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New rules by the Government Accounting Standards Board (GASB) and Moody's would show U.S. public pension funds as about 57% funded instead of 75% funded under earlier rules. This will open up an even wider gap in how much they have in the funds and their promises to retirees to about an estimated $2.2 trillion. This puts pressure on state and local governments to either reduce benefits for new hires, have workers increase contributions, or set aside more money from the budget. Local governments face the risk of credit downgrades and higher borrowing costs if no action is taken and finances are worsening. An example is Illinois retired teachers who earn annual pensions of about $46,000 on average, and do not participate in Social Security under state opt-out. Even under old accounting rules this pension fund had $37 billion of assets and $81 in future liabilities. Under the new rules the unfunded liabilities could jump to 83% by one estimate, from over 50%.

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Antonis Samaras continues his efforts to get the EU to agree to a two year extension for deficit targets agreed to in the March 202 bailout. He meets Merkel in Berlin, Aug. 24 and Hollande in Paris, Aug. 25. Merkel's coalition partners the Free Democrats oppose an extension. The opposition Social Democrats leader Steinmeier tells the Frankfurter Rundschau newspaper "its not very smart to abandon all conditions for aid over an extension of 12 months." Samaras tells the Sueddeutsche Zeitung newspaper: "our economy shrank 27%. Greece is bleeding, It is really bleeding." And German finance minister Schauble tells Germany's SWR2 radio that its too early for Greece to come back and say the agreed aid is insufficient considering that its ony 6 months since the March 2012 agreement. Merkel and other leaders in the Christian Democrats say they will wait till a report from the troika (the EU, ECB and the IMF) in October 2012 before responding.

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Evern though the Detroit carmakers initial quality as measured by J.D. Powers Initial Quality Survey is slightly higher than Japanese carmakers in pickup trucks, the Japanese carmakers still have a lead in the more popular cars and in crossovers. The Prius is made in a factory in Japan which ranks as one of the highest in quality. Quality is higher at plants in Japan for Toyota cars, and a bit lower here in the states for Toyota plants. Its on a par with Ford for the Toyota cars made in the USA. As the quality gaps shrinks to near zero between the quality of American and Japanese cars made in the USA, Toyota continues to maintain its edge in quality for its plants in Japan over both the Americans and the Germans. And the one carmaker that intends to surprise is Hyundai which surpasses Toyota, Honda, Ford and Chevy in quality and does this with a lower price. Consumers are noticing and making the switch, as Hyundai's market share is increasing. See Hyundai link. Here are some of the results. First the plants that produce the best quality, as measured by the J.D. Powers Initial Quality Survey. A survey of 80,900 cars between November 2008 and February 2009, for the first 90 days thses cars were driven, using the number of problems per 100 vehicles. All numbers refer to problems per 100 vehicles. Toyota plants in Japn that scored highest- Higashi-Fuji at 29 making Lexus SC and Toyota Corolla, Fuijimatsu at 30 making the Prius, Kyushu at 34 making the Lexus ES and Highlander. At the next level German plants, Bremen at 40 making the Mercedes Benz Classes- C, CLK, SL, and SLK. Daimler in E. London, S. Africa at 38, and BMW at 40 in Dinggolfing, Germany. And a cluster of Japanese and American plants in the USA that produce cars of comparable quality. Honda in E. Liberty Ohio at 41, making the Honda Civic, CRV and Element. GM at Oshawa, Ontario, at 42 making the Buick LaCrosse and Chevy Impala at 42. GM at Bowling Green, Kentucky at 43, and Toyota, Georgetwon, Kentucky making the Avalon and Camry at 43. What is notable from the last survey in this highly competitive market is the following. 1. Hyundai at 91 problems per 100 vehicles surpasses Honda at 95. Better quality at a lower price, so its no wonder Hyundai is gaining market share and is the new carmaker gaining a presence in the USA. 2. Toyota is at 101, Ford at 102, Chevy at 103, so the difference now in carmakers quality is perception, perception, perception. Its about lifestyle, what you like to be associated with and what you want your friends and neighbors to think about you in your choice of car, younger buyers who are the next generation that makes or breaks your business, the new trendy things among younger people, and design that appeals to them. 3. VW is at 112. So even though there is aggressive marketing and VW is picking up some market share with the Jetta, it still lags slightly in quality. 4. The American car makers still lack consistent quality. You have the Buick at 117, GMC at 116. Ford with Lincoln at 129. The Koreans with Kia at 112. 5. Chrysler is at the bottom of the list. Dodge at 134, Chevy at 136, Jeep at 137. THe lack of resources, changes in management and ownership, and the distractions of bankruptcy and dealership closings, and most of all dire lack of resources including the layoff of large parts of its engineering talent, all hurt. 6. GM sold Saab, Ford sold Land Rover and Jaguar. The neglect of Saab shows with Saab at 138, and Ford's distraction during the last 3 years shows with Jaguar at 134 and Land Rover at 150. also. 7. In summary Ford has done well overall, Toyota is coming up short in the USA and resting on its laurels, GM has a perception gap with younger buyers, Hyundai looks like a winner with both price and quality, and VW has work to do. ...

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China's view on its new Air Defense Zone as expressed by the Foreign Ministry is that if European countries and Japan are entitled to set their own air defense zones then China should be able to set its own zone. The differences with Asian neigbors and the U.S. arises over the fact that this overlaps with the zones of S. Korea, Japan and Taiwan and also covers the area of the disputed Senkaku Islands. Other problems lie in the ambiguous wording and failure to share this information in advance with other countries. As it stands B-52's from the U.S. and Japanese planes entered the zone on Nov. 29, and Chinese fighter jets tracked the planes but there was no incident. U.S. civilian airlines have agreed to follow the rules set by China for the air defense zone, and the U.S. government says it will let the airlines make the decision to follow the zone. The EU protested the setting up of the new air defense zone.

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Efforts to ramp up the actions on stopping illegal migration in the EU after the US president describes the shaky situation in Europe. EU ministers agree on centralized list of safe states to return migrants- Bangladesh, India, Egypt, Morocco and Tunisia. EU plans to downgrade trade ties with countries that do not cooperate. The idea of return hubs outside the EU are proposed by Denmark. Denmark is now working with UK to help the UK develop a Denmark style policy that cuts down illegal migration after the unrest in Britain over asylum hotels. Failure to act quickly and have a comprehensive approach that works to reduce illegal migrants across borders can lead to governments such as the UK being voted out for other parties with strong anti-immigration stance as the mood shifts in Europe.

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"Not ideal" says Ben Stokes, "yeah disappointing" says Steve Smith, about the 10mm of grass on the pitch that led to 20 wickets on the first day 36 wickets by the second day. Cricket Australia is disappointing a lot of fans when the Test match at MCG cricket grounds is over in 2 days- not since 1904 has something like this happened at MCCG- and there is an investigation, too much left to the cricket grounds preparation experts without supervision by Cricket Australia. Stokes says to be brutally honest it was bad for 90,000 fans. About England critics after losing 3 Tests, Stokes says that now goes to zero the idea of England not having won at all. Stokes and Root hug in the locker room, a sign of relief.

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The White House Council of Economic Advisors lists the accomplishments of president Trump for the First 10 Days in cost of living, in job creation, costly regulation, and the economy. Costly regulation cuts $935 billion of costs or $11,000 per family of 4 over the next decade. Lower interest rates improve access to housing saving households $1080 per year. Cost of pharmaceuticals down by 2% and energy prices down by 2%. Used motor vehicles and auto insurance price decreasing. DJT creating 345,000 jobs in the First 100 Days. 

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Canada's foreign minister in a speech in parliament says Canada will now "set its own clear and sovereign course." This follows a speech by Angela Merkel of Germany saying " the times in which we could fully rely on others, they are somewhat over." Both countries plan to take a bigger role in international affairs as the U.S. under president Trump is seen as not being able to or not wanting to lead. The U.S. withdrawal from the Paris climate change accord has shaken confidence in the U.S. role in international affairs in 2017.

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How did Roger Bannister do the 4 minute mile in Oxford 1954. The shoes were heavy, Bannister was on war time rations growing up, he worked during the day, there were mental barrriers says his friend Coe. And on the day Bannister ran it was raining and wind gusts of 25mph made it not certain he would make the run.Bannister puts it this way- "Sport is aobut adapting to the unexpected and being able to modify plans at the last minute. Sport, like all life, is aobut taking your chances." And after it was filmed by the BBC, Bannister was known all over the world, yet as an amateur he did not benefit from it financially, as runners do today. His friend Coe talks to The Guardian about this achievement and the story behind it.

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This view in DW.com looks at the rising inequality in Chile and the devastating inflation of over 50% in Argentina, the failure in providing basic public services such as sanitation in Brazil, as failures in the economic models and also in the lack of social solidarity within Latin American nations.. The pursuit of "what is the most of what I can get" in place of "what is the best I can do so that the country and people benefit as a whole including myself as part of that society." Argentines have billions of dollars overseas, and billions are stored in homes outside of banks because no one trusts the government or banks to keep inflation in check. In Chile the economic model accepts high inequality as a norm. In Brazil much of the public spending goes to generous pensions crowding out basic services such as transport and sanitation. In each case one section of society looks after its own interests at the expense of the society as a whole leading to a breakdown and misery for all. ...

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Wirecard has filed for insolvency.The $2 billion missing in a bank account for Wirecard is more than all the profits it has made over 10 years. It got off the ground in 2016 after Credit Suisse and Softbank took interest in investing. This report in the WSJ shows the hazy history of the company and the details about the missing money in the bank account in the Philippines. Ernst and Young says it was deceived, and the money did not exist in the accounts, as reported in this video by the WSJ. The billions of dollars invested in companies like Wirecard, WeWork and other companies, could easily have funded the PPE equipment, facial masks, and other healthcare equipment held as a reserve for emergencies such as this pandemic, in any large region such as North America or the European Union.   For every Wirecard there are 10 others in every region of the world. Just in the last month several imploded including a coffee venture copied right off Starbucks each involving losses of billions of dollars. ...

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Analysts and experts says Turkey faces a debt bubble like that facing Spain and Ireland. The budget deficits in Spain and Ireland were considered manageable before the banking crises in the two countries. Turkey's short term borrowing- most of the $221 billion in outside financing needed for the private sector in 2013 is in short term loans. The large current account deficit and rate of growth in credit approaching IMF warning indicators are a problem. Volatile capital inflows could reverse as investors look for safe havens with the continuing street protests in Istanbul. Earlier currency crises in 1993 and 2001 were currency crises from volatile capital inflows. Turkey's central bank is trying to manage this situation and has $100 billion in currency reserves. But it is the hidden buildup of external debt by banks and companies in Turkey that worries analysts like Richard Segal at Jefferies bank in London. A $400 billion public spending plan, over 50% of Turkey's $770 billion GDP, is being prepared by the Erdogan government for the 100th anniversary of the founding of the modern Turkish state in 1923, showing that the scale of public spending is not under control. Analysts say at some point the huge credit bubble will burst, as it has in other countries including Spain, where the central bank appeared to have things under control. The street protests add political risk to the increasing risk for emerging markets with the U.S. Federal Reserve's policy shift to increasing interest rates....

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Seen in a larger context, the Biden tax pledge seen from the southern and midwestern and less well off states is not about taxes, it is about federal revenues that build the infrastructure and services in these states that increase the standard of living. This happened in the 1930's and 1940's under FDR and Truman, in the 1950's under Eisenhower, in the 1960's under Kennedy/LBJ. And is happening again under Biden today. Lets not forget that president John F. Kennedy says in his speeches that these regions in America in the 1860's under Lincoln were in development close to what prevailed in the 1960's in India, Ceylon, Chile, Turkey or China. The Biden pledge not to increase taxes on anyone making less than $400,000 is significant because it grasps the situation in America where extraordinary gains in wealth since 1980 have gone only some of it to the top 1-2% in midwestern states and southern states, and most of it to the top 3-5% in coastal states population in the east and west, New York and California, where the finance and tech industry are based. In Michigan and Wisconsin only 2% of households make more than $400,000, in Pennsylvania, Nevada, Arizona and Florida 3%. WSJ shows a map of the US showing this for individual states. The core southern states have 2% of households with incomes over $400,000- including Arkansas, Tennessee, South Carolina, Alabama, Louisiana, Oklahoma, with Mississippi less than 1%. It is only segregation in the late 1960's and culture issues such as abortion that have turned them from Democratic states to Republican states as they were the largest beneficiaries of taxes diverted into investment in these places since FDR/Truman and John Kennedy/LBJ. It was JFK who came up with the phrase "a rising tide lifts all boats" when he opened federally funded projects in Arkansas. Seen objectively the large investments made under Lincoln, FDR/Truman, Kennedy/LBJ from tax revenues are what changed this region from conditions that prevailed in less developed countries that John Kennedy points out in his speeches, true for the midwest, parts of the west, and the southern states alike.  President Kennedy said on Feb. 25, 1963 to the American Bankers Association Symposium on Economic Growth: "Today, many Americans tend to think of developing underdeveloped countries in terms only of faraway nations. But in 1863, even measured by 1963 dollars, our own per capita income--and this should be a source of encouragement to many who are laboring with the problem of underdevelopment in far-off countries--our own per capita income was less than $1 a day, approximately the same as Chile's. Nearly 60 percent of our labor force was engaged in agriculture, the same percentage as is today engaged in the Philippines. An estimated 20 percent of our population was illiterate, the same percentage of the population of Ceylon. Only one-fifth of our 34 million people lived in towns or cities of over 5,000 in population, as is roughly true now of Turkey. In 1863, this Nation had fewer railroad tracks laid than India has today, and its children had a shorter life expectancy than a child born this year in Thailand or Zanzibar."   ...

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Landon Thomas points out an important fact as Greece faces a decision whether to exit the euro and return to the drachma. Removing the interest payments to creditors (French, German and other banks) would result in closing the budget deficit in Greece. When these interest payments on a huge debt load are taken out, Greece would have a budget surplus of 1.5% of GDP compared with a budget deficit of 8% of GDP when interest payments are continued. The experience of Argentina suggests the immediate impact would be painful, but the devaluation in the currency of over 50% from what it is today would return Greece to growth. The alternative under the present plan is to leave Greece burdened with a decade of austerity cuts and a shrinking economy.

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More than 600,00 people in Hong Kong are expected to use their colonial era British National Overseas (BNO) status to seek the pathway to citizenship offered by the British government. The advocacy group HKB Hongkongers in Britain surveyed the city's residents hoping to take advantage of the program that starts in January 2021. The Home Office had expected this to be about 500,000 over 3 years. About 80% of those surveyed want to emigrate in 2 years, faster than expected. About 75% of them have university degrees and earn well above the city's average, so that they can contribute to the British economy. About 75% plan to travel with children. Only half have friends in the UK and few have family there. Compared to the influx of migrants into Germany this is likely to bring a fresh infusion of talent into the UK economy at a time when Britain is embarking on building trade with countries around the world after leaving the European Union. Germany had language classes and many problems to integrate migrants from Africa. There is no language barrier and cultural issues are also for the most part absent. The technical skills of Hongkongers with BNO status could add to the British economy in many unanticipated ways.   ...

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In this interview in The Hindu with Public Health Foundation of India president Srinath Reddy, the importance of safe behaviours including masks and social distancing, public discipline to tackle a potential third wave. This was also pointed out separately by the Director AIIMS.  Mr. Reddy says study by Public Health England shows just one dose of Astra Zeneca vaccine is not very effective against the Delta variant- about 30% effective. As a result he suggests the need to reduce the spacing intervals which are at 8-12 weeks to a shorter interval now that adequate supplies of vaccine will be available starting in July and August till the end of the year. The initial spacing was 4 weeks when Astra Zeneca vaccine was first introduced and at which time the variants had not emerged. The Indian federal government affidavit to the Supreme Court shows that 1880 million doses of vaccine will be available by the end of the year 2021 to vaccinate fully with 2 doses the population of India over 18 years using 5 locally manufactured Made in India vaccines. This does not include the mRNA vaccines that will be made available from Moderna and Pfizer for which cold storage facilities are being prepared by the federal government.   ...

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About what sort of a leader Liz Truss will be the BBC's Nicholas Watt says it will be someone who cares, and will find a way to support the public with the cost of living crisis. Reports in the Guardian show she is likely to set up the freezing of energy bills at the current level of 1975 pounds with a 100 billion pound plan. That plan would involve commercial banks depositing cash in a state backed fund that would be repaid over 10-15 years. Of all the qualities seen in Truss the most is her adaptability and a sense of going with the groups that cares deeply about things. This is one reason why she supported the Brexiteers. A quality she shares with Boris Johnson is her affability, a sense of genuine concern for people, that has helped someone who was a Liberal Democrat, and had parents who were pro-Labor, and who was in Remain, easily act as someone who was always a Tory Brexiteer. One thing she brings from her father who is a Math professor is her passion for math says Watt, saying also that anyone going to 10 Downing Street to interview her needs to be ready for a tricky maths challenge. ...

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The former president having 81% of the vote for non college educated in the primaries and  small percentage of votes among college educated means that if elected it would be that a whole population of college educated people are being effectively disenfranchised in choosing the government. It means that democracy that took over 200 years to include people with less education and income in selecting a government has moved in 2024 to doing the opposite excluding the educated with all its implications for good government of such a lopsided state of affairs. A recent poll shows 81% of Haley's 250,000 votes in the Republican primary would not vote for the former president. Haley won moderates by 61% to 31%. Trump won those without a college degree by 82% to 13% for Haley. Trump support huge in rural areas, Haley's in the suburbs.This shows how different this Republican party is from that even as recent as 2015. In fact Gallup has found that in 1999 the Democratic party was a plus 14 percentage points for non college educated and in 2024 the Republican party is a plus 14 percentage points for non college educated. Among postgraduate educated the gap was 8 percentage points in 1999 and now has widened to where Democrats have 60% to Republicans 21%. ...

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Chrysler will fill a big gap in its product line with a high fuel efficiency compact sedan developed using Fiat technology. It will be marketed under the Dodge brand name and will be produced at a plant in Illinois. This compact will have over 40 mpg fuel efficiency.

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AT&T, Colgate-Palmolive, Medtronic and Nucor are added to the S&P 500 Dividend Aristocrats Index. Companies on this index have raised their dividend payouts for over 25 years. AT&T is the largest dividend payer in the world, paying about $10.2 billion with a yield of 5.9%.

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The relationship between the southerner finance minister Schauble, and chancellor Merkel from the former East Germany is close, with each depending on the other. The Greece crisis following the referendum, with Schauble's patience with Greece exhausted by July 9, 2015, is reflected in the words he used in February 2015 about the Greece bailout program "ich over", his southwest German accent version of "it's over." In the German parliament Schauble has described the Tsipras government's behaviour as "lacking any rhyme or reason," and Schauble's popularity rating in the ruling CDU party is higher than Merkel in 2015, at over 70%. Schauble is a key CDU member in bringing the CDU's conservative members behind Merkel. This also limits the room Merkel now has in negotiating some last minute deal on Greece before the expiry of the deadline of July 12, 2015. Merkel has also set a higher bar for the negotiation, and a multiyear deal making reforms a high priority. When Schauble says there is no "rhyme or reason" for Syriza party Tsipras's behaviour he may be referring to the EU giving in to Greece's key demand for a change in the surplus targets for 2014-2016. As economists including Krugman point out the surplus is what Greece transfers to its creditors, and additionally with the EU making transfers of about 5% of GNP to Greece according to Harvard economist Kenneth Rogoff, aside from cuts to pensions as part of pension reforms to return a unsustainable pension system to sustainability, the Greeks had most of what they could expect at this time. The debt is basically being rolled over with EU loans helping pay what is now very low interest, making it an issue that could be tackled at a later stage, say economists, even though Syriza made it an overriding issue in the referendum. Both Schauble, Merkel, and the rest of the CDU, and many Social Democrats including their leader Sigmar Gabriel, find Syriza Tsipras's moves incomprehensible and damaging relations. German experts now see the Eurozone and the Euro currency better off for the future with a Grexit, which also limits what Merkel and Germany can now do....

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Jack Tramiel of Commodore International who introduced the Commodore 64 in 1982. Over 17 million units were sold for a machine targeted at the average person. Tramiel started with low price electronic calculators after visiting Japanese factories and moved on to digital watches, lower priced PC's and then to Atati game consoles.

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Boris Johnson, who heads a minority government in Britain following resignation of Theresa May, will do just about anything to push Britain out of the European Union by October 31st. He has said he would "rather be dead in a ditch" than ask for an extension of the October 31st deadline. The British parliament is dead set on preventing that and has passed legislation requiring a extension of the October 31st deadline to January 2020. Johnson is even willing to go to jail for breaking the law, on the grounds that he is simply supporting the people's referendum choice over an elected parliament. This is itself a strange situation because the elected representatives in parliament decide for the people, and views in a referendum can change over time. Johnson says the reports of Britain's economy taking a blow from simply falling out of the European Union without a negotiated deal are exaggerated. He even once said all it means is that there might be "a shortage of Mars chocolate bars." Before becoming prime minister with a one vote majority in parliament which he promptly lost on the first day parliament met, Boris was a journalist who was elected Mayor of London. His only other position was for a brief period with controversy as Foreign Secretary in Theresa May's government. By taking in as chief adviser the head of the Brexit referendum Leave campaign Mr. Cummings, Mr. Johnson shows he believes he could win a general election with a carefully orchestrated campaign like that of Leave that blames the Labour Party, and the Scottish National party for stopping Brexit and halting the people's mandate.  The question is whether Cummings has gone too far or Boris Johnson has gone too far using Cumming's methods and views. Many Conservative moderates were expelled from the Conservative Party by Johnson and Cummings leaving the Conservative Party in self-destructive mode and the worst shape it has been in its history. It is not clear that after 10 years of austerity and rule by the Conservative party, and the mess from the single minded pursuit of Brexit that has overshadowed Britain's other priorities, that the British public would simply give a broken Conservative Party another mandate without thinking carefully about all the consequences. More so amid the lack of trust that is a feature of the Boris Johnson minority government.  ...

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The economic crisis in the Russian city of Yaroslavl, 150 miles northeast of Moscow on the Volga river. Auto sales are down 30% and the city's diesel engine making plant is down to working only 3 days aweek. Many of the other factories and plants here are laying off people and are also on 3 days a week. Cafes and bars in the city are empty and people are filling job search centers.

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The Iraqi army takes over the Al Nuri Grand Mosque in Mosul, but what the mosque and the city itself lie in ruins. The minaret is gone in the debris, a shattered city is what is left from the Islamic State takeover of the city in 2014 and the eight month effort in 2017 by the Iraqi army to retake the city.   For more depth see links and groups or search- The problems of Mosul started with the openly sectarian administration of prime minister Nouri Maliki leading to alienation of Sunnis in Mosul. Corruption in the administration and weakness in the Iraqi army combined with alienation of Sunnis to create an opening for a militant group Islamic State in Syria and Iraq. As Iraqi units disintegrated Mosul fell, leading to a worsening of the refugee crisis in Syria and Iraq, increasing the flood of refugees to Europe, and the series of terrorist incidents in Paris, Berlin, London, rise of right wing groups in the European Union, in a chain reaction. The failure of the Obama administration to setup a "no fly zone" in Syria simply compounded the crisis into what it is today. At the root of the crisis - the failed efforts to reconcile Sunnis and Shiites in Iraq, and the sectarian conflicts in the region as a whole stretching from Saudi Arabia and Egypt to Iran.     ...