I think everyone should read the following, it
was
a letter to the editor of one of our small local newspapers from Julia
Brabenec of North Port and I quote:
"This came to my attention and I think it is
something
that everyone ought to read, as it says a great deal about the nonsense
being spread concerning the issue of marriage.
'The Presidential Prayer Team is currently urging
us to: "Pray for the President" as he seeks wisdom on how to legally
codify
the definition of marriage. Pray that it will be according to Biblical
principles.'
Any religious person believes prayer should be
balanced
by action. So here, in support of the Prayer Team's admiral goals, is a
proposed Constitutional Amendment to codify marriage on biblical
principles.
Let us be satisfied with nothing less:
A. Marriage in the United States shall consist of
a union between one man and one or more women.(Gen 29:17-28; II Sam
3:2-5)
B. Marriage shall not impede a man's right to take
concubines, in addition to his wife or wives. (II Sam 5:13, I Kings
11:3;
II Chron 11:21)
C. A marriage shall be considered valid only if
the wife is a virgin. If the wife is not a virgin, she shall be
executed.
(Deut 22:13-21)
D Marriage of a believer and a non believer shall
be forbidden. (Gen 24:3; Num 25:1-9; Ezra 9:12; Neh 10:30)
E. Since marriage is for life, neither this
Constitution
nor the constitution of any state nor any state or federal law, shall
be
construed to permit divorce. (Deut 22:19; Mark 10:9)
F. If a man dies without children, his brother shall
marry the widow. If he refuses to marry his brother's widow or
deliberately
does not give her children, he shall pay a fine of one shoe. (Gen
38:6-10;
Deut 25:5-10)"
You may not like the sarcasm of this letter, but
it is an example of several of my themes. I hope you will reread the
passages.
Doing so helps you retain an updated interpretation.
It is an example of literalness and male chauvinism.
When I first read these passages, at age twelve, I didn't think too
much
about them; however, when I read them again at age nineteen, at the
height
of my sexuality, I found them revolting. When I read them again much
later,
when I understood the context within which the passages were created, I
came to an entirely different conclusion. Learning is recursive.
These passages are not the word of God, they are
the words of the elders coping with a very difficult problem. Remember,
most of these passages are a part of an oral tradition, they were not
written
until nearly a thousand years later.
At that time the tribes of Israel were struggling
for survival and at the same time they were trying to maintain their
identity
as a people. They needed every child that the women under their control
could bear, so the passages are not as male chauvinistic as they
appear.
We can only guess, but at that time I would be
willing
to bet that half of the children didn't reach their first birthday and
that less than a third reached age five. Very few women died during
child
birth, most died from infections following child birth and the men died
in combat, the tribes were almost continually at war, fertile land was
scarce.
It is an example of why you cannot interpret
statements
out
of context, you may need statements from an entirely different source
before
you can understand the statements under consideration or you will miss
the message.
It is an example of the danger of using history
to solve a problem because the first solution, the old one, will
inhibit
other solutions and if you apply an old solution out of context you
will
force the problem to fit the solution, a terrible error because it will
not solve the problem.
It is an example of the disadvantage of restricting
solutions to an ideological frame work, the number of solutions are
limited
and could be zero and again the problem is forced to fit the solution.
It is an example of not defining the problem, you
can't solve a problem if you can't define it.
What is the problem?
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content
Let me begin with a little history. As you know
the
first oil well in the US was drilled in PA, but the oil industry didn't
really begin until after the big strikes in OK and TX and the wide
spread
use of the automobile. Smaller fields were discovered in KA, OH, WY,
and
MI and a large field in Southern CA. After WWII off shore fields were
discovered
in the Gulf and off Southern CA and later the North Slope field in
Alaska
was developed.
The first refineries were built near the oil fields
because transportation was lacking and the refineries were inefficient
and consumed about ten per cent of the oil; therefore, it was cheaper
to
ship the finished product long distances than to ship the oil long
distances
and the finished product a short distance. Even though modern
refineries
are much more efficient the same economics still holds.
The transportation of oil evolved from shipment
in barrels on wagons, on rail box cars, on trucks; to tanker trucks, to
rail tank cars, to boats, to pipelines, and to ocean super tankers
carrying
2 million barrels of oil.
Oil was first shipped in forty gallon wood barrels
by wagons and box cars. The story has it that the buyers were
complaining
that they didn't receive forty gallons because the barrels leaked, so
the
sellers began putting two extra gallons in each wooden barrel so the
buyers
wouldn't complain. The barrel remained at forty two gallons even after
steel barrels replaced the wood barrels.
When I first began tracking crude oil production
and finished product consumption in 1964, the US produced 12.1 million
barrels a day and consumed 13.3 million barrels a day. World oil
consumption
was about 28 million barrels a day. Until the first oil embargo we
never
paid more than $1.25 a barrel for imported crude oil and most of the
time
much less.
US production rose slightly as new fields were
developed,
but old wells are being depleted faster than new wells are being
brought
into production so our production is now below 8 million barrels a day,
including the North Slope oil and off shore oil.
Our consumption rose to 19.6 million barrels a day
before and dropped to 16.7 after the second oil embargo. World oil
consumption
was about 40 million barrels a day. Since then our consumption has
risen
about 3% a year. World consumption was 80 million barrels a day last
year.
The estimate for this year is 83 million barrels a day with an
estimated
addition of 2 million next year.
Our crude oil consumption has remained about 20
million barrels a day because natural gas has replaced heating oil and
heavy fuel oil in homes and industry so the oil industry has been
importing
much more finished product (gasoline and heating oil) from over seas.
It's
cheaper to import than to convert heating oil and heavy fuel into
gasoline
and since we must import to meet our demand it's cheaper to import the
product to the location of the customer than to import the crude oil
and
refine it and then ship it to the customer.
Pipelines are the cheapest way to ship oil followed
by boats, rail tank cars, and the most expensive way is by truck. The
cost
also increases with increasing distance, a fact that most people ignore
for some unknown reason, when considering the price of gasoline at
different
locations. Plus they ignore the different state gasoline taxes and
sales
taxes.
Geography determines how oil is shipped. Mountains
and large bodies of water make pipelines economically infeasible, the
east
and west coasts have very few pipelines and have the highest shipping
costs.
Because of the mountains and the lack of pipelines crossing them, oil
can
NOT be moved freely any where in the nation.
Because of this limitation the oil industry divides
the nation into three areas, the east coast, the west coast, and mid
continent.
Each area is for all practical reasons completely isolated from the
others.
This isolation places severe economic penalties when shipping oil to
meet
demand in each area.
'Not in my back yard' also plays a very important
role in determining the location of oil facilities. No new refineries
have
been built since the '70's and no new pipelines have been built except
along existing right of ways. Electric power transmission lines have
the
same problem, natural gas pipelines have had more success in obtaining
right of ways because people prefer gas to oil or electricity.
I laugh when politicians say, 'We need more
refineries.'
More is not better, more will not solve the problem. Why build more
refineries
or any oil facility if we have to import crude oil to meet our needs,
it's
cheaper to import finished products. Besides, and even more important,
the oil industry knows we don't need more facilities, if we conserve we
could reduce our imports by 4 million barrels a day, maybe more. And
most
important of all, why build any facility that will only be used for
less
than ten years, oil production will be at maximum by then and we will
be
forced to conserve.
That's why I'm disgusted with our politicians, they
are not leading, they don't even understand the problem and refuse to
learn.
I have written my congressmen and senators since 64 and mostly, the
only
response I get is a form letter.(If you have read some of my other
works,
maybe now you can understand my contempt and venom. Sheer stupidity, I
can't stand it. Enough.)
When I first joined Leonard Refineries in 59,
Michigan
had more than eight refineries, today it has zero. Then Michigan
produced
thirty six thousand barrels a day, today less than four thousand. The
refineries
were small, only one refined more than eight thousand barrels a day. As
the wells became unprofitable, the refineries closed and sold their
assets
to other oil companies.
Remember, it takes energy to get energy, a well
must pump enough oil to pay for the electricity, gas, or diesel fuel to
pump the oil, an operator to check on the well and perform routine
maintenance,
the fuel for the truck and a driver to transport the oil from the well
to gathering pipelines, to pay for the lease of the well site, etc.
This
does not include the capital costs, seismic work to find the drill
site,
the cost of drilling the well, pipe, pipelines, or any of the equipment
needed. When a well does not cover the basic costs it will be shut down
and the lease forfeited.
As long as a well and / or a field pumps enough
oil to cover basic costs, it will be operated in the hope of recovering
the capital costs. This is the case of the North Slope field. This
field
has been a major disappointment, it never produced its projected
quantity
and the wells are depleting much faster than anticipated. This why the
oil companies involved want to drill in the Arctic National Wild Life
Refuge.
With additional wells they might recover their capital investment in
the
Alaskan pipeline or at least get a better return on their investment if
the price increases in crude oil has not provide the necessary return
already.
If you have read my other works, you know that I'm
an environmentalist, but here is a case where I side with the oil
companies.
My argument goes like this: once resources have been spent I like to
see
them used to the fullest extent. The Alaskan pipeline is already there,
lets use it, but don't be overly optimistic about the amount of oil
produced
from the Arctic National Wild Life Refuge, I have a gut feeling that it
will be just as disappointing as the North Slope field.
The oil industry can produce oil with minimum impact
on the environment. Yes, there will be spills, accidents, and mistakes,
this is a risk I think is worth taking. Besides, why are we so
concerned
with preserving small pieces of land when we are unwilling to preserve
the whole world by not reducing our consumption of fossil fuels?
To me this piece meal approach is, just, plain
stupid
and a waste of resources. I mean it's like a doctor treating a patient
with a life threatening leg infection saying, 'The patient died, but I
saved his leg.'
We must reduce our population and our use of fossil
fuels or we will become extinct, it's a matter of when, not if. And I
want
my grandchildren to have a chance.
At 40 million barrels a day we were dumping excess
carbon dioxide into the atmosphere, now at 80 million barrels a day we
are pouring carbon dioxide into it. Remember, for each molecule of
carbon
dioxide we dump into the atmosphere, we are removing a molecule of
oxygen.
I'm rather fond of breathing, how about you?
As long as I'm digressing from my main topic, let
me add: a conjunction of major tsunamis will occur in five years. The
solar
sun spot maximum and the possibility of drought, the maxing out of oil
production, a world population over eight billion, and the baby boomers
retiring. Are we ready?
Now back to my main topic. In 59 the US had 52
integrated
oil companies and many non integrated oil companies. Integrated means
that
the company does all four activities required, production, pipeline,
refine,
and market. When I retired only twenty six integrated oil companies
were
left, today even less. I don't know the exact number, but would guess
at
eight.
Leonard refineries bought three small refineries,
the rest were shut down and scrapped. Then CFP bought Leonard and
merged
it with a production company in Canada and changed the name to Total
Petroleum
(North America). More acquisitions and increases in refining capacity
brought
Total to forty two thousand barrels a day. Modern refineries have at
least
two hundred fifty thousand barrels per day of capacity.
More acquisitions nearly tripled Total's refining
capacity. Total's MI refinery was shut down because it was too small
and
not economical. In my opinion part of the blame lies with our
bureaucrats
and politicians. The MI refinery processed Canadian asphaltic crude.
The
bureaucrats and politicians in their infinite wisdom, screwed up our
energy
relationship with Canada and Canada would not sell Total any asphaltic
crude. When the MI refinery could no longer make asphalt, its economic
days were numbered. Later, Delmar Diamond Shamrock bought Total and
later
another oil company bought them.
Michigan is a microcosm of the oil industry.
Michigan
is surrounded by water, with little crude oil production, with a large
demand for finished product, with two crude oil pipe lines (both coming
from and going to Canada) and two product pipe lines (of any size) with
three terminals and five boat terminals. That means that all products
must
be trucked from the terminals to customers, very expensive. The average
per gallon-mile was 56 miles, remember the truck has to return.
The east coast does not have any oil fields, so
obviously all crude oil must be shipped to the refineries by boat or
pipeline.
Since the number of pipelines crossing the mountains are few and the
size
of the pipe small, most of the crude oil is brought in by boat.
'Not in my back yard' severely restricts the number
of refineries on the east coast so a large share of gasoline and
heating
oil is shipped in from refineries over seas making the east coast
vulnerable
to price changes and inventory constraints.
The west coast has similar constraints with one
big exception, the Los Angeles basin oil fields. For many years these
oil
fields have supplied all of the west coast needs. As demand grew it was
cheaper to import crude oil and products across the Pacific because
only
the smallest tankers can pass through the Panama canal and the only
pipeline
across the southern desert was very small. It's cheaper to import than
to build bigger pipelines or a bigger canal.
When the Alaskan North Slope field was developed
economics again played the dominant roll. The oil industry wanted to
build
a pipeline down the east side of the Rockies, but the cost was, just,
too
great. The interest on the oil in the line out weighed all other
considerations.
Bigger is not always better, too big means economically infeasible.
Remember, the oil in the pipeline can never be
removed
and someone must pay for the oil in the line. Once the line is full
then
you can remove as much as you put in.
Since the north slope production was greater than
the west coast demand and with no economic way to transport the crude
to
the mid continent, the oil industry shipped the Alaskan oil to Japan
and
exchanged it for OPEC oil to be delivered to the gulf coast. Certainly,
Japan gets cheaper oil than if they bought OPEC oil directly, but would
you do it for nothing?
From an oil perspective, the mid continent is a
country unto itself. Since most of our crude oil production is in the
mid
continent, that is where most of our refineries, pipelines, and other
oil
facilities are. It's also the area with the lowest costs.
Since refineries require large amounts of cooling
water, most refineries are built near large bodies of water, cooling
towers
are more expensive, so most of our refining capacity is on or near the
gulf coast. Which in turn makes the gulf coast the most economical
place
to import crude oil. Costs increase with distance from the gulf.
The oil industry tries to maintain about seven days
of inventory and can go as low as a three day supply or as high as ten
days without economic penalty. This does not include the inventory
available
at high use industries, such as, airlines, trucking, rail, farm
storage,
etc. Since oil consumption is very predictable, the oil industry tries
to maintain a minimum inventory to meet demand to keep the cost of
inventory
low.
For a country so dependent upon energy, the lack
of knowledge about energy, its constraints, and its economics is
appalling.
I hope this short explanation increases the amount of knowledge in this
area.
All the numbers presented here are from memory,
but they are accurate enough for the purpose intended. I passed all my
records to the person who took my place when I accepted another
position.
If you would like to know more about my background go to 'Thoughts'
then
to 'Who am I'. Also, if you have not read 'What We Should Do', 'Oil
Price
Spikes', 'No Out Cry' all in 'Comments', and 'Tsunami' in 'Thoughts',
please
do.
News paper articles are a recombination of the above
comments.
Return to Comments table of
content
When I heard, 'Tax cuts create jobs,' for the
umpteenth
time, I decided to do the calculations for myself. I think I saw these
calculations somewhere before, but I can't remember where.
Let me begin with a tax calculation based upon one
hundred families with incomes and tax rates as listed in the table
below.
Allow each family to deduct $10,000 for the standard deduction plus
personal
exemption. Seven of the bottom 20 families are on unemployment. Assume
that the budget is balanced.
No of
income
taxable
tax
tax Budget
families
income
rate
paid Balanced
1
1,000,000 990,000
70
693,000
9
200,000 190,000
40
684,000
10
50,000 40,000
30
120,000
30
30,000 20,000
20
120,000
30
20,000 10,000
10
30,000
20
10,000
0
0
0
Now put a tax cut in to effect. Two families came off unemployment and earned 10,000 each saving the government 20,000.
No of
income
taxable
tax
tax Budget Deficit
families
income
rate
paid at year end
1
1,000,000
990,000
40
396,000 -297,000
9
200,000 190,000
30
513,000 -171,000
10
50,000 40,000
25
100,000 -20,000
30
30,000 20,000
15
90,000 -30,000
30
20,000
10,000
9
27,000
-3,000
20
10,000
0
0
0 20,000
-501,000
Two $10,000 jobs for a $500,000 deficit, if tax
cuts
create jobs, it's certainly not cost effective.
Now assume a 2% per year inflation rate for twenty
years and a 20,000 standard deduction plus personal exemption.
No of
income
taxable
tax
tax Budget Deficit
families
income rate
paid
at year end
1
1,460,000
1,440,000 40
576,000
-117,000
9
292,000 272,000
30
734,400 50,400
10
73,000
53,000
25
132,500
12,500
30
43,800
23,800
15 107,100
-12,900
30
29,200
9,200
9
24,840
-5,160
20
14,600
0
0 29,200
-42,960
Now assume a 30% increase in population over the twenty years.
No of
income
taxable tax
tax Budget Surplus
families
income rate
paid
at year end
1.3
1,460,000
1,440,000 40
748,800
55,800
11.7
292,000
272,000 30
954,720
270,720
13.0
73,000
53,000
25 172,250 52,250
39.0
43,800
23,000
15 139,230 19,230
39.0
29,200
9,200
9
32,292
2,292
26.0
14,600
0
0 37,960
438,252
You can change the numbers however you like, but
it should be obvious that the tax cuts didn't balance the budget or
improve
the economy. All the tax cuts did was give people more money and caused
inflation. The narrowing of the budget deficit and improvement in
the economy came about because of an increase in population. Now you
know
how the politicians came up with the rosy forecast of a budget surplus
in ten years.
What they couldn't predict was the sharp increase
in the price of oil which put us into a recession because the increase
in the price of oil took a large sum of money out of our economy. Do
you
really think a 25 basis point change in the federal funds rate can
control
inflation. A one penny change in the price of gasoline has more impact
on the economy than a quarter of a basis point by the fed.
The most important impact of a tax cut or a decrease
in the fed funds rate is psychological. It makes people feel confident
and they spend more money than normal which then gives a temporary
increase
to the economy until inflation increases and reverses the psychology.
When people spend more than normal they create a
surplus demand greater than normal thereby creating surplus jobs more
than
normal. This can become a self perpetuating cycle until inflation sets
in. Then all the surplus spending decreases and the surplus jobs
disappear.
Again, this can become a self perpetuating cycle causing deflation and
eventually, a recession.
I think it was fitting that the longest bull market
in history led to the slowest recovery in history. The bull market was
fueled by huge deficits and we will pay the price. It's just a matter
of
when.
Tax cuts do not create jobs, psychology does. We're
not smart enough to create the psychology without betting the farm. "A
way of thinking is at the same time a way of not thinking" to quote S I
Hayakawa. People let their egos block their view. They feel good
because
they have another zero on the end of their income. They have more paper
money today than yesterday, but in buying power they have less than
they
did yesterday. We are not better off than we were twenty years ago. We,
just, think we are. Very few check. Anyone on a fixed income can attest
to it.
An economy is a zero sum game. It can never be
greater
than the sum of the productivity of its members nor greater than the
amount
of money the participants in the market place, both foreign and
domestic,
are willing to spend for the goods and services produced in the
economy.
The production of goods and services can never be greater than or less
than the demand for those goods and services, otherwise deflation or
inflation
will occur.
The only way an economy can grow is by increasing
the number of people or by inflation. Economists like a small amount of
inflation because they don't know how to handle a deflationary
environment.
They think they know how to handle an inflationary one.
The standard of living can increase without an
increase
in the economy by being more efficient and by using cheap energy
allowing
prices to be reduced (importing cheap goods or services has the same
effect
as cheap energy). Remember, the standard of living is not the same as
the
economy. But efficiency and cheap energy brings on the problem of what
do you do with those unemployed by the efficiency and the cheap energy.
The unemployed are no longer contributing to the
production side of the economy. The efficiency actually lowered the
economy
by lowering prices. If the unemployed are supported by tax dollars this
will cause inflation because the unemployed will take money out of the
economy while not contributing any production.
If the lowering of the ecomony is balanced by the
inflation caused by the tax supported unemployed, dangerous
undercurrents
in the economy can go undetected until it is too late to prevent their
effect on the economy. Inflation also occurs when people live longer
causing
a change in the distribution of the population. The increase in the
number
of retired people contributes to the demand side of the economy, but
not
to the production side.
I hope you realize that we cannot keep increasing
our population and that cheap energy is a thing of the past.
Note: At the time I did the calculation the number of people per
household
was 2.1. Since only about 2/3 of the household file income tax returns
and only about 2/3 of the population is considered in the work force,
the
ratio of number of people filing income tax returns to the number of
workers
in the work force remained 1 to 2.1, hence one millionaire equals
two unemployed.
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It does not matter that I disobeyed my own religion
I must defend myself and I must have revenge.
It does not matter that civilization ceases for
a while
I must defend myself and I must have revenge.
It does not matter that anarchy and chaos reign
I must defend myself and I must have revenge.
It does not matter that bullets, rockets, and bombs
explode
I must defend myself and I must have revenge.
It does not matter that someone's blood is on the
ground
I must defend myself and I must have revenge.
It does not matter that people are homeless
I must defend myself and I must have revenge.
It does not matter that widows and orphans are
hungry
and crying
I must defend myself and I must have revenge.
It does not matter that ...
I must defend myself and I must have revenge.
I
must defend myself and I must have revenge
until everyone else is dead and I'm the only one left alive.
This my message to Osama bin Laden
040728
You and your followers will not go to heaven because
God called you to help the Palestinians, not to kill Jews or Americans.
You are not following the teachings of the Koran. Killing does not help
the Palestinians it only placates you desire for revenge. God abhors
revenge.
You are wasting you time, your money, and your life.
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content
Top management is doing such a wonderful job,
million dollar raises that
should do the trick,
but we gotta have another tax cut.
Inflation is on the rise,
a quarter point raise by
the FED that should do the trick,
but we gotta have another tax cut.
Unemployment is too high,
more immigration that should
do the trick,
but we gotta have another tax cut.
Our schools are under funded,
build more prisons that
should do the trick,
but we gotta have another tax cut.
Day care is sorely needed,
longer prison terms that
should do the trick,
but we gotta have another tax cut.
Pollution is too high,
lower the standards that
should do the trick,
but we gotta have another tax cut.
Global warming is increasing,
give tax incentives for
bikinis that should do the trick,
but we gotta have another tax cut.
The ant hills in the driveway are too high,
buy a 4 by 4 that should
do the trick,
but we gotta have another tax cut.
We need more exercise,
get a ATV, a personal water
craft, or a snowmobile that should do the trick,
but we gotta have another tax cut.
The deficit is too high,
sell more government bonds
that should do the trick,
but we gotta have another tax cut.
Oil prices are too high,
buy another SUV that should
do the trick,
but we gotta have another tax cut.
The economy is not growing fast enough,
buy a wide screen TV that
should do the trick,
but we gotta have another tax cut.
Social Security and Medicare are in trouble,
make Russia Roulette the
national pass time that should do the trick,
but we gotta have another tax cut.
Oil is short supply,
get a second Hummer that
should do the trick,
but we gotta have another tax cut.
We have the most unique civilization the world has ever known,
reduce government spending
that should do the trick,
but we gotta have another tax cut.
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Hawking's question, 'and what is there for God to do?'
Choose the no boundry condition so that the cosmos
will be like God, always is and always was.
Wheeler's statement, 'Everything is information?'
No, John, everything is a bit at another level,
information is only available to the system that creates it.
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I sent this comment as an email on April 04.
I'll bet that the 911 commission never implicates
the parties most responsible for the 911 disaster. Let me set the
stage.
Every organization has its own unwritten rules,
Total Petroleum (North America), my employer, was no exception. When I
first became a frequent flyer, I learned that if a pilot didn't greet
me
in the waiting room of the company hanger, to go into the flight room
so
as to let them know that I was there.
The second thing I learned was that if a pilot asked
a question, I was invited to join them, otherwise they had something to
do and I was to return to the waiting room.
One day I followed the above procedure and when
I entered the flight room one of them asked me if I had heard about an
irate passenger that almost brought down a commercial airliner. The
three
of them had been discussing three incidents in six months where a
passenger
broke down a cockpit door and entered the cockpit and interfered with
the
operation of the plane.
The latest one required all three of the cockpit
crew to subdue the man. The navigator and the copilot managed to keep
the
man away from the pilot until the pilot put the aircraft on autopilot,
then the three of them held the man down while a flight attendant
sedated
him. The entire event took more than fifteen minutes and the plane lost
five thousand feet of altitude before the pilot could set the auto
pilot.
This event triggered the pilot's union to request
the strengthening of all cockpit doors. The FAA and the airline
companies
said they would look into it. That conversation took place more than
thirty
years ago!
Also, more than twenty years ago when terrorist
struck Europe several times, the European airlines adopted strict rules
as to how the cockpit crew was to enter the plane and once in the
cockpit
they were to lock the door and not open it, until security clearance
was
givin after they were back on the ground. The EU urged the U.S.
airlines
to follow the same rules. Has anything happened?
That's why congress passed the survivors act to
compensate the victims of 911, if this had come out in court, two
airlines
would not be in business today and the rest of the airlines would
probably
be still grounded, with the possibility that we would have had an
economic
collapse.
Why else do you think a 911 family gets more money
than that of a killed or wounded vet from Iraq. The vet has little or
no
effect on the economy.
Don't say that money doesn't talk!
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content
I was watching a spider, outside my window, dying
from hypothermia and starvation like so many people around the world
when
the following memory returned. I had a unique and lasting experience
involving
my classmates in my advanced organic chemistry class('56) that
encapsulates
my thankfulness.
The class was a very time consuming class, lab
started
at eight, five days a week, and on a good day we could leave by two.
For
those who didn't brown bag it, the others would watch your experiments
for you while you went to eat or to go to another class.
Of the twelve in the class, six were foreign
students.
Six of us decided to go to the student union for lunch, two girls, one
from Sweden, she was a blond as she could be, the other from Columbia.
Four guys, one from Nigeria (he was blacker than the ace of spades),
one
from South Africa (a milk chocolate colored black), myself, and another
white from the US.
As we approached the student union, a group of
blacks
tried to encourage the Nigerian and the South African to join a black
advocate
group. They walked along side our group giving them a number of reasons
why they should join.
Finally, the South African had had enough, he
stopped
walking and said in a very loud voice, 'You niggers don't know what
discrimination
is'. The girl from Columbia said, 'You Americans don't know how lucky
you
are, you're healthy and well fed. In my country, you either have a maid
or you are one'.
With that said, the US blacks departed and we
continued
to the student union. The girl from Columbia cried all the way. She
found
the lack of opportunity for her countrymen so intolerable. I can't
remember
her exact words, but it was something like this, 'I would rather be a
maid
in your country than a Queen in mine.'
In addition to trying to console the girl from
Colombia,
the South African and the Nigerian told personal stories about the more
vulgar forms of discrimination they had suffered in their country. At
first
the girl from Sweden was shocked, even though she was well traveled,
she
had led a very sheltered life. As the stories became even more vulgar,
she became very agitated, she couldn't believe what she was hearing.
She
couldn't believe that anyone could be so vulgar and so cruel.
Then as I was paying for my food, the man behind
me said, 'Isn't that awful.' 'What do you mean?' 'Well, look at that',
and he pointed to a large round table where the girl from Sweden and
the
Nigerian were having an animated discussion. What could I say? I was at
a loss for words, I simply turned and walked away. I often wondered
what
the man thought when he saw me and the South African join them.
By the time she reached our table, she was talking
very loudly. The people near by could not help but over hear her, but
they
could not hear the Nigerian so they came closer. When I arrived at the
table she stood and asked other blacks near by if what the Nigerian was
saying was true.
Before the other two classmates came to our table,
the other students in the room began to gather around listening to our
discussion. The two hot button topics back then were racial
discrimination
and who should control nuclear weapons. The first hydrogen bomb was
detonated
about a year earlier.
When it became apparent that she was not going to
calm down some one changed the topic. Among students, the foreign
students
were not bashful, in fact they were very vocal. When they stated their
position on who should have nuclear weapons, the crowd around our table
increased in number and moved closer.
I'm positive that our citizens were very surprised
at their position. Every one of them were dead set against nuclear
weapons,
they didn't want their countries to have them, but all agreed that if
anyone
was to have them, they wanted the US to have them and they felt we
should
be more open about what we were doing and going to do, they didn't like
the secrecy.
More people gathered around our table when the
foreign
students began to share how they viewed us. They thought the US was a
great
big arrogant obnoxious bully. Our freedoms ended at our borders. We
didn't
pay attention to the rest of the world, our way was the only way, and
we
were wasting our money, we did not give them the help they really
needed.
But they were continually amazed at our willingness
to help, our generosity, and we championed the underdog. Most had
suffered
discrimination in our country, some times just because they were
foreigners.
But many times they were surprised when they were discriminated against
by some Americans, other Americans would defend them, assist them, or
offer
them aid. They found our spirit contagious. It infected them and they
didn't
want to lose it.
An odd fact about the discussion was that the other
people around us didn't interfere with our discussion other than to
answer
her questions with a yes or no or to ask us to speak louder. When we
finished
eating, we had to fight our way through the crowd.
This event occurred either the sixth or the seventh
day of the class. By the second day of class we had become a close knit
group. This event dramatically increased the bonds of the group.
The class was evenly divided between male/female
white/non white foreign/domestic. The other two foreign students that I
didn't mention were a girl from Germany, her family survived the
bombings,
etc. of World War II, and a boy from China, his family had survived the
Japanese occupation and later escaped to Hong Kong from the communists.
All the foreign students were from wealthy families,
the girl from Columbia was from a very wealthy family, even so, all
were
very aware of the inequities of their own society. Every one of the
foreign
students wanted to stay in the US, not one wanted go home except to
hear
their native tongue spoken. All spoke beautiful English, not American,
we could understand them, they had difficulty understanding us, we use
too many idioms.
I learned more about the world, the US, our role
in the world, how the rest of the world viewed the US, male chauvinism,
discrimination, language, sex, etc. during that course than the rest of
my life combined. The animated discussion between the girl from Sweden
and the Nigerian became a never ending discussion. The discussion was
not
continuous, but it didn't conclude until the wake we held in the lab
after
finals, complete with chem lab cocktails. Not a dry face in the group,
but we were never to meet again.
The foreign students were uninhibited and when the
foreign girls talked frankly about sex, the American women became
uninhibited.
Our discussions were no holds barred discussions and no topic was
prohibited.
The class was time consuming as I have said, but the discussions were
captivating,
no one wanted to leave. Many times we stayed even after we had finished
our experiments.
99% of our people can not even begin to comprehend
the power we have, our influence on other people. We don't have to flex
our military might or spend billions of dollars. We just have to be
ourselves.
We have an esprit de corps that is more powerful than any thing known
to
mankind. It is this spirit that I want to keep alive. It is this spirit
that makes us Americans. It is this spirit for which I'm most thankful.
This spirit is our greatest strength and at the
same time our greatest weakness. We have committed many atrocities
defending
the spirit against real and perceived threats. In defending our spirit,
we rally around a leader or a group and if that leader or group makes
an
error or perverts or allows the perversion of the ideals of the spirit,
our nation commits a grievous error in spite of our ideals and even
contrary
to our ideals.
Unfortunately, the media plays an exaggerated role
in creating a leader. For example 9/11, we would have rallied around a
newspaper boy that day if the TV cameras had focused on one. This is
why
the importance of a free press cannot be over emphasized. We must have
an instrument that forces us to examine our motives, our actions, and
the
results there of.
Our current situation is a continuation of what
began under Eisenhower. Ike was not a leader, he was a politician and
he
could not break his loyalty to the military and disclose the liars. A
true
leader would have had the strength to do so. And we have been fighting
the pseudo threat of communism ever since.
Today terrorism is substituting for communism and
a misguided country is not paying attention to the most pressing
problems
of our day. We will pay a price for our inattention, it's not a matter
of if, it's a matter of when.
In the past the time lag between the error and the
penalty has varied from less than a year to as long as twenty. So don't
become complacent if the penalty doesn't come quickly, it will come.
I hope you will join with the others who are trying
to prevent the destruction of our spirit. We can only destroy
ourselves,
no other force is strong enough to defeat our spirit. If we lose our
spirit,
we will lose the fourth greatest gift mankind has ever received and it
maybe lost forever.
Like the girl from Columbia said, we don't know how lucky we are.
P.S. Thanks Giving is my favorite holiday
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content
When the Fed chairman started lowering interest
rates,
I was not surprised, but when he kept lowering them, I was. He didn't
stop
until rates were at 1%, way to low to accomplish what he said he was
trying
to do. That was to help stimulate the economy. When he started to raise
rates, I was again puzzled. At that time the economy was not doing
well,
job creation was falling, and inflation as gauged by the CPI was mild.
So why was he raising rates?
It finally dawned on me, rates were lowered not
only to stimulate the economy, the primary reason was to shore up the
financial
industry for what was to come. He didn't disclose his true reason so as
not to create a panic.
He warned Washington several times about the deficit
with zero response. When the dollar continued to fall after the first
of
the year, he changed the Fed stance and warned that interest rates
would
be rising and at a steady rate. I hope the change in stance was not too
late.
You see, Greenspan is trying to stabilize the
dollar,
again without creating a panic. The dollar has been setting new lows
against
all major currencies almost every week this year and on Friday set a
new
all time low against the Euro.
True, a lower dollar will help our trade deficit,
but our bonds are more important. If the dollar falls to far we are in
deep financial trouble. The foreign investor will start selling our
bonds
instead of buying them. Depending on how fast events unfold will
determine
how severe the coming recession will be and if the mental midgets in
Washington
make a major mistake or if we have a major event, look out '29 we will
set a new record.
What to watch? If the dollar continues its slide,
interest rates keep rising, and Washington does nothing to control the
deficit, grab your hat.
What to do? First, don't borrow any more money,
pay off as many debts as you can, own gold, gold coins, gold stock. Buy
resource stocks especially the metals. Agri business stocks may also
help.
Do not own government bonds or dot com stocks. Avoid risky stocks. Your
goal should be to limit your losses not to make money. We should know
by
March if Greenspan has moved quickly enough.
Greenspan can only do so much and then it is out
of his control. If events start to happen quickly, get a supply of dry
foods, oat meal, dried beans, etc. and canned goods and pray.
The other side of the coin.
Have you ever wondered how the Japanese have done
it, financially that is? For many years following the second world war,
the Japanese, by their own laws, could not buy our bonds, but their
government
would allow their banks and industries who were in financial trouble to
buy our bonds.
The Japanese save money, a bachelor was not
considered
eligible unless he had 300,000 yen in the bank. But the Japanese banks
only paid 1% or less on deposits. The Japanese banks then bought US
bonds
at 3% or more (during '79-'80 our thirty year bond had a 14.7% interest
rate). As long as the exchange rate didn't change to much, the Japanese
banks were gaining Yen hand over fist. Our government was unofficially
financing the Japanese.
This happened because the Japanese were buying US
dollar denominated bonds, in other words they were buying our bonds
with
our dollars. They exchanged yen for dollars and then bought our bonds.
At maturity they received dollars which they exchanged for yen at the
current
rate.
Because exchange rates changed rapidly following
the Korean war, a foreign investor had to be very careful when buying
US
dollar denominate bonds because if the dollar fell against their
currency
they could lose a lot. They could, also gain a lot, if the dollar rose
against their currency.
For example, if their dollar was equal to our dollar
and they bought our bonds at 4% and the dollar fell by more than 4%,
the
foreign investor would not make any money.
This happened to the Euro recently. Not long ago
the Euro was one for one with the US dollar. Today the Euro is worth
$1.2
or more. If a foreign investor bought our bonds at $1 and received 4%
interest,
at maturity they would receive 1.04/1.2 or .87 Euro for every dollar
they
invested, not a good investment.
To combat the changing value of the dollar our
government
began selling bonds denominated in other currencies. Now, using the
same
example as above, the foreign investor would not lose any money, they
would
buy our bonds in Euros and receive interest and principle in Euros
regardless
of exchange rates.
So who loses the difference? We do.
At maturity our government must buy Euros at the
given exchange rate and pay the foreign investor back. In other words,
we borrowed $1 and paid back 1.04 * 1.2 or 1.25. Our deficit increased
by 25% not 4% because we have to borrow more money to pay them back.
This is the other side of the coin.
And it has Greenspan worried, very worried because
our deficit could balloon out of sight. And if our deficit becomes
large
enough, the foreign investor may perceive that we might not be able to
pay them back. If that happens the market psychology would change.
Markets
are driven by psychology and a vicious circle would be formed. The
foreign
investor would sell our bonds and the dollar would drop more, so the
foreign
investor would sell more and the dollar would drop more, and so on.
I know this sounds draconian and depressing, but
I urge everyone to get a history book, one that gives the details, not
just a summary, of the hyper inflation event that took place in Germany
following the first world war. Believe me, hyper inflation is
draconian.
People will starve and freeze in the midst of plenty because no one
will
have enough money to buy the gasoline to transport our food or to buy
the
fuel to heat our homes.
Such events happen without warning, none. And when
they start no knows when and where they will stop. The best we can do
is
to prevent one before it starts and as best I can tell we are too
close.
There is very little most people can do. But there
is one thing everyone can do, send your congressman and both of your
senators
a three word message 'Balance the budget' and send it to them every
month
until congress does so.
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I'm proud to be an American. We are the most unique,
most powerful, most dynamic society in the history of the world. We can
change our political control without death and destruction. Our
willingness
to help and our generosity is contagious. We champion the underdog.
Etc.
We adapt rapidly. Change is a part of our lifestyle;
new technology is incorporated very rapidly, mostly to our benefit.
I have witnessed the beauty of our society, and
we should enjoy it. I have lived a comfortable and mostly pain free
life,
and we should keep it.
I don't think of myself as being special, nor do
I think my experiences are out of the ordinary because they are mine. I
did have many more excellent teachers than my children did, the impact
of the foreign students on me cannot be overstated, and my military
service
was unique.
During one eight week period I had no assigned
duties
except that I had to be in formation every morning and evening. Besides
shooting pool, playing ping pong, and shooting every weapon of the
Army,
I read every nonfiction book in the post library and began to read
selectively
from the Colorado Springs Public Library, an activity that has
continued
to this day.
I have learned from many people: strangers,
neighbors,
friends, and family; and I'm ever grateful that I didn't have to
experience
what they did. In addition to my study of military history, the
veterans
of my family and friends of my father taught me about the Second World
War. The veteran college classmates and the veterans when I served in
the
army taught me about the Korean War. I know of some of the atrocities
we
have committed.
In addition to my study of our political history,
I have spent many hours listening to survivors of the Holocaust and
Japanese
and German concentration camps. I have walked through the mud,
sewerage,
and garbage of the cardboard box slums along the Mississippi and
Missouri
flood plains and the Dallas railroad yards. I have been in the slums of
many large cities within walking distance of the fancy hotels and
convention
centers I have visited.
Reclamation projects. We reclaimed the
land,
but did we reclaim the people.
Desperate people do desperate things.
I have been in homes with dirt floors. Friends
have
told me of their travels to the rural areas of China, South America,
India,
etc. I have visited my friends in nursing homes. I have handled dead
bodies.
I have bandaged bloody people. I have seen the ugly side of life and
our
society.
I'm proud to be an American, but I'm not blind.
We are unwilling to admit we have made a mistake.
We lie to ourselves and create fantasies to avoid facing our mistakes.
We are obsessed with winning. Greed and escapism dominate our thinking,
our history, our actions. We are right. Our way is the only way. We are
number one. We must always have our own way. We have a sacred 'cow'. We
worship our own 'idol'. We have our own 'myth trilogy'.
'The victors write history' and 'all history is interpreted history.'
The writers of history have a vested interest in
what they write, sometimes their own survival, but, more often, what
they
choose to write about is determined by how popular the people or events
are. They want people to read what they write; people avoid reading
unpopular
topics.
Our history involving the Indians and slavery is
an example of the victors and interpreted history. The history of
Nixon,
Reagan, and Clinton is an example of popularity. At the end of his
career,
Nixon was unpopular and the commentators didn't treat him very kindly.
Clinton was popular, but his sex exploits were very unpopular, and that
part of his life was not treated kindly. Reagan was very popular and
his
grievous mistakes are almost completely ignored.
Because of the bias of history, I must reject all
religious and political statements until the truth of the statements
are
supported by at least one other independent source. All the writers of
religion and politics have a vested interest.
For example, who told us that the ancient Hebrews
were the chosen people? Who told us that God gave them Israel? I cannot
accept the implied assumption that God was parochial. In fact the New
Testament
says that God was not parochial. Do you call that consistency?
Look at our churches -- we have the biggest choir,
we have the largest band; we have the most people in our congregation.
We entertain you. But where is the Word. 'Seek the truth and the truth
will set you free.' 'The new has come, the old has passed away.'
Truth is ignored. Look at the Laffer curve and
Creation
Science. Science is suppressed, only to be used if it can create more
money.
Truth is sacrificed to our idol, money. God did create us, but not how
the creation stories tell it. We won't let the old pass away.
Large segments of our population refuse to examine
their own fantasies and the rest are co-conspirators because they allow
the fantasies to continue unchallenged. Who told us we are great? Who
told
us our cause was just? Who told us we are righteous? Who told us we are
doing God's will? Who told us our way is the right way? Who determines
our values?
Have you ever read your child's history book? Look
at the pseudo truths we perpetuate. 'I cannot tell I lie, I chopped
down
the cherry tree with my little hatchet', but does the same book tell
that
he ordered the Army to massacre the Indians of the Hudson River Valley
and up state New York because they helped the British. That was the
excuse,
but the real reason was to open the same area to the settlers.
What about good old Ben, 'A penny saved is a penny
earned'. A wise and upstanding man; a leader of our country. He
probably
had more illegitimate children than any other significant historical
person.
Lincoln freed the slaves, but only as a last resort. We dropped the
atomic
bomb on Japan to end the war!
These pseudo truths are not innocuous, they allow
our thinking to be warped and once implanted they are extremely
difficult
to correct. We made deals with ruthless dictators and warlords to
prevent
Communism and other pseudo threats. Our dealings with Central and South
America and many other countries are a travesty. If we included our
mistakes
honestly in our history books, our children would not be able to finish
reading them before they graduated.
Why do we continue the fantasy? We hate to lose.
We don't want to look at anything unpleasant. We must maintain the
appearance
of perfection at all costs. We don't want to admit we made a mistake.
We
don't want to see ourselves, and, if we don't maintain the fantasy, we
would be forced to look at ourselves, heaven forbid. Look at our
entertainment.
We are constantly kicking the 'bad guys' in the ass. Doesn't that make
you feel good, but are we willing to look at ourselves? Many times, we
are the bad guy. So we create a fantasy, so we can avoid it. We got the
bad guys didn't we?
Look at our advertisements. We sell sex. We sell
ego status. We sell appearances. We sell the 'Madison Avenue' image. We
sell the American Dream. We sell 'things' to keep our false economy
going.
Greed. We have sacrificed truth and honesty to our idol money.
Our sacred cow plays a significant role in our
economy.
Most of our lifestyle revolves around our sacred cow. We kill people
with
our sacred cow, but that is the price of progress, but if people die
from
some other cause that is horrible. When the market raises the price of
gasoline we grumble, but we pay it. But if our government raises the
gasoline
tax, people are killed. (Snipers shot and killed several truckers who
didn't
join a boycott of a proposed gasoline tax increase.)
Look at the rotten deals we have created to keep
gasoline prices low to feed our sacred cow. As much as possible we have
paid foreign producers as little as possible in the name of a free
market.
Free to who?
We should use the free market as much as possible,
but we should never force a problem to fit a solution. The free market
should have worked in the airline industry, but look at the mess
deregulation
caused. The 'free' market in the hospital, drug, phone, electric, and
gas
industries is a joke and a waste of resources.
Are we better off than we were last year or the
year before, etc.? No. We refuse to do the simple arithmetic that would
dispel our fantasy. We would rather escape than face our problems. We
move
to the suburbs; we watch sporting events; we watch plotless movies; we
exercise our throttle and brake muscles; we use recreational drugs; we
refuse to face ourselves; therefore, we cannot solve our problems.
Recreational drugs, what a euphemism. How can we
even consider any drug to be recreational?
We brainwash ourselves to avoid facing ourselves,
but worst of all we brainwash our children. What kind of a future are
we
creating? What happens to our children when their fantasies, their
religion,
the American dream, the Madison Ave. image, I must win, I must look
good,
clash with reality. How many psychotic and depressed people have we
created?
How many people die disillusioned, robbed by our fantasies of the
satisfaction
of having lived a good life?
We spend way too much time working and commuting.
We spend much of our lives in a car. To make up for the time lost with
our children, we substitute things. I agree that a rich environment
stimulates
brain development, but tender loving care is much more vital. Things
can
never replace TLC. The damage done is irreversible. Our children adopt
things as their goal.
What an empty life we are living. We have many
things,
we have more quantity but less quality. We have very little personal
contact,
very little dialogue, very little time to read, very little time to
reflect.
I was a very unhappy child when I learned that Santa
Claus was not a real person, and learned that adults were not telling
me
the truth. But that was mild compared to the unhappiness I felt when I
discovered that my Sunday school teachers were not telling me the
truth.
They were telling me their belief, not what the Bible said.
As I learned more of the truth, my sadness left
me and was replaced by nausea and anger. I was no longer surprised by
new
revelations. I only wondered, how bad could it get?
People are killed to prevent abortion. We deny other
people the knowledge of family planning because some won't let the old
pass away, and, at the same time, many people die from AIDS and
starvation.
For most people their only source of information
is from the media, and the media is dominated by ideologues. How warped
can we and our children become?
Talk about the ends justifying the means. Our
political
arena is a prime example of how warped we have become. Nixon was
cheered
as he left office after he resigned. And the Republican Party has been
trying to make the Democrats look bad ever since. Look bad because they
were unwilling to face the fact that they had made a mistake. Carter
was
crucified by the Republican spin machine and the media. Do you remember
what he did to deserve such treatment? But worst of all, we made a hero
of a drug dealer.
Only in America could this happen. Our myth trilogy
distorts our thinking. More is better. Bigger is better. Free
enterprise
(money) can solve all problems. If you steal on grand scale, you will
become
famous, you made money, you became rich. But if you steal on small
scale,
you go to jail. If you tell a small lie to gain political advantage,
you
will be shunned. But if you tell a big lie, you will be granted power
and
become a status symbol. If your actions injure a few, you will be
persecuted;
if many, you will become a saint. If you transport an ounce of
marijuana
you go to jail, but if you transport drugs by the planeload you become
a hero.
Truth and honesty are sacrificed to our idol, money,
and to keep our fantasy alive. Reagan disobeyed Congress and ordered
(directly
or indirectly, it doesn't matter, as Commander in Chief he was
responsible)
the CIA to ship drugs to his own people. But this was quickly swept
under
the rug, and he became known as the 'Great Communicator'. What did he
communicate,
the equity of our judicial system?
He should have been brought to justice, but, with
the memory of Nixon still in the minds of many people, very few had the
stomach to even think of such action. We were completely unwilling to
face
the fact that our leader had committed a horrific error in judgment,
way
beyond any reasonable bounds, and we created a fantasy to avoid facing
the facts. And now we must keep the fantasy going because facing the
facts
now would be very ugly.
This fantasy has allowed ideologues to take control
of our media and government and to distort the facts to the point that
we are now living in fantasy land, nearly divorced from reality, 'Don't
confuse me with the facts, I know what I want to believe'. A persuasive
argument is not even necessary. Any statement we want to believe is all
that is needed.
Deceit and deception are at an all time high. We
do not allow leading statements or questions in our courts of law, why
do we allow them in our politics?
We talk about truth and honesty, but are we? We
talk of educating our children, but are we? We talk about saving our
environment,
but are we? We talk about improving our lives, but are we?
What do we talk about? We talk about how much money
we can make in our 401K's. We talk about how well we can retire. We
talk
about cars. We talk about sports. We talk about the big house we may
buy
away from the slums. We talk about THINGS. We don't talk about people
or
ideas. Least of all we don't talk about our problems.
We don't seek knowledge for it's own sake. If it
does not show a return on investment, we shun it. We can't solve our
problems
if we don't know, and a return on investment education rarely solves a
nontrivial problem.
Must we suffer a catastrophic event before we remove
the veils that blind us?
We must learn the opposite of our myth trilogy --
bigger is not always better; more is not always better; and free
enterprise
cannot solve all problems. We must put our sacred cow, as we now know
it,
out to pasture. We must reduce our idol back down to what it was meant
to be, a medium of exchange. We must remember at all times the
difference
between material and nonmaterial resources.
Money is not the measure of all things.
We continually place our bias on another person's words. We must change. We must seek the truth. We must let the old pass away. We must eliminate greed and escapism and let our other qualities take control before it is too late.
AMERICA look in the mirror, see yourself, and
slowly
and carefully wash your face clean.
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During a trip to the Rose bowl with a student from
Germany, I became very aware of how many idioms, clichés,
proverbs,
etc., we use in our every day speech. We could understand her
perfectly,
but she could not understand us. We were constantly interpreting our
idioms,
etc., for her.
While the use of idioms, etc., is efficient, it
can be very misleading because we tend to quote only the part that
supports
our position and that can lead to very lazy thinking because we do not
examine other possibilities.
For example, 'A little knowledge can be dangerous',
we use only the first verse when the second verse is much more
important
and would expand our thinking.
During the time I served as a customer service
chemist
the marketing department made a request for technical help and I was
assigned
to help. One of our jobbers went bankrupt and marketing didn't want to
lose his customers and since we were his largest creditor we took
control
of his business.
The jobber went bankrupt because of very poor
business
practices one of which was that he didn't keep inventory controls, he
claimed
his drivers were stealing from him but he could not prove it because he
didn't have any records.
The first thing our company manager did was to set
up inventory controls. At the end of his first day on the job which
happened
to be a Saturday, he measured the amount of product in each of the
tanks
with a dip stick. A dip stick is nothing more than a twelve foot yard
stick.
He put water detecting paste on the bottom foot of the stick and stuck
it into each tank though a sampling hole on the top. When he removed
the
stick he could see the liquid line and read the number of inches of
product
in the tank to a quarter of an inch and also knew how many inches of
water
was in the bottom of each tank. Then by referring to a chart on each
tank
he could calculate how much product was in each tank.
On Monday morning before the drivers began to load
their trucks, he stuck each tank again and to his surprise the gasoline
tank had lost a large amount of product. Immediately, he knew there was
a leak. He closed the valve on the line at the bottom of the tank. Then
he had a contractor remove the dirt from the underground line from the
valve to the loading rack with a back hoe and they discovered a union
that
was never brought up tight. Obviously, it had been leaking since the
first
day the underground line was put into operation. No wonder the jobber
went
bankrupt.
The union was tightened and the line was put back
into service and that would have been the end of the story except for
one
very important detail. The jobbers bulk plant was next door to a grain
elevator and about a week later the grain elevator had a fire in a
small
basement underneath the office.
They called the gas company to check on a small
hot water boiler that was on the dirt floor in the basement. When they
went to check the boiler they discovered small flames coming from the
ground
in many places. They shut off the gas at the street but the flames
continued
to burn. They stuck a probe into the ground next to the largest flame
and
took a sample of the gas. The sample was analyzed and it was not
natural
gas.
The elevator manager went to our bulk plant manager
and asked if he had a leak. Then phones started ringing in many
offices.
The insurance company of the elevator went ballistic and our bulk plant
manager asked for help.
After a survey of the bulk plant and the elevator,
I contracted a gravel company to bore holes between the bulk plant and
the elevator with their gravel sampling auger. Two insurance inspectors
were present when the holes were bored and when the auger brought up
gasoline
saturated soil they were very concerned about a possible fire if some
one
threw a cigarette near one of the holes.
One of the insurance inspectors was a smoker, he
threw lit cigarettes into and around the holes, but nothing happened.
To
further test their concern I took a sheet of newspaper, opened it
fully,
folded it on the diagonal, and then rolled it into a long cylinder. He
lit one end of the paper cylinder for me. I then approached a hole,
crouched
down low, extended my arm, and moved so the lit end of the paper was
over
the hole. I did this to each hole that had gasoline soaked soil and
each
hole burned with a low flame. After I had lit the fifth hole the
insurance
inspector took his cigarette lighter and lit the sixth hole before I
could
stop him.
If you have ever heard a flame front propagate down
a cylinder, it is a sound you will never forget. That sound caused him
to recoil ever so slightly, but enough to prolong his life. When the
flame
front reached the speed of sound it detonated and a flash of bright
blue
flames shot fifteen feet into the air singeing a small amount of his
hair
as he recoiled. His partner had to support him when he stood, his face
was ghost white and he was shaking. He knew he had been within a
fraction
of an inch of death. Several minutes later he said, 'Now I know why you
did what you did'.
He had a small amount of knowledge and it was very
dangerous, it almost ended his life. He knew that each hole that I lit
burned gently and assumed all of them would and that brings us to the
second
verse and if he had known the second verse this event may not have
happened.
'A little knowledge may be dangerous, but a little ignorance may be
deadly.'
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All the facilities and activities of the oil
industry are expensive, a million dollars is considered small change
and
service stations are probably the least expensive and off shore
drilling
the most expensive for a single unit. Most people can not even
contemplate
the size of the numbers commonly used in the petroleum industry. At the
same time most people would be surprized that very small numbers can
decide
the location of oil facilities.
At a price of sixty dollars a barrel,
inventory
costs are very high. To give you an idea of how large the problem is
consider
the following. We consumed 21 million barrels a day last year, that is
one billion two hundred sixty thousand dollars a day. A one cent change
per gallon is 882 million dollars a day.
To meet our consumption demand we must import
seven super tankers every day. Each super tanker holds about 2 million
barrels. Not very many people have ever seen a 100,000 barrel storage
tank.
These tanks vary in size, but most are over 160 feet in diameter and
over
30 feet high. Four of them could be placed in a standard city block.
That
means that five city blocks would be needed to hold the crude oil
delivered
by one super tanker and thirty five city blocks would be need to hold
the
amount of crude oil we consume in one day and 254 city blocks would be
needed to hold a seven day supply.
At sixty three dollars per barrel of crude
oil the price per gallon is $1.50, now would you change how you shipped
crude oil to save $.0001 per gallon?
When the Alaskan North Slope field was
developed
$.0001 per gallon was the deciding factor. The oil industry wanted to
build
a pipeline down the east side of the Rockies. The interest on the oil
in
the line out weighed all other considerations. Bigger is not always
better,
too big means economically infeasible. Remember, the oil in the
pipeline
can never be removed and someone must pay for the oil in the line. Once
the line is full then you can remove as much as you put in.
At that time the inventory costs of a pipeline
down the east side of the Rockies would have cost $5,000,000 more a
year
than the alternative. The pipeline capacity was to be 3,000,000 barrels
per day, so lets do the calculation. 5,000,000 divided by 3,000,000,
then
divide by 42, then divide by 365 days per year and the saving is
$.0001087
per gallon.
The oil industry is driven by fractions of
cent per gallon because of the astronomical volumes we consume each and
every day in this country.
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On a piece of paper write your answers to the
following
questions. You should not need more than one line for each answer.
Part one.
Name the logical operators.
Write the basic logical statements.
Construct a truth table for each.
What are the basic implications of these statements.
Part two.
Write down the requirements or attributes, the
advantages, and the
limits or disadvantages of the following: democracy, mass production,
fair
markets, science.
Part three.
What is the main source of our energy?
Name the most common sources of energy we use.
What are the attributes and limits of each source of energy?
How much do you use?How much does our country use?
How much does the world use?
How many answers did you write down?
For part one you should have had a minimum of 14.
For part two you should have had a minimum of 16.
For part three you should have had a minimum of 25.
To be an effective citizen you should know and be
able to use with ease all of basic answers to part one. As for the
answers
to parts two and three, in a country so dependent on all of the
answers,
why is so little known?
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Thirty years ago a truck driver was shot and killed
because he didn't join the boycott on a potential five cent increase in
the federal gas tax. The above is an extreme example of what happens
when
our politicians try to raise the gasoline tax. We go bananas. But when
OPEC increased the cost of gasoline by a dollar a gallon all most
people
did was bitch.
Bitching about the price of gasoline is counter
productive. It does not stimulate thinking only more bitching. We need
new ideas. We need to change what we are doing. We need to change our
life
style.
The only way to bring the price of gasline down
is by conservation because it will be at least five years before any
new
technology will have any impact. To bring the price down by
conservation
we must bring demand down below production.
Shouldn't we be conserving gasoline? Wouldn't an
increase in the gasoline tax tend to promote conservation?
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Data is objective, but the value of data decreases
as the level of abstraction increases. Information is subjective, but
it
can approach objectivity as follows.
I feel hot.
The statement is subjective because the word 'hot'
is at an undefined level of abstraction and different people will have
a different opinion or point of view.
The temperature is 85 degrees.
The statement is almost as objective as is possible.
There can be no difference of opinion or point of view. Why? Because
all
of the words are at the lowest level of abstraction and the sentence is
at the lowest degree of freedom.
Some examples of statements that convert to
information
in decreasing order of objectivity.
Logical statements: p or q, 1 + 1 = 2, A + B = C,
etc.
Counting statements: we have twelve eggs.
Measuring statements: The temperature is 85 degrees.
Comparison statements: He is taller than me.
Each subordinate clause and abstract word increases
the degree of freedom of a statement. Don't confuse variable with
abstraction,
i.e., A + B = C, the symbols are variable but they are not abstract.
When
the meaning of a word relies on context the degree of freedom also
increases.
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Contrary to any impression you may have gotten from
my messages, I'm a very progressive conservative. I was one of the Mt
Pleasant
Jaycees who helped elect John Engler to his first term in office. The
conservatives
I have known were not liberal with the truth and shared five common
goals.
They wanted to be practical. They wanted a smaller efficient and
effective
government. They wanted less government spending implying a balance
budget.
They wanted a strong defense. They wanted more individual freedom and
less
government interference.
When I read 'global warming was a liberal hysteria
so universities could get more government grant money', my blood
boiled.
The statement implied many things. First, I can
make a very good case that the universities were soft peddling
environmental
issues so they wouldn't lose grant money. Second, it implied that there
was no scientific basis for global warming. Third, it implied that all
who affirmed global warming were liberals. Fourth, it implied that we
don't
need to change. Fifth, it implied that the writer was a conservative.
When a scientist examines the data and says, 'This
is dangerous, we should change what we are doing to be on the safe
side'.
Who is the conservative and who is the liberal?
When anyone intentionally violates the rules of
logic and intentionally exploits the error of allness to deceive other
people, they are using idiot logic and are 'idiotologues', they are not
conservatives, they are nothing, they are liars. The ends do not
justify
the means.
Look at what the 'idiotologues' gave us? Star wars.
The largest government in our history, even more so, if you count all
the
contractors and subcontractors. They are outspending the liberals. Look
at the inefficient and ineffective spending in Iraq, the hurricanes
Rita
and Kitrina, and home land insecurity. A shortage of troops and
equipment
for the Iraq. Wire tapping, denying due process, want required prayer
in
school, want to limit the reproductive freedom of women, limiting the
reproductive
knowledge of both men and women, no family planning, limiting the
rights
of gays.
You can have more individual freedom or you can
have more government requirements, restrictions, or limits, but you
can't
have it both ways.
It's no wonder that the native americans said,
'White
man speak with a forked tongue', the idiotologues want it both ways
when
it is to their benefit.
If you are paying attention to what the
'idiotologues'
are doing and trying to do, how can you call them conservatives?
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I retired in '88 so I don't have access to what I
consider reliable numbers and must rely on my memory. The last numbers
that I remember is that only three oil producing countries have any
appreciable
excess capacity Iran, Russia, and Saudi all the rest are at maximum
and/or
have declining production.
In spite of the talk from Iran and Venezuela which
is hot air, all of the oil producing countries were deficit spending
prior
to the last major increase in crude oil prices. On a per capita basis
their
entitlement programs make ours look puny. Every oil producing country
needs
every dollar they can get and they finally learned that they can get
more
money by increasing the price of oil rather than by selling more.
Besides if they can't produce more they can't sell
more.
We can't control our own destiny, we have no control
over the price of oil.
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