Negative Impact of a Long War on the Military

Ever so insightful, Andrew Bacevich has now zoned in on the negative results of a long war, as is the case in Iraq and Afghanistan) on the military. In prior writings and interviews, he has stressed that our nation suffers by having a military that is divorced from the general public. As he states, President Obama says that "our nation is at war", but it is delusion. The "nation" lives with no day-to-day relation with the war.

He now focuses on the negative impact on a standing military that is divorced from the general civilian population. They tend to lose respect for civilian opinion and look toward their leaders as the ones that need to be followed. Eliot Cohen, in another column, notes the same reality.

In the case of a "long war", this is a recipe for disaster. The military tend to view public and political opinion as even less worthy of their respect.

This is a disastrous situation!

Economic Issues regarding China

China remains a concern to the United States and the world, in general. So much is happening so fast with an authoritarian capitalistic system that it is hard not to be concerned about its impact.

My concerns were centered on the amount of American debt they have purchased, the lack of a consumer-oriented economy, and the need to maintain stability in their society to avoid some form of political chaos.

Robert Reich had captured my concerns and more. His blog is worth reading. He lists multiple reasons why the Chinese save so much compared to other nations. He enforces the well-known idea that China is interested in a free market economy since they are committed to dominating it. National concerns regarding the value of their currency is relatively a low priority for them.

Afghanistan: a Problem Bigger than Gen. Petraeus

Once again, Andrew Bacevich responds to the President's commitment to continue the "mission" in Afghanistan with insightful remarks about the inherent delusions associated with the strategies promoted by Generals McCrystal and Petraeus.

I have yet to object to any of Bacevich's observations. He is on target regarding the flaws of the mission. As I do, he views the jiadists of all stripes as criminals, subject to international police action.

Transmission to Senate & House Banking/Financial Committees

Given the problems obtaining any type of consensus in Congress, I wish to express my appreciation for the positive aspects of the bill now going for a final vote. I am not thoroughly happy, however, for the following reasons:

1. Failure to address "too Big to Fail" Banks adequately. There should have been a limit of assets that any bank could hold.

2. Failure to insure that all derivatives would be publicly transparent and that Banks would be prohibited from any such trading with their bank money.

3. Failure to include auto dealers under the rubrics of the new Consumer Protection Agency.

4. Fannie Mae & Freddie Mac should have been addressed more forthrightly.

5. I wish that there would have been a tax on all financial transactions to achieve revenue while promoting some caution.

Having said all of this, I applaud what was accomplished.

"FreeFall" by Joseph Stiglitz

There has been so much written about the financial disaster of 2008 that it is hard to find something new. Since Joseph Stiglitz is so prolific, this book somewhat repeats what he has said elsewhere.

In general, he distinguishes himself from other writers by focusing on root causes rather than blaming individuals or sectors of the financial industry.

What I specifically note about entire body of writings is a focus on the common good and the inherent necessity of regulations to offset the inherent overreach of capitalism. What I find interesting is that this is not very common. For reasons unclear to me, focusing on the common good rather than individual gains and rights has been discarded by many. They do not realize the individual often loses so much by not focusing on the common good. For all those who profited big time during this financial disaster, the vast majority of "individuals" suffered. Even from a self-interest perspective, each one will most likely do better if the common good is the priority.

Facts make a Difference (Sometimes)

Paul Krugman has a major conflict with some of those in the "Chicago School" which concluded that the fiscal problems resulting from toxic mortgages were due to the social dimensions of congressional legislation that promoted home ownership for more and more people.

The facts and data included in Krugman's blog would be hard to refute. In short, the legislation that enabled more types of organizations to issue mortgages was much more of a problem. The lack of regulations in the mortgage industry was key to the meltdown.

Thoughtful Big Picture!

Andrew Bacevich once again has articulated a very thoughtful overview of our nation's priorities, albeit often misplaced. There are so many burning issues impacting our nation and an attempt to address them all as though we have endless resources is, as he says, "stupid". One cannot help but agree.

The most difficult issue to address is the military. It is recognized as an important method for stabilizing many areas of conflict and potential conflict. At the same time, dependency on our nation to address all problems has resulted in strategies that are counterproductive. We are assuming a role that distorts all other priorities and, often in the process, we lose our national soul.

"The End of the Free Market' by Ian Bremmer

Ian Bremmer has written a great book on the current state of international economics and trade. “The End of the Free Market” is by no means a dire forecast that the capitalistic model is going to be supplanted by state capitalism. In spite of the many great achievements of China, Russia, and other nations that are more directly involved in the capitalistic structure than our free market economy, the author forecasts that our model will ultimately prevail and state capitalism will confront serious problems in the future that will more than test its ability to survive.

I have been intrigued with the success of state controlled capitalism, especially China. I am somewhat empathetic with their desire to control the expansion of democracy to avoid anarchy. Few nations, if any, have transitioned from dictatorship with democracy without chaos to some degree. China's success, thus far, has been remarkable. Granted, I share the author's concern for the future when the demand for more jobs and greater income face the limitations of a state controlled economy, albeit one that promotes free trade and a market driven economy.

The author and I agree that there is no free market can operate successfully without regulations, but he surely supports those that support a sound economy rather than emphasize restraints.