Archive for September, 2011

Obama, Energy Policy, and Dismal Energy

Economics is often called the dismal science because of an article written by Thomas Carlyle more than 150 years ago. In it he proposed mockingly to reintroduce slavery to control labor markets. During modern times, this moniker proves to be a prophetic choice. Modern economics have, after all, brought us not only free markets and unimaginable monetary rewards for the few chosen ones, but have also produced the great depression of 1931, the world financial crisis of 2008, and 12 recessions in the intervening 75 years.

Just imagine a similar performance record for airplanes, skyscrapers, nuclear power plants, and bridges!

The financial damages inflicted by systemic deficiencies in our economic infrastructure are unbearable and must not be tolerated any longer. These deficiencies are manmade and are caused by regularly failing institutions. Yet, we not only continue to support these institutions, but bail them out without conditional provisions that prevent them from paying irrational bonuses to their management and using the bailout funding for starting the engineering of the next recession, depression, or financial crisis. Crises are the occasions when the chosen cash in. Read the rest of this entry »

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The Value of Diplomatic Relations

I was not surprised to hear that the US got Northern Korea off their blacklist. The one thing the country doesn’t need at the moment is more enemies. A lot of east-Asian countries were not amused by the Lehman bankruptcy. These countries are paying much of the debt of the US.

After heroic years where the individual hero could do well for some group but harm others at the same time, we may come to a new era where diplomatic relations will be revalued.

One side of diplomacy and diplomatic relations is about culture. Each country has its own style of being diplomatic:

British diplomats are not alone in maintaining a comfortable and flattering self-image. … diplomats of many other countries rest on similar conceits. An Egyptian might claim that his tradition is one of brokering the pan-Arab view, while offering a bridge between east and west (a role claimed, too, by Turkish diplomats); the Dutch are the hard-headed pragmatists of the European Union; the Singaporeans are the politically incorrect realists; and so on. No one is the bad guy. Everyone believes they are serving the Good. There is a degree of caricature here, but in that caricature lies an uncomfortable truth: that to a greater or lesser degree, diplomats are required to define themselves, to create an identity, in order to function. But for the game to be played, you need a “them”, too. Read the rest of this entry »

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Pakistan – China Relationship and Infrastructure Development

China is a modern developing country with good economic and political condition. It is the biggest ancient society with flair towards modern culture and values. China has very good relations with its neighbors like Pakistan and Russia. It is also working at its best to solve its problem with India. Pakistan was one of the first countries of the world to recognize China, and since then they have very good relations with each other. Any kind of change in both of these countries has good or bad impact on each other, and the region of South Asia. Read the rest of this entry »

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