Energy Victory, Winning the War on Terror by Breaking Free of Oil, Part II

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Part I of the book by Robert Zubin was a summary of the current situation and the consequences of our dependence on foreign oil. This part discusses some of the wrong turns we’ve taken in our energy policies and suggestions given by the author on how to overcome the problem. I found the author’s approaches to solving the problem to be intriguing, and intend to start there. It is my opinion that Chapter nine, “The Brazilian Experience,” is the best part of the book, although there is a wealth of information throughout.

Brazil is described as a microcosm of the world with a diverse, multiracial society with wealthy and poor. General Ernesto Geisel was inaugurated as President in 1974, and immediately began to attack the economic devastation caused from the cost of importing 80 percent of the oil needed by the country. He issued an edict that all gasoline had to contain 10% ethanol produced from sugar cane at a time when sugar prices were dropping. The government then paid for a pump dedicated to ethanol installed at every existing station, and domestic manufacturers began producing cars that could run on ethanol. OPEC cut oil prices, Brazil responded by subsidizing ethanol, and the International Monetary Fund pressured them into dropping their price supports. OPEC raised oil prices in 1999, and Volkswagen’s Brazilian division began producing flex-fuel vehicles. Brazilians could drive using gasoline, ethanol, or a mixture depending on what OPEC decided the price of oil should be. Brazil became an energy exporter by making ethanol from sugar cane and burning the woody “cane” to generate electricity. Continue reading →

Smart Aleck

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The book “Language of the Civil War” by John D. Wright ($85 on Amazon.com!) published in 2001 says that the term originated with Confederate Vice President Alexander Stephens. His extreme intelligence overcame his small size (90 pounds) and unhealthy appearance. The term “Smart Aleck” is used to describe someone using sarcastic, mocking humor in an argument, and Stephens was said to have earned that nickname. Several other sources, including Wikipedia,  say the term “Smart Alec” was coined to describe a con man named Alec Hoag who ran a pickpocket operation in the 1840s with the help of two policemen. He is said to have earned the nickname when he wound up in prison by trying to cheat the two policemen out of their cut. I think the fact that the expression doesn’t appear in print until 1865 adds credibility to the first explanation even though the second explanation has more references.

What are Young Americans Getting from College?

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Data from Doctor Housing show that student loan debt has surpassed credit card debt. Student debt has reached $829 billion because of rising tuition costs, increasing numbers of people going to college, and lack of savings by families for college. College students are graduating with an average debt of $30,500, but it isn’t uncommon for that amount to be $100,000 or more. Many students graduate from paper mills or even highly rated colleges and universities with degrees that don’t provide a path to employment. Some people deal with the issue of not being able to afford payments by continuing to attend classes, since the payments on the debt aren’t due while they are in school.

What are the colleges providing to these young people besides a degree and massive debt? A new study found that 45 percent of the students learned very little in the first two years of college and about a third of them have not improved their performance in academic skills by the time they graduate. The 3000 students participating in the study spent 16 percent of their time in class or studying and 75 percent socializing and sleeping. Many professors are focusing on research that will build their academic reputations, and are less interested in teaching.

People should begin to evaluate college options the way they would study a business opportunity. Will there be jobs in the chosen field of study that will pay for the student loan debt and perhaps even provide a decent living beyond that? There are plenty of data about which degrees provide the best opportunity for a decent job. It shouldn’t be a surprise that completing more difficult courses of study, such as engineering, gives a better chance to land a job that pays decently. I’m guessing that the easier courses of study result in fewer job opportunities and jobs that don’t pay much. That probably won’t deter the flood of students into easy courses that won’t detract from having fun in college.

What about the role of the colleges? I’ve read that it is becoming easier to get good grades, which keeps more students in the classes. The reduction in the quality of education has been accompanied by increasing costs. One report stated that economists predict the cost of attending state colleges will soar to $120,000 by 2015. Tuition costs have increased just under 467% since 1986 compared to the overall inflation rate of 107%. Of course the government contributed to the problem by making it easy to get government-backed student loans. Colleges raised tuition to take full advantage of the flood of new students with their easily-acquired loan money. Some are adding luxurious amenities in the form of fancy dorms, gyms, live music in the cafeteria, and Starbucks gift cards to lure students.

There are undoubtedly many factors to consider for a family making a decision about which college and which course of studies. A recent report observes”…the average lifetime incomes of comparably talented graduates of public and private institutions are about the same for most students.” I remain convinced that the ultimate success of a student graduating and entering the business world depends on individual skill, discipline, and a desire to perform well. There is a constant drumbeat of demand for more money for education at all levels, but increasing the amounts spent hasn’t improved education.

Worth Your Salt

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Yahoo’s Associated Content confirms what I had previously heard about the expression; it began when Roman soldiers were paid with salt. The word “soldier” literally meant “one who is paid in salt.” The pay was either made directly in salt or in “salarium,” which was an allowance for purchasing salt and is the origin of the word “salary.” A person is said to be earning their salary if they are described as being worth their salt. Biblical references for salt usually had positive meanings, such as when Jesus called the disciples “the salt of the earth.”

Cheapskate

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There is no dispute that this expression is used to describe a cheap or misery person. However, we have choices for the origin. World Wide Words says the word “skate” was used to express contempt, and it evolved into “cheapskate” in the late nineteenth century. The term was originally used to describe a worn-out horse, a mean or contemptible person, or a second-rate sportsman. Wiki answers has two other possible explanations for the origin, and both are more colorful. One is that skates that strapped onto your shoes were so cheap that they often fell off, and were literally cheap skates. The other is that in the early 1900’s there was a panhandler named Kate Robinson who inherited a fortune, but continued to beg. Thrifty people were told “you are as cheap as Kate,” which when said quickly becomes “cheapskate.” My vote is that the last explanation is the most interesting.

Energy Victory, Winning the War on Terror by Breaking Free of Oil, Part I

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This book by Robert Zubrin details our current dependence on foreign oil, the consequences of that dependence, and what we could do about it. There is too much information to cover in a single review, so this part will be about the current situation and the consequences. The first sentence of the Preface warns, “America is losing the war on terror.” The author lays much of the blame for that on the wealth being looted to buy oil from the Mideast as a result of our failure to have a competent energy policy, and that money is financing the war against us. Petro dollars have been and are funding Islamic schools that graduate the fanatics who will plan and execute future terrorist acts. Iran is developing nuclear weapons with the proceeds from oil.

The author is no fan of Saudi Arabia, and he provides a history of that country to back up his position. Muhammad ibn Saud and Muhammed ibn Abd al Whahhab formed a partnership in the mid-eighteenth century to foster their belief that the Islamic world had a duty to wage jihad. Their religion deemed that humanity was divided into Muslims, infidels, and polytheists. Once the Muslims conquered an area, the infidels (including Christians and Jews) would be allowed to live as inferiors. The polytheists (Hindus, Buddhists, Taoists, and “insufficiently orthodox Muslims”) were to be killed without delay. Saud married Wahhab’s daughter, and the Saudi royal family was formed. They began their jihads, and inhabitants of Shiite areas were massacred. In 1932 Ibn Saud proclaimed the conquered areas to be Saudi Arabia and all inhabitants to be personal property of the royal family. He formed alliances with American businessmen to avoid the imperialistic British. Roosevelt signed a treaty with him in World War II to ensure America’s fuel supplies. Continue reading →