I can’t imagine any other reason for it.

Man, aren’t we great though?

A nation that allows all sorts of behavior in public (dare I admit that sometimes we even encourage it?), all kids of crazy dress (my opinion — but then who am I to judge styles?), all kinds of religious belief (without judging for the most part — a special caveat here for Tom Cruise), all kinds of decorating on automobiles that drive our highways (remember the fur covered ‘dogmobile?), shoes that make you wonder why we ever invented the dern things . . .  and on and on.

But, we are also a nation that forgives a guy like Tiger Woods who egregiously violated marriage oaths and common sense.  The crowd at the Masters has followed him loyally and encouragingly — well he did offer a genuine (it seemed to me) apology before the competition started.

At the same time we welcome a new Masters hero (for this year)  and applaud the success of Phil Mickelson, because he is a great golfer (the best this day) and a dad who loves his wife and family so much they spent the week there with him.

Yep, we can appreciate at the same time that we forgive.

And that is a good thing.

We forgave the Germans for WWII (thank heavens since I married one), and the Japanese for the same war ( thanks for the Toyatas and Hondas that I have bought over the years and continue to drive).

And we will forgive the Iraqies and the Afghans if we can ever finish our wars there and let them prove to the world how great their culture is.

In fact this propensity to forgive is one of the greatest things about our country . . . we are so varied and diverse that we find it easy to forgive just about anyone and any nation for just about anything.  Pretty quick too.

Each time we do it the world opens up, gets more forgiving, allows greater acceptance and follows our example.

In short the whole dang place gets better.

I hope, and believe,  that we will never change.  Good thing too.

Just a year ago the world (well at least the Chinese and Russians — I don’t count Iran, Venezuela or Cuba) were yelling that the American Economic model of free-market capitalism was dead.  Boy were they ever wrong.  Our system works and worked — adjustments were made, changes were accepted and now we are on another tear that I hope will soon employ everyone that really wants a job (another neighbor got off unemployment this week!).

Man aren’t we great?

Your darn tootin’ we are!!

thanks to flickr’s johntraynor for the photo

It is not right to consider China a developing nation in 2009 and beyond.

This was the case when I first started doing business there. An example from the past.

Once, on my first morning in Ningbo, China, I got up early (jet lag can be a real *&@%) and found that there was no electricity and no water.  I walked down to the front desk and was told that electricity and water were always turned off between 10pm and 7am.  Now, that was a developing nation.  But it was also twenty years ago and times have changed.

Chinese leaders love to play on their ‘developing nation’ status.  Gives them credibility for all the social/political and economic decisions they make without any real debate.   You can’t say twenty-first century politics are involved because all critical decisions are made at the top by leaders who have no higher authority (the people) to worry about.  That’s the beauty, if you care to call it that, of Communism in its Chinese form.  Decisions are easily made, quickly implemented and subject the decision makers to few if any consequences.  But those decisions often violate human rights and economic fairness.

It works for them, but because of generations of communist policy the Chinese leaders can’t effectively relate to America or Americans.  And we don’t really understand them all the time.

For example, once I was met with a high-ranking local Communist party official (with his cadre of about 10 ‘assistants’) to discuss ‘terms’ for making my patented products in their fine city.  Turns out he was also was the President of the local factory that wanted to make our products for us (where me met).   This was a dingy dickensonion kind of place that just didn’t feel right to me.  No heat at all in the conference room of the executive building.  Nor was there any heat provided on the factory floor.  And can’t even bring myself to describe the toilet facilities.

Boy was I naive, I learned later that the factory was owned and operated by the Red Army.  It ‘employed’ people who were housed in dorms on site (8 or ten to a room), worked 12-14 hour days seven days a week and apparently never left.  The big iron gate was always closed and guarded and the ten foot high brick fence around the factory and related property was topped with a three foot section of barbed wire that would have scared away Brer Rabbit).  Draw your own conclusions but mine was all about ‘forced’ labor.  No wonder they could offer prices that were a fraction of those in Taiwan or Hong Kong.  And the profits went to the military, no doubt.

This local leader began by joking that if America believed China was abusing its people then we should let more of them emigrate to California (a place most Chinese think is like heaven).  He suggested we start with two or three hundred, then he smiled and added million.  Three hundred million?  Yes, he replied.  Then he added that they wouldn’t even be missed in China.

Boy did that give me some perspective.

The factory’s idea of quality control was something that barely worked.  Mine of course was something that worked well, was made of really good raw materials and looked real good.

We never could get together.

I hope this is giving you a sense of the enormous divide that separates our two nations . . . philosophically, economically, politically and socially.

Yet, in spite of all the immense differences China should NOT be considered a developing nation and should NOT be given the free rein developed nations allow those who are disadvantaged.

China must be held socially accountable — and this goes double for economic and military issues.

Their refusal to float the Renminbi (the ‘peoples’ money’) or Yuan (the name of the currency denomination that is equivalent to our dollar) provides an unfair trading advantage.  It increases their exports (because good are cheaper) and decreases their imports (‘cuz our goods are more expensive) thus contributing to the incredible trade imbalance between China and America (think in the neighborhood of half a $trillion per year–or one good Obama stimulus package).

China’s defense of such unfair practice?  “Oh, but we are a developing nation.  It is necessary for us to level the field.”

Tiresome to our diplomats.

How does one measure developed and developing nations anyway?  Putting the gross economic issues aside (average wages, for example), how about the availability of consumer products and especially luxury items.  Think cars, cell-phones, TV’s, computers and such.  This measure sure reflects reality in places that lack such (we consider) amenities.

And so the news last week that China has passed the United States as the biggest market for cars.  Chinese sales are expected to be 12.7 million in 2009, while U.S. sales are forecast at 10.3 million.  Oh, and by the way the Chinese total is an increase of 44% over the previous year!!  Cell phones?  China has more in use.  Computers?  China.  Students in technical Universities?  China.  Miles of high-speed rail?  China (by thousands of miles).

But this car deal is big.  Think of the implications to fuel usage, the cost of oil, pollution, green house gases, steel and other raw material costs.  Huge, baby!  And then there are the jobs, factories and suppliers to make all that possible.  Wow!

Developing nation?  Baloney.  China’s military power is second only to ours.  China’s technology is third to the U.S. and Russia.  China’s population is first (4 times the U.S.’s).  China’s economy is first right now in every meaningful way, with near double digit growth and holdings of  more than $2 trillion of other nations currencies (yes they have a surplus — something other ‘developed’ nations can only dream of right now).

The infamous G7(or is nearly irrelevant now (the largest economies in the world — i.e. Global 7).  The real decisions are at the G2 level and those two are China and the U.S.  No other nation is really close.

Developing nation?  Baloney.  We, and the rest of the world have to stop even thinking about China as a developing nation — they are not.

China has put men into space, has nuclear weapons and the delivery systems to drop them anywhere in the world, a military (in terms of soldiers) the size of Russia and the U.S. combined.

Drop the pretext.  The four or five  most developed nations in the world today include China in just about everybody’’s reckoning.

China has to be taken seriously, held to developed nation accountability and treated as the most powerful ‘partner’ of the United States (remember Obama doesn’t want to think in terms of enemies or friends — not such a bad idea really).

Oh, and by the way, Russia is devolving under Putin (and his puppet Medvedev).  The first of what I will call undeveloping nations (although Cuba probably sets the standard there).  I don’t think they want to be anybody’s ‘partner’ and that egoistic and Machiavellian approach is part of their problem.

Thanks for the photo to flickr’s francisodiez

Not even with extra cash from the clunkers program.  I look into his eyes and I sure as heck don’t see what Bush imagined.  This is one power hungry and selfish dude.  Oddly he craves public attention even more than Obama.  In Russia he is the nation’s hero and number one celebrity.  And regardless of what anyone says he is running the country and it looks like he will continue to until he dies (might even declare himself the new Emperor?).

He has a deadly system to maintain power.  Anybody that contradicts or opposes him seems to end up dead or in jail (newspeople, politicians, business oligarchs etc.).  Not a nice guy.

Yikes!  And Obama is cozying up to this ‘Don?’

Ah, well, yesterday I wrote about China and today I look at Russia and their place in the economic maelstrom of the current worldwide recession.  It isn’t a pretty picture.  And they definitely don’t deserve to be considered in the otherwise impressive group called ‘BRIC’ (that’s the developing nations of Brazil, Russia, India and China) except they still have a sizable nuclear arsenal . . . and that carries enough weight to makeup for economic and political/social incompetence and crooked dealings.

Russia has about twice the land mass of either the United States or China — it makes Texas look like a kiddie pool. With a population of about 150 million (less than half of the U.S.) you would think the average Russian would prosper.

Not!  Their GDP was down 10.9% in the second quarter.  That is by FAR the worst performance of the BRIC.  I mean things are awful there.

The average life expectancy of a male in Russia is only 59 years!

I admit that Russia is as yet unvisited by me, but the stories I have heard and read about doing business there are frightening.  Their GDP is less than 1 trillion $$.  Per capita GDP is bad — $7,000 (U.S. is about $44,000).  The government controls everything of real value.  Yet their stock market is up 70% so far this year.  You wonder if there is a bubble there?  I imagine so, but who really knows as nothing is transparent in ‘The Motherland.’

Why have they (the Russian people) never prospered since the ‘great revolution’?  It seems perfidy follows generation after generation of their leaders.  The example they set is bad enough, but the high life they live is even worse.  How are these guys heroes to a populace that is still living in an economy with little to show for Putin’s grand plans?

Russia depends on their oil and natural gas exports (nearly 2/3’s of total exports).  And they are just as bad as Venezuela when it comes to nationalizing or controlling  profitable enterprises for the benefit of the few.  Kickbacks and bribes are the norm.  The government is about as democratic as Chavez’s and even less qualified to run the potentially great nation.

I have read a lot about the people of Russia.  They are hardworking and loyal and deserve a break.  But they suffer under any government eventually and Putin’s is the worst since Stalin in my opinion.  The guy stinks of  rotten deals and petty jealousy.  He put one of their greatest entrepreneurs in jail on a whim and took over his multi-billion $$ oil business.  All because the guy was going to run against him in an election.

Every official in Russia has their hand out, from Policemen to taxmen.  The place is rotten with crime, government fraud and flat out dishonest dealings.  I have heard (unattributed) that Putin has amassed a personal fortune in the ten’s of billion of $$.

That kind of leadership simply sucks.

Fact:  Russia doesn’t have a chance in the world economy until they start letting entrepreneurs and outside business interests with skills and capital operate unfettered by government control.

Bottom line: sure Russia had a growing economy when oil prices were high.  BUT, if the rest of the world really takes alternative energy seriously then Russia is in the crapper (I believe that is colloquial Russian).  They haven’t really implemented any realistic stimulus and are continuing to blackmail their neighbors over oil and gas.  Russia’s reputation suffers worse than America’s in global surveys.

Gosh Russia is a wonderful place (think of St. Petersburg or the pristine beauty in the Northeast) but full of rotten apples at the top!

Russian leaders are too egotistical and too interested in lining their own pockets and the pockets of their ‘buddies.’  It has no place in the BRIC nations . . .at least not until it can change to a truly democratic government and get rid of Putin and his KGB cohorts.

Then they can start utilizing the underrated talents of the average Russian and start really benefiting from incredible natural resources.  Oh, and they should start watering down the Vodka they sell and arrest all the “mafia” types.  Then the life expectancy of men just might get up to that of their women (about 73 years — jeez louise there must be a lot of lonely widows in Siberia).

Okay, enough of that — stay tuned for India and Brazil.

Thanks to the world economic forum for the photo from flickr

It was scary but turned out to be a game.? Albeit a very dangerous game.

I think that is what is going on in North Korea.? Their bankrupt economy is forcing them (i.e. the great leader Kim Il jJung ) to play games with geo-politics in order to garner attention and justify aid.? Ahmadinejad in Iran too.

Sad thing is they have nothing to lose.? Except a potential war . . . in which case they would expect U.S. and U.N.? economic intervention to resurrect their corrupt nations. I have to interject though that Iran is certainly a few steps above the bargain basement craziness of NK–great history, sorta open, educated and intelligent people, if misguided by religious zealots.

Anyway, how many nations have American taxpayers funded introduction into the developed or developing? world?? Oh yeah, there’s Germany, Japan and South Korea for sure.? Whoops, Vietnam, Iraq and China too (China by the round about way of paying premium $$ for everything they could make for twenty or so years).? A bunch of others if we really focused.? Is North Korea next?

Holy mackerel batman, I hope not.

Up to us, the U.S. of A.? Finally President Obama has something on his table that is not economic.? He has a full-blown international crisis that can’t be pushed down the priority ladder.? This is the biggest geo-problem of his administration so far.

What is he to do?

For one thing he has to bring his current popularity in the world to bear and especially in China and Russia (if such popularity exists there).? These nations have us by the oil and dollar vise-grip and certainly don’t have to cave to pressure from Washington (at least in their minds).

On the other hand, with our dependence on China to keep buying up trillions of $$ of loans from the government to support or ‘debt fix’ and Russia providing a significant part of the oil and gas needs of our allies in Europe, we are not playing from a position of strength.

So what?? We’ve been there before and risen to the occasion.

There come times when you do what is right regardless of the potential economic implications.

So, don’t let it bother you, Mr. President.? Do what is right and let the consequences follow.

We must not be blackmailed as a result of our failed energy policies and greedy economic failures.? After all, the previous three or four administrations caused most, if not all, of those problems.? Make your own tracks here BHO, and use the opportunity to force energy independence and fiscal responsibility on a nation that needs both desperately!

Take heart and take action now BHO.? Let China and Russia know that we will act without them if necessary.? Let them know that any inaction on their part will be widely publicized throughout the world as irresponsible so they wil be judged in the court of public opinion (I bet THAT thought has them shaking in their boots and slippers!).

Another thing.? Don’t be afraid to play the ‘race card’? if needed.? That is always a big threat nowasdays isn’t it?? This time though it is even more, as in the ‘arms race card.’? North Korea and Iran are pariah nations.? They don’t seem to care about the United Nations or public opinion.? But they can’t be all THAT stupid can they, criminy they DO have nuclear programs!? Does any one think they want an arms race aimed at them?

Make them think twice.? Or three times if it takes it.? Heck they are dictatorships and everyone knows that.? Elections in either nation are nothing more than publicity stunts.? All decisions are made by only one person in either country — ‘the great ladder, uh leader in North Korea (he needs a ladder to talk face to face with just about anyone) — and the ”grand I, uh told ya’, oops, Ayatollah, in Iran. Man, I despise such despots, does it show?

So, make sure these two morons know you are serious.? Make sure they know that stand-off military action is imminent (what they heck do we have stealth bombers for anyway?).? Let them know our next bomb and missile tests just might go off course like theirs have.? That our ‘bunkerbusters’? just might end up in the ‘burrows’ those crazies live in . . . not the ocean.

I abhor the thought of any military action but, you get the idea and ‘they’ must too.? Military action is on the table . . . it has to be for the safety of our allies and our own nearby forces (more than 200,000 of our military are in proximity to these two ‘yahoo’ nations.? For world peace, as far too many Miss America contestants remind us.

Global thermonuclear war?? Jeez, Louise, of course not!? But we have to take action now or it will be too late to do so without serious alternatives in the mix.

Sure, I hope China and Russia will get on board, and I sure hope South Korea will be 100% supportive. You are either for ‘world peace’ or against it.? Make ‘em chose and damn the economic consequences.? They have at least as much to lose — they need our $$ for their toys, electronics and oil.? Without those $$ their economies would fall like a house of cards.

Man am I looking forward to the international news during the next week!? I sure hope the Prez is as good as he has looked the past few months.? This could be interesting!

Thanks to flickr’s agutsi for the photo