“The United States is competitive to the extent that firms operating here do two things: win in global markets and lift the living standards of the average American. The U.S. economy is doing the first of these but failing at the second”

Michael E. Porter

Said : Harvard’s Michael E. Porter, Bishop William Lawrence University Professor, based at Harvard Business School, and co-chair of HBS’s U.S. Competitiveness Project. “This is a critical moment for our nation. Business leaders and policy makers need a strategy to get our country on a path towards broadly shared prosperity,” according to a news release by the Harvard Business School.

According to findings of the third alumni survey (2013–14) of Harvard Business School (HBS), on U.S. competitiveness, "large and mid size firms have rallied strongly from the Great Recession, and highly skilled individuals are prospering. But middle- and working-class citizens are struggling, as are small businesses." The report on the findings of the survey titled "An Economy Doing Half Its Job" argues that such a divergence is unsustainable. After exploring its root causes, the authors examine actions that might mitigate it. They opine that in order to create a U.S. economy in which firms both thrive in global competition and lift the living standards of the average American, the US business leaders must focus on hugely enhancing their contribution to support : students and schools (education), workers and small businesses to develop workplace skills (skill investment), and to increase the nation’s mobility and opportunities resulting from mobility. (transportation infrastructure). 

The reports notes that "the recent divergence of outcomes, with firms (especially larger firms) thriving and workers struggling, is unusual in the United States. Historically, American companies and citizens have tended either to thrive together, as in the boom after World War II, or to suffer together, as during the Great Depression." 

The report clearly states that : "business leaders must act to move from an opportunistic patchwork of individual projects toward strategic, collaborative efforts that make the average American productive enough to command higher wages even in competitive global labour markets. Without such actions, the U.S. economy will continue to do only half its job, with many citizens struggling. Businesses cannot thrive for long while their communities languish."

Overall, the survey findings on the U.S. business environment depict an economy that is on the mend in a cyclical sense and is faring better than some other advanced economies, but is not structurally equipped to do its full job: the prospects for broadly lifting living standards are dim, and smaller businesses, important job generators in the U.S. economy, are especially disadvantaged.

"ANY LEADER WITH A LONG VIEW UNDERSTANDS THAT BUSINESS HAS A PROFOUND STAKE IN THE PROSPERITY OF THE AVERAGE AMERICAN."

Another interesting finding has been that younger U.S. workers have better literacy skills than older workers bu the main challenge to America, however, is that America has among the most literate 55- to 65-year-olds in the world, but the same is not true of younger cohorts.

"WORKERS ARE CAPTIVES OF THE WEAKEST ASPECTS OF THE U.S. BUSINESS ENVIRONMENT, WHILE FIRMS ARE THE BENEFICIARIES OF AMERICA'S GREATEST STRENGTHS."

“Short-sighted executives may be satisfied with an American economy where firms operating here are winning without lifting U.S. living standards,” said Professor Porter. “But leaders with longer perspectives understand that companies can’t thrive for long while their workers and their communities struggle.”

This is the first time since the end of World War Two that one European country has tried to grab another’s territory by force. Europe must not turn away from the rule of law to the rule of the strongest. This is vital for peace and security in the world.

Anders Fogh Rasmussen and Petro Poroshenko at the press conference during the NATO Summit

Said : Anders Fogh Rasmussen, NATO Secretary General, at a Joint press conference with the President of Ukraine, Petro Poroshenko during the NATO Summit held in Newport, Wales, reported NATO news release.

"What is happening in Ukraine has serious implications for the security and stability of the whole Euro-Atlantic area. We stand united in our support of Ukraine’s sovereignty and territorial integrity within its internationally-recognized borders."

"Russia is now fighting against Ukraine, in Ukraine. Russian troops and Russian tanks are attacking the Ukrainian forces. And while talking about peace, Russia has not made one single step to make peace possible. Instead of de-escalating the crisis, Russia has only deepened it." - Rasmussen

"We strongly condemn Russia’s repeated violations of international law. Russia must stop its aggressive actions against Ukraine. Withdraw its thousands of troops from Ukraine and the border regions. And stop supporting the separatists in Ukraine," he added.

Rasmussen said : "We call on Russia to reverse its illegal and illegitimate self-declared “annexation” of Crimea, which we do not and will not recognize."

Calling Ukraine an important and distinctive NATO partner, Rasmussen said : "This is the first time since the end of World War Two that one European country has tried to grab another’s territory by force. Europe must not turn away from the rule of law to the rule of the strongest. This is vital for peace and security in the world."

The two leaders also answered questions from the media regarding Ukraine's NATO membership.

‘I can take Kiev in two weeks if I want’

Putin on 29 August, the day he spoke to Barroso. [Kremlin]

Said : Vladimir Putin, according to a number of media reports appearing with this quote claimed to be originally published by the Italian daily La Reppublica. 

According to a European news website 'EurActiv' : "La Reppublica has published what appears to be the account of Prime Minister Matteo Renzi, of an exchange held at the 30-31 August EU summit. Commission President José Manuel Barroso is reported to have told EU leaders that Vladimir Putin had informed him that he could take Kyiv in two weeks if he wanted. The exchange, according to La Reppublica, took place after Ukrainian President Petro Poroshenko left the summit table, having made a dramatic account of the situation in his country.

José Manuel Barroso

Meanwhile, the outgoing European Commission President Barroso, breaking his silence, shared what Putin told him over their last telephone conversation, held on 29 August. According to EurActiv, Barroso said he held Putin accountable for the military action of the separatists in Ukraine. At this point, Putin erupted: “The issue is not this. If I want, I can take Kiev in two weeks,” he is reported to have said.

A Kremlin foreign policy aide, Yuri Ushakov, commenting on Putin’s statement didn’t deny that Putin had said the Russian army could capture Kyiv within two weeks, but said the words were “taken out of context” and had a totally different meaning," reported EurActiv.

“I want to remind you that Russia is one of the most powerful nuclear nations. This is a reality, not just words.” : Putin had warned a few days ago.

European leaders have already expressed their fears that the next target of Russia after Ukraine could be EU members Lithuania or Estonia. 

China's GDP is five times that of India's. Mutual trust between Beijing and New Delhi, facing strategic pressure from the north, is difficult to build as there is also an unresolved border conflict between the two.

Said : The Global Times in its OP-ED of today. The Global Times is owned by The People's Daily, an official newspaper of the government of China.

Modi delivering his Keynote Address

The editorial titled "Modi-Abe intimacy brings scant comfort" makes note of Modi's remarks that "Japan and India should strengthen strategic cooperation to promote peace and prosperity in Asia and meanwhile counter an expansionist mind-set," as clearly directed at China without naming it. But the editorial describes Modi's statement as 'predictable' for creating the media hype required to be in tune with India's national interests.

"Everywhere around us, we see an 18th century expansionist mind-set: encroaching on another country, intruding in others' waters, invading other countries and capturing territory," Modi said in a speech to business leaders in Tokyo.

Modi, in his Keynote Address at the Business Luncheon in Tokyo yesterday said India would follow developmental policies (and NOT expansionist policies) in partnership with Japan. The statement is being seen as an indirect snub to China and also Russia for their territorial ambitions without naming them.

"Everywhere around us, we see an 18th century expansionist mind-set : encroaching on another country, intruding in others' waters, invading other countries and capturing territory."

In order to show that Beijing has taken Modi's statement in a good spirit, the Global Times editorial argues that rationally, policy and strategy of a big country are shaped by its national interests and "India has proved it is a rational country, displaying an independent foreign policy and loathing being an appendix of any particular power." The editorial goes on to say : "Plus, India cherishes peace. The consensus between China and India has become stronger over not letting border issues shadow a bilateral relationship. The positive India-China relationship has also created conditions for rapport between India and Pakistan."

The editorial, however, has some rough and tough words also in response to Modi's speech which have to be taken into account in their real perspective.

Acknowledging that the Mutual trust between China and India was difficult to build it noted : "China's GDP is five times that of India's. Mutual trust between Beijing and New Delhi, facing strategic pressure from the north, is difficult to build as there is also an unresolved border conflict between the two."

Undermining the new Indo-Japan partnership, the OP-ED says : "The increasing intimacy between Tokyo and New Delhi will bring at most psychological comfort to the two countries. What is involved in China-India relations denotes much more than the display of the blossoming personal friendship between Modi and Abe. After all, Japan is located far from India. Abe's harangue on the Indo-Pacific concept makes Indians comfortable. It is South Asia where New Delhi has to make its presence felt. However, China is a neighbor it can't move away from. Sino-Indian ties can in no way be counterbalanced by the Japan-India friendship."

The editorial opines that the geopolitical competition is not the most important thing for China and India, at least at present because of the fact that both are new emerging countries and members of BRICS and have plenty of common interests.

The OP-ED ends with a sweet-n-sour conclusion : "China-India relations are stable. Chinese President Xi Jinping will pay a state visit to India later this month and the only country Chinese leaders won't visit in the near future is Japan. If Japan attempts to form a united front centered on India, it will be a crazy fantasy generated by Tokyo's anxiety of facing a rising Beijing."

Watch Narendra Modi's Full speech (In Hindi)

Japan has no option but to fuel inflation

Said : Fumio Nakakubo, Chief investment officer for Japan at UBS AG’s wealth management division, according to a Bloomberg news report. 

"Japan's economic position is like a person with a debt burden of $1.2 million who is spending all his $53,000 salary and still borrowing $40,000 a year."

"The yen must drop to about 120 per dollar to spark the increases in consumer prices needed to reduce Japan’s debt load. Japan has no option but to fuel inflation (not hyperinflation) to reduce its borrowings. No matter how much we pump up the economy, that alone probably won’t be enough, so we have to weaken the yen. There is no other way."

The above opinion was expressed by Fumio, as per the news report.

“Even countries that criticize us, when the chips are down, they know who to call”

Said : President Obama at the American Legion’s National Convention in Charlotte, N.C. today. He told veterans that airstrikes against ISIS must be part of a broader strategy. 

Obama speaking at the American Legion’s 96th Annual National Convention
(Photo by Lucas Carter:Source)

According to ABC News, Obama approved U.S military surveillance flights over Syria to track the Islamic militant group ISIS. Obama warned ISIS that the killers of American journalist James Foley will be hunted down. Foley was beheaded allegedly in retaliation for the U.S. air campaign, and after a $100 million ransom demand was rebuffed.

“Our message to anyone who harms our people is simple. America does not forget, our reach is long, we are patient, justice will be done,” he said. “We have proved time and time again we will do what’s necessary to capture those who harm Americans -- to go after those who harm Americans. And we’ll continue to take direct action where needed to protect our people and to defend our homeland.” 

Clinton "will be very formidable" but "beatable."

Said : Rep. Paul Ryan, the Republican vice presidential nominee in 2012, reported CNN in today's story "Obama 'third term' label concerns some with Clinton ties" by Dan Merica quoting Ryan's interview with USA Today.

"I think she is beatable because the record is not very good," Ryan said in an interview with USA Today. "I don't think people are going to want to have an Obama third term and no matter how she tries to shake that label, she won't be able to," said Ryan.

It is widely being believed that if Clinton runs and gets elected then her presidency would be nothing more than President Barack Obama's third term. CNN quoted Clinton's friend and a former aide as saying that the best way to go after Clinton was to use this against her : "If you like Obama, you will love Hillary."

"She was in his government, she was at his side," said the source. "That is, the way to go after her is four more years of the same old thing. The question they should ask her is 'Tell me 10 things that you disagree with him on.'

Adrienne Elrod

The "third-term Obama" question is expected to become a hot issue. Republicans would want voters to think Obama and a third term, not the third term of Bill Clinton who is still more popular.

However, defending Clinton strongly, Adrienne Elrod - spokeswoman of Correct the Record, a pro-Clinton communication and rapid response group launched last year in November - said : "As a leading voice in the Republican 'do nothing' Congress, Paul Ryan is the last person who should be dishing out political advice. Hillary Clinton is one of the most admired and trusted public figures in America and should she run for President, she will run on her own record and implement her own vision for moving our country forward," reported CNN.

Adrienne Elrod : I've taken a new position with Correct the Record, a new effort to push back against negative misinformation aimed at potential 2016 presidential candidates.

In June, shortly after Clinton's memoir "Hard Choices" hit bookshelves, the Republican National Committee released a video with the Web ad flashing a simple message : "Hillary, Obama's Third Term."