• Transforming Perceptions Of Reality

We have entered a new phase of reality distortion as negative events become positive in their reporting. Truth is being transformed. I don’t refer here to politicians lying about the state of affairs to promote a self serving scheme or other. I refer to the mainstream media and its warped reporting of the reality its audience lives through each day.

Perhaps we subconsciously need the adulteration of our realities, converting them into distracting wishful deceptions. Is there a chance that the effect is dispersing our anxieties? With so many directly affected by a burst-mortgage-bubble recession, positive spins are readily accepted. How else can one explain an acceptance, with all associated relief, of continuing increases in unemployment numbers? Is it because the totals are not as bad as had been expected? How did it make any sense that the financial institutions most responsible for the current state of economic affairs became the too-big-to-fail partners of government? Is there any doubt that Wall Street controls the agenda?

Why is it good news that government has insinuated itself into the heart of American industry while permanently bolstering union influence over the management of companies like GM? Has something new been introduced into the concept of socializing industry? Did Soviet Russia not prove beyond any doubt that government-in-charge doesn’t work? The current version of hope-and-change appears to simply mean Big Government.

Is it really good news that the health care industry is heading irreversibly toward a day when it will be a government run business? Were there not alternative strategies available to seriously improve the state of health care including those discussed here: Health Care - What You Are Not Hearing? But wait, there’s more good news coming, and please ignore the $12 trillion U.S. national debt almost equaling the Nation's GDP, since it only amounts to $111,000 per taxpayer. It is apparently great news that this amount is minor when compared to the funds “committed” to health care and pensions that the Baby Boomer generation is fully expecting just around the corner.

When a President professes concern about deficits, but supports unprecedented spending programs sending the Country into out-of-control deficits and debt, the headlines read, “good news,” because he doesn't really want to do it, but he has to. The media sells us the gossamer subtlety of "intent," to promote acceptability of truth distortion. The fawning mainstream media is doing its best to channel public consciousness down the feel good road.

Look for more government stimulus money to be added to the already pegged $787 billion stimulus, much of which has been allocated to prominent Democratic districts. Over two thirds of the money is still awaiting distribution, obviously being held back for release at the most propitious time in order to achieve maximum influence on upcoming elections.

Fear has been very effectively used through the past few years by government to gain support for the implementation of decisions that might not have easily floated over the electorate otherwise. Positive spin has worked the fear, and converted absurd policies into amplified and satisfying rays of hope.

If the main stream media continues its persistent misrepresentations of the truth, hope will disintegrate completely as new intractable realities insinuate themselves permanently into the economic and social landscape. Taxpayers deserve better from their Fourth Estate and from their politicians. If this transformation of perceptions doesn’t end soon, the result will be an irreversible transformation of America.

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• ECONOMISTS, OUR NEW PHILOSOPHER KINGS?

Our mainstream media has been in panic mode for a couple of months, and in its continuing consternation, has clamored for the President Elect to rush, first and foremost, into naming his economic team. “Hurry up, and you better be picking some guys who understand numbers and the economy. We want experts. The best money can buy.” So you turn off the news, and head off to bed confident that although a gloomy, almost mystic storm is brewing outside your window, all will be well. An Economist will figure it out. Some hours later your wake up call is the dawn sending rolling thunder that jolts your home to its foundation. You jump, wide awake, and in a cold sweat. “What the hell is an economist?” The sun is actually attempting to cast light around your drapes.

Once upon a time, "economist" was a term applied to an individual who enjoyed a certain conservative frugality to all human endeavors. Vestiges of that connotation remain with today’s definition, although these cannot be assigned to the modern economist in whose hands we appear to entrust our economic lives, those of our children and those of our grandchildren. Not that some of our more illustrious ancestors might not be addressed today as economists. Certainly Xenophon, Aristotle or Adam Smith wore the mantle well, in addition to being philosophers. Doubtless, each would probably be perplexed by the current definition, and even embarrassed by its most modern incarnation.

Our best known are too often staggering egos, rooted in analytical methods far from the disturbing notion of public discourse and sensibilities, but readily capable of pontification on the state of everything economic. Aided by the most powerful computational powers the world has even known, they interminably scrutinize the minutiae of fractions, macroeconomically dissecting our lives, creating hypotheses felicitous of one theory, or another that each might have subscribed to. The new breed of economist hopes that the consequence of his or her efforts might eventually dissolve into public policy. All struggle to be heard in one way or another, and a few get lucky.

Alan Greenspan for example, was much more than lucky. He was feared. He was clearly not as competent as he believed himself to be, but he was feared, as well as venerated. So discombobulated were four American Presidents on the state of their economies that Reagan, Bush Sr., Clinton and Bush Jr. each capitulated, leaving him insulated, permanently ensconced in office as 13th Chairman of the Federal Reserve. For 19 years Greenspan was arguably the most powerful man in the world, if you place money at the top of the human existence food chain.

Who preceded Greenspan? Paul Volcker, who will now be Obama’s eminence grise.

Aristotles, they are not, but let's cast a slightly more discerning inspection their way, and toward the state of their art. Economists are human with any of the frailties the rest of us might also endure. They are products of their educational systems, and environments limited by the very nature of economics. It is a vast endless field of study. Some concern themselves with wide global movements of goods, people and money. Others might specialize in capital ratios, dealing with banking regulations and interpretations on depository requirements, or the standards of capital and asset risk measurements, with specializations within each area. Others are preoccupied with inflation, and just to complicate matters all countries have individual methods of calculating capital within their boundaries, though they are confined to internationally accepted guidelines. Unfortunately, they either specialize, or they really don’t know anything, and become really, really dangerous.

It was anomalous that a few economists, during the bubble’s inflation, indulged quietly on the more dire economic possibilities, but their squeaks were obscured in the noise of the herd.

We assume that society’s Greenspans can not only be visionaries with insights into mathematical models, but can hover above the fray issuing profound prognostications on the state of our malaise. We assume a dream team of economists crowded around a new Commander In Chief of Change will blend their discordant mix of views into a powerful amalgam. One capable of charting a methodical path out of a labyrinth no one really understands, and no one is taking credit for.

Repeating platitudes on the perils of assumptions would be pointless. Through the kaleidoscope of our bank accounts we are witnessing the evolution of our own wreckage in slow motion.

The first clue as to why our modern day Aristotles of economics are not the oracles we sanction them to be, is that they deal with yesterday. They present the past beautifully, and with more clarity than the Hubble’s brilliant and awe inspiring images of distant galaxies as they existed billions of light years ago. As to what will occur tomorrow, or even later today, our seers are particularly inept. Specialization and compartmentalization are dangerous competences, particularly when compromised by insecure egos.

The second clue resides in the box that hides these enigmatic specialists of the statistical tables. They have perceptibly limited understanding of the nature that is human. The culminating pinnacle of their output is theory. Not practical, but obscure and probably intangible methodologies for hopefully enhancing efficiencies, or exploiting short, mid or long term trends, and biases. Nowhere in the mix that is the economist’s alchemy, can we find a scintilla of any universal principals that might inject percepts of morality into their mental and computational gyrations. Their inclinations fall short on the E.Q. meter, and human nature is not in their catalogue of, “Things I’m An Expert In.”

Now for the third clue. It is not in the nature of the economist to be an entrepreneur. Time spent in research, and analysis also do not allow for long term commercial endeavors. Unfortunately, this limit understanding of where the proverbial rubber meets the road.

The most effective presence at the round table carving a new path out of the maze America is trapped in, would be that of an entrepreneur. One who has had extensive success in the commercialization of goods or services to the broad market over a sustained period of time. One who has demonstrated vision and creativity, as well as capacities to motivate individuals other than himself to reach unexpected productivity. One who in practice and not through vicarious imaginings, has been drenched in all elements that fuel the economic engine driving an economy.

Drawing the curtains to let the sun’s warmth fill the room, you remain hopeful, but know that as the morning news will announce yet another bailout package, you will look elsewhere for telltales of contemporary Voltaires in our midst.

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• AMERICA’S OBAMA CAPITAL

The American electorate has placed a bet. It is betting: That Obama will burnish the image of America in the eyes of the world, that he will pull America out of its economic crisis, and that the President Elect will lead the nation into a new era of change. Peering through the Obama enigma, there is a very real ray of light that may bring energy to the turn-around, however temporarily. A majority of taxpayers await with hope the revelation of the “change” definition in the Obama encyclopedia, although fear continues to permeate the country, and bad news persists in dominating the news.

The world witnessed an international reaction to the U.S. election of its first African American President. Most Americans, including many who voted for McCain, could not help but be touched by the event, and most were inevitably moved by the possibility that “hope” might find traction, though much of that hope rose from weariness and disappointment rooted in a failed 43rd Presidency.

Populations in Asia, Europe, Africa and even in the Middle East, genuinely applauded the event, and demonstrated a new support for possibilities available in the American society, polity and economy. Most countries around the world envy such freedoms, and many were stirred with a refreshed affirmation of America’s glassless ceiling. Obviously many of those countries also look to America as a source of capital coming from purchase of their products and resources. A few also procure loans for America’s expenditures.

The “goodwill” generated from the Obama election presents America with a window of time during which it will be able to further extend its borrowing practice from countries holding significant dollar reserves. America remains the only safe haven for cash. The Obama Presidency will find that extending the portent of “hope” beyond the borders of the United States could provide the Treasury an additional trillion dollars in borrowed funds with which to structure a turn-around for the world’s largest economy. The care, diligence, boldness and intelligence with which Obama allocates the country’s newfound capital will dictate the length and depth of the current recession. The window provided by this goodwill may be opened only temporarily. We will watch as he attempts to deliver on his promises, but the real “hope” is that he will use this window to dramatically energize the economic engine much of the world depends on.

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• WHY OBAMA WILL WIN, BUT CAN’T DELIVER

McCain embarrassingly strains at the altar of speech giving, the teleprompter, like a schoolboy forced to stand at the front of the class to explain how he spent his weekend with the family. Cut to Obama, giving a speech, anywhere, doesn’t matter where, and the contrast in presentation is peculiar given that both are running for arguably the most important office in the world. Presentation shouldn’t matter but it does. McCain’s lack of presence makes him seem weak and appear out of his element. That doesn’t mean he is weak, but he is not helping his image in the public’s consciousness.

Even in his attempts to deliver emphatic points, McCain can’t muster conviction. Middle America is feeling uncomfortable on too many fronts and that discomfiture expects some appearance of conviction in a candidate. Only conviction will lead the American taxpayer out of the economic trench currently slowing progress. Only conviction will chart a new course away from the path that for the past eight years has been led by what has become the most despised resident of the White House in the history of that seat of power.

America needs its sense of confidence back. New blood, new thinking, and new ideas will forge a road back to that feeling of confidence. Obama has been able to present such a dream. Real or not, he is the new hip kid on the block who becomes vested with the hope of a nation urgently looking for change. Deep change. Obama becomes anointed as the savior who will rebuild the nation’s current economic mess and international stature.

America is a leader, and America makes its leaders. It dreams them up. They are a product of America’s illusions and aspirations as it goes about its business of working, raising families, and enjoying or stressing about life. America injects the White House with its expectations. America also forgets that the leaders it chooses are human, often with more frailties than the average American, and the expectations are often misplaced. The last two Presidents are examples to remember. Clinton had the potential to become one of the country’s greatest, yet he lacked a profound sense of history and his frailties rendered his Presidency impotent. Bush contrasted Clinton’s intelligence and appeared to be “everyman,” presenting a clean contrast that would not soil the stature of the Oval Office. Bush rapidly devastated both the image and the economy of the country with a lack of understanding on too many elements to be delineated here. Nevertheless, on he marched with confidence that his beliefs, fervor, and convictions were absolute, and that debt financing was his earned capital to be spent. This generation’s great-great grandchildren will be paying for that earned capital.

Obama is the only candidate in whom America can inject an expectation of a refurbished sense of glory. He is a blank canvas that America needs to inject with its anxious anticipation of a positive tomorrow. The actualization of Obama fulfilling expectations, his own or America’s, is an unlikely eventuality. He has set his own bar impossibly low, since he has refrained from making firm and definitive commitments, and has a record of abstaining from making difficult decisions in his short life as a sitting politician. Obama’s backpedaling on Iraq, for example, and announcing that he doesn’t plan on rushing out of the war, further blurs the lines that differentiate him from the competition. We understand. He's running for office and needs to stay neutral and polished, ... however, where's the passion for something specific? Where are the principles?

Bush has pushed America into a corner from whence it expects to be led toward lighter days. The new and overwhelming expectations are foisted on another human being with all the limitations and baggage we would rather not notice. As always, the average middle income tax payer will continue to do the heavy lifting. And also as always, in that expectation, America will not be disappointed.

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