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Herbert cites figures from the Center for Labor Market Studies at Northeastern University in Boston which divides households into 10 groups based on annual household income at looks at unemployment levels in eachfot 4th quarter 2009. The highest group with incomes of larger than $150,000 had unemployment of 3.2%, the next group at $100,000 to $149,999 at 4%, households earning $60,000 to $75,000 had jobless rate of 6.4%, with $50,000 to $59,000 a 7.8% jobless rate. Its only when you get $40,000 to $49,000 that you see jobless rates of 9%, that is close to the national average. The worst pain is in the lower middle class groups with the 7.8% and 9% unemployment and in the income groups of $12,500 to $20,000 which have 19.1% unemployment. For workers at the bottom the unemployment rate is 31%! The workers in service industries, such as food preparers, building cleaners, less educated, high school dropouts, blue collar workers, workers in the construction industry, many blacks and Hispanics, are all hard hit. This also gives some idea why the jobless situation does not cause the same anguish in the media coverage as most of it is concentrated among young people, immigrants, illegal immigrants, Hispanics, minorities, and in service and construction industry type occupations. This creates a fragile situation from a social cohesion perspective especially as the lower middle class is also in the same situation and this combined with the working class blue collar and service and construction workers is a large segmet of society....

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The S.E.C.'s failure to build a deterrent against future reckless financial activities- that damages the financial system and hurts the public interest- through effective enforcement. Efforts to rebuild its reputation under S.E.C. chief Mary Jo White.

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Transcripts released for the U.S. Federal Reserve's Federal Open Market Committee (FOMC) 2006 meetings show Fed chairman Bernanke and then New York Fed president Geithner ignored the risks of a hard landing from the mortgage and housing bubble. Geithner even went so far as to say about retiring chairman Greenspan, who also ignored the risks from the bubble and set the tone during his long period as chairman at the Fed: "I'd like the record to show that I think you're pretty terrific, too...And thinking about the probabilities, I think the risk that we decide in the future that you're even better than we think is higher than the alternative." In evaluating the risks facing the U.S. economy in December 2006, at the height of the bubble, Geithner stated: "The current weakness in the economy still seems principally to stem from the direct effects of the slowdown in housing on construction activity... The softer than expected recent numbers don't argue in our view, for a substantial reassessment of the risks in the outlook." The Fed chairman, Ben Bernanke, said at the first meeting in March 2006: " Strong fundamentals support a relatively soft landing in housing... I think we are unlikely to see growth being derailed by the housing market." When a Fed economist gave a presentation in March 2006 on the risks in Iceland, Bernanke said- "We'd like a full report on the Icelandic," at which point the rest of the group erupted with laughter. Iceland defaulted on its debts in 2008. Warnings about housing by Fed Governor Susan Bies were ignored by Bernanke and Geithner. Two highly leveraged Wall Street investment banks collapsed in 2008- Bear Stearns in March and Lehman in September- from the impact of the bursting of the bubble in housing and mortgages. When they collapsed these banks were leveraged at about 30 to 1, as most of the warning signs had been ignored by regulators including the Federal Reserve....

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The mortgage interest deduction mostly benefits wealthier people with larger mortgages who need it least, and who are likely to buy homes regardless of the deduction, say experts. Both the Brookings Institution and other experts such as Moody's chief economist, Mark Zandi, see the deduction as part of the negotiations for deficit reduction. The Brooking Institution's Ted Gayer, says the deduction subsidizes acitvity such as borrowing large amounts of money to buy larger homes which the U.S. should not want to subsidize in the current state of the country's finances. The Simpson-Bowles plan and the Feldstein-Romney plan sought to put unnecessary tax expenditures and deductions on the table for negotiation. The deduction was not part of the last tax reform in 1986 under president Reagan. Zandi says any changes should be phased in over a number of years so that housing sales ar not affected in the current recovery. David Stephens, CEO of the Mortgage Bankers Association says any changes should be implemented gradually. ...

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The Economist points out (in this cover issue on India-Pakistan relations) several fundamental facts. The first is that the current state of relations betweeen India and Pakistan hurts Pakistan the most. It makes a much smaller country and smaller economy bear the burden of defense against a large neighbor- defense takes up much needed allocation of funds for infrastructure and development, education and healthcare. It also weakens democratic institutions and their development by an overdependence on the military for governance. Poor India-Pakistan relations have significant adverse effects on the U.S. In fighting the Taliban U.S. forces are fighting a force that Pakistan's military helped create and support from its early beginnings as a way to counter Indian influence. With an Indian-Pakistani peace settlement of issues in Kashmir and other outstanding issues the U.S. would be in a significantly better position to disengage from the region, especially when the entire Middle East is moving in a new direction in 2011. Consider the difficulties in establishing peace in Northern Ireland, and between Turkey and Greece, and the difficulties of establishing peace between India and Pakistan cannot be considered even more difficult. Pakistan and India muddle along- neither side is doing much to take the initiative. For the U.S. disengagement from South Asia can be best achieved by pushing for a settlement between the two countries. Pakistan and India have much to gain from a settlement. Considering the progress made in Ireland, such places as Yugoslavia, and in Turkish-Greek relations, there is a lot more that can be done and should be done to bring India and Pakistan together. In Ireland diplomatic efforts were made by U.S. envoy George Mitchell, and in Yugoslavia U.S. envoy Holbrooke made diplomatic efforts towards the Dayton accords. Greek-Turkish relations have advanced to the point where Erdogan and Papandreou, the Greek and Turkish prime ministers, discuss solutions to the Greek debt crisis. This includes options to reduce Greece's defense expenditures in the light of Turkey's new foreign policies. The lack of such efforts to break the deadlock between India and Pakistan by the U.S,. the U.K. and other countries involved in the NATO mission in Afghanistan, the emphasis on a military solution supported first by Gen. McChrystal, and then by by Gen. Petraeus, all show a lack of understanding of the real issues that need to be tackled- issues relating to a peace settlement between India and Pakistan....

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Entous, Malas and Abushakra of the WSJ give a detailed account of the series of smaller chemical attacks that ended with this large attack in the suburbs of Damascus in August 2013, the actions of key participants, and the responses of the global community.

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Prof. Gorton and Prof. Metrick of the Yale School of Management review 16 scholarly studies and papers on the causes of the 2008-2009 global financial crisis in the current isue of the Journal of Economic Literature. Another article in the same journal reviews 21 books on the subject. Samuelson says the most cited causes- lax regulation and passive regulators, and the policy of home ownership that encourage the packaging and of securitization of mortgages to government sponsored agencies Fannie Mae and Freddie Mac- are only the surface causes. If we are to explain how a whole society seemed to believe in the idea that somehow there was a way to maintain a rising tide continuously, with only small corrections over several decades, by the clever manipulation of monetary and fiscal policies; then one has to look to the hubris of economists who acted as if this was possible and the gullibility of business and a public that desperately wanted to believe as some have put it "that this time it was different," or that shrewd management of economic policy could actually bring about such a panacea. The abiding lesson is economic policies based on a better understanding of how modern industrial economies work are merely useful tools, no more no less, and there is no substitute for a good ethic, wise management and careful thinking on the part of the public, business and government, particularly for the people in leadership positions. ...

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Hillary Clinton attacks Trump's policies in an address in Warren, Michigan, saying this was another version of failed trickle down economics. She called Trump's idea of taxing pass through entities such as small business reporting business income on individual tax returns at 15%, as a "Trump loophole." On trade policy Hillary Clinton said she would oppose the TPP or Trans- Pacific Partnership Trade Agreement that president Obama has supported. She put it flatly- " I oppose it now. I'll oppose it after the election, and I'll oppose it as president." And pointed out that too many companies have moved jobs overseas and "moved operations overseas and sold back into the U.S." after pushing for trade deals. The answer she said 'is not to rant and rave- or to cut us off from the world," in reference to protectionist policies Trump has supported. 

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CEO's of more than 80 large U.S. companies have come together behind a plan that would reduce the U.S. federal deficit with tax revenue increases and reduced spending. The CEO statement was organized by the Fix the Debt campaign, a bipartisan effort inspired by Republican Alan Simpson and Democrat Erskine Bowles of the 2010 Simpson-Bowles Deficit Commission. The CEO statement calls for an overhaul of the U.S. tax code to eliminate or reduce deductions, credits and loopholes (reduction of tax expenditures also referred to as "broadening the base"). The CEO statement says any fiscal plan to succeed has to control increases in health care spending, make Social Security solvent, and include "comprehensive and pro-growth tax reform, which broadens the base, lowers rates, raises revenues and reduces the deficit." This is the first time a large group of business leaders have supported raising taxes as part of an overall solution. This puts together elements of the Bowles-Simpson plan, reduces deductions and loopholes, lowers rates as part of overall tax reform and cutting spending. The CEO statement says the Simpson Bowles recommendations for $3 in spending cuts for every $1 in tax increases was an "effective framework" for tackling a problem that affects the economic well being and security of the U.S....

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How the efforts of former Secretary of State, Madeleine Albright, as head of the National Democratic Institute, and Senator John McCain, chairman of the International Republican Institute, to push for democratic processes in Egypt, failed to get the support of the Obama administration. Both wrote to Mr Mubarak in July 2010, asking that international monitors be allowed to observe the election in November 2010. The National Democratic Institute, is a US organization training Egyptians to be election monitors. After the renewal of martial law for another 2 years by Mubarak in May 2010, The Egypt Working Group, a bipartisan body of human rights activists, neoconservative policy makers and Mideast experts, was growing alarmed about the crackdown by Mubarak on anyone seeking transparency in the elections. It sent letters to Secretary of State, Hillary Clinton, in April and May 2010, saying the Mubarak move to rig the elections was dangerous as the young people in Egypt were increasingly agitated. The administration acted as if it was taken by surprise by the situation in Egypt, when respected leaders like Albright were cautioning the administration about the situation in Egypt from early 2010. Before and after the protests, the Obama administration was slow to support democratic processes in Egypt, and failed to take a clear consistent stand supporting the freedom of expression of the Egyptian people....

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U.S. president Obama's passive response in the handling of the NSA spying on the phones of world leaders including the president of Brazil and the chancellor of Germany comes under criticism in the U.S. The failure to provide adequate assurance- and take immediate action since the summer of 2013 when the first revelations of NSA spying were out- to regain trust of European and other leaders is seen as a weakness in leadership. With German presidential elections approaching German chancellor Merkel actually tried to tone down the initial uproar over NSA spying revelations in the summer of 2013. It was only after it was revealed in October 2013 that NSA had monitored Merkel's mobile phone did the chancellor make an issue of this and Obama could not respond to why no action had been taken since the summer and a complete review of NSA spy activities made by the President and advisors. Because world leaders are involved, and not just of allies but large emerging market nations such as Brazil, this becomes the personal responsibility of the U.S. president. Obama also comes under criticism for not responding to the failure of the healthcare website. This matter is of a different nature and could be handled by the President's Health and Human Services Secretary, Ms. Sibelius....

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Daily Show host, Jon Stewart, interviews US President Obama. Obama told Stewart that "it was fair" to say that Obama had done his work, in Stewart's words, in "a political manner that has papered over a foundation that is corrupt." Obama says "we got 90% of what we wanted," which reflects a huge gap between how he is seen by people in the U.S., and how he sees his first 2 years in office. Obama's defensive responses, and no efforts to connect with the youthful audience on the Daily Show. Stewart points to the gap between the "audacity" in the rhetoric of Obama, and the "timid" nature of his administration. Stewart made particular reference to the hiring of Larry Summers, a former Clinton administration official, to guide the President on economic policy and the dealings with the banks.

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U.S. Defense Secretary Panetta says the U.S. will hand over provinces to Afghan government forces and complete the transition to a training role in 2013. This is part of the withdrawal of NATO forces and comes after France's president Sarkozy proposed reducing France's committment in Afghanistan. Panetta said he would tell NATO partners- "We all went in together and we will go out together." This also fits in with the changing picture in the region, poor relations with Pakistan, sentiment in the U.S. and Europe focussed on the economic crisis, and direct talks with the Taliban for a post-NATO settlement of the conflict.

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Rattner looks with alarm at recent figures showing that of 2.65 million jobs created in the U.S. in 2015, only 30,000 were in manufacturing. He reflects on growth in manufacturing with the recovery in automobile manufacturing between 2009- 2013 - during this period employment in the U.S. auto industry went up by 23 percent to 690,000, and employment in Mexico's auto industry went up by 60 percent to 589,000, showing much faster growth overseas. Manufacturing has also experienced decline in private sector wages of 0.8% since 2009, with auto industry wages down 12.7 percent, says Rattner.

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Liu Junning points out China's heritage of liberal ideas that goes back to Laozi, the founder of Taoism (6th century B.C.), Mencius (4th century B.C), Huang Zongxi (1610-1695) which are similiar to the liberal ideas of the Enlightenment in the Western nations. He says the liberal ideas and accountability of government are the heritage of all nations and not a particular western experience.