China's Quest for Black Gold with Green Dollars

Way back in October of 2004, Time magazine quoted Chen Huai of the Development Research Center of Beijing as saying, "The world has the oil, and China has the money."  If anything has changed about that statement, it is that it has become more true. China's supply of money and its demand for oil have both grown at an amazing rate.


In 2007, China consumed about 7,578,000 barrels per day (bbl/day), nearly 9% of the world's petroleum. By 2009, China consumed an estimated 8,200,000 bbl/day and its demand continues to rise.


Meanwhile in the United States, over the same time period, the US consumption dropped from 20,680,000 bbl/day to an estimated 18,690,000 bbl/day. While the US is still the number one petroleum consumer by far, its consumption has dropped.


My point for those on the left that blame the US for "Global Warning" is that rising economies such as China and India are quite willing to use petroleum and coal laden with sulphur and they are unencumbered by EPA regulations. A patriotic keepsake sold in the White House gift shop that is made in China - No, I'm not making this example up - will necessarily have been the cause of more pollution than that same item made in the United States - even before we factor in shipping.


Driving up energy costs in the United States doesn't mean less pollution - it means more. Driving up energy costs in the United States means fewer US jobs and more jobs overseas. Even the threat of additional energy costs will encourage companies to expand overseas rather than in the US. Something a rookie US Senator from Illinois never bothered to learn. Remember this?


In an interview with the San Francisco Chronicle back in January of 2008, then-Presidential candidate Barack Obama said:

"You know, when I was asked earlier about the issue of coal, uh, you know — Under my plan of a cap and trade system, electricity rates would necessarily skyrocket. Even regardless of what I say about whether coal is good or bad. Because I’m capping greenhouse gases, coal power plants, you know, natural gas, you name it — whatever the plants were, whatever the industry was, uh, they would have to retrofit their operations. That will cost money. They will pass that money on to consumers."

So when an Obama loyalist says that President Obama is a friend of business and is pro-growth, remind him of this interview. Anyone who aspires to be President should understand that their words have consequences. Combine that foolish statement with the continued ban on drilling - extended through 2017 for the eastern Gulf of Mexico and even off the coast of Virginia back in December. Meanwhile, Russia has plans to drill off of our southern shores and Washington sits idle.


Meanwhile China is aggressively seeking oil contracts around the globe, fueled by interest payments from our own country. So, you hypothetically say, who cares how China spends our old money? I'm glad you asked.


No one buys petroleum just for fun. It's not collectible; it's not ornamental; and it smells funny. People buy petroleum so that they can manufacture energy which is then used to manufacture items that are worth more than they cost to make. It's called making a profit - and producing trade goods.


So who buys those trade goods? The US buys about $273 billion more per year from China than they buy from us. Hey, no problem, we just borrow the money from China. Back in June, 2009, the US Treasury Department owed China only $757 billion just in long-term debt. Is it good news that this is only about five percent of our overall debt? I'll let you work that out.


So how do we get out of debt? Well, we spend less, but in the long-run, we must produce more 
and the only way to produce more is to use energy. Let's face it: a guy living in a cave with a wood-fueled fire is not going to manufacture a new car.


The Obama Administration may have forgotten, but business owners and conservatives know that energy is required to produce things. Back in 1776, Adam Smith wrote a book called An Inquiry into the Nature and Causes of the Wealth of Nations. Smith's "system of natural liberty" was capitalism unfettered by government interference. So, while our government prevents us from using our natural resources, China is making the most of the opportunity. It would appear that what government has forgotten - or chooses to ignore - China has learned.

Around the World in 80 Lines - Or Less

Gadhafi’s Speech Fails to Set Record

Looking like a refugee from a Star Wars’ bar scene, waning Libyan strong-man Moammar Gadhafi broadcast his confused harangue to an audience of captive Libyans for a mere two hours. He again failed to set a Guinness World Record for speech length by a dysfunctional, megalomaniacal, delusional tyrant. 

The current record is in dispute, but Fidel Castro, Nikita Kruschev and Hugo Chavez all have much longer, documented diatribes. Kim Jung Il’s speeches were disqualified because they are actually delivered by a Disney-manufactured Animatronic “Doc” dwarf with a bad dye job.

Gadhafi is blaming the US for his domestic problems and is vowing to make himself “a martyr” in response. As Oscar Wilde said, “A thing is not necessarily true because a man dies for it,” but if Gadhafi wants to inhale an RPG then I might be willing to think about it.

The self-proclaimed “Mad Dog of the Middle East” decides upon martyrdom just as a former Libyan Justice Minister states that Gadhafi was much more involved in downing the Lockerbie, Scotland, downing of Pan Am Flight 103 than previously believed. I’m sure there are Americans - especially those related to the 259 innocents killed, as well as Libyans, who would gladly help Gadhafi toward his stated goal of assuming room temperature.

Remember the Federal Debt

With the focus of Americans split between the Middle East and the Wisconsin teachers’ drama, the federal debt has slipped from the view of many. Republicans are in a position to use an agreement to a continuing resolution to wring spending cuts from Democrats. The questions will be: 1) Will the Democrats believe they can bluff Republicans into approving a series of continuing resolutions that fail to cut spending; and, 2) If, as is almost certain, they do believe so, will Republicans then fold?

Washington’s addiction to spending taxpayers’ money is obvious – as is the fact that Congress is in denial. Is there a 12-step program for governments?

Democrat State Legislators Continue Hide-n-Seek Marathon

Rumor is that the missing Democrat Wisconsin state senators are hiding on loony leftist Keith Olbermann’s TV show. This will likely come to light as soon as Olbermann has a viewer. 

Correction and Amplification: It turns out Olbermann's scheduled show on Current (aka Albert Gore, Jr.) TV has not yet aired. Who knew?

Democrat state legislators from Indiana are also in hiding rather than vote on legislation which they do not have the votes to stop. At this rate Democrats may want to change the name of their party to reflect something they actually believe in; and it’s obviously not representative Democracy. I’m accepting nominations for a new, more appropriate name and symbol. One nomination is the “Denial Party” and their mascot would be an ostrich.

Harry Reid and Prostitution

Senate Majority Leader Harry Reid (D-NV) is working on a way to continue to fund the federal government rather than work on ways to cut federal spending. Reid is also calling for an end to legal prostitution in Nevada. Having just run a political campaign there, isn’t Reid a hypocrite?

Beautiful, Sleepy, Deadly Mexico

Recent tragic events have brought home the point that Americans are no longer safe in Mexico. It appears that warring drug cartels are a large part of this, but this is a departure from their previous strategies that avoided violence toward Americans. It begs the question, “What happens when those drug cartels change their strategies to include distribution in the United States?”

For Mexican drug cartels, it’s a business decision. There are those who argue this will never happen, but for the drug lords, it’s simply “vertical integration”. Like all business decisions, it’s a matter of risk and reward and the only way to halt it is to either increase risk or reduce reward so that it’s not a profitable project.

Part of that strategy to increase drug cartel costs might be to do a much better job of halting illegal border crossings. So obviously the Obama Administration will . . . file another lawsuit against Arizona! Yes, the Arizona legislature has proposed new anti-illegal immigration legislation, which will inevitably be challenged by the Obama Administration as soon as it is passed. Good luck on that, Arizona.

Where are the Adults? Obama's Big Adventure in the Middle East

It isn't so much that President Obama appears to be doing nothing about the Middle East's rolling riots. It's that feeling of dread that he might attempt to do something and the near-certain knowledge that it will end badly. This is a man who is so far out of his depth that his administration has a chronic case of the Bends - sort of a "Rapture of the Dweeb".

Less than a single term as a US Senator, eight years as a state senator, no executive branch experience, no business experience, but experience as a "community organizer" is not the dream resume' of a US President in troubled times. In fact, Obama would not qualify to be an advisor to himself.

The problem with a democratic republic is that you get the government you deserve. So, we have an inexperienced, ideologically-blinded leader who either does not understand the importance of the current events in the Middle East or is unable to fathom a response beyond issuing meaningless statements.

I don't need to tell you that oil prices are going through the roof. I don't need to remind you that oil rigs have been floated off from the Gulf of Mexico to locations where a profit is to be had. I'm sure you realize that even if the drilling moratorium is lifted today, that it will be at least 18 months before directional drilling from current oil platforms might deliver more petroleum - and then there will be a bottleneck because we haven't built an oil refinery in this country in over 30 years.

Obviously, this isn't all Obama's fault. The conservatives we have elected to office have been timid and backed down before the mostly-imagined wrath of the environmentalist lobby. Where, by the way, have those jackals been lately? I don't see them on TV bragging about what a great job they have done in preventing the construction and implementation of oil refineries, nuclear energy plants and oil drilling rigs.

Apparently mouthy environmentalists are as scarce as Keith Olberman, who is now on some faux channel, and Albert Gore, Jr., the owner of said faux channel. In the meantime we live in the land wrought by these over-achieving, climate-change mongering, pseudo-science promoting socialists. Welcome to the land where people with common sense sit at home on election day.

Back in the Middle East, those despots who can maintain the death-grips on their countries are about to reap a fortune as we pump our livelihoods into our gas tanks in the form of $5 per gallon gasoline. Why? Because we have made mostly poor decisions for the past century and forgotten that in order to prosper some Americans must be allowed to make a profit. Now, with a crumbling economy, deep debt and an oncoming energy crisis; we have little need to worry about Americans making a profit.

As always, someone somewhere will make a profit, but he won't be an American. In fact, he probably won't even like America and will gladly support those who would destroy us. It's time to send in the adults - and there are apparently none in this administration.

Dance with Who Brung Ya – The GOP and the TEA Parties

The complicated dance between the Georgia GOP and the TEA Party groups will continue on the morning of March 12th when all counties hold their county conventions at 10 AM and even earlier when smaller counties hold their mass precinct meetings at 9 AM. This is a great opportunity for the GOP that will eventually play out across all 50 states, but some are worried about who will call the tune.

The GOP meetings are open to all legally registered voters of each county who believe in Republican principles. This would, in almost all instances, include TEA Party members. Some in the Republican Party are concerned about this, but there is no reason to worry.

The TEA Party people are here. I don’t believe they are going anywhere anytime soon. The only question is if they will operate from inside the Republican Party or from without. There are a lot of advantages to having the TEA Partiers within the GOP.

For county chairmen who want to grow their parties, this is a great opportunity. For county chairmen who are worried more about personal control than growth of the party, then it may be time for someone else to take the reins. It’s about leadership, not control. Welcome these folks aboard, do a good job and they will likely allow you to lead them. Block them or attempt to diminish them and you may find yourself the leader of a lifeless party or even outside looking in.

You can’t shake hands with a clenched fist; let go and clasp hands.

The Strategy to Begin Balancing the Budget

Entitlements are the 800-pound, beer-chugging, Angel Dust-snorting, psychotic gorilla in the room. It may be too late, but people are beginning to get a little nervous. Because of their size, we all know that entitlement programs, such as Social Security, Medicare and Medicaid must be addressed if we are to balance the budget. The question is: Will Congress do so?

Even minor changes in Social Security, though, have met with surprising resistance from politicians on the left and from recipients. Some sensible suggestions phase in minor changes and don’t affect anyone within 10 years of retirement and affects no current recipients. The overblown reaction to such suggestions are emotional rather than logical, and this must be taken into account.

I am convinced that Americans will accept changes to entitlement programs if – and only if – they are convinced that all other measures have been undertaken. So while entitlement benefit payouts must be reduced, but only after other programs have taken their hits.

Before taking on Social Security, Medicare and Medicaid; Republicans in Congress should work to eliminate the Department of Energy, the Department of Education, Fannie Mae, Freddie Mac and that’s just a beginning. Funding can be eliminated or reduced, for Obamacare, the Corporation for Public Broadcasting, the Department of Agriculture, the Department of Defense and others.

If the GOP-led House fails to accomplish this, then the burden shifts to the Democrats. Republicans can even, somewhat believably, claim that transfer payments might have taken a lighter hit if the other cuts had not be stone-walled by Democrat legislators in the US Senate.

If these cuts or eliminations are made, then the recipients of transfer payments will know that the task of balancing the budget won’t be completely on their backs. They will also understand that the current fiscal problems are, indeed, serious. For that reason, these other programs must go first, even if they are a lesser part of the deficit.

Interestingly, it has mostly been the Democrats that have accused Republicans of making “meaningless cuts” – small cuts that the Democrats could have made when they controlled both bodies of the legislative branch and the executive branch. Democrats are challenging Republicans to take on transfer payments by minimizing other GOP-suggested cuts. These accusations also go along with a strategy that some have openly accused the Democrats of undertaking.

President Obama’s suggested budget was described in newspapers as everything from “not serious” to “a joke” partly because it failed to address entitlement spending at all. Obama has been accused of playing political games with the deficit; almost daring Republicans to address transfer payments. The theory is that whatever changes the Republicans suggest, Democrats will accuse Republicans of “putting Grandma on a 9 Lives diet”.

My belief is that if Republicans follow my suggestion and eliminate money-pit federal programs first, the Democrats' high-level hypocrisy on the budget will stand starkly highlighted against a background of self-serving demagoguery. If that happens then the corrections to entitlement spending has a chance to be made law.

The 800-pound gorilla won’t go away until he is dealt with properly, but the political game of “Economic Chicken” needs to be made meaningless first. The only way to do that is to address other spending cuts first and to do so brutally.

The Jim Marshall Farewell Tour, Robo-Calls and Other Political Mysteries

The Jim Marshall Farewell Tour

Welcome back, my friends,
To the show that never ends
We’re so glad you could attend
Come inside, come inside. – Karn Evil 9 First Impression by Emerson, Lake and Palmer

The third month of the Jim Marshall Farewell Tour is now well underway with no end in sight. Marshall’s eight years of Congressional service weren’t exactly the stuff of legends, so why the big fuss? After all Democrat Marshall just lost a popular election to Republican Austin Scott.

At this rate, the celebration of Marshall’s relatively short Congressional career may continue into 2012. Then the question will become, “Ummm, isn’t this campaigning?” Redistricting may take care of that question, but apparently many residents of Macon, especially the editorial board of the Macon Telegraph, are jonesing for a resident US Representative. I’m willing to lay odds that wish won’t be granted within this decade.

On the bright side, Marshall is receiving praise for his professional and helpful attitude in the transition of the GA-8 Congressional offices and constituent services. This is a good thing.

On the other hand, In a single story, The Macon Telegraph flubbed both the Warner Robins physical address of GA-8’s new congressman, Austin Scott, and the telephone number for Scott’s Tifton office. The correct Warner Robins address is 230 Margie Drive, and the correct Tifton phone number is 229 396-5175. Everyone makes mistakes, but combined with their editorials and the flubbed election coverage (to Scott’s detriment), the continued errors are beginning to look like a pattern. Only liberals can manage to use incompetence as a weapon.

Mystery Robo-Calls

Last week many Georgians received robo-calls reminding them that “most Georgia counties” were conducting their mass precinct meetings on Saturday, February 12th and that all Georgia voters should attend. Most people receiving the automated calls assumed that the calls were paid for by the Georgia GOP. They weren’t.

This explains a couple of obvious mistakes. For example, less than 20 Georgia counties had their mass precinct meetings in February. The remainder – counties with a population under 80,000 as of the 2000 census - will have their meetings on March 12th. In addition, the call encouraged all registered voters to attend the meetings, not as the GOP Georgia Call to Convention states: “. . . residents who are legally registered to vote and believe in the principles of the Republican Party are urged to participate in this process.” No word yet on who paid for the robo-calls. Honest mistakes or something a little more sinister? Either way, it’s Georgia politics as usual.

High-Speed Rail in Georgia?

While I love the idea of high-speed rail in Georgia, unless the state government indulges in widespread mass-discount lobotomies, it shouldn’t happen. We don’t have the population density to support mass transit rail and we don’t have the need for high-speed rail. If the needs were there, then private companies would provide it.

We don’t need to spend money to build a public service that will cost us more money every year. The mystery here is why anyone would seriously consider the state building a rail system. When the rail enthusiasts call, “All aboard!” just remember that the trestle down the track is out and the state can’t afford to fix it.

James Clapper: Director of National Intelligence or Human Oxymoron?

From the “Never trust a man named after an ‘As Seen on TV’ product” department comes Director of National Intelligence James Clapper. Clapper proclaimed, "The term Muslim Brotherhood is an umbrella term for a variety of movements. In the case of Egypt, a very heterogeneous group, largely secular, which has eschewed violence and has decried al-Qaeda as a perversion of Islam.”

If I were to buy this claim, then I would expect to see large numbers of Christians and Jews as members. I’m betting there is not a Southern Baptist wing of the Muslim Brotherhood or an Orthodox Jewish wing or a Hindu wing. I’m betting they are pretty much all Muslim and pretty much all anti-Israel and pretty much all fans of Iran, and to quote the Eagles from Victim of Love, “I could be wrong, but I’m not.”

A spokesman for Clapper – they weren’t going to let Clapper near a microphone twice that day – later said that Clapper meant that the Muslim Brotherhood was willing to work through secular political system. look out Michael Phelps, because in Clapper’s little world everything that swims is a fish.

The truth is that for a Director of National Intelligence, James Clapper is certainly lacking intelligence. You can take that either way and be right.

Congress: Act or Fail

Let’s be clear about one thing. The phrase “reduce the deficit” is a nice way to say “raise the debt more slowly.” Many voters don’t understand the difference between the “debt” and the “deficit” and quite a few think they mean the same thing. It is in everyone’s best interests that people understand the meaning of the terms and why they are so important.

The federal debt is the accumulation of every budget deficit this nation has ever had minus the extremely rare budget surpluses. If we “reduce the deficit” it just means that we added less debt than we added the previous year. Does that really sound like a good thing?

The only way to reduce the federal debt is to have annual budget surpluses. We’re not even close to having a surplus and a surplus has not been proposed by anyone in a position to make it happen.

If annual budget surpluses were a kind of animal, then they would be on the endangered species list and believed extinct. Seeing a federal budget surplus would be like sighting a flock of Passenger Pigeons being chased by Saber-Toothed Tigers as Wooly Mammoths watched. To see a federal budget surplus with the Democrats controlling the US Senate and occupying the White House would be like sighting a flock of Passenger Pigeons wearing I-Pods being chased by unicycle-riding Saber-Toothed Tigers as Wooly Mammoths watched while doing the Hula.

In normal situations, to produce a budget surplus, the federal government must do some combination of three things: increase its income, decrease its spending or sell its assets. In this instance, there is another thing that can and must be done first: we must reduce the risk to American businesses from government.

There is always risk in conducting business, and there will always be risk. Risk can be mitigated, to a degree, depending upon the amount of control the business has over the threat. A farmer can’t control the weather, but he can invest in an irrigation system and buy insurance in case of natural disasters.

What a farmer, or other businessman, cannot do is control a rogue federal government that stubbornly refuses to understand the reality of commerce. President Obama says he wants business growth but his actions are anti-growth. Of course business is concerned and reluctant to spend money in a bad economy with a clueless administration whose identity is wrapped in anti-business policies such as Cap and Trade, Obamacare, increased taxes and increased restrictions on energy production.

If the Obama Administration really wants to encourage business growth, which is a much more efficient way to increase revenues, then it would simply halt its actions that increase risks to business. That course of action would not only increase production, it would reduce costs to business and government.

Another threat to business is the looming federal debt and this is where we must rely on Congress. That debt, and the federal government’s failure to take it seriously, discourage investments. A reduction in spending would allow the private sector access to resources which it could use for productive means.

There are predictions of economic doom if the federal government reduces spending too quickly. It would make sense if economic shocks were to happen, and there is a strong argument that reducing entitlements too quickly would almost certainly be chaotic.

On the other hand, as we rack up more debt daily, we are reducing our available options to control our own future. I mentioned earlier that there are various combinations of things that can be done to begin reducing the debt. The final option is to default on our debt and every day that passes without actions to reduce spending and the debt we are a day closer to complete failure.

Taking bold action in the face of an oncoming crisis is risky. Failure to take bold action in the face of an oncoming crisis is not risky because the outcome is known; it is a guarantee of total failure.

Congress, the time has come: Act or Fail.

Reagan said "Nyet!"

President Ronald Reagan
Image via Wikipedia

The new Soviet Premier was popular with citizens and the media, even in the west. President Ronald Reagan was a former actor and California governor whom the American press deemed unpolished and uninformed about foreign policy. The press accused Reagan of ignoring the voices of the American people; meaning themselves, of course.

Reagan had the reputation of being a genial, likeable man in person, but of making policy decisions with little regard for how they would be accepted by Washington power brokers or the press. Especially, the press.

Soviet Premier Mikhail Gorbachev and his wife, Raisa, had been hailed as the living symbols of the new and improved Soviet leadership. They were featured on the covers of celebrity magazines in the US. Raisa’s shopping trips in Paris were covered on television. Even Britain’s great “Iron Lady”, Prime Minister Margaret Thatcher, said she could “work with” Gorbachev.

Many liberals openly wished that the US had such an open-minded, intelligent and worldly leader. Instead we were stuck with a “cowboy”, a talentless B-movie actor, an undoubted simpleton who used his acting ability to appeal to an ignorant American public. For nearly a decade, the Soviet Union had been on the rise, the US and its western allies were in a tailspin. It didn’t look good for “truth, justice, and the American way” – and Reagan was certainly no Superman. In fact, according to the Washington intelligentsia, Reagan didn’t even make a decent Clark Kent.

During the 1980 Presidential campaign, Reagan had promised the American people that the US would pursue the development of a “shield” against intercontinental ballistic missiles (ICBMs) that were the method of delivering nuclear warheads by both the Soviets and the US. If ICBMs could be stopped, then the threat of all-out nuclear war was erased. For the first time since the late 1940s, the world would have no fear of nuclear war and a possible, catastrophic “nuclear winter” to follow. To Reagan, using peaceful technology to reduce the threat of destructive technology was an obvious solution.

In Reykjavík, Iceland, during treaty negotiations, Soviet Premier Mikhail Gorbachev demanded that the US stop the “Star Wars” program or there would be no further treaty negotiations. Reagan refused. “Nyet," he stated in Russian.

Reagan said he would not halt a technological breakthrough that might put a practical end to nuclear warfare. This advance would forever remove the nuclear arms threat from American and Soviet children. Gorbachev responded that “Star Wars” would give the US a strategic advantage that would put the Soviet Union at its mercy, so its plans must be scrapped. There could be no treaty with the US unless the space-based missile interceptor program was discontinued immediately. Again, Reagan said, “Nyet” – and added that “Star Wars” was a program of peace, not war. The US would gladly share the “Star Wars” program with its Soviet friends. It was a brilliant strategy by Reagan.

In the US, it seemed everyone was outraged. The left was angry because Reagan didn’t capitulate and do as the Soviets demanded. The right, Reagan’s base, was stunned that we would even consider sharing technology that could assure America of space and military dominance for generations. Reagan was content to continue negotiations under his own terms.

When Reagan called the Soviet bluff, all over Manhattan and Boston, weak-kneed, weak-willed and weak-bladdered liberals had to change their suddenly damp undies. They were certain the world had come to an end. Reagan knew better.

In the Soviet Union, Reagan’s statement was taken much differently. Reagan was the little boy who said, “The emperor has no clothes!”

The Soviets were in dire economic straits. Soviet scientists did not have the resources - computing power or financial – to match the US commitment to “Star Wars.” Despite the Soviet Union’s wealth of natural resources, centrally planned economies are always far less efficient than free enterprise. The Soviet Union was crumbling from within and only continued concessions from the west would have secured its survival as a superpower. Ronald Reagan’s firm “Nyet” was vastly different than the acquiescence of Gerald Ford or the eager agreement of an ingratiating Jimmy Carter.

In effect, Reagan’s offer to share “Star Wars” told the Soviets that not only did the US not fear the Soviets, but that the Soviets were irrelevant to the future of the United States or of the free world. The Soviets yielded.

Reagan’s belief in the ability of the American people to out-think, out-innovate and out-perform a people enslaved by communist dictators seems obvious now. It wasn’t back then. For years the left tried to give Gorbachev credit for the eventual peace accord that was exactly what Reagan wanted: “Trust, but verify.”

Ronald Reagan wasn’t perfect. He made mistakes; but he was never mistaken in what he believed and in what he knew to be true. Reagan believed in an America that, given the opportunity, could do anything. In this year marking the 100th anniversary of Ronald Reagan’s birth, let’s strive to see our country through his eyes; the eyes of a believer.

Egypt: Winning After the Fall

We all know that the Egyptian government is very likely to fall. It appears that the United States government is unable to decide if this is good or bad. Good or bad at this time does not matter. What matters is winning the peace and ensuring freedom for the Egyptian people.

Take a good, long look at Egypt. I understand that many of us are worn out by the constant drama of the Middle East, but this will affect us sooner rather than later. If I were to recount, or even just list, the drama of the past 40 years in that region then you would probably not complete this blog. So, let’s just take a hard look at Egypt, keeping in mind that this is evolving rapidly and what I write may only be relevant for a few hours – or days, if I’m lucky. The key is that it is still “evolution and not “revolution”.

Background: President Hosni Mubarak has led Egypt since the assassination of former Egyptian president Anwar al-Sadat in 1981. Sadat was killed by Egyptian troops who were members of the Islamic Jihad, an offshoot of the Muslim Brotherhood (MB).

Mubarak, now 72, was the vice-president at that time and has been a reliable ally to the US government and reasonable in his dealings with Israel. The US has supported Mubarak for those reasons and because he has lent some stability to a region where it is a rare and precious commodity.

Egypt holds a major position in, not just regional, but world affairs. Egypt and Jordan are the only two Arab states willing to sign peace treaties with Israel, so the idea of a new Egyptian government has a significant impact on Israel and, by extension, the United States. In addition, Egypt controls the Suez Canal through which the US moves its naval assets in the region. More importantly to American consumers, up to 2.2 million barrels of oil per day can be shipped through the canal, and up to 2.3 million barrels of oil can be pumped daily through the Suez-Mediterranean Pipeline beside the canal. A total of approximately eight percent of the world’s trade passes through the 121-mile canal that connects the Indian Ocean to the Mediterranean Sea.

A closure of the Suez Canal area would cause an increase in petroleum prices as well as probable delays in delivery and possibly shortages. OPEC says it will increase production if the canal if closed, but the delay in oil deliveries caused by the 4,000 mile trip around the Cape of Good Hope will still be cause price increases.

The harsh truth is that our foreign policy is driven by pragmatism, not idealism. I’m not complaining; it’s simply a fact. When Vice-President Joe Biden stated that Mubarak is “not a dictator” he was merely hewing to the standard Washington line.

It is apparent that Mubarak's time has come and that a new Egyptian government is needed. We also cannot afford to throw up our hands and hope for the best. It's time to let the protesters know that we will support them in their goal of having a Western-style democracy. We do not need another Iran. We need to be pro-active and support our own principles.

In an interview, former British Prime Minister Tony Blair made the point that protestors have two separate objectives. First is the toppling of Mubarak’s government. This is a goal shared by a wide range of groups from Coptic Christians, who make up approximately 20% of Egypt’s population, to the radical fringe group Muslim Brotherhood (MB) who have been outlawed in Egypt for decades.

The second objective is the formation of a new government. This is where the factions will differ greatly and the shape of the new government will vary depending on who calls the shots. Egyptian Nobel Peace Prize winner Mohamed ElBaradei has asked for Mubarak to step aside, and he is seen as a possible catalyst in the construction of a far less oppressive, pro-western government. ElBaradei would likely receive the support of the Coptics whose patriarch encouraged their active participation in the demonstrations. If ElBaradei’s name sounds familiar; it should. He was the former Director General of the International Atomic Energy Agency (IAEA) when the US was searching for weapons of mass destruction in Iraq.

The Muslim Brotherhood did not begin the protests, but is seeking to take advantage of the situation. It has been an organization since 1928 and its members and former members played major roles in the founding of Islamo-Fascist groups from Hamas to al Qaeda to, as mentioned earlier, Islamic Jihad. MB membership levels are unknown, but they have two huge advantages over any of the pro-western leaders. They are organized; and they are violent.

There are additional factors to consider. The Egyptian military is very Americanized. They have shown restraint in dealing with protestors and will likely be a major player in deciding the shape of the new government.

The leaders of the protests are mostly Egyptian men under the age of 30, a group hard hit by unemployment. The age of the protestors is no surprise because two-thirds of Egypt’s population is under the age of 30. Demographically Egypt is the youngest and, at 80 million, most populous Arab nation. Youth is wonderful but a lack of life experience can be fatal. If this government is changed, these young people must also "win" the government from stiff, radical competition.

This youthful nation is different than one might expect. Just this year, Egyptian Muslims formed a human barrier around Coptic churches to protect Christian worshippers from further violence after the bombing of a Coptic service days earlier by radical jihadists.

Muslim Brotherhood members have gone on Iranian television, blamed Israel for Mubarak’s continued leadership and taunted the Egyptian army and police. The MB is already calling for Egypt to turn its armies toward Israel. Could the MB actually turn Egypt into another Iran?

Fringe element or not, don’t be dismissive of the idea. There is a history of new pro-western governments submitting to well-organized, violent zealots. Do you know these names? Manuel Urrutia Lleó? Alexander Fyodorovich Kerensky? Imre Nagy? They might have been the George Washingtons of their respective countries. Instead, after winning the revolution, their governments were all subverted by well-organized, violent, anti-western forces.

The US needs to support the Egyptian people or risk losing another country to violence and oppression. It is a time to be respectful of Egypt's situation but openly available to provide help as needed in the formation of a new government. A new Egypt can remain an ally while becoming still more stable and a peaceful influence in a region that needs peace and stability.

More on Manuel Urrutia Lleó and his role in Cuba in a following blog.

The Economy Strikes Back

When it comes to running the country, left wing politicos have more morally corrupt ideas than an imaginative college freshman stranded on a desert island with nothing but Angelina Jolie, Katy Perry and an industrial-size barrel of Wesson Oil. There are two differences though. First, the three castaways won’t spend your retirement funds and your kids’ college tuition money while telling you to “go along or go to jail.” Second, the college freshman won’t spend his spare time trying to run an economy he doesn’t understand while taking some citizens’ money and giving it to other citizens.

I’m not the first to say it, but Congress has a spending problem. I’ve seen cats in a field of catnip who display more self-control. It’s time to free the economy: reduce regulations, reduce spending and get out of the way.

The ugly truth is that no matter how ridiculous or specialized a Congressional spending item is, there is someone who will scream bloody murder if that item is cut from the budget. Understand that someone was influential enough to get that silly item put in the budget to begin with, so chances are someone in Congress will listen when the wailing begins. There is no such thing as a painless reduction in federal spending and that’s what Congress is hoping for. Guess what, Washington? The Great Pumpkin ain’t comin’ this year, either.

To reduce the federal budget is going to be painful, but it must be done. Freezing our spending levels, as President Obama suggested, will not work and neither will timid reductions of spending. Put down the paring knife and pick up the cleaver.

The argument is going to be that it took years to raise federal spending to this level so it will take years to reduce it. That is wrong and a non-starter. The more quickly we reduce spending, the less painful the overall result will be.

It’s not a matter of trimming programs. It’s a matter of cutting entire programs. Programs which are outside the scope of the federal budget need to be completely scrapped. Hello and goodbye to the Department of Energy and the Department of Education, a whole bunch of subsidies and regulatory restrictions that benefit some special interest groups at the expense of taxpayers. And that is the beginning of the beginning.

One thing that can be done that will have an effect within 18 months: “Drill here, Drill now, Pay less.” Directional drilling from existing oil platforms can be used and we can see a domestic oil production increase that soon. In the meantime, drop ethanol subsidies.

Subsidies for ethanol can be immediately scrapped and I’m sure Archer-Daniels-Midland will recover nicely. Less expensive cereals, milk and beef will be the result of canning that failed experiment and American families can use that reduction in food prices. Corn was never, ever the best source of ethanol, but even if we used better sources, such as sugar cane, the government would still have to subsidize ethanol and that’s an expense we can drop. As Thomas Jefferson said, “If we were directed from Washington when to sow and when to reap, we should all want bread.”

This is no time for sacred cows. Fire up the grill and let the slaughter begin – with absolutely no apologies to the PC Police. It’s time to be honest. This is a real crisis. Not the namby-pamby “crises” that liberals evoke every few years. The economy is now our enemy. We abused it in such dire fashion, that I can’t blame it. Debt is about to lay waste to our country and the federal government has been encouraging it to do so for over 70 years.

There are many other federal programs and subsidies that can be terminated immediately. While Congress is at it, they should also look at regulations which are unnecessary and negatively impact businesses. I wonder if the country is ready for “Free the Economy” bumper stickers. I think it’s about time.

Brief Reviews of the SOTU, Oil Prices, Latest CBO Report and More

Here are a few thoughts on some interesting topics that might not make an entire blog, but are of interest. Think of it as a tour of some issues.

While libertarian and master science fiction author Robert Heinlein’s statement, “There is no worse tyranny than to force a man to pay for what he does not want merely because you think it would be good for him,” was made years ago, I have yet to see a better description of President Obama’s health care legislation. The Nanny State attempts to justify its existence by telling perfectly competent citizens what to do, but cannot hide its own addiction to money.

Many pundits are complaining about a lack of specifics in President Obama’s speech, but state of the union addresses are not for specifics. Note that the speech lasted over 70 minutes while the President gilded generalities. For him to make the specifics of our horrific economy sound better than the reality would have taken days, a swarm of government lawyers, a thesaurus, an unabridged dictionary, a willing suspension of disbelief and a pocketful of hallucinogenics. Be glad he stuck to generalities. Life is too short for boring fictions.

The latest Congressional Budget Office’s report on the deficit came out this morning and projects a 2011 deficit of $1.5 trillion. This is 50% higher than the original projection of $1 trillion. As expected, the extension of the Bush tax cuts is being blamed rather than reckless spending.

The timing of the release of the CBO report is interesting. If the report had been available yesterday the President might have been forced to pay more attention to the federal deficit – especially the part where he advocated keeping our current spending levels for the next five years.

During the SOTU, President Obama specifically mentioned those tax cuts in relation to the deficit, “And if we truly care about our deficit, we simply cannot afford a permanent extension of the tax cuts for the wealthiest 2% of Americans.” It seems like the President, but not the media, had access to that report before his speech. Did the CBO temporarily withhold their report at the Administration’s request? Hmmmmm.

Obama did call for a simplification of our tax codes, but nothing specific. Here is my suggestion for a reasonable goal: Americans with average intelligence and high-school diplomas should be able to complete their own tax returns without assistance and be certain they paid the least taxes legally possible. This is a goal that is attainable several ways, including a switch from an income to a consumption tax.

We are in the worst economy since the FDR Administration. The mainstream media has covered nearly every aspect of this except for one thing: Where is the nearly endless coverage of the homeless we had during the Reagan and Bush administrations? There is 9.4% unemployment, there is a major housing crisis and the only homeless person we hear about is former radio announcer Ted Williams because he has “a golden voice”.

Are we to believe that there are fewer homeless people than under Republican administrations? The media would have you believe so because of their lack of coverage. Just remember that the easiest way to alter the public’s perception are the decisions on what stories are covered. Some might call it self-censorship. I do.

Three dollar a gallon gasoline looks bad now, but I predict that in six months it will look good. Growing political unrest in the Middle East like that in Tunisia, Sudan, Egypt and Yemen; the continued blockage of oil production in the US; and, the failure to pursue currently available fuel alternatives all will contribute to the increasing petroleum prices. Oil speculators will take advantage of this opportunity to reap profits and push prices even higher.

The possibility that the Federal Reserve System might bail out deadbeat states needs to be halted. We already know the Fed lends money to prop up foreign banks while our own economy is in trouble. It’s past time to audit the Fed and I’m still waiting for someone to tell me why that’s a bad idea.

Finally, do you remember when Democrats accused Republicans of favoring Wall Street over Main Street? The Dow hit 12,000 today. Democrats will likely claim credit and use Wall Street as a proxy for the economy to claim we are better off. Personally, I believe the stock market surge that began in August was because of the apparent, then-upcoming, GOP majority in at least one house of Congress. Let’s hope the market is right and the GOP can slow or halt government expansion.

The SOTU on Truth Serum

My fellow Americans, tonight I’m going to be straight forward and rather than hold a political rally or berate the judicial branch of government, I’m going to stick to the state of our union.

Let me begin by discussing our foreign relations. We’re involved in two wars in which we are not fighting other countries, but are fighting against religious zealots who wish to destroy our nation, our culture and our right to religious freedom. They cannot defeat us on the field of battle and have chosen to sacrifice innocents through the practice of terrorism.

Their way of winning is to control our actions through fear. With that in mind, I am asking that we develop less intrusives means of screening potential terrorists at our airports and increase interdiction at our borders.

In the past, I gave deadlines for our withdrawal and had to retract those promises because reality is a harsh mistress. The war in Iraq and the war in Afghanistan are different. In Iraq, the people have shown a real interest in freedom. Many Iraqi policemen have been killed by suicide bombers, car bombs and IEDs. Still, they continue to sign up to be policemen and serve their country. For this reason, we will continue our commitment to the people of Iraq, but they need to understand that we cannot remain in Iraq over a long period of time. Americans will leave Iraq when we believe it can remain stable on its own.

I know many of you want us to withdraw from Iraq immediately, but we cannot afford to snatch defeat from the jaws of victory. To leave now would jeopardize all we have accomplished and leave a free Iraq at the mercy of internal terrorists and oppressive theocracies such as its neighbor Iran.

In Afghanistan, President Hamid Karzai has shown himself to be an opportunist and a coward, unable to commit to the freedom of his people. Karzai has continued his relationship with members of the Taliban, narco-terrorists and drug warlords, such as his own brother. A free country cannot be built on the foundation of such a corrupt state. We will not begin withdrawal of troops from Afghanistan at this time; however, because we need to invade northwest Pakistan where we are fairly certain that Osama bin Ladin is hiding like the coward he is.

While we do not wish to destabilize our ally Pakistan, we also know that the continued presence of bin Ladin will definitely cause the collapse of that government. We are asking the Pakistani government to clear all of its troops from that region until such time as we are convinced that bin Ladin is dead, captured and in our hands, or located in another country. In addition, we ask that civilians offer no resistance if they do not wish to be harmed. We have been patient long enough and we will bring all available resources to bear so that this criminal will be brought to justice.

In the area of trade, free trade only works if it is free on both sides. Our trade agreements with China now hinge upon the opening of China’s markets and proof that they are cracking down on the multi-billion dollar piracy of American trademarks and copyrights, especially intellectual properties such as software, music, movies and patents. This must end or we will close down our markets completely to goods of Chinese manufacture. Currently we have a $200 billion trade deficit to China. They need us more than we need them.

On the domestic side, we are in trouble.

We are approaching our debt limit of $14.3 trillion dollars. Over the past decade we have spent a tremendous amount of money in an attempt to make the country prosperous. That idea, which I was convinced was a good one, has failed. We must allow the private sector to grow. In order to do that, I am proposing three things.

First, I want to meet with a committee of committed deficit hawks from both sides of the aisle. We will consider all things, with the exception of the commitments we have made retirees and those within 10 years of retirement. We will look at all government subsidies and sweetheart deals. As a sign of commitment from our party, I will ask for the repeal of the Davis-Bacon Act, and related laws, which cause our government to spend far more money than necessary to appeal to our union friends.

Second, I will form a group similar to the Grace Commission to examine regulations and see which ones can be either revamped or repealed to make it easier to do business in this country. We have handcuffed business and asked it to carry far too large of a burden in unnecessary regulations.

To show my sincerity, as of now I am withdrawing my Executive Order restricting the drilling of oil in the Gulf of Mexico. In addition, I am asking Congress to withdraw some of the more onerous, previous restrictions on all offshore drilling. I will also ask Congress to come to a compromise about Anwar. We will separate the areas of interests to tourists and reasonable environmental concerns, while allowing small footprint drilling for oil.

Also, concerning energy, I am asking the energy companies to construct three additional oil refineries. We will waive any unnecessary regulations while maintaining necessary controls to protect the environment. In exchange, I ask the oil companies to construct at least two of the three away from areas likely to be impacted by hurricanes.

I will also ask the auto manufacturers to lend us a hand. The American people were generous with their assistance and now we need help. I ask that 50% of all internal combustion engines made in the US, be altered to accept concentrated natural gas as fuel. This will result in lower uses of petroleum and we have natural gas in abundance.

Finally, regarding energy, I will ask Congress to consider a law rewarding retail manufacturers for installing energy stations for electric automobiles in their parking lots. The technology is available to allow consumers to swipe a credit card so that their vehicle can be charging as the customer shops. Enough of these retail outlets across the nation will increase the viability of electric cars and decrease our dependence on foreign oil.

Third, this is a much longer term solution, but I will ask for another committee to review our income tax situation. For individuals, sole ownership businesses, partnerships and S-Corporations any person of average intelligence with a high-school diploma and a decent command of the English language should be able to complete a tax form and have 100% certainty that they have accurately completed their forms and paid the proper amount.

In exchange for this, I ask the following from conservatives. All farm subsidies to C-Corporations should be ended as of the end of this fiscal year. Credit Card companies will not be limited in the interest rates they charge, but they cannot change the interest rates on money previously lent to consumers, so that prior balances remain at the same rate of interest. Penalties for late fees can be increased to help compensate for this loss of income.

I also ask for a bill to subsidize medical schools’ expansion and interest free loans to students in medical schools. In return, while I do not favor making malpractice lawsuits go away or capping damages, I do favor limiting them to situations where real malpractice or negligence can be shown. This should help lower doctors’ insurance rates while simultaneously allowing the protection of patients.

Finally, I ask for a real review of our health care system. Republicans and Democrats agree that the current system is broken, but disagree on the solutions. Let’s find the common ground and enact those laws so that improvements can be made.

Thank you and may God continue to bless the United States of America.