Monday, August 11, 2008

Georgia and Darfur - America picking which children should die

Over a decade ago I was living in Georgia, or Gruzya [rough phonetic version of the Russian name], as the nation went through a similar difficult struggle. During my time there I came to learn of the people and their daily struggles, and appreciate their strong wills and big hearts.

I went to Gruzya back in 1991 as part of my work for an import-export company. I had been living in Moscow prior to that time. I was living in a hotel one block away from the President’s mansion, the President at the time being Zviad Gamsakhurdia. My purpose in the country was to create a casino, and to sell food, clothing, and other goods if possible. I say if possible because there was a huge unrest in the small nation – student protests of Gamsakhurdia were common and growing. So I tried to meet with both Gamsakhurdia and the rebels, to sell them each the foods and clothes the nation needed. Picking sides was not an option.

Not too long after my arrival full, complete civil war started. The rebels took down Gamsakhurdia in short order, only to have him go to the north and rally the people to “pick up swords and pitchforks and fight”, which they did.

When I left this nation it was a difficult day. I was smuggled into the last flight leaving for Moscow, in the area underneath the seats of the pilots of the plane. It’s an experience you may have seen in movies, but is nowhere near fun to actually living through.

I say all this for a couple of reasons. First is the fact that Georgians are notorious for their strong wills. Once they make a decision they are not known for changing their minds. They are known as fierce fighters, and in my opinion, they can be a bit crazy. I recall when they were firing RPG’s across the street at each other during the civil war; and on another occasion the telegraph office (which was also the main telephone bank for the capitol and largest city) was blown up to prevent the other side from making any calls – but also removing the ability of anyone to be in contact regardless of side in the conflict.

So if the Russian Army thinks this will be a quick fight they are out of their minds. Georgians will defend their homes to the last, and many are combat trained or experienced due to the not so distant civil war.

Another reason is the fact that a major pipeline for oil runs through Georgia. That means millons of dollars that can be used to improve roads, build the infrastructure of cities, and provide for the general well-being of the populace. That’s money Russia has always wanted.

If the pipeline is shutdown, crude oil prices will jump up. So far there has been no evidence, yet, or attacks on the pipeline but it’s still early in the fighting.

Russia has been relatively quietly rebuilding the old Soviet Union. Posturing has occurred with airspace infractions versus other nations (especially those in NATO), and constant arguments with the U.S. over military strenght have happened with increasing frequency in the past few years. Several of the former Soviet nations have commented on the aggressive stance that Russia has taken recently.

But lastly I want to note something else.

It is estimated that some 2,000 people have died in the past 3 days. Almost all of them are civillians and the numbers are growing. Coverage of the conflict has been non-stop on every major news media in the U.S. President Bush, Senator John McCain, and Senator Barack Obama have all made comments and asked for an end to the violence. The United Nations is getting involved, and Europe is cautious of every news report.

But over the last 4 year more than 250,000 men, women, and children have been murdered in a genocide. This is occuring right now in Darfur, Sudan. The major U.S. media as effectively blackedout the news. President Bush, Senator McCain, and Senator Obama have all had nothing to say about the attrocity. Europe hasn’t shrugged on the events. The United Nations has sent a paltry number of troops that have done nothing to quell the violence.

In fact China is a major source of funds for the Sudanese government, thus funding the genocide. Not to be outdone, America is also doing business with Sudan and also helping with the murder of innocents.

In fact the U.S. Congress has had legislation sitting for years that would prevent at least the Government, if not private business, from doing business with (and thus funding) the Sudan. HR 180 IH has been languishing, and every American politician seems not to care.

I enjoyed my time in Georgia. I got to know a few very good people. I lived there and lived the culture that can only happen when you are part of a culture – not just visiting. I was welcomed into homes as a guest from God – which is the translation of the word guest in their language. I lost a couple of dear friends in the civil war, I fear I may lose more in the current fighting.

Yet, I note the absurdly different manner in which the people of Georgia are being treated by the news media as opposed to Darfur. Darfur has lost roughly 1/16 the population of the entire nation of Georgia in 4 years and counting, and it does not get 1/2 nor 1/100th the attention that has been given in just 3 days.

How can we as Americans profess a desire to help those in need, and make demands of foreign governments when we at the same time ignore and willfully allow another foreign government to commit wholesale murder?

I have live in Georgia, and I do not wish the people any harm. I respect them and their culture. I want them to live in peace. But I want no less for a nation and a people that have suffered far longer and far more. Africa may not be located in the same area as Georgia and Russia, but a child is a child. No child should suffer a cruel death because of war, starvation, or the beliefs of a few.

Should we stand up and oppose the conflict in Georgia today? Yes. And we should equally, if not more strongly, stand up and say the same or similar things to Sudan.

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Monday, May 12, 2008

Looking across the pond to ride the bull

Over the years that I spent as a stockbroker I learned that you should never get so tunnel-visioned as to only see one aspect of a market. I’ve known many brokers that solely focused on technology, or banks, and so on. When their sector was in trouble, they and their clients had little safe haven until the market turned. Few things are as troubling as being over-weighted in a sector the market hates.

Conversely I have known brokers that were able to see opportunities driving down the L.I.E. (Long Island Expressway) – he noted that over a couple of months a bank with little exposure in the northeast was suddenly increasing it’s advertising and deduced they were poised to start making mergers and enter that market and was right. I have even seen brokers look at an industry and see the future potential. Such as with breakthroughs with various drugs, or the growth of the internet back in the early days of AOL.

I even saw the potential of satellite radio back when Sirius Radio (then called CD Radio) first got its FCC license for the frequency they use. [I did not get the pricing exactly correct at various points in the time I recommended that stock, I have to be honest.]

So in that vain of thought I occasionally watch what is happening across the pond and the globe, even though I am no longer a broker. And I am noticing that over in London there is an interesting wave of commonality that is unusual to me.

Lately there have been a lot of similarity in the British and American markets, which is beyond the usual trend. Of course there are many reasons for this. The similarity in our systems of government, the shared culture and past. The good will between the nations and the numerous multi-national companies that we share.

Now with all this said I have to wonder what this synchronism of market activity will mean when weighed against the advance of the Euro and the European Union? Will the effects of higher oil prices, and lower levels of alternative fuel sources trigger an adverse effect on London, and thus New York? Will the ripple effect of high transportations costs for British and American goods hasten the decline of the Dollar and Pound? And if this is correct, how long before such an effect is seen in London and then Wall Street?

So I suggest that for those looking for the next phase of this current market cycle here in the U.S. the place to look may not be in the American markets. Look across the pond to our cultural cousins and look at the big picture. Who knows what you might glimpse.

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Friday, February 22, 2008

Green energy advances in Europe and Britian, but lags in U.S.

The move towards global green energy usage took a few steps forward today with announcements by the EU and Wales. These moves are important not only because of their attempt to reduce carbon emissions but also the diversified sources they seek to gain renewable energy from, and the economic stimulus they plan to implement in the process.

The European Union earmarked almost €9bn for investment in green energy projects. This is to be distributed to proposals and projects that research, develop and improve efficiency of alternative energy sources and the reduction of carbon emissions. The net goal is the reduction of dependence on fossil fuels. One such example of this is the Danish project to turn the island of Samsø into a carbon neutral community.

Across from Europe in England similar actions are now planned in Wales. The goal is for Wales to be self-sufficient with renewable energy within 20 years. The main source of the energy would come from wave and tidal energy with "minimum environmental distrubance". In addition to this wind turbines are another planned source,

“Wind presents great economic opportunities and the potential for Wales to become a world class centre of excellence for the development and manufacturing of low carbon technologies” - John Woodruff, British Wind Energy Association chairman.


But in the United States there continues to be large debate on which renewable energy sources to use. Nuclear and coal energy sources are considered part of the renewable energy portfolio. And a bigger issue looms over the proposals that have been made.

“However, the plan stops short of deciding the sticky question of how and when utility companies will be regulated in the future.”


Reluctance of lawmakers to adopt timeframes and standards bog down efforts to improve the green energy capabilities of States and communities across the nation.

Green energy and renewable energy sources are economically feasible alternatives. The European Union and other initiatives prove that. So efforts to generate those same alternatives in the U.S. need to receive more than debate and exclusive responses.

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