Intro

It's time for a reality check ...

Maybe we’ve reached the point of diminishing astonishment.

But I suspect that much of what we’re hammered with every day really doesn’t make much of an impact on most of us anymore. We’ve heard the same stories too often. We’ve been exposed to the same issues for so long without any meaningful resolution. We recognize that reality is rapidly becoming malleable, primarily in the hands of whoever has the biggest microphone. How else can we explain a society where myth asserts itself as reality, based entirely how many hits it gets online?

We know that many of the “issues” as defined are pure crapola, hyped by politicians on both sides pandering to “the will of the people,” which is still more crapola. Inevitably, it’s not the will of all the people they reflect, but the will of relatively small groups of people with disproportionate political influence.

Nobody wants to face up to the realities of the issues. Nobody wants to say what’s right or wrong – even when it’s obvious and there are numbers to back it up. Most of us are afraid to bring up the realities for fear of being accused of being insensitive or downright mean.

So we say nothing. Until now.

It’s time for a reality check on the fundamentals – much of which is common knowledge to many of us, already. But it might be comforting to know you are not alone …

Thursday, January 29, 2015

Cuba ...

Cuba – that poverty-stricken island where 1950’s cars still rule the road – says it’s “willing” to normalize relations with the U.S. How nice that they are "willing" at last.   

But it has some conditions.

It wants our trade embargo lifted. It wants us to remove Cuba from our list of state sponsors of terrorism. It wants hundreds of millions of dollars for economic damage it’s suffered over the years from our embargo. It wants us to turn over our naval base at Guantanamo Bay to them.   

That’s for starters. 

I am at once reminded of the immortal words of Dick Cheney to Patrick Leahy. 

As laughable as the Cuban demands are, the sad part is that they could get everything they ask for from the Obama Administration. 

I’m sure Obama is meeting with his people and giving these demands serious consideration. 

I don’t know what the attraction to Cuba is. Apparently there’s something there Obama and the Democrats want, and badly. Maybe it’s the appeal of sun-kissed beaches and mojitos served by attractive young men and women speaking only Spanish. Or access to Cuban cigars.

If that’s all it is, just go to Miami. 

No, there’s something else at stake.  Obama is desperate for some kind of diplomatic success.  He also wants to do something to help nail down the Hispanic vote for Democrats, especially in Florida. Plus, he wants to get rid of Gitmo to fulfill at least one of his campaign promises before his term is up.   

It’s all about his “legacy.”  In other words, it’s all about him.  Again.

Doing this lopsided deal with Cuba – which is flat on its ass economically and has nothing of merit to offer – doesn’t make any sense otherwise.  

When the Soviet Union fell, it was a huge hit to Cuba's economy. Suddenly, the artificial markets in Soviet bloc countries and thumb-on-the-scale market dynamics ceased to exist for Cuba, which isn’t resource rich or had that much of value to export anyway. Then Russia started withdrawing troops and closing installations in Cuba, which took away another part of the Cuban economy.

Now Cuba’s economy is reeling further from the drop in oil prices.  One of its few significant sources of hard currency came from reselling nearly free Venezuelan oil from Chavez on the open market. Now that prices are way down, so is the income. That leaves Cuba in even worse straits, with few options for getting hard currency aside from limited tourism from countries other than us, and remittances from Cubans living abroad.    

There are a lot of Cubans living abroad, and many in the U.S. If you live in South Florida, you may have noticed a few.  

In its glory “Socialist Paradise” days – when its Soviet sponsors subsidized practically everything – the Cuban government exported doctors and revolutionaries to hotspots around the world. During the same time, and continuing today, far more Cubans have exported themselves without government permission, and often at great personal peril, to escape the same Socialist Paradise. 

I guess free universal healthcare and a free college education aren’t enough of a draw when you have to wait on line for your ration of rice and beans, and rely on a black market for anything else like a bit more cooking oil.   

The result of such massive self-exporting is large populations of Cuban émigrés and their descendants living outside of Cuba, but with relatives still in Cuba. The remittances from their relatives are a lifeline for many Cubans still unable or unwilling to leave, and a boost to the Cuban economy.    

Recently, Obama proposed lifting the limits on remittances to Cuban relatives, and also relaxing travel bans on visiting Cuba. This was seen as a nakedly political move to raise his popularity among Cuban-Americans.  The net effect will be to put more money in the Cuban economy. 

Oh, and in return for all of this Obama has some really big demands:

  1. Be nicer to political dissidents ...
  2. Maybe release some political prisoners ...
  3. Consider starting to move away from a one-party political system.  
Ouch.  That’s really going to be painful for the Cuban government. I’m sure the Castros are having a good laugh at all that. 

So, all that aside, let’s look at what really should be on the table:
  1. Forget the hundreds of millions in compensation for economic damage from our trade embargo – the Cuban government expropriated private assets estimated at $6 billion in today’s dollar when it overthrew Battista; you really want to bring up compensation?  
  2. Okay to lifting the trade embargo – Cuba gets 80% of its food from the U.S. already, but has to pay cash, and has nothing to trade that we want …
  3. Okay to taking them off the list of state sponsors of terrorism – they can’t afford to sponsor anyone right now, anyway …
  4. Giving back Gitmo? NFW.  It’s our base, our property.  Let us now quote Dick Cheney.
I realize Obama may be the worst negotiator as President since Jimmy Carter – who gave away the Panama Canal to a drug-dealing dictator if you remember. But even Obama – or someone in his administration – should see that we should be negotiating from a position of strength, not from a position of weakness.    

We hold all the cards.  The Cubans have no cards. They have nothing to offer in return.  We don’t need this deal, but they sure as Hell do.  It’s as near-perfect scenario you could ever hope for.    

Plus, we have an ace in the hole. We can walk away and just wait.  Time is definitely on our side. The Castro brothers won’t live forever.  When they die – and they will – Cuba will change. 

What scares me anytime Obama is involved in something like this is that he doesn’t understand how to negotiate anything worthwhile. He gives away the store every time.    

He’s like a blind man playing poker with Gypsies.

It may one day be worthwhile to cut a deal with Cuba. I can’t imagine why, or for what purpose, but it’s possible, I guess. 

I just hope we’ll have a sharper player than Obama at the table when and if that time comes. 

Two more years, folks, two more years.  


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