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Dr. Vladimir A. Masch

Dr. Vladimir A. Masch

Posted: June 16, 2010 11:13 AM

Staying in One of the Catbird Seats

What's Your Reaction:

In order to stay in one of the catbird seats of the 21st century, and to protect the democratic components of the world order, the US has to do two things: renew its political system and/or its decision-makers, and change its economic system.

Since the current elite has the veto power on changes of the political system, these changes are unrealistic. To replace a sufficient fraction of the elite, I proposed in my last blog to create a Worker party, one that would not take any campaign contributions from corporations.

There was a strong reaction to that proposal. Naturally, there were comparisons to the communist party, to the fascist party, and so on. But the predominant reaction was positive, with some valuable contributions. I fully support proposals such as limiting the costs and length of campaigning. It is the absence of such limits (together with other factors) that makes the US political system corrupt, outdated, and inefficient. In turn, that absence is partly due to absolute, 110 percent adherence to the doctrine of free speech. Well, my first amendment is that, in human society, any absolutism is dangerous. As one reader remarked in his reaction to my last blog, Georg Hegel used to say, "Everything, taken to the extreme, becomes its opposite." If not adhered to 110 percent of time, dialectics is a very useful approach.

The economic system -- the unbridled free market -- recommended by "mainstream" economics is pure poison for the US; especially where international trade and the financial industry are concerned. Today, we see the results and they are far from final yet. This is perhaps only the first inning.

We are not moving in many necessary directions either. On June 14, in the Investor's Business Daily, Daniel McGroarty declared that "there are 54 metals and minerals on which we depend on foreign sources for more than 50% of our annual supply... The U.S. produces precisely zero kilograms of ... ['17 rare earth elements. Or bauxite. Or alumina. Or indium, niobium, vanadium or tantalium'], relying 100% on foreign imports. And these exotic elements are just a sampling of the longer list of 36 metals and minerals for which we are 100% dependent on foreign sources of supply." China "presently supplies 97% of the world's demand" of rare earth elements and recently has announced that it is ratcheting up export control.

Foreign oil imports are "only" 57%. What a relief!

In terms of civilian use, we may survive without these rare earth elements. But, as the IBD article emphasizes, "in the national security sphere 'doing without' ... is not going to be a feasible option."

"What are we doing right now...? In case of rare earths, the Defense Department is studying the issue, so is the Department of Energy. ... But in the case of the 50-plus other materials for which we're more than 50% dependent, we're doing nothing, thus far."

This comes entirely from IBD, a source that only a crank could accuse of favoring government intervention in economic activities.

I do not think that I need to add anything here. But please do not panic now. Of course, President Obama's "soft diplomacy" would get us so many reliable friends that we would not need enemies. Sure, sure.

 
 
 
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mommadona
I paint. I blog. Therefore, I am.
01:47 PM on 06/17/2010
Anyone else in the US getting sick of all these 'reformed zealots' who've sprouted up amongst US since the collapse of the USSR?

I believe the US taxpayer funded (bet U didn't know THIS ) IRI.ORG propaganda arm of the "freetrade John Birch arm of the GOP run by John McCain has provided a 'theatre of experiment' for the likes of Orly Taitz and this gentleman.

"Thanks, but no thanks " ~ Uncle Sam & Ms Liberty
04:30 PM on 06/17/2010
If this person talks about me, all this is a dirty lie. I never was connected with any of those persons or organizations, and never got a single dollar from any of them. And I never was a proponent of free trade, too. Even in the 1960s, and even in the USSR, I imposed on my model of long-term planning of the soviet economy a constraint on the deficit in international trade -- a "balance-of-payment" constraint. The "mainstream". 45 years ago. American free-trader economists do not impose such a constraint even now -- which is a serious economic misbehavior (to speak very politely), which substantially led to today's crisis.
I do not know with this person mixes me up with, but I never -- until 2004 -- paid any attention to general economic discussions in this country. For the past 40+ years, I was completely immersed in perfecting the techniques of my system of policy-making under radical uncertainty. In 2004, when I completed the system, I immediately became an opponent of unbridled free trade and globalization. I proposed a system of "compensated free trade", which would protect the US from predatory imports etc. I proposed it in a letter to Business Week" in December 2004.
Vladimir
05:28 PM on 06/17/2010
(Because of a 250-words limitation, I had to split my reply. This is the second part.) In June 2005, together with my late co-author, Mark Perlman, the University Professor Emeritus of Economics of University of Pittsburgh, I submitted a Statement for the Record for the Senate Committee on Finance on the US-China trade -- against its present form In February 2007 I published an article about my "compensated free trade" proposal and the China trade in Business Week Online. Since then, I published two more articles on that subject, and my 51-page article on the subject is about to be published soon in a scientific journal.
To call me being ever a proponent of unbridled free trade is either completely crazy, or mixing me up with somebody else, or an intentional dirty lie. I am, and always have been, its mortal enemy. Once again, I never even heard of any of these people/organizations. (Except reading about McCain and the Birch Society. As a matter of fact, I mentioned in my Memorial Day blog that "I think with horror what would have happened if McCain won the 2008 election.")
I should also mention that I never was and never would be a "reformed zealot". I created my own social and economic philosophy starting from the 1940s. I have left the USSR with that philosophy and it is only complemented since, not changed, since then. I know more, but i do not think differently.
Vladimir
08:58 PM on 06/16/2010
Note this update; we have Rare Earth Resources right here in the USA!

U.S. Rare Earths, Inc. initiated a review of strategic alternatives to enhance shareholder value, including those involving a possible merger, sale or other transaction. The Board of Directors of the Company has engaged Pope and Company Limited ("Pope") to act as the Company's financial advisor.

U.S. Rare Earths, Inc.’s CEO, Edward Cowle, explained that awareness by the U.S. of Chinese dominance in the rare earth element (“REE”) market continues to increase the value of the Company’s REE reserves. The Government Accountability Office report issued in April demonstrates the need for the DoD to mitigate REE supply chain risks. Cowle stated, “The GAO has recognized U.S. Rare Earth's resources as a key component in the effort to expand domestic production of light and heavy REE's.”

According to reports by the US Geological Survey the Company’s mining claims of major vein deposits of REEs in the Diamond Creek and the Lemhi Pass areas of Idaho and Montana are: one of the two largest reported historical estimates of REEs in the U.S.; one of only six proven, substantial deposits of REEs in the world outside of mainland China or Chinese control; and The only significant U.S. REE deposit that has heavy REE (“HREE”) concentrations.

“We are committed to finding a partner or buyer that has the financial capability and resources to ensure that the properties are developed as rapidly as possible,” said Cowle.

http://www.usrareearths.com/eco/
09:29 PM on 06/16/2010
Great. Vladimir
05:01 PM on 06/16/2010
The political system in this country, the participating democracy, has been overtaken by the big corporate interest and if you like, the military industrial exporting complex. The right wing is too conned in to realize this and the supreme court officianados argue that the consititution would be violated if corporations could not exercise their free speech. This is all propaganda. And if there is any concensus building issue amongst the interested, it is throwing the corporate crooks out.
So... I believe this can be done. The tea party, the liberals, and the greens unite.
04:24 PM on 06/16/2010
Great post! Again, I find myself in agreement with the solutions and the concerns. I do, however, find myself somewhat pessimistic about the prospects of proactive solutions. Our current series of crises are going to have to get worse before we can dislodge the existing power-structure; not to mention, educate millions of information-starved Americans.
jhNY
Mercy.
02:49 PM on 06/16/2010
"In order to stay in one of the catbird seats of the 21st century, and to protect the democratic components of the world order, the US has to do two things: renew its political system and/or its decision-makers, and change its economic system."

So I guess now would be as good a time as any to say goodbye to that catbird seat.