LyrArc Article Gist
Matthew Slaughter of the Tuck School, Dartmouth, says that the principle of comparitive advantage should determine what America exports and imports. Under comparitive advantage each country concentrates its energies on the particular goods and services that it does better than other countries. Free trade operates under the idea of comparitive advantage, but in practice it is quite different than its textbook economic counterpart. It is constantly changing as new countries or industries in different countries try to upset the existing pattern. Under a textbook example Airbus should not exist because Boeing was the most efficient manufacturer upto that time, and new entrants in a industry are nurtured for years with support from the governments of their countries. And in some situations the governments may exclude certain companies or industries from support such as Komatsu and construction equipment in postwar Japan, and Infosys and software outsourcing in India, and still survive and grow. Under comparitive advantage Japan should still be importing construction equipment from Caterpillar in the US, and there would be no serious competition in that industry. This would work to the detriment of the principle of competition in free trade which is just as important to free trade as the idea of comparitive advantage, with new entrants in an industry upsetting the old way of doing things and creating price/quality improvements. Slaughter simply pulls back off the shelf the old idea of comparitive advantage without seriously considering its real life aspects. Without dealing with trade distortion from currency manipulation, from the impact on jobs, without considering the continuing critical role of manufacturing in developed economies to provide the standards of living for a large middle class, and creating the kind of society that people of developed countries aspire to. He mentions GE's Immelt and the President's Council on Jobs, but makes no effort to engage Immelt 's statement in his recent op-ed article in the Washington Post, that the concept of transitioning from a export-oriented economic powerhouse to a services led consumption based economy could be done without loss of jobs, prosperity and prestige, was fundamentally wrong. He has only one line for manufacturing's role in America's economy. This line says knowledge intensive industries such as education and software are just as important as manufacturing, but fails to mention that manufacturing has received less attention in recent decades. In so doing he is discounting his own profession of concern for the high rate of joblessness in the U.S., and the need for a new focus on manufacturing in the U.S. to reverse that trend. By saying that imports are not a sign of failure but can raise standards of living, and leaving it at that, Slaughter does not acknowledge that consumer debt that US consumers have taken on in the process certainly affects future prospects for the US economy. And he makes no mention of the need for rebalancing the world economy, which is exactly how free trade should work ideally. Countries that have high imports export more to rebalance the world trading system, as currency valuations are allowed to adjust makig their exports more attractive. By not taking into account the realities of free trade, and the need for practical measures to rebalance without policy induced distortions by state run economies, Slaughter ignores the idea of free trade that works as it should and for all countries. The irony is that Immelt's own committment to jobs and competitiveness has been questioned in online blogs and most recently by an editorial in the Wall Street Journal on January 26, 2011, titled "The Misallocators." That editorial refers to the outsize role of GE Capital in GE's earnings during the past decade, and the lack of credibility of a focus on competitiveness and jobs that this creates for GE. It mentions the loss of 34,000 GE jobs in the US during the last decade. ...

LyrArc Article Gist
Queen Elizabeth was more comfortable with Labour prime ministers than Conservatives. This included Harold Wilson of Labour. The Queen had a prickly relationship with Margaret Thatcher. King Charles  has strong views on social issues such as housing and migration, and on climate change. Charles 75 years and Keir Starmer 61 years are shown here to have similar views on social issues in Britain. If Starmer wins the election they will meet weekly, and have much in common. The royal historian says there is a meeting of minds in terms of the social issues at stake, the plight of the people of Britain. The national anthem was played at the beginning of the Labour Conference in 2022. Sir Keir Starmer was made Queen's Counsel in 2004 and was knighted in 2014 for his services in public prosecutions. 

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Italy and France have implemented vaccine passes. The health pass in France has helped to reverse the trend of waning vaccinations. In the two weeks after the vaccine health pass was made mandatory in France for cafes, transport and restaurants, the vaccinations for second dose increased by 6 million and the vaccination for first dose increased by 5 million. In Italy vaccinations increased by 200%.

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Pictures and stories from the war front in the Kursk region of Russia as Ukraine pushes into Russian territory for 20-25 miles. Kursk a city of 500,000 is 70 miles from the border. The neighboring region of Belgorod and Voronezh are also part of the war zone. This was a place where the Red Army pushed back the Germans in 1943 when Ukrainians and Russians fought side by side.

LyrArc Article Gist
Just 1% over 10 million pounds of wealth would raise 42 billion pounds from 22,000 individuals and take pressure off the National Health Service in Britain. The capital gains made during the period of Covid has further distorted incomes by hollowing out blue collar workers and increasing incomes of remote white collar workers during the pandemic. The wealth tax would simply reverse this additional element that added to the increasing inequality of the last 2 decades during the pandemic. It would add to general wellbeing in Britain without affecting the individual ability and innovation. In fst by diverting some of the funds to education it could enhance the ability to innovate and take risks in business.

LyrArc Article Gist
Most of the early reporting on the 1MDB scandal and leakage of state funds was done by the WSJ. The final verdict of the Federal Court is shown here. The WSJ merits the gratitude of hundreds of millions of people in South Asia and South East Asia, in Africa and Latin America for its work on 1MDB, and shows at its heart America's people cares about their future. Malaysian government under Mahathir Mohammad revealed recently Malaysian debt was $251 billion or 1 trillion ringitt. How will this be repaid? The future of countries in Africa or Asia can be wiped out in this way with unsustainable debt through such leakage.

LyrArc Article Gist
 Roger Stone, an adviser to president Trump, is indicted in the Mueller investigation for his connections to the Wikileaks campaign to discredit Democratic Party leaders including Mr. Podesta and Hillary Rodham Clinton. Hacked Emails of the two leaders were hacked and passed onto Wikileaks Julian Assange, who then released sensitive emails to the media in batches at critical moments in the election campaign of 2016.

This report provides details of the emails showing contacts between Roger Stone and Wikileaks, with Stone's contacts with Bannon, who headed the Trump campaign. Stone was arrested in Fort Lauderdale on July 25, 2019, and released on bail.

This shows how the campaign unfolded and how Wikileaks leaked emails damaged the Democrats campaign effort by damaging the credibility of Hillary Rodham Clinton, referred to as HRH in the emails and of Mr. Podesta, leading to the questions about the Clinton Foundation.

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It has to be said that both McCarthy and Biden have shown patient leadership and an optimism about America in getting to an agreement on spending and the debt ceiling in May 2023. They are not taking chances as they sell the deal they made to their party in Congress. Biden feels confident that the agreement will make its way to his desk to be signed and he had spoken to McCarthy on Sunday afternoon "to make sure that all the T's are crossed and the I's are dotted." McCarthy says "more than 95% of those in the Conference were very excited. We are the first Congress to cut voter for cutting spending year after year." The deal basically freezes federal spending at 2023 levels till 2025 and allows some increase in defense spending and veterans benefits. Dusty Johnson Republican of South Dakota says Republicans will overwhelmingly support it. He says not much was expected from the Freedom Caucus whose support was not expected. Senator Mike Lee of Utah and Rand Paul of Kentucky do not support it, Lindsey Graham of South Carolina thinks there is not enough money for the Navy in the agreement. ...

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Marc Thiessen in The Washington Post says to halt the problems at the border when last week migrant encounters hit 12,000 a day Democrats need to work with Republicans to get the votes in the Senate and House for needed legislation. This means losing some votes from factions within the Republican and Democratic parties and still getting it passed. It would be good for the country and good for Biden, says Thiessen. He says to get some idea on what the 12,000 figure means even 1000 migrants was a high number that would overwhelm the system in 2019. He cites John Fetterman, Senator from Pennsylvania, who says that honestly this happening at the border is astonishing, essentially seeing Pittsburgh at the border.

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A makeover in a state that relied a lot on government services and high taxes to fund these services run by the state. A shift away from this tax funded government run model of services to getting private initiative involved, letting private investors take risks and try out new ideas in education, public services. Sweden has also moved away from reliance on laptops and ipads, on electronic screens for early and middle school education, preferring an older style of binders and writing on paper. Having realized that the electronic screen had not delivered on reading comprehension the way books and reading hard cover books did, and realizing that writing skills come from taking a pen and writing on real paper, rewriting and rewriting. Realizing that education does not require fancy tools, basically good teachers, good books and a basic drive to learn, a curiosity of mind and dedication to putting in the work required. This is something that is also part of Lyrarc's Movement of Global Literacy with Sweden at the forefront in trying out new ideas, and dropping failed ones. ...

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McKinnon argues that China should be very careful not to appreciate the yuan beyond the interest rate differential between the two countries, which is related to their inflation rates. If inflation comes down in the U.S. even a 3% appreciation could lead to deflation in China. See the related article by Feldstein in this group which looks at the need for U.S. to keep business investment strong and boost exports to compensate for a housing price collapse related slowdown in the US. How this will playout and how the two situations will be managed so as to create desirable outcomes and avoid risks of slowdown in both countries is uncertain.

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Peter Navarro Trade Adviser to US president DJT says the problem with Germany and Japan is about finished cars, but also about their strategic control of powertrain manufacturing − the engine, transmission and drivetrain components that are at the heart  of a vehicle. These components not only give the highest profit margins, they provide the highest paying manufacturing jobs. The result of their domination of engines as only 20% of the engines in cars made in the US are made in America, the rest 80% are imported from Germany, Austria, Japan and South Korea, is that the US is consigned to doing low wage labor assembly in this script written by foreign manufacturers. He calls this the gut punch from VW, Benz and BMW, from Toyota, Subaru and Hyundai.  Navarro says- "This isn’t protectionism. It’s restoration. Restoration of full-spectrum manufacturing, from bolt to body. Restoration of high-wage, high-skill jobs. And restoration of America’s arsenal of democracy. Let the restoration begin."   ...

LyrArc Article Gist
Pew Research 2026 shows Americans more optimistic about use of AI for medicine, healthcare, and for data analysis, and worry about loss of creative thinking and meaningful relationships. Nowhere does Pew ask the real question to the public- "Do you support the diversion of trillions of dollars that would rebuild America's broken infrastructure built in the 1930's and 1960's, and the reindustrialization of America that creates millions of jobs, do you support the diversion of these trillions of dollars that creates these jobs and a better quality of life for Americans, divert it to hyperscale investments of trillions in AI technologies?" Already the majority of Americans simply asked the question about AI in general are opposed. When this question is put about the waste of trillions of dollars desperately needed for quality of life and standards of living, an overwhelming majority of Americans regardless of politics, class and gender are likely to say NO. ...

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President Biden and Russian president Putin held a two hour virtual meeting on December 7, to discuss Ukraine. Biden stated that the US would take action to support defense arrangements in Ukraine, Poland, Romania, and other Eastern European countries, if Russia invaded Ukraine. He urged Russia to return to diplomatic talks to settle differences over Ukraine. US National Security Adviser Jake Sullivan described the virtual meeting in this way- "There was a lot of give and take. No finger wagging. But the president was crystal clear about where the United States stands on all of these issues." 

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Harris-Walz campaign in Arizona and Nevada August 10, 2024. Harris gains the support of the Culinary Workers union with 60,000 members. 

League of United Latin American Citizens (Lulac), the oldest Latino civil rights group, which usually stays neutral stepped in to endorse the Democratic ticket.

“The politics of hate-mongering and scapegoating Latinos and immigrants must be stopped,” said Domingo Garcia, chairman of Lulac Adelante Pac, in a statement.

“Latinos understand how much is at stake in this election, for not only our community but our democracy.”

LyrArc Article Gist
The average for tens of thousands of companies in the US is not in the 30's, it is 42 years. Taiwan Semiconductor was started by Morris Chang in his 50's. The reason for this is that startups need extensive experience, some of that experience comes from industry and companies the founders have worked with. With a deep knowledge of the field thay are in these founders can apply this knowledge to create new companies and discover new opportunities.

Even in government this is the case. In the recent appointments nominees selected by the incoming Republican DJT administration for Health and Human Services, Interior Secretary, Department of Energy, Homeland Security, had decades of experience in their field, some were governors of energy rich states. Another characteristic that comes with experience is the energy and aptitude for the job that they can bring. 

LyrArc Article Gist
The large Iranian missile attack on Israel on April 13th 2024 was expelled with American, UK and Jordan's help. It cost about $1 billion in antimissile systems. The US does not seek an expansion of the war. The events show how without a clear policy on non escalation with the US taking leadership- how without this events could spin out of control in unanticipated ways. And the need for priority to be given to rebuilding after the pandemic, not conflict that is driven in a random manner when most of the largest countries on every continent are committed to peaceful development to improve standard of living of their people- US and EU, China and India, Brazil and Mexico, African nations, and most other nations in Asia and Latin America. It is for Biden and Scholz/Macron, Xi and Modi, to make this happen.

LyrArc Article Gist
Jess Phillips,the Labour MP for Birmingham Yardley writes about New Zealand prime minister Jacinda Ardern's experience of being knackered- of burnout and having no gas left in the tank. She says women worry about our families, ourselves, and society's expectations, so that it is not surprising when this leads to burnout. It is worse for women in politics, she says, with the constant threat of abuse that contributes to burnout. She calls for the building of support structures in society that will criminalize the perpetrators of this abusive behaviour, and those who make profits from spreading it.

LyrArc Article Gist
WSJ talks to Adam Grant, Prof. of Organizational Psychology at Wharton School of Business, on the importance of experimenting with different ideas. For every decision A and implementing it one forgets that there were other decisions that could have been made B, C, D or E, and each one offered new ways to experiment and try out new ideas. Grant is author of the book-" Think Again - The Power of Knowing What You Don't Know." Here he talks about how some CEO's used the pandemic (a problem) as an opportunity to experiment with new ideas on work to create productive happier workplaces. Others were too afraid to experiment. Grant says research data shows people are more likely to stay in a hybrid structure, because it gives them flexibility. From the productive workplace perspective this means people have to develop new skills and new muscle in a kind of experiment. This is what he says many CEO's are fearful to try out, now that they are reverting to the old workplace in the office-to what they know.  His biggest fear is that the experimentation that covid brought to us will stop. He sees four days of focused work a week or six hours of concentration in work a day, as way better than 8 hours of distracted work or five unmotivated days. Not just personal bonds are necessary says Grant, clear roles and goals are needed. And people need to be excited about what they are doing, which is possible he has found when they know the work has meaning for people who they are serving. ...

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Canada's pitch to the US before tough negotiations with Jamieson Greer to preserve Canada's automobile industry, its aluminium industry, dairy industry with benefits gained in the past. US had also put forward its pitch for 82% North American content and 50% of it from the US for all automobiles sold in the US. Carney takes a positive approach presenting Canada as a strong partner that would Make America Great Again by offering its vast mineral resources, and its resources of oil and LNG. It says LNG will double from 2030 to 2040 from 50 million to 100 million tonnes of LNG annually. 56 critical minerals agreements with $18 billion in investment, doubling the electricity grid for lowest cost power and second lowest emission in OECD countries. Canada is an anomaly in trade says Sir Ivor Jennings in his book on the British Commonwealth. Its trade east to west is an anomaly when if it was truly apart of the North American economic region it would trade north to south. This is the result of Montgomery's failure to take Quebec during the War of Independence as Washington planned the war with Britain. For instance Ontario would trade with Vermont and New Hampshire and New York near its borders. Instead the dairy industry in Canada operates in competition with the US and sends product east to west. Washington and Oregon are not trading normally with neighbors British Columbia instead shipping product back to eastern Canada. For years the US allowed Canada and Mexico benefits in trade that hurt is own auto industry. Jamieson Greer is expected to change this so that US manufacturing can compete with China and European Union on a level playing field. ...

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At a joint press conference with French, Romanian and Moldovan foreign ministers German Foreign Minister Annalena Baerbock announces 695 million euros of aid to Moldova as it deals with refugees from Ukraine. Out of about 4.2 million refugees that fled Ukraine 2.4 million went to Poland, and 1.8 million refugees to Romania, Moldova and Hungary. Moldova is one of the poorest countries in the region and is struggling to cope with the refugee influx which is the highest per capita refugees. "We have your back," Baerbock told the Moldovan prime minister Natalia Gavrilita. It's just the "kick off point for a long term continuous support platform for Moldova," said Baerbock. Gavrilita formally signed an application for accession of Moldova to the European Union shortly after the Russian invasion.

Moldova a country with 2.7 million people is dealing with an influx of 400,000 refugees. About 100,000 have decided to stay.

LyrArc Article Gist
Nigel Farage of Reform surges ahead in the UK. With Tories under Kemi Badenoch uncertain about the future. Labour under Keir Starmer tells Whitehall civil servants to focus attention on delivering results that help improve the lives of the people and to bring results that are visible and make a difference to people.

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The conditions in the Mexican Navy and Army and why the army and navy are failing in the war with drug cartels. They are woefully underpaid, with few benefits, and poorly equiped, and in some situations lacking the basic equipment in acorrupt system. THis is an account of a Mexican military officer's wife.