Cash in Our Chips

I have been told that in times of a good economy to invest in gold while the price is low, and when a recession hits, the gold prices will rise.  But I have no idea what to do in this recession when our treasuries are now under a shadow of doubt.  The idea I have is to cash in some of the favors we have done other countries.  How about this: if I fought a war on your behalf and you are now rid of your tyrant or dictator, you forgive me any debts I may owe you, and we'll call it even?  Because you know, we spend billions of dollars a week on some of your wars, so now you can actually come out ahead because we won't charge you for the cost of your war.

Darlene points out that other governments have neared the same crisis we now face without causing global collapse, but those other countries were not the only existing economic superpower in the world.  The collapse of the American economy would definitely have major global repercussions.  One can review the events of the biggest American bailout in US history and remember the rocking of the European and Asian markets as a result.  This is potentially colossally bigger.

Overall, I agree with Darlene Ohabughiro regarding our mounting debt crisis and the negative effect it may have on our foreign investors. She seems knowledgeable about her subject matter.  The picture is eye catching and there is a good flow to her blog.  However, there are no imbedded links in which to find more information on the subject or to verify her statements.  Also, there is no clear position in this blog and no suggested solution.  Her questions do stimulate conversation, however, which led me to post this blog.

Today's Foreign Policy

An article written today, by Richard Lardner, in The Austin Statesman caught my attention because it is a very good example of foreign policy and American politics.  Pakistan is trying to influence America’s position regarding the Kashmir conflict between India and Pakistan through shady financial donations to political campaigns and meetings with White House and State Department officials by Pakistan spy agency, Inter-Services Intelligence. Specifically, Rep. Dan Burton (R-Ind) , the co-chairman of the House Pakistan Caucus.  Despite his criticism of the Obama administration’s lack of involvement, Obama remains stern in his position to let the issue be resolved between India and Pakistan.  Sanjay Puri, chairman of the U.S. India Political Action Committee, boldly states “India is a strategic partner with the U.S. and that takes front and center, far more than the issue of Kashmir”.

The dispute between India and Pakistan, and the U.S. involvement, or lack of, is an example of foreign policy exercised today.  While sending “billions of dollars in counterterrorism aid and development money to Pakistan each year” to fight Al-Qaeda presence in the Pakistan side of Kashmir, India is the country the U.S. is increasingly considering its ally.  Because India’s interests are aligned with our American ideals of democracy and our national interests in dealing with China’s rise in the economic and military fields, we are choosing not to be directly influencing India regarding settling the Kashmir issue.  In addition, the U.S. is distancing itself from Pakistan after finding Osama bin Laden in Pakistan and finding out Osama lived there for six years.

During the cold war, Pakistan was our ally, but since the rise of Al-Qaeda and Osama bin Laden’s direct statement of being against America “because of America’s support of India on the Kashmir issue”, and because of increasing Al-Qaeda presence in the Pakistani side of Kashmir, the U.S. has increased alliance with India.  Since the 9/11 attacks on the U.S., our foreign policy has been to restrain militancy in the world (the War on Terror). The purpose of the increased fighting in Kashmir by Al-Qaeda was to drive a wedge between India and Pakistan’s attempts at peaceful solutions and provoke a nuclear war, according to Defense Secretary Robert Gates in January 2010.

I found this article interesting because it covers many areas of US politics and foreign policy.  It provides examples of how money influences congressional committee policies, and how, sometimes, that money has been purposely channeled from foreign governments in order to influence American foreign policy.  It also demonstrates the U.S. use of diplomacy to influence foreign governments through sending Hillary Clinton, the Secretary of State, to India to increase the alliance between the two countries, and the use or withdrawal of foreign aid to influence the Pakistani government.

I agree with the way the U.S. is handling this specific issue.  I am all for a strong military force to act as a deterrent to other nations, but I feel that the U.S., being the only superpower at this time, has much more at its disposal in dealing with foreign governments and protecting our national interests.  This article was an example of how the U.S. is handling foreign issues without military force.

http://www.statesman.com/news/nation/influence-game-india-pakistan-vie-for-us-backing-1649054.html

http://en.wikipedia.org/wiki/Kashmir_conflict

A Little Radioactivity is Natural - A Lot? Not So Much

Alec Hubble's blog on nuclear power was very interesting and even educational.  I was becoming a nuclear convert until I thought about Japan and their nuclear breakdown.  Yes, I've never heard of France having nuclear issues, but I'm still afraid of the fallout.  I mean, if I run out of gas, will I die of cancer, or evaporate into ashes? No, I will not. 

I'm all for being independent of other nations when it comes to buying oil from countries that want us dead.  I would rather be dependent on something more benign than nuclear power, though, like wind power, or solar power.  Alec brings a valid point to being needlessly afraid of nuclear power due to new safer processes of creating it, however, he did not present the opposing side of his argument in which to create a buy-in of his audience. 

I did enjoy the factual statistics that made him more of an authority on the subject, but there were no links in which to research for myself the statistics he was spouting.  I would like to have more information on these so-called safest pebbles.  Are they rocks?  Are they man-made materials?  My curiosity was peaked and I did question my view of nuclear power, but I just felt there wasn't enough information. 

The flow of the blog was very organized and easy to read.  I really liked the picture and the first sentence that grabbed my attention.  I appreciate that Alec chose a subject that is becoming more and more of a hot topic due to the ever increasing gas prices and the push for alternative energy.  All in all, a nice blog.

No Really, Just DO IT!

A compromise should be made between Republicans and Democrats regarding the nation’s debt.  President Obama is taking the hard line and threatening to veto the proposed Republican bill of federal spending reductions and a congressional approval of a balanced budget amendment.  The Republicans agree to raise the debt limit, but will not agree to raising taxes on the wealthy and corporations.

Reducing the federal spending by discovering and ending federal waste is what’s needed, not taking money from the elderly by reducing money given for Social Security or Medicare, or letting the educational system suffer by cutting funding to higher education programs for those in need.  Raising taxes is also needed.  Republicans and big corporations need to stop being greedy and take the tax hike.  With the millions, or even billions in their pockets, they will hardly notice a reasonable tax hike.  If the middle class is willing to take it on the chin, then the wealthy should also.

Stonewalling between the two parties is purely political, nonproductive, and dangerous.  Federal Reserve Chairman  Ben Bernanke states the default of government debt could “inflict serious harm on the economy”.   Keeping taxes will not create more jobs, it will just padd the pockets of business owners.  Senator Tom Coburn has a valid plan recommending $9 trillion in cuts over a decade instead of immediate cuts that are unreasonable, and raising $1 trillion in taxes.

Mark Mardell, a correspondent for the BBC, agrees the debate is political more than it is economical.  According to Mardell, Obama is trying to make the Republicans look bad by agreeing to increased cuts of $4 trillion in exchange for increased tax of the wealthy, which he knows they will never agree to.  Playing political hardball with our economy is just wrong.  The middle class, which is a majority of Americans, will be the ones to feel the economic downfall the most, not the politicians whose net worth is around $1 million each, or the 1% who make up the most of the American wealth.
Enough with the bully politics and listen to the people.  We want our economy back.  We want our right to pursue prosperity.  Stop government wastefulness, get your acts together and balance your budget like all of us citizens have to.  I'll bail you out a little with a reasonable tax increase, but I'd better see something for it or I will rally all my fellow constituents to stop paying taxes until you do.  Sounds a little like the bank bailout you did already, doesn't it?

Waaaaa!!!!

Joan McCarter blogged in the Daily Kos, yesterday, about the austerity in America.  She brought up a point I’ve been mulling over since Obama made the announcement not too long ago.  He’s bringing our troops home (Yay!), but wait…where will they work once they get home?  With the unemployment rate over 9% already, and many Americans looking for work for months now, what is the President planning to do about putting the war veterans to work?

McCarter also mentions the percentage of employed 16-24 year olds are at an all time low of 45%, as well as Arizona with an amazingly high applicant-to-job opening ratio of 10 to 1, and the millions of people collecting unemployment benefits.  Will the influx of our troops further drain the economy?  Statistics say yes.  McCarter shows that since 2001, war vets have had unemployment percentage rates in the double digits.

Don’t misunderstand; the troops need to come home.  I’m a big supporter of the war on terror, having watched the twin towers explode before my eyes, but we can’t neglect our own country in the process.  Maybe the money saved on the cost of war can be funneled into the unemployment fund for those troops who can’t find a place to work.  Or maybe they’ll go back to school, which will buy America a few years to create the jobs that they will be seeking with their new degrees.

Joan makes great points, but offers little in the way of a solution.  This seems to be the trend with “sensational media” - make the ratings by worrying the community, but don’t bother with bringing answers to the table.  Yes, it’s the government’s job to get us out of this mess.  But we elected them; we have a voice to persuade them to fix our economy.  Maybe they need fresh ideas in how to do this, but they won’t know if we don’t tell them.  Enough with sitting around and complaining about the state of things, we need to get back to the grassroots and make a change ourselves by joining interest groups, emailing our Senator or Representative, and Tweeting our President.

Just Do It

USA Today wrote an editorial on July 5^th regarding the hot topic of the “debt deal”, the agreement to raise the national debt ceiling, needed between Republicans and Democrats, by August 2^nd to avoid default on a US loan.  The editorial is in favor of raising taxes as a compromise on behalf of Republicans, who in turn are refusing to budge on the tax issue and state that the Obama administration should cut it’s spending.

This editorial makes some good points about needing to compromise in time to make the deal and not default on the loan.  It’s not okay for either side to dig in their heels and refuse to compromise.  Our government was built on compromise and should continue doing so.  The fallout from defaulting on this loan is described as basically shutting down almost half of the government.

Irresponsible spending may have gotten the government to this point, but not just in the current administration.  Irresponsibility started with obtaining the massive loans in the last administration and the mess was left for President Obama to fix.  Hard decisions and a failing economy are what Obama inherited with his presidency.  The GOP needs to give in a little with the tax issue and the fat needs to be trimmed from government spending.  Both sides need to realize that it’s going to be a jagged pill to swallow in order to get this country back on its feet.  All Americans are going to need to suck it up a little, tighten the belts and make some sacrifices now, in order to avoid larger sacrifices later.

The intended audience of the author seems to be Democrats due to the bashing of Republicans.  The author's credibility is enhanced by graphs and knowledge of the current event.  The overall opinion of this author of being against the Republicans walking out of the debt discussion and not trying to come to an agreement is a sound one.  This is just a power struggle between political parties with no focus on the real issue – our economy.  What we need is for everyone to put on their big people hats and do what needs to be done to fix this mess.  Paying a little more in taxes is a lot better than standing in a bread line.

Getting Back to the People

            I read an article recently on MSNBC.com that was encouraging.  It was titled “Got Questions for Obama? Tweet ‘em now” by Nidhi Subbaraman.  The article discussed how the President is using new technology to directly communicate with Americans.  He’s tweeting, folks.  That’s right, the President of the United States will be holding a “Twitter Town Hall” to discuss the economy.  This was encouraging because we Americans are getting back to the beginnings of our country, when it, and our government were much, much smaller.  Regular citizens have a chance to communicate directly with the President.  We don’t have to go through the long, drawn out process of writing our local leader and hoping our topic is important enough to make it all the way to the top.  Or, we don’t have to write our Senator or Representative and hope that our letter is read along with the thousands of others they receive regularly.  This is the ultimate Town Hall meeting, as much as it can be with the large numbers of people involved.  This is an ingenious way to reach a massive amount of people real time and have a two-way conversation instead of a “top down” monologue.  It’s tomorrow at 2pm ET and you can tweet the President from now until tomorrow.  President Obama will be speaking on http//askobama.twitter.com or you can follow Tweets from @townhall.  See you there!