Political Rhetoric 2012

political rhetoric 2012

Political Rhetoric versus real change 2012

Political rhetoric is back in season due to the 2012 elections, but the real issues of change are simply not addressed, with a few notable exceptions.

What should be discussed by focused candidates and the media? Quite frankly, the flag waving, religious, patriotism questioning, capitalism versus socialism, I know business, dumbed-down , racial overtone, self righteousness speak is getting old.. That's so 2008. There are issues that really identify who should be the problem solvers and leaders.
WE're so distracted by "social agendas" and we allow our politicians to avoid the real issues.

1. When are we going to address the Water and Energy (WE) problem,
domestically and worldwide? The goals and actions need to be clear. Supply has to exceed demand (sed) with a competing mix of "gas"(eous), clean liquid, and electric fuel supply supported by a distribution system that assures "refuel-ability". Infrastructure investment must be to focused on encouraging: distribution diversity; R&D on boosting battery capacity by five(5) to ten(10) times; mixing bio-fuels with petrol in increasing percentages; and developing more efficient internal combustion engines(ice), including "gas" powered and biodiesel; electric motors; and hybrids. Short term boosts in "drilling" are O.K., but without a commitment to make supply exceed demand (sed), claims of increasing energy independence and lowering fuel costs are energy materials from cows. We need the "bs" as part of an energy supply, not from the mouths of our politicians.
The world's energy consumption is going to double by 2050 and triple by 2100. The emerging countries (China, India, Brazil, etc.) are growing while the mature economies (USA,EU, Japan, etc.) are creeping. Why? The cost of fuel. In related ways, the innovation needed in the "industrial economies" are not as robust as the 1980's and 1990's. Yes wireless is flying, but it is not enough. Apple has almost 50,000 employees in the USA, but estimates are , worldwide, 500,000-1,000,000 subcontractors. This isn't wrong, per se, because in a global economy, you must often trade manufacturing for access to markets. The point is that innovation must span many industries to have the effect needed in this economy.

Advertisements about natgas by the oil companies clearly are targeted at home energy, "i.e." gas versus coal. We need a mobile energy strategy including natgas as a bridge to hydrogen competing with electric, bio-fuel, and more efficient "ice"s. But the key to low cost and efficiency is sed, scale level volume, and an integrated WE Water and Energy) action plan. The coop, feed , water and delivery lanes are needed before the chicken or the egg. The USA has electric and gas distribution as well as liquid fuel depots as a base for change. Pakistan, the country we provide billions in aid to, already has 2,000,000 cars running on natural gas. In Brazil, 85% bio-fuel cars are on the road while they export increasing amounts of oil.. Yes, free market, but supported by a trifecta (gas, clean liquid, electric) of distribution incentives and aggressive efficiency goals 80-100+++ mpg equivalents. Oil sands in Canada are not the answer for American jobs. An infrastructure needs to help immediately and be designed to evolve.

Solutions are at hand, but right and left leaning politicians waffle except "drill baby drill", "climate change", "energy independence", all with no commitment to change. In this climate, politicians won't stand up for what's needed and how to stimulate competition. And yes, efficient and cleaner petrol engines are ok. After all, improving mileage by 50%+ with a cleaner fossil fuel mix reduces emissions. Who will actually admit that the primary driver of "our interests" in the world is energy(oil), then the Israel Palestine question. What needs to be understood is that the paralysis of the question has it's roots in "power" politics i.e. Saudis(sunni),, Iran, Syria,(shiite) etc.

WE couch our interests in "freedom and democracy" but really mean "oil".

The billion and one half Muslim population and the multiple billion population "Christian" world are at loggerheads over what? Sure, freedom and democracy, and land rights for an area equal to a small US state . What the people cry for is: lower cost food and water for farming, industry, personal survival, and access to the massive energy and mineral wealth that is accumulated "at the top"; and peace. Literal :trickle-down.

2. The root of many of our domestic and international problems is lobby money, graft, power and control over politicians, and military/patriot fear tactics, period. Multi-national corporations, associations and unions, governments themselves,
business cartels, and military/industrial oligarchies are influence pedaling for political control and money. During the Obama-care debate, insurance lobbies were spending one (1) million dollars per day. Paying off leaders and manipulating the masses through advertising. is the status quo for many industries and politicians. Meanwhile, we squander trillions of dollars in military ventures trying to protect our "interests" Only Ron Paul, amongst politicians running for president, recognizes much of these expenditures as "entitlements". He's singled out because "in our hearts, we know he's right". There is common ground between the libertarians and the progressives, albeit Paul's roots in Barry Goldwater. From Al Gore, to Michael Moore, to Ron Paul, the bond is honesty. In the world of politics and lobby money, honesty is a very big deal!

3. Why were our leaders (USA examples) in 1890 (The Sherman Anti-trust act), 1914 (the Clayton Anti-trust act) and 1933 (Glass-Steagall) so much smarter than our leaders today? They learned through experience that the status quo of the day needed to be over-powered by the representatives of the people. The value of competition and the invisible hand is the freedom that must maintain supremacy over the lust for financial control and the invisible handshake between businesses and government. Combinations in restraint of trade have evolved into combinations in restraint of change. We cry against government control over business, yet businesses manipulate government to maintain the status quo. In a global economy, our political and military agenda, regardless if your governments are faux capitalists, faux communists, or pure dictatorships are driven by short term financial "interests" and access to commodity resources, not human "values" and competition. Yes, real competition is a freedom. We fly under the banner of freedom, when the expectation of North African and Middle Eastern people is cheaper food and access to water for farming, industry, and personal survival, as well as access to the wealth controlled by the "commodity barons". Yes, throw out the dictators, but fix the real problems, especially arrogance and denial, which crosses all political boundaries.

Speaking or arrogance and denial, we have the Financial Services industry. The repeal, in 1999, of the "Glass-Steagall act of 1933" led to the multi-trillion dollar financial collapse and beyond in 2008. (Hang in there, now, this is about Al Gore's dilemma/challenge)
Arguments for preserving of Glass-Steagall presented in 1987 (Wikipedia)
• Conflicts of interest characterize the granting of credit (that is to say, lending) and the use of credit (that is to say, investing) by the same entity, which led to pre-depression abuses that originally produced the act.
• Depository institutions possess enormous financial power, by virtue of their control of other people's money; its extent must be limited to ensure soundness and competition in the market for funds, whether loans or investments.
• Securities activities can be risky, leading to enormous losses. Such losses could threaten the integrity of deposits. In turn, the Government insures deposits and could be required to pay large sums if depository institutions were to collapse as the result of securities losses.
• Depository institutions are supposed to be managed to limit risk. Their managers thus may not be conditioned to operate prudently in more speculative securities businesses. An example is the crash of real estate investment trusts sponsored by bank holding companies (in the 1970s and 1980s). The collapse and consolidation of the S&L's in the 80's and 90's lead to the Bank complete takeovers in 2008-2009.(Eg, Countrywide, WAMU,etc), causing mega-concentration of real estate Mortgages. (Including Fannie Mae and Freddie Mac)

One relevant point should be mentioned because it's not heard in the rhetoric over the financial debacle that led to Sept 2008. Subprime loans, in any large scale, are stupid. Any banker knows that economies and housing prices cycle (about every decade or so). Many banks where the banker's voices were strong, avoided that issue and saved their shareholders billions, but also had to pay a price when the market went bust. Their portfolio's were drawn down by the banks who dominated market share. Then why did the large Banks do something that was stupid? Even greedy bankers usually draw the line at stupid.

The answer is two-fold.

1. Glass- Steagall.....obviously Banks were influenced by their investment
counterparts by overriding Banking mentality with Investment mentality.
Derivatives, hedge funds, credit default swaps, baskets of junk sub-prime mortgages, all packaged and sold.

2. Lobby/money.......Power and influence led to loosening underwriting standards and practices. Bank auditors and regulators
in the past would never have allowed the standards of
the twenty fist century. At least not from 1933-1999.

It's interesting to note how the divergent points of view by people like Al Gore, Michael Moore,and Ron Paul are really on the same page. Gore and Moore outraged by the visible and invisible handshake, Paul perplexed about government binding the invisible hand. They're all right.

Sounds disturbingly familiar? We sure were smart in 1933 and 1987, and stupid in 1999-2008 (2011?).

Cost: many, many trillions of dollars plus compound interest, millions of jobs, , and is now threatening our way of life. Blame management isn't the issue, it's manage change or change management: government, corporate, or otherwise. Of course, naysayers will point out " Lehman Brothers, Bear Sterns, and Merrill Lynch were Investment Banks; the American International Group AIG) is an insurance company. They conveniently leave out the fact that banking laws and regulations enabled banks to originate "bad paper" and package and sell it to investment banks and other security based organizations! That's why the banks had no qualms about selling mortgages to people who couldn't afford it...no accountability on the part of the bank.

We can talk about greed and underwriting standards. Unfortunately, greed is a constant.
In Banking, because of the obligation to protect consumer's deposits, regulation and oversight is appropriate. But when laws and regulators allow standards and practices that are stupid, like originating "bad paper" and packaging and selling it to unsuspecting
investors, then hedging against it, it's beyond stupid and criminal, it's immoral, no matter what god you pray to, even the god of money! It's close the gates of heaven immoral.
Yes I forgive you, now Go To Hell.

4. The world's population centers (over 50 % of the world population and GDP)...China, India, USA, EU, Indonesia, Pakistan, Japan et al, all have the same commodity and resource problem . We can't seem to use our common and growing demand and market power to choose innovation over the status quo, synergy over mistrust. Why?... combinations in restraint of change. Even our emerging supplier nations Russia, Brazil, Africa, Norway, and yes, the Middle East would benefit from a diverse economy and robust, diverse, clean Water and Energy strategy. Supporting Kings and promoting democracy have done nothing to increase our supply, lower our costs, or improving efficiency, three drivers of the invisible hand. The choice is:

a) restore the invisible hand and laws that insure a level playing field, or
b)creeping socialism.

The dilemma of socialism is it doesn't really eliminate the oligarchy nature of the producers and the lawmakers-the invisible handshake. Government corruption has an indelible "presence" in history, regardless of ideological persuasion, so anti-trust, anti-lobby-money, anti-graft plus the balance of power/checks and balances are the cornerstone of our democratic success regardless of public or private ownership. The invisible hand is the check and balance of competition and self interest between the consumer and the producer. The law is expected to be the umbrella and referee of justice.

What makes America better than many, government-wize, is clearly balance of power,
and checks and balances. That's a big reason why Americans have a right to be proud of our founders and most of our amenders and lawmakers. But when you corrupt the process to the extent that it covers up lies (e.g. WMD's), enrich your supporters (e.g. privatization of the military under the guise of efficiency), and corrupt the financial system (repeal of Glass-Steagal) in the name of free market capitalism and energy dependence, WE the people have the right to recourse and the duty to restore the system.

It's time for some changes.. don't you think?
Oil supply- prices-Cartels-warming- warring-money-corruption! Think about it.

5. Hyper recession and near monetary collapse are moving us closer to the point
where world trading partners don't want to rely on the dollar as the world standard of currency or to continue buying US treasury bills. This is compounded by Japan's tsunami caused debt on top over their highest debt to GDP ratio in the world. China's own inflation issues on top of balance of trade issues with the US further pressure the dollar. China and Japan are the top two buyers of US treasury notes. The weak dollar strategy (increase exports) versus the strong dollar strategy (attract capital) is the fundamental monetary issue of our times. The US: is involved in military actions in five (5) middle eastern countries- Afghanistan, Iraq, Libya, Yemen, and Pakistan. Looming issues exist with Iran, Israel/Palestine, the Sudan, the Congo, and elsewhere. Political instability persists in Tunisia, Egypt, Syria, Yemen, and threatens Saudi Arabia and empowers Iran.

The India-Pakistan mistrust, backed by nuclear arms, and caught in fragile US relations and our "anti-terrorist" goals in Afghanistan must be reconciled. Remember, however tenuous
the trust bond is with the US and Pakistan, they are a country of almost 175,000,000 people, of which 2/3 are below the poverty level and half are uneducated. India, with a population of 1.1 billion, has over two thirds living on less than $2.00 per day. These problems persisted way before the US came along, although they have roots in colonialism, mostly European.

The issue of "interest" is conflicted amongst our "allies", and behind the consternation is oil, as well as US domestic issues which are subordinate to oil. That's because we measure interest and interests by the barrel. Cut spending or lower or raise taxes, won't produce jobs if innovation is suppressed. Leadership must create the laws and climate for change, insisting on the power of the invisible hand over the invisible hand shake. Oil is not to blame.. Our politicians and the apathy and denial by the American people are-supported by lobby money.
Welcome to the shrinking global village — the convergence of economy, cultures, and
technology is accelerating the curve of social change. The good news is we have the political system and social values to straighten ourselves out, albeit not without pain.

Meanwhile, all this financial stress is summarized in politico-speak as jobs.
Unfortunately jobs are hostage to the above: Water and Energy, graft/lobby money, market control, denial of common interests with international trading partners, and near monetary collapse. Everyone wants to promote private sector jobs but won't address the above key five issues.

Across administrations over the last 35 years, we have prioritized status quo over change. If we invested in a WE (Water and Energy) strategy versus spending trillions of dollars on military tactics, we'd be on our way to a new economy, not to mentions the lives lost and climate change (which I just did). Instead, we argue about the Reagan years (the eighties) and the Clinton years (the nineties). We seem to ignore that companies in Silicon Valley, Massachusetts, New York, Washington, and Texas to name a few, had a lot more to do with re-inventing US's new economy.

Noteworthy is that the internet was born out of government funding ( US universities, department of defense, and NASA, and the European CERN funding (WWW, HTML,) (as well as many parallel innovations ) and exploited (in a good way) by the private sector. Private sector competition and government can promote progress with innovative leadership(incl Al Gore). Not a government bought and controlled by "interests", probably because it was beyond the CERN and other scientists comprehension how a
common internet language, HTML, (Hyper Text Markup Language) could unleash the invisible hand into a virtual dynamic technology community, marketplace, and society.

However, we also: built the internet bubble; the housing bubble; passed laws and regulations that ignored lessons and laws of the past; survived 9/11; and pursued wars in the last three decades, largely against those we funded, militarily, to begin with: Hussein (IRAQ); Bin Laden (Afghanistan); and inadvertently by imposing the Shah in Iran...all in pursuit of oil and "interests". It's like President Johnson's "guns and butter" of the sixties dampening the seventies. Time after time, extreme lack of hindsight and denial rule the day. Whether you agree with Ron Paul's world view or not, you have to admit trillions have been spent, millions died, proving his point about interference.

My point is that fuel has become a four letter word. Pay homage to it's incredible
positive influence on progress. But so was taming the horse.

So to try to compensate for all the oil driven strategies since OPEC was formed, and the military strategies, even before 9/11....resulting in trillions of dollars of expense; the Federal Reserve (the FED) used cheap money strategies (the cheap dollar lowered the cost of our goods overseas) ,while the Banks increased business and consumer access to debt and oil prices pressurized inflation, and businesses pursued international cheap labor to maintain costs and open markets. Remember, in August, 2008, oil peaked at $140 + per barrel, and interest rates were rising since 2006. (Rising oil prices + global supply/demand imbalance + "guns and butter" government spending+ technology outsourcing and mostly free trade agreements+ rising interest rates + expansion of government and consumer debt + poorly underwritten variable rate loans — Glass Steagle) = 2008-2011. Our financial "World Equation."

Note that the entire India call center, technology, and back office outsourcing model was
built on the US technology, communications, and Internet technologies from 1980's-2001. It shrunk the global village by many-fold. India could leverage it because of their large english speaking community caused by British colonialism. The dynamics of history , free trade, and democracy, fueled by technology. It's exciting, it's ugly, and there's no turning back.

You could ask, why does the Internet environment seems to be robust with competition and innovation while the Water and Energy and environmental progress seems lethargic and for many, defined by war and terrorism. One answer is that the opportunity and possibilities in micro and particle science and technology are almost beyond limits, at least in terms like chip density doubling every two years. But remember that market leaders such as Microsoft , Google , Intel are constantly challenged on anti-trust levels. The temptation to control markets is almost irresistible.

Obviously social and government check and balance are in demand more than ever.

Mobile fuels transitioned from horseback to steam engines, wood to coal, and coal to petroleum, gas, and electricity, with disruptive change, but comparatively less violence. Yet the Sherman and Clayton anti-trust acts were driven by railroad and petroleum monopoly issues. In 1890-1914, the world population was 1.4-1.6 billion people. Today, the world has almost seven (7) billion, growing to nine (9)+ billion by 2050. The dollars are measured in trillions and the dependence on Energy has reached "elixir of society" level, It's intuitive that water is the "elixir of life.". No water, no life. Likewise, no energy, no society and no progress.

The time to recognize that the transportation and home/business fuel status quo must change? Now!

The convergence of culture with economic globalization and poor monetary strategies led to what Stephen Hawking questioned to Yahoo!Answers in
the summer of 2006, "In a world that is in chaos politically, socially, and environmentally, how can the human race sustain the next 100 years?" Had he
asked the question in late 2008, he could have added "economically" to his list, and nailed it.

The answer is get our leaders to address issues 1-5 as summarized. Our
monetary, political, social, and environmental needs demand it. So after
we brag: the USA is the shining light on the hill, the greatest nation on
the earth, and not just a peer to other nations, please have some humility and
strength to restore what our leaders knew in 1776, 1789, 1890, 1914, and 1933. After all, Ronald Reagan, in 1990, knew that trying to control the destiny of the Middle East was a troubled exercise that needed to be rethought.(Often referred to by Ron Paul). Imagine if we spent our money helping the Middle East, North Africa, and sub-Sahara Africa build desalination facilities to enrich farmland and industrialization with innovative US made technologies. The choice of war and terror is pathetic, moving to disgraceful, and sometimes illegal by domestic or international law..

Yes, stick with our allies, help nations negotiate peace, but for god sake, let's make the compatibility of our interests and values be the beacon for the present and the future. Borrowing money from China to prop up Egyptian dictators doesn't seem to have turned out the way we planned, especially when we are often blamed for propping up these regimes. Defenders say "look how relatively quiet the Israel/Egypt relationship has been." At least the Egyptians used Face book to help the revolutionaries coordinate their efforts, led by a Google executive. And they paid for there own cell phones. That's the leadership we need, not the billions of aid spent on military defense to maintain the status quo. And the Egyptians, for the moment didn't blame us. How refreshing.

Now where does President Obama stand in the middle of all this? He is definitely here at a point of history that will mark his place in history.. He, along with both parties over at least the last 30 years, have things to change. "Yes, change...you too, Mr. President. You have certain history that could be pivotal at this point in time, or reasons everyone could blame you. Although I hate the haters (oxymoron?), you're in trouble. Why did you call it Stimulus when, 2/3's or more was rescue or sustain? You're trapped by the very points I make in this paper, hoping demographics will sustain you!. They won't, by themselves. Ah hindsight!

The point is the five issues won't resolve themselves till someone leads us to change.

The death of Bin Laden closed a chapter on terrorism. Who will write the book on the end (reduction) of terrorism, the restoration of the American dollar, and the growth of the world economy, led by our beacon of hope and fiscally responsible innovation and economic growth?

At the time of WWII, there were about two and one half billion people in the world. Now there are almost seven billion, growing to over nine billion by 2050. We argue about global warming (the politically correct word is climate change ), where the near term threat is global warring. In 1914, there were about 1.6 billion people on earth and WWI killed 15 million people, with a follow-on pandemic killing at least 20,000,000. In 1941, there was about 2.3 billion on earth, and the WWII death toll was about 50 million. There are 2.8 times more people on the earth, than in 1941. Using WWI-WWII, that extrapolates to 106.6 million potential deaths. Now compare the world's killing power to the WWII and WWI killing power. Now add how many people who could extend their life by adding just 10 years to the developing, emerging, and developed world's lifespan. (1 B). Now should we just "Darwin" it or think of all those potential consumers. That's a lot of smiles and a lot of votes.

Now, let's rethink our World Equation. Please?

Are we in denial? Let's see, North Africa, the Middle East, the "Istans" incl Pakistan-India, Russia/Georgia/Ukraine, Japan/China, the USA/EU NATO alliance, etc. That's a slippery slope greased by oil and limited fresh water.

WE're about one major terror act,, a monetary crises with the dollar and t-billl
igniting hyper-inflation, and a few more religious theocracies away from Jihad, near Armageddon, or some lesser definition of devastation.! Hmmmm!

This isn't to subordinate climate change as a lower priority issue. The point is they are the same issue with the same solutions and the same blockades. Our number one hindrance is common to us and our politicians...denial! And it seems that Al Gore's challenges won't be met unless "all of the above" are addressed, any way. After spending trillions and trillions to defend oil security, now we can't afford to fix the problem?
Interestingly the solutions address climate change too! Don't believe in climate change? Maybe it's god's or nature's way of feeling uncomfortable. Imagine God and Stephen Hawking on the same page. Michael Moore and Ron Paul on the same page?...sometimes for different reasons.

Why should we ?...Because we're supposed to learn from hindsight. And it's right.

Now I didn't say lay down our arms, or if we're nice, bad people will just get better.
Once more, I didn't say lay down our arms, or if we're nice, bad people will get better.

What I did say, is tell our politicians that if they don't deal with the real issues, we're going to get very mad at them at the polling both and the ballot is stronger than the dollar.

The ballot represents everything our country and forefathers stood for. The currency of the vote is stronger than the dollar, although you claim it cost billions to get the vote..

Charlie Pedersen............................ we2infinity.com

6/23/2011