The Arrogance of the Germans

Yes, it is true that Greece is suffering some economic woes recently. And yes, it is also true that a lot of what is going on can be attributed to reasons both internal and external. It will take a very long post to discuss everything that has been going on with Greece's Debt Crisis. All you have to do is perform a Google search and then read a bit on it. Unfortunately, you won't have the advantage of being able to "Read" the Greek Language, and therefore, read the Greek Perspective on these news.

Still, despite that handicap, and despite some of the misinformation that exists out there among the general public, information exists for people to have a general understanding of this issue; (As an aside, isn't that the general rule? - as people, get less and less inclined to do their own research and learn everything there is to know about an issue, they become trusting of dubious sources, who are very likely to misinform, sometimes due to ignorance, but most of the time due to a willful decision to promote an agenda).

So among the debate as to what Greece must do to overcome this crisis, comes an article in the German Language magazine "Bild" quoting several German MPs , that Greece must sell part of the country in order to pay off it's debt. They propose not only selling the Acropolis, but also selling some of the uninhabited Greek Islands. This logic, comes from the same minds, and the same people who provided the world with the Nazi Party and the world's greatest mass murdered - Hitler. Is it any wonder that Greeks all over the World are up in arms over this suggestion?


The truth is that there is a certain arrogance that superpowers, whether economic or otherwise, have always displayed when dealing with small countries such as Greece. The truth is that this arrogance is one of the reasons Greece "lost" Asia Minor to the Turks in 1922, and over 2 million Greeks were displaced and thousands were killed.   The truth is that this arrogance is what led to the partition of the island of Cyprus in 1974, when Turkish imperialist designs went unchecked by the USA and thousands of Cypriots were displaced. We see this in play today in Darfur, we saw it in play in Rwanda, and in the ongoing wars of Iraq and Afghanistan. Superpowers can come-up with any kind of excuses they want when they want to justify the means by which their foreign political goals are achieved. And don't for one minute think that this doesn't have something to do with Economics and Geo-Politics.


It remains the big secret that "Oil" in some quantities has been discovered under the Aegean Sea. As the Geo-Political situation now stands, the Aegean Sea is Greek Territorial waters. Once in the recent past (1986 to be precise), Greece and Turkey almost went to war, when Turkey decided they wanted to send an oil exploratory vessel out into the Aegean Sea. That attempt was thwarted, as was a later attempt to take over the Islands of Imia by Turkey. What these continuing efforts by Turkey show is an attempt to undermine Greek Sovereignty in the Aegean Sea, to question the Status Quo, and to "open the gates", at least in the international public's mind, that Turkey has a rightful claim both on portions of islands and territories in the Aegean Sea and by extension, the resources present underneath.


I am also reminded that the members of the German Parliament and Chancellor Merkel's government who made the comments they did, are "right wing" and of a background with dubious ties to other right wing agitators and parties in Germany.  Let us also not forget two other important facts. Germany has a very high Turkish immigrant population that is very active in the national politics there and in supporting Turkish positions within Germany and in the European Union (EU) in general. And though this link is strenuous at best, and not much can be inferred from a mere glance, I offer it because it does make you think: During the Nazi party's ascendancy and dominance in the early 20th century, they had a friend in Turkey, even though they supposedly maintained a neutral stance until February 1945, when they finally declared war on Germany.



So, would it be a stretch to ask, that with the availability of resources in the Aegean Sea, and with Germany having a friend in Turkey, that what these German politicians are really promoting is the idea of Turkish imperialism under the guise of Greece selling its assets on the open market? This as a way to get at resources, resources that big Nations such Germany, an economic superpower need to continue functioning in the world economy.  It makes one think, doesn't it?




Finally, for another perspective on the Greek Debt Crisis, watch this short informational YouTube video:

The Greek Debt Crisis Video

Economic Inequality - Some truths about Health Care Reform

I recently posted this message as a response to a Blog Post by Roger Ebert of the Chicago Sun Times.

What?

You don't read Roger Ebert Movie Reviews? Furthermore, you don't read his fantastic blog? I highly recommend it. My response was tailored to a specific individual, yet I think it's appropriate to share it with everyone. Feel free to comment on it as you want.

I did make one mistake below. I transposed Toyota and Nissan in the Family Care Segment Sales. Toyota is #1 and Nissan is #4, behind Ford.

Having worked in Manufacturing as well (I feel I had to answer), I can tell you why it's cheaper for Toyota or Nissan or others to manufacture their cars oversees and then import them. Legacy costs, as you briefly mentioned in your piece. These are the things that GM and FORD and Chrysler pay for when a worker retires. But, as union costs have escalated, some of the current worker's costs have also been rolled into this accounting process. So, a $22,000 car becomes a $28,000 car, and the Japanese beat it on price.

But, it is not true that all cars are manufactured oversees. Nissan, Honda and Toyota, respectively, number #1, #2 and #4 in the mid-size car segment (family car) all manufacture that car in the USA. So, how can they do so competitively and still pay the American worker their Health Insurance AND a competitive wage.  It's not just the lack of a union.

The answer to the question posed by the first paragraph can be found in the social fabric of the countries were these cars are manufactured - Japan, Korea, etc. They have a social contract with their citizens, and although the companies profit in the great materialistic way that big Capitalist companies tend to profit in, the employees have health insurance that is supported by the National State. They also have some sort of National Pension system that works in conjunction with the company's pension system (sort of like Social Security on steroids). It works so well for them, that the living wage can be a lot more competitive that what an American worker makes. I don't begrudge the American Worker anything. Either alone or through unions, the American worker managed to raise himself to the middle-class and achieve a status that even in the middle of the 19th century it was unheard of. Yet, that drive and that competitiveness did not translate in the boardroom where the CEO and the share-holders, only cared for profits and more money.

Someone stated in a post earlier that companies are leaving certain areas because of higher taxes. That is Government's fault. That is the burden that Partisanship in Washington has placed on all of us. As I have said, CEOs care little for the productive middle class who helped them achieve their results... I am not making an all encompassing statement, not all CEOs are the same, and yes, I think you should earn what you deserve. But how much is too much? Why do you need $20Mil to run a company? I bet I can do the same job for $500,000 and no bonus.

And to answer the question posed by the second paragraph, unions have not ruined America, I don't think that at all. Yet, somehow, in factories that foreign manufacturers have opened in the US whether unionized or not, they managed to build the same or better product than their equivalent American counterparts. Why is that? These are American workers at both places. It must be the underlying economic factors, both at the companies running the places AND in the society. (And please, don't give me any bull-crap about "Government Motors" and all that -- that just happened and does not apply in this situation).

Yes, we don't manufacture anything in this country, but whose fault is that? Each and everyone of us needs to look in the mirror before answering this question, even more so if you're a CEO or a share-holder. I don't advocate the buy-American line, but think about a culture that places such a high-value on the low prices one can find at the "low-price leader" Wal-Mart. How is Wal-Mart to compete AND make a profit for their CEO, board and share-holders without manufacturing everything oversees? Where there is no regulation, or GASP, they don't have to pay the workers "HEALTH INSURANCE PREMIUMS" or "401K (pensions)" and other benefits.

So what can the great equalizer, the Government, do for us? Lots of times I've pondered why they don't slap tariffs, on imported goods, from countries who willing game the system and flood the US market with cheap goods. And then there are times, such as last year when President Obama, did slap a tariff on unsafe Chinese Commercial Truck Tires. But the only way to expose trade imbalances and other such problems is to expose the inadequacies of our own system compared to what the other countries offer.

There are many points, and I won't go over them all, but in summary:

1. A fair and uniform corporate tax code.
2. A fair and uniform pension system (including a reform of Social Security).
3. A robust unemployment system that promotes retraining and values self-reliance.
4. A national retraining program as industries and technologies shift.
5. A National Health Care System - Heck, model it after Japan's for all I care. It can be as simple as what it's intended to be: If you have health insurance now, GREAT! Go your merry way, we're leaving you alone, don't even look here. If you lose your health insurance, because of a job change or unemployment, you pick-up a plan subsidized by the government until you get back on your feet.

Now, if we had these things, then you'd see how quickly we'd be able to compete with those foreigners, whether they be Japanese, German or Chinese.

Do I think any of this will happen, including health care reform? I doubt it. People are so misinformed and refuse to get themselves educated enough, by whatever means necessary to impact their own lives, let alone the world around them. How can we expect them to have intelligent opinions about such an important subject. No, it has to be "black" or "white". But it isn't. Sadly, not very much in life is...

China baffles world with mystery bomber

Don't think for a minute that we're not in another 'Cold War' this time with China.

Am I afraid of China? Yes, yes, I am.

Do I hate China? No. They are an old, old civilization. What they have accomplished in the last 4,000 years has not been matched by very many cultures.

But keep these facts in mind before you read this article: 'China baffles world with mystery bomber'

1) Most of the companies I used to work for, have been sold to Chinese companies, with the attendant manufacturing transferred to China. Does that mean, they stole my job? Am I mad at the Chinese worker? No, but I am mad at the "Wealth" and "Power" hungry American CEO who sold out.

2) Most of the stuff you buy at Wal-Mart is made in China a lot cheaper that it can be made in the United States or anywhere else for that matter. People flock to Wal-Mart for these discounted prices. Hell! I am one of them, BECAUSE, I can't afford higher prices. BUT, is that a good thing for America (US)? If we build NOTHING, and we only consume the world's resources, don't we become dependant on the World at Large.

3) 'Marketplace' from American Public Media, did a whole two week series from China a couple of years back, touting all the economic improvements and jumps forward of the Chinese miracle. Yeah, Chinese miracle performed on American middle class dollars. And once the miracle is finished, and the dollar is worthless, What will China do?

4) China still has the world's largest population, even if Indian IS catching up. And what does a country like that need? RESOURCES! What has the competition for resources caused in the past? Wars!!! In a way of course, I am oversimplifying. There a lot more complicated factors involved. The optimist in the American side likes to propose that there is a rise of a middle-class in China, and the Middle-Class has always been the instigator of transformations in countries, either through revolutions or other means. But the pessimist sees over 800,000,000 working Chinese that have to have resources and food... AND THAT has to come from somewhere.

5) Throughout this 'Chinese miracle' one thing has remained a constant: China's inappropriately bad human rights record, it's abuses in Tibet (do I really need to provide you with a link to what is happening there today?) and it's political system. It's all connected. China's political system, is old style, Stalinist communist. My grandfather and my uncles fought against it. My aunt and my cousin were in communist prisons. Years of an ingrained system do not fade from power overnight. The new money of the 'Chinese Miracle' and the new technologies being procured legally and illegally are being funnelled straight into China's defense programs.

So, how long before China overcomes the USA in terms of technological superiority in the battlefield? Remember, America is no longer the World's # 1 economic power, and doesn't have the world's strongest currency. That currency is called the Euro. And the technological advantage that America enjoys comes from employing engineers who want to work in the defense industry or associated industries. But when those industries or jobs end-up going to China, where will these people work? How will the US maintain it's technology advantage?

One last point. The US is rapidly becoming a service oriented economy. Can such an economy generate enough research and development funds to keep us ahead of the Chinese? Even if we had enough available, trained engineers?

So, read the article, and ponder this:

We are in a Cold War with China. One we are rapidly losing. How long before they get ahead of us?

2010?
2020?
2030?

You make the call.....