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Brooks says President Obama's speech at the Democratic National Convention in Charlotte, was about incremental improvement, about continuity and defensive in nature, and lacked creativity to tackle the many hurdles and lacked most of all the audacity needed to set the country on the right track.

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Japan's GDP declined by 3.5% in the third quarter of 2012. GDP is expected to decline in the fourth quarter putting Japan in a recessionary phase. The rebound effects following the tsunami and earhtquake are receding and sales to China are sluggish. The strong yen and the eurozone crisis hurts exports. The proposed sales tax increase by the Noda government may be jeopardized by the recessionary phase.

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Jeffrey Immelt of GE makes a critical point in this op-ed article- that the concept of the US transitioning from a technology-based, export-oriented economic powerhouse to a services-led, consumption based economy was a bad idea because it would lead to a loss of jobs, prosperity and prestige. Immelt calls it "fundamentally wrong." In this piece he makes the point repeatedly and takes his role as head of the President's Council on Jobs and Competitiveness seriously, saying that there is nothing inevitable about the decline of manufacturing in America, that it can and must be reversed. For over two decades business leaders have taken a complacent attitude about the effects of a continued decline of manufacturing in America and the loss of jobs in the US, even as they built plants and expanded overseas. Now for the first time Immelt articulates a new policy for government and business leaders. He says businesses should invest more in advanced products and technologies that create jobs in the US. In doing this he joins Intel's Andy Grove and other business leaders who expressed a growing frustration with the pessimism that this loss of jobs and competitiveness is creating among young people in the US, and the cloud it is creating about America's future. Immelt adds that it is imperative to care about what happens at home in the US, and the growing pessimism that lack of jobs growth in the US creates should not be accepted....

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Apple maintains its grip on the tablet market with its iPad at $499. Experts at Wharton and the Stern School of Business say Apple has found the strategically right price to maintain a dominant share of a rapidly growing market. So rapidly growing that some estimates show tablet computers surpassing PC sales by 2013. Apple CEO Tim Cook, has the logistical expertise that helped him work out the right price. The Kindle at $199 is hardly profitable by some estimates. Samsung has a smaller tablet at $499. In 2011 Apple saw its tablet market share decline from 87% to 68%, according to IDC Research, but still able to get a dominant share of sales. Apple uses the same approach to pricing for the iPhone. The profits generated on large sales and higher margins helps Apple invest in new products.

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Italy's National Reform Plan shows a forecast of GDP contraction in 2012 of 1.2%, up from an earlier forecast. Italy will show a budget deficit of 0.5% of GDP in 2013. Italy's Deputy Economy Minister Vittorio Grilli poitsed out that in structural, cyclically adjusted terms Italy will post a budget surplus of 0.6% of GDP in 2013, that fiscal policy was tightening. This was confirmed by the IMF which said that Italy will achieve structural balance in 2013- which means that if the economy were operating at full potential Italy would have a balanced budget.

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The IMF predicts GDP decline of 1.9% in Italy in 2012.

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Participation by the Democratic Left party led by Fotis Kouvelis is necessary to form a stable government. Kovelis says the harshest austerity measures such as the demand to cut the minimum wage would have to be revoked in a new platform for New Democracy, Pasok Socialist party, and the Democratic Left. The timetable for Greece to meet budget deficit targets would also need to be extended. This comes as the three parties negotiate terms for a new government led by Antonis Samaras.

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The Daiichi Fukushima nuclear reactors are of a older 1970's design. A Wall Street Journal analysis of the safety record at the plant shows a safety record that is worse than other nuclear plants in Japan. Experts say the maintenance practices at the plant contributed to the nuclear meltdown. In the US spent fuel is retained in the nuclear reactor vessel during maintenance. At TEPCO's Fukushima plant the spent fuel is removed from the plant during maintenance and depends mainly on cooling water to keep the heat from building up. The additional protection of the reactor vessel is not present if something were to go wrong, as happened with the earthquake and tsunami.

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As many as 2 million votes in the 2014 Afghanistan elections are called into question. This is 2 million out of a total of 8 million. In the last election it is estimated 1.3 million fradulent votes were made for Hamid Karzai. This time it is said security officials, government officials and others worked together to get as many as 2 million votes for Asraf Ghani, who Karzai supports. This is happening even as the Taliban are increasing attacks in the country and the Americans are withdrawing. It shows that instead of a withdrawal that the Obama administration promised their appears to be a situation that is no different from that of the Bush administration, where American lives were lost and sacrifices made without even the most basic results- no assurance that if the government collapses from strains within and outside, Taliban and terrorism could not happen again as is hapening in Iraq.

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Left party Syriza did better than the government parties in the EU elections. A new parliamentary election would have to be called if prime minister Samaras cannot find the 180 votes needed to elect a new president in Feb. 2014. Syriza is calling for writeoff of some of the massive 318.6 billion euros of debt owed, 85% of it to France, Germany and other foreign governments and IMF. To offset Syriza's popularity Samaras is likely to use the improved confidence of investors in Greece to raise funds on capital markets, and access funds from a Stability Fund. By exiting the IMF program early and not taking 12 billion euros of IMF funds due for 2015-2016, Samaras can take independent steps to revive the Greek economy and reduce the burden of cuts. Greece will run a primary budget surplus before interest payments in 2014, as it did in 2013. GDP is down about 25% and unemployment is at 26%. Anger in the early years reflected in Athens riots, is now replaced with anguish and despair among ordinary Greeks and some public suicides. The current debt repayments is for debt to be repaid to IMF in 10 years and the EU loans in 32 years, with 10 years of interest payments at 1.5%. Even then the debt is already at 178% of GDP, way above the initial target of 124% of GDP set by IMF-EU for 2020. As a backup strategy German officials including Asmussen and Schauble, and ECB's Draghi are meeting with Mr. Tsipras of Syriza to ensure a smooth transition if this becomes necessary, without the uncertainty in financial markets created by earlier Greece elections....

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Karen Elliott House, who has reported extensively from Saudi Arabia for a long time, says the Saudi succession to a younger generation is established, yet the different strains on the fabric of Saudi society continue. The parts of the society that are Islamic fundamentalist see the monarchy as too worldly compared to a militant Islamic State, and the western educated class sees the monarchy and religious clerics as not making enough room for modern ideas, for women and a free press. Inside the kingdom the very dichotomy that allowed the Saudi state to flourish from its beginnings in the feudal period of the late eighteenth century with Wahhabbi given the role of religious authority in exchange for guaranteeing political legitimacy of the monarchy now creates tensions in a modern state. Outside the kingdom Iran is seen as a rival state in the region, and the Saudi monarchy is seeking the support of the U.S. to fight Islamic State. Ibn Saud, described as a skilled statesman by John Foster Dulles, carefully strengthened the monarchy's role in the region for the first half of the twentieth century in his dealings with Britain and the U.S., and successors including King Abdullah continued his policies. Saudi Arabia now is in a new period of radicalism, and conflicts in the region, with an aging leadership in transition, a house divided against itself, as Karen Elliott House who as observed the kingdom for so long points out....

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Judge Rakoff is interviewed by Adam Liptak as an essay by Rakoff appears in the December 22 issue of The New York Review of Books. Judge Rakoff is critical of the Justice Department for not prosecuting individuals responsible in the 2008-2009 financial crisis and merely offering excuses. He discounts the Justice Department argument that proving intent is difficult or that proving fraud is hard because of the sophisticated counterparties on both sides. He says assistant attorney general in the criminal division Bauer's assertion that you have to prove the individual involved made a false statement, intended to commit a crime, and that the other side depended on this for what they were doing, is misleading. The government is not required to prove that one party to a transaction relied on another party. On the difficulty to prove wilful criminal intent for individuals several layers above those who made and marketed the bad securities, Rakoff says the legal doctrine of wilfull blindness could have been used. Reflecting on why the Justice Department has not prosecuted individuals for wrongdoing the way Milken, Keating and Skilling were prosecuted in prior financial crises, Rakoff comes up with a explanation. He says the government's own role and the role of firms throughout the financial system is suspect in the 2008-2009 financial crisis unlike prior crises. Not only regulators are failing to to do their job. The financial system offers incentives for the packaging of bad debt securities. Fannie Mae has government backing and its management buys these securities to expand access to housing for low income people. The profits made on these securities brings U.S. and foreign banks into this business and leads to a proliferation of these securities around the globe to the point that small towns near the North Pole end up with these securities in their portfolio. This complicates things for prosecutors who in some situations have themselves worked for banks selling these securities. In its slow deliberative way the Obama administration, the Justice Department, and the S.E.C.'s new head, move to prosecute firms during the administration's second term, but not enough is done and tackling individual responsibility for deterring future wrongdoing in the interests of a safe and fair financial system seems a long way off....

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Ideas for a national "bad bank" to assign bad assets and help improve the rate of bank lending in the economy from Bank of Italy head, Ignazio Visco. There is a sense that the undercapitalization of business is holding back Italy's economy, and problems are not only the high government debt level of 2.1 trillion euros. Italy's business investment per worker has declined 9% since 2009, Germany's increased by 8%, France's 2% in the same period, Mr Visco said at a banking conference in Rome in Jan 2014. Visco said the idea of a bad bank similiar to that setup in Spain would at a moderate cost free up resources to be used to finance the economy. In the current situation of weak bank balance sheets and borrowers weakened by the long austerity period, banks are not able to pass on the eurozone's low interest rates for businesses to pursue growth opportunities.