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Geithner in written testimony to the Senate Finance Committee, stated that "President Obama - backed by the conclusions of a broad range of economists- believes that China is manipulating its currency." What is noteworthy is that experts are generally in agreement that something should be done about this in cooperative fashion, from Obama's economic team, Obama's own views on this, The National Association of Maufacturers, Labor and so on. The trade deficit with China has continued at high levels even with the current economic slowdown, so this issue remains as one that the Bush administration never really addressed. Simon Johnson, a MIT Professor, and former IMF Chief economist says that even the IMF has not addressed it, and that the Obama administration needs to call China to account. He says this could lead to a spat with China, and if the US does not back down to a row. The concern has been that China would not buy up Treasury debt the way it has in the past, at the same time the question is whether there is some point where the deficit is so large and the US so dependent on foreign buyers of Treasury debt, that it needs to be addressed on a number of levels. Including addressing currency and fair trade issues, a more rational balanced consumption of everything from oil to goods from lowcost Asian countries, to reduce the toll on the overextended American consumer and on the extent of US borrowing needed. From China's perspective there may also be the same concern about export led growth, which may come to be seen as undependable anyway, because with or without some currency advantage the overextended US consumer is not buying anyway, holding off on purchases of everying from cars to flatscreen televisions. With growth at 6.8% in 4th quarter 2008, according to the Chinese Government Statistics Bureau, and expected to drop to 5% in 2009, the export growth model is no longer the panacea for China's unemployed as it once was at 12-13% growth rates in 2006-2007. In fact it may now look to be a better wiser policy if China had increased the value of its currency even more than its slow gradual approach to slow the growth rate from 12-13% to a more sustainable 9-10%, and lower American imports and lower the American trade deficit. Part of the problem in China was the difficulty of applying any sort of brakes once the local governments were set free to expand as much as they could, and prevented any controls from being effective. Steel production continued to grow even after there was evidence of large overcapacity, and government direction failed. Buy some time to shift to domestic consumption based recovery, is what the Chinese policy may be now. Indications of this are evident with its grappling at the issues it has not tackled like giving ownership of land to farmers in rural areas, and to building a healthcare system for the country, both of which are part of a host of issues to shift to domestic consumption based recovery. So unlike the way the media and some experts portray it its not a tough line that the US is taking against Chinese unwillingness. China may want to cooperate.That may be true if China was missing out on 10-13% growth rates, but these were unsustainable anyway and bad policy. At growth rates below 5% as projected by analysts China may want to jettison the export model of growth and build an alternative one. In that case as China shifts to domestic consumption, currency adjustments may be seen quite differently than they were in the past....

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BBC's Mark Tullly reflects on the period of coverage from 1962-1994 of South Asia. He says of Indira Gandhi that she took the democratic process out of the Indian National Congress party, and set up her sons as future leaders that was undemocratic. Here he reflects on that period in an intervew with the BBC after he left the BBC.  He has deep connections to the Indian period after 1800 as his great grand father on his mothers side was around 1840 in a part of Uttar Pradesh where British planters had farmers plant opium that would later be bought by planters for export. This coincides with the period when Britain in Hong Kong traded in opium as part of British trading in the emerging colonial culture British Empire. There is mixed legacy for Britain in India and China. The history of the Opium Wars in the 1850's and opening up of colonial ports ended with the 1900's revolution and the emergence of the CCP in China by 1950. In India the legacy was mixed bringing together this part of Asia into a new nation and bringing parliamentary traditions of Britain that provided the basis for good governance.  Tully is a softspoken thoughtful Englishman who revolted against British classical education in his youth and studied history and religion at Cambridge, made friends with the future bishops of Canterbury and Lincoln at Cambridge. He is not the Englishman of the Empire as his fondest memories are of the servants verandahs on the bungalows of Britishers and the smoke from their quarters, and the language. So it is a thoughtful view that he gives of the undemocratic nature of Indira Gandhi and mismanagement of the economy that could have changed if India had gone in a different direction under other leaders in the the 1990's. Why is this significant? China's modernization drive started in the 1990's. India's by the undemocratic nature and mismanagement under Indira Gandhi did not start its modernization till 2010, about 20 years after China, opening up a huge gap that is only now being corrected leading to problems for world security, US security, European security and Indian security. And delaying the aspirations of development of 1.4 billion people for 2 decades. Vikshit Bharat cannot come fast enough for both Merz in Germany and Leyen at the European Union, who last week and this week visit Ahmedabad and India for the Kite festival and for Republic Day 2026. ...

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From north east Indiana and Indiana University SVB CEO Becker works his way up to a bank in Detroit with offices in California, and joins SVB in his twenties. He opened SVB's office in Boulder in 1996 and became president in 2008. Two things made SVB different. It seemed like the 2008 crisis had never happened. The management at the company Becker, Beck, and another executive Descheneaux hired from Bancwest, acted more like tech entrepreneurs and much less like bankers. They seemed to have mastered the way of optimistic talk to tech entrepreneurs, the language the culture, and did not share the same grasp of the economic environment of others who had weathered the 2008 crisis. For most of 2021 the company did not have a risk officer, according to the WSJ. And did not see the aspects of duration risk in having assets invested in long term Treasury's when interest rates were increased by the Fed rapidly to fight inflation decreasing the value of bonds. Startups and SVB management in their optimism both ignored the risk of not having the backing of FDIC insurance as insurance is limited to $250,000 in deposits, and most of the SVB's deposits were much larger. The US government wary of criticism of a bailout insists the FDIC backing provided to prevent systemic risk will not cost the taxpayers as it will come from a special assessment on banks. Nothing better explains the collapse than a look at the graphs of SVB's deposits in this WSJ report, in 2019 deposits and financial assets increase at about 50%, at about 100% doubling in 2020. Stock performance mirrored this.  By 2020 the supply chain disruptions were real and inflation was taking off, the Fed under Jay Powell was taking up the fight against inflation with sharp rise in interest rates. SVB did not grasp the seriousness of the situation. Venture capital gleaned the risks as they mounted and a bank run with withdrawals of as much of $42 billion led to the collapse.   ...

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The effects of drought on the Colorado river and the dams in the arid west of the US which support 40 million people. This is also part of the fastest growing region in the US. The seven states along the river must negotiate major cuts in water use by mid-August or the federal government has to step in an make the cuts, says this NYT report. Years of overuse of water and climate change have led to this situation.  Lake Mead the US's largest water reservoir is two thirds empty. It is fed by the Colorado river. The upstream states or Upper basin states are Colorado, Wyoming, New Mexico, Utah. The downstream states or Lower Basin states are Nevada, California, and Arizona. Downstream and upstream states have to figure out how the water cuts will be made. Agriculture use makes up 70-80% of the water use. Then there are the sprawling cities such as Los Angeles and Denver and Salt Lake City. Affected are the Imperial Irrigation District in Southern California, a major agricultural area. Las Vegas has come up with solutions for its 1.6 miillion metro area population by conserving water and staying under its 1.8% of the river allocation even as the population grows. Converting lawns and turf to desert and growing only arid zone vegetation to conserve water is being applied. This is a reality check for climate change and a reversal from the earlier effort in the 1930's to impose brute will on the landscape to build huge sprawling cities and agriculture zones. Now all that has to go into adapting to the landscape and fitting into it, limiting the use of water, recycling it, and conserving water in every way possible. It means adapting in every way, not acting in crisis solution mode but shifting to a whole new way of adapting to the environment that should have been there in the first place with some respect for Nature. ...

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Between 2016 and 2019 Rocky Mountain National Park in Colorado had 40% increase in visitors. It has only 4 toilets in at Longs Peak 14,000 feet high, a frequently visited spot by hikers, each miles apart. The park is itself 265,000 acres and with Denali, Alaska, Mt. Rainier, Washington state, one of the top frequently visited park areas in America. Some of the worst work in the world is getting the waste in these older abandoned toilets which don't work anymore out of there as this can breed some of the bacteria that could harm people, animals and vegetation.  TecToilet at $4000 a piece has provided a temporary solution being used at some parks. This is to separate the urine from the waste which proves to be a breeding ground for bacteria, and sent the waste separately to a deposit container, which is taken out by helicopter. This solution is very costly. The parks not well funded and having faced cutbacks from a bad staffing situation to begin with end up being behind on needed facilities and maintenance. The 3 decade waste of capital led by Silicon Valley and Wall Street, and cheered by official media, has to take responsibility for this deplorable and absolutely crazy situation in America. More people are visiting national parks and national forests, and open backcountry in the mountains, especially after the pandemic, yet the jewels of America have to justify essential funding?  India is tackling the situation of toilets in a big way for sanitation in the country after centuries of neglect. Millions of toilets are being built at low cost. What is needed is for Indian engineers to come up with a design for India's own national parks, including the parks in the Himalayan regions, which have the same problems facing the national parks of America for toilet waste. Other countries in Europe need to be researched for solutions that may already exist and new designs made at lower cost in India that can tackle the decontamination and disposal of the waste on site without the cost of helicopters taking it out.      ...

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This report from Taiwan in DW.com points out that German opinion has changed significantly in recent years and is not reflected in Merkel policies. With a change in government to Greens, SPD coalition under Scholz of the SPD and Annalena Baerbock of Greens, German policy towards Taiwan is likely to change. Scholz is seen as having different views from Merkel and is likely to reflect public opinion more closely which is reflected in polls that show 58% of Germans not in favor of Merkel's China policy which moves away from the US. Germany also needs to consider NATO alliance and relationship with US which will be difficult with Merkel policies now that president Biden has made Indo-Pacific  with Aukus and Quad alliances critical to his administration. France has moved closer to India, which will mean pressures from the US and France and German public opinion for Scholz to  come closer to US and France in his policies. A sense that the Merkel period had serious issues and was "grotesquely" backward in childcare, education, digital modernization, infrastructure, climate change, as one German expert puts it, also will make SPD and Greens reconsider Merkel's policies.  After the election there could be a fuller reassessment of the Merkel years and further change in German public opinion as Germans see how much was lost in the later Merkel years in the lack of much needed change inside Germany in addressing the social and economic problems. Merkel may also be seen as having a sensitive relationship with the Biden administration which the SPD and Greens in their different orientation may not see in the same way. Biden's families and workers plan has much that Germans are looking for from the SPD and the Greens and on a scale of $3.5 trillion that the SPD and Greens may see as changing everything.  Population of India combined with South East Asia, Australia and Japan is also about twice that of China, which Germany will feel sets the path for a new policy that reflects a different Europe and a different Asia for the future. ...

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Politico magazine says wealth inequality is a worse situation than a country's income inequality. By this measure the situation has deteriorated badly in the U.S. It cites a study by Thomas Piketty of France with Saez and Zucman, showing that a shocking 75% of household wealth, and 97% of capital income-income generated from dividends, interest and capital gains- is concentrated in the top 10% of households in America. More shocking it says is another study showing that nearly 50% of American households could not come up with $400 in an emergency to meet and unexpected expense, while a tiny fraction controls trillions of dollars in assets. Why is this important? Beyond the obvious short term immediate needs there is the need to build a plan for the future, to be resilient in the face of a job loss or major illness, to seek higher education for job retraining,  to save for a home to retire.  In America the history shows that for most of its history since the founding fathers, in the 1750's the situation was that of a rising tide for all sections of society interrupted by the breakdown during post tech boom failures in the 1890's and 1930's. This is embodied in the Declaration of Independence itself the perception of this as something to be taken for granted- "we hold these truths to be self-evident, that all men were created equal and endowed by their creator with certain inalienable rights ..." One proposal is for a universal income. Others are for employees to have ownership in the business that they work for and contribute their skills. Setting up Permanent Funds that pay dividends to all citizens of a state. Some of these proposals are being considered in Britain by the Labour Party, and Democrats in the U.S. as they forge ways to tackle the rising inequality in Britain after a decade of austerity cuts, and in the U.S. after the tech boom and regional inequality.  ...

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Indian prime minister Modi shown in a meeting together with Biden of the US, Fumio Kishida of Japan and Albanese of Australia at the Izumi Gallery in Tokyo during the announcement of the joint efforts for launching and promoting the Indo-Pacific Economic Framework for Prosperity. The IPEF led by the US will have four pillars of trade and supply chain resiliency, clean energy and climate change action, taxes to promote investment in infrastructure, and good governance. Seven of 10 members of ASEAN have joined including Indonesia. India is a key partner of US and Japan for the new IPEF economic alliance. Prime Minister Modi of India says about IPEF- "India will work together with its IPEF partners to build an inclusive and flexible Indo-Pacific Economic Framework. I believe that resilient supply chains must be based on three pillar foundation of trust, transparency and timeliness, and I am sure that this framework will make these pillars strong and lead to prosperity, peace and prosperity in the Indo-Pacific region." Attracting large investments in India and other reliable partners in a new supply chain that shifts out of China are part of the Biden plan working together with Japan and South Korea. Investments directly into the US are also part of the same plan. Gina Raimondo US Commerce Minister says- "I would say, especially as businesses are beginning to increasingly look for alternatives to China, the countries in the Indo-Pacific Framework will be more reliable partners for US businesses." US National Security Advisor Jake Sullivan says the IPEF is intended to boost US manufacturing. By boosting US manufacturing and technological advancement with investments inside the US that directly benefit American workers and families the IPEF will serve the US and the free world in ways that will shape the coming decades to 2030 and 2040. With investments in the US will come investments in India as a reliable manufacturing partner to replace China by 2030 is envisioned by Jake Sullivan and president Biden. ...

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For the first time the U.S. focuses on the huge trade deficit with China in a serious way. The trade negotiating team led by Robert Lighthizer has set forth its negotiating terms.  1. China must reduce its trade deficit with the U.S. by $100 billion in the first 12 months. In the next 12 months it must reduce its deficit by another $100 billion. In 2 years the trade deficit the U.S. has with China must come down by $200 billion. The issue is no longer just the tariffs on steel, it is about the core issue of balance in  trade. 2. The U.S. says subsidies to state industries in the "Made in China 2025" program must stop. Here the focus is on gaining an unfair technological advantage with a combination of U.S. technology imports and subsidies to state advanced manufacturing industries to erode over time the U.S. technological lead.  3.  China is expected to cut its tariffs by about two thirds on imported products so that the tariffs match that of the U.S. This is the first serious negotiation the U.S. has conducted with China on the core issue of the trade surplus which is growing with a stronger dollar not declining. The surplus approaches $1 billion each day for about $365 billion a year, unsustainable from any perspective. The vital issue of the erosion of the U.S. technological advantage under the Made in China 2025 has turned this issue into one in which the U.S. is unlikely to back down. Especially now that Mr. Lighthizer is leading the  negotiations and has the confidence of the president of the U.S. Lighthizer is a veteran of negotiations from an earlier period -under the Reagan administration in a similar situation with another national competitor- then it was the Japanese. A relentless negotiator as the U.S. seeks to reverse a trade imbalance of stupendous proportions neglected by previous administrations.           ...

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A Trump-Vance nomination with its huge tariffs inside a Republican shell with its preference for tax cuts is with a large degree of certainty likely to put America further behind China, slipping even further by a decade. And slipping in renewable energy and in meeting the aspirations of ordinary Americans. Most of the public does not realize that Trump-Vance 60% tariffs and Republican preference for tax cuts over infrastructure spending would create inflation and lack of growth in a Trump-Vance second term. Things would get worse because of the contradictions existing in the choice of tariff preferring Trump in a Republican party that sees tax cuts not infrastructure spending -even when desperately needed- as the answer to every economic problem. Without a clear policy of making the trillion dollar investments in the US economy, in manufacturing, in renewable energy, in chips and science, as it has under Biden the US under Trump-Vance policies would have two serious problems- first it would revive inflation. 60% tariffs on Chinese imports and 10% tariffs on other nations proposed by Trump-Vance would increase inflation. In the absence of the infrastructure investment that Biden has put in place it would create both a lack of growth for the jobs missing that come from infrastructure that is badly needed in a aging dilapidated infrastructure economy, and the inflation that the high tariffs would engineer. The benefits would not be great if China chooses to find other ways to conduct business and continues to keep its currency at levels that promote its exports. Even today Chinese products enter the US through other countries or when China builds factories in the US as Japan has done. The Republican aversion to tackling Chinese industrial challenges in the same way that China does by actively supporting American manufacturers would give China another decade of advantage as America slips even further behind in chips, science and manufacturing. This is the real problem in mixing Trump-Vance to the Republican philosophies on the economy which are not right for this point in time whatever their merits may have been in the 1980's when America was the industrial leader in the world.   ...

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Under Mette Frederiksen immigration which reached 21,000 in 2015 was down to a little over 1000 a year. She is a strong fighter for workers and families and labor rights and yet tough on illegal immigration. She has been proven right about this as Britain and the US under Biden are seeing illegal immigration as a threat to workers and labour, are seeing the risks of distraction from illegal immigration doing a serious disservice to workers and families by making it hard to fight for workers and families on wages, cost of living and other issues.  Even with a strong record of fighting for workers and families, Frederiksen was one of the first European leaders to see the dangers of illegal immigration to society. It gave parts of the political spectrum that had no interest all along in workers and families doing well, an issue to run on that would come to cause grave harm to workers and families. This turned out to be the error of Angela Merkel a CDU leader brought up in Communist East Germany, who had no idea of the risks of her approach for open immigration. As Merkel let this chapter unfold it created fissures in Europe, with Tories and Nigel Farage taking Britain out of the EU and laying waste to its economy for 5 years till Labour's Starmer adopted a tough immigration policy and became prime minister in 2024. That danger then spread to the US in 2016 which also suffered as Republicans and Trump did the same in the US around rhetoric but without serious action on immigration till the Lankford- Biden legislation.  That bill would have closed the border with Mexico and ended immigration as an issue forever if passed into law in December 2023, as Senator Lankford says would have happened. Ending immigration as an issue forever alongside foreign wars as an issue, so that a concentrated effort could be made on improving badly damaged lives of workers and families. And on rebuilding badly damaged manufacturing in the US, rebuilding collapsing infrastructure, and competing with better education and healthcare with the large Asian countries China, Japan/ South Korea, India. ...

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Bob Knoll of the NY Times reviews the Buick Lucerne at the time of New York Auto Show 2006. He says the Buick Lucerne has gone a long way in giving GM a fresh modern look. It is based on the upscale architecture of the Cadillac DTS. Quality ratings by J.D. Powers and Consumer Reports are a strong point for Buick. 1. What did GM fix that Toyota had? Precision down to the little details, with manufacturing clearances of just 0.5 millimeters between adjacent surfaces, and tightly fitting body panels. 2. Sportier contemporary look to appeal to younger demographics. 3. Bringing in new technology thats handy. Wipers that come on automatically when it rains, heated washer fluid, remote-start feature for winter mornings, and so on. 4. Compared to its main competitor, the Toyota Avalon, it stands up well, though with a slightly lower fuel economy.

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BUSH AND E85- ITS UPTO MARKET ECONOMICS, NO DIRECT ACTION AS IN BRAZIL. U.S. oil companies are skeptical about E85 and are not investing in pumps and filling stations. Only 800 of 17,000 gasoline filling stations in the U.S. have ethanol. Unless required to do so station owners are not likely to invest thousands of dollars in ethanol pumps. In Brazil the government took direct action to promote ethanol use, giving sugar cane companies cut rate loans and guaranteed prices for the product, and it required state run Petrobras to make ethanol available at filling stations. The cost auto companies say in this article is only about $100 extra per vehicle for extra anticorrosive materials and computer sensors for ethanol capable cars. With market economics and no direct government action the picture is fuzzy how the whole E85 project is going to come out.

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Sorkin discusses the speech made by Hillary Clinton at NYU's Stern School of Business on her capital gains tax plan to encourage long term investing by giving the current tax break of 23.8% tax on capital gains for the highest tax bracket only in year 6 following the investment. Black Rock CEO Fink is one of the supporters of delaying the current capital gains tax - his proposal was to treat capital gains favorably only after 3 years, and then decrease the tax rate on a sliding scale for each year following. Sorkin says the Clinton and Fink proposals come at a time when a useful discussion can take place on this issue to provide the right kind of incentives to investors, CEO's and their boards of directors. Hillary Clinton was clear about her proposal's intent- to support "outside investors who want ot build companies," and to disincentivize "cut-and-run shareholders."

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Krauthammer quotes Congressional Budget Office Director, Elmendorf, who said "we don't estimate speeches," when Elmendorf was asked about President Obama's April 13 debt plan speech. President Obama has failed to come up with specific ideas for debt reduction and not taken up any position on debt reduction, including removing tax expenditures as recommended by the President's Bowles-Simpson Commission report. Krauthammer says the President is using the discussion on debt reduction and the debt talks as a way to move forward with his reelection campaign. This President Obama has done by not putting forward any new ideas of his own or backing the ideas of the Bowles -Simpson Commission, and by putting Republicans on the defensive for coming up with any new ideas which may be unpopular. He calls the President's February 2011 efforts on debt issues a farce, and the April 2011 efforts empty, lacking any substantial specifics.

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Rates are increasing in the $4 trillion repurchase agreement market. The repurchase agreement market or repos market is the main source of short term funding for firms in the financial markets. Borrowers put up Treasury securities as collateral. The difference beween the value of the collateral and the cash loan amount is known as the "haircut." The current collateral requirement is $102 of Treasurys for $100 in cash loan. If the U.S. is downgraded to AA the collateral could go up to $103 or higher. This would lead to firms coming up with more Treasury securities for loans. The rate for overnight transactions also goes up. The rate was up form 0.01 % to 0.1% in the last week. The result could be dislocation in financial markets as firms have to come up with more collateral and pay higher repo rates, and some firms prefer to hold cash.

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Richard Barley points out that Italy has some breathing room even as the ten year yields on Italian debt reaches 6.15%, up 1.5 percentage points in 2011. Existing Italian debt has an interest rate of 4% and an average maturity of 7 years, according to Morgan Stanley. This means higher interest rates on new debt will take some time to have a serious impact. Fitch's estimates are that if 10 year yields on Italian debt went up to 7%, interest payments would go up to 6.1% of GDP by 2015 from 4.8% of GDP. This gives Italy some time to come up with solutions for competitiveness and growth issues. Italy's growth rate was only 0.1% for the 1st quarter of 2011, and debt is 119% of GDP. Italy also has a primary budget surplus which puts it in a better situation than other southern European economies.

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Rajneesh Goel, Bangalore's chief civil servant, says the city never followed scientific landfill practices. Instead as Bangalore expanded with new business campuses for Infosys and other companies, the garbage was trucked out to sites with little planning and no interest on the part of companies on where this was ending up. Most of the landfill sites outside the city are now filled and the city is running out of places to dump the garbage. About 4000 tons of garbage needs disposal every day, over a millon tons a year now that the city is no longer the smaller garden city it used to be, a place where people looked to go for retirement years in the early post 1947 period. A new effort is being made in crisis conditions by NGO's and business to come up with better disposal practices that are good for the environmental air quality and water quality.

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Of the 27 nations represented at the EU summit meeting on January 30, 2012, all except Britain and the Czech Republic agreed to the new measures for budgetary discipline. The new fiscal compact will come into effect after 12 eurozone countries have ratified the compact. This prevents one or two countries holding up the agreement. This provides the Merkel government in Germany an agreement on concrete measures for budgetary discipline- evidence of specific action to dissenters inside the Christian Democratic party and in German public opinion- which would enable it to support efforts by the ECB, the IMF and the EU to address the crisis, including the funding of the European Financial Stability Fund. The text of the fiscal compact makes it harder to block sanctions against countries that fail to impose budgetary discipline, while at the same time making allowance for countries with excessive debt such as Italy.

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Ireland's government finally accepts a three year EU bailout package for its banks and public finances of 80 billion euros or $110 billion. Germany's Finance Minister Schauble said that Ireland "will have to meet strict conditions." Ireland's 2 largest banks, Bank of Ireland and Allied Irish, will be forced to downsize, and will have to unload "nonessential assets" such as overseas operations. The IMF will provide about one-third of the loans, the European Financial Stability Facility with its 440 billon euro facility will have the largest part, and the rest of the funds will come from bilateral loans from the UK and Sweden and the EU Commission. The UK's portion is about 7 billon euros. Germany's finance minister, Schauble, told TV brodcaster ZDF, that "one can't be certain this will relieve pressure on other struggling euro members." He was referring to Portugal and Spain.

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This personal portraiture of Sarkozy reflects Sarkozy as a man, but it says little about some changes he brought, which could be regarded as his singular achievements. One is his courage in discontinuing old colonial policy in Africa and the Middle East. Sarkozy took the initiative in Libya and Tunisia, and Libya owes much to Sarkozy. Sarkozy also worked to build closer European ties, something he came under much criticism, such as his ties to chancellor Merkel. Pictures of Sarkozy and Merkel on the beach in Deauville, France, come to mind. This is a path Hollande is also likely to take, except that he would bring to bear the French viewpoint, which is a good thing. It would still benefit from the idea that Sarkozy gave the German viewpoint a good hearing before it was fairly rejected in France on its merits and economic good sense.

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China Central Television (CCTV) in August 2013 cited the high prices charged for luxury car models in China. One report on CCTV gives the price of a luxury sport utility vehicle such as a Land Rover as 1.89 million yuan or $305,000 in China, while the same model could be purchased for $87,000 in the U.S. Land Rover agreed to a price reduction after investigation by the pricing and antimonopoly division of NDRC. Range Rover 5.0 V8 with a price tag of 2.89 million yuan will now sell for 2.65 million yuan. Considering the prices currently charged the price reductions of upto $32,000 still means prices are extremely high. Consultancy Automotive Foresight analysts say market forces have a bigger impact and the models chosen for the price reduction are not high volume models. A bigger impact it says would come on car models where the demand is high.

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This editorial says the climate change accords the U.S. reached with China in 2014 amount to little in the way of what China is required to do. China will be allowed to let its carbon emissions increase till 2030, two decades from now, and have the emissions decline afterward. This says the WSJ is what is expected to happen in China anyway because of demographic and urbanization trends. China will also have 20% of its energy come from non-coal polluting sources by 2030, something China plans to do anyway because of the high costs of pollution from coal plants. The U.S. commits to reducing its carbon emissions by 28% below 2005 levels by 2025, in place of the 17% currently set in 2009. This would increase costs of energy in the U.S., says WSJ, without any serious effort to cut emissions further in the developing countries.

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For the first time since the 1995 Srebrenica massacres of 8000 Muslims the Serbian police has made arrests of persons involved in the killings. Serbia is trying to make amends and come to terms with the past and set the path to the future as a new member of the European Union. This is a major step for reconciliation in the Balkan region through efforts for closing this troubled chapter in its history. Serbia's deputy war crimes prosecutor, said about the 8 arrests- "We have never dealt with crimes of this magnitude. It is very important that Serbia take a clear stance toward Srebrenica through the judicial process. We have sent a clear message that the Srebrenica victims, perpetrators or even potential war crimes will not be forgotten." For Serbia and the region this long awaited step brings the Balkans back into the fold of civilized Europe.

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This editorial in the WSJ, says its a surprise the protest vote in EU parliamentary elections did not come earlier, considering 11% unemployment in Europe and about 50% youth unemployment in some countries. Italy's Renzi government did well in the elections with 41% of the vote. The CDU got 30% of the vote. The French UMP party getting 20% and the Socialists 14%, a poor showing in France compared to the Natonal Front 25%. UKIP Independence party took 27% of the vote in the UK, with Labor and Conservatives a close second and third. Overall the results in Italy and Germany salvaged the situation, says the editorial, by making the pro-EU European People's Party (EPP), the largest group. It includes the UMP in France and CDU in Germany, and has 213 seats for then next 5 years, the largest group in a 753 member EU parliament.