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As to financing of $6000 child tax credit costing about $100 billion a year as estimated by Office for Responsible Budget some of it would come from the $360 billion in tax savings over 10 years by Medicare negotiation of prices with Pharma, other would come from taxing corporations and high incomes at rates that are similar to what firemen and teachers pay of 20-25%. In his speech at North Carolina Aug 15, 2024 at Wake Tech in Raleigh, president Biden said- "You know how many billionaires there are in America?  There’s now a thousand billionaires.  You know what their average tax they pay — federal tax?  8.2 percent.  Anybody want to trade with a billionaire — their tax rate?  (Laughter.)  Well, guess what?  If they just paid 25 percent — it’s not the highest bracket by a longshot — 25 percent — do you know what that would do?  That would raise $40- — $400 billion over the next 10 years.  Imagine what we could do with that.  We could fundamentally sh- — slash the federal deficit.  We could make sure there’s home care.  We could do so many things — consequential — including finally making sure that we take care of Ukraine from that butcher Putin.  (Applause.) ...

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In a buyers market where sellers find it hard to sell their house they are not negotiating the price they pay for commission of 2.4% of the price of house for the sale. Agents are not interested in changing the way things were.

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Prime minister Edouard Philippe of France sets out the detailed plan for reopening the country in phases starting April 28.

Key points-

Masks will be compulsory, travel between regions will be restricted.

New method of social distancing on subways operating at 70% of capacity- leaving an empty seat between 2 persons both wearing masks. Reduced trains scheduled between regions.

No gatherings of more than 10 people.

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DW.com report by Mu Ciu shows a CATL(Contemporary Amperex Technology) plant in Arnstadt, Thuringia, in eastern Germany. It will not bridge Germany's technology gap. German and US consultants at the microeconomic level of the company and German and US economists at the macroeconomic level of the economy entirely fail to grasp the effectiveness of China's investment driven model. Of its joint partnering with European and American companies and China's single minded focus on technology access. This is why the DJT US administration has warned Europe that it is failing economically. China's macroeconomic and microeconomic model are run by the same authority by the state, and according to goals and plans (which in a socialist economy is weak at the microeconomic company level lacking the initiative and freedom of action). By combining its macreconomic framework run by the state with a micreconomic company level run by the state but on free market lines the Chinese investment driven model has dual advantages and operates at a speed that far surpasses the German and American model. It's society suffers as a consequence, but in few short decades 1990-2009/2020 this is all it could accomplish with a single focus on modernization for what was once a peasant agricultural economy. Where it lacks is in future technology access and as long as weak companies in the US and Germany partner with Chinese companies the technology access for Chinese companies give it the essential ingredient for its investment model to work, as American and European companies can waver in investment Chinese companies backed by the government will not waver in investment and have the clear advantage. DJT's approach is to give a big shock to the entire system of world trade now run by China, so that this is no longer going to work at the macroeconomic level and legislate huge investment incentives for one time depreciation and other moves to get American companies to invest. It wants Europe to do the same, including getting rid of the bureaucratic structures and regulations. German Chancellor Merz is getting the message and is acting quickly first with the trillion dollar investment plan, the meetings with Draghi and Meloni to get Italy and like minded nations on board, and internal efforts to get rid of regulations and bureaucratic structures, and building a new partnership with India to remove an error of Merkel/ Clinton+ Obama in excessive concentration and dependence on China. This requires a steady hand and steady governments, steady policy, and companies in America, Europe and India to work together for the long haul without wavering or delay, to rebuild the world economy along new lines and on a new path. ...

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This report looks at the idea of jointly issuing debt for nonrepayable aid of 390 billion euros for the recovery fund for Europe. This goes to aid the countries hardest hit by the pandemic including Italy, Spain, Portugal, Greece, Poland.

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The Indian economy grows at 6.3% in the third quarter of 2017. The demonetization, and new GST tax plan, had slowed the economic growth to 5.7% in the second quarter of 2017. Higher economic growth is important to generate the jobs needed as 10 million young people join the workforce each year. The Modi government responded to the slowdown by accelerating spending on infrastructure- a $100 billion spending plan on roads and highways, and $32 billion cash infusion for state run banks with the effort to clean up the bad loans in the banking system. 

Elections in prime minister Modi's home state of Gujarat are coming up and this will give some indication of voter sentiment in 2017. The Pew Research Survey in 2017 shows Modi's personal popularity is high and continues to bolster the government's prospects.

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Andy Jassy joined Amazon in 1997, three years after it was founded in 1994 by Jeff Bezos. He is credited with the rapid growth of cloud computing into a $51 billion business for Amazon with market share of 28%. He now takes over the role of CEO of Amazon with day to day responsibilities just as Bezos shifts his attention to other opportunities. Jassy shares the traits of inventive spirit and investing heavily in growth opportunities one finds in Jeff Bezos. Careful planning and a long term plan in entering a business and achieving one goal after another as the business accelerates.

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Th Labour party of Mr. Anthony Albanese promised a referendum on its "voice" plan to give aboriginals separate representation. It would have created an advisory body to the government for indigenous people related to issues such as health and education.The referendum failed by a wide margin in the vote across Australia. Some opposed it as not doing enough for reconciliation with the indigenous people who make up 4% of the Australian population, the opposition Liberal party opposed it as being too vague, and others felt the government was not doing enough for major issues such as cost of living.

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As the period of transition between administrations is a period when no action can be taken on the stimulus plan and 533,0000 jobs were lost in November, with the uncertainties facing the auto industry and more unemplyment expected as that industry donwsizes, and consumers overstretched, the Fed takes aggresssive steps. It reduces the target interest rate, an overnight bank lending rate called the federal funds rate, to between zero and one quarter percentage point. And it added that theat the Fed's policy will be to keep interest rates "exceptionally low " for some time. The 3 month Treasury bill rate, another borrowing rate has gone down to zero.

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As the coronavirus hits the economy and money markets, not even gold and safe bonds are places people are turning to. The shortest term bonds and cash have become important. Short term money markets are strained and companies are drawing down on their credit facilities while they can be accessed. From the view of small business or big business it is liquidity and cash that matters now. People and businesses need cash to cover rent, fixed costs, other bills. Small businesses have less room for error and need to plan carefully. The dollar is surging against all other currencies. This is the situation on March 18, 2020.

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Over half of the companies in the US plan to hire in 2025. Considerable uncertainty prevailed in 2024 about hiring, this is clearing up in 2025 with a new administration keen on boosting growth.

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It is important to understand the tariffs imposed by the Trump administration because of the many misleading headlines. The new tariffs placed by the Trump administration on a list of 1300 imported products from China are for about $50 billion and targeted at high tech products in flat screen televisions, medical devices, aircraft parts and batteries, other high tech products that China hopes to get an edge over the U.S. under its "Made in China 2025" plan. China still enjoys a huge surplus with the U.S. This plan is intended to better manage the next phase of the competition with China as China seeks to get an edge in high tech products. The steel tariffs were targeted at China's buildup of surplus steel capacity in the last 2 decades, with little to do with the next phase of the competition globally between the U.S., the E.U. and China. This is a carefully planned move showing American resolve to be competitive in the high tech industries of the future. It will be followed by a comment period during which the administration will get feedback on product choices. A public hearing is set for May 15 in Washington, and companies can file objections till May 22. ...

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Mario Balotelli, the soccer star who played for Marseille decides to go back to his hometown of Brescia, Italy. Along the way turning down offers to play for Flamengo in Brazil or impossible sums of money for playing on a Chinese team. His mother cried when she heard that he was coming back. He was once the only black player on the Italian team when he scored the winning goal against a stunned German team by going from one end of the field to the other. 

His offer from Brescia is 4.4 million dollars but that was enough for him to come home, accepting the offer at once. Even while playing for Milan he preferred to commute the distance and stay in Brescia. 

He will no longer be alone as the only black player on the soccer field. Brexcia is now extracommunitaria as they say in Italy, a multicultural city with 19% of its citizens from other backgrounds. Many players from West Africa are now playing in the Italian league.  

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A shortage of manpower is leading Russia to offer 3 month contracts to get recruits at $4000 a month four times the regular pay. Russia is also trying to get soldiers from past wars to join who are 40 plus years old. This report looks at the situation in Russia as it tries to avoid a mobilization and declaring war- the current operation is called a Special Operation. Street by street fighting and building by building fighting is leading to a loss of Russian troops even after artillery barrages in cities and towns in the eastern region.

 

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The return of women to the workforce is tapping into the US economy's underlying strength, its services sector, even as rising inflation and higher interest rates pose recession risks, says the WSJ. In the competition for a limited pool of workers women are also getting pay raises, which in turn supports increased consumer spending and economic growth. More women in the workforce will ease worker shortages and help cool inflation. Still barriers remain. About 5 million people were not working because of children who are not in childcare or school, according to the US Census Bureau.

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Mail in ballots in the vote for the US Senate in Nevada will pay a crucial role for Democrats to control the Senate. Some reports say Democrats who are running at about 61% in mail in ballots could make it through if they get 55% to give Ms. Cortez Masto the Democrat a seat in the Senate. With Arizona leaning Democrat this would give the Democrats control of the Senate even before the runoff election in the third undecided state of Georgia in December. So close has been the struggle for the US Senate.

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Biden's student loan cancellation plan is targeted at low income people who are struggling to make a living and for whom it means putting less food on the table. The plan eliminates the debt of millions of borrowers because about one third of borrowers owe about $10,000. The plan cancels $10,000 in debt for people making below $125,000 and extends this to $20,000 for the poorest borrowers who received Pell Mell grant loans. A Columbia University study shows that the loan default rate for borrowers without a college degree is 40% and that for borrowers with a college degree is 8%. Biden said when unfolding the plan that these people have the worst of both worlds no college degree and student loans to pay off. College degrees give borrowers a much higher income. Biden's plan is to also cap payments on loans to 5% of discretionary income as opposed to 10% or 15% that it is today. The effects are also not understood by most economists. For a society to do well over the next 10 years to 20 years, 2030 or 2035, it has to increase opportunities for all its citizens. Young people with these burdensome loans grew up in a period when unrestrained so called "free markets" distorted markets and manipulated public opinion to favor a small segment of the people, leading to a false concept that 12 years of universal instruction were enough. Biden pointed this out and the importance of higher education beyond these 12 years to compete in the world in manufacturing and technology. The income and wealth generated by this investment in the people is what made America what it was in the early post war years. The income and wealth created will more than pay for not just removing a big part of this burden but also extending universal instructiuon beyond 12 years in future legislation. Rerouting some of the waste in capital allocation of so-called "free markets" alone could more than pay for most of these investments, with extra for additional investments in science and technology that would make the US what it was, the most advanced and highly educated society in the world. ...

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The Italian government's austerity measures and changes to promote economic growth are facing criticism including the threat of a general strike by the CGIL trade union. Italy's business lobby Confindustria, said the government plan for new taxes on incomes above 90,000 euros of 5%, and on incomes above 150,000 euros of 10%, over three years, risks sending Italian management talent overseas. Ferrari chairman told the daily, Corriere della Serra, the government's plan does not address tax evasion and other structural problems in the Italian economy. The head of Italy's largest trade union, CGIL, expressed her opposition to the plan to let companies and unions make their own contracts that opt out of rules that make it illegal to fire an employee without "just cause."

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Shortcomings in the revised bailout plan that was voted down yesterday.

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This report in the WSJ shows American households are acting prudently by building up savings of $1.6 trillion, according to the Federal Reserve Bank of New York. As much of these savings are not distributed evenly across the population, and coming back from a period after the 2009 financial crisis when savings in the lower classes had dropped to alarming levels, this saving is good for the future of the American people by building a path to sustained growth for the long term. Readers responses to this report show their dismay at calling savings hoarding, dismay at the idea that saving 3-6 months of expenses would be considered prudent when 1-2 years would be a minimum  and 2-3 years desirable would be considered decent protection in times like the last 2 decades of manmade disasters (shipping out American manufacturing, 2009 financial crisis) or nature driven disasters (the pandemic). For the Biden administration the saving also provides hope that the mistakes of the last two decades and the 2009 period can be avoided. By targeting the $1 trillion in infrastructure spending plan to projects that build synergy throughout the economy and generate more growth for every dollar spent in a long term Renewal America project. Recent WSJ reports show this is happening. The $2 trillion Families and Workers Plan works in a similar way to bring hope in improving the quality of life in America through children's education, childcare, paid leave, health care, affordable housing, climate change investments. The public in America is showing equal prudence by aligning the savings to this approach to set America on a path of long term renewal and development that could be sustained to 2030 or 2035. This will also enable the investments needed to build America's role in the world and help its partners in Europe, Asia, Latin America and Africa take the same approach for sustained and balanced growth into the next decade.  ...

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S. Korea's Ministry of Science, ICT, and Future Planning setup in 2013 and the 15 year plan to promote internet startups. The purpose of the plan is to persuade new graduates that opportunities exist outside the big conglomerates like Samsung and provide new resources for startups. Five ministries in S. Korea are engaged in this effort and have budgeted a total of $3 billion to help tech developers.

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The chief economist for the Conference Board says the economy faces serious headwinds as about half of the growth or +2.44 % came from inventory changes in the latest BEA numbers. These numbers, adds Gordon of Northwestern University, are likely to wind down and only consumer spending is serving as a factor holding things up. Exports are playing less of a role than needed and the state and local governments will continue to play a negative role as their budgets are being cut.