Obama eyes Afghan costs: $1 million per soldier

While President Obama's decision about sending more troops to Afghanistan is primarily a military one, it also has substantial budget implications that are adding pressure to limit the commitment, senior administration officials say.

The latest internal government estimates place the cost of adding 40,000 American troops and sharply expanding the Afghan security forces, as favoured by Gen. Stanley A. McChrystal, the top American and allied commander in Afghanistan, at $40 billion to $54 billion a year, the officials said.

Even if fewer troops are sent, or their mission is modified, the rough formula used by the White House, of about $1 million per soldier per year, appears almost constant.

So even if President Obama opts for a lower troop commitment, Afghanistan's new costs could wash out the projected $26 billion expected to be saved in 2010 from withdrawing troops from Iraq. And the overall military budget could rise to as much as $734 billion, or 10 percent more than the peak of $667 billion under the Bush administration.

Such an escalation in military spending would be a politically volatile issue for Mr. Obama at a time when the government budget deficit is soaring, the economy is weak and he is trying to pass a costly health care plan.

( New York Times 14^th November)

GLASGOW BRANCH ACTIVITY

THIS IS DEMOCRACY?

American politicians are fond of lecturing other world politicians about how the USA is a wonderful model of democracy in action. A recent study on the wealth of U.S. Congress would seem to suggest that they have a wonderful model of "government of the people by the people- " by the rich people that is" Apparently, times aren't so tough all over. According to a new study compiled by the Centre for Responsive Politics, 237 members of the U.S. Congress, or 44 percent, are millionaires. "What's easy to see is that the economic reality of our elected officials is not reflective of the general population," said Dave Levinthal, who helped compile the study's findings. Nationwide, only 1 percent of U.S. citizens qualify as millionaires."
(Sphere News, 6 November) RD

HOME OF THE BRAVE?

"Gen. Eric Shinseki was famously shunned by the Bush administration for daring to state the true costs of occupying Iraq. As President Obama's secretary of veterans affairs, he is, thankfully, no less candid about the grinding problems veterans face at home. They lead the nation in depression, suicide, substance abuse and homelessness, according to data that Mr. Shineski is delivering in salvos in his current role. About one-third of all adult homeless men are veterans, and an average night finds an estimated 131,000 of them from five decades bedding down on streets and in charity sanctuaries. About 3 in 100 of them are back from Iraq and Afghanistan. The problem of homelessness for Vietnam veterans is, shamefully, well known. But the men and women in this growing cohort took just 18 months to find rock bottom, compared with the five years-plus of the previous generation's veterans." (New York Times, 11 November) RD

CAPITALISM IS GANGSTERISM

Politicians and clergymen and even well paid TV personalties will claim that the middle east conflict has something to do with morality and justice and that it has nothing to do with crass consideration such as "making a couple of bucks" as Al Capone once famously said. "The British oil giant BP will today take control of Iraq's biggest oilfield in the first important energy deal since the 2003 invasion. The move has created uproar among local politicians invoking resentful memories of their nation's colonial past. The agreement to develop the Rumaila field, near the southern city of Basra, will potentially put Iraq on the path to rivalling the riches of Saudi Arabia within a decade — if the Government can fend off corrupt officials, continuing terrorist attacks on pipelines and political uncertainty." (Times, 3 November)

Hey, Iraq workers may continue to live in poverty, so what, we can make a couple of bucks. That is how capitalism works, isn't it Al Capone? RD

THE NEW IMPERIALISTS

It used to be popular for supporters of the so-called Communist Party to decry Imperialism. They would point out how Britain had exploited Africa and India during their colonial conquests. Later on they would concentrate on the role of the USA in Central and South America. Changed days now with China investing heavily in all sorts of corrupt regimes throughout Asia and Africa. "Barely a fortnight after soldiers loyal to Guinea's military junta butchered at least 150 demonstators calling for civilian rule, a deal for oil and mineral rights worth about $7 billion has been struck between China and Guinea. ...It seems that China's commercial march across Africa will continue unabated, however vile the human-rights record of the government it seeks to befriend." (Economist, 17 October) RD

MIRACLES, ANCIENT AND MODERN

One of the condition of attaining sainthood according to the Roman Catholic Church is two miracles. One gets you beatified and the other gets you canonised. It is understood that the Pope may beatify Cardinal Newman during his visit to the UK next year, but the claim of an American clergyman may bring on the full sainthood. According to Deacon Jack Sullivan, from the archdiocese of Boston, Massachusetts he was afflicted with a serious spinal condition causing intolerable pain with utterly no prospect of relief. He was told he was on the brink of complete paralysis. "I was completely helpless and the situation seemed hopeless. But it was this state of mind that led me to prayer. ..."Please Cardinal Newman, help me to walk, so that I can return to my classes and be ordained". (Times, 10 November)

Next thing the clergyman was up and walking, something he hadn't been able to do for months. Amazing as this may seem - and certainly a boon to a hard pressed NHS - it pales into insignificance according to the same newspaper report when compared to an earlier miracle. 

"In the Miracle of Calanda in the 17th century, the amputated leg of a young Spaniard grew back."

They just don't have miracles like that nowadays, do they? RD

CRISIS, WHAT CRISIS?

Warren Buffett is considered
one of the world's greatest investors

Billionaire Warren Buffett's investment firm has reported that profits almost tripled in the third quarter. Berkshire Hathaway said it's net profit was $3.2bn ( £1.9 bn ) in the three months to September, compared with the $1.1bn in the same period last year. ( BBC News 8 Sept 09) RD

A personal experience in capitalism

We are all well aware that the battleground of capitalism is the price of their products
vis-a-vis their competitors. This is why shoplifting does not raise the prices (nor wage increases), as companies are not at liberty to set the price of their goods just anywhere. The price must revolve around value, and supply and demand. I decided I needed another shed; getting late in the season; bought a kit for $999; didn't include the floor or shingles (roofing); the frame was so skimpy, I was afraid it might blow down if the cows in the next field farted (although we all know it's going straight up and is the main cause of global warming); basically, the sheets of siding would be holding up the frame instead of the other way round; bought more timber to shore it up and frame it properly: end result – a fairly decent shed that cost about $1500, or just a bit more than the shed I built two years ago framed with 2x4s (not 2x3s) and sided with 1x12 pine boards. Home Depot still gets to advertise the shed for under $1000, which is the whole point of the exercise.
Hope that sheds some light on the workings of capitalism. John Ayers

Food for thought 4

On the poverty front, capitalism may be 'lifting millions out of poverty' in India, but an article on McDonald's in that country (Toronto Star 18/Oct/09) tells us that the mashed potato sandwich is the highest grossing product and sells for 50cents. For the 456 million (that would be the third largest nation on earth) that live on $1.25 a day (World Bank) even that might be a bit of a stretch- In Toronto, food banks fell well short of their Thanks giving goals and the recession is blamed. Maybe McDonalds should be selling the mashed potato sandwich here.

- To celebrate the 20th. Anniversary of the fall of the Berlin Wall, the Toronto Star published an article on communism and Marx. Of course, as expected, it was the fall of communism (communism is as dead as the waxen figure in Lenin's tomb). Information was supplied mainly by 'respected communism scholar' Archie Brown. The level of misinformation and misrepresentation reached new lows. Apparently, the 70% plunge in the Moscow stock market last fall left the 'communists' speechless and afraid to criticize Putin. The ideals of 'communism' could never come to pass in an imperfect world, but Marx didn't die without a legacy – his ideals of social justice have penetrated the wealthiest countries, including the US. In the 21st. century, The West has adopted Marx's core belief that social progress is driven by material well-being, and social democracy has flourished. It was in the US, too, that Marx's philosophy of materialism soared to its outer limits, as a pioneering philosophy of 'toil and sweat' turned to rampant consumerism that broke all class barriers. Oh boy!
Needless to say, I fired off a letter which didn't get published, but it points clearly to the misinformation that is gleefully published by the capitalist press, even a 'liberal' paper such as The Star, Canada's largest. John Ayers

Food for thought 3

Capitalists always take the prize for audacity. As Ontario's telecommunications manufacturing firm, Nortel, divvies up its assets, CEO Mike Zafirovski is requesting $12.3 million, while employees on long term disability are ignored and left to expect to exist on $10 000 per annum.

Oil tycoon, T. Boone Pickens told US Congress that US energy companies are entitled to some of Iraq's crude, because of the large numbers of American troops that lost their lives fighting in the country and the large amount of taxpayers' money spent there.

At a conference in London, Goldman Sachs international advisor, Brian Griffiths, praised inequality. As his company was putting aside $16.7 billion for exec's compensation and benefits for the first nine months of the year (up 46% from a year earlier), Griffiths told us not to worry, "We have to tolerate inequality as a way to achieve greater prosperity and opportunity for all." John Ayers

Food for thought 2

Food For Thought
"The food industry is making us sick", said CNN's Rudy Ruiz (Toronto Star 11/Oct/09). Costs of Obesity are estimated at $147 billion, diabetes $114 billion in the US. John Hopkins US researchers estimate in another 6 years, three quarters of Americans will be overweight or obese and already
26% of children entering kindergarten are overweight. Similar statistics could apply to several "developed countries, of course. How does this come about?

When US farmers were coping with chronic corn gluts in the 1960s and 70s, Earl Butz, agricultural secretary in the Nixon administration, unveiled a program of subsidies for farmers, school lunches, and alterations in food processing allowing corn to become a mainstay of the American diet. Canada followed suit. This ushered in the era of cheap, bad, fast food. Now the call to put this right is facing a tough challenge from farm-state politicians and fast food lobbyists.

Again, it's not what's right that counts, but what makes the most money for the owning class. John Ayers

TOUGH AT THE TOP

" According to the survey of richest men and women in UK property, carried out by Estates Gazette, the total value of the assets held by the country's top 100 wealthiest property investors has crashed to £ 34.32billion from £77.37billion over the past two years. The data shows that property's richest individuals fared slightly worse than the market overall. Between October 2007 and October 2009 the FTSE 350 real estate index showed a fall of 47 per cent. The seventh edition of the Estates Gazette rich list shows that between 2007 and 2009 the fortunes of the tycoons dropped by 56 per cent. One of the worst hit was Hemmings. According to the survey his personal wealth has fallen from just over £1billion last year to £300million this year - a 69 per cent drop. Britain's richest landlord, the Duke of Westminster, was also hit hard. His Grosvenor Group, which owns vast swathes of Mayfair and Belgravia, posted his worst results for 16 years in 2008. The Duke has slumped in value from £7billion in 2008 to £6.5billion after a 'challenging time' only cushioned by its 'well-diversified portfolio'." (Daily Mail, 24 October) RD

Food for thought

- How capitalism works – the environment – Obama and his people hope to
get the year 2005 as the new baseline for the reduction of greenhouse
gases. They're touting 20% reduction by 2020, i.e. equivalent to 5% below
1990 levels or what was proposed at Kyoto but by 2010. Two steps back, one
forward. Great game!
- Let's get more people in prison. New proposed "get tough on criminals"
legislation by the Harper government is projected to increase
incarceration by 10%, now about 149 per 100 000. The worst crime for most
of those caught in the drug net is that they are racial minorities,
especially aboriginal, or that they have fallen through the cracks in our
education system, or suffer from a host psychiatric and psychological
syndromes. Conversely, spending on anti-drug programs and mental health
lag way behind prison spending.(Toronto Star, 17/oct/09).
John Ayers

BUDGET HOLIDAY IT AINT

An artist 's conception shows Galactic Suite's hotel pod in orbit.

Barcelona, Spain
A company behind plans to open the first hotel in space says it is on target to accept its first paying guests in 2012 despite critics questioning the investment and time frame for the multi-billion dollar project. The Barcelona-based architects of The Galactic Suite Space Resort say it will cost $4.4 million for a three-night stay at the hotel, with this price including an eight-week training course on a tropical island. During their stay, guests would see the sun rise 15 times a day and travel around the world every 80 minutes. They would wear Velcro suits so they can crawl around their pod rooms by sticking themselves to the walls like Spiderman.
(Reuter, 1 November) RD

ALL RIGHT FOR SOME (2)

"More MPs are set to stand down at next year's general election in order to take advantage of "golden handshakes" of up to £65,000 that will not apply at future elections. Senior figures in all political parties warned that the new expenses regime announced on Wednesday will provide a "perverse incentive" for MPs to "take the money and run", as one put it. Whips believe another 50 could decide to quit, on top of the 114 who have already announced that they will leave Parliament. The Committee on Standards in Public Life, chaired by Sir Christopher Kelly, said the pay-offs of up to a year's salary should be cut to two months' wages if MPs retire rather than are made "redundant" by losing their seats at an election. That would reduce the "golden goodbye" of a long-serving MP from £64,766 to £10,794, on current salary levels." (Independent, 5 November) RD

DRUG PUSHERS PAY OFF

"Could you imagine how much money you would have to have to be able to spend $609,000 a day? What would you expect to receive for that amount of money? Who has that kind of money to spend, especially during a "recession"? According to the latest issue of Time magazine, in the first 6 months of this year, the pharmaceutical industry spent about $609,000 a day to influence lawmakers. Can you imagine the financial payoff they must expect to get to be able to spend that kind of money? This does not include all the money they spend on advertising as well. The drug industry has 1,228 registered lobbyists. This equals 2.3 lobbyists for every member of congress. Obviously, the pharmaceutical industry does not want to be left out of the current healthcare reform debate and are willing to pay handsomely to make sure they aren't. The return on that investment has already been considerable. As drug lobbyist Jim Greenwood says, "We've done very well." (Dr Brian's Blog, 26 October) RD

A PROPERTY OWNING DEMOCRACY?

"New figures from Credit Action show that a property is repossessed every 11 and half minutes as the recession begins to bite. The debt organisation also said that 9,300 people are visiting Citizens Advice every day as their struggle to cope with their personal debts. Total UK personal debt at the end of September 2009 stood at £1,459bn. The twelvemonth growth rate remained at 0.8pc said Credit Action." (Daily Telegraph, 3 November) RD

A DOSE OF PROFIT

"GlaxoSmithKline is getting rich from swine flu vaccine sales. GSK, which has already sold 440m doses of its vaccine Pandemrix worldwide, said sales would hit £1bn this quarter. GSK confirmed in July that it would cost developed countries about 7 Euros (£6.30) for each dose, but it has declined to reveal production costs amid speculation it costs as little as £1 a dose to make." (Observer, 1 November) RD

ALL RIGHT FOR SOME

"As workers up and down the UK sat at home last week worrying about whether they would still have a job in a month's time, a raucous crowd of hedge fund managers and investment bankers at the Whisky Mist nightclub in Mayfair pulled yet more vodka out of their huge ice bucket and called for the waiter to bring another bottle of Dom Perignon, served with a sparkler. ...In London nightspots last week, the City's finest were spending with a swagger. ...As City workers once again prepare for corporate excess, and investment banks such as Goldman Sachs get ready to pay record bonuses, new bars, restaurants and nightclubs are springing up around the office tower blocks in the City and Canary Wharf to feed demand." (Observer, 1 November) RD