Israel's "Barracuda"?

The recent terrorist events in Mumbai had a profound effect on the Israelis. Now that the details are revealed, the story of a young Rabbi and his wife that ran a local Jewish center is tragic. They volunteered to run a student center called the Chabad House in Mumbai which provided assistance to Jewish tourists and worked to help the poor in India. This young couple was in their late 20's and had a toddler son who thanks to an Indian nanny was pulled aside and rescued from being executed. His young parents were not so lucky. An autopsy revealed that the Rabbi and his wife were violently tortured before they were executed with a gun shot to the head. Four other Jews were killed the same way during that siege. The coroner that performed the autopsy said that he had never seen violence like that against a human being before, and never wants to even think about it again.

Jewish communities around the world are in shock and angry. And the Jews do not forget. The Mossad (Israel's CIA) is acknowledged to be the most competent intelligence agency in the world and anyone connected with this terrorist attack should consider updating their Last Will and Testament.

As a global political addict, and someone who has spent time in Israel, and for years conducted business with the Israelis, I have always been interested in the politics of the Middle East, especially since in many ways it is the root of Islamic extremism. Many conflicts involving radical Muslims lead back to Israel and the Palestinians. Starting with Jimmy Carter every President has cajoled, negotiated, shook hands, visited the holy land, signed agreements, and 30 years later here we are with zero progress - the Palestinians still hate the Israelis and vice verse.

Iran is now the major threat to Israel. They fund the terrorist groups Hamas in Palestine and Hezbollah in Lebanon and have openly advocated the extinction of Israel. With Iran now close to the development of a nuclear bomb I am sure the Israelis feel their backs are against the wall. Their unofficial national slogan is, "There will NEVER be another holocaust" so I am sure they feel they must make a decision on the Iran issue soon. This week we read about Israel preparing for a strike against Iran's nuclear facilities even without the USA. That is probably political bluster aimed at Iran and the incoming President Obama, but I believe this could be the next major world conflict and Obama's first real test as President. The truth be known, many Mideast countries are probably quietly in favor of an Iranian attack by Israel or the USA because they are afraid of Iran also.

Recently Ehud Olmert the Prime Minister of Israel has resigned while being investigated for corruption and his party elected Tzipi Livni as their leader and the new Prime Minister. Most Americans do not even know who Tzipi Livni is. She is not a career politician, but a former Mossad agent and she is a tough lady. Although she is called a "liberal", in Israel that has a much different meaning. Her mission is peace in a country that has been at war for 60 years. She has been the lead negotiator with Palestinians in the most recent peace negotiations and appears to be the first Israeli leader in many years willing to seriously compromise and do what is required to insure Palestine finally becomes an independent state.

But Israeli politics are different from ours, and she had to put together a majority coalition of other political parties in order to take charge, and she could not do that. Many "hard liners" are opposed to any concessions with the Palestinians, so new elections must be held in February, 2009. As a result, Obama does not even know who he will be dealing with as the Prime Minister of Israel. It appears to be a tossup as to who will be elected to the top spot in Israel next year. It could Livni and if so, we could see real progress towards peace in the Middle East for the first time in a half century. She will be fighting a "hard line" network in Israel and a "hard line" culture with Muslims who do not believe women are capable of anything.

Like Sarah Palin, Tzipi Livni could be a leader of the future. Who knows, maybe the women of this world can straighten things out - we men certainly do not have a very good track record.

Back to work

I have had writers block the past few weeks. Perhaps it's the holidays or a post election depression, but after a great Thanksgiving with my family it's time to get back to work.

Here are some random thoughts:

One of the liberal platforms in this country is gun control: "We need to keep those wacko militias in Montana from acquiring AK 47's". After the attacks in Mumbai how far do you think gun control legislation will go in our next Congressional session? I don't carry a gun, but we do have guns. You have to wonder if law abiding citizens in India were allowed to carry guns how much those ten terrorists would have accomplished. Here were ten terrorists that kept a city of 18 million frozen for almost three days. If just a few of those hundreds of innocent people had access to a gun what might have been different? It just continues to prove that guns don't kill people - criminals kill people. Do you think those terrorists would have followed gun control rules? Another comment on this thought - why is it politically "incorrect" to refer to Islam as a violent religion?

The day after Thanksgiving we all read about the poor Wall Mart "greeter" who was trampled to death because people wanted to be the first to get a plasma TV on sale. It was tragic and his family will be wealthy for life, since there is already a civil lawsuit underway. But what good is being wealthy if one of your loved ones is killed in such a violent way. This tells us more about our culture than anything else - greed and material possessions. Question: If you were charging into that store to get a great deal on a plasma TV and you stepped on a body on the ground, would you have stopped? It would probably have been impossible for you to stop, but would you have fought to do so? Those shoppers did not.

At Thanksgiving my kids asked for my advice on the economy and what to do with their 401Ks. With all of my experience as a chief executive, businessman, and small business owner I had to tell them, "I have no idea". "Bailout" was the Merriam Webster word of the year, but the process has become ridiculous; billions, even trillions to bailout individuals, companies, and state governments that were mismanaged (some criminally), and our Congress has no clue so they throw money at the problem. Throughout the past few months of this economic disaster a majority of the American public has been in favor of just letting the pain happen and if companies were mismanaged, let them go bankrupt. But our Congress knows better and has been issuing money at a rate that cannot be sustained - money the country never had in the first place. I feel sorry for our kids and grand kids and although I am not an economist, look for the possibility of hyper inflation in the future.

So far Obama has moved toward the center with many of his cabinet picks - who knows how he will govern. The economic disaster will probably limit his options with regard to all of his "socialist" intentions. I predict in a few years he will have budget deficit so large that both he and the Congress will have no choice but to raise taxes and cut spending. The future will be very interesting.

As for me, now I'm going to relax with a martini and listen to Christmas Carols - Merry Christmas everyone! It's hard not to feel good during this season.

The "Crossroads"

Yogi Berra, one of our national icons and a "philosopher" in his own right once said: "When you come to a crossroads, take it"

Putting Yogi's humor aside, there is little doubt that this country is at a crossroads and I fear we are taking the wrong road. In a previous blog I predicted that if Obama won the election, voters would eventually say to themselves, "What have we done?" I still predict that will happen.

I recently watched William Ayers being interviewed on "This Morning America" and cannot believe we give people like this a national forum. He had the nerve to say that the organization he founded; the Weather Underground, were not terrorists since they did not "target people". He was personally involved in bombing the Pentagon, the Capital, and New York police headquarters where people were injured. Three of his "associates" did die while preparing a bomb that was to be used against a military base, and he tried to bomb the family home of a judge he did not agree with. He has also been taped stomping on the American flag. And this is a person as a college professor teaches our children and was voted "Citizen of the Year" in Chicago in 1997...unbelievable.

Here is what I mean about the country being at a "crossroads":

- We tolerate individuals like Bill Ayers teaching our children;
- We accept irresponsible behavior and allow the government to bailout individual mortgage holders and financial institutions who made bad decisions;
- We consider "bailing out" major businesses like the auto makers, or state and municipal governments that got themselves into trouble because of poor management, while the small businessman works his 60 hours a week to keep afloat. We do these bailouts with taxpayers money and put our children and grandchildren in debt;
- We propose increasing taxes on hard working entrepreneurs and rich people so we can "spread the wealth" to help out less fortunate people, many of whom will get a free welfare check paid for by the working people of this country;
- We refuse to expand our vast energy resources and as a result have become more and more dependent on foreign countries that hate us. In my opinion one of the reasons for the failure of the automakers is the "controlled" high price of oil by foreign countries which killed US auto sales;
- We decide that in the interests of "humanity" we should allow our borders to be open so the "American dream" is available to everyone, even when the American people pay the bill;

Yes, we are at a crossroads. In addition to the Presidency, the Democrats will have control of the House and possibly a "filibuster proof" Senate. If that happens, Independents, Republicans, and Conservatives will be powerless during the next two years, and maybe longer.

Let's hope we do not get too far down that wrong road before the people of this country realize their mistake.

Let them die

The big three US automakers have already received a $25 billion "bailout" low interest loan from the taxpayers and now they are frantically asking for another $50 billion from us taxpayers. General Motors has announced that without this additional bailout, they will run out of cash by January.

It is estimated that if the three automakers went out of business, it would result in a $200 billion hit to the US economy. In addition, we are told that 2 million American jobs would be lost from the auto companies themselves, and from peripheral businesses (parts suppliers, etc.). I believe those estimates are overstated and the companies are playing a game of "chicken" with the government to get more bailout money.

If I were President, I would tell the CEO's of the auto companies to pack their briefcases, go back to Detroit and solve these problems by themselves; or go bankrupt. If all three US auto companies went out of business it would be a dramatic event in the history of this country, but out of the ashes of their destruction would come a better, stronger auto industry that would be competitive with the rest of the world. Detroit's problems are all of their own making primarily as a result of ridiculous union agreements and lack of long term research on new technologies.

In the past auto companies agreed to employee pension and lifetime health care agreements that even a junior accountant should have known they could never pay for. With the low cost of gasoline, they continued to produce large gas guzzling cars and trucks based on old technology. Then when the price of oil went through the roof their market disappeared.

But the worst agreement the automakers were talked into by the United Auto Workers was the "Jobs Bank Program". To put it simply, this was a worker security guarantee program agreed to in the mid 1980's.This was a plan to guarantee pay and benefits to union members whose jobs fell victim to technological progress, plant closings, or restructuring. So as the rest of the world became more productive through automation and the digital revolution, the US automakers were stuck with these Jobs Bank agreements. As a result, by 2005 there were 12000 auto workers being paid "not to work". And as Jeremiah Wright would say: "Now the chickens have come home to roost".

I recently read a story about one auto worker. He shows up at 7 am every morning at a Ford Motor Company manufacturing plant and signs in. Then his "work day" starts - he works on crossword puzzles, and watches videos. He says it is monotonous, but his pay is $31/hour plus benefits, for no work. And when he reaches retirement age for this "no work" position he will retire with a very generous pension plus health benefits for life. He is one of the 12000 in the Jobs Bank as of 2005; so is it any wonder the automakers are in trouble?

Automakers are trying to renegotiate this Jobs Bank agreement but the damage is done. And if the big three go bankrupt many of those employee pension and lifetime health benefits will be gone. Or maybe the government will give these auto workers a "bailout" too.

Our "morons" in Washington

When the market started going south because of the mortgage crisis our Congress led by the Bush administration jumped in:

- A $300 billion "stimulus" bill which sent a check ( welfare payment) to almost all of us.
- An $85 billion bailout for AIG.
- A $25 billion bailout loan to US auto companies who now want another $50 billion.

And finally, a $700 billion bailout program to save "Wall Street" and "Main Street". More than 60% of Americans were against the bailout bill, but our politicians said "We need it to save the economy". I joined this 60% of Americans and sent letters, emails, made phone calls to our elected politicians urging them to let the free market work and kill the bailout bill. But our politicians knew better; all we received were canned responses and they passed the bill.

So the government made all of these moves to save us from a bad economy and the market crashed even more than anyone expected. The more bailouts, the more the market went down. If you want to put your faith in our politicians to run the economy be my guest. I'll take the free market and let the chips fall where they may.

Sadly the American people made the right call on this stupid bailout, but Washington did not listen. And now Obama and his Democratic Congress are talking about another "stimulus" package...how exciting, another "free" check for all of us...with money we do not have.

As a kid I remember we told each other "moron" jokes. I recall one in particular: "Why did the moron keep hitting himself in the head with a hammer?" Answer: "Because it felt so good when it stopped hurting". The American people just elected an inexperienced but smooth talking "socialist" as President, and they gave more power to a House and Senate that includes most of the same old cronies that have screwed things up so badly. Reminds me of that old joke.

Reflections

This blog may be rambling because my mind is still trying to clear itself after the election. I am very competitive and am a poor loser (even when I compete vicariously through someone else), so here are some random thoughts:

- I believe in this democracy and therefore feel we need to stand behind our new President and give him a chance.

- Obama's first appointment was to make Rahm Emanuel his Chief of Staff. Emanuel is a left wing "tough guy" from the Clinton administration, but also has a reputation for being fiscally conservative so he may be a "buffer" against all of the Democrats proposed spending. He is also a devout Jew whose father fought for the Israeli resistance before the founding of Israel. This appointment by Obama certainly will raise some eyebrows in the Muslim community.

- The stock market in the two days after the election had the largest post-election decline in history, and many experts say the market predicts the future. The market seems to be moving up and down on emotion and the possibility that Obama may raise taxes across the board. Let's hope some of his top economic advisers will convince him that to raise taxes now would be a death blow to the US economy.

- John McCain had his "chance" - how he ever became the Republican candidate still amazes me; I guess Republican voters in the primaries wanted to give him a "lifetime achievement award". He ran the worse campaign I have seen in my lifetime, so let's hope he will fade into the sunset and some young vibrant Conservatives will take the helm and get the ship back on course. No more chances for McCain or his RINO associates "my friends". Ironically, McCain's best speech of the campaign was his concession speech.

- Sarah Palin was attacked viciously during the campaign and now is even being attacked by members of the McCain campaign. Maybe she did stumble a few times during the campaign, and she did not have the depth of experience of a Joe Biden, but had she been running head-to-head against Biden she would have destroyed him. She was thrust into a situation that most of us could never handle. So she will go back to Alaska, continue with her responsibilities as governor and I believe she will have her chance again.

- The "green" movement took a big hit in this election. Almost every green initiative in the country was defeated. Not because people are anti- environment, they are starting to realize we just cannot keep spending money we do not have.

- During the next few months you will see thousands of people lose their jobs because of the failing economy. Watch closely - how many of these lost jobs will be government employees? Very few - and if Obama follows through with all of his "large government" promises, while the productive private sector in this country is cutting jobs the government will probably be hiring.

So in closing, those Conservatives out there do not lose hope. Our movement may be dormant for a while but only to regroup. We need to get rid of the "moderate" dinosaurs in our party and go back to our principles. Conservatism never grows old and it will never die. The Soviet Union tried to kill it, China has tried to kill it, but it remains alive. You cannot kill the basic human desire for individual freedom.

Some decisions are easy

A good friend of mine has a small business employing 30 people. He has resigned himself to the fact that Barack Obama along with a Democratic House and Senate will probably take full control after this election.

Like most businessmen he is already planning for the future and estimates that with the additional taxes and fees the Obama administration promises, he will have to raise his prices 8%. In addition, he believes that he might have to layoff as many as 6 of his employees. He is in a quandary since all of these employees are like "family". I can appreciate his position having had my own small business for many years with as many as 25 employees - they were all like my family.

He could not decide how to choose who he would have to let go, so one day he went out into the parking lot and noticed that 8 of his 30 employees had "Obama" bumper stickers on their cars. Those 8 became his "layoff list".

Sometimes business decisions can be easy.