Risk Rap

Rapping About a World at Risk

Prognostications and Expostulations

We’re going out on a limb with this one or given thats its winter we’ll say we’re walking on thin ice. We’ll gaze into the crystal ball and pontificate on eleven subject areas for 2010. With some we hope we will be wrong. With some we hope we will be right.

1. Stock Market: Buoyed by well managed earnings by the large multinational companies in the DOW, principally as a result of cost reduction initiatives and exposure to global markets the Index will finish up 6% and close at 11, 011 on the last trading day of 2010. Given an inflation rate of 4% investors will realize a 2% gain on equity investments in DOW constituents. S&P 500 and NASDAQ will be flat gaining 2% for the year.

2. Iraq War: The war in Iraq will continue to wind down. America will scale down its military presence in the country. Troop levels in the country will approximate 85,000 by the close of 2010. Though direct American military involvement in conflicts will decline, Iraq will experience civil unrest as Kurd nationalists, Shiite and Sunni Muslims seek to protect their political and economic interests.

3. Afghanistan War: The escalation of America’s military presence in Afghanistan will move the theater of war further into Pakistan. The Taliban will be satisfied to harass US forces by engaging in a guerrilla war. Taliban and Al-Qaeda supporters will use the opportunity to increase the level of urban terrorist attacks in the large cities of Pakistan. Al-Qaeda confederates will seek to reestablish base of support in Somalia, Yemen and ties will begin to emerge in Latin American narco-terror states.

4. Iran: The political situation in Iran will continue to deteriorate. This is a positive development for regional stability because it will force the ruling regime to cede its nuclear program development initiatives. Iran will not be able to capitalize on the US draw down in Iraq. It will become increasingly isolated as Hezbollah and Hamas pursue actions that are less confrontational to Israel in Palestine and Lebanon. The ruling Caliphate position will weaken due to internal political dissent and external economic pressures.

5. China: It will be a year of ultra-nationalism in China. Its stimulus program that is targeted to internal development will sustain a GDP growth rate of 8%. China will use this opportunity to strengthen the ideological support of its citizens to fall in line with the national development initiative. Globally China will continue to expand its interests in Africa and will cull deeper relationships with its Pacific Rim club member Latin America. China will continue to use US preoccupation with its wars in Afghanistan, Iraq and skirmishes in Yemen and Somalia as an opportunity to expand its global presence with a message of peace and cooperation.

5. US Mid Term Elections: Republicans will gain a number of seats in Congress. The continued soft economic conditions, state and local government fiscal crisis, war weariness and cut back in services and rising expenses will make this a bad year for incumbents and the party in power, namely the democrats. Sarah Palin will play a large role in supporting anti-government candidates drooling over the prospect of winning a seat in government.

6. Recession: Though the recession may be officially over, high unemployment, home foreclosures and spiking interest rates will hamper a robust recovery. The end of large government stimulus programs and the continued decrease in real estate values also present strong headwinds to recovery. We predict a GDP growth rate of 2% for the US economy. Outsourcing will abate and a move to reintroduce SME manufacturing will commence.

7. Technology: The new green technology will focus on the development of nuclear power plants.  The clash of the titan’s between Google’s Droid and Apple’s I Phone will dominate tech news during the year.  Lesser skirmishes  between Smart Phones makers or the war of the clones will continue to explode altering the home PC market and continue to change the market paradigm for old line firms like DELL, Microsoft and HP.   SaaS or cloud computing will gain on the back of lean business process initiatives and smart phone application development and processing infrastructure will encourage cottage industries fueling the cloud and making for some new millionaires. The tension between the creators of content and search and delivery will begin to tilt back toward the content providers. Litigation involving social networking sites will be filed to create safeguards against its use as a tool to control and manipulate behaviors thus threatening civil liberties and privacy rights.

8. Culture: The Googlization of civilization will allow individuals to embrace more corporatism as a pillar to add efficiency and order to their lives. Multiculturalism will continue to grow in the US. However a growing political backlash against it will become more of a prominent theme as Teabaggers agitate for a return to the true values of America. Electronic arts will make major leaps and bounds as commodification continues to be a driving force in the world of art. Printed words like books and newspapers will continue to dramatically decline. Writing, drawing and playing musical instruments skills will ebb as people prefer to develop digital skill sets. Texting and Tweeting make for poor practice for extended compositions.

9. Latin America: Instability will grow in Latin America as narcodollars continue to undermine political stability in Columbia, Venezuela, Mexico and Panama. The US will increasingly become involved in the conflicts between petro and narcodollars. Mexico’s stability will be increasingly undermined by the power and corruptible influence of the drug trade. China’s influence on the continent will grow.

10. European Union: The EU will continue to manage itself for stability. It will yearn to return to its aristocratic roots and will become increasingly conservative. It will continue to have a complex relationship with the expanding Muslim community. A call to deeper nationalism will arise out of a growing influence of Islam and the inefficiencies of EC bureaucrats in Belgium. The EU will continue its union of expediency to counterbalance their distrust of Russia and their distaste for America.

11. Environmental Justice: Though awareness continues to grow concerning the need to mount and implement large scale solutions to halt the problem of global climate change; the political will and resources required to drastically alter the planets current trajectory in growth of carbon emissions from the burning of fossil fuels remains unaltered. Social responsible enterprises, small businesses and individuals continue to make a difference. Eco friendly small businesses, urban farming, capital formation initiatives around renewable energy businesses are hopeful signs of a market response to the pressing problem. China is investing heavily in becoming a market leader out of business savvy and environmental necessity. Until the great powers of the world can come to some collective agreement on how to limit , cap or trade carbon credits we’ll have to be content to separate the trash and recycle, reuse and reduce.

You Tube Music Video: Donald Byrd, Stepping Into Tomorrow

Risk: unfulfilled predictions will make me look bad

January 5, 2010 Posted by | business, China, commerce, corporate social responsibility, culture, ecological, government, inflation, unemployment, war | , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Leave a comment

Bring the Warriors Home

Heart of my heart, is it meet or wise
To warn a King of his enemies?
We know what Heaven or Hell may bring,
But no man knoweth the mind of the King.
Of the gray-coat coming who can say?
When the night is gathering all is gray.
Two things greater than all things are,
The first is Love, and the second War.
And since we know not how War may prove,
Heart of my heart, let us talk of Love!”

The Ballad of the King’s Jest

Rudyard Kipling

The irony of President Obama’s selection as the Nobel Peace Prize winner for 2009 was not lost on the recipient. In one of the receptions held to honor him, Mr. Obama spoke about Alfred Nobel’s invention of dynamite and its use as a weapon of war as the source of wealth that funds the prestigious peace prize.   Earlier in the day during his acceptance speech, Mr. Obama spoke eloquently on the motives for his decision to continue the prosecution and escalation of the Afghan war.  As a war time President, Mr. Obama sees war as a tool to bend the will of history toward justice and good.  He believes the greatest global good will be served by the pursuit of the Afghan conflict.  I respectfully disagree.

The greater irony in Mr. Obama’s acceptance speech for a peace prize is that it was essentially a discourse of war apologetics.    Mr. Obama delivered a speech void of any contrition and never once equivocated as he outlined his commitment and reasoning why a nation should engage in war.  To be fair to Mr. Obama, his decision to escalate the war in Afghanistan is not a surprise. Throughout his Presidential election campaign, Mr. Obama was explicitly clear that he intended to pursue Osama bin Laden and his band of murderous terrorists to the Gates of Hell.  Even if those gates led to a protected compound in downtown Karachi,  Mr.  Obama’s resolve to check mate al-Qaeda remains steadfast.

The problem with the continued prosecution of the Afghan War is that our enemies are not a nation state nor do they occupy a single geography.  Al-Qaeda and their confederates are stationed throughout the globe.  They exist in underground sleeper cells waiting to be summoned by unconscionable puppet masters.  They are guided by an ideology of hate neatly disguised and wrapped in a hajab of religious orthodoxy. They use asymmetric strategies and tactics to wage war on citizens and soldiers alike.  A conventional army garrisoned in a provincial  hamlet is ill suited to fight an enemy that knows no bounds in territories and tactics and is prepared to conduct a military operation that spans multiple generations.

The Taliban and al-Qaeda’s access and control of Afghanistan’s lucrative opium trade forms the socio-economic base that allows them to leverage considerable political power to pursue their terrorist agenda.  The opium trade is weaved into a complex tribal culture whose power and prominence supersedes a weak and corrupt central government that derives its right to govern by the tepid consent of friendly tribal leaders and the military might of foreign armies.    Afghanistan like other narco dependent states will remain politically unstable and continue as a terroristic threat to the United States until the opium trade is supplanted as the countries principal source of economic and political power.

Afghanistan is not the world’s sole narco-terrorist state.  A number exist in the Western Hemisphere and one need look no further then across the Rio Grande to witness the growing power of a narco-dollar financed state subversion.  Mexico’s difficulties serve as a reminder that the risks to the stability of our republic lie much closer to home and is in fact in full residence within our borders.  Engaging a war in Afghanistan is a clear and present distraction from addressing the pressing issues that undermine our national security.

True al-Qaeda’s acquisition of a nuclear weapon conjures up many unimaginable and terrifying scenarios.  Unfriendly regimes that are hostile to the United States like North Korea and Iran control nuclear capabilities.  But we have  no armies attacking them.  Perhaps the solution is to remove nuclear weapons and uranium devises beyond the reach of the Taliban, al-Qaeda and other avowed enemies of our republic.  If this is the major threat, its mitigation can be achieved without the prolonged deployment of 130,000 troops.   It can be accomplished by having an international force guard and quarantine Pakistan’s nuclear arsenal.  Certainly the Bush Doctrine allows for this type of intervention.  Some will object to this course of action on the grounds that we must respect Pakistan’s sovereignty.  But Mr. Obama’s escalation of the Afghan War will require unilateral incursions into Pakistan.  This action to eliminate the ultimate horror of nuclear weapons falling into the hands of terrorists is the surest way to mitigate this pressing threat.

The multifaceted omnipresent dangers to the United States transcend nuclear terrorism. Economic degradation is compounding social problems and creating deep political fissures within the country.  Our countries fractured culture is being exploited by powerful self serving interests.  A cabal of corporate elites equate national security with their economic well being.  They employ armies of lobbyists  and ply multi-channel media platforms to stoke fear and division to advance their narrow interests.  Usually at the expense of supporting initiatives that address the complex threats that weigh on the security of the country.  These special interests attack programs that stabilize social safety nets.  They finance expensive media campaigns condemning aid for local government fiscal stability, universal health care, meaningful environmental policy, expanded funding for public education, infrastructure improvements, support for trade unions, job creation programs and social assistance programs.  The well being of our people is the basis of our national prosperity.  The sources of social instability remain strong and continue to grow.  The recession,  a jobless rate of 10%, 4 million foreclosed homes, 30 million citizens unable to have access to affordable health care, failing school systems, bulging prison systems and environmental degradation represent a greater threat to national security then 100 al-Qaeda fighters holed up in an ice cave in the Tora Bora tribal regions.

No doubt  the United States was attacked by terrorists enjoying protection of a friendly regime in Afghanistan.  On 9/11 I witnessed first hand the horror of fellow countrymen jumping to their deaths from the upper floors of the World Trade Center.  Moments later as I stood in front of Trinity Church I escaped the pyroclastic cloud of the falling South Tower through a revolving door on Wall Street.   I understand the irrational hatred terrorists harbor in their hearts and the devastating consequences of their insane acts.  They are a cancer that must be eradicated.

Mr. Obama, has stated that the Afghan insurgency enjoys no popular support.   Afghanistan has a long memory and a longer history of a people subjected to the designs of imperial powers and foreign invaders since the time of Genghis Khan. The resistance to foreign occupation by the Afghani’s is legendary.  From the massacre of Elphinstone’s Army trying to escape blood thirsty tribes through the Khyber Pass, to the Soviets disgraceful retreat from the hail of Stinger Missiles supplied by the United States; it now  may be our time for a  ride in this horrible wheel barrel.

Afghanistan is a region of the globe where the great powers and trends of history clash.  It is a vortex of a turbulent maelstrom that brings the powers of China, Russia, India and Islam into a volatile mix.  The forces of national interests and modernity is held at bay by tribesmen toting WWII rifles, expedient tribal allegiances and ancient codes of honor.  Why doesn’t China and India have a more prominent role in ending this conflict?   It is in their geopolitical interest.  Better let the United States  send its nations finest young people to chase phantoms and fight in the endless canyons of the Hindu Kush; while Chindia builds their economies at home and forge new alliances abroad.  Perhaps they hope that this war could be the Pax Americana’s Waterloo?

Mr. Obama quoted from Dr. Martin Luther Kings Nobel acceptance speech, stating, “Violence never brings permanent peace. It solves no social problem: it merely creates new and more complicated ones.”  This above all else may prove to be the most prophetic and ironic truth to Mr. Obama’s war.

The United States cannot afford this war. It is a distraction. It weakens us.  National security is more then a well provisioned and gallant army. A nations strength and its ultimate security is based on an enlightened, well fed, healthy and industrious people.

Mr. Obama acknowledged his indebtedness to those that went before him.  He stated that, Mahatma Gandhi, George Marshall, Albert Schweitzer,  Martin Luther King Jr. and Nelson Mandela are worthy figures that we should emulate.  Their greatness showed us that a better path must be chosen if we are to progress as a people.  Their choices and examples of leadership were not based on expediency and some came at  terrible cost.  The pathway of war is worn and old.  The world is much too weary from the familiar journey.  Its time to choose a better path.  End the war now Mr. Obama.  Bring the troops home.

You Tube Music Video: Mormon Tabernacle Choir, Battle Hymn of the Republic

Risk: war, peace

December 14, 2009 Posted by | 9/11, China, economics, Obama, recession, war | , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | 1 Comment

Weedpatch

Yesterday’s post on the theme on the New American Diaspora neglected to mention the impact of mortgage foreclosures.

Diaspora is a Greek word that means “to scatter.” Yesterday we speculated on how high energy prices and climate change may impact the changing demographics and population shifts in the urban centers and rural areas of America. Today we offer a brief comment on mortgage foreclosure and its potential impact on the New American Diaspora.

Due to the excesses of the credit marketing orgy and the implosion of sub-prime lending market, it is estimated that during 2007 1.5 million mortgages were in foreclosure. The Department of Treasury estimates that during 2008 approximately 2.5 million mortgages will enter foreclosure and subsequent quarters will experience 800,000 home foreclosure run rate. That’s a staggering amount of potentially displaced people.

It is heartening to see that our governmental institutions are moving to address this growing problem. The financial and political impact on state and local governments and the economies of local communities can be severe.  Over 4 million mortgage foreclosures have been or are forecast to occur. If we surmise that each mortgage is tied to a house that shelters 3 people we are speaking about 12 million people who are being put out of their homes. This does not translate into 12 million newly homeless people. Many former homeowners will return to renting their dwellings. But the pressure that this will put on affordable housing markets ability to absorb this dramatic spike in demand will drive affordable  housing prices up and will contribute to a rise in homelessness.

State and local governments rely heavily on property tax receipts. As defaults grow the level of tax receipts will recede forcing state governments to raise taxes and cut back on critical services. State governments are moving to address this problem. The Federal government is also trying to develop market solutions to keep people in their homes. If market solutions fail the government may have to dust off some New Deal Programs to address this mass dislocation.

The California town of Weedpatch was created by the Farm Security Administration in 1935 as a settlement community for the displaced Dust Bowl dirt farmers. Lets work to create a solution to this problem so we don’t have to build these camps.

Lets listen to this Woody Guthrie Dust Bowl classic, I’m Going Down the Road Feeling Bad.

Risk: homelessness, local government, tax ratables, social programs, market solutions

July 10, 2008 Posted by | Bush, credit crisis, homelessness, recession, social unrest | , , , , , , , | Leave a comment