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This report in WSJ shows how the US central bank, the Federal Reserve's increase in interest rates by 5 percentage points in the short space of 2 years affects Europe. It increases inflation in Europe as energy and many other products are priced in US dollars, with the strengthening of the dollar in relation to the euro. The dollar is $1.07 in relation to the euro. European Union is facing much higher inflation than the US. The German economy has slipped into a mild recession in 2023.

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Germany's Economic Ministry is part of aconsortium to fund aproject called Desertec, which plans to to generate soalr energy in the Maghreb desert in North Africa and transmit it through anew grid of high-voltage transmission lines. IT would use low-tech methods using mirrors in the deseertto jeat up water, which drives turbines in alocal power plant. The new initiative could provide 15% of the energy needs of Europe, and would require cooperation from different European countries. The consortium also includes Siemens, Deutsche Bank, energy company RWE and Munich Re.

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One of the Russia's goals was to form a rival economic bloc of former soviet republics. Instead the Ukraine invasion has led to disastrous results for the economies of this region which are interconnected. Research from the World Bank shows the Russian economy declining by 11% and with further economic impact upto 25%, Ukraine's economy by 45%, former soviet republics like Tajikistan, Uzbekistan, Kyrgyz Republic, by 30% because of loss of remittances and the fallout from the economic effects on Russia. Belarus would see its economy shrink by 30%, Moldova by 30%, according to the World Bank. 

The miscalculations of all sides from leadership in Russia to that of Merkel in Germany, and the invasion itself, is putting severe economic losses on this part of Europe. Many of these economies will have to take loans from the IMF and the World Bank to remain solvent. 

 

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Better management of the economy has sustained Russian economic growth in past crises such as in 2008 when oil prices collapsed. Russian central bank chief Nabiullina has helped steer the economy holding US dollar reserves to just 11% the rest of $600 billion reserves in renminbi, euros and gold. Yet the war in Ukraine has introduced limits. With labor shortages and the technological isolation the war in Ukraine is setting new limits on economic growth, says the WSJ. Going forward the limit is about 0.9% economic growth a year. Before 2008 the Russian economy growth was at 7% growth a year, it dropped to 3.5% after the invasion of Crimea in 2014. With China facing deflationary trends, little recovery in growth, this shows that geopolitical tensions are changing the prospects of important economies. With globalization dimming the prospects of Singapore and UK have suffered. The US is investing in growth, and Germany is following the US model.

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With misinformation and harassment online  during election year 2024 Annalena Baerbock, foreign minister of Germany, says "democracy did'nt fall from the sky. We have to protect it" Elections take place in Mexico, European Union, India, Britain and France, in 2024 as online media spreads misinformation. Baerbock says the yardstick of women's rights is a crucial one. If women are in danger it is a bad omen for society." Peter Limbourg of DW says "Even in dark times optimism is a better way to handle it. Because pessimists normally do not contribute to solutions." Hendrik Wurst stressed "the critical role of promoting media literacy in the digital age," something that is done through the efforts of Lyrarc.com by bringing in the best articles from leading media publications in the world on all topics to create educated informed mindsets that shape better lives and societies, and by keeping it open to all to access.

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German banks lent $21.3 billion to the Icelandic borrrowers according to the Bank for International Settlements, well over a quarter of all international lending to Iceland. Most of Iceland's banks have collapsed. Iceland's central bank chief says lenders are likely to get only 5,10 or 15% back.

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The Mumbai Ahmedabad Bullet Train project is shown here on the Rail Minister Ashwani Vaishnav site in You Tube Video. Rapid buildup is progressing use new technological methods with Japanese help. The first undersea rail tunnel of this kind under Thane Creek for 21 kilometres on the Mumbai side. The 508 kilometer distance cuts travel time between two major commercial cities in western India from 7 to 2 hours. It will then be replicated after completion in 2027 and 2029 (final), across other Indian cities north to south east to west. PM Modi has emphasized this in vist to Surat last week talking to engineering personnel that the important aspect is what can be learnt from this section of bullet train engineering that can be replicated or improved across many Indian cities, over a land mass almost the size of European Union (3.3 million square kms India to 4.3 million EU). Technology: India uses the Japanese Shinkansen E10 Series. In comparison Kawasaki Steel technology of an earlier generation used for China's earlier bullet trains and redeveloped for the newest CR450. Germany uses ICE 3 neo of Siemens, France 5th generation TGV M Avelia Horizon of Alstom. Stations- Mumbai (Bandra-Kurla), Thane, Virar, Boisar on Maharashtra side and on Gujarat side Vapi, Bilimora, Bharuch, Surat, Vadodara, Anand, Ahmedabad and Sabarmati Cost: $17 billion through a loan from JICA Japan International Cooperation Agency. A key achievement stemming from close relationship of PM Shinzo Abe 2012-2020 and Modi of India starting when Modi was CM of Gujarat. Significance:  Just as it did for China this will dispel the notion that Indians could not borrow technologies and capital and with its own engineering capabilities build high speed rail infrastructure across a terrain the size of EU. The naysayers are both in India as they were with China in 2000 period and in US/Europe. It requires a special determination, persistence, vision and leadership as happened in Japan in 1960's, in China in 2000's, and India by 2030, to show what can be done to their people oppressed by the sense that failures of the past could not be overcome. Note that it was Japan that stepped up its help to setup the bullet train system in China by 2004. Japan's Hideo Shima and Shinji Sogo were the chief engineers for Japan's first bullet train in 1964, invented by Japan as first in the world to do this.  Next bullet trains and travel time cut to: Ahmedabad to New Delhi through Jaipur Mumbai- Pune will be a mountain tunneling exercize as much of it goes through mountainous terrain. Cut travel to 45 minutes. Pune to Hyderabad Hyderabad to Bangalore cut travel to 2 hours Bangalore to Chennai or Madras cut travel to 3 hours  (Shanghai has always remained Shanghai so has Ahmedabad, its all about what can be done not names) Chennai  to Bangalore cut travel time to 1 hour and 13 minutes Delhi to Varanasi Varanasi to Siliguri through Patna From the Alps to the North Sea in the EU, in India bullet trains can take one from Indian Ocean at Sri Lanka to the Himalayan mountains terrain and Nepal. ...

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The Economist magazine says the difficult process of Brexit is now being put by Theresa May into the hands of the pro-Brexit ministers, Liam Fox, David Davis and Boris Johnson. Just staffing the Department for Exiting the EU under Davis, and the Department for International Trade under Liam Fox is taking a lot of time. And the differences between Fox and Davis also figure into the time it will take to invoke Article 50. It says the points put forward by Brexiters that Britain could revert to WTO rules do not work so well in practice, and it takes years to negotiate new trade agreements with other countries. It sees many problems, and says it is no wonder that Theresa May has told the Brexiter ministers to come up with answers as they are the ones who have sold this idea to the country.

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The campaign in German schools "Smart ohne phone" or "Smart without a phone"  for school children in 2025. One student at Dalton High School in Alsdorf, North Rhine Westphalia, Klara Ptak, is cited in this report by  Oliver Pieper in DW.com. Klara 17 years old says- "A total of 51 phones were seized — that's a fairly significant number considering we have 700 students. And you can really see a difference, especially in the younger kids. They used to stand around in a circle staring at their screens, and now they are playing football, badminton, or board games together. It's a dramatic shift." A survey by the Körber Foundation, and pollster Forsa, says that parents of children ages 12 to 18 complain that their children's time spent on social media is out of control and is their leading source of stress. The German National Academy of Sciences Leopoldina is for banning phones upto tenth grade, it wants to keep children under 13 away from the internet for social media completely. It is interesting to note that the younger student are fine with it and adapted quickly seeing the benefits. This shows that a new generation of student can be trained for a different lifestyle. Today in the Washington Post Linda McMahon and RFK Jr. team up on an article saying just this that time spent on screens lifestyles along with nutrition and food fail school children badly, reminding people about the saying in Latin since the 2nd Century by poet Juvenal -"a healthy mind in a healthy body." ( Latin -"mens sana in corpore sano").   ...

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Adolf Merckle of Blaubeuren, near Ulm, in Germany, whose financial dealings led to the collapse of his pharmaceuticals and other businesses, committed suicide probably by putting himself in front of a train at the rail tracks in Blaubeuren. The picture in the NYT is communicative of this period, with the few candles placed near the snowy railroad tracks of Blaubeuren, just as the train passes. It reflects the shock and grief of the town and the shock felt in Germany.

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Nirmala Sitharaman, the Finance Minister, says India's approach to pandemic aid appears to be the right one because it avoided handouts that have in the form of large stimulus packages in the US and Germany, created high inflation. India's focus was on providing food for weaker members of society during the pandemic.  The basic idea behind the approach was to conserve capital, and use increased GST tax revenues in such a way that capital could be concentrated where it would deliver the most in projects that would take India forward in infrastructure and development for 2042. This is essentially the approach taken by first, Japan, then South Korea, then China, in becoming advanced industrial nations, increased revenues and capital concentrated on projects that would deliver in terms of industrial progress such as infrastructure, today in climate change renewable energy, and other actions. Gati Shakti integrates this into a Master Plan for the country for 2042. ...

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Cities including London, New York, Paris, Rio de Janeiro, Buenos Aires, Mexico City, Melbourne, Milan, Caracas, Cape Town, Copenhagen, Vancouver, have pledged to become carbon neutral by 2050.

Reducing transport emissions is a big challenge. London has Ultra low Emission Zone which encourages people to switch to low emission vehicles.  Paris is creating 650 kilometres of cycling paths and plans to open up the whole city to bicycles by 2026. Buildings have a large carbon footprint - producing 38% of global carbon emissions. Of this 11% are in the construction materials of steel and concrete, Wood is an alternative material that is being tried in buildings. Passive heating is a way to heat or cool buildings by building underground canals around a building and using the natural temperatures of the earth to cool or heat the air above. This is seen in the Energon building in Ulm, Germany.

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Mulayam Singh Yadav was mentored by Indian Socialist leader Ram Manohar Lohia who was an activist in the Independence Movement after Quit India was launched by Mohandas Gandhi. Lohia is rare in India's independence struggle because he studied at Humboldt University in Germany 199-1933 and did his doctoral thesis on Salt Taxation in India following the Salt Tax protests of Mohandas Gandhi with Dandi March in 1931.  Lohia contested elections in parliament with Mr. Nehru in 1962 in Phulpur constituency Uttar Pradesh. In this sense Mulayam Singh continued the work of Lohia to provide India with an effective opposition for its democratic framework covering a billion people with as many languages as Europe and a caste system. This report shows pictures of Mulayam Singh Yadav during a difficult period when the Opposition parties began to form governments in the northern states of India and at the federal level in the years following 1990.

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Changes in the management board at  VW that will lead to an accelerated investment in electric vehicles. Labor leaders had sought to oust CEO Herbert Diess. Mr. Diess will no longer oversee the VW brand or the company's business in China. The management board is expanded to 11 from seven previously. Three new board positions were created two filled by women. The result is that Mr. Diess will now be working with overall guidance from the board and other members that seeks to accelerate VW's conversion into an electric car company. About $180 billion in investment was approved half of this going into digitization and electric cars.

These changes are happening as Germany goes in a new direction under the leadership of Mr Scholz of the SPD and the Greens vice chancellor, Mr Habeck, who is also in charge of an expanded economy ministry including climate change, with large investments planned to combat climate change.

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Airbus is making the Airbus 380 superjumbo model plane about 25% slower than originally planned say Airbus executives. This is partly because manufacturing is sequenced between France and Germany. The way the production system for the A380 is organized today is to split work between the French and German operations. The plane structure is built in Toulouse, France, and the cabin and interiors are fitted together in Hamburg, Germany. Tom Williams, Airbus executive vice president for programs, says this slows the completion and increases the cost. On the A330 models the work on the interior is done along the way as the structural work is being done, and this reduces cost and speeds up completion. Part of the problem is the sensitivity of the issue of moving work for unions and governments, but he now plans to push the A380 cabin outfitting back up to the earlier stage when the airplane is being built. A slower production rate means workers and engineers are learning more slowly how to build these planes efficiently by structuring tasks in a certain way and using different production methods. Boeing has also experienced similiar production delays and is working on moving up the learning curve the way EADS Airbus is doing. The A380 program has suffered delays over the years. In 2009 wiring the cabins was a problem. In 2010 a Rolls Royce engine on a A380 flight by Quantas Airways blew up on a flight after takeoff from Singapore. Because of manufacturing issues there were delays in delivery of Rolls Royce engines in 2011. Bot problems were resolved. In 2012 Airbus has found cracks in metal parts inside A380 wings which has slowed output. Airbus has delivered 77 A380 planes since 2007. The production rate is 3 A380 planes a month, compared to plans to make 4 a month by 2012. About 30 A380's are expected to be delivered in 2012, compared to 26 in 2011, 18 in 2010....

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Questions are being raised about the lack of fairness in the cuts imposed in Greece - and the IMF acknowledges this- where the minimum wage was cut by 22%, but the most highly paid civil servants had their salaries cut by 10%. Germany's finance minister Wolfgang Schauble told the German daily newspaper Der Tagesspiegel: "I really feel for the people of Greece. The vast majority now hard-hit by reform and austerity measures... can do nothing about the backup in reforms, the loss of competitiveness and the unproductive use of funds in the past." In Greece there is a separate wage scale for the highly paid public sector employees such as doctors, diplomats, professors, and uniformed personnel in the military and police. This is different from what the ministry bureaucrats, hospital support staff and local government administrators get paid. This group took only a 10% cut, even though it makes up one third of the payroll according to IMF and EU estimates. The cuts to the minimum wage were made to improve Greece's competitiveness and because in Greece during the last decade wages went up much higher compared to Germany. Brian Carney pointed out in a Journal article Feb. 14, 2012, that nominal private sector labor costs went up by 62% in Greece from 2000-2008 compared to 15% in Germany. Showing the nature of the fight to make the cuts more equitable, is the resistance to the IMF-EU insistence on cuts to the highest pensions which amounted to $178 million. In the end prime minister Papademos said the monthly pension of $1975 was reduced by $32 or 1.6%. The lack of fairness creates more uncertainty about the cuts as elections are expected in April, only 7-8 weeks from now, and fears that this may not hold when a new government is elected. For this reason the IMF-EU officials are considering putting the $170 billion bailout money in an escrow account....

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The Netherlands government of prime minister Mark Rutte collapsed on April 22, 2012, after the Freedom party of Geert Wilders said it would not support futher budget cuts. Mr. Wilders said: "We don't want our pensioners to bleed just to meet the dictates coming from Brussels." Government forecasts had predicted the Netherlands deficit at 4.6% of GDP in 2012, above the 3% goal set by the European Union. And negotiations that collapsed were about making $18 billion in budget cuts to help meet the deficit goal. Rutte will now lead a caretaker government till elections in September or October 2012. Credit agencies may lower the Netherlands credit ratings from AAA and this would raise Netherlands borrowing costs in coming months. The result would be to increase the deficit even further. The Netherlands government was a strong supporter of Germany to introduce strict austerity measures and budget cuts in the eurozone during the debt crisis in EU countries in 2010-2011. With the elections in France and the defeat of French president Sarkozy in the first phase of elections by Socialist candidate Francois Hollande, the austerity programs in Europe appear to be unravelling. The deeper Europe goes into a recession in 2012-2013, the more likely new measures will be needed to address competitiveness, growth, interest rates and overvalued currencies as opposed to largely fiscal and budget measures alone....

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The Economist looks at real estate markets in the U.S., Canada, Britain, Germany, Hong Kong, India and other countries in May 2013. It looks at price to disposable income and price to rent ratios and sees if these ratios are higher than historical averages to determine if prices are based on sound foundations. Canada's real estate market looks set to face problems of a bubble bursting. The U.S. recovery is seen to be based on firm foundations. Property prices are undervalued in Germany and set to rise.

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South Korea which is dependent on exports for nearly half of economic output took a massive hit with January's economic news that exports fell by 32.8% in January 2009 compared to a year ago. The information appeared on the website of the Korea Customs service, and the Ministry of Knowledge Economy released this information also. The government reported that industrial production fell by 18.6% in December 2008. A large proportion of South Korea's exports are semifinished goods like televisions, cellphones, cars and other products that are finished with final assembly in China's factories, and then exported to other countries. So these numbers in South Korean exports will show up in figures from Chinese exports in the coming months and may be just as steep. This begs the question, what will happen with the export model in countries like South Korea and China and countries like Germany that are heavily dependent on exports to China. If as reported in today's WSJ Americans are now becoming thrifty, spending less and saving more, with this showing up in the statistics- and in habits like shoe repair with a story on the growing shoe repair business in today's WSJ- where will this take export dependent economies?...

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Where EU gets LNG in 2024- Qatar 12% US 43% Russia 21% other 24%. EU's gas pipeline supplies increased in 2025 from Norway by 6% to 52.6%. Norway is also increasing its LNG supplies from Hammerfest. US under the Trade Agreement with EU US plans to send $750 billion in LNG exports to the EU. A Sustainability directive by EU for climate goals puts Qatar at risk of penalty of 2.43 billion euros according to DW.com. Qatar has said it may discontinue exports of LNG to EU in response and shift to Asian buyers. Since the Ukraine war and shift away from Russian gas pipeline supplies German economy Minister Habeck negotiated the deal with Qatar for LNG.

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At 0.3% growth in 2024 the OECD predicts German economic growth lower than that in France or Italy. High oil and gas prices, worker shortages, and lack of government subsidies to compete with highly subsidized solar and EV's China in a level playing field, have hit German industry hard. The adjoining article looks at France and what it is doing right.

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The purchase of F/A-18 aircraft by Germany capable of delivering nuclear weapons stationed in Germany is critical to keeping the nuclear deterrance and the "nuclear sharing" agreement with the U.S. Older aircraft, the Tornadoes are now 40 years old. Chancellor Merkel has supported the purchase but this is now being called into question by its junior partner in the coalition government the SPD.  Leaders of the SPD party say they would block the purchase of 45 Boeing Company made F/A-18 jets proposed by Merkel's defense minister. Under NATO's nuclear sharing agreement going back to the 1950's it is believed there are about 180 B61 tactical nuclear bombs in rope, some 20 in Germany and spread out over Belgium, Italy, the Netherlands and Turkey. President Trump has said the U.S. will withdraw from a treaty with Russia that limits the presence of nuclear missiles in Europe because Russia is not living up to the agreement. This could lead to an arms race. The issue is leading to the beginning of a fundamental debate about nuclear armanent and military spending of a type that has not happened in Europe since 1982 when a rebellion in the SPD over the stationing of nuclear weapons in Europe led to the ouster of Chancellor Helmut Schmidt.  The Christian Democrats view the purchase of the F/A-18 at a time when Russia is updating its nuclear deterrance as fundamental to NATO and nuclear sharing. The SPD's leaders say nuclear sharing does not mean the need to host nuclear weapons, and give the example of Canada, a NATO ally that does not have U.S. weapons on its soil. ...

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Spain provides 14 public holidays that are mostly Catholic holidays, and an additional 22 vacation days, which is similiar to the the EU average. Unlike the practice in the U.S. and Britain to have these holidays fall mostly on Fridays and Mondays, in Spain many of these holidays fall in the middle of the week. This disrupts productivity as Spaniards use bridge days or puentes to create long weekends during which many offices and factories are empty, disrupting productivity. Most companies cannot plan for meetings and work because counterparts may be using the bridge days during these holidays, and working with international clients is difficult and hard to explain. Spain's new prime minister is determined to increase Spain's competitiveness, and bring Spain to the level of competitiveness of countries that do well in this measure, including other European and Asian economies. He describes this in his book "En confianza. Mi vida y mi proyecto de cambio para Espana." ("In confidence. My life and project of change for Spain") In his inauguration address he said Spain should correct "the work calendar to make the rights of workers compatible with the competitiveness of our companies." Vacations are a sensitive issue in Spain because tourism generates 10% of GDP and employs 10% of the workers. Alberto Nadal, who addresses labor issues at the main business association in Spain, says a change of mentality is needed in Spain, and doing away with bridges shows Spain is grasping the idea that things should be done differently for the eurozone community of nations. This also shows some of the differences in the Iberian peninsula countries of Spain and Portugal, where the countries are embracing the change and there is less unrest even with high unemployment, as compared to Greece. In Greece the changes are being resisted by politically connected groups, where political parties enjoy little support and there is much unrest, making the project difficult. Mariana Rajoy, Sarkozy and Merkel are from centre right parties in Spain, France and Germany, and have had a close association for years before Rajoy was elected- during EU meetings of centre right parties, as is evident in Rajoy's book. They also share a similiar business and political orientation. ...

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Italy, Spain, Switzerland the host country, and Norway are heading to the quarter finals of the UEFA Women's Euro soccer championships. Germany, France, England and Sweden, are expected to join them.