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America Follows Europe to the Right

NYT: China and India are set to be the world’s innovation hubs. FT: France and Britain finally agree to trust one another. Hindu: Obama will need to reset US-India relations

Americans vote no to Obama’s unlimited government

Columnist George Will writes in the Washington Post that Tuesday’s mid-term elections in the United States represent the country’s rejection of President Obama and his unlimited government.

QUOTE: Is political power - are government commands and controls - superseding and suffocating the creativity of a market society's spontaneous order? On Tuesday, a rational and alarmed American majority said "yes."

China and India are set to be the world’s innovation hubs

Columnist Thomas Friedman writes in the New York Times that China and India look poised to be the innovation hubs of the new world. He writes that skilled technologists and entrepreneurs in India are set to become hugely successful by solving the everyday problems of the poor.

QUOTE: If you thought the rate of change was fast thanks to the garage innovators of Silicon Valley, wait until the garages of Delhi, Mumbai and Bangalore get fully up to speed. I sure hope we’re ready.

The West shifts to the right as voters yearn for financial security

Senior editor Barbara Martinez writes in GlobalPost that the strong gains for US Republicans in Tuesday’s election show that America is joining much of the West in moving to the political right. She argues that a yearning for financial security unites right-wing parties in the United States and Europe.

QUOTE: In both places, the result is the same: shifting power to those who plan to shrink the size of government, which voters interpret as a step toward financial security.

Quantitative reasoning threatens emerging markets

Martin Feldstein, professor of economics at Harvard University, writes in the Financial Times that the US Federal Reserve should not risk following through on a policy of quantitative reasoning. It threatens to create asset bubbles that would destabilize the global economy.

QUOTE: The problem now extends to emerging markets, a group not directly affected in the last crisis. The lower US interest rates are causing a substantial capital flow to those economies, creating currency volatility.

G-20 must strengthen international institutions

Yoon Young-kwan, South Korea's former foreign minister, writes in Project Syndicate that international institutions such as the International Monetary Fund and World Bank must be reinvigorated at the upcoming G-20 summit to effectively bring about a global economic recovery.

QUOTE: We need their help to implement norms, principles, rules, and decision-making procedures, thereby mitigating the endemic free-rider problems in quasi-anarchical international society.

Japan’s deteriorating economic outlook does not bode well for the yen

Kieran Osborne, co-portfolio manager of the Merk Absolute Return Currency Fund, writes in the Asia Times that the yen’s strength should not be trusted because of the severity of Japan’s economic troubles.

QUOTE: Make no mistake about it: Japan may face a very scary future going forward, and it may only be time before these risks are adequately factored into the price of the Japanese yen.

Follow Europe’s lead in spending cuts

Columnist Jeff Jacoby writes in the Boston Globe that answers to solving global debt problems can be found in Europe. Across Europe, governments are choosing to implement austerity measures. These countries are seeing faster growth and lower unemployment levels than the United States, which continues to focus on public spending initiatives.

QUOTE: [European] governments have deliberately rejected Washington’s embrace of massive deficit spending as the best way to rev up an ailing economy — with better outcomes than Americans have seen.

France and Britain finally agree to trust one another

Gérard Errera, France’s former ambassador to the UK and now special adviser to the Blackstone Group, writes in the Financial Times that the new defense treaty between the UK and France should be welcomed. Errera writes that it is about time this level of cooperation and trust is taking place; now the countries must focus on implementation.

QUOTE: The distinct military needs and culture on each side, the industrial and employment problems posed by co-operation in defense procurement and the technical complexities in each area of collaboration are formidable obstacles.

Democrats must take lessons from this election

Evan Bayh, a Democratic senator from Indiana, writes in the New York Times that the Democrats and President Obama must learn from the mid-term elections before moving forward and focusing on 2012. They must realize that they should have focused on job creation before healthcare reform, and they should have appealed more to moderate swing voters.

QUOTE: We have more than a communications problem — the public heard us but disagreed with our approach. Democrats need not reassess our goals for America, but we need to seriously rethink how to reach them.

Obama will need to reset US-India relations

Former diplomat M. K. Bhadrakumar writes in the Hindu that US-India relations will be due for a “reset” to deepen the partnership between the world’s two biggest democracies when President Obama visits India this week. He writes that much has changed since an American president visited India, including the global economy, China’s influence, and the nature of the war in Afghanistan.

QUOTE: Hasn't something fundamentally changed in the world order since the international financial crisis erupted? The emerging powers have shown unexpected resilience to pull through the crisis while the industrial world continues to languish.