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Wednesday, May 24, 2006

Half Full

I recently posted why the glass is half empty when it comes to our dependence upon energy from other countries and the global instability we face. Here are some reasons to be hopeful for the future.

National Debt. If the debt was such a drag on our country, then why is the economy so strong? Foreign investments in the US ensure our own stability. The more invested in the US other countries are the less likely they are to do something adverse to the health of our country. Why would you sabotage your own investment?
It also makes the economy global. In other words the impact of large events is mitigated by the globalization of the worlds economies. When one country has a downturn there's a very good chance another country is having an upswing in equal proportions.

Our Borders. The outcry to secure the borders has finally reached a plateau high enough for our government to realize they must do something. It also has brought this subject out to debate on a grand scale. The more debate there is the better the chance of a comprehensive solution being found. It may not be the perfect fix, but you can bet it'll be something noteworthy.

Energy Dependence. Here's a actually a subject that could have a very good ending. With the price of oil through the roof and the political instability in regions that supply a large part of the worlds supply there is actually good news for the future. First for the US, we get most of our oil from Canada and Mexico. Those are 2 nations that we get along with and are less impacted by political instability in the middle east. Oil is now at a price that makes it economical to get it from places that required more effort to extract. Prime example, the oil shale deposits in the US and the oil sands in Canada. These will continue to be a rich source of energy reserves available. Alternative forms of energy are becoming more and more viable. Hydrogen, biodiesel, and ethanol are some examples. Hybrid vehicles are becoming more popular which will reduce our dependence on gas and oil. The result is less exposure to the wild fluctuations in the oil markets. It's a classic case of "Necessity is the Mother of Invention".

China. China is becoming more and more progressive in it's bid to open up to the rest of the world. Our engagement of China economically has provided the catalyst to set them on the road toward change. They have revaluated their currency a few times due to pressure from the markets and have been negotiating trade policies. As this exchange continues I would expect to see China more toward a more free society. It will take time, but look at what has been accomplished just since 1970. Formal trade relations and open policy discussions. These are big steps for a communist country.

Other countries. Although there are still hostile relations with other countries and a lot of newsworthy anti-United States remarks made by countries who are feeling their oats lately, we have strengthened relations with some countries who were on the fence when it came to the US. Germany in years past had been aligned more with France in their opposition to our policies but recent elections had placed into power a pro-US Chancellor in Angela Merkel. She was freely elected based upon her pro-US stance and that says the people of Germany want better relations with the US. Also, in South America there have been several countries that are telling Venezuelan Presidente Chavez to butt-out. They claim he is interfering with their elections by trying to have candidates he supports elected. Iran is making overtures to establish a direct dialogue with the US. Could it be they are feeling the heat? It could open the door to moderating the rhetoric coming from that country which would provide stabilization in that area of the world.
So for every negative, anti-United States event that happens there are other pro-United States events that even out the playing field.

Ying and Yang in the geo-political world.

Monday, May 22, 2006

More on politics..yawn..

Lately there's been a lot of chatter about the immigration issue. Should we build a fence? Should we position troops to enforce the borders? Should we make it a felony to enter this country illegally? What about the drain on healthcare and government assistance programs caused by illegal immigrants? "But they're only taking jobs Americans don't want. They're only trying to start a better life than what they had in Mexico. They're only trying to pursue the American dream."

The problem isn't that there are millions of immigrants here in the U.S. The problem is the government is ill equipped to handle the mass inflow of illegals coming to America every year. As such there is a toll taken on the ability of government programs to administer to all the people that have come here illegally. To want to come to the U.S. to start a better life for yourself and family is admirable, to break the U.S. law to do so is ironic. That is a portentous way to start your new life, under the shadow of darkness and evasion.

So what happens when the generosity of the federal government and it's funding of several programs is strained by the inflow of illegal immigrants who require medical treatment, living expenses, child care, food stamps, and social security? Larger debt, higher taxes, reduced economic growth, and a decrease in the governments ability to fund programs such as education, social security, defense, disaster relief and other programs that are essential. What happens when the demands of a population exceed the ability to finance those demands? Debt. When that debt becomes so heavy that there is no possible way that it will be repaid, there will be a day of reckoning that could cause serious financial consequences. It's a scenario that could affect countries across the globe unless this issue is addressed by clear, forward thinking people. What is needed is an immigration policy that allows the opportunity for immigrants to come here, while making sure they do so legally.

Now this may sound like a rally against immigrants but it's not. I support immigrants coming to the U.S. to start a new life, enjoy the freedoms we have, and participate in making our country stronger, but I favor it being done orderly and legally. There are people from other countries who do not share a border with the U.S. who have been waiting their turn to begin a life in the United States. After all we are a stronger nation for the diversity. However, we need to have a way to control the mass of people who are intent on coming to this country. To do any less could mean the deterioration of the country that has come to be known as the most prosperous nation on earth.

Monday, May 08, 2006

Are we concerned?

Lately it seems we should be more concerned than we are. There are several things that put this country in jeopardy but it seems everyone is afraid to address them with any sort of conviction. Of course there are the scholars and academia who publish opinions and research meant to try and enlighten us to the storm on the horizon but there are also many who raise warning flags so often we tend to ignore them as we would an irritating buzz. Here are a few things I think are issues that need to be addressed.

National Debt. Most of it is owned by countries that are not friendly to the US. What would happen if they decided to dump their holdings in a short span of time? We need to control spending and get our debt under control. Raising the debt ceiling every time we get close is not a solution, it's part of the problem. Kinda like a credit card company raising how much you can borrow because you're close to maxing out your debt. Of course the way congress spends our money is just like a teenager with a new credit card.

Our Borders. We need to gain control of our borders. Right now it's porous and we as a nation cannot maintain our security and economy by allowing so many people to sneak into our country without knowing who they are and if they mean harm to our nation. We have too many enemies to allow this to continue. We are a sovereign nation and as such we need to control who is allowed into our country.

Energy Dependence. We need to allow drilling in more areas inside our country. Right now the biggest threat to our economy and security is our dependence upon countries who open acknowledge their disdain for the US. We are, at any time, open to attack. Maybe not from a military force, but an economic one. What would happen if Venezuela, Iran, Russia, and Nigeria either decided to reduce or eliminate their exports to the US? We import most of our oil from Canada, Mexico, and Saudi Arabia. If you think the price is high now, what happens when we lose all or part of Saudi Arabia's imports due to some type of geographical instability event?
Reducing our daily consumption in the form of alternative fuels and more efficient autos would go a long way to reducing our exposure. Think it won't happen? Consider this, Iran gets a nuke and is crazy enough to launch it at Israel. Israel responds in kind and them boom, we have a major event in the middle east. Do we believe that Egypt, Jordan, Syria, Lebanon, and Saudi Arabia won't be drawn into the conflict? The political and economic effect will cascade throughout the world.

China as a developing Country. The US is currently the undisputed only Superpower in the world. But that is changing. China is developing economically and militarily. They have the resources and manpower to become a second super power. They are already flexing their muscle behind the Iran controversy and have been supplying the US with cheap goods for years making the US consumer dependent upon those products. China could become a valued ally or an equal super power. We have been pressing for reform in China for decades and it seems those efforts are making progress. Although they have a long way to come to become trusted, they seem to be making the effort to engage the US and the world in meaningful cooperation economically. They compete for the resources with the US and have shown that they realize the future can be one of cooperation between the two countries. Their regime may be oppressive to their population, but that is also giving way. When Nixon went to China he started us down a long road of subtly pressuring them to join the modern world. Unfortunately they are still communist and as such we are unable to trust their leadership. When freedoms are prevalent and they elect a government freely, then China could become a true friend. It goes to show the power of economics when it comes to encouraging change.

Other Countries. We should be concerned about the other countries that lately have tilted to the far left of Democracy and are openly expressing their dislike of the United States. Venezuela, Cuba, Bolivia, and Peru are all countries in our hemisphere that are openly expressing discontent with the US. It's a pattern that is growing lately and if we don't figure out how to counter it we could become more isolated as the years go by. Even Mexico hasn't been as good of a neighbor as usual with the illegal immigrant issue. A good neighbor doesn't tell it citizens to disobey another countries laws or proved them assistance to do so.

So that's my dissertation on why the glass is half empty.
I'll post later why the glass if half full.

Tuesday, May 02, 2006

And so it goes for the Wings

As so it goes, another hockey season cut short by a younger, faster, more desperate team.
As Edmonton goes on to the next round, the Red Wings return home silently with heads hung low, weary from the weight of our hopes on their shoulders. It has become a pattern in the last few years. The Wings place at the top of their league only to be swept away in the first round of the playoffs. Anyone who said the playoffs are a different game looks quite intelligent right now. Discipline out played by desperation. Puck control passed up by speed. You only have to look at the amount of times an Oiler lay his body into the path of a 100 MPH slapshot to realize who was willing to go the farthest in the quest for Lord Stanleys Cup. As our hearts slow and our thoughts turn to other things to help us forget the season we must remember that they are our Red Wings. We also need to thank them. They gave us a great season, albeit one cut short by a team who gave everything they had to move up.
No sooner had I turned off the TV when I was already thinking of next year and what changes will be made to ensure this bad karma is cured. I can’t imagine Steve Yzerman returning next year. He gave it everything he had, but in the end sheer will was not enough to overcome the challenge he faced. He is and always will be The Captain. Our Captain. His mark will be left on the team for years to come as all other Captains will be measured against his shadow. His leadership will serve as an example of how to lead, and for that we are grateful. We wish it could have been while holding the Cup but it wasn’t meant to be. He has earned his retirement and with it our respect.

So Detroit, what will it be when they return home? A scowl or a cheer? I for one will be cheering them. It’s the least I can do for my Detroit Red Wings.

Let's show them the class they deserve as we look toward next year...