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ENERGY: LIFE AND DEATH BEYOND THE MARKET By Scott Bennett PDF Print E-mail
by DallasBlog.com    Mon, Dec 26, 2005, 03:38 PM

Question: Which of the following has contributed the most to George W. Bush’s job rating decline? (a) the Valerie Plame affair, (b) the war in Iraq, (c) the yawning federal budget deficit, (d) FEMA incompetence or (e) high energy prices? Correct answer: (e) High energy prices.

Political junkies and the media are obsessed with Plame but average people aren’t. If the economy is Ok no one cares about deficits. The hurricanes were so last summer. The war hurts but has nowhere near the potency of energy prices. For most Americans the war is images on a TV screen. Only a few even know someone who knows someone killed in Iraq. But everyone buys gasoline every week and pays to heat their homes.

The political process has offered two responses: Conservatives counsel patience to allow the market to work its magic. Congressional liberals counsel a windfall profits tax on Exxon Mobile and grassroots liberals counsel price controls. The liberal’s counsel may be given short shrift: taxing Exxon will not increase oil production one pint and price controls are proven to make matters worse – fast. The conservative response also fails but needs a lengthier critique.

The classic conservative mantra is that price increases will trigger increased supplies because of greater investment in production and newly cost-effective alternative energy sources, and cause a decrease in demand through changed consumption habits and the advent of new conservation technologies. This is all fine as far as it goes – which isn’t far enough.

First, it assumes the existence of a free market for energy. There is no such thing. Yes, OPEC’s power waxes and wanes but when it waxes it is a formidable cartel. Second, most countries where you find large oil reserves hate Yankees and given a choice of customers will choose energy hungry China. Even where current regimes are friendly there is a very high probability of regime change.

Second, it assumes no artificial bottlenecks like those created by environmental permitting regimes. It is both sad and amusing to hear Congressional critics of big oil berating its CEOs for not building more refining capacity while knowing full well Federal and State regulations make it almost impossible to build or expand a refinery.

Third, there is no such thing as an “economy.” There are only “political economies.” And in political economies short term pain by the people is ignored at great peril to those who govern. Put another way “patience” is a sure recipe for defeat.

Finally, markets allocate resources efficiently over time but do not take into account valid political concerns. Americans ship enormous amounts of money to OPEC nations, not one of which is a stable American ally. We wage wars to protect our oil lifeline (which I consider a valid reason for war). We avoid both through energy independence. But that comes at a price. The market cannot factor in those costs, only the political process can do that.

The right market intervention would be for Congress to impose an oil import fee that would set a floor on energy prices at around $35 to $40 per barrel of oil (to hell with free trade). That would assure investors that development of domestic alternative energy sources would be economic over the long run. Whether it is coal gasification, squeezing oil from tar sands, shale oil, nuclear power or bio-fuels the US would shortly meet all of its energy needs from domestic sources. The resulting energy independence would have an enormous value a market cannot calculate.

Yes, consumers would be denied the price benefits of the next cycle of low prices and the federal government would have windfall revenues with which to close the deficit. The latter sounds like a good thing. The former is the price you pay for not having troops in the middle East and not paying tribute to mullahs and leftist thugs like Venezuela’s Hugo Chavez.

 
DEMOCRACY DOESN'T ANSWER EVERYTHING by Tom Pauken II PDF Print E-mail
by Special to DallasBlog.com    Sat, Dec 24, 2005, 04:00 AM

Many individuals in the United States and Western Europe praise democracy as the only good system of government. These promoters of democracy believe their system of government can work effectively everywhere. They fail to consider that democracy may not be appropriate for some countries and cultures. Hence, difficulties arise amongst nations. Hong Kong is a city linked by the cultures of the east and west. Hong Kong was a colony of Great Britain until 1997 when the Thatcher government handed over control to China. Hong Kong had experienced many freedoms under British rule, and Beijing left Hong Kong "more free" than the mainland. Officially, there is no media censorship, no restrictions on religion, and no socialist bureaucracy hampering the economy. Unofficially, the economy is free, but you had better be careful about what you say in the media, and Christian believers are not entirely free (although more so than in mainland China). Meanwhile, Beijing doesn't allow a fully democratic government. Donald Tsang the Chief Executive of Hong Kong was appointed by the Chinese government. There were 60 members of the legislature, but only half of them are popularly elected. Pro-democracy supporters want "full democracy for Hong Kong. Meanwhile, the economy of Hong Kong is doing great. It grew by 8.3% in the third quarter and tourism increased by 7.6% for the first nine months of the year.

Tension between the pro-democracy movement in Hong Kong and China’s government has been growing this month. On December 4th, 250,000 pro-democracy protestors in Hong Kong marched from Victoria Park to the government headquarters downtown. This week pro-democracy lawmakers overwhelmingly rejected Chief Executive Donald Tsang’s proposed changes to the City’s electoral process which would have given neighborhood groups more say in picking the legislature. The measure required two-thirds approval, and pro-democracy legislators voted 24 to 1 against it, claiming that there needed to be a timetable for moving towards full democracy in Hong Kong.

The U.S. State Department has waded into the dispute on behalf of the pro-democracy protestors. State Department spokesman Adam Ereli said, "We believe that it's important to achieve universal suffrage in Hong Kong as soon as possible. The people of Hong Kong are ready for democracy and the sooner that a timetable for universal suffrage is established, the better." Ereli’s statement comes across more as a demand rather than a statement and undoubtedly was understood that way by the Chinese government. Beijing reacted by claiming that the United States was interfering with the internal affairs of China.

China has never experienced western-style democracy historically. So, making the transition to any form of democracy is bound to be difficult. Lest one forget, our democratic republic in the United States was based on the British common law tradition. How would Americans feel if the Chinese government demanded that our country follow in the footsteps of Chairman Mao? It is not easy to make the transition from a totalitarian regime to one with a free economy which allows political and religious freedoms. Chinese officials are trying to navigate through heavily mined fields as that country moves away from a Communist ideology which dominated that nation’s political system for half a century.

As Chinese officials look at how democracy is working in the rest of Asia, it may give them pause as to how quickly they want to move in that direction. In Japan about 70% of people recently polled stated that they don't respect their elected legislators. South Korea elected Noh Moo-hyun as their president, but his popularity ratings hover around 20%. The Philippines has one of the freest democracies in Asia, but its economy is one of the poorest. Much of Asia suffers from corrupt and incompetent, democratically elected governments.

The 250,000 people who protested in Hong Kong on December 4th feel that their problems will be solved if they just have a "full democracy". But, that hasn’t proved to be the case in other Asian nations where democracy reigns.

The United States and Western Europe have a democratic tradition which they are proud of; but trying to export democracy in areas of the world where there are no democratic traditions to speak of is difficult to do. Democracy succeeds only if the citizens and government of a country want it to work.

China is slowly moving away from Communism. Whether it will turn towards democracy or towards an authoritarian regime of some kind is hard to tell at the moment. But, one thing is certain, the Chinese – not the Americans – will determine the political future of Hong Kong – and China

 
THE JOKE’S ON PRESIDENT-ELECT EVO MORALES by Tom Pauken PDF Print E-mail
by Tom Pauken    Sat, Dec 24, 2005, 04:00 AM

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Evo Morales
Bolivia recently elected a left-wing coca farm organizer by the name of Evo Morales as its new President.

During his campaign for the Presidency, Morales pledged to legalize coca-growing and nationalize the energy industry. He is a protégé of the pro-Communist President of Venezuela, Hugo Chavez, and no friend of the United States.

A conservative talk show host in Spain called Morales in Bolivia impersonating the socialist Prime Minister Jose Luis Rodriguez Zapatero, according to a story in the Financial Times. Here is a report of the exchange between the Spanish Prime Minister’s impersonator and Mr. Morales:

"A humorist on the morning show of Radio Cope, owned by the Spanish Roman Catholic Church, called Mr. Morales this week impersonating Jose Luis Rodriguez Zapatero, Spain’s socialist prime minister. The exchange, broadcast several times on Wednesday, had ‘Mr. Zapatero’ congratulating Mr. Morales for his resounding victory and urging him to join "our Cuban brothers, and our brother [Venezuelan President Hugo] Chavez, in the triumphal new order we want to establish in Spain and Latin America." The unsuspecting Mr. Morales "told ‘Mr. Zapatero’ he was looking forward to working with Fidel Castro, the Cuban Leader, and Mr. Chavez to achieve ‘the liberation of our peoples’ … ‘You have the unconditional support of the Spanish government. Down with imperialism,’ Mr. Zapatero’s impersonator replied."

While this is a funny hoax, the joke ultimately may be on us. It is likely that the President-elect of Bolivia was voicing his true beliefs when he told the man he thought was the Prime Minister of Spain that he looked forward to working with Fidel Castro and Hugo Chavez for "the liberation of our peoples".

That is just what the United States needs – another hostile regime in Latin America. Fidel Castro may be close to the end of his rule, but it appears that would-be Castroites are bubbling up in leadership positions throughout South and Central America. With all our attention focused on the Middle East, we had better start paying attention to what is happening to us south of the border.

 
GUEST VIEWPOINT: WISHING YOU CHRISTMAS JOY by Wes Riddle PDF Print E-mail
by Special to DallasBlog.com    Fri, Dec 23, 2005, 07:00 PM

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One of the ‘fruit of the Spirit’ is joy, and when I think of Christmas, I think of joy and become, well—joyful. That is to say, Christmas makes me full of the joy at what the holidays bring, and also full of Joy for what the Christ Child means. Some of my fondest memories are of Christmastime. When I was a child there was something expansive in the Season it seemed, in that, it gave to the rest of the year its whole meaning. The year would end on a happy note, and the next would begin that way. There was—and is, of course, the family Christmas tree and the ritual of going out and picking just the right one (and on occasion, getting to actually chop one), loading that perfect tree and then trying to get it inside the house to an appointed spot (trees always look smaller outdoors!). The hard part sometimes was setting it up to make it stand straight, but we always had fun decorating, and I would "help" a younger sibling with pointers like, "Don’t hang all the bulbs on the lowest branches!" So when work and school would finally make way, hours were spent together in the house in sheer enjoyment, looking at the lights and decorations on the tree, squinting to produce still more effects; listening to the beautiful carols you can’t play enough, since they only come out once a year. There was time then to contemplate things taught at Sunday school, and lots of time contemplating bright, paper-wrapped packages beneath the tree; and wondering what the smaller, bulgy knick-knacks at the bottom of stockings hung might be. For me there were also favorite family trips this time of year—to snow-covered peaks of the Rockies in Colorado, to the frosty wood of the Ozarks in Arkansas. Most of all, I suppose, I do remember the love of family and the cheer of the whole community and in places we’d go at Christmastime, as smiles and salutations came from total strangers. The reason I believe was that joy sprang from Joy of another kind: even the knowledge of our Lord Jesus Christ, and the collective and sincere celebration of His Birthday. How awesome and amazing that Joy remains!

The fact of the Virgin Birth meant that God not only knew about us here on earth, but He also cared for us supremely. He sent His only begotten Son, ‘that whosoever believeth in Him should not perish but have everlasting life.’ Jesus awakened, as it were, the soul in man; activated his conscience; and made him aware of the eternal aspect of his nature. After Jesus, there were no excuses—but there was hope like never before. God wouldn’t leave us lost or abandoned, but rather sent His Son, a Way-Shower to humanity. Jesus’ Birth literally signaled that physical conditions and limitations were no object, that we might follow Jesus in overcoming the world. For God our Loving Father—omnipresent, omniscient and omnipotent—the One who fills all space and is all knowing and all-powerful—dwelt among us, not only as the invisible air we breathe, but also as another human being, Whom we could see and touch and hear and love back. God visited us in Person through His Son, and His presence changed the world. History could never be the same. Jesus ransomed this world in effect, after betrayal and unspeakable cruelty—and said it was okay too, that we could be forgiven and altogether washed clean.

But the experiences of Jesus’ worldly existence would come later. On that first Christmas morn, it was relatively simple: a moment of complete and unadulterated Joy. The angels sang, and men from the East followed the Star to Bethlehem to find Him there, dressed in swaddling clothes and lying in a manger; and they laid their gift offerings beside the greatest Gift of all. How God picked the lowly to frame His surroundings, the pure in heart to witness the miracle and keep Him company on that First Day. And ever after, the world’s perspective changed: Love became the highest virtue. Man felt the weight and worth of his soul as never before. Indeed, American freedom would spring from that singular moment and the knowledge that came from it, for Jesus demonstrated by His example and teaching the moral worth of every single human being! Every people could be a chosen people, and every person "elect" through adoption. For Jew and Gentile alike, there was no more need of waiting—the light was come into the world. Man would have to regard the Father and consider Eternity in his calculus day to day, its import and its implication for living life on earth. Jesus would grow in Spirit as a young man and, in the fullness of time furnished many examples of the material world yielding inevitably before Him, and evil submitting involuntarily before Him. As amazing as His works and miracles were, what is still more amazing is that God would voluntarily submit Himself to be human, that is, to experience the frailty, pain, temptation and all that the human condition entails. Perhaps we read too much now into that Nativity Scene—all that’s implied, the growth of a boy, the blossoming of a man, the unparalleled career of the Great Teacher, the Friend and Master of man; His crucifixion and glorious Resurrection. For now, He is a Baby—sweet, undefiled, innocent; and one imagines happy, playful, curious, smiling. For the moment, nothing in the world impinges upon the utter happiness: of Mary the most wonderful Mother, Joseph the model stepfather; and of animals and every creature blessed to behold and gaze upon the sight. There is only Joy, in other words. King Herod has his evil intent and design to try and kill this Child, but for now there’s no threat, no element, no evil thought can penetrate the stronghold of a palace-manger, where the King of kings heralds Good News.

May this Christmas be a time of joy and Joy for you and yours; may it please your every sense, including your spiritual sense: to smell the scented candles, the crisp outdoors; to taste the cookies and the fancy meats; to listen to a choir singing; to feast your eyes on the colors and soft firelight; but also to feel His Hand in yours, to rest your faith and hope in Him, both now and forevermore. Amen.

Wesley Allen Riddle is a retired military officer with degrees and honors from West Point and Oxford. Widely published in the academic and opinion press, he ran for U.S. Congress (TX-District 31) in the 2004 Republican Primary.

 
ROB ALLYN HEADS UP CAMPAIGN TO IMPROVE MEXICAN GOVERNMENT’S IMAGE IN THE US PDF Print E-mail
by Tom Pauken    Fri, Dec 23, 2005, 06:05 PM
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Public Relations Expert Rob Allyn

The firm of Dallas Public Relations/Media expert Rob Allyn has been hired by the Mexican government to improve the image of Mexico in the United States in the wake of widespread public pressure to tighten our common borders and crackdown on illegal immigration from Mexico. Allyn previously worked to help elect Vicente Fox President of Mexico in 2000. Fox was the candidate of the pro-business PAN party and defeated the PRI candidate in that race. PRI, a statist party, had controlled the government of Mexico for more than 70 years in what could charitably be called a "guided democracy".

While Fox’s government has made a serious effort to clean up the official corruption that is embedded in the Mexican system, there are widespread concerns in the U.S. and Mexican circles that the drug cartels still enjoy the protection of many Mexican military and police officials. The decision to hire the Allyn firm comes at a difficult moment for Vicente Fox who will be leaving office next year and who would like to see that office of the Presidency stays in friendly hands. Mexican Presidents are allowed to serve only one six-year term.

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Mexican President Vicente Fox
Mexico’s election is only six months away, and the three leading candidates are locked in a very tight race with each of them enjoying support in the 27-29% range at the present time. Felipe Calderon is the candidate of Fox’s conservative National Party, or PAN. Roberto Madrazo is the candidate of the Institutional Revolutionary Party, or PRI, which still remains the dominant political party in Mexico (although it has been losing support in recent years). The candidate who most troubles American policy makers along with conservative business and religious interests in Mexico is Andres Manuel Lopez Obrador, the former leftist Mayor of Mexico City. Mr. Lopez Obrador may have a slight lead in the race at this time although Felipe Calderon (the PAN candidate) appears to be gaining support. The leftist former Mayor reportedly has the private backing of Hugo Chavez, the pro-Communist President of Venezuela who is closely aligned to Fidel Castro, and who is using his country’s oil revenues to extend leftist influence throughout the Western hemisphere.

Brazil, Argentina, and (most recently) Bolivia have elected leftist Presidents. President Vicente Fox
doesn’t want to see that happen in Mexico.

In an interview with DallasBlog, Allyn told us that the Fox government has made much progress in cleaning up corruption in the system and putting policies in place to encourage the development of the private business sector in Mexico. For a variety of reasons, Allyn believes that the story about the progress Mexico is making on many fronts has not been properly told in the United States.

Now, Allyn’s firm will see what it can do to correct that stereotype of Mexico as an unreliable neighbor.

Whatever one’s view of the immigration issue, it is not in our nation’s interest to see a leftist like Andres Manuel Lopez Obrador elected President of Mexico. We don’t need another Hugo Chavez across the border from us. So, anything Rob Allyn can do to improve relations between the United States and Mexico is welcomed here, particularly if it helps ensure that a hard leftist doesn’t come to power in Mexico.

 
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