Sunday, April 26, 2009

Legality of War in Iraq and Suspect Interrogation Techniques

Post 911 and the Iraq war, the United States now faces the dilema of whether to conduct an investigation into the legality of the war in Iraq, the interrogation of suspected terrorists at Guantanamo Bay and Abu Grab, and the rendition of terrorist suspects to third countries for interrogation. If found to be illegal, those in the previous adiministration responsible for the illegal acts may be prosecuted.

The victims of the war in Iraq, terrorist suspects, and individuals prosecuting the war and interrogation techniques all have unalienable rights, subject to judicial review, according to the following clause from the Declaration of Independence:

"We hold these Truths to be self-evident, that all Men are created equal, that they are endowed, by their CREATOR, with certain unalienable Rights, that among these are Life, Liberty, and the Pursuit of Happiness".

This clause is the basic tenet of the United States Constitution.

Because of the volatile and political nature of the issue, if it is conducted, the risk in the short term is that the investigation, and possible prosecution will tear the country apart.

If it is not conducted, the risk in the long term is that the basic tenet of the United States Constitution is violated.

This is a real dilema. It is a test of the United States constitution and a test of the greatness of the country.

The world is watching with interest.

Saturday, April 18, 2009

The Disarming of Cuba

Great minds fire ideas and create. Guns fire bullets and destroy. With one idea, at the Summit of the Americas, Barack Obama has disarmed Cuba, and with a handshake, Hugo Chavez seems ready to do business. The power of an idea has achieved in one day what the bay of pigs invasion, Russian missiles, and embargoes could not do in 40 years. This power changed Russia and China, can defeat Al Qaeda, can solve the Israeli Palestinian conflict, and can bring Iran and North Korea into the world community. Bullets and missiles can't.

Tuesday, April 14, 2009

Pirates and United States Foreign Policy

Well done to the new United States Administration for taking such quick and decisive action against the pirates of the Maersk vessel near Somalia, and saving the life of a generous captain. A foreign policy that blends diplomatic soft power and the use of force when necessary works when an administration is on top of the issue. Military and other force where lives are at stake should always be a last resort, and in this case it appears to have been the best option. If only such quick and decisive action had been taken against Al Qaeda following 911, rather than being directed at Iraq, where diplomatic soft power blended with the threat of force may have been more effective.

Wednesday, April 08, 2009

Barack Obama

What an impressive leader Barack Obama appears to be. The intelligence and bridge building capability he exhibited during his tour of Europe is inspiring, and suggests that the world will have a period of dynamic change for the better following the current economic and financial crisis. Let's hope he can encourage the leaders of other countries, and business and religious communities around the world to value integrity, honesty and a genuine interest in improving the human condition. These qualities have been rather rare over the past decade, and have no doubt had a role in causing the current economic and financial crisis, and the general instability around the world. New leaders such as Barack Obama in the United States, and Kevin Rudd in Australia seem to have a refreshingly different perspective.
Canadian Broadcasting Corporation


The Integrity of Banks in Australia

The decision by the major banks in Australia not to pass on to consumers and mortgage holders the 25 basis point reduction in interest rates by the Reserve Bank of Australia is typical of a general lack of integrity and social responsibility of many business leaders. There is no reason the banks and other businesses cannot participate in minimizing the effects of the current financial crisis, and turning around the economy as quickly as possible. If banks cannot do this voluntarily, there may be merit in government regulating the banks to do so, penalizing anti-competitive behavior, or using some other form of moral suasion to encourage a more responsible attitude. A government owned and operated bank that is prepared to compete with private banks may be the solution.

Monday, April 06, 2009

Private sector generated economic stimulus

In Australia, companies such as AMP, Qantas, Santos and Stockland are implementing wage freezes as a result of the current financial crisis and economic downturn. Unfortunately the cumulative effect of wage freezes by companies could deepen the recession by countering government stimulus policies and ultimately force companies to lay off staff, the exact opposite of the intended effect. It's a self defeating policy at the macro level for companies to follow.

While it may make sense for Visy, Macquarrie Group, Virgin Blue and Holden to cut back excessive top level executive remuneration, across the board pay freezes for salaried employees with modest remuneration levels in a relatively lean and profitable company makes less sense.

It may make more sense for companies that can afford it to maintain wage growth where possible, and publicly champion the we are all in this together message by encouraging other companies to maintain wages in order to help turn the economy around as quickly as possible.

There are companies actively supporting government policy to turn the economy around. One such company is Bollinger Insurance, as reported this weekend on Fox.

The policy of the major banks in Australia announced on the weekend to defer mortgage payments for the unemployed for a year is in the same spirit of support for government policy to stimulate the economy and get it moving again.