Tuesday, February 15, 2011

Educational Excellence, USA Style

I just got back from a trip with my son visiting a college in St. Louis. There are some fallacies that are embedded in our psyche that should be dispelled. The notion that the educational system in this country is bad and that somehow it is inferior to those of other countries are ridiculous. We produce students through our system that can outcompete any other country. One can argue that on the average in the US kids perform poorly when compared to other nations. However if you look at the top tier of students, I believe, we prepare kids through our system with the skills and preparedness that exceeds any other on the planet. The combination of educational rigor with the desire for extracurricular pursuits and the stress of giving back to the community produce very well rounded individuals. They are prepared for a life of balance between work and play as well as between the attainment of wealth and charity.

The competition of getting into a top college is daunting. So many kids have excellent grades, SAT scores and varied extracurriculars. There are tens of thousands of kids who excel each year and are the future of our country. There is no doubt in my mind that this country will continue to be a world leader as long as we produce these young adults with the passion to excel in all pursuits. I would put up our top 5-10% of students any day against any other country's. It is not just the test scores though, that exemplify our top children but a intangible element that kids get by growing up in this country. The sense that anybody from any background can go as far as their talents will take them instills our students with passion and hope.

The other factor that drives our kids is competition. The competitive spirit that our kids feel in order to succeed is at the same time stressful but also drives them to overachieve. They feel pressure to score better on SAT, to take the most rigorous curricula and to expand their extracurricular activities to enhance their resumes. Competition breeds excellence and the undergraduate and graduate systems of admissions foster and promote this competition. The best rise to the top and the bar at the top continues to rise.

The future of the US is promising as our brightest children will certainly be world class business leaders, scientists, etc. Worldwide innovation will continue to be a primarily American phenomenon as it has been over our history. We are the engine of discovery for the world and the great advances that are certain to occur will be created in the US. We have nothing to worry about regarding China. They will take existing technology and produce it cheaper but the US is the epicenter of innovation in all fields. It is the way we educate and raise our kids versus their system of education and government. It is the way we reward that innovation that propels discovery and creation.

As I toured the campus listening to various students and as I watch my son competing against such outstanding candidates I kept returning to the same thought. I am so happy I don't have to go through the process now. It is so much more difficult now then when I was in school. I question whether I would be able to reach the same level now as before.

The beauty of our system is that at every level you can rise to the top regardless of your previous performance. There is always a chance to reinvent yourself to maximize your skill set. The only one who puts limits on your achievement is you. As is the case in so many other countries you are not pigeon holed into a specific life path depending on your genealogy, wealth, or score on a single test. I know my son will develop his skill set regardless of the school he goes to. I hope he has the fortitude to compete and excel, to accept failures as opportunities to learn and try again, and to live a life of balance.

Tuesday, February 8, 2011

Am I Racist?

The other day I was in the operating room and was opining about the unrest in Egypt. I was criticizing BO because when the world's arch enemy Achmadinejad experienced an uprising by his people, the US government was nowhere to be found. Yet, when our ally, Mubarak, was presented with the identical dilemma BO was the first to demand his stepping down. Another example of treating the enemy favorably while treating friends harshly. I commented that BO either had an agenda that would explain these reactions or he was completely incompetent.

The problem was there was a black scrub nurse present at the time and afterward I felt uneasy having criticized the president while he was in the room. Was I being racially insensitive by criticizing our president with a black man in the room? Should I have considered his feelings before going off on BO? Why should I feel discomfort discussing my president in a room with a black man? I should say, he never said anything, smirked, or gave any indication that he disapproved. He performed his job professionally, as usual, without any indication of disagreement. Yes, this was all in my head but why did I feel this discomfort?

I tried to do a little role reversal and imagined what if the president was a Jewish man. If everybody in the room was black and I was the only Jewish guy would I feel bias if the doctor started going after this Jewish president's policies? I think the answer is that I would and thus I feel badly for having put this man through that situation. But it is an emotional response, since logic would dictate that anyone should have the freedom to comment on presidential policy regardless of their race or the race of others in the room.

In any case I think black people support BO for the same reason that Jewish people would support a Jewish president. Both situations are intellectually shortsighted but emotionally understandable. I would like to think that I would not support a Jewish candidate who had opposing views to my own but I have not been presented with that option. But the fact some people support candidates solely for their religion or color is racist and discriminatory even though it is a positive action. It is a candidates opinions and stance on policy that should guide voters.

So I criticized a black president in front of a black individual while i suspect he supports BO solely for the color of his skin. Who is the real racist?

Tuesday, February 1, 2011

Ski Trip

I was away last week skiing and I thought I would be able to upload the blog but I couldn't so I skipped the week. Anyway, I have to report that I had a wonderful time skiing with my son. I haven't skied in 3 years and forgot how much fun it is and how exhilarating it is to ski down the slopes. It is a great family vacation and hopefully will do a yearly ski vacation. The last few years we did sun vacations and they were fun but I think skiing beats the sun. Definitely much healthier as long as one doesn't get injured. My son was in ski school all day and I skied alone but I met several people and of course this fed ideas for the blog.

I met three people in particular that demonstrate a point. I took a lesson the first day and the instructor was a fifty something year old man who told me he teaches skiing in the winters and goes sailing in the summers. I asked him how he manages to support himself and he told me he retired from a job and now is able to ski and sail. I jokingly responded that he must have worked for the government to get such a great package to which he said he taught seventh grade for 20 years.

The next guy I met on a chair lift going up the mountain and usually a conversation is started out of courtesy. It was about noon and he told me he had to leave after the next run. I asked him why he was leaving on such a beautiful day and he responded that he had to go back to work. He told me he was a school bus driver and after dropping the kids off at school in the morning comes out to ski for a few hours and then returns to work to bring the kids home.

The last woman I also met on the lift. She is a school teacher who was off that day because school was canceled due to a snow day. So the school could not be opened due to snow but she was able to drive to the slopes, no problem.

So I think the point has been made. Public employees, those that work for the taxpayer, have better retirement packages, better work hours, and easier work demands than those of us that pay their salaries. It is an insane upside down world that this has been allowed to develop. I don't blame these fellow skiers but the irresponsible criminal politicians that let the unions dictate unsustainable benefits. Fortunately, the tide is turning and these ridiculous contracts are going to be renegotiated.


P.S. Just wanted to comment on the Egyptian uprising. I just blogged a couple of weeks ago about the results of overpopulation. This perfectly demonstrates what happens when resources are limited and population explodes. Egypt has a very high birth rate and a limited water source as well limited wealth. Many people live in poverty and there are not enough jobs for all people. The young people are rising up because food prices have risen and future prospects are dim. This will continue and spread wherever population growth outpaces available resources. Popular uprisings, violence, extremism, and desperate measures will surely increase.

Tuesday, January 18, 2011

Judenrein in the Middle East

There were two contrasting news reports in the last couple of weeks that perfectly clarify the Arab-Israeli conflict. The first was a comment by Pal president Mahmoud Abas on 12/24 when he said that in a future Pal state there would not be any Israeli presence. This includes any IDF presence but more importantly any presence of Jewish settlers. Thus Jews are not allowed to live in a Pal state, in effect he wants it to be Judenrein.

The second news story was a poll conducted amongst 1000 East Jerusalem Arabs who live within Israel to determine what they would do if a Pal state was created. Of the 1000 polled 54% said if their neighborhood remained in Israel's hands they would not move to the Pal state and would prefer to stay in Israel. If their neighborhood became part of the Pal state 40% said they would try to move into Israel and only 37% said they would want to stay in Pal state.

Arabs living under the Israeli government have some of the highest living standards of any Arabs in the entire Middle East. They enjoy voting rights, participation in government, superior health care, better job availability and educational opportunities for their children. Granted it is not perfect and there is disparity between Jews and Arabs but the truth is in the poll data as the Pals know that they are better off under an Israeli flag than an Arab one. This demonstrates the Israelis firm belief in religious tolerance and human rights.

On the other hand, why can't Jews live under a Pal government? If Jews want to live in Hebron, the site where the Patriarchs and Matriarchs were buried, they should be able to despite the presence of an Arab government. I do not think most Jews would choose to be residents of Arab controlled lands seeing how the citizens of such countries are treated by their governments. But the absolute requirement of Abas to devoid their land of Jews says a lot about their religious intolerance, lack of compassion, and disbelief in human rights.

So the logical conclusion of these two news stories is a situation where Arabs can only tolerate living amongst themselves to the exclusion of any non-Arabs (really non-Muslims as they persecute christian Arabs) while in Israel the Jews treat all their citizens fairly regardless of race or religion. I can understand why the Arabs are so intolerant since they are educated from birth to hate Jews, Christians, Hindus, etc. They even hate other Muslims of a different sect. But why can't other countries (eg. European nations) of the world see this disparity? Why do they continuously portray Israel as the evil oppressor while the pals are the persecuted ones? The evidence to the contrary is so clear and blatantly obvious. The only answer that can make any sense of this irrational, blinded, nonsensical viewpoint is the ubiquitous hatred of the Jew.

While everyone is falling over themselves trying to grant the pals their own judenrein state in order to achieve peace the truth is the average pal would rather live in Israel.

Wednesday, January 12, 2011

The First Global Bubble

Previous bubbles of assets or financial instruments have tended to be restricted to specific countries. Starting with the famous tulip bubble in Holland and more recently with the real estate bubble in the USA these anomolies were localized. The Nasdaq bubble in the nineties affected predominantly investors in the US market. There were many more asset bubbles not as well known as these but I believe we are about to enter a new situation where demand for commodities will be a global phenomenon and eventually lead to a global bubble.

Essentially, no one will have any trust in paper money. The dollar which is the "reserve currency" will continue to suffer as the treasury can print them to pay off debts and obligations. Eventually, this has to lead to a lessening of value for the dollar. This will lead to a forced situation of returning to a gold standard. It will not be a choice of the government but people will demand payment for goods and services only if that payment is backed up by something tangible.

There is an ongoing devaluation of the dollar and the problem is if you look to another currency to park money they are all trying to devalue their currencies. This is done to maintain exports and domestic businesses. It boils down to which currency is the least bad. The only place to maintain value is in commodities and more individuals and countries will seek commodities to maintain asset value.

China and other buyers of US treasuries will not accept a declining dollar and will cease to purchase our bonds. This will require the interest rate on the treasuries to skyrocket in order to find buyers to accept US debt instruments. This will lead to further printing of money to pay these higher intersest rates causing further declines in dollar value and the viscious cycle continues. I suspect that China will only lend us money if it is backed by a gold standard. Meaning, that their return of principle and interest will be adjusted to reflect any loss due to dollar devaluation (which is essentially a gold standard).

Individuals and governments all over the world will want to park their money in commodities and the demand will be tremendous causing price increases. So the demand side of the equation will also lead to soaring prices. I would not be surprised if new currencies will be created that are backed by a gold standard.

These are fundamental economic trends leading to higher commodity prices but as is human nature they will become overvalued as prices exceed the fundamentals. The bubble will inflate worldwide. So in a nutshell US debt will decline in value on two fronts. The underlying dollar currency is declining in purchasing power and as intersest rates rise the bond's value will decline. So what am I doing? or beter yet what should I be doing?
1. Get out of any bond instruments.
2. Leverage as much as possible (maximize outstanding mortgages and DO NOT prepay). You will be able to pay the debt back with much cheaper dollars.
3. Convert any floating loans to fixed interest rates. Let the money you owe be fixed but let the money you lend (money markets) float.
4. Buy commodities, hard assets, real estate. Tangible stuff.
5. Buy stocks in miners. Better yet become a miner. Don't chase dividend producing stocks because the 2% or 3% from a stock will not look good next to much higher and safer money market rates.
6. Buy the inverse US treasury which rises as treasuries decline. See stock symbol TBT.

I have not done all these things and I am not an expert. Use your judgement.

Tuesday, January 4, 2011

The Problem

The problem that no one is talking about and that contributes to almost all the other problems in the world is the continued overpopulation of humans on the planet. No one will talk about it because there is no incentive for the individual to do anything about it and solving this problem is essentially insurmountable. Government cannot fix it by limiting the number of births and most religions encourage high birth rates to raise their numbers.

The strain on the natural resources becomes more and more evident with every passing year as more humans demand those limited resources. Every commodity from metals to cotton to grains have been rising to new highs due to the increased demand and limited supply for these items. Oil will continue to trend upwards as more emerging economies catch up with the developed world and crave that black liquid that powers everything. It is inevitable that clothing, food, jewelry, and gas will all rise due to increased global demand. Demand is outpacing supply.

Water is also a limited resource and the human population may find it difficult to provide enough water for everybody. Certain areas will be harder hit, specifically, areas of Africa and Asia may have to wage war to maintain supplies of water for their populations.

Increase in mankind is straining the environment as humans consume so much of the available resources. Deforestation and the resulting decreased animal populations will surely have long term repercussions. The strain on fish populations in our oceans and seas due to overfishing may be nonrecoverable.

More demand on resources promotes more belligerence amongst countries to control those resources and this trend will likely continue. There will be more wars to control these desirable resources.

The overpopulation of our cities, states, and countries cause situations where there are not enough employment options for everybody. Thus there are high levels of unemployment causing civil unrest and redistribution of wealth from workers to non-workers. Too many people and too few jobs will especially hit the young people hardest as they search for employment. Lack of a job/future will lead to greater discontent and uprising by the youth.

Overpopulation is the source of many of our problems but as with many of natures extremes there are self correcting influences. More demand for food and water with limited supplies will result in more famine and death from malnutrition and dehydration. More war with more devastating weapons in order to control resources will lead to more death. More overcrowding of our cities will lead to more virulent strains of microbes leading to more death from infectious disease. This is inevitable as humankind expands to levels that cannot be supported by the natural resources of the planet. Although the problem of overpopulation is not correctable from within, nature will inevitably use its laws to correct this anomaly.

Wednesday, December 29, 2010

2012: Who Will It Be For The GOP

Here we are at the beginning of 2012 which is the start of 2012 presidential campaign. I guess we know who the democratic nominee will be. I don't think anyone has a chance of competing with BO. Hillary doesn't have a chance since BO will get 98% of the black vote in any challenge and this is too much of a head start for Hillary to overcome. She does not want to be seen as the anti-black candidate and will have to wait for BO to leave office for her to give it another go. No one else could give a serious challenge.

The republicans though, provide an interesting picture. Palin is an automatic loser and a guarantee of four more years of BO. She is not presidential material and I really hope she knows it. She is great at rallying the people on the right and is terrific for the party. She will get out the vote, raise lots of money for republican candidates, and help in many state and local elections. She should be the cheerleader in chief for the republicans not try to be the commander in chief.

Romney is difficult because of Romney care. No matter how much he tries to separate Romey care from Obama care it is an impossible feat. Health care is one of the most important issues of the election and he will not be able to provide a vision that is significantly different from Obama care. This sinks his candidacy.

Newt is the smartest idea man of the republican party and if I had my choice I would want him as my president. But unfortunately I think he is unelectable. There is a certain staleness that I feel a politician gets after he has been around for a while. People lose their excitement after a while and I think he would suffer from that.

Huckabee, I have never been to thrilled about as a candidate. I don't think he generates much connection with the voter and I don't think he would create significant turnout.

So who is it going to be for the GOP? I think it is going to be someone who is not yet on the radar screen. The best person would be a governor over a senator or congressman. Governors are natural precursors to presidents as they run a state government with responsibility for budgets. Contrarily, congressmen fight over bills without the individual onus of the success of the country.

The nominee should be from a state which has shown that republican ideals have improved the financial outlook of the state. They should have been in office for a minimum of three to four years. They should have made inroads into cutting government size and intrusion as well as government spending. They should be seen as being able to stand up to unions and special interest for the benefit of the taxpayer. These policies are exactly what the American people want and having demonstrated they could implement them in there states, the electorate will want them implemented nationally.

I am sure such an individual exists but right now they have not taken to the stage. In the next few months we will see who enters the race.