Category Archives: Politics

From NIMBY to BANANA

The 2005 government report entitled Peaking of World Oil Production: Impacts, Mitigation and Risk Management, by Hirsch, Bezdek, and Wendling, is a sobering tally of the current picture of oil production and consumption in the world today. Often referred to as the Hirsch Report, the authors take a “now shot” of the global oil production scene and speak directly to the matter of mitigating the approaching economic disruption that must usher an unprepared nation into a future of peak and declining oil production.

If you read the Hirsch Report and pay attention to current events, you may be gripped by a kind of cognitve dissonance, or a haunting sense resembling a schizophrenic episode of contradictory voices in the collective consciousness.  While the global warming showboat is paddling up and down the Mississippi blowing steam and calliope music, nationalized oil producers are failing to answer calls for increased production in reply to a dramatic ramp-up in petroleum demand. Some call for increased exploration and others call for drop in replacements for petroleum. All the while, evidence accumulates that the ecosystem suffering from consumption and waste generation.

As with any discussion involving economics, it is possible for people to speak imprecisely when discussing supply and demand. Econobrowser takes Hirsch to task in this manner. It seems that many of us confuse demand with desire.

Supply equals demand today, supply will equal demand in 2025, and supply will equal demand in 2050. Whatever Hirsch means by “peaking of world conventional oil production,” it certainly isn’t the condition that “production will no longer satisfy demand.”

Our news media, now almost fully morphed into a perverse mix of gibbering Bill O’Reilly clones and entertainment news programming, prattles endlessly about the hurtful gasoline prices and truncated vacation plans. Government makes flatulent noises about more drilling, but hardly a peep about reduced consumption.  Where is the journalist corps? Who is asking the tough questions?

In isolation, either climate change or an exponential oil shock are more complex than nimrods leaders in the Bush administration can process. Together, these stresses add up to a major challenge to the way we live.  Maybe the situation is more complex than any nation can reasonably respond to. With global prosperity comes global demand for resources.  Western nations have built a house of cards based on cheap petroleum. Instead of wage growth in the past 20 years, we have been given easier access to credit. Instead of increased savings, we have found ways to burn up discretionary income.

A major part of what has to happen to adapt to the new reality of petroleum scarcity is a remodel of our infrastructure. We need more passenger rail lines and terminals with the necessary right-of-way issues taken care of. Workers need to live closer to their place of employment. The airlines have to figure out how to operate profitably with reduced passenger miles. We must upgrade our electric power distribution system to accommodate the increasing reliance on electrical energy. If wages do not change, we must adapt to having less discretionary income to spend. 

But a remodel of infrastructure will require that we adapt to living nearer to it. In the past, a proposal to build a power plant is met with a chorus of outrage or “concern”. It used to be called NIMBY- Not-In-My-Back-Yard.  The latest acronym is BANANA- Build-Absolutely-Nothing-Anywhere-Near-Anything. New power transmission lines and generating plants will have to go up and it will have to happen somewhere. People naturally fret about real estate prices and their view from the dining room window. I foresee more exercise of eminent domain in the future.

Farewell George Carlin

June 22, 2008, Santa Monica, California. Comedian and satirist George Carlin died sunday evening after checking into a Santa Monica hospital complaining of chest pains. He was 71.

Carlin was a brilliant social satirist and comic. He had the ability to look at ordinary things from a different angle and see the obvious obsurdity in things most of us accept as simple background noise. This is one of the key attributes of a successful satirist and comedian.

I think it’s the duty of the comedian to find out where the line is drawn and cross it deliberately. 

The very existence of flamethrowers proves that some time, somewhere, someone said to themselves, “You know, I want to set those people over there on fire, but I’m just not close enough to get the job done.”

I went to a bookstore and asked the saleswoman, “Where’s the self-help section?” She said if she told me, it would defeat the purpose.

There’s no present. There’s only the immediate future and the recent past.

Not only do I not know what’s going on, I wouldn’t know what to do about it if I did.

-George Carlin

Carlin was a serial quipster who pushed the boundaries of social norms. His Seven Dirty Words ended up as the center of a 1978 Supreme Court ruling that affirmed the right of the state to bar “indecent” of speech on the public airwaves.

While it is common for contemporary comedians to exploit “indecent” speech for shock value today, few seem to have the facility with language that Carlin had. He was able to reduce to a few short humorous sentences the dark uncertainties that many of us have with common subjects.  Carlin’s observations on taboo subjects put him well ahead of his time.

Verbund Manufacturing

German manufacturing culture does many things very well, but a few things particularly stand out. One of these items pertains to the concept of verbund manufacturing. Verbund simply means “integrated” or “linked”. Verbund manufacturing sites are clusters of manufacturing units that take advantage of proximity. Clustering can offer certain logistic and energy advantages if done intelligently.

A cluster of manufacturing sites can operate and share a co-generation plant for the distribution of steam, waste heat, and electricity. Large capital items like steam plants can be shared so funds can be plowed into larger scale for better economy. Rail operations and other transportation resources can be shared as well. Clustering also provides for the possibility of vertically integrated manufacturing on site and a reduction in transportation costs.

Clustered manufacturing may also have the effect of concentrating the supply of skilled workers for the labor pool. A manufacturing nexus can attract community colleges and other vocational opportunities for the next generation of employees.

The USA has many manufacturing sites where similar industries congregate. Look at the Gulf coast with all of the refinery locations. But the extent to which there are synergistic interactions between companies is unclear.

In the US, corporations tend to behave as the Republic of Exxon or the Republic of the Union Pacific. This kind of a fragmented confederation of corporate states is becoming obsolete as we go up against nationalized business entities that control key resources and trade. The key to future vitality is greater efficiency with resources. Synergistic cooperation is one model that is available. But to do this requires trust and the desire to cooperate for mutual benefit. Competition begets gamesmanship and posturing which works against the verbund model for US businesses.

US corporations have much to learn from this business model.

Spacely Sprockets

A commentor recently pointed out that Th’ Gaussling was sounding off in a nationalist/socialist way. While I’m pretty sure I’m not a socialist, I must admit that I’m on a nationalistic bender at the moment. And by nationalistic, don’t think for minute that I get weepy and sentimental over Kenny Rogers flag waving ballads. I don’t.

But I do believe that, in the short and bloody history of humanity, this North American culture of ours has produced or advanced some truly amazing things. Like space exploration and antibiotics. Airplanes, transistors, synthetic chemistry, and cinema. We’ve had some low points as well. But in spite of our war-like behavior, much good has come from our industriousness. 

And, I am anxious to keep it much of it running. There is no return to a pastoral life in the Shire. We are electric hominids whether we like it or not. The very existence of life itself leads to disorder. Highly ordered organisms that we are, we create vast amounts of disorder to energize life and hold our molecules together in cellular membranes.  Practically by definition, we cannot help but leave a carbon footprint. The trick is to avoid adding carbon faster than the cycle can accomodate.

It is plain as day that the USA is trending in a bad economic direction. I’m not talking about economic indicators or some political movement. I’m talking about our business culture. I believe that our manner of doing business has gone astray.  We have come to value the wrong people and unhealthy organizational behavior. We have come to admire those who appear to generate wealth by the manipulation of financial contrivances and accounting machinations. Strangely, the notion of manufacturing as a desirable activity has become nearly obsolete.

We don’t need Grand Theft Auto IV or Microsoft Vista or better cell phone gimmicks. We don’t need more gadgets to give neurotic, hyperactive, workaholics 2X better web connectivity.  Somehow, we have become intoxicated with computer technology to the point where we feel we need to fill terabytes of disk space with junk data rather than going outside and planting a garden or talking to the neighbor.

The greedheads in banking, finance, and real estate have helped to construct a business finance machine that few understand. Greed as a virtue is the norm. The right to petition congress has come to mean a docking port for electronic funds transfer to the military-industrial complex. If gaming the system is possible, then it is manditory.

We don’t have to abandon the basic principles of laissez faire markets. Markets work. Even the Chinese communists realize this. But we don’t have to shut our brains off either.

We do need a comprehensive mass transit network covering most of the continent. We need better ways to generate and transfer electric power. We need to find ways to make sure that people in Honduras have clean drinking water.

We don’t need a better version of Excel or SAP. We need Spacely Sprockets. We need people to continue to go into the trades and build things. We need welders and electricians and machinists, millwrights and longshoremen.  This country needs to get back to the fundamentals of manufacturing tangible products.

 

 

Thus Begins Cold War II

Russia celebrated a holiday recently with a large scale military parade on Red Square. Just like the bad old days. Putins sock puppet, President Dmitri Medvedev, smiled while Putin stood stern-faced at his side at the annual Parade of Hardware.  Insiders claim that Russia’s effort to modernize its military forces is anemic and plagued with corruption. Putin and followers are plainly appealing to that voice in the Russian soul that longs for strongman leadership.

China, on the other hand, is quietly constructing a secret underground nuclear submarine base on Hainan. Hmmm. A secret underground lair. Sounds like Dr. No.  I doubt there are miniskirted nubiles with machine guns. Bummer.

Whereas Russia is fighting infrastructural inertia in its return to the platform, China is methodically ramping up its military with an economy flush with cash. With funding from its exports of Wal-Mart inventory and other Cheap Plastic Crap (CPC) marketed through its many outlets in the USA, China is moving closer to a blue water Navy and an SSBN fleet.

In the next 20 years, we are likely to see China flexing its muscle by positioning naval (carrier ?) groups and hints of Chinese submarine fleets prowling the continental shelves of the world.  Just like us.

While the USA shadow boxes with multiple terrorist threats around the world, China plods forward minding its own business and funding its own growth.

Four US presidential terms were squandered following the fall of the Soviet Union- 2 x Clinton and 2 x Bush.  US efforts to engage Russia in economic cooperation were weak at best. The highlight was perhaps the downgrading of Soviet era nuclear materials.  Instead of building friendships and trade cooperation, US presidents were distracted by faulty nation building exercises and dubious foreign adventures. Mikhail Gorbachev himself recently lamented that “… every US president has to have a war…”. 

US government needs to spend a 4 year term focused inwards. We must address US infrastructure as eagerly and aggressively as we land troops on the sandy reaches of the earth. The US needs an upgrade in electrical power distribution, bridges, its rail “system”, and its ports.

Collectively, we must find ways to keep factories and businesses in the USA. We need to reconsider the structure of the Code of Federal Regulations. Our regulatory structure is now so complex and extensive that we face the real risk of killing innovation. Our tax code is too complex and too burdensome on citizens and businesses. The government is funding far too many activities.

In short, the USA must get back to basics. The country is in a existential crisis and we need to get grounded again. We need fewer rules in our lives, not more. We need fewer people telling us how to live an authentic life. More of us need to spend a bit more time in the pursuit of happiness.

Oligarch Council of the United States

As if further proof of my true tediousness was really necessary, Th’ Gaussling will disclose to the world that I log a fair amount of odd-hour time watching C-Span 1 & 2.

Saturday morning’s broadcast bonanza was a re-airing of an earlier awards gala put on by the Atlantic Council.  Among the illuminati doling out awards was “Henry the K”. Yes, the venerable Henry Kissinger- Dr. Shuttle Diplomacy.

Arguably, among President Nixon’s gang of operatives, Henry Kissinger was a towering and intimidating intellect. In the management of the Viet Nam “conflict” and the diplomatic opening of China, Kissinger was extremely influential in the Nixon Whitehouse. But unfortunately for Kissinger, he continues to be unpopular in some circles. Chile has invited him to answer some difficult questions. In his characteristic 20 Hz basso profundo voice, Henry has declined to visit.

Not a tall fellow, Kissinger stood on a stool behind the podium and read a glowing and heartfelt introduction for one of the Awardees- Mr. Rupert Murdoch. Mr. Murdoch was held out to the world by the Atlantic Council as an example of shining excellence in international business.  I can only guess that the poobahs and grandees on the awards committee, through the refractive lenses of their world view, somehow missed the profound global bastardization of broadcast news under the wing of News Corp. More likely, they do not see it as a perversion but rather a turnabout to right thinking.

As a compulsive channel surfer, I switched to the other C-Span channel just in time for proceedings of the House Judiciary Committee, chaired by the Honorable Representitive Conyers (D-MI).  Conyers was reading the riot act to the Director of the FBI regarding due process for members of the house during FBI raids.

After a few minutes of roasting the Director, the chair yielded to the Honorable Representative Smith (R-TX). Rep. Smith began by figuratively Kowtowing to the Director and then prefaced his comments by referring to a report from Fox News, that fountain of information plumbed by Mr. Rupert Murdoch.

That a senior member of congress would preface his comments by citing Fox News as a primary reference is surely telling of the reach of Rupert Murdoch into the political machinery of the USA. Of course, citing Fox News is not a new rhetorical habit of neo-conservatives. But the simultaneity of the Murdoch pageantry on C-Span 2 and endorsement of Murdoch’s Fox News as the Republican “Van Nostrand’s Encyclopedia” on C-Span 1 was at once fascinating and faintly anticholinergic in effect. Though certainly random, this overlap of Murdoch mania only brings into focus the influence this man.

Murdoch went on to opine on the stability of NATO, stating

“We must face up to a painful truth: Europe no longer has either the political will or social culture to support military engagements in defense of itself and its allies. However strong NATO may be on paper, this fact makes NATO weak in practice. And it means that reform will not come from within.”

Murdoch has turned his attention to the expansion of NATO. A member of the merchant nobility, Murdoch has said aloud what is perhaps already on the minds of policy makers. Expansionism. Western exceptionalism. Democracy through superior firepower. 

The spread of democracy is a good thing. And western culture has much to offer. But a US government with insufficient checks and balances is a dangerous thing. Especially when our petro-president is on a security binge and is driven by an autistic military /petroleum fixation.

 

Hip-motized by Doctrine

It is interesting how people can adhere to abstract doctrines while reality rages all around them.  In particular, I am thinking of a recent “conversation” with an economist friend. A fundamentalist libertarian, he steadfastly refuses any hint of pragmatism in favor of his utopian idealology promoted by certain Austrian economists.

To the economist, anthing that smells like collectivism of any sort is deemed an automatic throwback to the failed ideals of Marx. It’s all about the individual and his property. Nevermind that any anthropologist will observe that people spontaneously form groups and associations to lessen risks and burdens associated with survival. 

Harm comes to people and society when those with a power position advocate for abstract doctrines over the welfare of citizens.  Notions of political structure, reproductive issues, qualification for acceptance into an after-life, or slavery are all sacred abstractions on which people have taken stands and many have killed or been killed for.

How many people have needlessly died because of the squeemishness of celebate men with the idea of condoms? How much destruction was released in Southeast Asia due to the opposed idealogies of Marxism and Capitalism?

Today, Americans face continued endurance of a broken health care system because certain vocal idealogues profess doubts over “Socialized Medicine”? American health care is already socialized to some extent. But in a way that favors the flow of cash to the coffers of corporate medical providers and insurers. Why do you think Warren Buffett is so enthusiastic about owning insurance companies?  You get paid up front. Surely there are other health care models out there that we can emulate.

There is a Skunk in the Woods

So what is Karl Rove up to during this run up to the ’08 election? I was reading an article on fascism in America and my minds eye naturally turned to this character. I hear he is writing a column for Newsweek.  But what else is he doing? What is he up to?  Hmmm.  

The “Architect” should be hounded mercilessly by reporters for pictures and interviews a` la Britney Spears. This nocturnal creature should be in plain view during election season.

Passport Control

According to the AP, emloyees of Stanley, Inc., have beed fired for reportedly viewing the passport records of Sen. Obama.  The New York Times reports that the passport files of Senators Obama, Clinton, and McCain have been accessed inappropriately. Whether they revealed more than name, place and date of birth, and social security number remains to be seen.

No doubt this will result in a flood of rule making and billable hours for consultants. It seems to me that there is an alternative to devising higher security for government records.  If the government collected a lower volume of sensitive information, then there is less information that can be inappropriately viewed. 

The gov’t collects a good deal of information from people who fill out forms for some service or consideration. The question is, just how many different data fields are really necessary for a given service? In other words, how much excess information is being collected to satisfy the just-in-case doubts suffered by the gov’t form designer?

Passport information may be a bad example on which to raise this question owing to the gravity of passport issuance.  But the larger questions still exists- Just how much information about citizens is truly necessary to run the government?  Are there any checks and balances here?