ISRAEL’S PRIME MINISTER CRITICIZES OBAMA:

Sarah,

This week, Israel’s Prime Minister Benjamin Netanyahu criticized America’s current position on Iran.  Here’s why:

The Dispute:

The dispute revolves around Iran’s nuclear program.  Iran claims it is developing nuclear technology to build civilian power plants.  Western countries think Iran is trying to develop nuclear weapons.

To deter their progress, Obama stresses diplomacy and economic sanctions.  He has not taken the military option “off the table” but hasn’t been very specific.  Israel wants the United States to take a harder line.  Specifically, Israel wants the United States to set “red lines” which if crossed by Iran, would trigger a military strike by American armed forces.  America has not done this.

Israel also condemns Obama for urging Israel not to attack Iran.  In the words of Netanyahu: “They (the U.S. and Europe) don’t have the moral authority to place a red light before Israel.”

Lastly, Netanyahu is mad because he claims Obama refused his request for a meeting at next month’s United Nations assembly in New York.  Obama claims it is merely a scheduling conflict; he will not be in New York at the same time as Netanyahu because he is scheduled elsewhere.

The Political Dimension:

Some observers think Netanyahu’s comments are designed to influence the American election.  Romney’s policies are more in line with Israel’s and Netanyahu may be trying to speak to the crucial Jewish vote.  A majority of Jews voted for Obama in the last election.

Netanyahu’s words put Romney in an interesting position.  On one hand, they may strengthen Romney’s claims that Obama is soft on Iran and is weakening our ties with Israel.  On the other hand, Romney does not want to be forced into promising a military attack.  By and large, American voters are not interested in starting another war.

 

 

LATEST FIGURES FROM THE US CENSUS:

Sarah,

Each year the U.S. Census Bureau gives an annual report on America.  Here are the latest findings:

-The poverty rate held steady at 15% after four years of increases.  The poverty rate is defined as a single person making less than $11,702 or a family of four making less than $23,208.

- Median household income fell.  The hardest hit American households were those in the 60^th percentile.  Income for this group fell 23%.

- Average income in the richest households held steady.  The proportion of the nation’s wealth held by the top 20% of earners increased slightly.

- Why did middle class incomes fall while the poverty rate held steady?  Experts think it’s because there are new jobs but they do not pay well.  Thus, people can find work that keeps them above the poverty line but below traditional average incomes for the middle class.

- The proportion of Americans with health insurance rose.

- The South experienced the most economic gain.

-California’s economy continued to deteriorate and their poverty rate increased, bucking the national trend.

Bottom line: Things are not better.

THE SALTON SEA IS ONE STINKY LAKE:

Sarah,

The Salton Sea is a lake in south-central California.  This week, horrible smells emanating from the lake travelled more than 100 miles and reached Los Angeles.  How is this lake so stinky?  Here is what experts believe:

1. The Salton Sea was created in 1905 when the Colorado River flooded and water flowed into the area.

2.  The lake is now replenished by agricultural run-off water.  This water is laden with chemicals that give the Salton Sea its trademark murky color.

3. Fish populations in the lake adhere to a sort of boom and bust cycle.  After rapid population growth, oxygen in the shallow lake is depleted and the depletion causes all the fish to die at the same time.

4. These seasonal die-offs add to a collection of stinky decay of the bottom of the lake.

5.  Last week, thunderstorms and gusty winds churned the shallow waters of the lake.  This allowed all the stinky smells at the bottom of the lake to escape into the air.

6.  Wind then blew these smells into the greater Los Angeles area.

7.  The alternative theory is that the smell is from geysers shooting sulfur dioxide into the air.  In recent years, the lake has receded into the desert and this has uncovered the geysers.

Bottom line: The Salton Sea is one stinky lake.

BASIC DETAILS ABOUT NEW ORLEANS’ FLOOD CONTROL SYSTEM:

Sarah,

As I’m sure you remember, the levee system in New Orleans failed in 2005 and catastrophic flooding resulted.  After the disaster, the government rebuilt the flood control system.  Last month the new system faced a test against Hurricane Isaac and passed.  Here is a description of the system currently in place:

Levees:

The easiest way to think of levees is to think of city walls.  Just like a fortified ancient city, New Orleans is surrounded by 130 miles of walls.  The newer walls are 30 feet high.  Instead of repelling invaders, these walls protect against rising water levels.  During a storm, the water level on the outside of the walls may be higher than the water level inside the walls.  When one of the walls fails or the water level exceeds the height of the wall, water flows into the city.  New Orleans has walls on all sides because it is completely surrounded by water and it is below sea level.  On one side of the city is the Mississippi River.  On the other side of the city is an enormous lake called Lake Pontchartain.

 

 

 

 

 

 

 

Pumps, Canals, and Floodgates:

Walls are useless if the enemy is already inside.  In a hurricane, enough rain can fall on New Orleans itself to cause flooding.  Accordingly, a system is in place to pump water out of the city as well. 

The system relies on a series of canals that run through the city.  At the end of each canal is a floodgate that moves up and down to control water from coming in and out of the city.  In a storm, water collects in these canals and is then pumped outside the city.  The new pumps installed after Katrina can fill an Olympic size swimming pool in four seconds.

These canals are also bordered by levees.  In a storm, the water level in the canals is higher than the water level in the rest of the city.  During Katrina, these canal levees broke.  This failure was particular upsetting because the water level was not above capacity; the walls simply failed.  The water locked inside the canal that cut through the city rushed through the breach in the wall and flooded New Orleans.  You could argue that the city was flooded from within.

Bottom line: I did not know that much of the water flooding New Orleans came from a canal inside the city.  I was picturing a huge wave going over an outside wall and entering the city like an invading army.  The canal breach is much more terrifying.  It’s like having a huge shark tank in your living room that could break at any second.

BAHRAIN PUTS THE UNITED STATES IN AN AWKWARD POSITION:

Sarah,

Sometimes the United States has to choose between promoting human rights and promoting its geopolitical interests.  Their relationship with Bahrain provides an excellent example of this quandary.

Geopolitical Interests:

Bahrain is a small country in the Persian Gulf.  It has a ton of oil and it allows the United States to base an entire naval fleet in its territory.  This fleet (the 5^th fleet) is essential to United States’ interests because it is our main fleet in the Middle East.  If we fought a war with Iran, Bahrain’s support would be absolutely critical.

Human Rights Interests:

One of the reasons the Bahrain supports us against Iran is that Bahrain is ruled by a Sunni Islam Monarchy.  The monarchy does not trust the Shia Islam government of Iran.

Unfortunately, they also distrust their own Shia Islam minority.

When the Arab spring started (remember the rebellions Egypt, Libya, Tunisia) the Shia minority agitated for more political rights.  Protests were crushed and activists were jailed.  Currently, international observers report that Bahrain uses its court system to prosecute political enemies and that Bahrain’s police use unacceptable amounts of force.  Being that the country is officially a monarchy (ruled by a king), democratic institutions are lacking.  The United States lightly condemned the action but hasn’t really done anything about it.  Bahrain promised reforms but hasn’t made any.

The situation is best summed up by Michael Posner, our Assistant Secretary of State.  The LA Times quoted him as saying:

“I think our best role is to be a quiet supportive voice on the outside.”

In other words- please be better, but if you don’t get better, no worries.

APPLE CRUSHES SAMSUNG IN COURT:

Sarah,

This year, Apple sued Samsung for infringing on patents held by Apple and won.  Apple is an enormous American company.  Samsung is an enormous South Korean company.

What Is A Patent?

A patent is when a country grants a company a monopoly on certain technology for a certain time in return for describing how the technology works.  The technology has to be novel, useful and non-obvious.  In theory this encourages innovation because it provides inventors with a hefty incentive to create. 

What Is The Technology Apple Claims To Own?

Usually the technology in high tech patent cases is difficult to understand.  This case was an exception.  Here, Apple claimed that Samsung infringed on patents that protected general touch screen technology such as pinching, zooming, scrolling, and selecting.  Additionally, Apple successfully argued that Samsung had copied the IPhone’s overall aesthetic design.

 What Did Apple Win?   

A billion dollars.

Are People Pissed?

Yes.  Even people that don’t work at Samsung.  These people believe that the touchscreen technology is too general to patent and that aesthetic design should not qualify as invention.  They argue that by granting such broad patents, the government moves competition between companies into the courtrooms.  Further, so many broad patents hinder innovation because restricting a company’s ability to work with basic touch screen technology stops them from inventing.

Bottom line: Apple is dominating everybody.

WHAT THE HELL IS THE DEBT CEILING?

Sarah,

The US debt ceiling is always in the news.  What the hell is it?  Further, what is debt?  Who owns our debt?  Here is a breakdown:

US Government 101:

The Constitution of the United States divides our government into three sections: the legislature (congress), the executive (the President), and the judiciary (the courts).  Congress makes the laws, the President and his agencies enforce the laws, and the courts interpret the laws.

Each branch is given specific powers.  Congress is explicitly given the power “to borrow money on the credit of the United States”.  Therefore, the theory goes, if part of the government needs to borrow money, congress has to approve that borrowing.  The Environmental Protection Agency, for example, falls under the executive branch because it is tasked with enforcing the laws of the United States.  If it needs to borrow money, congress has to authorize that loan.

Quick History:

Before 1917, congress had to approve each individual act of borrowing separately.  When the United States entered World War I, this system became untenable and was replaced with a new system in which congress merely “set a ceiling” on the amount of debt that could be raised.

Since then, the celling has been raised dozens of times.  In 2011 there was a standoff in congress because the debt ceiling of $14.29 trillion had been reached.  To raise the ceiling both parties had to work together; something they aren’t really into.  Democrats demanded tax increases along with cuts to government programs.  The Republicans refused to raise taxes on the theory that such a move would endanger the fledgling economic recovery. 

Predictably, congress failed to reach any sort of long term compromise and instead came to a last minute deal that raised the debt ceiling another 2.4 billion dollars.

The next standoff is due to occur in January of 2013, after the upcoming election.

How Much Debt Are We In?

The word “trillion” sounds made-up and it is hard to conceptualize just how large a trillion is.  It’s easier to think of the debt in relation to our Gross Domestic Product. (GDP)  America’s GDP is the accumulation of all goods and services produced within America in a given year.  Currently America’s GDP stands around $15 trillion.  Our debt is also around $15 trillion.  Thus our debt is about 100% of our GDP.  In other words, our debt is equal to the value of all the goods and services produced by America in one year.  This is the highest level of debt in proportion to our GDP since World War II.  The recent debt is largely due to the wars in Afghanistan and Iraq and Obama’s stimulus program. 

What Is Debt?  Why Is Paying It Back Important?

Our most common form of debt comes in the form of securities issued by the United States Treasury.  Basically, if you buy a security, you get a promise from the government that they will pay you back with interest.  The United States is able to borrow at a very low interest rate because it has never defaulted on any debt.  In other words, buying treasury securities is a very safe investment.

For this reason, it was a big deal when we reached our debt ceiling.  If we passed our debt ceiling, we would have defaulted on some of our loans because we constantly borrow money to service our current debts.  Theoretically this would raise the interest rates on our securities because they would be viewed as “less reliable”.  Further, because most investment portfolios carry treasury securities, a downgrade could cause a financial panic. 

During this crisis of 2011, a credit agency downgraded us from AAA to AA but it did not affect our interest rate because demand for US treasury securities remained strong (in a crisis people want a safe place to invest their money).

Other countries are not so fortunate.  Greece is in a financial crisis and people doubt that they will be able to repay their loans.  Accordingly, it is very expensive for Greece to borrow money.  In the news, you will constantly see headlines about bond sales in Ireland, Spain, or Greece.  The rate at which these countries can sell bonds (debt) indicates how investors view their financial health.  Recently Ireland surprised markets by selling bonds at a lower rate than expected.  This was favorable news for the Irish economy.

Does China Own Us?

You could argue it.

However, it’s not just China; other countries own us too.  50% of our debt is held by other countries.  Both Japan and China hold about a trillion dollars of American debt.

The proportion of our debt owned by foreigners has risen steadily in the last decades.  In 1988, foreigners held 13% of our debt.  In 2007, foreigners held 25% of our debt.  Now the number is around 50%. 

I honestly don’t know if this matters.

Is There In An End In Sight?

I’m not very optimistic.  Congress is incredibly polarized.  The Democrats seem unable to raise taxes.  The Republicans seem unable to effectuate major budget cuts.  Obama has been unsuccessful in cutting the deficit.  Romney promises to cut, but declares that there will be no new taxes and he will increase military spending.  I don’t really understand either party’s math.

Bottom line:  I’m more confused now than when I started writing this post.  We owe also owe Japan a trillion dollars?  What does that even mean?

SOME RESPONSES FROM CHINA:

Sarah,

I recently started reading the China Daily; a state-controlled daily newspaper from China.  It is interesting because it states the Chinese government’s opinions about world events.  Today there was an editorial responding to criticism from America.  I’ve listed three American accusations and China’s responses:

Accusation: China engages in unfair trade practices.

Response: China buys American goods.  Last year, in 420 out of 435 US congressional districts, exports to China rose faster than exports to any other country on Earth.

 

Accusation: China is escalating conflict in Syria by blocking UN resolutions to place sanctions on the Assad regime.

Response: Proposals that would help arm the rebels will only lead to more bloodshed.  More aggressive steps in Syria will lead to invasions like the ones in Afghanistan and Iraq.  The U.S. “failed miserably” in both of those campaigns. (The editorial states that there is “conflict in Syria” but does not call it a civil war)

 

Accusation: China is a warmonger that is aggressively building its military.

Response: China has not been involved in a war since the one with Vietnam in 1979.  In contrast, America has been fighting wars continuously for the last three decades.

The rest of the article accused Republicans of trying to sow the seeds of hostility when there is no actual reason for hostility.

Source: China Daily, “An end to the revival of hostilities”, August 31, 2012

AMERICA’S WEAPONS EXPORTS ARE FALLING:

Sarah,

Let’s talk about guns.  America has the largest military on Earth.  It is also the largest exporter of weapons.  However, that title is fading.  This week, Foreign Affairs magazine gave an interesting account of why:

Background:

After the fall of the Soviet Union, America became the undisputed leader in arms exports.  This reputation was further enhanced by America’s performance during its first war against Iraq. (can you believe that war happened 22 years ago?)

Since then, America’s market share has dropped from 60% of the world’s weapons sales to 30%.

Why the Drop?

1. Our Weapons Cost Too Much:

America still produces the best weapons available.  The problem is that they are extremely expensive.  After the attacks of 9/11, Congress poured money into the military and cost efficiency went out the window.  America’s newest fighter, the F-35, costs 75% more than its original estimate.

Although some countries still pay for the best weapons money can buy, others are having second thoughts.  Recently, India decided to buy its fighter jets from France instead of America.  Asa result, American contractors lost out on a billion dollar contract.  Even our most reliable buyer, Saudi Arabia, recently chose to buy some of its planes from Great Britain.

Other countries simply can’t afford what we have to offer. 

2. The Competition Is Growing:

Other countries understand that there is a market for cheaper weapons and are cashing in.  Here are some examples of recent arms sales:

-Sweden sold fighter jets to Hungary and Thailand.

-Russia sold fighter jets to Indonesia and Malaysia.

-France sold battleships to Singapore.

Additionally, China is now Pakistan’s largest arms supplier and South Korea has transitioned away from buying our weapons and is producing more of its own. 

Does This Matter?

You could argue it.

Selling weapons to your allies is a win-win.  Your allies grow stronger and you get paid.  The American defense industry employs hundreds of thousands of Americans and more contracts means more business. 

Retaining a monopoly on arms sales also gives America a strategic edge.  Countries are more amenable to our suggestions if they rely on us for their weapons.  In 2005, America threatened to cut off Israel’s supply of jet fighters if Israel continued to sell certain aerospace parts to China.  Additionally, we have used our leverage over Spain and Brazil to stop them from selling weapons to Venezuela.

Bottom line: I’m really curious if these “cheap” but modern jet fighters that are made in Sweden could beat the “expensive” but older fighter planes made in America from Top Gun.  Leave your opinion in the comment section below.

Source: Foreign Affairs, “Arms Away”, September/ October 2012

SOME THEORIES AS TO WHY AMERICA'S CRIME RATE IS DROPPING:

Sarah,

Most of the news these days seems to be negative.  There is one big exception: crime has been steadily dropping nationwide since 1992.  This drop has continued throughout the recession.  To learn why, I read articles from The Atlantic, the Wall Street Journal, and The Economist.  The three publications offered an absurd amount of reasons but no real definitive conclusions.  Therefore, I’m just going to list every theory in no particular order because no one is really sure why the crime rate is dropping.

The Theories:

1. The police have better technology.  Computer systems organize vast amounts of data, show where crimes are concentrated and predict trends.  This has allowed police departments to allocate their resources more efficiently.  It also increases accountability because numbers do not lie. (Unless you’re a cop on The Wire)

2. Officers are working closer with the communities.  The police are more trusted than they were twenty years ago.

3.  America’s absurdly high incarceration rate, fueled by strict drug laws, has removed criminals from the street.  Evidence for this is mixed and usually depends on if your source leans conservative or liberal.  Since I lean liberal in this department, I’ll mention that New York has experienced one of the largest drops in crime but has not incarcerated nearly as many people per capita as the rest of the nation.

2.  Prescriptions of psychiatric drugs have increased.  Less crazy people commit less crime.

3.  Lead has been removed from gas.  Tests show that levels of lead in the average American’s blood dropped dramatically from 1975 to 1992.

4.  The legalization of abortion in the 1970’s reduced the amount of “unwanted children” and these children were more prone to commit crime.  (this very controversial theory is from the book Freakonomics.)

5.  America is aging and an aging population necessarily lowers the crime rate.

6.  Video games have provided young men with an alternative way to spend their time.

7.  The percentage of immigrants in cities has increased.  Studies show that cities with higher proportions of immigrants have lower crime rates.

8.  Aggressive stop and frisk strategies, such as the one employed in New York, have taken guns off the street.

9. More individuals are buying burglar alarms for their homes and LoJack for their cars.

10.  Harder economic times lead people to practice more self-control and rely on family.  The Great Depression also experienced a drop in crime, while crime grew rapidly in the strong economy of the 1960’s.

Which theory is right?  I have no idea.

CHINA AND AMERICA ARE CRASHING AN OBSCURE MEETING OF PACIFIC ISLAND NATIONS:

Sarah,

The geopolitical contest over the Pacific Ocean is heating up.  Last week I wrote about China’s squabbles with its neighbors over the South China Sea.  This week, I’ll describe the politics of the Pacific a little more generally.

 

 

The Pacific Island Forum:

The Pacific Island Forum is a meeting of 16 South Pacific countries.  Other than Australia and New Zealand, almost all of the members are small island nations.  This year, the meeting will be hosted by the Cook Islands which have a population 11,000.  To put that number in perspective, Dodger Stadium holds 55,000, five times the entire population of the country.

This year, China and the United States, who are not members, have decided to crash.  Hilary Clinton, our Secretary of State, bluntly described why: “Let’s just talk, you know, realpolitik.  We are in a competition with China.”  To accommodate Clinton’s entourage, the Cook Islands will be asking individual citizens to lend their cars to her motorcade. 

Why Are They Crashing the Party?

As China grows, it is exerting is political and military influence outwards over the Pacific.  This expansion adds to the already existing disputes.  Here are some of the current flashpoints in the Pacific:

1. South China Sea: China vs. Singapore, Malaysia, Vietnam, Brunei, Taiwan and the Philippines:

China claims all of the South China Sea.  The other countries in the South China Sea hate this.  America is intervening against China and providing military aid to both Vietnam and the Philippines.

2. Diaoyu/ Senkaku Islands: Japan vs. China:

Although these islands are uninhabited, they are fishing grounds that may have oil and gas.  In 1895 Japan beat China in a war and took control of the area.  China still considers the islands their territory because China discovered them.  Recently, Japanese activists planted flags on the islands.  This led to waves of violent anti-Japanese protests throughout China.  Last week, Chinese activists landed on the islands and were deported by Japanese authorities.

3. Liancourt Rocks: South Korea vs. Japan

Japan conquered a large amount of area in World War II.  After it was defeated, Japan renounced claims to much of its Asian territory.  There is a dispute as to if this group of islands is included in the renunciation.  There are also a number of competing historical claims to the islands.

4. Kuril Islands: Japan vs. Russia:

In 1855 Russia gave Japan ownership of the Southern Kuril Islands.  At the end of World War II, Russia reconquered the territory and deported its Japanese citizens.  After the war, a dispute as to who owns the islands was never diplomatically resolved and as a result Russia and Japan never signed formal peace treaty to end World War II.  Technically, Russia and Japan are still at war.

5. Competition for Influence: Everyone vs. Everyone:

Almost all major powers compete for influence in the smaller countries of Asia.  Even Australia, a seemingly peaceful country, maintains a fierce rivalry with China for influence in the islands of the South Pacific.  The two countries aggressively offer loans for everything from roads to stadiums in far flung places like Tonga and Fiji.

Given the number of reasons for political instability, both China and America feel the need to compete for influence in the Pacific Ocean.

Bottom line: I can’t believe Russia and Japan never signed a peace treaty after World War II!

THERE IS EXACTLY ONE NON-PARTISAN STATE IN AMERICA:

Sarah,

One could argue that partisan politics is destroying America.  Democrats and Republicans will not compromise on anything and as a result, nothing gets done.  One state out of 50 recognizes this problem and is devoted to centrist candidates.  This state is Maine:

Background:

Maine loves independent candidates.  They’ve elected two independent governors and enthusiastically supported Ross Perot’s candidacy in both 1992 and 1996.(in 1992 more people voted for Perot than Bush)

Currently, over 1/3 of voters are not registered Democrat or Republican.

Olympia Snowe:

Recently, Olympia Snowe, Maine’s Republican senator announced she will not run for reelection.  She was one of the few remaining centrist Republicans in the Senate.  This basically means that she is a Republican but supports gay rights, gun control, and legalized abortion. (it should be noted however the she voted to block the repeal of don’t ask don’t tell)  She decided to leave the Senate because “the atmosphere of polarization” has made any type of compromise impossible.  

Enter Angus:

Alright, I admit it; my motivation for writing this article was to describe Angus King.

Angus King is hoping to replace Ms. Snowe in the United States Senate.  He was Maine’s independent governor during the 1990’s and presided over a period of strong economic growth.  After he left office, he bought a motor home to travel around America with his wife.  He has been doing this since 2003.

Now he wants back in.  He is running as an independent and stresses that he has no ties to either party.  His unofficial tagline is “none of the above” and Maine’s residents refer to him by his first name, Angus.  If you were wondering, the answer is yes- he has an awesome moustache.

His platform is simple: he wants to reform Senate procedures that allow minority parties to block legislation, build bridges between the parties, and stem the flow of money into politics.

Currently, he holds a large lead, but the flow of Super Pac money has only begun.  He will be attacked vigorously by both Democrats and Republicans. 

If he does manage to get elected, he will have a fair amount of power.  This next election may result in a Senate that is split 49 – 50 between Democrats and Republicans.  This would make Angus a crucial swing vote for both parties.

Bottom line: I really want this guy to win.

PROBLEMS FACING THE CATHOLIC CHURCH IN AMERICA:

Sarah,

As you may have heard, the Catholic Church in America is facing some problems.  Last week the Economist detailed some of the challenges facing the church.  Here is a quick history and a summary of the church’s problems:

Quick History:

Our founding fathers were Protestant and the Catholic population in revolutionary America was small.  Then it grew:

-In 1803, America executed the Louisiana Purchase and received 828,000 square miles (15 states) from France.  Because France was a Catholic country, many residents of France’s American colonies were Catholic.

-In 1819, America bought/ stole Florida from Spain.  Because Spain was a Catholic country, many residents of Florida were Catholic.

- In 1845, America demolished Mexico in a war and scooped up all of the Western United States for a paltry $18 million.  Because Mexico was a Catholic country, many of the area’s residents were Catholic.

-In the late-1800’s a wave of European migration brought hundreds of thousands of Catholics into America from places like Ireland and Italy.

-Since then, a solid stream of migrants from Latin America has held the proportion of Catholics in America steady.

Background:

The first thing to know about the Catholic Church in America is that it’s enormous.  Over 74 million Americans identify themselves at Catholics, making America’s Catholic Church the fourth biggest behind Mexico, the Philippines, and Brazil.  That also means about one in four Americans are Catholic. 

If you add up all the Catholic institutions in our country, they employ around one million people.  This makes the Church one of the largest employers in the country.  11 percent of America’s hospitals are Catholic and 5 percent of all private schools are Catholic.  Further, 25 out of the 100 top ranked American hospitals are Catholic. 

The church is also one of the country’s largest landowners.  Even in a secular and expensive place like Manhattan, the church is thought to own more property than any other entity in the city.

The church is also the country’s largest charity and disbursed more than $4.7 billion last year.

Lastly, the American Catholic Church is the biggest source of income for the Catholic Church internationally.  About 60% of all the Catholic Church’s funds are from America.  Therefore, when the church pays money to touch up the Sistine Chapel, there is a decent chance that money originated in Cincinnati or St. Louis.

Problems:

The Church has a lot of problems.

First, there are lawsuits and there a lot of them.  In recent years, the Catholic Church has spent over $3 billion defending against sexual abuse cases.  The average case costs the church $1 million.  With more states considering dropping the statute of limitations on sex abuse cases, this problem will not be going away.

These lawsuits contribute to the Church’s second problem: it’s broke.  Here are the other reasons the Church is in a financial mess:

-Donations have fallen 20%.  Many people are hesitant to contribute because of recent scandals and competition amongst charities has become increasingly intense. 

-With donations lagging, the church has relied on bond sales to raise money.  This has increased their debt.

-Americans have become less religious in general and this affects donations.

 -The struggling economy has affected charitable contributions generally. 

- The Church faces a labor shortage because fewer Americans are interested in becoming priests or nuns.  This drives up the price of labor because the church has to outsource jobs that were traditionally performed by clergy.

-The finances of the church are mismanaged.  Often clergy, and not trained accountants, handle funds.  Additionally, some creditors claim that the church moves money around it to shield it from litigation costs. 

-There have been several instances of fraud on the part of the clergy.  One priest in Philadelphia embezzled over $900,000.

All this has led to relative chaos in the church’s finances.  8 dioceses have gone bankrupt, including San Diego, Milwaukee, and Tucson.

Bottom Line: I am not religious, but I sincerely hope the church can recover and figure out a way to stop abuse.  Some of America’s best institutions are Catholic and the church provides critical services for thousands of Americans.  I’m hoping that things get better. 

 

Source: The Economist, “Briefing The Catholic Church in America” 8/18/2012

CALIFORNIA’S METAL THIEVES OPERATE IN A GLOBAL MARKET:

Sarah,

I read something pretty ridiculous today.  Thieves in California are stealing metal.  This metal ends up being sold to factories in China.  The Chinese factories then manufacture metal products with this metal and sell it back to California.  Here is a step by step breakdown:

1. California buys metal from China.  Cities buy copper wiring.  Churches buy church bells.  Farmers buy metal pipe for their irrigation systems.

2.  Thieves steal this metal.  Last year, ¼ of all Sacramento street lights went dark as a result of thieves stealing copper wiring.  A church in Pico Rivera had to replace a 200 pound church bell and farmers throughout the state had to replace their irrigation systems.

3.  The thieves sell this metal to local scrap yards and local scrap yards sell their metal to scrap yards in Los Angeles.  These Los Angeles scrap yards are close to the port of Los Angeles and the port of Long Beach.

4.  The Los Angeles scrap yards then load the metal on ships destined for China and other Asian countries.

5.  The Chinese factories receive the metal and make copper wire, church bells, and irrigation pipes.

6.  California buys back these metal products from China.

Bottom line: Wait a second, cheap Chinese labor is causing our homeless population to steal church bells and sell them overseas?  This is getting ridiculous.

Source: Los Angeles Times, “Illegal Scrap Yards Heaping Up” 8/22/2012

WHY ARE WE STILL IN AFGHANISTAN?

Sarah,

The United States has been fighting a war in Afghanistan for over a decade.  I’m sure the question on your mind is: why can’t we just leave already?

Here’s why:

The Current State of Affairs:

The United States is in the process of handing control of the country over to the Afghan government.  The problem is that the Afghan government is totally unprepared to assume control of the country.  To understand why, let’s do a quick history and then outline Afghanistan’s main problems.

Map of Afghanistan

A Quick History:

Since people started keeping track, Afghanistan has been a war zone.  Because it is wedged between a number of more powerful countries, Afghanistan has been more or less a buffer zone for a really long time.  Here is a timeline:

- In 500 B.C. Afghanistan was conquered by the Persians.  These are the same Persians who fought and were defeated by the Ancient Greeks. (think of the legend of Marathon, the movie 300, and a ton of Greek literature)

- In 350 B.C. Afghanistan was conquered by Alexander the Great and his Macedonian (Greek) Army.

-  In 100 B.C. Afghanistan was conquered by a new Persian Empire.

- In 870 A.D. Afghanistan was conquered by Arab Muslims.

- In 1219 A.D. Afghanistan was conquered by Genghis Khan and his Mongol Horde.

- During the early 1700’s Afghanistan was briefly independent.

- By the late 1870’s, the British arrived and began to dominate Afghan politics.

- In 1919, Afghanistan briefly gained independence once more.

- After the 1950’s, the Cold War intensified, and Soviet and American influences began to compete for power in the area.

-  In 1978 the Soviet Union decided to back a socialist revolution in the country and invaded Afghanistan with 100,000 troops.  In response, the United States allied with Pakistan and supported the opposition.  The opposition was dominated by Mujahedeen, which basically means people fighting in the name of Islam.  Over one million Afghans died in this war.

- The Soviet war ended in 1990’s and Afghanistan immediately fell into a different civil war.  A new group called the Taliban, which enforced a strict version of Islam and had its roots in the U.S. supported Mujahedeen, emerged as a powerful force.

- As the Taliban consolidated control, they were joined by Al-Qaeda, fighters from Pakistan, and other Muslim extremists.  The Pakistani government provided support for the Taliban during the war.  One reason for the Pakistani support is that the Taliban are Pashtuns, an ethnic group from both Afghanistan and Pakistan.

- On 9/11/2001 Al-Qaeda destroyed the Twin Towers.  A couple months later, America and its allies invaded Afghanistan.

To recap, different groups have continually invaded and dominated Afghanistan.  Each group left a little bit of their culture.  This diversity makes any lasting peace difficult to maintain. 

It Has Been Ten Years; What Has The United States Accomplished?

Coming into the war, the United States had three main goals: destroy Al-Qaeda, neutralize the Taliban, and create a stable, secular, Afghan government.

The United States has largely dismantled Al-Qaeda.  Bin Laden is dead.  Al-Qaeda exists but is much less capable.

The Taliban is weakened but still viable.  In the southern portions of Afghanistan they run shadow governments.  The Taliban freely operate in areas of Pakistan just south of the Afghan- Pakistan border.  They routinely attack international forces and the Afghan government.

The Afghan government exists but is not stable.  Over ten years, it has extended its control and improved in some areas, but it remains very dysfunctional.

The Problems Facing the Afghan Government:

Afghanistan’s government has four main problems: The Taliban insurgency, government corruption, a weak economy, and mistrust between Afghans and international forces.

Taliban Insurgency:

The Taliban government fell shortly after the United States invaded.  However, the Taliban wasn’t completely destroyed and most didn’t surrender; they simply fled south into neighboring Pakistan.  Over the last ten years the Taliban have been launching attacks from Pakistan and remote bases in Southern Afghanistan.  These attacks target foreigners and anyone working for the Afghan government.  The attacks are also extremely brutal.  Recently, the Taliban bombed a hospital which held patients recovering from a different Taliban attack. 

Short of invading Pakistan, there is not a whole lot the Afghan government can do to stop attacks.  If the United States halts drone strikes within Afghanistan and Pakistan, their efforts to stop attacks will be further compromised.

Currently, the Afghan government is trying to negotiate a truce with the Taliban because the Taliban holds sway in Southern Afghanistan.  This is difficult because the Taliban is very fragmented.  One can never know if they are actually talking to the person in charge.  Further, the Taliban state that they will not negotiate until all foreigners have left the country.  Accordingly, negotiations have not been very successful.

This problem does not seem to be going away.

Government Corruption:

The Afghan government is insanely corrupt.  The elections that followed the fall of the Taliban were marred by fraud.  Most elected leaders use their offices to pay off the people who helped them get elected.  This is called patronage and the result of this system is that government posts are filled by people close to the elected leaders and not by people who are actually qualified.

Further, the executive branch, (the President) is absurdly strong.  This is because there is not a strong judicial branch (courts) or legislative branch (congress) that can keep the President in check.  Thus, the President can routinely engage in corruption.

The flow of billions of dollars from the American government also breeds corruption.  If you received unlimited money from someone you didn’t like, you probably wouldn’t follow that person’s exact directions either.

The courts are not transparent and are viewed as favoring the rich.  This is a huge liability because the Taliban offers a simpler religious court which is much easier for an illiterate farmer to use.  If you find American courts confusing, imagine how confusing they would be if you couldn’t read or write.

This corruption leads average Afghans to distrust the government.  Further, this plays into the Taliban’s hands because they portray themselves as the religious and therefore “moral” alternative to corrupt politicians.

There will be an election in 2014.  The results of this election will have enormous consequences for the country because 2014 is the year that Obama plans to leave Afghanistan.  However, political parties are weak and voter registration is insufficient.  The election is not expected to be smooth. 

A Weak Economy:

When the United States says it is rebuilding Afghanistan, the United States means it is starting from scratch.  War has been raging in Afghanistan for 30 years, so the U.S. is not just rebuilding from their war, they are rebuilding from the three previous wars as well.

The average Afghan is poor.  Rates of illiteracy are high and Afghanistan’s main industry is heroin production.  Afghan life expectancy hovers around 44 years old.  The corrupt policies of the Afghan government are not helping the situation.  Currently, the total budget of the country would not even support the Afghan government's army.

Mutual Mistrust:

The Afghan people are weary of American forces.  American drone strikes targeting the Taliban often result in mass civilian casualties.  The cultural differences are intense and incidents of Koran burnings at U.S. bases have made things worse.

By the same token, the Americans distrust Afghans.  In addition to suicide attacks and roadside bombs, there have been several incidents of newly trained Afghan soldiers turning their guns on the very Americans who trained them.

Basically, neither the Americans nor the Afghans are happy about the American presence in Afghanistan.

So What Now?

Clearly the United State can’t support the Afghan government forever.  However, it is equally apparent that after the United States leaves, there is a strong chance the Afghan government will fall apart.  If the government falls apart, or the Taliban regain control of the country, much of what we fought for will be for naught.

Bottom line: There does not seem any way to “win” Afghanistan.