I created a new article, Asia, Australia, South Pacific - 2012,   http://thepurplemuse.com/id54.html, that is based on my blogs during my fall 2012 cruise.  I also recommend that everyone learn more about China's history.  I read John Keay's book, China - A History, during the cruise.  If you don't understand China's history, you won't be able to understand China today.

TPM

President Obama has embarked on his second term.  He continues to be determined to improve the financial lot of the "middle class" through a number of government wealth redistribution/entitlement programs.  He continues to show little interest in solving the US government's deficit/debt/unfunded liabilities issues.  His willingness to ignore the government's financial math is disconcerting. 

Unfortunately, President Obama and many other politicians continue to refuse to directly discussthe issues of greatest importance to the US middle class.  There is a reason why the US middle class has lost ground economically during the past 20 years.  It is called "global competition".  The relative market value of middle class labor is much lower today than it was 20 years ago because of the vast expansion of the global work force in industries in which the middle class participates.  The US has lost market share and high value jobs primarily due to the expansion of global market share by China, India and other Asian nations.  Since the number of potential workers in Asia is vast, it is highly unlikely that the US middle class relative standard of living will ever return to its prior levels.  The world markets won't accommodate unsustainable cost structures built on noncompetitive wage levels.  This is a simple truth that is obvious but most politicians won't address.

The bottom line is that everyone will have to work extremely hard to gain as much education, training and skills as possible so they can compete in the world employment market.  If people fail to take advantage of their educational opportunities they will never be able to compete.  Also, people must be prepared to move to the locations where employment opportunities exist.  They cannot assume that jobs will come to their location.

There is a lot of personal and family pain associated with making major life changes.  Throughout history there have been many periods where fundamental economic changes required large numbers of people to deal with the personal pain of major life decisions.  Some of the greatest examples in history were the massive emigrations from European countries to the United States during the 1800s through the Post World War II era.

In the end there is no way to avoid the pain of fundamental global economic changes.  The world economy has changed and will continue to change. The level of competition between nations, states, localities, companies and individuals will only get more intense. 

Everyone must be prepared to compete in the global markets every day if they want to sustain a reasonable standard of living.  Redistributing wealth and creating long term debt through excessive entitlement programs won't solve the middle classes problems.  People will only improve their standard of living by applying their talents and skills in a manner that creates competitive advantage in the global economy.

TPM

Barrack Obama's swearing-in ceremony for his second term as President of the United States of America has taken place.  I have managed to watch absolutely nothing of the inauguration activities on TV so far.  During my adult life, Nixon, Carter, Reagan, George H.W. Bush, Clinton, George W. Bush and Obama won at least one Presidential election and have been inaugurated.  My wife and I actually attended an inaugural ball when Clinton was elected for his second term. 

In the past, even if I didn't vote for the winner, I felt some level of constructive anticipation as a new Presidential term was about to begin.  This time the only anticipation I feel is for the beginning of the countdown of the number of days Obama will remain in office.  Obama has proved he is a brilliant politician.  There is no doubt that he and his political team have run two supurb presidential campaigns.  He has also proved he is a failure as our chief executive and the leader of our nation.  I have no respect for leaders that abdicate their executive responsibilities to achieve political objectives.  Fiscal and financial management is the number one responsibility of every chief executive of every organization including our Federal Government.  The failure of President Obama to work with Congress to establish a rational budget for the past three years and to take action to materially impact the build-up of US long term debt and unfunded liabilities will go down in history as one of the great executive leadership failures of all time.

On Monday, the inauguration parade will take place.  During the extended weekend there will be many official and unofficial inaugural balls.  Democrats will be celebrating their ownership of the White House and the continuation of the economic spoils that accompany political control of the executive branch of the US government. 

The Republicans have been quietly planning their approach to attempt to put some limits on Obama's growth of the national debt and continuing expansion of entitlement spending.  As President Obama's term begins our nation prepares for the internal government battle over its economic future.  Sequester, continuing resolutions and debt limits are the words of the day and the months to come.  We will see what happens.

So President Obama, you get a second term.  I don't expect you to change any of your fundamental beliefs.  How much damage will you do to our nation's long term future through your action and inaction?  We are counting down the days until you are no longer President of the United States!

TPM

After the NFL's AFC playoff game tonight I watched the first segment of 60 Minutes on CBS regarding the incredible growth of robotics in manufacturing industries.  The message was very straightforward.  Some robots can be deployed that deliver an equivalent labor rate below $4 per hour for the life of the robot.  The capabilities of robots are so advanced that manufacturing jobs are returning to the US but the number of new jobs staffed by human beings needed to complement the robots is very low.  Essentially robots are putting a ceiling on the value of semiskilled and unskilled labor in a manufacturing environment.  This ceiling applies to many different manufacturing processes everywhere in the world.  This segment clearly illustrates that there is no high growth future for basic manufacturing jobs.  The jobs associated with the robots are for skilled operators, maintenance technicians and people needed to manufacture the robots, very high tech jobs.  I suggest you find the segment on CBS's 60 Minutes web site.

I found it very interesting that 60 Minutes did not provide any commentary on the fact that their segment illustrates that the US political establishment is fundamentally wrong in their approach to grow the US economy.  The US government is headed down the wrong track, this is why our current GDP growth rate is so low.  All US citizens that desire to be in the work force must learn skills appropriate for the future.  The past is gone and will not return.  This is very hard for many people to deal with.  Unfortunately, it is the truth.  Can our politicians stop telling our citizens false hoods and get real about what is coming?

The critically important aspect of the new robot technology is "creative destruction".  The high tech teams building robots are fundamentally changing the entire world's manufacturing processes, while the politicians sleep.  I recommend you read my most recent article about the book, Why Nations Fail, http://www.thepurplemuse.com/id52.html.  Creative destruction is one of the most critical aspects of economic progress.  There is no way to hold creative destruction back in a free society.

I encourage every young person trying to find a way forward in life to look at the robotics industry.  The robotics role in creative destruction of manufacturing has just begun.

TPM

Check out my new article on the Vietnam War, http://www.thepurplemuse.com/id53.html.  During my visit to the Vietnam War museum in Ho Chi Minh City during my recent Asia cruise, I had the opportunity to see the Vietnam side of the history of the war.  I have included a few photos of captured US military equipment that is displayed on the plaza outside the museum. 

The fundamental question remains unanswered.  What was the US government thinking during the 30 years the US was actively involved in Vietnam?  I don't have a complete answer.  I don't think anyone will ever get one.

TPM