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Nour Malas and Joe Parkinson report from the town of Makhmour, retaken by Kurdish Peshmerga forces following airstrikes on ISIS militant positions. The crisis situation 20 miles from Erbil, capital of the Iraqi Kurdistan region and the coordination between Iranian advisors, U.S. military advisors, and the Peshmerga to push back the ISIS. Peshmerga say young Sunnis in the town joined the ISIS in droves, something never seen before. It also reveals the situation after the failure of the Maliki administration to build a state with support from all parts of the Iraqi population- Shiite, Sunni, Kurds and tribes- leading to the radical alienation of Sunnis. The late awakening of Iran, the U.S., and moderate Iraqis both Sunni and Shiite, to the dangers of the Maliki policies. The unraveling of the decade of Iraq rebuilding by the U.S. in such rapid manner leads to the stepping down of Maliki and beginning of a new non-sectarian approach and policies. The vacillating in the Obama adminstration's policies towards Syria and Iraq leads to a lack of direction in the region. ...

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Krugman points out that a centrist solution is not the panacea it sounds. A lot depends on what it is and what is seen as centrist, if it really is centrist, and if it makes sense. A centrist proposal that leaves out tax expenditures but is different from the positions staked out by the factions on both sides of the political spectrum, and sounds moderate may not be the right solution.

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House Majority Leader Eric Cantor talks with Joseph Rago of the Wall Street Journal. There is a fundamentally different world view between Obama and Cantor. Cantor does not hesitate to present his view and says President Obama did not like to be challenged on policy grounds in debt negotiations, leading to the famous "I'll call your bluff Eric" remark by Obama. Cantor sees no chance of reaching an agreement with Obama that would go towards solving the fiscal crisis and feels it would be best to focus on incremental wins. He says of the Obama-Boehner deal that it did not address the problems with Social Security and Medicare. Without the transformational changes that are needed in those programs he did not think it was worth the cost. Cantor is mainly responsible for the Republicans not agreeing to include revenue increases in the negotiations or the final deal. Cantor says the super-committee part of the deal which has to come up with savings, will only lead to incremental progress- considering the huge divide that separates their world view and that of President Obama. The real fight says Cantor is to prevent President Obama from getting re-elected....

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The Washington Post-ABC News poll of August 29- Sept 1, shows 60% of respondents disapprove of the way the Obama administration has handled the U.S. economy. Of these 60%, half "strongly disapprove." Two to one the respondents say they are worse off today financially than at the beginning of Obama's term in 2008. This is the response to the famous Reagan question for Jimmy Carter- "are you better off today?" On the issue of the size of government and services, only 38% of respondents say they want to see a larger government with more services, and 56% say they want to see a smaller government with less services.

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The Volcker rule is named after former chairman of the Federal Reserve, now 82 year old Paul Volcker. In its complete form it would ban banks from investing in trading activities. But with Treasury Secretary Geithner and economic advisor Summers being part of the team that supported deregulation in banking, the Volcker rule was put in a diluted form in the proposed financial reform bill. Only after it was supported by financial leaders with long years of experience, such as John Bogle, Nicholas Brady and William Donaldson, and with active participation by Volcker, did the Volcker rule in a modified form get the support of Congress and the White House. What grade does it get from Paul Volcker? A B not even a B+ says Volcker. Volcker regrets his earlier silence on this issue. His view is that there is a sense of nervousness about the long term, and this is justified. He says a lot will depend on a 10 member regulatory council that is created by the bill, and all depends on how tough and vigilant it is on a day to day basis with the banks. Analysts share Volcker's concern about "the certain circularity in this businesss," where things are going well for some time followed by another crisis. Volcker's concern is that the bill doesn't prevent bank's from getting into activities such as investing in hedge funds and other similiar activities....

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Flexibility from the IMF, the ECB and the EC in negotiating new terms for Greece after the June 2012 elections and initial efforts for revising the March 2012 loan agreement.

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Greek tax evasion is estimated by three economists who studied data from Greek banks at about $11 billion based on a 40% tax rate, a third of the country's annual deficit for 2009. Unreported income is estimated at $28 billion. Doctors, dentists, lawyers, architects, engineers are the biggest groups underreporting income. Greece's parliament took up a bill in 2010 but the bill failed because of oposition from these groups. It remains to be seen if the Samaras government with support of the IMF-EC can take action similiar to that taken by the Monti government in Italy to go after tax evaders. By cutting the minimum wage and incomes of lower income groups disproportionately compared to cracking down on tax evasion and protecting incomes of higher income groups the economic plan for Greece proposed by the IMF-EC and the Greek government becomes unworkable and threatens the social fabric. By not raising this issue Germany's media and government have appeared callous in their pursuit of austerity measures as working class Greeks protested in Athens in 2011-2012, even though some of the issues raised by the Germans are legitimate. France and Italy are imposing a wealth tax to cut the deficit but this is not taking place in Greece. Global financial media has also not reported adequately on these aspects of the problem in Greece and Italy....

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This editorial in the NYT calls for the IMF and the EU to rip up their I.O.U.'s after five years of debt negotiations with Greece and a contracting Greek economy. German public opinion looks at it differently having shifted to favoring Greece's exit from the euro. Chancellor Merkel says "if the Euro fails, Europe fails," what she means by this is that the economic responsibility of countries in the eurozone is a condition for the Euro to succeed. The two sides are far apart as Greece faces a "yes" or "no" vote to remain in the eurozone in the July 5, 2015 referendum.

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Liberal groups feel president Obama has lost the leverage he had after the McConnell-Biden fiscal cliff deal of Jan. 1, 2013, saying this only sets the stage for talk of spending cuts.

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IMF research by Ocampo and Erten shows that when adjusted for inflation since the 1970's, the prices of metals have remained about the same, food prices down 58%, and energy prices up 163%.

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A WSJ/NBC poll of Sept 20, 2012 showing Obama with a eight percentage point lead in Iowa, and a five point lead in Colorado and Wisconsin.

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A Infratest Dimap opinion poll for broadcaster ARD shows 70% of Germans rating finance minister Schauble's work positively in July 2015.

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How Northwestern University Kellogg School's Inaba Yoshimi is trying to turnaround Toyota's performance in China. Toyota is a latecomer in the China market and cultural hurdles hamper Japanese managers in China. Because Toyota dealerships in Japan use a salesforce that gets income from salary and does not depend on commissions, selling only Toyota cars, the Japanese experience seemed irrelevant to China. The experience of Toyota in China is more like the experience in the U.S. market with a sales force earning income from commissions and dealers selling many brands. In other respects China's market is different from the U.S. The Chinese market is growing very fast, and millions of cusomers are joining the carowning population, all first time buyers in an internet information intensive environment with savy informed customers. Keeping the salesforce motivated and interested in selling Toyota cars is a challenge in China. Also how to allocate cars to dealers based on how many cars move off their lots, and how to buildup a large network of Toyota dealerships and widen the range of product available in China. Management challenges have been tackled by bringing experienced veteran managers from the U.S. to China, who are culture neutral and are seen positively by the Chinese managers and staff. General Motors has a big headstart in China and is marketing to the younger demographic in China. Median age of Chinese buyers is 35 years age. See the related article on Chinese buyers and what drives their buying habits in article by Bremner in Business Week, May 17, 2006....

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Anne- Marie Slaughter's new book Unfinished Business is reviewed by Laura Vanderkam. Ms. Slaughter says in her new book that part of the unfinished business for women in the workplace is to give women time for child care duties in a way that does not hurt their careers. Anne Marie makes the case on the grounds that this is a social bias. Yet there are many reasons beyond simple fairness, and the value of parental work. Women can contribute to society in different ways than men. For example reports show women are more interested in using technical skills in ways that will benefit developing countries. Women bring a different perspective than men. Women are also prominent in scientific fields. For this contribution to grow and enrich society it can be enlarged by giving women proper benefit for maternity leave, and preserving the ability to come back and contribute in the same way after the maternity leave period is over. Toshiba did this for a female engineer who had made significant contributions in the technical field. Doing this would also help in other ways. It could make it more attractive for women to have kids knowing it will not hurt their careers or the careers of their partners. This is needed in western societies with falling birthrates and declining number of young people to support larger numbers of older people....

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The head of France's intelligence service says France faces a threat from radicalized Muslims inside the country, and from French citizens who are fighting in Syria and Iraq returning to the country. While the number of Americans going to Syria or Iraq is said to be declining this is not the case with France.

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Prime minister Manmohan Singh moves forward with moves to open up the retail sector to foreign investment and other steps to attract foreign investors. In a televised address he appeals to Indians to support his government's efforts to reduce the deficit by increasing diesel prices, placing caps on cooking gas subsidies, and open up the retail sector to foreign investment. Singh's coalition will survive with a parliamentary majority after the withdrawal of a party based in W. Bengal state led by Mamta Banerjee, by getting the support of a party based in Uttar Pradesh state led by Mulayam Singh Yadav. Singh tells Indians: "we are at a point where we can reverse the slowdown in our growth. We need a revival in investor confidence domestically and globally.'' Earlier efforts to open up the retail sector to foreign investment failed because of Banerjee. Singh also warned Indians of the problems Europe is facing and the need for strong action to prevent a similar situation happening in India. India's political picture has changed since the days of Nehru and Indira Gandhi as no single party has support in all parts of the country, and federal governments in New Delhi are based on coalitions led by Congress party or the BJP party. Singh is known for his market opening moves as finance minister in a Congress led government in the early 1990's. Political strains and corruption scandals have weakened Singh's government in 2011-2012 leading to the lack of clear policies on the deficit and foreign investment, a situation Singh seeks to firmly correct. ...

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The military and the old order in Egypt, including the lack of an imaginative Muslim Brotherhood party, remains a stumbling block for Egypt's return to democracy and the constructive channelling of the people's energy.

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India and China agree to a legally binding deal on climate change and emissions that would be drafted by 2015, and take effect in 2020. This would bring them in line with or symmetrical with the U.S. and European countries for controlling emissions.

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This election is seen as a turning point for Britain. The Liberal-Conservative coalition has come up with a radical plan to cut spending and decentralize services in the areas of education, policing and health care. The plan is to cut the deficit quickly from 11% of GDP in 2009-10, to 2.1% in 2014-15. By comparison the outgoing Labor government's plan was to balance the budget by 2016-17. And the fiscal impact of Labor's budgets would have been 4% by 2014-15, compared to the Cameron government's looking at 6.3%, with larger and accelerated cuts in spending. It is something of a gamble by the Tory-Liberal government. If the severity of the cuts in spending stifle growth, then Plan B will be needed. The size of the cuts are not seen as feasible. With growing interest payments with the large borrowing by the government, and no real cuts in healthcare spending, departments delivering public services in Britain face cuts of 25% by 2014-15. With defense and schools limited to cuts of 10%- other departments would face cuts of 33%. According to the Institute of Fiscal Studies one way to reduce the severity of these cuts in department budgets, would be to find additional savings in the welfare budget. In June, Mr Osborne, the Chancellor of the Exchequer, announced 11 billion pounds in savings in this area (with half coming from using a different measure for inflation in calculating benefits). Additional savings of 14 billion pounds in welfare budgets, can reduce the size of the cuts needed in departmental budgets to 20%. One example cited is means-testing payments that go to the affluent as well as to poor people, such as child benefits, and cutting winter-fuel payments. Tories and Liberals agree on the need to decentralize government and services in the areas of schools, policing and the NHS. In schooling the idea is to give more choices to parents and children. Current schools can apply for academy status and new "free schools" will be run be non-profits, charities, churches, and parents. These schools will have freedom to set pay, select curriculum, and still receive state funding. In policing, the idea is to have directly elected police and crime commissioners for every constabulary in England and Wales. The elected commissioners would appoint constables and determine budgets and priorities. For the National Health Service the move is to give groups of general practitioners a significant role in the delivery of health care. ...