed on buses and billboards this influenced the election, including hyper narrative stories about what how the UK was sending 350 million pounds a week to the European Union which could go to the NHS instead. Britain's Liberal Party leader Nick Clegg and Joe Biden former Vice President are members of the new Commission. ...

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Like Japan China is looking to wean its exporters away from dependence in the export markets- one of the steps agreed on at G-2- in Pittsburgh- and increase spending by Chinese consumers to buy more of the same products at home. Bicycle manufacturer Tandem has lost 40% of the American sales, now it is looking to the Chinese market as incomes are rising in China. As Tandem's general manager puts it in the US the shift is now to buying cheap things. Chinese exports after rising 20% each year for years, recorded a drop in August 2009 of 23% down over August 2008. In China urban household spending was up 9.2%. THe savings by American households jumped to an annualized $566 billion in the second quarter of 2009, quadruple the rate at the start of 2008. Batson gives this account from Shunde in Chinawhere Tandem has it head offices. He talks with managers at Tandem and sees the struggle within the company to some up with anew mindset, and organization, to sell bicycles in the domestic market where other bicycle manufaturers like Giant Manufacturing Company of Taiwan already have a large share in the high end market. Mr Tseng had to convince his fellow managers and the board that it was a good idea, as the domestic market is tough to pentetrate, kickoffs are common, and competition is intense. Tseng says Tandem will approach first the children's market where competitors haven't focussed, and treat as atoy for kids. Tandem will bring higher quality better built bikes into this market. And this is similiar to what it sells to American kids with lots of colors and funny names. Tandem managers aren't sure Chinese distributors or retailers will pay enough attention to their bicycles so they decided to open astore in Shunde and start small and scale up. Tseng says that Tandem will have to pay its tution first and learn about the market. This means it will still continue selling to America and Europe. Chinea's government is now encouraging these efforts to target the domestic market with tax breaks and coupons. But as China and Japn also become more inward looking economies and trade inside Asia increases, the domestic demand is not enough to make up for the loss in the American and European markets. The US and Europe each put in $9.5 trillion into the global economy, even at their current recession diminished pace, compared to the $1.5 trillion spent by Chinese households. Per capita incomes tell the story. In the US $35,486 and in China $2,270. T...

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

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Working part-time during retirement years is important for health- staying active, using ones mind and brain, social engagement, and getting satisfaction in the workplace. A Study in 2017 by the Rand Corporation finds about 40% of workers over 65 who had previously retired back to the workplace. People are lengthening careers, and returning to work not just for financial reasons. Many of these people are looking for ways to remain active after realizing that staying active was important and if this could be combined with having extra time off in part time jobs for other hobbies and interests- this would better fit today's lifestyle and choices with people living longer and having more productive lives than ever before. A recent Pew Research analysis of data from the U.S. Bureau of Labor Statistics shows the proportion of people over age 65 who are employed part time or full time has gone up in 2016 from about 13% to 19% with about half these people working full time. This trend to work following retirement has a word for it- people call it "unretirement." Where work is less taxing as for graduates and people with higher education this is happening more.  From a health perspective this can be important, as people can become more reclusive and more internal looking, less socially engaged as they retire without even realizing it. Some level of social engagement is planned by people retiring, and many retirees do volunteer work, yet this may not be enough. For those people who retired early because of burnout in the workplace, strains with other workers, poor culture in the workplace, the retirement for a few years after 60 can serve as a way to replenish one's resources, recover and resume working again in a place that is better suited for them. The restorative break can then serve as a way to get back to the workplace in a positive way. Work that is meaningful, offering opportunities for contributing one's skills, adds a new dimension to people's lives, and is also a contributor to living healthy lives, at a time when people live longer. Retirement at 65 may not make sense in this new environment, opportunities for part-time work bring the knowledge and skills of experienced people to the workplace and offer a win-win solution for both. More needs to be done to create these opportunities in a planned and organized way in business and government, in all workplaces. ...