Letter from the Editor

Dear reader, The last days of the Obama administration are giving way to a new Republican administration. For new appointments in the incoming Trump administration see our top stories on Trump and Wall Street, and on Trump and the trade unions. Appointments at Treasury, National Economic Council, Commerce and other key economic positions showed business as usual, as if the investment banking bashing had never happened in 2015-2016. An NYT report on the EPA appointment cites heads of electric utilities saying the shift from coal was here to stay regardless of the incoming Trump administration, as electric companies such as AEP in Ohio were making investments based on looking further out 20-30 years from now. A shift to clean energy is what CEO's see happening in that long time frame. After all the China bashing in 2016, the new appointment of Iowa governor Terry Branstad brings a familiar face to Beijing reminding president Jinping of his days spent in Iowa years ago. Vince Preibus, Chief of Staff, and Mike Spence, head of the Transition, appear to have guided the appointments so that they look similar to other appointments in other Republican administrations. The question remains how well they can deliver on growth, and reports in the Wall Street Journal, including one by Greg Ip, show this will be harder now than when the Reagan administration took over after sluggish growth in the Carter administration. Ian Talley in WSJ cites trade expert William Cline on the paradox of a widening trade deficit with U.S. exports being hurt by a dollar that has surged 11% in the last 2 years, just when Trump hopes to improve the trade position. The picture looks different when if comes to foreign policy and defense. The appointments of military officers at Defense, Homeland Security, National Intelligence, and considering Gen. Petraeus at State Department, led to questions on whether civilian oversight traditions were being undermined. After the difficult period of hacking in the 2016 U.S. presidential election other issues loom for 2017-2018. Within Congress and the Republican Party there appears to be strong sentiment that hacking by Russia or any other country to interfere in the election process is unacceptable. With elections in France and Germany in 2017 this issue will become prominent, especially with U.S. Congressional hearings. The situation in Europe is gradually turning in favor of Chancellor Merkel of Germany. After the CDU convention reporting in DW.com show Merkel winning the election if held now. In Austria the independent candidate with Green Party support won the presidential election. Strong support for Francois Fillon of the Republican Party, and Fillon's appeal to Catholic France shows a similar shift. This gives a boost to the European Union when it most needs it, after the Brexit vote.