Posts Tagged ‘geopolitics’

Why American politics is dysfunctional – and dangerous

Wednesday, July 15th, 2009

The polarization of American politics is evident from the way that Republicans and Democrats seem to loathe each other. They scream at their counterparts; they rant for the cameras; their surrogates in the press besmirch each other as worse than foreign enemies. Indeed, the fact that John McCain, the unsuccessful Republican nominee for president, in his concession speech urged his followers to support Barrack Obama as president, was seen as a betrayal by Republicans. And the fact that President Obama has tried to reach out to moderate Republicans at times is seen as a betrayal by the Left, and an attempt to colonize and domesticate the center of American politics by the Right. (Let’s ignore, for the moment, that broadening your base is smart politics, and frankly what any smart president or national leader should do. The fact that George W. Bush made no attempt to reach out beyond his narrow, partisan base, save in the dying days of his administration, is merely one of many pieces of evidence that confirms my belief that he wasn’t a smart president. It has also left his party in dire straits.)

Now, American politics has always been a blood sport, right back to the conflicts between Jefferson and Adams, Hamilton and Aaron Burr, or Lincoln and Stephen Douglas. I can remember the first presidential election I was old enough to be aware of, Eisenhower versus Stevenson in 1956, where the popular jingle that made the rounds was crudely partisan: “Whistle while you work; Stevenson’s a jerk; Eisenhower’s got my power, so whistle while you work.” (My folks were Republicans.) But what’s happening today is much worse, dangerous to Americans and the rest of the world as well, and it all comes back to something we learned about in high-school social studies: gerrymandering.

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WILD CARD WARNING: Is America too big to fail?

Wednesday, June 3rd, 2009

A wild card is a low probability event, which, if it occurs, has dramatic consequences. I believe we now face such a wild card. The idea occurred to me just last week, as I was riding a plane from A to B. Sometimes ideas coalesce for no apparent reason, and as I was reading about the pretty useless cap-and-trade emission system that the U.S. government seems about to pass, a number of different pieces came together to create a sudden insight: that the U.S. government is going to fail, possibly even go bankrupt. This is heresy for someone who studied the financial markets all his adult life: U.S. T-bills have been the world’s primary “risk-free investment.” For this not to be the case implies a financial earthquake of massive proportions.

This is a wild card, instead of a dead certainty, for the same reason that a flu pandemic is a wild card: that there will be a pandemic is an absolute certainty, but nobody knows whether it will start this afternoon, three years from now, or three decades from now. Likewise, the U.S. federal government, unless it makes a Herculean effort to change direction, will fail. What isn’t known is whether it will be this month, or five years hence. It cannot be a long way off, but the precise timing of this biggest-of-all-bankruptcies will come to pass if present trends are unchanged. I really don’t want this to happen, but am very much afraid it will, which is the reason for this warning.

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