Telling It Like It Is

THE ENTEPRISE--SO MANY TOPICS

THE ENTERPRISE

So many things going on these days, it’s hard to get a handle on all of them. Assuming most of my readers are time-starved, I’ll try to hit several topics in this issue. At least you’ll have one perspective on them—whether you agree or disagree—it’ll make you think about what’s changing faster than ever, and what we need to know about how to influence change.

--KIPLINGER FORECASTS Says: “Despite headwinds gathering for 2006...no letup in pricey gasoline and other fuels, higher interest rates and a housing cooldown...U.S. consumers won't run for cover. The source of about 70% of GDP, they'll retain a vital role in this expansion. We still see a 3% gain in GDP for 2006.”
We’ll see if they are right. Let’s hope so!

--THE SYMBOLIC END OF ANOTHER ERA
Disney recently announced the shutdown of its last hand-drawn-animation studio. Computers are the way of the future in animation. Now watch those old, hand-drawn cells shoot up in value as collectible art. It’s probably the right thing to do, but it is still sad. Another era ends.

---HOW RESPECTED IS THE PRESS?
Not very…but…neither are most other large organizations. Here are the numbers.
Only 28% of Americans have a lot of confidence in newspapers and TV news. But before anyone celebrates, that is better than organized labor (24%), Congress (22%) and “Big Business” (22%). (From a Gallup Poll, May 23-26, 2005)

---SUPERMARKETS DEFENDING THEIR TURF
Consumers are buying almost half their food at restaurants and takeout places, which is about double what it was in 1980. Yet, families still eat most of their main meals at home. That means supermarkets are selling what consumer want—products that save time in preparation. (From USA Today)

---SOMEBODY (US Government) MUST STANDARDIZE ELECTRONIC MEDICAL RECORDS SYSTEMS
Here is just one scary example of what is happening in a nation of insanely “politically correct” concerns about privacy and the failure to standardize electronic medical records. (Other than the fact that a simple hospital stay requires providing the same information from 5-9 times—all manually—and far from reliably.)

Using her health plan's Web site, Ursula Scott of Seattle can view the medical records of her 2- and 5-year-old daughters, check their immunization schedules, look up test results, exchange email with their pediatrician, and make appointments for their next office visits. But in the case of her 16-year-old stepson, no one in the family can gain access to any his electronic medical records -- including the teen himself. In the over-zealous effort to balance the rights of parents and adolescents in making decisions about medical care, technology has opened up a thicket of new legal and technical issues. The result is that teens are being left out of one of the most important advances in the administration of health care today…electronic medical records. Somebody needs to “get real”—and fast.

Electronic medical-records systems operators claim they don't have a good way to flag confidential material and hide it from parents—that can more easily be done with paper records. As minors, teens can't enter into the security agreements required for access to their online records. Thus they are in limbo, until providers figure out how to give parents access to health-care information for a teen-aged child, without breaking confidentiality/access rules. The result is that many are leaving adolescents out of electronic medical-records systems altogether -- AND revoking parental access to children's records as soon as they turn 13. What lunacy is that?

"Parents are often floored to learn that when their kid turns 13 they are still responsible for them but they can't know certain things about them," says Maureen Moran, who oversees the parental access program for Group Health. Is that unbelievable or what?
Source: “Parents Barred From Teen Health Files.”” The Wall Street Journal August 24, 2005; Page D1

---INTELLIGENT DESIGN [and not so intelligent behaviors]
“Intelligent design” is the new term for “creationism” and “God”—and this debate is now getting crazier—or rather the combatants are getting crazier. The scientists who are certain that evolution must (the operative word is “must”) explain everything are panicky. Why? Because there are gaping holes in evolutionary theory that no one can conclusively fill in. Now the Smithsonian’s National Museum of Natural History has retaliated against one of its own: Richard Sternberg a (previously) well-regarded evolutionary biologist. It seems he “broke ranks” and wrote a paper in which he allowed that some form of “intelligent design” must have played a role in creation beyond just evolution.

So the Museum got the National Institutes of Health to fire him. This is so amazing, at least to me. Years ago I had to write a paper taking a position on “creationism” vs. “evolution.” I did quite a bit of reading and found (surprise) that there was no conflict between evolution and creation…it all started “somewhere from something”…and then it evolved. When it stalled, “something or someone” gave it a nudge. Call it God, or whatever you prefer. No one could convince me that “something” started from “nothing.” That’s probably far more than you wanted to know, but the real tussle is about what our children will be taught in the schools, and that is not trivial.

---I’M GETTING AFRAID OF THE NRA
Is NRA getting to be more radical than the causes it claims to fear and protect us against? I’m all for the right to bear arms. Our founding fathers thought it was an important safeguard against government intrusion beyond all reasonable levels. But the right to bear high-powered, or automatic firing rifles and the like—C’mon NRA—get real. I know, “even paranoids have real enemies,” and “guns don’t kill people, people using guns do.” But there has to be a limit on these kinds of gun sales, on the gun shows that promote them … and on the clever ways that gun laws are circumvented to change single shot guns into automatic-fire killing devices. Too much of anything is still too much. It’s time to rein in the NRA (and this from a Conservative Republican).

---US DROPS TEXTILE TARIFFS; IMPORTS FLOOD IN; TARIFFS ARE QUIETLY RESTORED.
I was talking with a colleague who is now COO of a company that supplies the global textile industry. He reported that while tariffs on textiles from China were dropped amidst much fanfare in January, there was a veritable avalanche of imports shortly thereafter. It was so severe that many of the tariffs were reinstated in short order. It seems that there is a huge amount of capacity just waiting to supply whatever is wanted—reinforcing my latest study/writing project on “Latent Global Overcapacity.“

One example: the self-proclaimed sock capital of the US is Fort Payne, AL, which produces over 700 million pairs of socks annually, with US workers making $10/hr. In fact, Datang, China produces NINE BILLION pairs of socks each year, with Chinese workers making 70cents/hour. Thanks to quotas, Fort Payne is protected—for now. BUT, you cannot “hold back the tide” forever. Eventually “water will seek its level” and demand will find the best value provider. Americans need to face that reality and deal with it. Walls, dikes and tariffs will only buy time before reality—and disaster—sets in. Americans have proven to be very resilient in the past, but only if they understand the real situation, not the nonsense purveyed by media “ex-spurts” like Lou Dobbs.

---THE COACH SAYS IT SO WELL
From Tennessee Lady Vols Coach Pat Summitt—who is now the winningest college basketball coach ever (men or women) and one of my most admired people, speaking at the UT-Martin college commencement.

“I would encourage you to set high goals. A lot of people don’t because along with that comes the responsibility of reaching those goals.”

Pat’s goal is always to win a National Championship—but so far her teams have only won SIX. She still trails John Wooden whose teams won 10. She’s still trying.

“When you grow up on a dairy farm, cows don’t take a day off, so we never had a day off. But within that environment, I learned that you can outwork people. So when you get your job and go to work, don’t let anyone outwork you.”

Pat’s teams are always the hardest working team you’ll see. She tolerates nothing less. But, she always puts personal relationships first.

“As a coach of 31 years, there’s not a piece of hardware that we’ve won that means as much as any one individual that I’ve had a chance to coach and teach and become friends with. Cherish your friendships.”

Finally, she saved the best for last.

“There is a winner inside each of you. When you find your passion—just like my passion is coaching—don’t ever let go of it. … You are in control of your life. Some people focus on getting the best life has to give. I challenge you, each of you, to give life your very best.”

Amen, Pat, those are words to live by.

Best, John

---FROM THE FRONT LINES—a must see site—click on the link below
Last week I sent a written commentary.
This one is words and pictures and is even more powerful.
http://www.wtv-zone.com/Mary/THISWILLMAKEYOUPROUD.HTML,

THE ENTERPRISE--Sad Issues & Big Issues

THE ENTERPRISE

-----A SAD IRONY
The year was 1991. I was President of Huffy Bicycles and was visiting China to assess the strength of our emerging competition. While I was there, I saw a hilltop that dominated the nearby landscape. Atop that hill was a huge , impressive array of new buildings that were the Shenzhen China Bike Company's (CBC) new plant, (just outside the wall around Shenzhen city, where labor was cheaper and more plentiful). It was believed that CBC would be the most fearsome Chinese competitor of all. Note: It is the company that ultimately "crushed" Schwinn! How ironic that late last year Huffy, the reason I was in China , filed Ch. 11 and will be owned by Chinese debtors, AND very recently, it was announced that Shenzhen China Bicycle Company is facing bankruptcy as well. 

I'm not sure what to conclude from this except that the bike industry seems to be a good place to be "from”--because it seems that no one in it is making much money. It is suffering from a lifestyle-change driven loss of salience and a rampant case of retailer-driven commoditization. Unfortunately, this is a fate that is not unique to the bike industry. Beware.

-----CAN'T FIND THE WORDS?
Dismayed? Appalled? Disgusted? Sad? I'm trying to find the right word to describe what seems to be happening to our country. The media creates celebrities out of poor misguided and/or grief stricken people (Cindy Sheehan, Beth Holloway and Terry Schiavo's family). The news coverage blows these events out of all proportion to their relative importance to the country, and makes these everyday people into larger than life figures. With our sadness for their plight, we have very mixed emotions about what they say and do, and how it turns into a sad and misguided debacle. Meanwhile the American public is fatigued over Iraq as the media pumps out only the bad news day after day--and none of the progress. If you can find someone who is or has been over there ask them about how different the reality is from what is being reported. Does anyone else think there is something wrong with these pictures? Our soldiers over there sure do.

-----BIG ISSUES OF THE DAY
That said, there are other things plaguing our country right now. Fortunately the US economy is chugging along in spite of record oil prices and gas prices that make even the strong wince in pain at a $40+ fill-up. It is starting to pinch! Consumers will slow down their spending--there is only so much disposable income to spend. Inflation will rear its head too. Commodity costs have risen and oil prices show no signs of abating. Most companies have raised prices (some of them several times) in the past year. Those increases are hitting the consumer level just as gas prices take a bite out of their disposable income. These factors will be a serious "speed bump" for the economy, but probably not derail it from its growth track...at least not this year.

The two more problems are both rooted in human nature and the fiercely competitive global environment we are now living in. 

-----The UN Oil-for-Food Debacle .
Enough has been written about the Oil-for-Food scandal's flagrantly illegal and illicit schemes, the bribery, skimming of huge "profits" and abuse of the trust of the organization I now refer to as the "Useless Nations." Kofi Annan and many others in the UN bear the blame for the Oil-for-Food scandal. Their collaborators were such people as Saddam Hussein and our staunch non-ally, the French (with some help from the Russians). These criminals need to be punished, not retired with their ill-gotten gains. If they are not, what point is there in having laws and consequences? But then, what point is there to the United (whoops, Useless) Nations. It has lost its way and outlived much of its usefulness. President Bush's recess appointment of John Bolton may have been a last gasp attempt by the US to find someone with enough guts to force the UN to seek some return to credibility and usefulness. We'll see.

-----The 9/11 Commission's "Able Danger" Cover-up
The larger issue, which is surfacing in spite of the mainstream media's desperate attempt to ignore it, is the "Able Danger" cover-up. I thought hard about a few of the more liberal readers I have left, and what they might think about this. The legacy of the Clinton, Janet Reno, et. al. regime just gets more and more evident. "If it isn't favorable, bury it." Why did the 9/11 commission ignore this, then lie about it? More importantly, why was this critical information suppressed by the government agencies in power at the time--the Clinton Administration's people? Here is a government fiasco that may have been a direct contributor to the death of thousands of Americans on 9/11. It also caused the grief of many loved ones, the shock of a nation under attack and the loss of billions of dollars of value in country and our economy. 

It is now clear that the 9/11 Commission WAS BRIEFED--on two occasions--about the findings of the Pentagon Intelligence unit known as "Able Danger". It had located and identified Mohammed Atta and two more of the terrorists that later hijacked planes on 9/11 and tried to report them to the FBI to be picked up and detained--or deported--for good reasons. It is entirely possible that this could have led to actions that would have disrupted the entire 9/11 attack. But Able Danger's efforts to alert the FBI were blocked by "government lawyers" whose identities and affiliations are conveniently unavailable.

I will resist the urge to go on further here, but here's the link to Gary Halbert's newsletter in which he covers it very well. Please go see it.
http://www.investorsinsight.com/forecasts_va_print.aspx?EditionID=175

THE BIGGEST ISSUE
-----Can America Compete? Will Americans Compete?
This final topic is one that will appear in future editions of THE ENTERPRISE. Geoffrey Colvin wrote a captivating, if disturbing article in the July 25, 2005 issue of FORTUNE, entitled, "America Isn't Ready." The questions he posed and the points he made go to the heart of the matter. Everything we read or hear is about China or India or the "outsourcing" of America. 

But if America is so bad, why is the Foreign Direct investment (FDI) in the US up 25% over the prior year at $120 Billion? What do those investors see that we are missing (or the mass media is missing)? Europe is still, by far, the largest source of FDI, but emerging/developing countries' share doubled in the past year and is now at 13% of the total. Where's it going? Telcom, Heavy industry, Food Processing and Generic RX Drug manufacturing are four of the largest places. Do they see something more clearly than we do?

But back to Colvin's questions and my topic. He stated "America Isn't Ready." He's right, but there is ,much more to it. His subtitle was [Here's What To Do About It]. I am a fan of his writing and his intellect, but his "solutions"--what to do about it--were the distinctly weaker part of the article. I want to dwell on some questions he posed, and add my own question.

The headline question is not whether "America Can Compete" although that is what most seem to ask. Colvin contends it might better be stated as "Can Americans Compete?" This is a still more relevant way to ask it--one asks the ultimate headline question.  

"WILL Americans Compete?--Do Americans have the desire, the will, the passion and the perseverance to compete?"   

In my not-so-humble opinion, it is not just a matter of IF can we do it; it's a matter of whether we, in our comfortable, affluent and largely apathetic America lifestyle have the WILL to compete. We used to. But the question is, do we still have it, and at a sustainable level? I agree with Geoffrey Colvin. As a country, we are far from ready to compete. But if we want to get ready, can we? Will we? And will we persevere until we win?

As most managers and leaders know, "where there's a will, there's a way." BUT do we--Americans--have the will and the desire to compete against the 3 billion ambitious, hungry Chinese and Indians (a large number of which are increasingly well-educated)? That's a big subject to tackle...so stay tuned. We'll chip away at it.

Best, John

PS: For those who want a dose of reality from the "front lines", there is a lengthy, first hand report from Afghanistan attached below. It is not fiction, and it "blows away" all of the big media's mass-marketed, sensationalized hype about what our men and women on the ground over there are doing, how they feel about it, and the risks they take so we can freely exchange these kinds of emails. May God bless and watch over them.

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FROM THE FRONT LINES:
From [name deleted] via The Special Ops Assn and a "Warrior" named [name deleted].

---- "We sleep soundly in our beds because rough men stand ready in the night to visit violence to those who would do us harm" ....George Orwell

Sent: Friday, August 12, 2005 8:44 PM
Subject: Deaths of the Navy SEALS in the Afghan mountains in June
Final Update… Hello every one, I am heading home soon. Here is my final update.

Let me start by telling you that I am in excellent health and in good spirits. I apologize for not keeping you informed these last few months but our operational tempo was too high and our operational security did not allow me to share with you what missions we were conducting. When I return home I hope to sit down and write about our spring offensive here. However I will share with you that my team in Farah captured Mullah Sultan who was a mid level Taliban leader and a target that we had been searching for several months. He is still being interrogated in Afghanistan but should be making the long journey to GITMO (providing it is still open) very soon. I will be home in a couple of weeks and plan to have a party around Labor Day weekend so please mark you calendars because I would love to see you there.

This update will be extremely short but I do want to close it by telling you some insight about the SEAL Team and Night Stalker tragedy that occurred a few weeks ago. By now you have heard a lot about what happen but I really want share how significant that event was to the soldiers on the ground here and to explain in my opinion why I feel it is important that all Americans continue the fight for freedom.

Before I explain what happen to the SEALs, I want to thank you all for your prayers, emails, care packages, yard work and all the things that you did for me in my family while I have been deployed. The support from my friends and neighbors has been incredible and humbling. Your support has helped me to endure this incredibly long year and to concentrate on what I was doing here with minimum worrying about Pam and "A". Thank you all from the bottom of my heart.

The Naval Special Forces (NAVSOF) team that was involved in the operation in Kunar Province had been traveling throughout Afghanistan conducting apprehend or kill missions against Al Qaeda and Taliban operatives. They had worked with us for two weeks, three weeks before the events on June 28. While working with our teams, they attempted to take out a high value Taliban target and missed him by hours. This operation was conducted in the Zerico Valley, which has been one of our hot spots. We provided the outer ring security for the SEALs with Afghan National Army soldiers and ETTs while the SEALs conducted the compound assault. We missed the big target but did get some mid level guys so the mission was not a total bust. The NAVSOF guys are the best of the best, not cocky simply professionals in every way, we call them operators.

On June 28 a four man SEAL reconnaissance team was trying to locate Taliban in the dense mountainous and forested area of the Kunar Province of Afghanistan. They were trying to identify routes that the bad guys use to enter from Pakistan. The targeting information would be used to direct U.S. and Afghan forces who would interdict and destroy those enemy forces.

The SEALs were spotted and engaged by a large force of Taliban some where between 25-50 insurgents. The Taliban who are still alive and fighting in Afghanistan are very good combatants. Unlike Iraq Arabs, they are not suicidal and they use good small unit tactics. The bad guys used Rocket Propel Grenades (RPGs), mortars and small arms to attack the SEALs. The team set up a 360-degree defense and called in Hornet Nest (troops in contact) back to their operational base. The command and control headquarters for U.S. Forces in Afghanistan moved a Predator unmanned drone over the battle location. The SEALs were located by the predator by their locator beacon and the inferred camera system of the drone.

The headquarters could see that the TEAM was encircled by bad guys and that the enemy was too close to the SEALs to use Air force close air support. A weather front was rapidly coming into the area and the SEAL Commander a Lieutenant Commander ask permission to launch his quick reaction force to go rescue his men.

The commander of TF 160th (the Night Stalkers) agreed to fly the mission. The Night Stalkers are the Army's Special Operations air wing. They specialize in high-risk insertion and extraction at night. It was not nightfall yet and the command hesitated because sending the special operation birds into the area in the light was very risky. The Generals look at the screen that was giving a live feed of the fire fight, they saw that the SEALs were surrounded, they did not see a way for them to escape, a weather front was coming, it was dusk but not dark yet and time for the trapped men was running out.

Leadership requires having the guts to make a decision, based on analysis and forethought. You must totally recognize the risk and be ready to accept the results. The general in charge made the right call, he had to try to rescue the operators, we as American soldiers cannot leave our people on the battlefield, every Airman, Marine, Sailor, Coast Guardsmen and Soldier has to know that when you go down range and things go wrong keep fighting and help will come.

The decision was made, two CH 47 Pave Hawk helicopters headed toward the SEALs. The CH 47 is a large aircraft but it is fast for a helicopter, able to fly at 170 knots. The aircraft entered the mountains flying at 50 feet above the ground with 16 men aboard. All four SEALs were still alive and fighting an unbelievable battle. As the lead bird approached the landing zone they started to slow down and the air speed dropped under 100 Knots, another group of Taliban, not engaged in the initial firefight but in the area saw the aircraft and open fire with small arms and RPG's. The lead aircraft was hit by a RPG but the aviator kept the bird in the air. They were in the mountains; therefore there was no clear place to land. He flew for about a mile and saw a ledge that he could try to put the bird down on. The CH 47 landed on the ledge hard, they almost made it. The hard landing and the palpitations of the rotors were too much for the small landing zone and weak ground. It was their time, the aircraft rolled off of the ledge on to its side and down the mountain into the valley below. 8 SEALs and 8 aviators from TF 160th were gone.

The other aircraft could not land in the hot landing zone and were called back. There was not enough time to try to secure the area because the weather front moved in and nightfall fell. The SEALs kept fighting and used the cover of darkness to crawl out of the initial enemy lines. The SEALs were engaged again and had a running gun battle for over two hours. The SEAL that survived was knocked unconscious by a mortar round and found that he was alone when he woke up. Two of his team members were dead close by, and the last team member was missing.

They had dropped all none essential gear during their escape therefore all contact with them was lost. Eventually the surviving SEAL ran into a villager who took him to his house. That shepherd, at great risk to himself, protected the SEAL until he could be moved six hours away to the nearest U.S. forces that the villager was aware of.

The loss of the operators really broke the hearts of all us deployed down range. Losing men of that quality and dedication is bad enough one at a time, but to lose so many, so fast was hard to comprehend. But after the shock had worn off and we got the true story of what happen we took solace.

You see every one did what they supposed to on that day, the SEAL recon team kept fighting, the SEAL commander went to get his shipmates, the Night Stalkers volunteered to fly in to harms way to rescue their brothers in arms and the generals had the guts to make the right decision. That is all you can ask for out here, it is what it is and everything else is God's will.

I have had the pleasure of serving with some unbelievable men and woman in the last year. Folks from 18 to 59 (yes 59). It has been an honor. I really appreciated America before I came to Afghanistan but this experience has truly opened my eyes to how bless my life has been.

Folks I know this is a cliché, but freedom is not free. 

Embrace it, respect it and don't ever stop fighting for it. These people over here are far from free, but we have given them a taste of it. We need to ensure that we don't give up the fight because to do so would be to dishonor all the men and woman who have died to ensure we remain free. Freedom is contagious, with it, out goes tyranny. The evil people that attacked America on September 11th were not free because if they were, they would not have cared what another's person's beliefs are they would simply accept them for what they are and moved on.

Please continue to pray for all the soldiers in Afghanistan and Iraq, don't stop praying for me because I am still here, and your prayers have been working so keep it up, I don't to mess up a good thing.

THE ENTERPRISE--Washington: Closed for the Summer

THE ENTERPRISE

A series of important issues (no answers--yet.)

---Beware of government statistics.
Often "Wall Street" responds to a recently released piece of government statistics. First of all, Wall Street can't react--it a street--but seriously, it isn't a singular force. It is more like a bee hive that reacts as an entity made up of thousands of bees that feel threatened. Well, I have big news for all those buzzing bees (and stock analysts and investors). Most government statistics are sufficiently flawed at the first release that they are "adjusted" in the next few weeks. Sometimes the adjustment is up. Sometimes it is down. And sometimes it is simply a manipulation to please whatever constituents that agency is beholden to. Few people are skilled enough or insightful enough to understand the basis for many government stats, and even fewer are savvy enough to guess what the adjustments will be. Be very careful in reacting to such numbers.

---Housing is slowing.
Having just thrown a rock at government issued statistics, I will make a prediction. Housing is starting to slow down, and it is not a glitch in the statistics. Housing inventory is up--in some places way up. A few of the lesser indices are showing the same thing, and the more courageous, less politically motivated columnists, analysts and bloggers are all singing the same tune. It isn't a crash or a bursting of the bubble--at least not yet--but it is the beginning of a gradual slowing. Watch it carefully, because its effects will be far-reaching.

---Our love-hate affair with China
A couple of years ago I wrote a novel--THE SILENCE--about a Chinese conspiracy and cyber-terrorism. It is still available, and while I was a rookie novelist, the story is as valid today as it was in 2002 when it was published. (If you go looking for a copy, buy the hard cover version. It has all the typos corrected. Amazon.com and Barnes and Noble (bn.com) still are carrying it. A lot of what I wrote into the novel was nearly factual, but with the fuzzy boundary between fact and fiction. A recent Wall Street Journal article, "The FBI Sees Big Threat From Chinese Spies" discussed the growing concern with Chinese spies. I chose them as the "villains" in my novel because they simply were the most logical country to attempt to dominate the world--by whatever means necessary. But that was fiction, and now I want to pose a real series of conundrums:

The US is in an intense love-hate (& fear) relationship with China as a country.
-It can't do without China as a source for low cost, competitive products.
-It hates the trade imbalance that creates.
-The US fears the day when China doesn't choose to buy huge quantities of its government bonds.
-But it also rues the day when China can claim equal global power and influence.
-The US loves the speed with which China can both create new products.
-It also covets access to China's enormous purchasing power.
-Finally, the US fears that China's military might is growing far too fast.
But what do you so with a huge, immensely strong adolescent that might suspect his own strength, but still lacks the coordination to use it and the wisdom to take advantage of it?

We Americans just can't make up our minds about how to feel about China. CNN commentator Lou Dobbs vilifies the Chinese (and all outsourcing suppliers) nightly in a misguided vendetta to hold back the tidal wave of global competition. This country has competed well and thrived on its competitiveness for a century or more. The question is whether it still can? Or whether the 21st Century will belong to the Chinese, as the 20th Century belonged to the USA.

I don't pretend to know the answer. As surely as I know Lou Dobbs has it wrong, I know that few of us "has it right." We need to understand much more deeply if the Chinese are evolving toward being a responsible global citizen or a dominant adversary. That means taking China seriously, but neither under- nor over-reacting to its posturing. I will be working diligently to learn more and understand more. I suggest you might want to also. The media is full of analysis--some thoughtful and some shallow and irrelevant. Read, think, discuss, be selective and learn. Why? Because our future depends on it.

---Washington DC: "closed for the summer."
FINALLY, a closing observation made to a colleague that I decided is worth saying here:
"It's time that some of the hand grenade throwers (mostly in the media, but also in both political parties) either come up with some practical proposals... or just shut up! Now is the time the American people need strong leadership, not a bunch of naysayers--and frankly, we need a bit more "balanced" leadership than we are getting, too. It's bad enough that the American people have tired of being afraid of terrorism, and are willing to abandon the fight against terrorism. (I know--the "fight" is misguided, say many, but I don't care as much about that as the fact that we must continue to "fight" even if the effort needs to be refocused.).

There are a raft of serious problems in our country that need fixing, and none of them are getting fixed and Washington is "closed for the summer." Between myopia and obstinacy in the White House and reactionary obstructionism in Congress...the ship of state is stalled in the middle of what will be increasingly stormy seas. Will some of you elected/appointed officials in Washington--Congress AND the White House--please wake the hell up and come back from vacation to work together on something besides getting re-elected?"

Best, John

THE ENTERPRISE--Political Incorrectness?

THE ENTERPRISE
While the economy is relatively healthy, let's take a moment to gain some perspective on why, and then examine a case where our a part of our country is focused on the wrong thnings. It is a relatively special case but one that is symptomatic of a larger problem.

--Housing is carrying the economic recovery
The US housing boom continues to fuel the country's recovery. Since 2001, 2 of every 5 jobs created in the US hve been somehow related to housing, and many of them are "more immune" to import competition. Building materials are mostly home "grown" and produced--plywood, particle board, bricks, concrete, wall board, roof shingles, etc. So are the "big pieces" that go into a house: carpet/floor coverings, major appliances, kitchen cabinets/counter tops and HVAC equipment. Then there are the transactions--real estate commissions, builders fees, labor in framing and finishing, mortgage financing, etc. Let's hope the housing bubble doesn't burst--or even deflate rapidly. A lot of the new jobs in our economy are riding on it.

--Political Correctness gone crazy--"NCAA Bans Indian names for college teams"
CNN's Robert Novak was asked off the air after using a "profanity" (Bull----) that wouldn't even raise an eyebrow on a Chris Rock comedy routine on a different cable channel. Sure, it was poor "decorum", but what's a conservative Republican doing even appearing on the Democratic News Channel? Of course he'll be attacked at every turn. BUT--this isn't the issue I'm upset about.

I just watched Stephen Spielberg's mini-series INTO THE WEST. It was kind of choppy from episode to episode as families moved through generations with different actors portraying the same people. But the story was relatively authentic, and the imagery and cinematography (especially in High Definition) was spectacular. The series portrayed the march West of the settlers--the "white men" --and ultimately of the telegraph and transcontinental railroad.

INTO THE WEST documents with (sometimes too) graphic images the brutalities inflicted on the American Indians (whoops, that's not PC--Native Americans) by the US Army.. There is no doubt that the massacres of men, women and children at places like Wounded Knee were inexcusable then and look even more so now when they are graphically reenacted . You found yourself pulling for the Indians against the arrogantly cruel and cowardly Gen. George Custer.

--Massive mistreatment
The US government, used the Army as a "blunt instrument," pushed the Native Americans all over the American West,out of their native lands and into newer, inhospitable lands; settlers mindlessly killed the giant herds of buffalo that were an essential part of the Indians' ecosystem; the US government leaders of the time made and then broke one "treaty" or peace agreement after another and finally, tried to Americanize a few of the Indians in hopes of infiltrating the remaining tribes. Nothing worked but gross brutality.

The atrocities against Native Americans were ghastly--of that there is no doubt. The reservations on which they live now are like horizontal tenements, and the government's guilt over past misdeeds is being paid off with welfare... and Casino licenses. Nothing can turn back the clock or undo the misdeeds of another generation of people whose lives, motives and circumstances are not even comprehensible to those of us living in our comfortable modern era--and especially not to the Politically Correct bureaucrats. This leads us to another "politically correct" misdeed--by the NCAA.

--NCAA--A candidate for a class-action suit?
The NCAA should be a candidate for an anti-trust suit already for its actions in restraint of trade, and for its heavy-handed enforcement of a Byzantine set of regulations over college athletics. Its latest vendetta is to to purge the remaining Indian--whoops, Native American--names from college sports teams. The stated fear is that such names now (after years of use) insult the poor, oppressed native Americans. It matters little that the tribes like the Seminoles, Indians with a heritage in what is now the state of Florida, (and others, too) have proudly endorsed the use of their tribal name(s) as a tribute to tribal history-- by Florida State University.

But the NCAA knows best....and even when it doesn't--it controls the purse strings by being able to ban participation in lucrative NCAA (TV) events if member schools do not comply with its mandates. Well, in the now famous words of Bob Novak, "that's just BULL----!"

--The Apathetic American
When will the apathetic American majority ever rise up and overthrow the growing number of power plays by narrow special interests and power-drunk organizations? Some day, this majority, an apathetic group of under-informed or misinformed Americans might get smart. They might tire of having their rights taken away by small but vocal minorities, politically correct special interest groups, and dictatorial agencies( like the NCAA). When they do--if they ever do--then America will go back to being the democracy our forefathers envisioned.

Until then rampant Political Correctness, the noisiest special interest groups and organizations like the NCAA will rule the roost. These groups are the ones with bleeding hearts over GITMO and the treatment of terrorists and murderers. (For those who like fiction, read Vince Flynn's novel MEMORIAL DAY. His main protagonist, Mitch Rapp has the right idea!)

If we want to worry about "Indians," we might consider worrying about the ones from India. Indian immigrants (mostly legal I assume) have the highest per capital earnings of any immigrant group. The ones who are still back there in India told Tom Friedman ("It's A Flat World") how they plan to "eat our lunch." Now those "Indians" might represent a legitimate, competitive threat to our comfortable way of life. Not a threat like having a college team being named wrong. Hey, NCAA --aren't there more important issues than changing logos on stadiums and athletic uniforms for our colleges to spend time and money on--like education? I think so.

Best, John