Spain plans new elections in Catalonia to end independence bid: opposition


The Socialists, the main opposition, said on Friday they would back special measures to impose central rule on the region to thwart the secessionist-minded Catalan government and end a crisis that has unsettled the euro and hurt confidence in the euro zone’s fourth-largest economy.

Prime Minister Mariano Rajoy, who wants opposition support to be able to present a united front in the crisis, has called an emergency cabinet meeting on Saturday to pave the way for Madrid establishing central control in the region.

Source: Spain plans new elections in Catalonia to end independence bid: opposition

Making Economic Sanctions on North Korea Work by Yasheng Huang | Project Syndicate


US President Donald Trump’s administration understands the central importance of China to any strategy to rein in North Korea’s nuclear ambitions.

But, so far, the US has relied on threats, such as halting $650 billion in bilateral trade, to persuade China to cooperate. This is not a stick, but a boomerang – one that will hit China and immediately return to smack the US.

What is needed instead are carrots.

Source: Making Economic Sanctions on North Korea Work by Yasheng Huang – Project Syndicate

Indian telcos’ missing focus on R&D is hurting them | Livemint


Not a single breakthrough technology in telecom has come out of India, which should have served as the perfect crucible for experimentation.

The numbers are appalling. In the list of 50 top applicants that filed under the World Intellectual Property Organizations Patent Cooperation Treaty (PCT), a list dominated by telecom companies like ZTE Corp., Huawei Technologies and Qualcomm Inc., there isn’t a single Indian name. (http://www.wipo.int/export/sites/www/pressroom/en/documents/pr_2017_804_annexes.pdf#annex2)

Even worse, a report by Thomson Reuters last year named Samsung, Huawei, LG, State Grid Corp. of China, ZTE, Qualcomm, Ericsson, Sony, NTT and Fujitsu as the top 10 global innovators in the telecommunications industry for 2015. No mention again of an Indian telco.

Source: Indian telcos’ missing focus on R&D is hurting them – Livemint

US wants stronger India economic, defense ties given China’s rise, Tillerson says


Speaking on Wednesday, less than a month before President Donald Trump is due to make his first state visit to China, Tillerson said the United States had begun to discuss creating alternatives to Chinese infrastructure financing in Asia.

In another comment likely to upset Beijing, he said Washington saw room to invite others, including Australia, to join U.S.-India-Japan security cooperation, something Beijing has opposed as an attempt by democracies to gang up on it.

“The United States seeks constructive relations with China, but we will not shrink from China’s challenges to the rules-based order and where China subverts the sovereignty of neighboring countries and disadvantages the U.S. and our friends,” Tillerson told the Center for Strategic and International Studies think tank.

Source: US wants stronger India economic, defense ties given China’s rise, Tillerson says

Why Supply-Side Economics Is Right And Keynesian Economics Is Wrong


Undeterred by such failures, these economic models remain entrenched in academia and political institutions. Worse, policies like food stamps, minimum wages, government training and workforce programs, and government spending are at least partly advocated to boost growth, when in fact they accomplish the opposite.

The truth is that work and value-adding production make an economy prosper, and eliminating disincentives to doing so, such as high taxation and regulatory burdens, stimulates growth. But until we discard the idea that demand is the driver of economic performance, our policies will continue to do more harm than good.

Source: Why Supply-Side Economics Is Right And Keynesian Economics Is Wrong

How Economic Clusters Drive Globalization


“The cluster concept is often used to consider local factors,” Valeria Giacomin says, “but there’s a growing awareness that many clusters are also driven by external forces, such as foreign direct investment and multinational corporations, which results in a connection that occurs through knowledge exchange on the local level or across wider cluster networks.”

In that sense, she says, clusters become platforms for development, which has present-day implications for corporations, governments, and individual actors, especially in emerging economies.

Source: How Economic Clusters Drive Globalization

Homeland Security sees power grow under Trump | TheHill


Former department officials in both parties say it’s no surprise that Homeland Security’s power has grown under Trump, but they see it as remarkable nonetheless.

“The administration’s priorities overlap with the department’s missions pretty aggressively,” said Stewart Verdery, a former DHS assistant secretary of policy during the George W. Bush administration.

“It should be no surprise that DHS is front and center of his priorities, and the fact that Kelly has switched jobs now kind of doubles down on that.”

Source: Homeland Security sees power grow under Trump | TheHill

Bitcoin rockets above $5,000 to all-time high


“Bitcoin was designed to operate outside of the influence of governments and central banks, and is doing exactly that,” said Iqbal Gandham, Managing Director at retail trading app eToro, which has seen huge increases in cryptocurrency trading volumes.

Source: The Future Of Money

The trade deficit is not destroying jobs, but tearing up NAFTA will


The data point for the U.S., indeed, fits the White House narrative: During that period, the U.S. lost manufacturing jobs while its trade balance deteriorated (as all other countries in the lower left panel).

However, that is not the story for most countries. In fact, Mexico increased its share of workers in manufacturing even though its trade balance also deteriorated during that same period.

But most, importantly, most countries—in the lower right panel of the figure—lost jobs in manufacturing even if their trade balance improved.

In short, the White House is trying to sell a fallacy that the trade deficit has destroyed American jobs.

Source: The trade deficit is not destroying jobs, but tearing up NAFTA will

Siemens plans more cuts at Power & Gas business


The Power and Gas business is struggling with lower worldwide demand for the large electricity generating turbines that Siemens specializes in.

The company reported a 41 percent drop in orders and a worse than expected 23 percent fall in profits in its fiscal third quarter that ended in June.

“In light of the dramatic changes seen across the global fossil power market, new cost-cutting measures are required in our view,” Barclays analysts said in a note.

Source: Siemens plans more cuts at Power & Gas business: source