That’s what

If you didn’t it coming, you weren’t looking. Standard & Poor looked at how Congress acted, and made its assessment. Congress was under the influence of ideological intransigence, and demonstrated it was incapable of genuine problem solving. There is little evidence that that the super-committee will do any better.

Hopefully the market has already discounted the action in advance, so there will not be an additional significant sell-off.

As I said in my previous message, our legislators need to look at the evidence and come up with a balanced plan to reduce our deficit and eventually bring down the debt.

It needs to be done with objective analysis, creative thinking, good-faith negotiation, and critically, devoid of ultimatums.

Posted in business, Ethics, globalization, News, Politics, Taxes | Tagged , , , , , , , , | Leave a comment

OK, now what?

Now that the debt limit bill has passed, it is time for Congress to move to a new mode of responsible governing. It seems clear to me that our legislature is under the control of ideological extremists and big business and financial interests.

Our founding fathers were familiar with the “scientific method” and regarded the Constitution and their new nation as a kind of experiment, and they referred to it that way.

The elements of the scientific method include:
1. Objective observations
2. Develop a theory or hypothesis
3. Design an experiment
4. Carry it out
Then go to step one, and fine tune the experiment.

In the case of our country, the Constitution was the experiment, and the Amendments are the fine tuning, as a result of observations made on how it was working (and some changed national values).  The key point is there is no room for rigid ideology and biased observations.

What is happening now? We had a financial crisis that provided strong evidence that effective regulation of derivatives is desperately needed. My understanding is that effective legislation is nowhere in sight.  We have caved into financial interests and lost sight of our citizen’s best interests.  A scientific approach would have produced a more effective solution.

Now Congress has passed the debt ceiling bill, and two problems surfaced in that process.  The Republican party, or perhaps Congress, was held hostage by an ideological principle of “no tax increase” a position that does not seem well-based on its effect on jobs.  The shred of validity for that idea exists for small business owners who may indeed slow hiring if they expect severe tax increases.  However, that’s not the wealthiest in the country, and the wealthiest should have been required to participate in the deficit reduction.  That brings us to the second problem, and that is we seem to once again caved in to large financial interests by not taxing the wealthy.  It is clear to me that a fair approach, and a more effective one, would have been to combine budget cuts with carefully designed tax increases.

Tax rates are at a historic low and these countries all have higher taxes as a percentage of GDP: Japan, Switzerland, Australia, Ireland, Canada, Greece, New Zealand, Israel, Russia, Portugal, Hungary, Spain, Brazil, United Kingdom, Netherlands, Germany, Italy, Australia, Finland, Norway, France, Belgium, Sweden, and Denmark.

There are things our country needs to do, that are not getting done, and these things need to be paid for.

Round two will be the joint Congressional Committee.  Let’s hope they can come up with a balanced approach to our fiscal problems.

Posted in business, Ethics, News, Politics, Science, Taxes | Tagged , , , , , , , , | Leave a comment

Obama – A Deft Touch

It’s about one hour to Obama’s first major speech on the Libyan situation. He is being criticized in Congress for not consulting more with them, and for not clearly stating America’s policy and goals.  He did state certain goals.   My reading of the situation is that by taking a low-key position, he has achieved what we have been hoping for in many other contexts.

By having NATO take the lead, he has caused many other countries to participate. Fourteen countries have committed air power to the operation, including two Arab countries. That would have been totally impossible with a US dominated operation.

I know some people would like America to be the leader in everything all over the world, and others would like us to back away from everything.

I think Obama has achieved a balance that not many people would have thought possible, with wider support.

I think we should recognize what his low

Posted in globalization, News, Politics | Tagged , , , , , | Leave a comment

Libya – Sanctions, to what purpose?

The LA Times reported today:

“Voting unanimously after daylong discussions interrupted with breaks to consult with capitals back home, the [UN Security] Council imposed an asset freeze on Kadafi, his four sons and one daughter, and a travel ban on the whole family along with 10 other close associates.

Council members also agreed 15-0 to refer the Kadafi regime’s deadly crackdown on people protesting his rule to a permanent war crimes tribunal for an investigation of possible crimes against humanity.”

While there is no doubt the asset freeze is appropriate and needed, what is the purpose of establishing a travel ban on Khadafi? That’s what we want him to do, travel out of Libya. Also, why are we promising him that his crimes will be investigated? In his state of mind he may think he will not be prosecuted, and leaving him with that illusion may possibly expedite a decision to quit.

If there are personal favorite items he likes, or feels he needs, they should be embargoed.

It seems like the UN vote was an expression of frustration rather than a strategic move to bring him down.

Posted in globalization, News, Politics | Leave a comment

Egypt – On the Road

While world attention has shifted to Libya, Egypt is working its way towards reform. So far, the Egyptian military has performed admirably, establishing effective stabilization, yet showing no signs of wanting to take over the nation.

The constitution which essentially codified supreme presidential power, has been suspended, and parliament has been dissolved. The military has called for elections in six months. These are essential steps along the way.  The end of emergency law was a key demand of protesters, and is still in effect.  The military has said it will end emergency law when the streets are cleared and perhaps other conditions satisfied.

A significant issue is how a new constitution will be drafted.  For a constitution to have long term viability it must be skillfully drafted and negotiated.  It will not be easy to balance the desires of so many passionate interested groups.  These groups fear that other groups will become too powerful and take over.  Will the constitution be written in such a way as to prevent Egypt from becoming an Islamist state, or controlled by the Moslem Brotherhood, as it appears many fear?  These questions, and many others, need to be discussed and resolved through negotiation.  This probably means that elections should happen before a new constitution is drafted, and the job given to the representatives of the people.

A common thread to many of the protest movements in the Middle East is a call for more jobs, specifically for their governments to provide more jobs (and more pay). Of course, sustainable path to more jobs is not via the government, but (with rare exceptions) through the establishment an economy that provides jobs in the civilian sector. This requires private investment in the country’s economy, and this can only be accomplished if industry leaders have confidence in the stability of the country.

The road ahead will be tough, and interesting.

Posted in business, globalization, News, Politics | Tagged , , , , , , | 1 Comment

Egypt – Who are the Players?

Added 25 Feb 2011: Habib Adli

Habib Adlie – Interior Minister under Mubarak who is accused of human rights violations, including torture by his police and domestic intelligence forces.  He is also accused of deny government workers of pay raises  and benefits due them.

Mohammed Badie – General Leader of the Moslem Brotherhood in Egypt, the country where it was founded. He has been in this position since January 2010. He has stayed in the background during the protests.

Mohammed Elbaradai - A respected leading dissident, he has been put forward as a potential presidential candidate. However, he has said he does not intend to run for the office. He was Director General of the UN’s International Atomic Energy Agency from December 1997 to November 2009.

Wael Ghonim - Egyptian activist, who lives in Dubai and is Head of Marketing of Google Middle East and North Africa. He became a leading figure of the protest, and among other statements, credits Facebook with the success of the movement. He has discounted suggestions that he should become involved in Egyptian politics.
Hossam el-Hamalaway – Egyptian journalist, blogger, and activist. Blog: www.arabawy.org (mostly in English).

Vice President Omar Suleiman, 74 – Discredited himself when he said that the Egyptian people were not ready for democracy. He was appointed by Mubarak to assume most of the powers of the presidency, and then later announced Mubarak’s resignation and transfer of all powers to the High Council of the Armed Forces.

Field Marshall Hussein Tantawi, 75 – Head of the High Council of the Armed Forces, and therefore, at this point, the leading figure in the reforms to be implemented.

This list will be updated from time to time.

Posted in Ethics, globalization, News, Politics | Tagged , , , | Leave a comment

Egypt – The Road Ahead

The people of Egypt have achieved the peaceful departure of a totalitarian, repressive government. It’s an astounding, rare achievement. What’s next? There are many questions.

Who will be in charge of the transition?
This is a huge question. It appears that the High Council of the Egyptian Military intends to carry out a smooth transition to democracy. However, will they attempt to manage it themselves (perhaps with token civilian representation), or will there be a genuine cooperative effort between all significant groups?

Addendum: Before the announcement of Mubarak’s resignation, the High Council announced: 1) Emergency law will end after the demonstrations are over, some legal issues are resolved, the constitution is amended, and a presidential election is held.  2) To shepherd the process toward a democratic society to which people aspire, and 3) To not detain the protesters.  They stressed the importance of returning to normal work.

What about the Moslem Brotherhood?
Are they poised to fill a power vacuum? On one television show, the currently illegal Brotherhood was characterized as an aging, conservative group with little appeal to the younger generation. Once it its prohibition is lifted, it would be wonderful if it could take its place as one of a number of political organizations with a right to participate in the political process.

What about the economy and infrastructure of Egypt?
These are long-term problems and there are no easy answers. The problems are endemic to the whole area and creative thinking is required to solve them. It will require exceptional leadership to maintain the confidence of the people while these problems are being solved over a period of many years.

What about the Egyptian Constitution?
The constitution is rooted in democratic parliamentary principles, but amendments over the past 30 years and earlier have eroded many of the features of the original constitution.  Significantly, the Supreme Court was replaced by the Supreme Constitutional Court, which ironically was set up to contravene the original protections of the constitution.  Also, the current constitution says, “the principle source of legislation is Islamic Jurisprudence (Sharia)”.

Of course, Emergency Law has been in effect almost continuously since 1967 and removes many of the protections of the constitution. Among its provisions, censorship is legal, public demonstrations are restricted, non-approved political organizations are prohibited, and indefinite imprisonment without a stated reason is allowed.

Unlike the US Constitution, the amendments take the form modifications to the original text, and so they cannot be simply repealed. A new constitution is needed, perhaps based on one of the earlier versions drafted in more enlightened times. It will be interesting, to say the least, to see whether the Sharia law provisions are retained.

When will elections take place?
I’ve heard that if the president steps down, an election is supposed to take place within two months. Also, a regular election was to be held in September 2011. One senior protest leader said it would not be practical to hold an election in less than a year. That seems like a very long time to me. The acceptability of a long delay would depend strongly on the confidence of the people in the process, which would have to be open and led by well accepted leaders.

What will happen to pro-Mubarak people?
They fall into several categories:
Pro-Mubarak people
Killers before the demonstration
Killers during the demonstration
Hosni Mubarak

Hopefully simple pro-Mubarak people will be made welcome into the new Egypt. This does not always happen, of course. Those who murdered civilians before the demonstrations may fall into a different category than those who killed the 300 in the early days in Tahrir Square. Perhaps there will be a “Truth and Reconciliation” process for some of those people and criminal proceedings for others.

Hosni Mubarak assets in Switzerland have been frozen.  It remains to be seen whether he will be tracked down and brought to justice.

What about US-Egyptian relations?
The good news is that US has a good relationship with the Egyptian military, based on the support we provide. How that carries forward into an elected government remains to be seen. Obama and our government, over the past 18 days, made a variety of statements, both supporting Mubarak and asking him to step down. Fortunately it does not appear that we made any major gaffes, and I believe we can look forward to a productive relationship.

What about other countries?
As we all know, several other countries seem on the verge of similar events. What made this revolution successful is that the military acted with restraint, and eventually sided with the people, and presumably convinced Mabarak to resign. There is no guarantee that the military in other countries would behave the same. Typically such demonstrations are suppressed by whatever means are judged necessary, deadly or not.

The future of Egypt will certainly be interesting to follow. I hope, and we all hope, that the process will be well-managed and that conflicting factions in other countries will learn from the process.

Posted in Ethics, globalization, News, Politics | Tagged , , , , , , , , , | Leave a comment

Wars – Behind the Scenes

I’ve just finished reading “Ghost Wars” by Stephen Coll, and just prior to that, Bob Woodward’s “Obama’s Wars”. Both deal with Afghanistan.  They have given me new insights into how government works, in particular the executive branch. Both books were meticulously and thoroughly researched, and it left me an understanding of the limits of analysis and decision making at top government levels.

Coll’s book covers the events in Afghanistan from the Soviet invasion until the day before the World Trade Center towers were destroyed, roughly a 6-year period. It documents how the Taliban, al Qaeda, and Osama bin Laden developed in Afghanistan in spite the many warnings about terrorism that were raised within our government throughout the period.

Woodward’s book describes the difficult process that was used to come up with the Afghanistan troop surge decision much later in December 2009.

The surge decision was made in a much simpler environment than existed prior to 9-11. It was clear who the enemy was, and what the basic strategy had to be with respect to the Taliban. The military and Hilary Clinton had asked for a 40,000 troop surge, and Obama was insisting being presented with some other options to consider. The only options offered were a 30,000 troop surge and an even smaller surge. Abandoning Afghanistan was not given much consideration. Time and time again Obama sent his advisers back to the drawing board to come up with something different. It never came. The essential player organizations were the CIA, the State Department, the Military, and Obama’s own advisers. The arguments, counter-arguments, and debates are detailed in a way that makes you feel as if you had been there. Finally, given no other options, Obama had to more or less split the difference, and we had a 30,000 troop surge in Afghanistan.

Earlier, when the Russians left Afghanistan in 1989, there was a huge power vacuum. The Taliban soon came to realize they, with the support of Pakistan, particularly the Pakistani intelligence service, ISI, could fill that vacuum. From our point of view, though, the development of an Afghan-based political organization would have been clearly more advantageous to both Afghanistan and the US. There was no shortage of political and military groups, although not well-developed, that we could have supported to fill that role. We did nothing that was sufficiently effective. Then al Qaeda and Osama bin Laden arrived on the scene, having been driven out of Sudan. His leadership and financial resources gave new strength to the Taliban, and soon most of the Afghan-based organizations were defeated. Eventually the Northern Alliance, headed by Ahmed Shah Massoud became the only game in town, except for covert operations, to defeat the Taliban. Repeatedly Massoud explained the situation, pleaded for support, and predicted exactly what would happen (and did happen) if he were not given the resources needed to confront the Taliban.

Two days before 9-ll Massoud was assassinated by al Qaeda operatives, and there the chronology of Coll’s book ends. It was a new game.

During this period there were many opportunities for our government to make a real difference and both Bill Clinton and G. W. Bush failed to take decisive action. There were many warning from Afghans and our own people about the threat of terrorism, but the issue languished at the bottom of the government’s priorities until only a few weeks or months before 9-ll. Another problem was that we were so intimidated by the presumed need to avoid offending both Pakistan and the Saudi family that we failed to take decisive action. With regard to Osama bin Laden, we had several opportunities to execute ground operations to kill or capture him, but so many technical, legal, and political objections were raised that we never acted. No one could guarantee the complete success of any operation so none was chosen. The same was true of both manned and the newly-developing unmanned strikes from the air. We were afraid of killing members of the Saudi family who were often with bin Laden.

We kept asking the Taliban, through their sponsor Pakistan, as a condition of cooperation to establish a new government, to hand over bin Laden. Why would they do that to one of their biggest providers of financial support? It is hard to imagine how we could have been so naive.

Also, we had many opportunities to provide critical support, mainly financial, to other organizations within Afghanistan, and for similar reasons, we never acted decisively. Eventually the last “man” standing, the Northern Alliance, was pushed up into northeast Afghanistan, and was stuck there until 9-ll changed the ground rules.

We’ve all heard that we provide “bags of money” to those whom we wish to support, but I never realized how critical and routine such support was, at least in Afghanistan. Typical amounts ranged from $50,000 to $200,000 a month, and lump sum payments of half a million dollars. What we received in return for such support was highly variable.

I have naively assumed that our executive branch had enough resources to deal effectively with essentially any number of problems. I figured that whatever the issue was at that level of government, all the resources needed were applied to the problem, and conclusions and/or options were developed, ready for a decision. The truth is that it is really messy, and resource limited. The State Department, our intelligence services, the military, and others, all have their axes to grind, and it is rare that alternatives get effectively weighed against one another. In neither book did I ever read about a “decision matrix” being used, in which the players agree on the evaluation factors to be used, and the weights to be assigned to those factors, and the factor scores for each of the options being considered. While you can never simply choose the “winner”, it certainly helps provide clarity to the issues and alternatives. I suppose the process works best if the players have a common goal, too, which was never the case with the various government departments’ interests being so different.

My conclusion is that we need to be more open about our decision making, worry less about who we offend, and take decisive action in our own best interests, explaining why we are doing what we are doing. Our own best interests can include the best interests of countries whose stability will be advantageous to us. Another lesson is that we need to figure out how to break down preconceptions, and learn how to evaluate and assimilate new information into the decision making process.

Posted in News, Politics | Tagged , , , , , , , , , , , , , , , | 1 Comment

Taming an Oil Well

I have a some questions about the oil well recovery program that I would like someone to answer.

1. It appears that a relief well, to accomplish its objective must intersect the original well.  That seems like quite a challenge at 18,000 feet.  So my questions are: 1) What is the technology that provides such precision location of the original well, and guidance of the relief well?  2) What is your estimate of probability of success, with  what confidence level?

Update 27 June 2010:  I found an LA Times article “Relief Wells 101” that tells me most of what I wanted to know on this question.  They pull the string periodically, and put down a sensor that detects the magnetic properties of the pipe, so they can tell how close they are, and which way to turn. As they get closer, they do it more frequently, so progress is much slower. Sounds like a plan.  I have also learned that if they miss the pipe on the first try, they can back up a short distance and give it another try.  I feel much better now.

2. I have read an extended comment to a Reuters article by a retired oil and gas man who signs himself Alkan that offered an approach that makes a tremendous amount of sense to me.  It’s a 2-stage operation:  First send down an assembly that fits around and over the end of the BOP, and takes an impression of the sheared end of the pipe.  It would not stop the oil flow.  Then build an assembly that contains an pipe that leads to the surface, and a lead or other malleable metal ring formed to the impression obtained earlier.  Include it in an assembly with bolts that clamps the whole assembly with all the force needed to make the malleable metal conform to the end of the pipe.  Once clamped down there would be no leakage at all.  Here’s a picture of the device:

A proposal to eliminate leakage

Here’s a link to the originally posted picture.  It seems like such a rational plan.  I wonder if it ever found it way to the decision makers, or how one could make it happen.

American League
EAST W L PCT GB HOME ROAD RS RA DIFF STRK L10
NY Yankees 45 27 .625 - 25-10 20-17 395 293 +102 Won 2 6-4
Tampa Bay 43 29 .597 2 19-17 24-12 370 278 +92 Won 1 3-7
Boston 44 30 .595 2 26-15 18-15 410 346 +64 Won 1 7-3
Toronto 39 34 .534 6.5 20-17 19-17 341 316 +25 Won 1 5-5
Baltimore 20 52 .278 25 12-23 8-29 245 386 -141 Won 1 3-7
CENTRAL W L PCT GB HOME ROAD RS RA DIFF STRK L10
Minnesota 40 32 .556 - 23-13 17-19 337 291 +46 Lost 3 4-6
Detroit 39 32 .549 .5 25-11 14-21 321 319 +2 Won 1 7-3
Chicago Sox 37 34 .521 2.5 18-18 19-16 309 318 -9 Won 9 9-1
Kansas City 30 43 .411 10.5 14-19 16-24 325 365 -40 Won 1 4-6
Cleveland 26 45 .366 13.5 12-20 14-25 297 367 -70 Lost 5 1-9
WEST W L PCT GB HOME ROAD RS RA DIFF STRK L10
Texas 44 28 .611 - 26-11 18-17 380 310 +70 Won 11 10-0
LA Angels 41 34 .547 4.5 19-16 22-18 355 365 -10 Lost 1 6-4
Oakland 34 40 .459 11 21-16 13-24 290 317 -27 Lost 3 2-8
Seattle 30 42 .417 14 20-18 10-24 247 306 -59 Lost 1 7-3
National League
EAST W L PCT GB HOME ROAD RS RA DIFF STRK L10
Atlanta 42 31 .575 - 24-7 18-24 352 292 +60 Lost 3 6-4
NY Mets 41 31 .569 .5 26-11 15-20 335 282 +53 Lost 1 7-3
Philadelphia 38 32 .543 2.5 20-15 18-17 329 297 +32 Won 3 7-3
Florida 35 37 .486 6.5 19-19 16-18 346 321 +25 Lost 1 5-5
Washington 33 40 .452 9 20-16 13-24 299 335 -36 Lost 1 3-7
CENTRAL W L PCT GB HOME ROAD RS RA DIFF STRK L10
St. Louis 40 32 .556 - 23-12 17-20 316 259 +57 Lost 1 6-4
Cincinnati 40 33 .548 .5 23-17 17-16 350 332 +18 Won 3 4-6
Chicago Cubs 32 40 .444 8 18-18 14-22 298 321 -23 Won 1 5-5
Milwaukee 32 40 .444 8 14-19 18-21 351 379 -28 Won 4 6-4
Houston 28 45 .384 12.5 16-24 12-21 250 368 -118 Won 2 3-7
Pittsburgh 25 47 .347 15 16-19 9-28 239 404 -165 Lost 3 2-8
WEST W L PCT GB HOME ROAD RS RA DIFF STRK L10
San Diego 42 30 .583 - 23-16 19-14 298 239 +59 Lost 1 5-5
San Francisco 39 32 .549 2.5 24-12 15-20 304 254 +50 Lost 2 5-5
LA Dodgers 39 33 .542 3 23-13 16-20 335 330 +5 Won 1 3-7
Colorado 38 34 .528 4 23-14 15-20 332 289 +43 Lost 1 6-4
Arizona 28 45 .384 14.5 18-18 10-27 347 424 -77 Lost 2 3-7

Posted in business, News, Science, Technology | Tagged , , , , , , , , | Leave a comment

28 May 2010 – Traveling Home

[To read about the trip conveniently, go to Top Posts and pick the 8 May 2010 entry.  You can select the next post at the bottom of the current post.  More pictures are coming.  JF]

We rose at 6:00 AM and made it to the airport with little difficulty.  On previous overseas trips, I would usually wind up with more foreign currency than I wanted. I finally realized that could get rid of it by using it to pay part of my hotel bill.

The only real problem was at the Barcelona airport, navigating the process to get VAT refunds. I got part of it in dollars, and the rest will come by mail sometime in the future.

The flight to Atlanta was fine, but we are now sitting at Gate 29 waiting for our San Diego flight which has been delayed from 4:55 to 10:30 PM due to bad weather. We finally got home just after midnight Saturday morning.

The bad new is that as I left the plane, I left my fanny pack and camera on the floor, and by the time someone went back to find it, it was gone.  So I lost my last day of pictures, including the Salvador Dali museum, and our favorite restaurant.  Other than one day of pictures, there was nothing irreplaceable, and I’m already over it.

It was a great trip.

Posted in Travel, Uncategorized | Tagged , , | Leave a comment