New novel out in paperback!

Dream Crossing, A Novel by Matthew Vossler

Duncan Wright, a bright and promising eleventh grader, has a compelling reason to learn the craft of magic. He reads all the books in the local library on the subject, but when he begins practicing astral travel at night, he discovers this kind of magic is no parlor game.

One evening, in an attempt to exact revenge on Craig the school bully, Duncan puts his magic to work. Duncan crosses into the other boy’s dream to confront him in the astral plane. Before he finishes his plan to exact revenge, he becomes caught in Lastra, a land on the brink of war.

In this strange new land, Duncan is a foundling who strives to learn the secret to returning home. But, the ancient legend reveals only the possibility of a return and the path home remains a mystery. Immersed in magic, intrigue, war, and love, Duncan has to live up to a prophecy, or forever be imprisoned in a land quickly descending into darkness . . .

To find out how to get a copy of your own, go to: http://www.dreamz-work.com/products/Dream-Crossing-by-Matthew-Vossler.html

The Judgment of Paris – Aphrodite and the Trojan War

What happens when spitefulness, vanity, greed, lust, and anger all join forces? We can learn a lot about ourselves today by studying myth and history.

In Greek mythology, a hero is a Demigod, the child of a God or Goddess and a human; a half-blood. Some famous heroes are Achilles, Helen of Troy (the daughter of Zeus and Leda), and Heracles. (1) All of them get caught up in the Trojan War.

The story of the Trojan War and how it began is one of the most famous stories of Greek mythology. It begins when the Gods are gathered for a wedding. When Eris, the Goddess of discord is banned at the door from entering the wedding festivities, she tosses her wedding gift through the door. It is an apple inscribed with the words, “to the fairest.”

This action sets off a dispute among Hera, Aphrodite, and Athena. They each believe the apple was meant for them. (2) When the three goddesses finally go to Zeus to make a judgment, Zeus, not wanting to incur the wrath of the two who aren’t judged as the fairest, sends Hermes to find Paris and requests that Paris make the Judgment.

The three goddesses each offer Paris bribes to sway his judgment, but it is Aphrodite’s promise of the love of Helen of Sparta that wins Paris over. Helen was considered the most beautiful women in the world. Paris judges Aphrodite as the fairest.

Subsequently, Helen falls in love with Paris, a Trojan, and the two elope to Troy. When Menelaus, Helen’s husband and king of Sparta finds out, the war between Sparta and Troy is inevitable.

The Trojan War not only pits humans and heroes fighting each other, but the Gods and Goddesses are also involved, picking sides, assisting the humans and heroes, and fighting each other as well.

Troy eventually loses the war, Paris is killed, and according to the story, some of the Trojans who survive after the burning of their city, wander until they come to “Alba Longa, which was where the Roman civilization began 300 years later.” (2)


Sources

1. http://en.wikipedia.org/wiki/List_of_demigods
2. http://www.buzzle.com/articles/story-of-the-trojan-war.html

DWP now "live" to take pre-orders

Dreamz-Work Producitons, LLC is now offering several books with discounted e-Book versions as well as a music soundtract that goes with the e-Book version of my Dream Crossing fantasy novel for an added musical experience while reading on a laptop, Kindle, or your iPhone/iTouch.

Go to: http://www.dreamz-work.com/

Exploring the Casimir Effect

Introducing the Age of Flying Carpets, Time Machines, and Interstellar Travel

The title sounds very exciting doesn`t it? Well don`t start saving your pennies to buy one of the first lines of flying carpets on the shelves of your favorite gizmo store. Don`t be fooled by science hype; it will be a long time before any of these promises truly come to pass.

On the other hand, I do believe that they all will be a reality sooner or later. These things and many more will become practical because of a scientific theory that is fast proving out in lesser applications and grand experiments. This theory is known as the Casimir effect, and it is part of the whole quantum mechanics/nanotechnology revolution.

The science is named after Hendrik Casimir, a Dutch scientist who predicted a phenomenon in 1948, that, an attractive force exists between two conducting metal plates. (1) The implications went a little farther when it was proven that indeed there is a force detected when two metallic plates are placed facing each other, and even so inside a an absolute vacuum chamber.

This new discovery was followed by experiments that showed that an absolute vacuum isn`t really empty, but is actually bristling with energy. It was dubbed zero-point energy, " and accounts for all sorts of speculation about the possibility of interstellar space travel. Since apparently there is virtually no shortage of this energy available, the idea is to find a way to covert zero-point energy into a system that will propel a space vehicle. Space ships designed with such propulsion, could conceivably travel through space indefinitely.

It was also discovered that Casimir forces can be manipulated to both attract and repel depending on the configuration of materials used. An obvious implication here is that if you can make a field of repulsion strong enough, you could make levitating devices, ala the flying carpet. Some scientists theorize that such repulsion can be had even at great distances.

Another extrapolation of these discoveries is that the Casimir effect can be used to produce a locally mass-negative region of space-time, and suggested that negative effect could be used to stabilize a wormhole to allow faster than light travel. " (2) Some, including myself speculate that wormholes can be converted into time machines by taking advantage of the natural time warping properties that come with the speeds and distances involving faster than light travel.

Now if you think that this is all just science fiction, take note that the 1960`s television series, Star Trek, " inspired a whole generation of technology buffs to go to school, major in electrical engineering and computer science and go on to make many of the fictional gizmos a reality.

As for the Casimir effect, well, the U.S. Department of Defense is now funding research in this area. This fact alone might speed up the time tables for the day when you will go out with your family or friends to the park while riding upon a levitating carpet.

Sources and Resources

1.Berger, M., September 19, 2008, Nanowerk, Nanotechnology, the mysterious Casimir Force, and interstellar spaceships, " retrieved on 11/21/08 from http://www.nanowerk.com/spotlight/spotid=7337.php

2.http://en.wikipedia.org/wiki/Casimir_effect

3.Highfield, R., August 2007l, Physicists have `solved` mystery of levitation, " Telegraph.Co.uk

So You Want to Be a Ghost Hunter?

This is just one of the many new titles that DWP will have coming out this Fall. Maybe you’d like to be a Jedi Knight, or perhaps tap into the mysterious knowledge of the planets like Nostradamus did a thousand years ago. So you’re an aspiring actor of the stage or for the movies – We have a title coming out that gives new meaning to the idea of acting on your dreams!

New information for a new age! That’s what DWP is about. Timeless wisdom that was forgotten or discarded, now updated and validated. Seeing the old through the lens of the new and the new through the lens of the old…

Stay tuned for these and more to come! DWP is catching on!

Order of the Jedi

Jedi is recognized as an official religion in Canada

Starting a religion and being recognized as such in Canada is not the same as what we are used to in the United States. There are more barriers to entry to get this done. In the United States, pretty much, if you say you are a religion, you are, and it’s not too difficult to go through the process of getting 501c3 status as a non-profit religious organization.

The leaders of what is now “Order of the Jedi, Inc.,” were extremely happy to announce in February, that on January 12th 2009, they became officially recognized by the Canadian government as a religious body.

According to their website, “in Canada the government must give approval before the Provinces will even consider recognizing you. We now Move forward in our goals to complete our recognition within each province.” (1)

Although fractious among many groups, the Jedi movement is world wide and has been growing steadily since George Lucas made the fictional Wizards famous in his Star Wars movies saga that began in the 1970’s. The groups differ in their approach, some emphasizing the religious aspects of Jedi philosophy, while other’s take a more hands-on approach, teaching and training in energy work and mysticism.

The order of the Jedi Canada takes the former approach, and while they do not rule out the abilities of some to manipulate mystical forces, they focus on ethical and moral teachings. They are currently working steadily on a body of Jedi scripture based on the writings of George Lucas and the Star Wars franchise.

Most of those who call themselves Jedi or associate with it, are quick to point out that all religions are at the core, based on literature, and Jedi is no different in this respect. I’ve said it myself, that Lucas put a fictional framework around universal truths and good moral philosophies that have been around since the beginning of time. He gave them a name; Jedi and “The Force.”

Citations:

1. http://www.orderofthejedi.ca/118612/html/page.html

Obama Open to Different Religions and Spiritual Views

U.S. President Obama meets regularly with leading figures of all religious traditions as he fulfills the promise of creating more tolerance and healing among feuding factions throughout the USA and world.

Obama consults with the likes of Deepak Chopra, Jean Houston, Marianne Williamson, and many other New Age gurus, as well as leaders of traditional religions such as the Greek spiritual leader, Varfolomei and Imam Hassan Qazwini, who has close ties with the spiritual leader of Hezbollah. Obama is drawing fire from China for his plan to meet with the Dalai Lama in October.

A firm believer in the importance of science and separation of church and state, Obama has at once become the object of speculation as to the authenticity of his own religious beliefs while giving hope to those who are members of minority religions that their government is not becoming something of a puppet of the dominate religions of the land, namely, right wing Christian sects.

Today, President Obama has just given a speech in Cairo, Egypt where he was warmly received by a crowd as he talked of Middle East peace and the great contributions of the Islamic religion. He even received a standing ovation as he drew a stark line between the peaceful religion of Islam and the extremist factions such as “al Qaeda as a common enemy to both the U.S. and Muslim nations.” (1) Reaction from Israel has been mixed; some taking the speech as a good step towards peace, and other’s, like those who are settled on the west bank, saying that Obama wants to throw them out of their homes.

In response to President Obama’s request to learn what is happening to our earth and its inhabitants, many New Age spiritual leaders are creating a petition to send to the U.S. President. The group identified eight “opportunities for action,” including restoring ecological balance, encouraging conscious media, building global community, and working for integrity in commerce. (2).

Combined, these acts, attitudes, and policies by the new U.S. President are rare, hopeful signs of good things happening and better things to come.

Sources:

http://www.topix.com/world/turkey/2009/04/u-s-president-meets-with-spiritual-leader-of-greek-community-in-turkey

http://gatewaypundit.blogspot.com/2008/05/barack-obama-meets-secretly-with.html

http://blog.taragana.com/n/china-says-obama-should-not-meet-with-the-dalai-lama-in-octoberl-34994/

WTOP News Radio Washington, DC

Citations:

(1) http://online.wsj.com/article/SB124409999530984503.html
(2) http://loveasalifesyle.ning.com/forum/topics/obama-open-to-spiritual

THE COFFEE OR THE CUP

I feel 'stressed' . . .


A group of alumni, highly established in

Their careers, got together to visit their

Old university professor. Conversation

Soon turned into complaints about stress

In work and life.


Offering his guests coffee, the professor

Went to the kitchen and returned with a

Large pot of coffee and an assortment of

Cups - porcelain, plastic, glass, crystal,

Some plain looking, some expensive,

Some exquisite - telling them to help

Themselves to the coffee.


When all the students had a cup of

Coffee in hand, the professor said:

'If you noticed, all the nice looking

Expensive cups were taken up, leaving

Behind the plain and cheap ones. While

It is normal for you to want only the

Best for yourselves, that is the source of

Your problems and stress. Be assured

That the cup itself adds no quality to the

Coffee. In most cases it is just more

Expensive and in some cases even hides

What we drink. What all of you really

Wanted was coffee, not the cup, but you

Consciously went for the best cups...

And then you began eyeing each

other's cups.


Now consider this: Life is the coffee; the

Jobs, money and position in society are

The cups. They are just tools to hold and

Contain Life, and the type of cup we

Have does not define, nor change the

Quality of life we live. Sometimes, by

Concentrating only on the cup, we fail

To enjoy the coffee provided us.'

Brew the coffee, not the cups .. Enjoy

Your coffee!


'The happiest people don't have the best

Of everything. They just make the best

Of everything.

A related Link: http://storyofstuff.com

Ghost Stories

I live just outside of our nation's capitol, and haunted buildings are a part of the rich history of Washington DC. One such is the Octagon House, "built between 1798 and 1800, by Dr. William Thornton, the architect of the U.S. Capitol...for John Tayloe...at the prompting of George Washington."

In grade school, after a field trip to the place, my friends came back with some stories. One told me that he felt a chill breeze and odd smell where they should not have been. But the weirdest, was story of the door to a library, which was always kept locked. When the tour passed by, the door opened on its own. The guide quietly stopped, walked over, and closed the door, relocking it. When asked, she just said, "That happens sometimes."

Most haunted places have some history of tragedy, and the Octagon House is no exception. "Tragedy struck the Tayloe family before the War of 1812. One of the colonel's daughters had fallen in love with a British officer, but Tayloe had denied permission for a marriage. After an argument, the daughter stormed up the spiral staircase. She never reached her room. Whether she threw herself down or slipped is not known, but the family heard her scream. She fell through the stairwell to the floor below, where she died."

"A second Tayloe daughter died in the same place, in similar circumstances, after the war. She also clashed with her father over marriage, but this sibling ignored her father and eloped. According to legend, she was pleading with him for forgiveness and slipped on the infamous stairs, fell and broke her neck."

Another ghost story came to me from a friend who had a not so pleasant encounter with a spirit, while parked with a girlfriend at one of the Manassas, VA (Civil War) battlefields. He told me they both felt a strong presence and added with conviction, "that thing wasn't human!" Feeling like he was having a heart attack, he drove away as fast as he could. Afterwards, for several days, he felt an energy surrounding him that others could feel too. He said, "I have a new found respect for battlefields." After informing police, they replied, "It has been a while since that thing had caused problems." I personally believe that it is the "Spirit of the Battlefield."

Sources:

Washington DC, Octagon House, Retrieved on July 17, 2007 from:
http://www.nps.gov/history/Nr/travel/wash/dc22.htm

Time Travel Channel, Spooky Cities, Retrieved on July 17, 2007 from:
http://travel.discovery.com/convergence/hauntedtravels/interactives/washingtondc/octagon.html

Parenting, Part II

By Matt Vossler

Life in this Century just seems to get more and more and more complicated. The Internet has made so much available to so many people including our kids. When there once were only a few drugs that could mess up our children's lives, now there are dozens. And every time you blink, it seems a new kind of disease is being declared, along with a host of drugs and other treatments for it.

This brings me to my subject. My son really likes his Nintendo, I mean he really, really likes it. He is only six years old; could he be addicted to video games? I heard on the news a few weeks ago, that video games addiction is a new problem for kids.

Then I wonder if this is so different from the old days, when as a kid, I didn't want to come inside for dinner because I was having so much fun playing with the neighborhood kids. I guess that video games are the new "kick the can." We got exercise playing outside for hours, so what do these new kinds of games give to our children? A quick Google asking this question, got the following, from http://dede.essortment.com/kidsvideogames_rayj.htm:

"Video games have many benefits to children which most of us never even think of. Video games promote good eye-hand coordination, problem solving skills, critical thinking and competition. There is always competition in a video game, whether it be against the computer, another player or your own self. Competition is healthy in urging us to do our best and succeed. Critical thinking skills are important in school as are problem solving skills. Video games are also beneficial in introducing children to computers and while not the most popular games among children, there are many educational games."

The advice given at that web-site is quite predictable. To limit the amount of time your child has for playing video games and watching T.V., and that if you child shows irritation at being told to stop playing, then they are probably spending too much time with them.

Every parent has to work out limits for their kids, and this is not a new challenge. The new challenge I think we have today is that so much is available to kids now, including information, cheep toys, sexual enticements, drugs, guns, gangs, we end up playing a new game of our own, called wack-a-mole.

I remember my parents having to tell us not to play ball in the house over and over again, and yes, there were a lot of ways we could get ourselves into trouble, but I don't think they had to worry about online predators, huffing and dozens of other drugs, teens talking on cell phones while driving, making sure your child is not text messaging their friends all night, and I know I've just mentioned the tip of the ice-burg.

Long story short, the new Century is fraught with many new challenges for parents, and I believe that any and all ideas that can give us an advantage as parents, should be considered, including the stay-at-home mom or even dad model or any other. I encourage you to do a Google on parenting resources and see what you come up with. It's easy, and you just might find something pertinent to your own situation.

Parenting I

Parenting, without a doubt, is the single most important task given to us on this planet, and one of the most difficult. Forget the "Mommy Wars," that's just unproductive bickery born of guilt and blame. Two things we don't want to perpetuate and sets a poor example for the kids.

The SAHD (stay-at-home dad) model is one way to bring up kids well, and I think it is a good way, personally. Here I am in the roll of a SAHD, and I am realizing that this is really what it all about...for me. To be a dad, to be the best dad I can possibly be!

Someone wrote, "It takes a Village." I can't argue with that, but I would add that a loving home with caring parent(s) can make all the difference in the world, in a world that really needs a difference to be made in.

Back to School

Back to School

The summer was good for the kids and I. We went to the beach, went sailing, took a nature cruise, held a regular playgroup, did horseback riding, martial arts and even enjoyed the Renaissance Festival. So I was surprised, albeit pleasantly, that both of my children were excited about going back to school. Needless to say, I too was greatly looking forward to having time to get a lot of things done that were backing up, or at least having been put on the back burner.

Getting ready, of course is hectic to say the least, but I am moving into the new school year with renewed hope. Martin's teacher has many years of experience and Victoria is getting the extra help she needs. I will be coaching Victoria's soccer team and will be keeping up with the martial arts that Martin and I have been involved in.

I hope all of you readers who are parents are having similarly good experiences with your children, whether it's back to school, taking care of a new baby, or sending a young one off to college.

If you are having any trouble, talk about it with other parents, don't sweep it under the rug.
Denial is only a way to delay getting help and can make matters far worse in the long run. There now, I've gotten preachy. Sorry! Have a great school year!

Be Scared!

Separation of Church and State in 2007

I do not have a JD, nor am I thoroughly versed in the all of the arguments for or against issues involving the separation of church and state. I do have some observations in regards to our first amendment provision that “Congress shall make no law respecting an establishment of religion, or the free exercise thereof.” It seems to me that for a people to be free, this is an essential ingredient to have built into the Government. Much of the U.S. Constitution deals with preventing abuses of power, and nothing scares me more that the thought of a Government that can wield the power of a religion over its people. The Taliban comes to mind.

So where do we draw the line when it comes to how far our Government can go in promoting, or even allowing religious expression in the public arena? I believe it is important to keep in check, those whose agenda may go far beyond allowing prayer in public school, or holding official, high-level meetings in Government buildings where discussions of a religious nature are the focus (this is happening under the current executive administration). It may be a cliché, but it really is a slippery slope. What does it say about our democracy, if we put children in our public schools in a position of being with a group of peers who are praying to a certain God, and in a certain way, that goes against the child’s home religious life or personal beliefs?

It is immaterial that I believe that prayer is a positive thing for individuals and society. To me, the idea of respecting each person’s freedom to express or not to express a faith or believe or not to believe in a Deity, trumps my any of my own subjective framing. More troubling, is that introducing such a precedent in our society gives fuel to those who would, given enough power, eventually change the U.S. from a democracy to a theocracy. And, believe it, there are those who would! This would mean the death of what the Founding Fathers had in mind for the United States. So the next time you see atheists on T.V. defending their rights to not believe in God, you might be wise to consider, that in a round about way, they are also defending your right to believe in your God.

On Werewolves

Being a full moon tonight, I thought a little about werewolves to be apropos.

In the Middle Ages some accounts held that "in Prussia, Livonia, and Lithuania, although the inhabitants suffer from (common) wolves...this is not regarded by them as much as what they endure from men turned into wolves." The men turned into wolves, would inflict terrible atrocities upon both citizens and their ungulates. They were differentiated from natural wolves partially by the drinking of beer from the cellars and their piling "up the empty casks one above another in the middle of the cellar"

Here is another account of the were: "The wife of a nobleman in Livonia expressed her doubts to one of her slaves whether it were possible for man or woman thus to change shape. The servant at once volunteered to give her evidence of the possibility. He left the room, and in another moment a wolf was observed running over the country. The dogs followed him, and notwithstanding his resistance, tore out one of his eyes. Next day the slave appeared before his mistress blind of an eye."

Legends, yes, but it does make one wonder. I for one am glad I where a silver ring.

Sources:

Gould, Sabine B. The book of were-wolves, 1865. Retrieved on 7/30/07, from: http://www.sacred-texts.com/goth/bow/bow06.htm

Recalling Summer

Recalling Summer
A poem by Matt Vossler

Summer Nights and starry lights,
Full Moon rising sweet smells of flora,
Aquarius this one, its lightning strikes,
Fanciful dreams bring magical flights.

Rich living and love abounds,
Lovely feelings and summer sounds,
Be still and know,
God makes her rounds.

Life makes her stand,
Summer's recall,
Rich is the fare,
Until the fall.

No, I won't dwell,
Drink deep from the well,
Forget the big change
Live summer's life's swell.

Yes, rich be the fare,
Fauna will thrive
Love's in the air,
Passion's alive.

Fall comes and no doubt,
With its own unique joys,
Winter be next,
Spring then makes her rout.

Forget all of this,
Summer lives thrive,
No matter what's next,
Glad I'm alive!

A Quick Reference to Increase Life Force

I have been learning Kung Fu, a Chinese martial arts system, and have put together a short list of practices to aid me in my efforts. These are good practices for anyone who wants to improve their quality of life.

To Increase Qi (pronounced "chee"), the Chinese word for life force or vital force, practice the following:

• Breath from the belly
• Good diet, high in bio-photon levels (fresh fruits and vegetables, apples are good!)
• Exercise and/or work out each day
• Good regular sleep
• Meditate and practice moving meditation such as Tai Chi
• Master your movements so that every act is conscious
• Master your mind - Think Positive

Blunders of History

I recently had the opportunity to speak with a history teacher, and learned some facets of history that I had not known. I believe that knowing more about history, gives a better understanding of current events by putting them in context. Knowing how history builds upon itself and often repeats itself, can give insight into why things are the way they are today, and possibly how to avoid major mistakes by those in power.

The following is a short lesson of History that I put together after my discussion. It is fascinating to me, and reminds me of how economic tensions can lead to war, kind of like what is happening today with terrorists vs. the developed world.

The way the end of WWI was handled, was perhaps one of the biggest blunders of geo-political foreign policy in history. As you will see, it set the stage for some of the saddest and most tragic events the world has seen.

Hyper Inflation in Germany right after WWI was largely the result of printing too much money in an attempt to pay reparations to England and France. US production was ramped up in anticipation of England and France's purchasing of US goods with these reparation funds, which never came. This led to surplus production in the U.S. and largely brought about the Great Depression. The great depression was essentially, a matter of too many goods being chased by too few customers or dollars. FDR's new deal made sense in that spending state monies helped sop up excess production.

The seeds of WWII were planted by how things were handled at the end of WWI.

England and France's insistence that Germany pay reparations for WWI, kept Germany's economy in a devastated state and general morale among its people low. This allowed a strong man, namely Hitler, to come to power with his message of Germany being worthy and destined to for greatness. He argued to the German people that they were not deserving of being treated so poorly by the rest of the world. And the rest, as they say, is History.

My Five Minutes of Fame!

My home was recently the host of an at-home fathers play group. It also happened to be the Tuesday before Father's Day. This is traditionally the time of year that myself and my Stay-at-Home Dads group, http://www.dcmetrodads.com/ get a lot of attention from the media, whether we like it or not.

So when The Washington Post learned that we had a regular Tuesday playgroup for stay-at-home dads, they just had to send a reporter over to cover the anomaly. It happened to be such a big story, that it ended up on the front page of the nationally renowned newspaper that Sunday, and featured a picture of my son.

To view the article go to: http://www.washingtonpost.com/wp-dyn/content/article/2007/06/16/AR2007061601289.html

You might have to register with the site, but there is no cost.

"Lucky" - A Poem

"Lucky"

By Matt Vossler

At the end of an age
Is it lucky to be here?
We on razor's edge
Must admit I have fear

The bees, they are leaving
The signs are not good
They say keep believing
I know that I should

Can we keep taking rope?
Ignore every sign?
Where there's life there is hope
But I've lost some of mine.

A verse repeated in times
Have we been here before?
I think yes, but who knows?
And who's keeping the score?

At the end of an age
Is it lucky to be here?
We on razor's edge
Must admit I have fear.

Earth Day!

I wanted to share what I did for Earth Day, 2007. Along with wishing everyone I talked to, a happy Earth Day, in order to remind them, and explaining to my children that it was Earth Day and what that meant, I did some planting around my house.

First, coincidentally, our tree doctor who comes and treats our two Cheery trees to prevent tent caterpillars, each year, arrived today. He treated the trees while I traditionally picked his brain on some of the plant mysteries, specific to my yard, I have been mulling over for the past year. He advised me that the two "trees" I planted earlier in the fall, were really shrubs, and that they would do better in a different part of the yard. So after he left, I transplanted them.

Also, I happened to get an offer for some free ornamental grass plants from my parents today, and I found a place to plant them in the front, where I have also been planting and tending a new flower garden. This is a first for me, as I have planted vegetables before, but not a flower garden.

Happy Earth Day All!

Is Universal Health Care is Coming?

Why the Debate about Socialized Health Care may Take Care of Itself

With the coming availability of genetic information on patients, our government will likely be faced with a no-win situation. They can either facilitate the destruction of the insurance industry by banning the use of genetic information, thereby forcing them into adverse selection of patients, or they can allow the use of this information, and create a sub-class of citizens who cannot get insurance and cannot afford the healthcare themselves.

Not a good choice in my book! From a recent article in The Economist: "Indeed, genetic testing may become the most potent argument for state-financed universal health care." Like many other issues that are at first, hotly debated, state subsidized, universal health care may quite possibly become such a no-brainer that it naturally materializes, as surely as the debate evaporates.

Economic Case for Paternal Involvement

From "Naked Economics," by Charles Wheelan

"The best long-term solution (to discrimination against women in the workforce) is to change behavior at the household level. If and when men assume a larger share of child-care responsibilities, it will change the "profile" of job applicants. An interviewer will no longer be able to rationally infer that female applicants are more likely to leave the firm than male applicants. Thus, the incentive for firms to discriminate against young women (based on the assumption that they are more likely to leave the firm to care for her children) in the hiring process will go away completely. At the same time, firms with a higher fraction of men leaving early for soccer practice and doctor's appointments will be more sympathetic to the challenges of balancing work and family, making the workplace more hospitable for all workers with children, male or female."

My Theory on Conspiracists

Think about this. I believe that those who subscribe to theories of government conspiracies make two critical errors in their judgment about our government: 1) that the government is competent, and 2) that they can keep a secret!

........It's a joke :-)

Put this One in the Success Column!

The pop star Sting may have sung about losing his faith in politicians, but here is a government bill that managed to improve things.

From Greg Mankiw's blog, I confirmed what I sort of knew already about the 1996 Welfare Reform Bill. Robert Samuuelson writes, "Welfare caseloads have plunged. From August 1996 to June 2005, the number of people on welfare dropped from 12.2 million to 4.5 million. About 60 percent of mothers who left welfare got work. Their incomes generally rose. Many qualified for the federal Earned Income Tax Credit, which subsidizes low-income workers. Finally, there were intangible benefits: work connections, self-respect.

One lesson is that what people do for themselves often overshadows what government does for them. Since 1991, for example, the teen birthrate has dropped by a third. The mothers least capable of supporting children have had fewer of them. Welfare reform didn't single handedly cause this. But it reinforced a broader shift in the social climate—one emphasizing personal responsibility over victimhood....

So we've made a stubborn problem a bit more manageable. It's pragmatic progress, not a panacea. Why can't we do the same for other pressing problems—energy, immigration, retirement spending (Social Security, Medicare)? Here, welfare reform's political lessons apply.

One is the need to overcome a bias against change. We underestimate people's ability to adapt. In 1995, one think tank forecast that the bill would throw 1 million more children into poverty. If Congress had listened, little would have happened. Today we could gradually raise Social Security and Medicare eligibility ages without causing a social catastrophe.

The 1996 bill was one of President Clinton's most significant accomplishments."

The High Cost of Obesity???

Carol Graham of the Wallstreet Journal recently wrote: There is no doubt that cheap food and sedentary lifestyles play a major role in the increase of obesity. But an unanswered puzzle is the concentration of incidence in lower income groups. Obesity is largely a problem of the poor. If it's merely a story of cheap and readily available food, why then aren't the rich the fattest?

My answer is that, although there are other factors, such as greater acceptability among the poor and some minorities for being heavier, the fact that healthier food costs more, cannot be ignored. For example, you've got five dollars for dinner, are you going to buy fresh apples or frozen pizza? Junk food just packs more calories per dollar than healthy food.

The Real Reason for Soaring Healthcare?

Greg Mankiw writes, "But if health insurance, rather than exogenous technological advance, is the explanation for higher health spending, the policy implications could be profound. Better designed health insurance could, perhaps, save us a bundle of money."

See Businessweek for more on the topic.

Is Biotech becoming a victim of its own success?

How Start-ups in New Industries Struggle to Keep their Cutting Edge, Small Company Culture

As biotech becomes "big biotech," its companies, namely, Amgen and Genentech "grapple with a raft of new dilemmas: how to remain nimble and entrepreneurial despite a burgeoning bureaucracy and how to preserve their reputation for cutting-edge science, resisting pressure to join mainstream companies in the race to develop blockbuster drugs that could prove vulnerable to generic substitutes" (EIU, 2006).

The CEOs of these two companies are faced with what might be called a "higher level" problem; how to take advantage of their stellar growth, rather than becoming overwhelmed by it. In short form, the answer to this problem, according to these two, after commissioning an analysis of fast growing companies, is not to get complacent or arrogant. I know from experience and observation that success naturally leads to complacency and often arrogance. Leaders like Jack Welch know this and do not allow it to fester in their organizations.

The CEOs studied what differentiated themselves from big pharma, and learned that in order to stay on the cutting edge, they had to, not only attract top-notch scientists, but had to keep a creative environment in which they could flourish. This meant placing "a premium on internal communication that is stripped of ceremony and euphemism. Mr. Perimutter, who was one of Merck's top scientists before leaving for Amgen, says: "I like to joke that I get e-mail everyday that would be grounds for dismissal at Merck. We know how to spell insubordination around here" (EIU, 2006).

Genentech even goes so far as to allow its scientists to work part-time on their own scientific endeavors with the stipulation that it is pure science and not connected with the business of Genentech. Levinson, Genentech's CEO, sees little logic to the big pharma model that allows major scientific decisions to be made by the sales and marketing departments. It detracts from doing great science, says Levinson, "I'd rather drive a truck than run that kind of company" (EIU, 2006).

The EIU article points out, that "if, as some have argued, the last century was dominated by physics, the fate of 'big biotech" could yet provide conclusive evidence that the current one will be defined by biology."

References:

• Staff (2006). World healthcare: Big biotech fears becoming a victim of its own success

Turning the Tide

Energy from the Restless Sea

The New York Times, Business Section, August 4, 2006:

"A group of entrepreneurs is harnessing the perpetual motion of the ocean and turning it into a commodity in high demand: energy. Right now, machines of various shapes and sizes are being tested off shores from the North Sea to the Pacific — one may even be coming to the East River in New York State this fall — to see how they capture waves and tides and create marine energy."

----------------------------------------------------------------------------------------------

As the price of oil goes up, so goes the attractiveness of even the most fanciful of alternative energy ideas...this one is fast becoming a viable new source to help usher in US energy independence and renewed economic security, not to mention a way to leave the Middle East alone. Am I wrong here?

Big Oil Ripping us Off?

A common view these days is that big oil is ripping us off through price fixing.

I think of the story of the person who went to New Orleans after Katrina to sell generators. He hiked up the price for his troubles and found many who were only too happy to pay the premium. This guy, who was providing a invaluable service, was repaid by being arrested by the local law enforcers for "price gouging." I feel sorry for those who dearly needed the generators and missed out on getting them.

Of course most of the reason for the high price of oil is merely a matter of basic supply and demand, and not price fixing. Does one think that countries like Saudi Arabia really want to loose all of their customers in the long run, by forcing conservation and switching to new energy alternatives because the price of oil becomes just too high?

Why Blog?

From the article, "The invisible hand on the keyboard"

Why do economists spend valuable time blogging?

Aug 3rd 2006
From The Economist print edition

Like millions of others, economists from circles of academia and public policy spend hours each day writing for nothing. The concept seems at odds with the notion of economists as intellectual instruments trained in the maximisation of utility or profit. Yet the demand is there: some of their blogs get thousands of visitors daily, often from people at influential institutions like the IMF and the Federal Reserve.

A new study* by E. Han Kim and Adair Morse, of the University of Michigan, and Luigi Zingales, of the University of Chicago, shows that the internet's ability to spread knowledge beyond university classrooms has diminished the competitive edge that elite schools once held.

Top universities once benefited from having clusters of star professors. The study showed that during the 1970s, an economics professor from a random university, outside the top 25 programmes, would double his research productivity by moving to Harvard. The strong relationship between individual output and that of one's colleagues weakened in the 1980s, and vanished by the end of the 1990s.

The faster flow of information and the waning importance of location—which blogs exemplify—have made it easier for economists from any university to have access to the best brains in their field. That anyone with an internet connection can sit in on a virtual lecture from Mr DeLong (a prominent econoblogger and professor at the University of California, Berkeley) means that his ideas move freely beyond the boundaries of Berkeley, creating a welfare gain for professors and the public.

---------------------------------------------------------------------------------------------

Of all the new technologies out there, after the microwave and air conditioning of course, I put the greatest value on Cell phones and the Internet...Cell Phones, because of the security they provide (think of a roadside breakdown hundreds of miles from the nearest town with a baby on board) and the Internet, because I can now look up the meaning of such things as "back dating options" and why it is getting some people in trouble...I can sound intelligent at parties, that is, if I ever went to parties where that subject would come up! Could you imagine? ;-)

-- Matt

A New Dollar Mantra

I thought this was hysterical! (Maybe I am a nerd)

By Greg Mankiw

"Today's Wall Street Journal reports on "dollar policy:"

Mr. Paulson offered this statement on the U.S. dollar: "A strong dollar is in our nation's interest and that currency values should be determined in open and competitive markets in response to underlying economic fundamentals." It is a phrase he is sure to repeat over the next two and a half years, a tactic that another former Goldman Sachs chief executive, Robert Rubin, used to avoid inadvertently moving financial markets with offhand comments on the currency.

He didn't say what is widely understood inside the Bush administration and among economists: Some weakening of the U.S. dollar is likely in response to U.S. trade deficit that has grown very large and to flows of foreign savings to the U.S. that are unlikely to keep growing.

One of the more bizarre rituals in Washington is the press corp trying to get a Treasury Secretary to say something newsworthy about the exchange value of the dollar. The Treasury Secretary's goal is to say something that makes him look smart and authoritative without actually saying anything substantive which might cause market volatility.

The old Rubin mantra fits the bill, but it is getting a bit stale by now. I have a suggestion for a new dollar mantra that is just as good and a bit shorter. It's...

Supercalifragilisticexpialidocious!

Even though the sound of it
Is something quite atrocious
If you say it loud enough
You'll always sound precocious.

Supercalifragilisticexpialidocious! "

(OK, I'm a Nerd --Matt)

The Future of Healthcare

Experiences in Asia and Australasia suggest that the future for healthcare is not necessarily private-sector provision.

According to the Economist Intelligence Unit, the "world market for healthcare products and services will continue to grow rapidly over the forecast period (2006 - 10). Struggles among big pharmaceutical companies and governments about intellectual property rights along with downward pressure on prices due to the rise of generic drugs mask the bigger problems of inadequate basic care and skills shortages that will plague poorer countries. Furthermore, "healthcare insurance, and how best to provide it, will become an...important subject" (EIU, 2006).

Although the trend is for drugs to come under price pressures, healthcare spending will continue to rise dramatically, both in absolute terms and as a percentage of GDP for most of the world's countries. Although the US and Europe are respectively the number one and two leading markets for healthcare, companies who want to expand into foreign markets will find good opportunities in Asia. "Major Asian markets will grow particularly rapidly, and be of particular interest to pharmaceutical manufacturers, suppliers of medical devices and healthcare service providers" (EIU, 2006).

But perhaps the most important issue of all in the first half of the new century will be how to best adapt, coordinate and restructure international efforts to deal with public health emergencies that are beyond the scope of the private sector, in any country. The World Health Organization (WHO) has come under some criticism and may have to be revamped and then might lead the debate as how to best address growing healthcare issues and problems among the countries of the world.

Private vs. public funding for healthcare is a debate that raged in the US during the first term of the Clinton administration and will probably come up again sooner rather than later. The world's countries range on this issue from totally private healthcare to totally public healthcare and many points in between. The Economist Intelligence Unit has taken a side; at least it seems so from this statement: "Asia and Australasia also suggests that the future for healthcare is not necessarily private-sector provision. Many of the wealthier Asian countries already operate high-quality public systems, often at relatively low cost" (EIU, 2006). I find this short statement, hidden in the middle of the forecast text to be a powerful prescription for a multitude of problems, and one that should get more attention and consideration.

As a side note, according to Bill Clinton's, "My Life," when the public was polled about a health care proposal, the overwhelming majority approved of it...unbeknownst to them, the proposal was the very one that the Clinton Administration was putting forward. The one that the Republicans scared everyone about and denounced as socialized medicine.

References:

Staff (2006). World healthcare outlook: A healthy sector. Economist Economic Unit

Energy, India, and National Security

Energy Continues to shape Geo-Political and National Security Concerns - An alliance with India will build a more secure future for the United States

General Background

Energy is one of the compelling economic and political issues of our time. There are currently dozens of alternative energy solutions being pursued by corporations and small business inventors, each with dreams of hitting upon the next big energy alternative and making more money than can be imagined. Energy issues are tied to big business, politics, national security, geo-political alliances/positioning, environmental concerns, personal concerns and globalization. It is and has been the cause of a war or two (my opinion).

Oil and gas prices are poised to continue to elevate for the foreseeable future, due largely to a continued increases in demand, as emerging economies like China's and India's expand along with their production of goods and services that require more and more energy. Already, U.S. oil companies have reported record profits for the first part of 2006, spawning a debate among US citizens and congress about the merits of a "windfall tax" on these profits. This debate seems to have settled down for now in favor of letting the "invisible hand of the market" (see "The Wealth of Nations," by Adam Smith) rule the day.

India's Deal with the US

Let me illustrate with a current topic that touches upon several of the issues I listed in paragraph one. Congress has passed a bill solidifying a deal with India that would allow "the US to supply India with civilian nuclear fuel and technology, in exchange for India allowing the International Atomic Energy Agency (IAEA) to inspect its non-military nuclear facilities" (EIU, 2006). This deal has drawn criticism from those who have concerns with upsetting Pakistan (a major ally in the war on terrorism), who might look upon the deal as a threat to their security as well as a signal of US loyalty in South Asia and a snub to them. Others fear that this will embolden countries like Iran and North Korea, so that they will ignore the IAEA and step up their nuclear weapons development and testing. Some point out that China has "expressed concern of the message the deal sends about the validity of international non-proliferation efforts" (EIU, 2006). Finally, there are those within India itself who see the deal as restrictive and makes India too dependent on the US.

A subsequent, non-coincidental "sale of F-16s to Pakistan...will not disguise the fact that the US now deems its alliance with India its highest strategic priority in South Asia" (EIU, 2006). As you can see from this example, energy (in this case as a bargaining chip) continues to shape geo-political strategy and national security decisions.

References:

Staff (2006) Economist Intelligence Unit (EIU) Energy Industry Briefing. India energy: Nuclear deal moves closer

Accounting for Fraud

Sarbanes Oxley is a law that came into being in the year 2002, in the wake of the financial reporting scandals of the previous couple of years. Companies like Enron and WorldCom became household words and several CEOs have gone to jail on account of "funny accounting." There was nothing funny about how employees of Enron or WorldCom, who were near retirement, saw their entire life savings go down the drain, because of greedy executives. Were these executives so emotionally removed from the terrible impact their actions had on the lives of their employees that they felt it was ok? Or were the temptations and incentives just so great, that it blinded them to all else?

In my studies, I have read case after case about entrepreneurs and CEOs who had such vision and passion and cared for their employees, and how that translated into success. It must be that there is a very fine line between having a strong passion and will to succeed and stepping into a place that gives one the illusion that they can do whatever they want in order to succeed. They must have a very great capacity to rationalize their actions. Do they say to themselves, this wrong is for the greater good, or do they just deny to themselves that anything is wrong? Are they so power hungry that they do neither, and just do whatever to satisfy their hunger? Maybe there is a whole spectrum.

From what I can determine, the Sarbanes Oxley law is currently having a net positive result in that it is effective in "uncovering weaknesses in internal controls and the potential for fraud (Koprowski, 2005)." One CPA I interviewed put it this way, "the management of companies are now paying closer attention, and if nothing else, the law gave the consulting industry a big boost." Another CPA said, when asked about SOX, "you mean the business consulting full employment act? I guess they have to do something after Y2K!"

References:

Koprowski, G. (2005, November 28). Study: Sarbanes-Oxley law not changing technology business culture. Commerce Times. Retrieved July 25, 2006, from http://www.ecommercetimes.com/story/47467.html.

Ethical Complexities

What do we do when dealing with another country whose culture is corrupt by our standards? Do we bribe their government so that a competitor, who surely will bribe, does not take the contract away from us? We have laws against such practices, and yet, we are often faced with ethical dilemmas that are not easily resolved, especially in today's ultra competitive global economy; an economy where cultures sometimes clash.

I believe that laws and rules are very important, but I also believe that there are times, albeit very few, when the rules need to be broken. Hopefully this needs to happen less and less and does not proliferate, but think about how our country was born. All "patriots" were first criminals in the eyes of, not only the British, but of many colonials. This is not to say, anything goes, but that sometimes the picture looks different from a different vantage point or perspective.

Quotes and a Question

1. Aldous Huxley said, "An intellectual is a person who has discovered something more interesting than sex.
2. Carl Jung said, "Show me a sane man and I will cure him for you."

• To which I must ask, If Carl Jung cured a sane intellectual, would he not then be a nymphomaniac?

Managing Innovation at Nypro, Inc.

Innovation is the lifeblood of a capitalistic society. This is not just the domain of entrepreneurs and start ups. Nypro affords a good example of how to manage innovation within an established company.

The internal market for innovation at Nypro is facilitated through competition. Nypro managers believe innovation is the result of competition. Product development teams are formed and are pitted against other teams in the same plant and other plants. Once a product is fully developed and going into production, the development team is disbanded and a Continuous Improvement Team is formed to oversee the production to market phase. This team is charged with the task of helping the customer achieve its goals of getting a commercially successful product to market, inking a long-term contract with the customer, and improving margins, revenues, profits, quality and cycle time. Each team keeps a close eye on the teams in other plants, so when a good idea or innovation appears, all the teams quickly copy it. "Most ideas for process improvement emerged as Nypro's continuous improvement teams worked to solve production and profitability problems for its customers (Christensen & Voorheis, 1995)."

Lankton, Nypro's Founder and CEO, also instituted a process of employee evaluation that utilized the element of competition. If an employee met a rigorous set of standards, they would be allowed to become one of the stock holders of the company. Lankton also fostered competition by rewarding outstanding employees, teams and plants with praise in the company newsletters and other internal corporate reports. In a nutshell, "Nypro's organizational structure facilitated aggressive internal competition and constant attention to performance statistics that compared groups within the company. Many attributed Nypro's success in innovation to this internal rivalry-what one executive called 'progress through conflict.' This competitive spirit originated from Gordon Lankton himself and was fostered by Nypro's plant location strategy and its use of project teams (Christensen & Voorheis, 1995)."

When Lankton was faced with a decision of how to best disseminate the NovaPlast machines (new technology which allowed for faster tooling up), which were thought to be Nypro's best bet for maintaining its vigorous growth rate, management came up with three options. The first option was to build a new plant with only the NovaPlast machines. It was thought that this would utilize engineering efficiency and allow the plant team to focus on the unique properties of the new technology.

The second option was to put two or three machines in each of Nypro's plants though out the world. This option more closely resembled Nypro's core cultural process of fostering innovation by pitting each plant against the others across the many territories Nypro spans. More engineers, marketers and others would be work on the problems of getting the most utility out of the new technology.

The third option was to put the machines in only one plant so as to focus on making it successful at a single plant first, before putting them in the rest of the plants.

I would follow option two, but with a difference. Instead of putting two or three machines in each plant, I would have management devise an evaluation method for determining which plants would be more apt to succeed with the new machines, and then put the machines in the top eight of the list. These plants would be serving customers who would benefit most from the kinds of production qualities the new machines were suited to. Namely, Short run businesses, businesses' that required products to get to market quickly, and jobs that run in the bigger machines that can be downsized to the smaller NovaPlast machines. This method combines the advantages of option number two, with a mitigation of the risk of putting the machines in all of the plants at once. It is superior to options one and three because it not only brings the new machines "on-line" faster, but maximizes innovation fostered by competition that Nypro is famous for.

References:

Christensen, C. M., & Voorheis, R. (1995). Managing innovation at Nypro, Inc. (A) (Case No. 9-696-061). Boston, MA: Harvard Business School Press.

Can Labeling be Dangerous?

Could ordinary corporate activities, such as segmentation (definition at end of article) and dividend distribution, be considered means of social exclusion, leading to the perpetuation of social disparity?

This is a fascinating question. It has me asking whether the way some companies market their products, have an adverse effect on the target market in terms of perpetuating behaviors that are detrimental to them. For example, the "what happens in Vegas, stays in Vegas" campaign. Here we have a corporate entity, namely Las Vegas, who has apparently identified a market segment who they feel are prone to engaging in risky behavior. They then promote such behavior as not only socially acceptable, but desirable. This reinforcement presumably perpetuates a kind of behavior that may be destructive to one's personal and professional life.

Any thoughts?...video games?...the music industry?....

Segmentation is a marketing term for the grouping of target customers according to tastes, age, socioeconomic level, ethnicity, political affiliation, geographical location, etc. In a sense, labeling.

A Guest Writer on Leadership

A LEADER ALWAYS FAILS UPWARDS!
by Tony Alessandra

Abraham Lincoln really was born in a log cabin. The fact that he went on to become President -- and to lead the country through the most difficult period of its history -- is truly remarkable. It is even more amazing when you consider what it took to be an important leader in the middle of the nineteenth century. Although we hear a lot about people like Lincoln or Andrew Jackson or Ulysses S. Grant -- people who came from nothing to wield great power -- these were most definitely the exceptions that proved the rule. Moreover, the rule was, most successful people started out with all the advantages. Financially, it was much harder to get rich a hundred and fifty years ago than it is today -- and if you failed, it was much harder to get back on your feet. There was no safety net from the government or from anywhere else to make sure that you did not go hungry. In those days, it was every man for himself.

With that in mind, let's look for a minute at some of the things that Lincoln faced and overcame. You have probably seen lists similar to this, describing Lincoln's failures, but I'd like to go through it again in order to make some important points, which we will take up immediately after the list. As you are reading this list, I'd like you also to think of setbacks you have faced in your own life, and how you responded to them.

In 1832, Lincoln was working in a general store in Illinois when he decided to run for the state legislature. However, the election was some months away, and before it took place, the general store went bankrupt and Lincoln was out of a job. So, he joined the army and served three months. When he got out, it was time for the election -- which he lost.

Then, with a partner, Lincoln opened a new general store. His partner embezzled from the business, and the store went broke. In addition, shortly thereafter, the partner died, leaving Lincoln with debts that took several years to pay off.

In 1834, Lincoln ran again for the state legislature, and this time he won. He was even elected to three more terms of two years each. During this period, however, Lincoln also suffered some severe emotional problems. Today he would have been categorized as clinically depressed.

By 1836, Lincoln had become a licensed attorney. At that time, a law degree was not required to pass the bar exam, and Lincoln had been studying on his own for years. He later became a circuit-riding lawyer, traveling from county to county in Illinois to plead cases in different jurisdictions. He was one of the most diligent of all the lawyers doing this kind of work, and between 1849 and 1860 he missed only two court sessions on the circuit.

In 1838, he was defeated in an attempt to become Speaker of the Illinois legislature, and in 1843, he was defeated in an attempt to win nomination for Congress. In 1846, he was elected to Congress, but in 1848, he had to leave because his party had a policy of limiting terms. In 1854, he was defeated in a run for the U.S. Senate. In 1856, he lost the nomination for Vice President, and in 1858, he was again defeated in a race for the Senate. Yet in spite of all these setbacks, in 1860 he was elected President of the United States.

What can we learn about leadership from looking at this chronology? To me, the most remarkable thing is how every time Lincoln failed at something, he was soon trying for something even bigger. After he lost his seat in the state legislature, he ran for the national congress. After he lost a bid for the Senate, he tried to become vice president -- and after he lost the Senate race again, he ended up President of the whole country.

Lincoln saw himself as a leader long before anyone else did -- and this is the first key to his leadership genius. He may have failed many times, but somehow he always failed upward. He was propelled by a sense of mission, and he was willing and able to do whatever it took to get that great mission accomplished.

----------------------------------------------------------------------------------

Build Customers, Relationships and the Bottom-Line!

Street-wise with a college-smart perspective on business, he fought his way out of NYC to eventually realize success as a graduate professor of marketing, entrepreneur, business author, and consultant. Let Dr. Tony Alessandra help you and your business build customers, relationships, and the bottom-line.

To order Tony Alessandra's best-selling packages, click here or call 877-929-0439.

U.S. Trade Imbalance Explained

The main imbalance is between the United States and Asian nations. The trend is that the United States imports, consumes and borrows while Asian nations export, save and lend.

For now, the imbalance between the United States and Asia benefits the economies on both sides. Asians get jobs in export firms, and their American customers get high-quality, inexpensive goods including clothing, cars and appliances. The United States also gets cheap capital from Asia because the dollars that Asians earn for their exports often end up invested in the bonds of the U.S. Treasury and mortgage-finance companies such as Fannie Mae and Freddie Mac. These purchases of U.S. securities help keep interest rates low, which in turn helps create new U.S. jobs that replace the ones lost to imports.

However, this imbalance isn't going to be beneficial forever. The U.S. bonds that foreigners are accumulating means the United States is going deeper into debt to fund its import binge. The rest of the world may eventually decide that the United States is no longer a safe bet for lending more money.

U.S. corporations are possibly looking too much at the current benefits of importing, and not enough at the long term affect it has on the nation's economy. A reevaluation should occur...it would be beneficial in the long run to offset some of the dollars of imports with more exports. Although the resent downturn in the strength of the dollar will be helpful in this respect, the Federal Government needs to practice fiscal restraint in order to help offset the effects of less foreign investment coming in. To avoid a global scare that the U.S. will not be able to finance its debt, a narrowing of the current account gap, ideally should be gradual.

References:

Blustein, P. "U.S. trade deficit hangs in a delicate imbalance", Washingtonpost.com, A01, 11 November 2005.

Bio-tech Firm gets Some Good News

Novavax Gets Positive Pre-Clinical Influenza Study Results

DOW JONES NEWSWIRES
July 18, 2006 9:35 a.m.

Novavax Inc. (NVAX) has received positive results from several pre-clinical studies relating to its pandemic and seasonal influenza vaccines, which are under development.

The company said scientists at the University of Pittsburgh and the Southern Research Institute in Birmingham, Ala. have been collaborating with it to test its virus-like particle vaccines for various strains of influenza.

"These results are highly encouraging and are an early affirmation of the strength of our VLP platform in several pre-clinical models," the Columbia, Md. biopharmaceutical company said.

-Judy McKinnon; 416-306-2100; AskNewswires@dowjones.com

Don't fear the Reaper!

Those who fear outsourcing in a general sense, are making three critical errors in facts, not withstanding the, hopefully temporary, pain of being one of the workers threatened or displaced by a changing business environment.

The three errors are:

1. That there is a fixed amount of jobs, and that once they are taken, that is it,
2. That everything that can be invented, has been invented, and
3. That human needs and desires are finite.

The reality is that inventions are not going to dry up because human wants and desires are infinite (a basic premise of economics), which always leads to those who will find ways to fill those needs. In many cases, inventors and entrepreneurs are masters at making something that people just must have, that they didn't know that they needed two months ago. This should help to illustrate that there are not a fixed amount of jobs, and that the United States, especially, is and has always been skilled at leading the world in new and interesting directions, via new inventions and innovations.

Consider the worker at a factory who sees an opportunity to start his own company, say selling used iPods (it doesn't matter for this illustration). One of the factors this person considered in his decision to strike out on his own, is the fact that, because of the (broadband) Internet and the PC (two technologies that began in the U.S.), he can outsource some of the functions like accounting and/or data management he might need, at a fraction of the cost of hiring someone here to do. This in turn, allows him to begin his business, and as his business grows, he finds it necessary to hire several others to help out, maybe people from his old factory job.

Matt

Citibank - A Pioneer in e-business Strategy

CitiDirect is Citibank's online web interface that allows Citibank's clients access to banking, cash and trade management services 24/7 anywhere in the world, in real time. One problem that Citibank has had with getting all clients onboard with CitiDirect is those clients who are not yet comfortable with doing business on-line. Their major concern is that of security.

Citibank can provide education and a little handholding for clients like these, as a way of easing them into the increasingly on-line business world. Programs could educate clients on the increased efficiencies, cost savings, safeness and market expanding attributes of doing business via the Web. Citibank might also offer more in the way of security measures for those who need a higher amount of security, such as some governmental and quasi-governmental clients.

Citibank could offer more in the way of currency exchange and language translation services for its multinational corporate clients, as opposed to some of its smaller local clients who are not ready to do business globally. Citibank's Cash and Trade Group can tailor its CitiDirect web interface to the particular needs of clients in different industries. A simplified example is that Citibank might emphasize stock trading on the front page, or somewhere in the site of a client's CitiDirect interface, because that client makes most of its income buying and selling stocks. A client who sells golfing equipment might want a page that lists its vendors and customers. A client who depends on membership dues for income might like a section of the site that somehow allows the user to, at once, see who their members are and what is being done to keep them happy, as well as what is being done to find new membership.

Since the industry and e-commerce continues to change at a rapid pace, Citibank needs to change the mindset of their employees in order to adapt to these changes and use it to their advantage. Citibank will also continue to learn about what it needs to offer their clients by investing into new technology. Citibank can also study their competition and benchmark their actions in the industry and possibly create alliances that make strategic sense. Lastly, Citibank's greatest resource is to be able to listen to their clients' needs and desires, finding new ways of serving them and gaining new clients. Citibank should develop innovative ways to tap into this resource and motivate their clients to communicate what they want while simultaneously train their employees to be better listeners and extractors of information.

Global Economic Outlook - Inflation

"China," The Economist Intelligent Unit writes, "is raising interest rates to control economic growth and fight inflation." When speaking of Latin American countries, EIU states that, although "reforms have yet to be fully implemented, the picture there is stable or improving, and that in countries that have not experienced crises, the state of banks and financial institutions is healthy." South Africa can act as a leader to be followed by other African countries who still need reforms to their financial institutions. Asian and emerging European countries are considered to be good or moving in the right direction. Only the Middle East and Africa are cited by EIU as areas that still need some reforms to be on par with the rest of the world.

As for the general global economic outlook, rising interest rates in most of the developed world are expected to keep inflation well in check.

Two moderate risks do threaten the this positive outlook. One is that elevated oil prices might tip off faster than expected inflation and cause a bond sell-off, which would impact institutional investors with large bond holdings.

The second risk are the implications of a substantial dollar decline. The U.S. still has a huge current account deficit, and relies on foreign investment to finance the account gap. The world also needs for the United States to be able to finance their current account gap as well, because without this ability, the stability of the world economy might be in jeopardy.

Global Financial Services

Some strategic trends and issues facing the Global Financial Services Industry are as follows:

--Rising Global Interest Rates, leading to "lower earnings potentials for financial intermediaries (EIU, 2006)."
--Projections of reasonable economic growth, low inflation, and improved balance sheets will afford a stable growth period for the industry going forward.
--Financial institutions will chase yield by lending to riskier borrowers, which make for an increase in credit-market volatility (EIU, 2006)."
--Firms will continue to turn to capital markets and their own resources for financing, but investment banks will thrive as long as the equity surge continues (EIU, 2006).

These trends should not "seriously erode profitability in the short term, especially against the backdrop of reasonably good global economic growth, increasing diversification and more sophisticated risk transfer strategies.

Interestingly, in the U.S., "Demand for financial services will be buoyed by favorable demographics....Unlike many other developed economies; the US enjoys a rising population of working age and fairly robust growth in the number of young adults. This is likely to boost demand for retail and corporate financial services (EIU, 2006)."

References:

Economist Intelligence Unit (EIU) Global Financial Services Industry Briefing (2006).

Readiness for e-business?

My Analysis of three countries' business environment, risk and readiness for e-business

Brazil

Brazil has an E-readiness ranking of 41 and has "by far the largest information technology market in Latin America, with a total computer and Telecommunications value of over $30 billion" (EIU, 2006). This combined with a global business environment ranking of 42, and an average risk rating of 2.5 X B, makes Brazil an attractive Latin American country to do business with over the Internet. Consider that Lebanon, during political upheaval, got an overall risk assessment rating of D, and Mexico, Latin America's most visible country, is ranked about the same as Brazil in the three categories. Brazil is the first part of BRIC (Brazil, Russia, India and China) touted by Jim Cramer of CNBC's "Mad Money," as the four hottest of the hot emerging economies. They have also recently grabbed headlines for their progress on the wide spread use of sugar-cane ethanol, again making it an attractive place to be in terms of independence from foreign energy. One last note: Brazil is an emerging economy, with moderate risk, where the competition from multi-national corporations of other countries is likely to be less intense than the competition from within and from the outside of a developing country. This should be considered in any decision analysis of where in the world to invest and do e-business with.

Taiwan

Taiwan has an E-business readiness ranking of 22. "Taiwan is the global centre for the production, development and use of technology and telecommunications equipment. Consumer demand for technology products in Taiwan is driven by relatively high incomes and a well educated and sophisticated population" (EIU, 2006). Data like this screams for foreign corporations to try and enter the market to do e-business, but with one caveat, that a country this advanced in technology and sophistication of population, also undoubtedly already has many local companies that would directly compete with any that are trying to enter. Taiwan has a global business environment ranking of 21, and an average risk rating of 1.5 X A, making it a very attractive country to invest in, if you can stand competing with the rest of the developed world for market share.

Russia

52 in e-business ranking, Russia has an "information technology market that has nearly doubled in 2000-03, but this sector still only accounts for 1.6% of GDP" (EIU, 2006). All things being equal in terms of ease of entry from outside, Russia is attractive because the information technology industry is so immature and a foreign company could literally enter and dominate the market, given that they have the Russian governments blessing. This, I know is a big if, but a bold company might find it worth the risk of resources and struggle, in the possibility that it might happen.

Russia has a global business environment raking of 61 and an average risk rating of 2.75 X B, which is not too bad. As mentioned earlier, Russia is the "R" in BRIC, and considered by Jim Cramer to be one of the four top emerging economies in the fast paced, albeit choppy, global economic boom.

Key for Risk Ratings:

Risk rating of "A" having the least risk, and DDD having the most risk

References:

Economist Intelligence Unit (2006). Views Wire, Retrieved on June 11, 2006 from: http://economist.com/

"Neutron Jack" GE in the 80s

"A company can boost productivity by restructuring, removing bureaucracy and downsizing, but it cannot sustain high productivity without cultural change"

General Electric, the company founded in 1878 has, to date, not been without legends of leadership in the management world. From its founder, Thomas Edison, who needs no introduction for most Americans, to Reg Jones, who held the reigns in the 70's as CEO, and "raised strategic planning to an art form," upholding GE's reputation as a benchmark American company (Bartlett & Wozne, 2000). So when Jack Welch replaced the retiring, Mr. Jones in 1981, the Wall Street Journal proclaimed that GE "had replaced a legend with a live wire" (Bartlett & Wozne, 2000).

Mr. Welch inherited a company patterned after the old industrial model of tightly centralized, mulit-layered, bureaucratic behemoths, and at a time of deep recession and unemployment unheard of since the Great Depression of the 1930s. To add to the challenges, at this time in history, a new threat had just recently arrived; the Japanese had begun to compete with American corporations, catching us off guard and winning in a lot of arenas. Taking the helm of one of America's top bellwether companies at a time like this would make most executives seriously question what they had gotten themselves into. So what did Jack do?

From the readings, I can sum up Mr. Welch's management activates for the first several years at GE in four words (the 4 Ds): downsizing, destaffing, delayering and divestiture (Bartlett & Wozne, 2000). This strategy of Welch's evolved out of his initial vision for GE to be nothing less that the most profitable corporation in the world within a decade. His radical restructuring, bold vision and management style, quickly earned him the nick-name, "Neutron Jack," a nick-name he wasn't fond of. With the help of his small group of new business heads, dubbed the "varsity team," Welch kept up GE's reputation as a company on the cutting edge of management innovation. Jack and his team scrapped GE's old strategic planning system and replaced it with a five point playbook that focused on "questions concerning current market dynamics, the competitors' key recent activities, the GE business response, the greatest competitive threat over the next three years, and the GE business's planned response" (Bartlett & Wozne, 2000).

So how effective was Jack's four Ds and his other initiatives in the early years since taking charge? Well, other than earning the nick-name mentioned earlier, the numbers speak volumes. Mr. Welch's GE had their "operating profits rise dramatically from 1.6 billion to 2.4 billion between 1981 and 1985" (Bartlett & Wozne, 2000).

By mid-1988, Jack was satisfied with the restructuring and acknowledged that, "a company can boost productivity by restructuring, removing bureaucracy and downsizing, but it cannot sustain high productivity without cultural change" (Bartlett & Wozne, 2000). Mr. Welch, having successfully led his company through a period of recession and new competition from outside the U.S., was now ready to change his focus and began to articulate a management style, which would remain the norm at GE for years to come.

References:
• Bartlett, Christopher & Wozne, Meg (2000). GE's Two Decade Transformation: Jack Welch's Leadership. Harvard Business School Press. HBS 9-399-150

Wendy's Takes off to the Great White North!

In today's competitive global business environment, corporations must find ways to enter foreign markets in order to expand their market share. They neglect this new aspect to doing business at their peril.

Introduction

Wendy's International, Inc., based in Dublin, Ohio, is one of the world's largest restaurant operating and franchising companies. The Company had $7.7 billion in 2000 systemwide sales and has two quality brands - Wendy's(R) and Tim Hortons. Wendy's Old Fashioned Hamburgers(R) was founded in 1969 by Dave Thomas and is the third largest quick-service hamburger chain in the world with more than 5,800 restaurants in the United States, Canada and international markets. Tim Hortons was founded in 1964 by Tim Horton and Ron Joyce and is the largest coffee and fresh baked goods chain in Canada. There are 1,900 units in Canada and 120 in the U.S. (SEC Form 8-K, 2001).

Wendy's acquired Tim Hortons as a wholly owned subsidiary because its quality food products complemented Wendy's commitment to quality food. The acquisition also made sense, due to Tim Hortons' Canadian market prowess, "one out of every two bagels sold in the Canadian foodservice industry is purchased at Tim Hortons (SEC Form 8-K, 2001). As further evidence, in 2002, the chain (Tim Hortons) accounted for 22.6% of all fast food industry revenues in Canada in 2005. Tim Hortons commands 76% of the Canadian market for coffee and baked goods (based on the number of customers served), and holds 62% of the Canadian coffee market (compared to Starbucks, in the number two position, at 7%), (Wikipedia, 2006).

The fact that Tim Hortons is a Canadian franchise made it attractive for several reasons. First, Canada has a stable government with predictable and enforced laws. Second, Canada is not radically different from the U.S. in terms of culture, language. Also, the close proximity of Canada and friendly relations between Canada and the U.S. make for less costly and less risky foreign investment by U.S. corporations. Finally, the business environment in Canada is finally becoming more favorable, "the overall environment (in Canada) has become more favorable. Corporate tax rates are coming down, and NAFTA is helping" (Struck, 2004).

Creating Value through Canadian Operations

In "The Quest for Global Dominance" (Govindarajan and Gupta, 2001), the authors list six value creation opportunities that will convert global presence into global competitive advantage, each of which encounters specific strategic and organizational obstacles. They are:

• Adapting to local market differences
• Exploiting economies of global scale
• Exploiting economies of global scope
• Tapping the most optimal locations for activities and resources
• Maximizing knowledge transfer across locations
• Playing the global chess game

Wendy's strategy of expansion into Canada through its Tim Hortons subsidiary incorporates several of these value creation opportunities along with their requisite obstacles. By adapting to local market differences, or in this case, owning an established local brand, Wendy's has "responded to country-level heterogeneity through local adaptation of products, services and processes, (and) can reap benefits in three fundamental areas: market share, price realization, and competitive position (Govindarajan and Gupta, 2001).

Likewise, Wendy's foray into the Canadian fast food market, has, by definition, increased their market share, and by having a tailored product and service to local preferences "enhances the value delivered to local customers...which should translate into higher price realization for (Wendy's) (Govindarajan and Gupta, 2001). By extending their operations into Canada through this subsidiary, Wendy's will avoid the pitfall of increasing the company's cost structure. With Tim Hortons' established and popular brand, Wendy's doesn't have to spend resources on figuring out how their existing brand needs to be adapted to fit local tastes, not to mention, making costly blunders in terms of misguided adaptations.

Wendy's Canadian operations can "maximize knowledge transfer across locations...as some types of locally created knowledge may be relevant across multiple countries and, if leveraged effectively, can yield various strategic benefits to the global operation ranging from faster product and process innovation to lower cost of innovation and reduced risk of competitive preemption (Govindarajan and Gupta, 2001).

Finally, by the acquisition of Tim Hortons, Wendy's increases its chances at winning the global chess game. In this game, the more resources a company has at its disposal, including capital, experience and pool of knowledge, the better chance the company has of seizing a market opening and retaining the advantages of this market gain.

Wendy's Canada play with Tim Hortons seems to be paying off; "Tim Hortons' first quarter same-store sales (2006) increased 8.7% at restaurants in Canada and 9.8% in the United States (Wendy's Corporate and Investor Website, 2006).

Conclusion

In today's competitive global business environment, corporations must find ways to enter foreign markets in order to expand their market share. They neglect this new aspect to doing business at their peril. Foreign direct investment is a risky proposition, but this can be mitigated by careful planning and sound decisions. This involves finding the best markets for a company's brand or line of business, including the choice of countries that make sense based on many factors, including the political and infrastructural situation, country culture, favorable laws, and other factors. Wendy's acquisition of Canada's Tim Hortons restaurants is, in my estimation, one of the best examples of a successful entry strategy into a foreign market. As a wholly owned subsidiary, Tim Hortons neatly hands off to Wendy's a very large piece of the Canadian fast food, baked goods and coffee house "pie." Add to this the excellent synergy of Tim Hortons and Wendy's combined commitment to quality foods, and you have here a classic textbook model of strategic success in the 21st Century.

References:

Struck, D. (2004, December 29). Canada looks for spot in the big picture. The Washington Post.

Wikipedia, the free encyclopedia (2006). Retrieved on June 10, 2006 from: http://en.wikipedia.org/wiki/Roll_up_the_Rim_to_Win

Wendy's International 8-K (2001). Retrieved on June, 10, 2006 from: http://www.wendys-invest.com/fin/8k/wen8k030601.htm

Govindarajan, V., & Gupta, A.K. (2001). The quest for global dominance: Transforming global presence into global competitive advantage. San Francisco: Jossey-Bass.

Wendy's Corporate and Investor Website (2006). Retrieved on June 11, 2006 from: http://www.wendys-invest.com/ne/wen040606q1sales.php

Think Global, Act Nimble

If ever there was a U.S. industry that would benefit from savvy globalization strategies, it would be the automotive industry in the 21st Century. While the U.S. auto market currently stagnates in its over-saturation, markets like China, India, Russia, and, to a lesser extent, those in Latin America are just about as hot as they get. The U.S. auto makers, "GM, Ford and to a lesser extent, Daimler Chrysler have come under increasing pressure in their home market" (Economist Intelligence Unit, 2006). They will do well to tool up their factories in Detroit to make vehicles that appeal to the tastes and needs of the car-driving populations in the countries mentioned above.

While the big three of Detroit are tooling up for global markets, they would also do well to revamp their factories and processes to be more nimble. A common problem in the Detroit auto factories is that it is too expensive to re-tool them when there is a need to ramp up production of popular models, while eliminating some of the production of models that are not selling as well. Innovation is needed here; a way must be found to use the same tools and parts for the production of significantly different auto styles and functionality.

An old technology takes on a new one

The United States is ripe for the economic equivalent of a prize fight. In one corner is an older ex-champion who is trying to stage a comeback against a new, young and popular champ. I'm talking about diesel vs. hybrid technology. While hybrid technology has grabbed all the headlines recently, diesel technology has quietly improved to the point where the popular objections of the past, like poor performance, unreliability and high pollution, are no longer relevant. The new diesel engines "offer performance, low emissions and fuel economy" (EIU, 2006).

This is also at a time when many hybrid enthusiasts are beginning to see limitations to their investment in a car that is not living up to the promises of savings. For one thing, "hybrids can only deliver (fuel) savings in city traffic" (EIU, 2006).

The Energy of the Future

While the future of energy is almost undoubtedly hydrogen, there are several obstacles to overcome before cars and other light vehicles are widely using fuel cell technology. Although "GM claims to have cut the cost of fuel cells by almost 50% over the past year, to create a vehicle that can match petrol vehicles in terms of performance, durability and ultimately affordability, significant further progress is required" (EIU, 2006). Building an infrastructure of hydrogen service stations sufficient for widespread use of fuel celled vehicles, would cost at least 12 billion dollars and is perhaps the primary barrier to the use of hydrogen, (EIU, 2006).

References:

The Economist Intelligence Unit (2006). World automotive outlook: The global shift, Retrieved on June 9, 2006 from:
http://www.viewswire.com/index.asp?layout=IWIndustryVW3&industry_id=20000002

Travel Wars on the Web

The travel agency and services industry is highly competitive because of a large number of competitors with little differentiation among products and services, and the potential of price wars.

Expedia.com and Priceline.com have different e-business strategies. Expedia.com operates as a web-based hub, connecting providers and customers and also takes advantage of offline channels. Expedia also profits from online advertising and other services like tour operators, cruise lines and internet vacation services. Priceline operates under the reverse auction model and gains commissions for securing airline seats. Both companies have had a fairly stable business model and this should sustain them into the foreseeable future.

While both companies have been profitable, Expedia has had better gross margins than the industry average, while Priceline has been below the industry average. Expedia's additional focus on online advertising seems to give them an edge over Priceline, while Priceline's customer web-interface is difficult to navigate compared to Expedia's.

Some recommendations for Priceline.com are to advertise more aggressively, emphasizing their advantages over the competition such as better prices as well as the improvements to their services. Priceline should also expand into other services and even mimic much of what Expedia is doing including revamping their website to be more user friendly. Priceline might also partner with the likes of Vonage to offer cross services and should look into acquiring complimentary companies, as a way to cost effectively expand their services. If implemented and managed properly, these recommendations will improve Priceline's profitability.

Brick and Click - Blockbuster's Good Fight

Professor Michael Rappa discusses various business models on the web. One such is the Merchant Model and this has several sub-models, including what he calls the Click and Mortar and defines this as, "traditional brick-and-mortar retail establishment with web storefront."

Blockbuster Video, Inc. has recently begun to use the Click and Mortar model in an interesting way. Blockbuster has been struggling to survive, what with the advent of Direct-TV, cable, the Internet, the availability of movies "on-demand," pay-per view, and the recent arrival of Net-Flicks.

To fight back, one of Blockbuster's strategies is to compete with Net-Flicks and do them one better. They have combined the advantage of their brick and mortar stores with the power of the Internet to create a synergetic marketing strategy. For a small monthly fee, Blockbuster's customers can now go online to peruse hundreds of thousands of movies and order the ones they want. The movie shows up with the daily mail, and after viewing, the customer just puts the videos back into their mail boxes to go back to Blockbuster. The marketing kicker is that when customers sign up for this service, Blockbuster gives them coupons for 4 free movie rentals at their brick and mortar stores each month.

Although I admire Blockbuster's spirit and inventiveness, I fear that they are really just delaying the inevitable - they will probably go the way of the dinosaur. On the other hand, they might just morph into something no one has thought of yet.

Run with it!

Here is a business idea that's time may have come, if someone will run with it. I do not have the resources nor inclination, but I put this out there because I believe that someone could make a major fortune on this one. Baring any similar, but not exact, variations such as those offered by Crystal Light and Kool-aid, I believe this to be an original idea. Those offerings do not target the flavoring of carbonated soda beverages.

The idea is to sell Pixie Stick"- style, flavored, sugar-free powder packets that would be packaged with cola, spring water, and any number of other bottled, canned and restaurant served drinks. The powder could then be added to flavor the drinks as desired, and this product could be sold separately or with the drinks. It could be sold as multi-flavored sampler packs, as well as single flavored, six, twelve and twenty four packs, to match the amounts of bottled drink packs. As mentioned earlier, these "flavor sticks" could also be sold, attached to the soda and water packs, and the straw-like packaging can also double as, you guessed it, a straw!

Coke and Pepsi have spent millions of dollars and other resources, to develop and market different flavors of their core products. Flavors like lemon, lime, vanilla, cherry, etc. have met with mixed success, and have cannibalized their core products. They could have done this simply and without all the risk using my idea.

Well, that's it - free of charge. Just throw me a bone when you make it rich ;-)

Pearl of Great Price

An Aesop's Fable

The Wind and the Sun were disputing which was the stronger. Suddenly they saw a traveler coming down the road, and the Sun said: "I see a way to decide our dispute. Whichever of us can cause that traveler to take off his cloak shall be regarded as the stronger. You begin." So the Sun retired behind a cloud, and the Wind began to blow as hard as it could upon the traveler. But the harder he blew the more closely did the traveler wrap his cloak round him, till at last the Wind had to give up in despair. Then the Sun came out and shone in all his glory upon the traveler, who soon found it too hot to walk with his cloak on.

Economies of Scale in Advertising

Economies of scale in advertising can "result from two groups of factors: (1) pecuniary economies of scales resulting from different prices for the advertising service charged to different customers (for example, discounts for those who advertise heavily), and (2) economies of scale inherent in the production function of the advertising (for example, differences in the effect of the advertising messages supplied to customers) (Peles, 1971)."

To illustrate, Coke and Pepsi, are two of the most recognized corporate brand names in the U.S. and globally. Coke and Pepsi have the size advantages to reach economies of scale in advertising, which has played a major role in their combined preeminence in the carbonated soft drink industry. The size of Coke and Pepsi may partially be attributed to the size their market (just about everyone on the planet).

"It appears...worthwhile only for big companies to advertise through some mass media, (Peles, 1971)." As an example, take newspaper advertising. A chain store can advertise in a newspaper with a wide circulation at a lower average cost per reader. In contrast, a local "Mom and Pop" store would not benefit, because a much smaller fraction of the readers would be potential customers.

Coke and Pepsi's large advertising budget are among the most important factors in their ability to survive in today's global business environment. For example, there is a direct correlation between the duration of an advertising campaign and the likelihood of its success. These kinds of national ad campaigns are obviously expensive.

The implications of this to companies in general, are that the size of your company, and therefore the amount of resources it has, may have a lot to do with its ability to survive. This is a recipe for industry consolidation through mergers and acquisitions. As has happened to the carbonated soft drink industry, increasingly more industries will begin to exhibit oligopolistic behaviors. Already over half of all industries in the United States are oligopolies (Jain, 2002). Most industries will have a few major players with any number of smaller niche players who have the nimbleness to innovate where the behemoths cannot.

References:

Peles, Y. (1971) Economies of scale in advertising beer and cigarettes.
Journal of Business, 44, (1), p. 32-37.

Jain, V.K. (2002). Note on industry structure. Retrieved April 29, 2005, from http//info.umuc.edu/mba/public/AMBA607/IndustryStructure.html.

Since you asked

What are the implications of the Global Economic Forecast for various geographic areas of the world for significant opportunity or threat, for all or specific industries?

Barring any major catastrophe like the Avian Flu, here is my take. With the projected softening of the U.S. economy over the next two years, and the subsequent difficulties this will place on emerging market countries (developing countries), a moderate threat looms over industries that support the resent stellar growth of some of these emerging market economies. Industries that provide building materials and energy, as well as some of the commodity industries like minerals, will have to make adjustments. Another sector of an industry that will likely be affected is within the investment/brokerage community. Mutual Funds that target emerging markets, will likely not perform as well.

Opportunities exist in that companies and industries can take advantage of a global climate over the next few years of overall, moderate and stable economic growth, low inflation and interest rates that will stay mainly where they are now, which is relatively low by historical standards.

--Matt

O.K. Here it is, as Promised!

Although not in the form I first envisioned it. Here is one of the best sources I have found on the Internet for keeping up with just about everything that is going on in Washington, D.C. Its a website called Congress.org, and it can keep you abreast of what bills are to be voted on before congress, what is going on at the supreme Court complete with bios, how to contact your congressional representatives and the supreme Court Judges, email the President or Vice President, voice your opinions, and sign petitions. It has action alerts that will come to your inbox as they arise, information on your state and local officials, and even federal agencies.

And here is another way to take action. A listing of most newspapers around the world can be found at Onlinenewspapers.com. Writing a letter to the editor is one small way to get your voice heard. Most newspapers with an on-line presence, have an email contact to send a letter to the editor, or an op-ed piece directly, electronically.

For anyone who wants to look apathy in the eye, and tell it to go to *#!^@*, these are the sites to get started with.

--Matt

Confessions of an Economic Hit Man - One for the A List

The book, "Confessions of an Economic Hit Man" by John Perkins, drew some attention Friday, on CNBC's "On the Money." Says an Amazon.com editorial, "Perkins, a former chief economist at Boston strategic-consulting firm Chas. T. Main, says he was an "economic hit man" for 10 years, helping U.S. intelligence agencies and multinationals cajole and blackmail foreign leaders into serving U.S. foreign policy and awarding lucrative contracts to American business.

Perkins writes that his economic projections cooked the books Enron-style to convince foreign governments to accept billions of dollars of loans from the World Bank and other institutions to build dams, airports, electric grids, and other infrastructure he knew they couldn't afford. The loans were given on condition that construction and engineering contracts went to U.S. companies. Often, the money would simply be transferred from one bank account in Washington, D.C., to another one in New York or San Francisco. The deals were smoothed over with bribes for foreign officials, but it was the taxpayers in the foreign countries who had to pay back the loans. When their governments couldn't do so, as was often the case, the U.S. or its henchmen at the World Bank or International Monetary Fund would step in and essentially place the country in trusteeship, dictating everything from its spending budget to security agreements and even its United Nations votes. It was, Perkins writes, a clever way for the U.S. to expand its "empire" at the expense of Third World citizens."

Says Michael E. Piston, "Unfortunately, despite Perkins career as a self-proclaimed "economist", his book is devoid of even a single statistic backing up this claim."

Says Tim Burness, "Brilliant, in an odd kind of way! The paradox of this book is that it often reads like an unbelievable and corny spy thriller, while simultaneously dealing with probably the most real and important issues facing humanity and the planet today. I am sure the author is well aware of this - a more academic or more "credible" account would have reached far fewer people. Regardless of how much artistic license John Perkins may have used, the essence of this book has a sobering ring of truth about it."

Whenever I see a program on T.V. or elsewhere about a subject I find interesting, I like to check it out further, either by a Google search, or in the case of a book, an Amazon.com search to read other's reviews of the book and subject. Often, news items are much more complex than at first meets the eyes or ears, and the beauty of the Internet, is that most subjects have more than enough information about them out there, to help us form our own opinion. I find that many people just need to get into the habit of taking advantage of the Internet; after all, it is still a relatively new phenomenon. But how does this translate into a positive force in society?

A friend of mine, who will remain anonymous, put it this way, "All I ask is that one of you devise a list of things to do about it that people can follow up on. Like call congressman xxx at 202-xxx-xxxx to voice your opinion or email such and such to get this changed. I want that list for myself. I want to do something but I am frustrated because I do not know what will be effective. Please once you stir up action - provide an action list to ease the frustration."

I think it would be helpful at times, to back away from looking at issues from a conservative or liberal point of view and agree that our country, although still about the best thing going, is not perfect, and that we need to work hard to improve it. Most of us, as individuals, know what is right and wrong and can see that the system is the biggest part of the problem, (the military industrial complex comes to mind). Apathy and busy lives are a couple of the "hit men" we face, and it is easy to just watch the movie of life go by, with all of its problems, but I for one, plan to make that action list. Look for it coming soon, at this blog! Oh, time to do the laundry...

--Matt

U.S. Business and Workforce Culture

The business and workforce culture of a country, really says a lot about a country and its people. Using Apple Computer, Inc. as a reference, I wish to touch on a few of the positive factors as well as some pitfalls regarding the business and workforce culture of the United States. Here is what I observe, draw your own conclusions.

Apple Computer, Inc. has, since its inception, been noted as a somewhat unusual company, in that it does not compromise quality, at the expense of undercutting their competition price-wise, in order to gain market share. This clash of value systems with the U.S. business environment as a whole, has at once, kept Apple's market share small (presumably because of their higher priced products), but also helped create a core group of Apple fanatics, with a consistent niche that keeps Apple competitive in the mix of computer and consumer electronics makers year after year.

Apple's strong commitment to ethical business practices have helped set them apart and also contributes to its loyal following of consumers. But a company that "plays by the rules," sometimes gets eaten for lunch by firms who stress win at all costs and operate with less ethical consciences.

A major strength, which also happens to be a pitfall on the flipside, is the legal environment of the United States. A country that has the rule of law like the United States, supports an economy with less friction in some instances, and encourages competition, while discouraging monopolies. Such an environment lays the ground rules, letting companies know what is acceptable and what is not so. It lets firms like Apple, know what to expect with regards to conflicts and the resolution of them. This is extremely helpful to a market economy not to mention the peaceful co-existence of the population.

A major pitfall of the United States legal environment is our litigious culture. Law suits permeate society and the business environment, and often are frivolous (meaning that they lack any merit, and only cost money and time unnecessarily). Apple, at my last count is involved in at least two major legal disputes, along with several lesser ones. Here is an example of such a law suit, which in my opinion falls under the frivolous category.

"This week marked the beginning on the trial of Apple Computer vs. the Beatle's Apple Corps record label. The lawsuit originally reported in 2003 surrounds Apple Computer's move into the music arena with the iPod and iTunes Music Store. The Beatle's Apple Corps record label was established first in 1968 and has previously filed lawsuits against Apple Computer about possible confusion between the two corporate trademarks.

Apple Computer reportedly last paid Apple Corps $26.5 million in 1991 and established a contract on allowed use of the Apple Computer trademark. According to Apple's lawyers, digital distribution of music such as the iTunes music store was explicitly allowed under the terms of the agreement (Arn, 2006)."

Apple, more than many companies, has a business and workforce culture that indeed clashes in many ways with that of the United States' culture. This has historically been an advantage as well as a hindrance to Apple's success, but it seems, at least for the moment, that Apple's formula is winning out in their chosen product and market areas.

--Matt

References:
Arn 2006, Apple vs. Apple Trial Ongoing, retrieved on March 30, 2006, from http://www.macrumors.com/pages/2006/03/20060330165738.shtml

The importance of infrastructure with Apple as an example

The economic and social infrastructures of the United States are some of the best in the world. We have among the best banking and financial services systems that support a consumer driven economy, which lends itself to the continuing success of Apple Computer Inc., and allows companies like Apple to thrive. Companies can rely on banks and financial institutions to raise money when needed, and to underwrite IPO's. The money raised can be used to develop new products, expand market share (which takes money and resources) and enter into foreign markets.

In part, because of infrastructural supports like roads, utilities (including telephone and cable needed for the Internet), railways, and subways, consumers are "free" to make purchases, shop, and have the leisure time to buy and use goods like the Apple iPod.

The United States has the best secondary education system in the world, bar none. This system consistently turns out the engineers, MBA's, and other specialists needed to support and run America's business firms like Apple.

Does it Really Add Up?

"An economist is someone who is good with numbers but does not have the personality to be an accountant. "

Consider this: An average conversation in a Starbucks around the corner, might go like this: Frank says, "the rich in this country just get richer, and the poor get poorer." Jackie, shaking her head slowly, replies, "It's just a shame."

Enter some sensible reality: Most of the "Rich" that Frank is referring to, without him really thinking about it, are those Americans who live in big houses, drive expensive cars, belong to the local country club, and would be on the street if they missed three paychecks! Is that really rich?

I know, there are a very tiny portion of the U.S. population that have more money than some small countries, but are the rich really getting richer and the poor really getting poorer? Or is that just something people like to say for some kind of effect? My point is, that the study of economics, and there have been some pretty good books put out lately that don't use technical jargon, would make many of the debates in Washington look, well, just plain silly, as they should.

One book that I recommend, which makes economics, believe it or not, enjoyable, is "Naked Economics, Understanding the Dismal Science," by Charles Wheelan. If for no other reason, I think that you would be fascinated at how many mis-conceptions there are out there about so many things. Forceful rhetoric in Washington can make something seem real that isn't necessarily so, and much of this can be explained and clarified by economics. Economic literacy would help us make better decisions for ourselves and families, and be better citizens for our country.

If people just took the time to examine their ideas and apply a little critical thinking to them, a lot of resources in the form of time, money, etc. that is wasted, would not be...And don't get me started on the French! ;-)

--Matt

How William Shatner Changed the World - No Borgs Please!

I watched the documentary on the History Channel last night called, "How William Shatner Changed the World." It was, as I expected, very funny and also amazing how much the campy 1960's series, Star Trek, has affected the direction of today's technology. From tricorders to holodecks - the original, Star Trek, and the later, Next Generation, sci-fi series', inspired geeks everywhere to try to make the show's technology a reality. The stuff on Star Trek the Next Generation even had top scientists calling the producers and writers, to ask questions about what they were seeing on T.V.

Now to get to my main topic. If anyone else saw the show, I hope they agree with me about one segment that kind of scared the, you know what, out of me. This was a short introduction about some scientist in Great Britain, who says that humans have evolved as much as they can, and he has made it his mission to cross technology with humans in "Borg" like fashion. I find this to be at best, nonsense, and at worst, if it happens, to be the point where I will defiantly draw the line. I mean, I'm not, as he says, going to put a chip in my head that will connect my mind to everyone else's through the Internet, so that they can "down-load my thoughts," and vice versa.

By the way, Mr. Shatner agrees with me...Oh, and, "I know what you did last Summer"...Just kidding :-)

--Matt

Regional Economic Integration

(Or Regional Trade Agreements)

Regional Economic Integration is the fancy word for such regional trade agreements like NAFTA (North American Free Trade Agreement). These trade pacts, are contracts among the sovereign nations of a particular region, whereby agreements are reached on issues of trade, such as upholding property rights (including intellectual property), forbidding the use of tariffs and other trade barriers, currency manipulation issues, and other agreements of mutual benefit to the member countries, like foreign economic aid, just to name a few.

Five major Regional Economic Integrations (REIs) are:
• NAFTA (North American Free Trade Agreement)
• CAFTA (Central American Free Trade Agreement)
• APEC (Asia Pacific Economic Cooperation)
• ASEAN (Association of Southeast Asian Nations) "Today, ASEAN is not only a well-functioning, indispensable reality in the region. It is a real force to be reckoned with far beyond the region. It is also a trusted partner of the United Nations in the field of development." Kofi Annan Secretary-General of the United Nations 16 February 2000
• AUSFTA (Australia-United States Free Trade Agreement)

Regional Economic Integration is of benefit to all the worlds' nation and not just for the member countries of the trade agreements (See the quote of Kofi Annan above).

This is mainly due to the global nature of today's business environment. Because the world is becoming smaller, or as Thomas Friedman says "The World is Flat," what benefits one or several countries, benefits many others. This is due to the nature of free trade. If one country makes monetary gains from a regional trade agreement, such as with their GDP, they will inevitably spend money in other economies or on imports from other economies, some of whom will be outside the REI area.

This is the case of free trade with China. While still having much to be desired, trade with China has come a long way since before the end of the Cold War. APEC (Asian Pacific Economic Cooperation) has contributed to a large part of the economic cooperative progress between China and the U.S. Because China now allows Foreign Direct Investment (FDI) within its borders, U.S. corporations have been able to take advantage of the low wage labor in the assembly of its products.

For back up to my assertions, you might care to read the following, found on the official APEC web site.

"Since its inception in 1989, the APEC region has consistently been the most economically dynamic part of the world. In its first decade, APEC Member Economies generated nearly 70 percent of global economic growth and the APEC region consistently outperformed the rest of the world, even during the Asian financial crisis. APEC Member Economies work together to sustain this economic growth through a commitment to open trade, investment and economic reform. By progressively reducing tariffs and other barriers to trade, APEC Member Economies have become more efficient and exports have expanded dramatically.A highlight of APEC's achievements in the first 10 years:

Exports increased by 113% to over US$2.5 trillion

Foreign direct investment grew by 210% overall, and by 475% in lower income APEC economies

Real gross national product grew by about a third overall, and by 74% in lower income APEC economies

Gross domestic product per person in lower income APEC economies grew by 61%

Benefits to the People in the APEC RegionConsumers in Asia-Pacific have both directly and indirectly benefited from the collective and individual actions of APEC Member Economies. Some direct benefits include increased job opportunities, more training programmes, stronger social safety nets and poverty alleviation. More broadly however, APEC Member Economies on average enjoy lower cost of living because reduced trade barriers and a more economically competitive region lowers prices for goods and services that everyone needs on a daily basis, from food to clothes to mobile phones.More importantly, economic growth leads to social advancement. In just the first decade of APEC's existence, we have seen:

The United Nations Development Programme (UNDP) Human Development Index for lower income APEC economies improve by nearly 18 percent

Poverty in East Asian APEC economies fall by about a third (165 million people), mostly as a result of strong economic growth

195 million new jobs created in APEC Member Economies, including 174 million in lower income economies

Infant mortality falling and life expectancy rising in lower income economies, which is linked to significant improvements in access to sanitation and safe water, and expanding public expenditure on health

Heavy investments in human capital, with improving education enrollment ratios and growing expenditures in education."

--Matt

References:

Asia Pacific Economic Cooperation, Retrieved on February 18, 2006 from: http://www.apec.org/content/apec/about_apec/achievements_and_benefits.html

ASEAN, Retrieved on February 18, 2006 from: http://www.aseansec.org/64.htm

Friedman, T. L. (2005). The world is flat. New York: Farrar, Straus and Giroux.

Global Minute with James Stewart. Regional Economic Development. AMBA 606 Toolbox.

Hill, C.W.L. (2005). International business with Global Resource CD, PowerWeb and World Map (5th ed.). New York: McGraw Hill.

Foreign Direct Investment Explained

Why do the corporations of one country invest in foreign economies, either by buying part or all of another nation's company, or by setting up their own "shop" completely on foreign soil?

The common explanations of FDI are Transportation Costs, Market Imperfections, Strategic Behavior, Product Life Cycle, and Location-Specific Advantages.

Transportation Costs Theory points to the common situation in which, "when transportation costs are added to production costs, it becomes unprofitable to ship some products a long distance (Hill, 2007)."

Market Imperfections is a broader theory, which explains FDI as a way to overcome the impediments such as Government imposed tariffs and lack of sales know-how (often technological) in the foreign market.

Strategic Behavior addresses the tendency of multinational corporations to imitate each other's strategic FDI decisions, although it does not indicate why one corporation made the first FDI move.

Product Life Cycle Theory sites the tendency of some firms to engage in FDI when their product has reached saturation in either their home market or a foreign market that they have already penetrated. These firms eventually turn to developing countries, investing in them as a way to extend the life of their product(s).

Location-Specific Advantages Theory addresses how some firms react when factors of production such as oil or other natural resources are found abroad. An example is an oil company, who invests in oil fields or production in another country that is rich in oil, and has low labor costs.

The theory that offers the best explanation for vertical FDI is Market Imperfections Theory. The definition of vertical FDI is either the investment in an industry abroad that provides inputs to the firms domestic production, or an investment in an industry abroad that sells the outputs of a firms domestic production process (Hill, 2007).

Of the two theories that Hill identified as the explanations for the historical pattern of vertical FDI, Strategic behavior and Market Imperfections, Market Imperfections Theory, I believe, explains a much broader range and a larger quantity of occurrences of vertical FDI.

Strategic Behavior Theory in this context addresses how a company might try to gain the corner on their business by, for example, buying the rights to a rare quantity of some mineral, in hopes of creating a barrier to other firms going into the same business. I argue that it is relatively rare to find a situation like this one, and therefore this theory is limited in its application and inferior to the second theory.

The second theory, Market Imperfections, tries to explain vertical FDI in terms of Sales know-how, which I previously discussed (see above), and also in terms of investments in specialized assets. When a corporation must invest in very costly specialized assets that utilize a foreign owned resource for production, the corporation will want to invest in the rights and or production facilities and processes that will ensure the continued supply of the desired resource.

--Matt

Apple Computer, Inc. - A Study in Strategy

Like every successful company, the relative longevity of Apple Computer, Inc. can be attributed to, in large part, its ever changing strategic and other business plans. Apple, the company who started the PC revolution with the launch of the Apple II, the first real personal computer, in April of 1977, has respectively been the fastest growing company in U.S. history, the company who made one of the biggest strategic errors in recent history, leading to its titanic loss of market share, and back again, as the comeback kid, currently reputed as the hippest company in the computer/electronics industry. Debatably, almost solely on the back of its legendary founder, Steve Jobs, Apple Computer has once again captured the imagination of a new generation, and continues to set the standard of originality, innovation and just plain boldness.

The meteoric rise of Apple, with the launch of the Apple II is the stuff of legends, and not much needs to be said, other than, at the time, there was nothing like it, and its charismatic founder Steve Jobs, along with its technical architect, Steve Wozniak, took a tremendous risk, by creating Apple Computer, Inc. out of their basements. The risk almost immediately paid off and at the same time captured the notice of industry giants like IBM.

The titanic strategic blunder I alluded to was Jobs' decision to "hold on to its monopoly by refusing for many years, to grant licenses (to other companies in the industry). This created a great opportunity for the software company Microsoft, along with its hardware partner, IBM to take the opposite strategy of licensing their products to other companies. This "open architecture" model, lead to IBM's and Microsoft's dominance in the PC industry, and to Apple's decent into the much smaller niche player as the PC company with the best operating system for graphics users, such as desktop publishers and artists.

One notable early strategy was Apple's marketing of its PCs to the U.S. educational system. Apple even gave computers to public schools, hoping, by so doing, to create a new generation of citizens who, being used to Apple's products, would then buy them as they became adults. This is a strategy that has been copied by many other companies hence.

As Apple Computer, Inc. looks to the future, its strategic and other business plans are to (1) continue to capitalize on its recent foray into the music industry, successfully integrating electronic hardware devices and web-music service, (2) revive its original personal computer and software business by departing from its historically protectionist strategy (3) continue forming strategic partnerships and alliances with other companies, sometimes with those who were historically "arch rival's." Of course this is, by necessity, a tremendous simplification, but it encompasses the essence of Apple's strategy: to play to its strengths, adapt to a changing industry, and continue to lead with original and innovative products that seize, and sometimes create, new market opportunities.

On April 28th, 2003, Apple Computer launched its iTunes website, and the question was asked, could Steve Jobs single handedly save the music industry? The music industry certainly needed a shot in the arm, and the iconic legend, Jobs, once again staked his reputation and his company's future on a hunch; that the fledgling on-line music business' model was wrong. He shunned the subscription model in favor of the simpler one, charging .99 cents per song downloaded. He hoped that this would make music downloads an impulse buy. As it is playing out, Jobs was right, and iTunes in conjunction with Apple's iPod, is an enviable combination in the electronics entertainment industry. Of course, like all of Apple's products, it helps that Apple's iTunes website is one of the best, in terms its design of engineering, user-friendliness, utility and elegance.

The success of the iPod is all over the news of late, and the iPod was one of the hottest consumer products last Christmas (2005). Capitalizing on the co-current success of the iPod, Apple has subsequently launched a number of other smaller and less expensive cousins to the iPod. Apple currently owns two thirds of the portable music device market and plans to attack the remaining third. Schonfeld (2002) says "if Apple's vision of home entertainment wins out, you can imagine a whole new line of products like iPod that will be designed to plug into Apple's digital hub; iStereos, iTVs, iCameras, iAnything." These would be variations on one of Apple's relatively new home entertainment line of products, and represent line extensions, and is preemptive defense.

Following up Apple's new found success, Steve Jobs in January of 2005 announced a new corporate strategy. Instead of remaining content as a niche outfit selling beautiful but expensive computers and related gadgets to a cultish few, the firm is returning to contest the mass market that it long ago ceded to Microsoft, Dell and others. Even thought the iPod now outsells Apple's computers by volume, most of the firm's revenues still com from the computers. Although Apple's global computer market share seems stuck at 3%, using the iPod's "halo effect," Apple hopes to gain back market share (Anonymous, 2005).

The Mac mini is the radical flagship of Apple's new strategy. It is no coincidence that the word mini mimics the iPod mini. This is a classic case of brand extension, the use of an existing brand name to launch new products in a different category (Kolter, 2003). This new computer sells for about $800 less than the mainstay iMac computer. The Mac mini comes with no peripherals so that, with the low cost and ability to plug into existing peripherals, Apple says that those thinking of switching from a Windows machine will have no excuse (anonymous, 2005).

The most recent strategy at Apple is the decision to start using Intel chips in its hardware while dropping IBM, whose chips, they are betting, will not be suitable for their products in the foreseeable future. IBM, Jobs states has been lagging in such metrics as clock speed, power consumption and heat generation. IBM also appears to have refused to give Mr. Jobs the kind of price discounts he was demanding (Anonymous, 2005).

A far more strategic, but unlikely, change would be for Apple to use the Intel alliance to reconsider its basic philosophy about combining hardware and software. Tom Berquist, an analyst at Citigroup, reckons that it could try to sell its operating system, "shrink wrapped" to owners of other Intel-powered computers, thus attacking the huge installed base of machines running Microsoft's Windows. As it happens, Apple's migration to Intel chips will coincide with the launch of new versions of Windows code-named "Longhorn," that will force many users to upgrade anyway (anonymous, 2005).

A quick side note is that Apple has also been re-positioning itself by introducing new products targeted at large corporations. This is another example of brand extension and something that they haven't historically done.

Apple's global business plans include one of the hottest markets today and also takes advantage of the trend of outsourcing to countries where there is a comparative advantage, namely, cheap labor. If Apple is doing well with taking advantage of China's low cost labor in assembling components for their products, they have a ways to go with their marketing efforts in the middle kingdom.

Currently, manufacturing of many of the components used in the Company's products is performed by third-party vendors in Taiwan, China, Japan, Korea, and Singapore. Final assembly of substantially all of the Company's portable products including PowerBooks, iBooks, and iPods is performed by third-party vendors in China (Apple Computer's Form 10K, 2005).

While Apple is taking advantage of this aspect of the global economic village, they will have to re-think, re-package and re-write their strategy for selling their products to China's fast growing number of affluent, gadget-loving young adults.

"Apple's mistaking the whole of China as the 51st state of the US by sticking a huge iPod ad in the dead center of the 3rd Ring Road, with nothing more than a red/orange/yellow background, the by-now famous/infamous/notorious silhouette, and "iPod" and a URL. People actually only get something like 3 seconds to "get" it, especially the drivers on the ring road. If they don't get it, they'll forget it.

This is especially tragic. These are the "unliberated" masses still stuck with the MS imperialists, headed by Bill and Balmer. Apple tries to "take aim" at them with "liberating" Apple ads, but they liberate nobody because they don't seem to speak in their language. Ads that actually told people more about what an iPod was, or more iPod-related PR events, would help a bit more.

It'll be interesting to see how the new "Intel Mac" ads fare in China, and if they'll get to the Middle Kingdom at all. If this be the case, this will be the first Mac-related ad since the PowerBook G4 ads of 2003. Since Intel is mentioned in the new ads, and since people in China are (somewhat) aware about Apple's shift to Intel, people could understand a bit more about this recent, well-advertised move. But to make a big impact, Apple needs to do more than just translate those ads into Chinese. Apple needs to think the way most Chinese think" (Feng, 2006).

Apple Computer, Inc. is a true American original, but like all of us, Apple must become completely comfortable with a truly global world; a flat world; a world with fewer and fewer boarders, and tremendous competition and fast pace. This is a challenge that is at once, both awe inspiring and a little frightening.

References:

Kolter, P. (2003). A framework for marketing management, (2nd ed.). Upper Saddle River, NJ: Prentice-Hall.

Apple Computer's Form 10K (2005). Retrieved January 19, 2006 from http://media.corporate- ir.net/media_files/irol/10/107357/reports/10K_FY2005.pdf

Jobs, S., & Wozniak, S. Fascinating facts about the invention of the personal computer (1976). Retrieved August 8, 2003 from http://www.ideafinder.com/history/inventions/story071.htm

Schonefeld, E Apple vs. sony: A digital smackdown (2003, February 4). ZDNet. Retrieved January 14, 2006 from http://zdnet.com/2100-1107-828494.html

http://www.apple-history.com/

Apple Computer, Inc. http://www.apple.com/investor/

Anonymous (2003, May). How to pay the piper. The Economist

Anonymous (2005, June). New best friend. The Economist

Anonymous (2005, January). The halo effect. The Economist

Feng, D. (2006). SF, people's republic of macs: Ad paradise. Retrieved on January 19, 2006 from http://www.macsimumnews.com

Imagine the Future?

A case for the Balanced Score Card -- for now

Measurement systems such as financial ratio analysis and EVA, which focus on numbers to determine the past performance of a firm, are better suited for the old, slow moving economy, when product cycles were much longer and the environment was less competitive. The numbers told shareholders how the firm was doing, and gave management adequate measurements for implementing their top-down controls over employee activities and internal operations.

Along comes The Balanced Scorecard, which I believe is much better suited for today’s globally competitive and fast changing business environment. The balanced scorecard, from everything I am reading about it, is more forward looking, customer oriented, comprehensive, yet relatively simple, and integrated. The idea of focusing on achieving stability in creating new products is a new concept, and I cannot help but think of the contrast of between contemporaries such as Time Warner and Google or Yahoo. Time Warner is now under siege by a major shareholder for not being nimble enough to keep pace with what is going on in the media industry. Both Google and Yahoo are quite the opposite, and at least Google’s share price trajectory, reflects this quality. Yahoo has even been criticized for branching off in too many directions and may not know what business they are really in. But that’s for another discussion.

Also, The Balanced Scorecard, more than previous measurement systems, helps managers consider the unintended consequences of improving one area of the business. I have also learned how the Balanced Scorecard emphasizes the importance of customer satisfaction and gives managers tools to create and maintain customer loyalty and satisfaction. With the Balanced Scorecard, stakeholders can still look at the numbers to make decisions about the economic viability of the firm, indeed, they can find out more, and make better decisions with the information uncovered by this new measurement system.

The Balanced Scorecard is a tool that managers can use to guide their firms into the future. As an analogy, if ratio analysis and EVA give information on preparing for the next few days weather, think of the Balanced Scorecard as the farmer’s almanac, which predicts the weather a year in advance. As many aspects of life on our planet speed up, it becomes more important to accurately predict and prepare for the future. The 911 commission concluded that our main failure was one of imagination. Excellence in business now, more than ever, requires imagination coupled with good information and a system that can bring it all together. The Balanced Scorecard is the best management tool to date for this…that is, until someone imagines something new.

--Matt

Confidence - Inspiring

Larry Kudlow has a good handle on the economy, as he summarizes today's speech to to the National Association of Business Economists meeting in Chicago, by Alan Greenspan.

Kudlow: "Mr. Greenspan hailed the free market writings of economic philosopher Adam Smith, and he traced an historical timeline all the way to the eminent economist Joseph Schumpeter’s gales of creative destruction, also a paean to the merits of resilient capitalism...It was confidence-inspiring speech. It was a leadership speech. And it surely was a speech providing guidance for his successor."

Click here to go to the summary by Larry Kudlow.

--Matt

Separation of Church and State in 2005

I do not have a JD, nor am I thoroughly versed in the all of the arguments for or against issues involving the separation of church and state. I do have gut feelings, backed by some observations in regards to our first amendment provision that “Congress shall make no law respecting an establishment of religion, or the free exercise thereof.” It seems to me that for a people to be free, this is an essential ingredient to have built into the Government. Much of the U.S. Constitution deals with preventing abuses of power, and nothing scares me more that the thought of a Government that can wield the power of a religion over its people. The Taliban comes to mind.

So where do we draw the line when it comes to how far our Government can go in promoting, or even allowing religious expression in the public arena? I am one Roman Catholic who does some thinking for myself, and I believe it is important to keep in check, those whose agenda may go far beyond allowing prayer in public school. It may be a cliché, but it really is a slippery slope when a child in a public school, is put with a group of peers who are praying to a certain God, and in a certain way, that goes against the child’s home religious life or personal beliefs.

It is immaterial that I believe that prayer is a positive thing for the child and society. To me, the idea of respecting each person’s freedom to express or not to express a faith, trumps my own subjective framing. More troubling, is that introducing such a precedent in our society gives fuel to those who would, given enough power, eventually change the U.S. from a democracy to a theocracy. This would mean the death of what the Founding Fathers had in mind for the United States. So the next time you see those “annoying” atheists on T.V. defending their rights to not believe in God, you might be wise to consider, that in a round about way, they are also defending your right to believe in God.

Grist for the Mercurial Mill

Notes from, “The Disappearance of the Universe,” by Gary R. Renard

Copyright 2002

What would you do if you were sitting quietly in your living room when a mysterious couple appeared from out of nowhere – and then told you they were “ascended masters” who had come to reveal some shocking secrets of existence and teach you the miraculous powers of advanced forgiveness? When two such teachers appeared before Gary Renard in 1992, he chose to listen to them – The result is this startling book.

• Pg. 368 – New Age “Earth Changes” – Conservative Christians say New Age movement is the work of the devil – But they say the same kind of things about end times

• There are no end times

• Pg. 370 – No world peace in the 21st Century

• Love is stronger than fear – means good will always overcome evil

• Pg. 370 – 371 – In 1983 Soviets on Sept. 26th – a software glitch made the Soviets think they were under an all out missile attack by the U.S.A. They were within 5 minutes of launching theirs. Colonel Petrov aborted the attack – saved 100 million people and lost his job. Most people don’t even know about this

• In the 21st Century – everything will be bigger, stronger, faster and scarier. No earth changes, but more extremes in temperature, both hot and cold. Global warming is true but also contributes to colder extremes – this creates conflicting studies so that in the confusion, corporations continue to pollute

• More children getting asthma because of this and acid rain will kill lakes

• Trade agreements will seek to replace national laws with decisions of international counsels – putting international corporations above the law

• In the 20th century, money became more important than people – in the 21st, money will become more important than laws

• Legislative democracy becomes more and more like professional wrestling – all show, with the ends already determined

• St. Louis and NY City are both on earthquake faults

• Pg. 373 – Climate problems will be many floods and droughts in the 21st Century

• Within 30 years, hydrogen-powered cars and various hybrids will start to dominate, first in Europe and then U.S. Hydrogen-powered cells are the energy of the future – Oil will still be used for other products

• Later in the century, commercial planes will go from New York to Los Angles in 30 minutes instead of 5 hours

• There will still be good and bad – still the haves and the have-nots – All things in this world, good and bad, that seem to appear, are really projections of the one mind. If someone tries to kill, he is really trying to kill himself and projecting it outward. We all have extremely ugly, unconscious guilt, and we can only forgive ourselves by forgiving all others. This is the way to Heaven.

• The fall of communism will gradually usher in the biggest economic expansion in history – The Dow Jones will be trading at the 100,000 level with in 50 years (by 2043) - This was reveled to Gary in 1992 or 1993

• In the 21st Century, the biggest threat to the west will be the threat of nuclear and biological terrorism

• Conventional bombings will continue

• Terrorists will manage to detonate a nuclear device in a major city – life on earth will never be quite the same after that

• Everyone unconsciously knows everything that is going to happen.

• Capitalism is better than fascism – With Capitalism people have the freedom to seek the truth

• Money will be the new god – There is nothing wrong with money, but there is nothing spiritual about it either

• People will still see death as part of the circle of life, when it is really just a symbol of the great mistake

• NRA will still win against the majority

• Humans will walk on Mars and discover anthropological evidence that intelligent life once occurred there.

• First contact will be made between humans and humanoid life forms from another planet (not from Mars)

• You can still pursue your goals – It’s all about giving up psychological attachment – “God is,” is the absolute truth

• There are beings living on other planets and some do visit the Earth – They are our brothers and sisters in Christ (Holy Spirit)

• Most crop circles are authentic made by electromagnetic chi directed from the level of the unconscious

• Once you have reached mastery, then if you choose to join with the bodies on the level of form – then you are doing what you are suppose to but with forgiveness and the holy spirit is with you.

• Pg. 98 and 99 – The role of religion is positive but it is more of a social phenomenon

• Pg. 9 – Jesus was often misquoted and misunderstood

• Pg. 10 The world is the perfect opportunity for forgiveness and salvation and the prodigal son means – the son foolishly thought he/she could venture out on his/her own. The Son (mankind) is forever innocent

• Jesus chose to die on the cross in order to show the way to heaven; by forgiving

• Jesus was married to Mary Magdalene – He didn’t need sex for the last few years of his life

• Jesus made mistakes but could very quickly forgive himself

• Pg. 77 – God’s son shall return to the kingdom whole and complete, and in the end, there will be no one who does not stand with us. Jesus (Holy Spirit) cannot loose

• Pg. 53 – But the truth is that human types have built and destroyed many highly technologically advanced civilizations on this planet. What you refer to as Atlantis is only one example, and the same pattern is being repeated as we speak

• Pg. 59 – As Einstein noted, past, present and future all occur simultaneously

• Pg. 146 – What is called evolution was merely the ego separating all at once by seemingly dividing and sub-dividing cells, over and over to make bodies and brains that appear more complex, and thus more impressive. Yet all bodies are the same in their unreality

• Pg. 123 – God has created Christ to be exactly like God, and to share his eternal love and joy in a state of unencumbered boundless and unimaginable ecstasy!

• For just an instant, for just one inconsequential fraction of a nanosecond, a very small aspect of Christ appears to have an idea that is not shared by God. It’s a kind of “what if” idea. It is like an innocent wondering in the form of a question – which unfortunately is followed by an apparent answer. It could be put as: What if I go off and play on my own?

• Because your idea is not of God, He doesn’t respond to it. To do so would be to give it reality. You never really left heaven anyway. You’re still there, but have entered into a nightmare state of illusion. “ a tiny, mad idea…” of separation

• While you may still try to create, you cannot really create with out the power of God, so everything you make eventually falls apart

• If this were the real world, God would be cruel. For no Father would subject his children to this as the price of salvation and be loving

• Pg. 263 – When you really wake up, what appears to be real before is now recognized as the idle dream that it is. Then it is forgotten, or at least rendered meaningless. Your present lifetime and all of the others will disappear, and when everyone reaches the same state of enlightenment, the universe will disappear – leaving only God’s universe of Heaven

• Pg. 63 – Joseph Smith was doing something else. He wrote down what he was suppose to from these metal plates he was translating

• Pg. 56 – Anything that you learn stays in your mind forever. You can’t loose it; even if you’re not conscious of it, it’s still there. That’s why you shouldn’t be overly concerned if you think you might not make it to Heaven in this particular lifetime. Learning is not linear. Not only does everything stay in the mind, but you can rest assured that any seemingly linear decision about reincarnation is not made by the human body or brain. That decision is made by your mind on a completely different level, depending on whether or not you have done your necessary part in helping the Holy Spirit heal your unconscious guilt

• All ignorance is actually repression that exists in order to produce a particular effect for a specific reason

Freedom of Speech in 2005

Our founding fathers guaranteed free speech in Amendment I of the Bill of Rights in our constitution (See Amendment I below). I wonder how they would feel about our current administration's attitude about this. The President has tried to quash any criticism of the Iraq war by saying it is unpatriotic. Further, the administration has allegedly paid reporters to write favorable press about the administrations policies. This has fostered everything from severe outrage, to late-night talk show jokes. I tend to react a little in both ways. On the one hand, what the President is doing shows the world that we do not even take seriously the very things we are fighting for them to have as well. On the other, I think it is somewhat funny that our President is trying to do something that has no chance of working, and will only hurt him.

The advent of blogging and the explosion of communication technologies will make, I believe, attempts at quashing free speech more and more difficult. Technologies like these in the hands of the masses mean power to the people in ways that our ancestors could not even dream of. Everyone has a voice, and now we have the tools to really use them. Democracy never had it so good!

Although, some argue that dialogues among the people do very little to effect policy at top levels of government, I contend that the very act of open and free dialogue among ordinary citizens, can benefit societies in ways that are not, at first apparent. People sharing ideas with other people are how most learning takes place. When more and more people are educated and informed, democracy is supercharged. People in this country and other democracies, can affect policy by voting, lobbying, writing to elected officials, petitioning, peaceful protests, having electronic Towne Hall meetings and by using other media. Technology has only made this easier.

One of the criticisms of the way America handled the intervention (invasion) of Iraq, was that the U.S. soldiers, and those who commanded them, did not have a very good understanding of Iraqis and Iraqi ways. If more of our ordinary citizens and soldiers had been engaged in ongoing dialogues with Iraqis and each other, this would likely not have been the case. This, I believe, is why it is important to have free, ongoing dialogues on any issue of importance. It does get weary sometimes, all this debating, with all the strong feelings and such, but as Churchill once said, "democracy is the worst form of government, except when you consider all other forms."

Bill of Rights, Amendment I:

Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the government for a redress of grievances.

As a side note, (exercising my first amendment freedoms) the first Bush administration, as well as the Clinton administration had begun to put into place, programs that likely would have ultimately destabilized Iraq and created the kind of results we are hoping for. Bush II could have followed up in a number of ways that might have made a long, drawn out war unnecessary. -- Matt

Happiness and the T.V. Remote

As a confirmed armchair sociologist, I sometimes come up with theories that warrant a sound statistical research study. My latest theory occurred to me as I was sitting in my living room one evening, and I uncharacteristically took control over the T.V. remote. My wife did not object this time, and we watched a program that she would not have normally watched. The thought occurred to me that what we watched could be useful to her in her conversational activities at work and with me. (Diversity in the workplace is desirable, and prospective employees are often considered partially on being well rounded). Then I wondered if couples who share the remote might have more to talk about than couples who did their own thing. The stereotype comes to mind of the husband who watches football and golf and the wife who watches cooking shows and soap operas. I theorized that couples who had more to talk about, might be happier in their relationship, and that sharing the remote might facilitate more communication.

The old chicken and the egg problem appeared; were couples who naturally communicated well, more likely to share the remote? I wondered if couples, who naturally did not share the remote, but agreed to share the remote for a period, might reap the benefits of better communication. My assumption is that couples who communicate well, are generally more satisfied with their relationships and therefore happier. I can tell you that I am glad I watch T.V. with my wife. By watching something that I would not normally watch, I stretch myself, not to mention make my wife a little happier. Sharing the remote gives us a little more common ground, and just sitting on the couch together helps our relationship. (Turning off the T.V. at this point is often recommended! ;)

I guess I will never know for sure the answers to my questions about the T.V. remote, other that by paying attention to the unscientific, anecdotal evidence, but it is fun to muse on such immensely consequential questions. --- Matt

Do you see what I see?

It is a rather harsh critique, but I have included an excerpt here from a spiritual book that has some interesting things to say, not just about the United States and our capitalistic and political system, but offers a solution to anyone who wants to find true peace and happiness. The solution and the philosophical "story" that underpins it are surprising to say the least. Apparently, our common beliefs about the world, our universe, and even God, are based on incorrect assumptions. This book will have you questioning even what you see in front of your face.

What follows, is not necessarily my opinion, but I do find much of it to ring true, however much I'd like to deny it. My father-in-law (who is a good and wise man) has said that, "you should believe nothing of what you hear, and only half of what you see." I like that. --Matt

From "The Disappearance of the Universe," by Gary R. Renard, © 2004

"The United States, being in a position of power that has never been achieved by any other nation in history, has much more of a responsibility when it comes to diffusing situations than anybody else does. Take the Middle East, for example. Yes, the terrorists are psychotic -especially when they claim to be doing something for Allah. The God of the Koran, although spelled differently, is the same God as the God of the old and new Testaments. While the particular God presented by these religions may not always be a happy camper, it's ludicrous to think terrorists are correct in hijacking a religion and using it as an excuse for their own violent purposes. Although every religion ends up getting used by psychotics as a justification for their own insanity, the leaders of these movements have to get somebody to listen to them in order to gain power - and especially money. The question you should ask yourself is, does the United States make it harder or easier for these fanatics to gain support from their people?

Your Presidents will try to tell you that America is hated by these terrorists and other people in the Middle East because you stand for freedom and democracy. That's false at best and a cynical lie at worst. What did the Shah of Iran have to do with freedom and democracy? How about the Emir of Kuwait? What about the royal family in Saudi Arabia? What do they have to do with freedom and democracy? Nothing. The government of the United States has become famous around the world in the last hundred years for propping up any government that will watch out for the best interests not of the local people, but of the American-based or U.S. dominated multinational corporations.

The terrorists hate you for their own psychotic reasons, but your country is hated in the Middle East by average people not because you stand for freedom and democracy, but because you don't stand for freedom and democracy. You stand for whatever's best for American money. You care about their oil, not about them. You care about the most efficient way that your corporations, whether at home or on foreign soil, can make money in any situation - not about democracy. Most of the people in the world know this, but not the American people, who have been brainwashed by television propaganda for the last half a century into believing America can only do right. Since the mid - 1970s, the big corporations, through acquisition, have completely sewn up their editorial control over the news media. In the meantime, their agenda for the Middle East has been anything but altruistic...…

Your country is often a positive force, but usually with a hidden agenda. Even the Marshall Plan to rebuild Europe after World War II was done just as much to promote your capitalistic ambitions as it was for humanitarian purposes. The greed of your corporations has grown exponentially since then. There has always been the element of an empire based on money underneath the surface...…

When President Eisenhower left office, he warned your nation about the power of what he called a 'military industrial complex.' While there is nothing in your constitution about capitalism, America is not a democracy - it is now a moneyocracy. Your banks, their legal loan shark credit card companies, the insurance companies and your major multinational corporations seek to ultimately become above the law and own the world. They own America and its political process, and will continue to ensure in the future that your government of the rich, by the rich, and for the rich shall not perish from the earth..."

Biased toward Equality

I am a big fan of equality for women in business, and just about everywhere else for that matter. Call me somewhat biased, being that my wife provides most of the “bacon,” in our household. Call me somewhat biased, being that I grew up with a strong mother and a feminist sister. Call me somewhat biased, being that my oldest child is a girl and I naturally cheer her on. I am also one of those people who naturally roots for the underdog. But, as many of us do, I also love a winner. So when I read this article in the Economist, I remembered an essay I wrote in 2001 about a very successful CEO, who just happens to be, surprise, surprise, a woman! I have included an excerpt from the Economist here, followed by my essay. I am now wearing my Cheerleading hat.

-----------------------------------------------------------------------------

Women in business

Helping women get to the top
Jul 21st 2005
From The Economist On-line: no author sited

“For every ten men in the executive suite there is one woman, a ratio that has changed little since the term “the glass ceiling” was coined two decades ago to describe the barrier that allows women to see the top of the corporate ladder, but seems to stop them from reaching it. Despite much discussion, and efforts by both women's and business groups to break that barrier down, the world's biggest companies are still almost exclusively run by men.

Yet, at the same time, a growing number of those companies have become convinced that it makes good business sense to have more women in their executive suite. Hard-nosed male bastions such as ABB, BP and General Electric have renewed their efforts to help women reach the higher levels, not out of any sense of corporate social responsibility but because they genuinely believe that it is good for their profits. Research from America, Britain and Scandinavia supports their view, showing a strong correlation between shareholder returns and the proportion of women in the higher executive echelons. While this does not establish a causal relationship, it does suggest that a corporate culture which fosters women's careers can also foster profitability.”

---------------------------------------------------------------------------------

The article also points out that Women are often better at communication and team-building, and that a diverse work force is more likely to spot threats coming from unlikely directions, as IBM found out in the early 1990s. It then outlines ways that corporations can foster such diversity in their own work force, and bring more women “on-line” in the executive suites.

My essay follows. It is worth pointing out that the CEO is still in place today, and the company is still tops in the online world. --Matt

Manager of the Year, 2001
By Matt Vossler

My pick for top manager in 2001 is Margaret C. Whitman of eBay, the online auction site that continues to succeed, where so many others flounder and fail. With a series of innovations, new initiatives, and good management, eBay, under Ms. Whitman, has posted an 80% increase in net revenue from last year's third quarter over the year before. Ms. Whitman continues to map out a recipe for success, when so many companies have, or are, going under in the struggling dot COM world. Ms. Whitman is also a wife and mother to two boys, no small feat in itself!

Under her 4-year watch, Ms. Whitman has continued to come up with exciting new ideas for eBay, with new initiatives, acquisitions and partnerships. Partnerships with the likes of IBM and Microsoft give eBay a certain legitimacy in the dot COM world, where too may fly-by-night operations exist. One recent change at eBay is the expansion into fixed price e tailing with the acquisition of Half.com. Another innovation at eBay is the ongoing and systematic education of its customers and potential customers through such avenues as the eBay University, which offers online classes on such topics as, "how best to sell products on eBay."

In a year when so many companies didn't meet their earnings targets, the stock market, as a whole, declined, and the U.S. economy officially slipped into recession, eBay, under Margaret Whitman, has continued to help the reputation of the online business world with innovations and increased profits and stock price. Margaret C. Whitman, eBay's CEO, gets my nod for top manager for 2001.

References:
Furchgott, R. (2002, January). The best CEO's; Worth picks the top 50 CEO's of 2001, 2000 and 1999. 3 pages. Retrieved January 26th, 2002, from http://www.worth.com/ceos/9.html

What makes a Muslim extremist?

If, as you read below, it strikes you that the Internet is a very effective tool for allowing terrorists to recruit, train and sometimes just fester, you are getting the right idea. Most tools can be used for good or ill, and the Internet is not an exception. If the terrorists are disseminating their brand of "activism" with the help of Internet, then those who are on the side of freedom and morals, can, and are, using the Internet to help disseminate our collective wisdom in the vanquishing of radical Islam. This my current contribution to this end. Remember, there's a lot more of us, than them!!! My prescription for now is to go to this site, We are not Afraid, and then read the following article from the Economist. But don't call me in the morning...I probably won't answer :) --Matt

Excerpt from an article in the Economist:

"What prompts young British, French or Dutch Muslims to look for such mentors? Senior British insiders say that, although paths to extremism vary widely, they tend to follow certain social and psychological patterns. Frequently, a young Muslim man falls out of mainstream society, becoming alienated both from his parents and from the "stuffy" Islamic culture in which he was brought up. He may become more devout, but the reverse is more likely. He turns to drink, drugs and petty crime before seeing a "solution" to his problems--and the world's--in radical Islam.

Olivier Roy, a French writer on global Islam, has described "neo-fundamentalism" (which may or may not be violent) as a broad reaction by Muslims in western countries against their families and background, as well as against their host societies. As Mr. Roy portrays them, such Muslims have abandoned the food, music and customs of the "old country" but still feel repelled by the ethos and values of the "new country". Adrift from both, they are attracted by a simple, electronically disseminated version of the faith which can readily be propagated among people of all cultures, including white Europeans.

Another French "Islamologue", Antoine Sfeir, has identified relations between the sexes as a big factor in the re-Islamisation of second-generation Muslims in Europe. Because young Muslim women often do better than men at adapting to the host society (they tend to do better at school, for example), old patriarchal structures are upset and young men acquire a strong incentive to reassert the old order.

In many cases, say British specialists, groups of young, disaffected Muslims goad one another down the path to extremism. People who may be bound together by ethnicity, worship or criminal activity develop a common interest in the suffering of Muslims across the globe. Websites and satellite television channels then supply visual images and incendiary rhetoric from any place where Muslims are fighting non-Muslims. The favorite war used to be Chechnya; now it is Iraq.

As an incipient extremist group grows more obsessive, and its weaker brethren fall away, hard-core members often withdraw from the mosques. Indeed, a big recent trend in European Islam, says Mr Roy, is the mass withdrawal by militants from mosques that are under surveillance. This has made extremism even more elusive, and the internet's influence even greater. To a large extent, "the internet has replaced Afghanistan" as a source of training and inspiration for militant Muslims, says Stephen Ulph, a scholar working for the Jamestown Foundation, an American think-tank.

Through the web, even dead al-Qaeda fighters live on, says Mr Ulph. On one website that ceased operations last year (but has several imitators), it was possible to read the writings of senior, recently slain al-Qaeda men on everything from physical training to guerrilla tactics.

Britain's approach to tackling domestic extremism has sought to mix vigilance with openness, on the principle that militants are least dangerous in places where they and their followers can be closely watched. The domestic intelligence service, MI5, has expanded and moved its lens away from Irish terrorism; these days, about half its attention is directed at Islamist activities. But nobody, not even the spooks, believes wiretaps and infiltrators alone are enough to defeat Islamist extremism. To achieve that end, Muslims must learn to police themselves.

The authorities in Paris have, if anything, gone even further than those in London in trying to co-opt and co-operate with the mainstream of their country's Muslim community. At the risk of compromising France's secular traditions, the government has groomed the French Council of the Muslim Faith (CFCM), elected via mosques rather than by ordinary Muslims, as a privileged interlocutor.

As both Britain and France have found, such tactics can involve hard trade-offs. As liberal French Muslims see things, their government, in its haste to find Muslim friends, has needlessly given some crypto-fundamentalists a bigger say in the nation's affairs than their numbers warrant. In Britain, too, the government has found that offering sops to the MCB ties them to policies (such as the bill to outlaw religious hatred that is going through Parliament) to which other citizens object.

But these days, European governments have few higher priorities than draining the waters in which incorrigible Muslim extremists can so easily swim. If wooing moderate European Muslims and, in the process, offending others is the necessary price, they will gladly pay it."

If this article interests you, you can find more at www.economist.com

Fair and Balanced on the Iraq war

What follows is a short email I sent to some of my friends, and have posted here. I did this because one of the comments (see comments following the post) was particularly thoughtful and engaging.

As you may know, I am a critic of the war in Iraq, and even changed parties because of my gut-feeling that the premise for the war, to protect us from WMDs, was mostly a sham, to put it bluntly. Any way, I encourage you to check out this web-site. It is a blog of one Iraqi citizen who plainly feels that he and his fellows have benefited from the war: http://afreeiraqi.blogspot.com/

Peace in the Home

"I'll tell you the secret as to why couples get divorced....selfishness" -- Brother King

Introduction

A recent news story suggests that wives who speak their minds to their husbands, tend to live longer on average, and it sites specifically that they are less likely to die from heart disease or strokes. This makes sense to me, because my intuitive sense tells me that it is better to let out frustration and anger than to keep it bottled up.

So how can you have peace in the home, if wives are confronting husbands, every time they have a beef with them? The answer, I believe, is that it varies with each home. What I mean is that there is not a one size fits all kind of answer. Each couple has a different way of relating to one another, and if you add children into the mix, their is going to be a fairly unique set of relational dynamics.

This is why I think that self-help books, that claim they have the answer to all your problems, more often than not, fail. Many people go from one book to another, and one seminar to another, even to the point of getting hooked. This is not to say that the self-help industry is all bad, or does little good. What I am getting at here, is that each of us, need to examine our lives and our activities with a critical eye. What you read, and what you hear, needs to be filtered through your own set of criteria, based on your particular experience and situation.

This brings me back to confrontations between husbands and wives. I sometimes feel a little guilty when I have an argument with my wife in front of the children. It helps me to realize that this is normal and even healthy, up to a point. I feel that as long as each party is "playing fair," i.e. not using physical violence, or threatening it, and not, for example, going so far at to threaten divorce as a routine way to manipulate the other, then it probably falls into the range of healthy bonding patterns.

Of course, I cannot categorize every example of relational discourse into what is healthy and what is not. Ergo, my earlier mention of using your own critical thinking process; each of us has a brain for a reason, no? I will share something that has helped me as a husband and father, especially early on. It is the idea that I came up with, that there comes a point when one is trying too hard. As many have observed, children usually end up O.K., often in spite of difficult circumstances.

Another important factor that I have found in marriages that work, is good communication. Men seem to be less inclined to talk to their wives, and another common complaint from wives are that their husbands don't listen to them. I think that this is a plague! We, both men and women, need to listen more, and do a better job at it. I'd like to point out here, that men often want to fix any problem that their wives share with them. They think, well if I fix it, then it will go away and everyone will be happy...got to fix it and fix it fast. Some women do this too. An example is that of a husband who complains about his job, and the wife feels so much anxiety about this, that she urges him to find another job right away. She is really trying to relieve her own anxiety and isn't even aware that she is doing this.

Another funny thing is that in many cases, both husbands and wives think that the other party doesn't appreciate what they go through. Often men think that their wives have the "easy part," and the wives think that the men have it easier. Or the man thinks that his wife doesn't understand what he goes through from day to day, and vice versa. Who is right? It doesn't really matter who is right. The point is, there is a lack of connection, of appreciation. This kind of envy and self-pity leads to blaming, and that only puts up walls and destroys intimacy.

I almost want to recommend to couples, myself included, to do an exercise with each other. That is to each spend a week "shadowing" their spouse. To follow them all day (keeping out of the way) for a week. Then the next week, the other will do the same. I bet there would be quite a few surprises for both of them.

Finding Peace

So how does one find peace in the home, when spouses and children are constantly demanding of you, society offers little help, and you have your own unresolved issues stretching back to your childhood?

At the risk of appearing to cop-out, I will begin with the cliche that peace (in the family) begins in your own heart. The pathways to peace are many. Some people find it in nature, some with religion, some with meditation, some with social connection, some with counseling, some by reading or traveling or exercising, and some with a combination of these and many other venues. Even life itself may find a way to make you slow down, unfortunately this is too often through a disease or some other catastrophe.

Conclusion

Our world currently works against the family...pervasive drugs, violence on television, real violence, porn on the Internet, a media machine that makes us feel bad if we don't have the perfect body or life, corporations that ask, "what have you done for me lately. It seems, that the battle is so up-hill, that we don't stand a chance. We give up, and live a life of reaction, rather than taking control of our thoughts, emotions and actions.

But when a father is at peace, he is accepting of his children, and wife. He has confidence in them and their ability to find their own way. This kind of acceptance and faith, permeates the family and comes back to him. It becomes a self-fulfilling prophecy. I urge you to do what ever you can to get to this place. Read books, go to self-help groups, visualize what a life like this could be like, keep trying different approaches until you strike gold. It will be worth it, believe me! If one family can do this, others can too.

Remember the barrier of the one minute mile? When it was finally broken, the flood gates were open, and many other athletes began to run it also. Some families are doing this already, it can be done. It may take you years, or you may be there already. If so, congratulations, spread the "word." "Home Grown Peace." Pass it on! It will come back to you in the circle of life.

--Matt