Telling It Like It Is

THE ENTERPRISE--MERRY CHRISTMAS TO ALL

THE ENTERPRISE--MERRY CHRISTMAS TO ALL

WHAT A WONDERFUL LIFE & WHAT A WONDERFUL COUNTRY
After all the turmoil, the partisan political wrangling, the terrorist threats, and all the rest, stop and think about this:
 "You can judge the quality of a country by comparing how many people want to get in to how many want to leave." 
I think the United States of America would fare very well on that score. 

WE HAVE MUCH TO BE THANKFUL FOR
First of course are our families and loved ones.  Next, our brave people in the armed forces who are willing to lay down their lives for our country and our freedoms. Those amazing freedoms. 

• There is our freedom of religious worship (at the church of our choice) 
• There is freedom of speech, (even if what we say isn't very nice) 
• Freedom to own and use property
• Freedom to make a living, earn money and keep it (well, some of it)
• Freedom to congregate (for whatever reason we choose) 
• Freedom to move freely about the country, (and assuming we are in good standing to leave it and come back in as we please.) 
• Freedom to vote (secretly) for our leaders (whether we like them or not afterward) 
• Freedom to write books and articles (and publish them at will) 
• Freedom to buy books and periodicals (or to check them out of our libraries at no charge) 
• Freedom to enjoy our beautiful national parks, and state parks and local, city/county parks. 
• Freedom to attend concerts and sporting events and many other public gatherings... 

Do I need to go on?

WE ARE GOING THROUGH A TOUGH PATCH
A lot of Americans are unemployed and struggling, and many more are "underemployed" and also struggling.  Our youth, especially the less educated/skilled ones are suffering the most from the inability to get jobs. We probably can't really "afford" the unemployment benefits we are extending, and they may not encourage people to look for jobs like they should, but we are a humane nation, and a caring people who know that even when it is not affordable, it is the thing to do.  We need to create more jobs.  We know how to do that--but it takes time and it is hard and unproductive to rush things. 

We can learn by observing nature on the farm:  we can prepare the field and till the soil and plow the field and plant the seeds, but we can't rush the harvest.  The plants will grow at their own rate--and so will our country's jobs and economy.  Trying to rush the crop usually spoils it, so let's hope the lessons of nature don't go unheeded.

WE ARE A PEOPLE WHO MOSTLY BELIEVE IN GOD--IN ONE FORM OR ANOTHER
Here we are a few days before Christmas, and whether you believe in God and Jesus--or any of the other religious choices--this is a time for us to all recall what happened a little over 2000 years ago.  It was an occasion of a birth--the start of something new, and someone important, who changed the world by His will and His positive nature.  So let's all resolve to resist the negatives, and find the positives; to not dwell on the problems but the opportunities; and not "fight" about the solutions, but unite to find them.  After all, in this year of promise and peril of obstacles and opportunities, we are still the UNITED States of America.  Some of our oldest phrases ring truer than ever:  "United we stand, divided we fail," and "In God we trust."

WE HAVE BEEN IN TOUGHER SITUATIONS AND COME OUT OF THEM
And we will again.  By the will of God, and by the will of Americans, and because we have an indomitable spirit, that no nation on earth can match, we will have a Happy New Year--and many more to come.  Let's pause to thank God for all we have, and commit to work smarter and harder and better to get our country back to working again.  It's time to "Change How America Works" for the better, and to work toward that goal,  is my "New Year's resolution."

God Bless You All, and God Bless America--"Land of the free and home of the brave." 
And Merry Christmas to all, and to all a good night.

Best, JOHN

THE ENTERPRISE--AMERICA'S DE-INDUSTRIALIZATION & THE WORLD'S AMAZING EVOLUTION?

 THE ENTERPRISE--AMERICA'S DE-INDUSTRIALIZATION & THE WORLD'S AMAZING EVOLUTION?

A FASCINATING LOOK AT HOW THE WORLD HAS CHANGED OVER 200 YEARS--IN HEALTH AND WEALTH
http://www.flixxy.com/200-countries-200-years-4-minutes.htm

WHY EUROPE IS IN TROUBLE (it's not funny!)-- THE USA IS HEADING THAT WAY, UNLESS WE CHANGE OUR LEADERSHIP'S SPENDING HABITS
http://www.abc.net.au/news/video/2010/05/20/2905304.htm

THE FOLLOWING HAS BEEN CIRCULATING AROUND THE INTERNET FOR SEVERAL WEEKS
I have unsuccessfully tried to find where and with whom it originated.  It is written in two parts.  The first part chronicles the change and evolution of our way of life and the familiar things we have known.  That part is not so troubling as it is sobering. Change is constant.  Life evolves and we adapt.  Or we don't--which is a bad decision.  Many people long for the "good old days," but those days are gone forever.  Some would say they weren't so good either.  They were simpler.  But so was life a century or more ago--but few would argue that our predecessors had it so good either.   

THE DEINDUSTRIALIZATION OF AMERICA--TRAGEDY OR OPPORTUNITY?
The second part of the piece is much more troubling.  it describes the symptoms of America's "deindustrialization."  The problem is that while largely true, it is also irreversible.  The agrarian age passed by, and the numerous farmers who fed themselves and rural America decades ago are now largely gone too.  The industrial age came and now it too is moving on.  The jobs that created the golden age of America have been taken by people in faraway countries who can and will do them for far less in compensation--and the global economy is a hyper-competitive marketplace.  The new age of America is clearly based on knowledge and information, and on being what I would call "systems integrators."

AMERICA OF THE 21ST CENTURY MUST ALSO EVOLVE AND ADAPT TO THE NEW WORLD REALITIES
The question is not "WILL America evolve and adapt?  It is "does America have the WILL to evolve and adapt?  Or have we created a country of lazy dependency, unrealistic youthful expectations and governments populated by people that have forgotten that government was created to work for the people and not vice versa.  The America "of the people, for the people and by the people," must be recreated by a new group of leaders.  We need leaders who practice common sense and fiscal responsibility.  We need leaders who realize the extreme positions in any matter are a great risk.  We need leaders who listen--and hear--what the vast majority of Americans are saying.  Help us, serve us, but do not oppress us or burden us with a bureaucratic monstrosity that is unmanageable, unaffordable and dysfunctional.

AS WE APPROACH THIS HOLIDAY SEASON, I AM INCLUDING THIS "ANONYMOUS" AUTHOR'S PERSPECTIVE TO MAKE US ALL THINK
What kind of America do we want?  Are we willing to make the sacrifices to return it to a solid financial footing?  Will we find and elect leaders who want to serve us and help us and not oppress and control us?  When we find those, will be support them--and hold them accountable?  We may not ever be able to return to the good old days, but we can create good new days.  However, it will be neither simple nor easy.  But it is not our only choice--but it is our best choice.  Do we have the WILL to choose correctly?  Do YOU?

NOTE:  BELOW IT, I HAVE POSTED SOME INFORMATION THAT MIGHT MAKE THE PREDICTIONS LESS FRIGHTENING
Change is a constant.  So let's not panic.  More than a century ago someone predicted that if something wasn't done, there were so many horses being used that our nation would be knee deep in manure.  Some readers may think this prediction is coming true, but not the way it was (literally) stated.


 CHANGES ARE COMING ----


Whether these changes are good or bad depends in part on how we adapt to them. But, ready or not, here they come.

 1. The Post Office. Get ready to imagine a world without the post office. They are so deeply in financial trouble that there is probably no way to sustain it long term. Email, Fed Ex, and UPS have just about wiped out the minimum revenue needed to keep the post office alive. Most of your mail every day is junk mail and bills.

 2. The Check.  Britain is already laying the groundwork to do away with checks by 2018. It costs the financial system billions of dollars a year to process checks. Plastic cards and online transactions will lead to the eventual demise of the check. This plays right into the death of the post office. If you never paid your bills by mail and never received them by mail, the post office would absolutely go out of business.


  3. The Newspaper. The younger generation simply doesn't read the newspaper. They certainly don't subscribe to a daily delivered print edition. That may go the way of the milkman and the laundry man. As for reading the paper online, get ready to pay for it. The rise in mobile Internet devices and e-readers has caused all the newspaper and magazine publishers to form an alliance. They have met with Apple, Amazon, and the major cell phone companies to develop a model for paid subscription services.


 4. The Book. You say you will never give up the physical book that you hold in your hand and turn the literal pages. I said the same thing about downloading music from iTunes. I wanted my hard copy CD. But I quickly changed my mind when I discovered that I could get albums for half the price without ever leaving home to get the latest music. The same thing will happen with books. You can browse a bookstore online and even read a preview chapter before you buy. And the price is less than half that of a real book. And think of the convenience! Once you start flicking your fingers on the screen instead of the book, you find that you are lost in the story, can't wait to see what happens next, and you forget that you're holding a gadget instead of a book.


 5. The Land Line Telephone. Unless you have a large family and make a lot of local calls, you don't need it anymore. Most people keep it simply because they've always had it. But you are paying double charges for that extra service. All the cell phone companies will let you call customers using the same cell provider for no charge against your minutes


 6. Music. This is one of the saddest parts of the change story. The music industry is dying a slow death. Not just because of illegal downloading. It's the lack of innovative new music being given a chance to get to the people who would like to hear it. Greed and corruption is the problem. The record labels and the radio conglomerates are simply self-destructing. Over 40% of the music purchased today is "catalog items," meaning traditional music that the public is familiar with. Older established artists. This is also true on the live concert circuit. To explore this fascinating and disturbing topic further, check out the book, "Appetite for Self-Destruction" by Steve Knopper, and the video documentary, "Before the Music Dies."


 7. Television. Revenues to the networks are down dramatically. Not just because of the economy. People are watching TV and movies streamed from their computers. And they're playing games and doing lots of other things that take up the time that used to be spent watching TV. Prime time shows have degenerated down to lower than the lowest common denominator. Cable rates are skyrocketing and commercials run about every 4 minutes and 30 seconds. I say good riddance to most of it. It's time for the cable companies to be put out of our misery. Let the people choose what they want to watch online and through Netflix.


 8. The "Things" That You Own. Many of the very possessions that we used to own are still in our lives, but we may not actually own them in the future. They may simply reside in "the cloud." Today your computer has a hard drive and you store your pictures, music, movies, and documents. Your software is on a CD or DVD, and you can always re-install it if need be. But all of that is changing. Apple, Microsoft, and Google are all finishing up their latest "cloud services." That means that when you turn on a computer, the Internet will be built into the operating system. So, Windows, Google, and the Mac OS will be tied straight into the Internet. If you click an icon, it will open something in the Internet cloud. If you save something, it will be saved to the cloud. And you may pay a monthly subscription fee to the cloud provider. In this virtual world, you can access your music or your books, or your whatever from any laptop or handheld device. That's the good news. But, will you actually own any of this "stuff" or will it all be able to disappear at any moment in a big "Poof?" Will most of the things in our lives be disposable and whimsical? It makes you want to run to the closet and pull out that photo album, grab a book from the shelf, or open up a CD case and pull out the insert.

9. Privacy. If there ever was a concept that we can look back on nostalgically, it would be privacy. That's gone. It's been gone for a long time anyway. There are cameras on the street, in most of the buildings, and even built into your computer and cell phone. But you can be sure that 24/7, "They" know who you are and where you are, right down to the GPS coordinates, and the Google Street View. If you buy something, your habit is put into a zillion profiles, and your ads will change to reflect those habits. And "They" will try to get you to buy something else. Again and again.

All we will have that can't be changed are Memories.

 19 Facts About The Deindustrialization Of America That Will Blow Your Mind

The United States is rapidly becoming the very first "post-industrial" nation on the globe.  All great economic empires eventually become fat and lazy and squander the great wealth that their forefathers have left them, but the pace at which America is accomplishing this is absolutely amazing.  It was America that was at the forefront of the industrial revolution.  It was America that showed the world how to mass produce everything from automobiles to televisions to airplanes.  It was the great American manufacturing base that crushed Germany and Japan in World War II. 

But now we are witnessing the deindustrialization of America.  Tens of thousands of factories have left the United States in the past decade alone. Millions upon millions of manufacturing jobs have been lost in the same time period.  The United States has become a nation that consumes everything in sight and yet produces increasingly little. Do you know what our biggest export is today?  Waste paper.  Yes, trash is the number one thing that we ship out to the rest of the world as we voraciously blow our money on whatever the rest of the world wants to sell to us.

 The United States has become bloated and spoiled and our economy is now just a shadow of what it once was.  Once upon a time America could literally out produce the rest of the world combined.  Today that is no longer true, but Americans sure do consume more than anyone else in the world. If the deindustrialization of America continues at this current pace, what possible kind of a future are we going to be leaving to our children?

Any great nation throughout history has been great at making things.  So if the United States continues to allow its manufacturing base to erode at a staggering pace how in the world can the U.S. continue to consider itself to be a great nation?  We have created the biggest debt bubble in the history of the world in an effort to maintain a very high standard of living, but the current state of affairs is not anywhere close to sustainable. Every single month America goes into more debt and every single month America gets poorer. So what happens when the debt bubble pops?

The deindustrialization of the United States should be a top concern for every man, woman and child in the country.  But sadly, most Americans do not have any idea what is going on around them.
For people like that, take this article and print it out and hand it to them.  Perhaps what they will read below will shock them badly enough to awaken them from their slumber.   

The following are 19 facts about the deindustrialization of America that will blow your mind....
#1 The United States has lost approximately 42,400 factories since 2001.  About 75 percent of those factories employed over 500 people when they were still in operation.
#2 Dell Inc., one of America ’s largest manufacturers of computers, has announced plans to dramatically expand its operations in China with an investment of over $100 billion over the next decade.
#3 Dell has announced that it will be closing its last large U.S. manufacturing facility in Winston-Salem, North Carolina in November.  Approximately 900 jobs will be lost.
#4 In 2008, 1.2 billion cell phones were sold worldwide.  So how many of them were manufactured inside the United States?  Zero.
#5 According to a new study conducted by the Economic Policy Institute, if the U.S. trade deficit with China continues to increase at its current rate, the U.S. economy will lose over half a million jobs this year alone.
#6 As of the end of July, the U.S. trade deficit with China had risen 18 percent compared to the same time period a year ago.
#7 The United States has lost a total of about 5.5 million manufacturing jobs since October 2000.
#8 According to Tax Notes, between 1999 and 2008 employment at the foreign affiliates of U.S. parent companies increased an astounding 30 percent to 10.1 million. During that exact same time period, U.S. employment at American multinational corporations declined 8 percent to 21.1 million.
#9 In 1959, manufacturing represented 28 percent of U.S. economic output.  In 2008, it represented 11.5 percent.
#10 Ford Motor Company recently announced the closure of a factory that produces the Ford Ranger in St. Paul, Minnesota. Approximately 750 good paying middle class jobs are going to be lost because making Ford Rangers in Minnesota does not fit in with Ford's new "global" manufacturing strategy.
#11 As of the end of 2009, less than 12 million Americans worked in manufacturing.  The last time less than 12 million Americans were employed in manufacturing was in 1941.
#12 In the United States today, consumption accounts for 70 percent of GDP. Of this 70 percent, over half is spent on services.
#13 The United States has lost a whopping 32 percent of its manufacturing jobs since the year 2000.
#14 In 2001, the United States ranked fourth in the world in per capita broadband Internet use.  Today it ranks 15th.
#15 Manufacturing employment in the U.S. computer industry is actually lower in 2010 than it was in 1975.
#16 Printed circuit boards are used in tens of thousands of different products.   Asia now produces 84 percent of them worldwide.
#17 The United States spends approximately $3.90 on Chinese goods for every $1 that the Chinese spend on goods from the United States.
#18 One prominent economist is projecting that the Chinese economy will be three times larger than the U.S. economy by the year 2040.
#19 The U.S. Census Bureau says that 43.6 million Americans are now living in poverty and according to them that is the highest number of poor Americans in the 51 years that records have been kept.

So how many tens of thousands more factories do we need to lose before we do something about it? How many millions more Americans are going to become unemployed before we all admit that we have a very, very serious problem on our hands? How many more trillions of dollars are going to leave the country before we realize that we are losing wealth at a pace that is killing our economy?

How many once great manufacturing cities are going to become rotting war zones like Detroit before we understand that we are committing national economic suicide? The deindustrialization of America is a national crisis.  It needs to be treated like one. America is in deep, deep trouble. It is time for all of us to wake up........

HERE ARE SOME THOUGHTS TO CONSIDER AFTER READING THAT APOCALYPTIC  ARTICLE

I agree that it is time to wake up.  but think about history and the progress of America.

THE AGRARIAN ERA

Congress created the (farm) extension system nearly a century ago to address exclusively rural, agricultural issues. At that time, more than 50 percent of the U.S. population lived in rural areas, and 30 percent of the workforce was engaged in farming. Extension's engagement with rural America helped make possible the American agricultural revolution, which dramatically increased farm productivity:

• In 1945, it took up to 14 labor-hours to produce 100 bushels of corn on 2 acres of land.
• By 1987, it took just under 3 labor-hours to produce that same 100 bushels of corn on just over 1 acre.
• In 2002, that same 100 bushels of corn were produced on less than 1 acre.

That increase in productivity has allowed fewer farmers to produce more food.  Fewer than 2 percent of Americans farm for a living today, and only 17 percent of Americans now live in rural areas.

THE INDUSTRIAL ERA
Then  the industrial era came on strong, accelerated by two World Wars and the growth large American cities and the growth in use of the automobile and other mechanized transportation, during which factories proliferated, but now that era's activity is in decline, finding its "steady state" at some level. 

The United States is still the world's largest manufacturer, with a 2007 industrial output of US$2.69 trillion. In 2008, its manufacturing output was greater than that of the manufacturing output of China, India, and Brazil combined, despite manufacturing being a very small portion of the entire US economy as compared to most other countries.  The U.S. produces approximately 21% of the world's manufacturing output, a number which has remained unchanged for the last 40 years. The job loss during this continual volume growth is explained by record breaking productivity gains. In addition, growth in telecommunications, pharmaceuticals, aircraft, heavy machinery and other industries along with declines in low end, low skill industries such as clothing, toys, and other simple manufacturing have resulted in U.S. jobs being more highly skilled and better paying. 

With China's growth rate, at some point, this too could change.   A total of 3.2 million – one in six U.S. factory jobs – have disappeared since the start of 2000, many of them to China and other lower cost countries. The manufacturing sector of the U.S. economy has experienced substantial job losses over the past several years. In January 2004, the number of such jobs stood at 14.3 million, down by 3.0 million jobs, or 17.5 percent, since July 2000 and about 5.2 million since the historical peak in 1979. Employment in manufacturing was its lowest since July 1950.  This somewhat reflects, but in a different way, what happened to farming.

What is the next era?  It is already upon us:  The Knowledge and Information Era, and the growth service businesses--or perhaps we are destined to become the world's best and biggest "systems integrators?"

Enough for now.  The point is that there are always transitions taking place and change is scary...but necessary.

What is concerning is that our nation's governmental leaders either don't get it at all--or have it figured out all wrong--which is why we need to replace many of them.  Europe is proving that the model preferred by Barack Obama and the Liberal members of our government simply doesn't work.  At least half of Europe is failing--badly.  We must "reshape" the American dream to fit the new world order and a global marketplace--and then do what we Americans do best:  evolve, adapt, take advantage of our inherent freedoms and talents and emerge on top--again, and again.

Happy Holidays, JOHN

 



__________________________________

MY NEW NOVEL IS AVAILABLE NOW!

THE  CHINESE CONSPIRACY

 http://www.thechineseconspiracy.com
BUY IT AT THESE PLACES:
KINDLE EBOOK: http://www.amazon.com/The-Chinese-Conspiracy-ebook/dp/B00472O93G/ref=sr_1_22?s=books&ie=UTF8&qid=1288189116&sr=1-22
NOOK EBOOK:  http://search.barnesandnoble.com/The-Chinese-Conspiracy/John-Mariotti/e/9781450257916/?itm=1&USRI=The+chinese+Conspiracy

PAPERBACK: http://www.amazon.com/Chinese-Conspiracy-John-Mariotti/dp/1450257895/ref=sr_1_24?s=books&ie=UTF8&qid=1288189301&sr=1-24
OR:  http://search.barnesandnoble.com/The-Chinese-Conspiracy/John-Mariotti/e/9781450257893/?itm=2&USRI=The+chinese+Conspiracy
OR:  http://www.iuniverse.com/Bookstore/BookDetail.aspx?BookId=SKU-000182005

HARDCOVER:http://www.amazon.com/Chinese-Conspiracy-John-Mariotti/dp/1450257909/ref=sr_1_25?s=books&ie=UTF8&qid=1288189301&sr=1-25
OR:  http://search.barnesandnoble.com/The-Chinese-Conspiracy/John-Mariotti/e/9781450257909/?itm=3&USRI=The+chinese+Conspiracy
OR:  http://www.iuniverse.com/Bookstore/BookDetail.aspx?BookId=SKU-000182006

For ITunes/iPad users, go here to download Stanza and use it  << http://www.booksonboard.com/index.php?F=iPhone_ebooks>>
John L. Mariotti, President & CEO, The Enterprise Group, Phone 614-840-0959  http://www.mariotti.net   http://mariotti.blogs.com/my_weblog/

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THE ENTERPRISE--CYBER-THREATS COME IN MANY FORMS

THANK YOU TO THOSE WHO ARE BUYING THE CHINESE CONSPIRACY

TO THOSE WHO ARE USING IT AS A GIFT! ---ORDER RIGHT AWAY TO GET IT BY CHRISTMAS!
If you have read the book and are willing to post a review on amazon.com, I'd also appreciate that.  Here is the link:  http://www.amazon.com/Chinese-Conspiracy-John-Mariotti/dp/1450257895/ref=sr_1_24?s=books&ie=UTF8&qid=1288189301&sr=1-24  Just scroll down a little bit to see where to post reviews.  There are also places for readers "ratings" on Barnes & Noble (www.bn.com) and Borders (www.borders.com).  To go directly to the page for the book, you can use the links at the end of THE ENTERPRISE.

If you send me a copy of your review, I am also collecting them on the book's web page http://www.thechineseconspiracy.com



IN ANSWER TO THOSE WHO ASKED OR WONDERED---THE BOOK IS NOT LIKELY IN MOST "TRADITIONAL BOOKSTORES"
Traditional bookstores only want to carry books they can send back if unsold.  After a matter of weeks or a few months, some 40% of all books shipped to bookstores are returned to publishers--or a much lower price is negotiated--and they are retained and sold at deep discounts.  Space on bookstore shelves at the front is like space on Supermarket shelves.  It "costs money," and not a small amount.  Thus I decided to do this book as a Print-on-Demand book, which only has inventory created when someone asks for it.  Also the growth in e-books and on-line book sales have reduced sales in traditional bookstores.

If you want to get one from a bookstore, ask them to get it for you.  They should be able to do that, since Ingram, the largest book distributor should be "carrying" the book, and both Borders and Barned & Noble's on-line stores offer all formats of the book for sale.  Please let me know the outcome if you do this.

FOR THOSE WHO MIGHT NOT REALIZE THAT THE CHINESE CONSPIRACY  IS NOT JUST A FICTIONAL BOOK
Some people who I've told about the book or have read it ask me, "isn't this all exaggerated?"  My answer is that the villains careful plan to use all these known technologies in this particular combination is my idea--but it is not a new idea.  Our US military has done this countless times.  So have other countries.  The point of writing the book was partly to entertain those who like to read "thrillers" of this type. The other reason was to send a "wake-up call" to our government officials.  We are both served by and victims of our amazing technological advances.  Read on to learn more.

These are real briefings, released not long ago:
US-China Economic and Security Review Commission provided the US Congress with a detailed overview of what's been happening in China...
    For about 18 minutes on April 8, 2010, China Telecom advertised erroneous network traffic routes that instructed US and other foreign Internet traffic to travel through Chinese servers. Other servers around the world quickly adopted these paths, routing all traffic to about 15 percent of the Internet’s destinations through servers located in China. This incident affected traffic to and from US government (‘‘.gov’’) and military (‘‘.mil’’) sites, including those for the Senate, the army, the navy, the marine corps, the air force, the office of secretary of Defense, the National Aeronautics and Space Administration, the Department of Commerce, the National Oceanic and Atmospheric Administration, and many others. Certain commercial websites were also affected, such as those for Dell, Yahoo!, Microsoft, and IBM.
    Although the Commission has no way to determine what, if anything, Chinese telecommunications firms did to the hijacked data, incidents of this nature could have a number of serious implications. This level of access could enable surveillance of specific users or sites. It could disrupt a data transaction and prevent a user from establishing a connection with a site. It could even allow a diversion of data to somewhere that the user did not intend (for example, to a ‘‘spoofed’’ site). Arbor Networks Chief Security Officer Danny McPherson has explained that the volume of affected data here could have been intended to conceal one targeted attack.

WIKI-LEAKS IS BASED ON A MODIFIED FORM OF CYBER-ATTACK--"CYBER-SNOOPING"
Instead of shutting things down, it invaded systems--notably the US government's SIPRNET--a theoretically secure network.  Then it spread what it stole across the Internet for all to see.  How is this any different from the attack that stole the plans for the USAF's F-35 Joint Strike Fighter-- before it ever flew?   It isn't, is it?  If hackers and cyber-criminals can hack into the Army's systems and access US Army battlefield plans (they did, in 2008!), then what is secure any more?  Wonder how secure things are?  NOT very secure, it seems.

SIPRNET & NIPRNET & HOW THE "AIR GAP" MIGHT HAVE BEEN COMPROMISED?
The US government uses two different computer networks:  NIPRNET which is analogous to the public Internet we all know and use, and SIPRNET which was created to be a Secure network, and totally separated from NIPRNET by an "air gap."  That means no physical connection between the two exists.  Because SIPRNET was designed for higher security access, it was not protected with such a high security system. Unfortunately, it seems that someone "bridged the air gap" via the use of an external memory device (USB thumb drive?) which was "contaminated" with programs/content/material from NIPRNET and then plugged into SIPRNET, which then "contaminated" it in such a way that material could be copied and then re-transmitted.  This is one of the most likely scenarios of how Wiki-Leaks obtained its classified information (with the help of a US military person, allegedly a Private First Class who had access).

NOW CYBER-FIGHTS ARE DEVELOPING AROUND WIKI-LEAKS
I won't cover all the news, since it has been widely disseminated.  However, here is a thumbnail of how it developed:
    From Yahoo! Technology News: LONDON – Hackers rushed to the defense of WikiLeaks on Wednesday, launching attacks on MasterCard, Visa, Swedish prosecutors, a Swiss bank and others who have acted against the site and its jailed founder Julian Assange.  Internet "hacktivists" operating under the label "Operation Payback" claimed responsibility in a Twitter message for causing severe technological problems at the website for MasterCard, which pulled the plug on its relationship with WikiLeaks a day ago.

MasterCard acknowledged "a service disruption" involving its Secure Code system for verifying online payments, but spokesman James Issokson said consumers could still use their credit cards for secure transactions. Later Wednesday, Visa's website was inaccessible.  The online attacks are part of a wave of support for WikiLeaks that is sweeping the Internet. Twitter was choked with messages of solidarity for the group, while the site's Facebook page hit 1 million fans.

All the people who say that callling Wiki-Leaks a "Cyber-invastion" are learning now from its allies just what it was:  A Cyber-invasion helped by a single person (that PFC.) which found previously private information and spread it all over the Internet.  Whether the invasion came over the Wi-Fi, Cable, whatever form, the fact that it was perpetrated through "Cyber-space" is just another form of warning.  How many warnings do we need?  I originally wrote the story of THE CHINESE CONSPIRACY as a "wake-up call" for both government and corporate leaders to do something, instead of just sitting there waiting to be attacked.

IS YOUR NEW CREDIT CARD VULNERABLE TO "WALK-BY SCANNERS?"  HOW CAN YOU TELL?  IS THIS FOR REAL?
This news video shows how cards with embedded RFID (Radio Frequency Information Detection) Chips are vulnerable to being "hacked" by a scanner, who merely needs to get within a couple of inches of where you have the card--wallet or purse.  In a crowded setting, this is pretty simple.  Watch the video all the way through and it will show you the little symbol on your card (three curved lines sort of like computers use to show Wi-Fi signal strength) that identifies it as containing an RFID chip.  You might want to contact your credit card issuer and ask for one that doesn't contain this "feature" that leaves you vulnerable to Cyber-thiefs.
http://www.wreg.com/videobeta/?watchId=8ba6f8fc-90a2-4711-90ea-1884ec348310

GROWTH IN CYBER-MONDAY ALSO ADDS GROWTH IN CYBER-RISKS
The scanner risk above is far from the only risk of security in on-line business.  Hackers are increasingly stealing passwords and other sensitive data on-line using methods such as phishing, social engineering, and outright hacking methods.  Perhaps many do not know that China has had the equivalent of Hacking Universities since 2003!  Thus it should be no surprise that it is one of the leaders.  India is more worried than the USA since it depends even more heavily on Internet based business models--including its huge office services outsourcing  business.  The more business is done on the Internet, the more opportunities there are for weak security to exist and the more chances for thieves to gain access to consumers' identity information and steal their credit card information.  The incredible explosion of smart phones on the network increases this risk exponentially.

IT'S A WHOLE NEW WORLD WE ARE LIVING IN, AND THAT MEANS NEW OPPORTUNITIES AND NEW RISKS
Many of us yearn for the "good old days," but I fear those are in the past.  The best we can do is retain the values and principles we held so dear in those days and pass them on to our children and grandchildren (even if it's by texting them!).  Next week, watch for more reflection on this new era and what has happened to the USA--and what might happen in the future.

Best, JOHN

PS:  To those who have asked, it will probably give the economy a shot in the arm...BUT...the current "deal" between the President and Congress to extend the Bush tax rates for two years in return for another extension of unemployment (why should anybody look for work?) and a pork laden package of tax cuts, and wasteful deficit spending may very well be the best deal the GOP & the White House could each get (which is why so many liberal Dems are mad).

BUT  it increases an already insane deficit still further.  Keeping the tax rates the same is a "growth generating" move, and growth increases revenue from taxes.  Being forced to do it for only two years and add another huge chunk to the deficit is a bad idea.  But then the current liberal leaning Congress and White House have cornered the market on bad deals.  We need to "clean house" (and I mean that pun literally and figuratively both) in 2012.  Then we need to make sure the folks we elect recall why we elected them.  Cut spending.  Cut big government.  Cut regulations and let businesses "breathe."  Don't increase taxes unless or until it is a last resort and then do it very, very carefully.  Increase some, reduce others.  Provide incentives for the right behavior—growth with responsibility.
 

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John L. Mariotti, President & CEO, The Enterprise Group, Phone 614-840-0959  http://www.mariotti.net  http://mariotti.blogs.com/my_weblog/

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THE ENTERPRISE--AMERICAN SPIRIT IS RISING AGAIN...BUT

THE ENTERPRISE--AMERICAN SPIRIT IS RISING AGAIN...BUT

BLACK FRIDAY AND CYBER MONDAY WERE STRONG, BUT...
Remember when I predicted a BLIP and a DIP for the 4Q 2010, and the 1Q 2011.  Well, here is the start of the BLIP--upward, at levels close to 2007 (pre-crash).  The slowing in spending in the 2Q and 3Q is now allowing consumers to spend for the holidays.  But come New Year's Day, the charge card bills will start arriving and the DIP will come as jobless Americans (still 15-20% unemployed or underemployed) will once again tighten their belts.  They will be hoping that the new group of representatives they elected will do the same.  If they don't, their terms will be short indeed.  If they do, America can start on the long, tough journey back from the Democrats and Obama-messes.  It will be neither fast nor easy/painless.  It must be done. A nation cannot live that far beyond its means for too long without an even worse crisis down the road.

FUD--FEAR, UNCERTAINTY AND DOUBT STILL REMAIN AS OBSTACLES
The recent report on job creation was disappointing, once again falling short of the number of jobs needed just to offset new entrants to the work force.  That is no kind of recovery at all.  In an earlier edition of THE ENTERPRISE, I predicted a BLIP, followed by a DIP.  The BLIP, an upward move in spending and retail activity is happening right now.  Consumers who hunkered down in 2Q & 3Q 2010 are now spending for the holidays--but carefully--and ever alert for the best deals and hottest promotions.  That means retailers need to watch the MIX they are selling carefully.  Volume is likely to be up, but profits may not be up nearly as much.  Then comes Jan. and 1Q 2011, and the credit card bills roll in.  That will create the DIP in spending.  How far down the DIP will go is uncertain, but one thing that can be confirmed:  Fear, Uncertainty and Doubt are still nagging at consumers and companies, and dragging down hiring.  Joblessness is far from over, and the housing crisis is far from over too.  These are still drags on any recovery.

THE CREATION OF POSITIVE RESULTS BY THE EXPECTATION OF NEGATIVE OUTCOMES
I have some news for those who have not given a lot of thought to the budget and deficit problems.  Fixing the budget deficit will make the economy worse before it gets better.  Why?  Because to reduce government spending means cutting jobs or cutting pay for those who remain employed--or both.  Either way, the number of unemployed government workers will go up--you know, those are the ones who are paid 20% more than common folks working in the private sector where competition regulates how much can be paid--not some elected know-nothing who was funded by the Union representing the government workers.  The Unions will scream bloody murder--but they deserve to be damaged--these same Unions are at the core of many American problems.   

DO THE RIGHT THING, AND THE RIGHT OUTCOME WILL RESULT
So, when we do the right thing and cut government spending, there will be a lag in time before people can put their money to work and the economy starts growing again.  Assuming the outgoing jerks in DC don't let the Bush tax levels expire, and that the new group of largely GOPers who now control the House hold their ground and demand at least 2-3 years of those same tax levels, THEN, AND ONLY THEN can the economy get going.  The dip caused by unemployed government workers will be erased as private sector growth kicks in.  Of course these folks are unlikely to find jobs that pay so much for doing so little in the private sectors, but, as an old college roommate always said, "What's fair is fair." 

SOME THING THAT WILL MAKE YOU GRIN
    This is a great story! The radio station America FM was doing one of its "Is Anyone Listening?" bits this morning. The first question was, "Ever have a celebrity come up with the 'Do you know who I am?' routine?"
    A woman called in and said that a few years a go, while visiting her cattle rancher uncle in Billings, MT, she had occasion to go to dinner at a restaurant that does not take reservations. The wait was about 45 minutes; many ranchers and their wives were waiting.
    Ted Turner and his ex-wife Jane Fonda came in the restaurant and wanted a table. The hostess informed them that they'd have to wait 45 minutes. Jane Fonda asked the hostess, "Do you know who I am?" The hostess answered, "Yes, but you'll have to wait 45 minutes."
    Then Jane asked if the manager was in. When the manager came out, he asked, "May I help you?" "Do you know who we are?" both Ted and Jane asked. "Yes, but these folks have been waiting, and I can't put you ahead of them."
    Then Ted asked to speak to the owner. The owner came out, and Jane again asked, "Do you know who I am?" The owner answered, "Yes, I do. Do you know who I am? I am the owner of this restaurant and I am a Vietnam Veteran. Not only will you not get a table ahead of my friends and neighbors who have been waiting here, but you also will not be eating in my restaurant tonight or any other night. Good bye."
    Only in America. Is this a great country, or what?  To all who received this, it is a true story and the name of the steak house is: Sir Scott's Oasis Steakhouse, 204 W. Main, Manhattan , MT 59741 , (406) 284-6929  If you ever get there, give this fellow a sharp salute, buy a steak, and tip the waitress.  Hats off to this restaurant !!

THE CHRISTMAS SPIRIT IS ALIVE: WHAT IF 650 VOCALISTS SHOWED UP AT MACY'S PHILLY STORE AND AT NOON--BEGAN SINGING HANDEL'S MESSIAH?
They did!  Watch and listen. Sort of reminds you of the line, "...America, one country, under God, indivisible...
http://www.philly.com/philly/video/106492678.html


WHY THE RECOVERY IS STILL AN ILLUSION, AND THE MISGUIDED GOVERNMENTAL EFFORTS ARE A DELUSION!

Breaking News Alert—The New York Times
Fri, December 03, 2010 -- 8:37 AM ET
U.S. Economy Adds 39,000 Jobs in November, Fewer Than Expected; Jobless Rate Up to 9.8%
The United States economy added only 39,000 jobs in November, a blow to expectations that a recovery was gathering momentum, the Labor Department said Friday. The unemployment rate rose to 9.8 percent, from 9.6 percent. Included in the latest report were slight upward revisions from previous months. The agency now says that the economy
added 172,000 jobs in October, instead of the 151,000 jobs previously reported.  November's gain was far from enough to help the large ranks of the unemployed. More than 15 million people remain out of work.

HOW TO FIX THE GROWTH ENGINE--"GIVE IT FUEL" ( MONEY, VIA LOWER TAXES) & "RELEASE THE BRAKES" (STOP THE STIFLING REGULATIONS)

I can't explain it any better than this article.  Maybe someone will read this in the White House or in Congress.


There's No Escaping Hauser's Law

Tax revenues as a share of GDP have averaged just under 19%, whether tax rates are cut or raised. Better to cut rates and get 19% of a larger pie.

By W. KURT HAUSER (from the Wall Street Journal, Nov. 26, 2010 p. A19)

         Even amoebas learn by trial and error, but some economists and politicians do not. The Obama administration's budget projections claim that raising taxes on the top 2% of taxpayers, those individuals earning more than $200,000 and couples earning $250,000 or more, will increase revenues to the U.S. Treasury.  The empirical evidence suggests otherwise. None of the personal income tax or capital gains tax increases enacted in the post-World War II period has raised the projected tax revenues.

         Over the past six decades, tax revenues as a percentage of GDP have averaged just under 19% regardless of the top marginal personal income tax rate. The top marginal rate has been as high as 92% (1952-53) and as low as 28% (1988-90). This observation was first reported in an op-ed I wrote for this newspaper in March 1993. A wit later dubbed this "Hauser's Law."

         Over this period there have been more than 30 major changes in the tax code including personal income tax rates, corporate tax rates, capital gains taxes, dividend taxes, investment tax credits, depreciation schedules, Social Security taxes, and the number of tax brackets among others. Yet during this period, federal government tax collections as a share of GDP have moved within a narrow band of just under 19% of GDP.

         Why? Higher taxes discourage the "animal spirits" of entrepreneurship. When tax rates are raised, taxpayers are encouraged to shift, hide and underreport income. Taxpayers divert their effort from pro growth productive investments to seeking tax shelters, tax havens and tax-exempt investments. This behavior tends to dampen economic growth and job creation. Lower taxes increase the incentives to work, produce, save and invest, thereby encouraging capital formation and jobs. Taxpayers have less incentive to shelter and shift income.

         On average, GDP has grown at a faster pace in the several quarters after taxes are lowered than the several quarters before the tax reductions. In the six quarters prior to the May 2003 Bush tax cuts, GDP grew at an average annual quarterly rate of 1.8%. In the six quarters following the tax cuts, GDP grew at an average annual quarterly rate of 3.8%. Yet taxes as a share of GDP have remained within a relatively narrow range as a percent of GDP in the entire post-World War II period.

         This is explained once the relationship between taxes and GDP growth is understood. Under a tax increase, the denominator, GDP, will rise less than forecast, while the numerator, tax revenues, will advance less than anticipated. Therefore the quotient, the percentage of GDP collected in taxes, will remain the same. Nineteen percent of a larger GDP is preferable to 19% of a smaller GDP.

         The target of the Obama tax hike is the top 2% of taxpayers, but the burden of the tax is likely to fall on the remaining 98%. The top 2% of income earners do not live in a vacuum. Our economy and society are interwoven. Employees and employers, providers and users, consumers and savers and investors are all interdependent. The wealthy have the highest propensity to save and invest. The wealthy also run the lion's share of small businesses. Most small business owners pay taxes at the personal income tax rate. Small businesses have created two-thirds of all new jobs during the past four decades and virtually all of the net new jobs from the early 1980s through the end of 2007, the beginning of the past recession.

         In other words, the Obama tax increases are targeted at those who are largely responsible for capital formation. Capital formation is the lifeblood for job creation. As jobs are created, more people pay income, Social Security and Medicare taxes. As the economy grows, corporate income tax receipts grow. Rising corporate profits provide an underpinning to the stock market, so capital gain and dividend tax collections increase. A pro-growth, low marginal personal tax rate stimulates capital formation and GDP, which triggers a higher level of tax receipts for the other sources of government revenue.

         It is generally accepted that if one taxes something, one gets less of it and if something is subsidized one gets more of it. The Obama administration is also proposing an increase in taxes on capital itself in the form of higher capital gains and dividend taxes. The historical record is clear on this as well. In 1987 the capital gains tax rate was raised to 28% from 20%. Capital gains realizations as a percent of GDP fell to 3% in 1987 from about 8% of GDP in 1986 and continued to fall to below 2% over the next several years.

         Conversely, the capital gains tax rate was cut in 1997, to 20% from 28% and, at the time, the forecasts were for lower revenues over the ensuing two years. In fact, tax revenues were about $84 billion above forecast and above the level collected at the higher and earlier rate. Similarly, the capital gains tax rate was cut in 2003 to 15% from 20%. The lower rate produced a higher level of revenue than in 2002 and twice the forecasted revenue in 2005.

         The Obama administration and members of Congress should study the record on how the economy reacts to changes in the tax code. The president's economic team has launched a three-pronged attack on capital: They are attacking the income group that is the most responsible for capital formation and jobs in the private sector, and then attacking the investment returns on capital formation in the form of dividends and capital gains. The out-year projections on revenues from these tax increases will prove to be phantom.

    —Mr. Hauser is chairman emeritus of the Hoover Institution at Stanford University and chairman of Wentworth, Hauser & Violich, a San Francisco investment management firm. He is the author of "Taxation and Economic Performance" (Hoover Press, 1996). 

Copyright 2010 Dow Jones & Company, Inc.
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THAT'S THE BEST EXPLANATION I HAVE SEEN OF HOW TO CREATE GROWTH
Now let's hope the "Lame Ducks" don't do too much harm before they leave Washington.  John Boehner is right.  Their antics are "Chicken-crap!"  But it is only a preview of the nonsense that we will endure for the next 23 months until we can throw out another bunch of them.  I just hope the American people who came out for this election will expand their influence and get more to come out next time, because Obama will have every minority, welfare case and "community organizer" working to put him back in the White House.  Meanwhile, let's hope the new members of Congress we elected keep their focus on why so many Americans voted them in.  It's time to get America back on track, one step at a time.

Best, John

---------------------------------------------
 PS: SOMEONE FINALLY FOUND THE RIGHT JOB FOR BARNEY FRANK--A TSA PAT-DOWN SPECIALIST




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MY NEW NOVEL IS AVAILABLE NOW!   ---  THE  CHINESE CONSPIRACY


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John L. Mariotti, President & CEO, The Enterprise Group, Phone 614-840-0959  http://www.mariotti.net   http://mariotti.blogs.com/my_weblog/

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