When The Coal Mine Closed Down

By Paolo von Schirach

WASHINGTON – Not long ago, I read a vivid account of a small town in West Virginia facing the demise of a coal mine, the major employer in the area. It is a real tragedy. Many people in the small town worked there. Their families depended on their salaries; while the entire local economy thrived because of the money coming directly or indirectly from the mining operation. No mine, no nothing. Only semi-desperate unemployed miners, empty stores, empty restaurants. You get the idea.

Gas is cheaper and cleaner

And why did the mine close down? Mostly because of the competition created by cheaper, super abundant, (and much cleaner), natural gas as the new fuel of choice for electric power generation plants. Considering lower prices and lower emissions, utilities across America have been switching to natural gas.

Hence the slow demise of coal. Quite frankly, from a most elementary economic stand point, this switch from coal to natural gas makes perfect sense. Having a choice, utilities go for the fuel that costs less and pollutes less.

Indeed, as a nation, we should be extremely grateful to the entrepreneurs who a couple of decades ago unleashed this incredible “fracking revolution” and created this almost unthinkable natural gas bonanza. Once gas poor, America has now so much natural gas that it is exporting it, with obvious advantages for our balance of trade.

No reason to be happy

However, if you grew up and live now in that West Virginia community, you have no reason to be happy. The coal mine was all they had; and now it is gone. How are the people going to create, out of nothing, a new local economy that will provide income and a decent standard of living for all? The reality is that this is almost impossible.

Creative destruction

Capitalism is a process of “creative destruction”. Unfortunately the “creation” and thedestruction” components are not nicely harmonized. There is no “system” that will guarantee that when jobs are lost because a new technology has made the old one obsolete, (or as in this case a better fuel becomes available this way replacing the old one), enough new, well-paying jobs will be created, just when they are needed.

In the end, if one looks at the big picture, if an innovative economy works, eventually the entire society will be better off. New technologies mean new and better products or services. New investments mean higher productivity and higher salaries. Yes, this is true…eventually.

What about the victims?

In the meantime, what will be the fate of this West Virginia rural community now that their main source of income has disappeared, victim of the “destruction” component of “creative destruction”? Unfortunately, as a society we have not managed to create the necessary shock absorbers, the transition tools that could eliminate or at least alleviate the frictions caused by painful economic change affecting people with no defenses.

Sure enough, in America we have retraining programs, vocational schools, Community Colleges, and more. But these resources are scattered. They are not well organized. Most tragically, usually they are not available when and where they are needed the most.

A future smart society will provide tools

A future smart society should have this reassuring message for all workers: “Do not worry. If you lose your current job, and this is quite possible given the rapid pace of change in this hyper competitive global economy, we have many resources for you. You will quickly learn new skills. You will become employable in new sectors where there is a strong demand for qualified workers. You will be OK. Your family will be OK.”

Sadly, we do not have anything like this in place today in America. Yes, there is unemployment compensation, food stamps, Medicaid, and other state or federal subsidies. But these are just bandaids. These are no long term solutions.

May God help those poor people in that West Virginia small community. Without the coal mine they are lost.




US Kicks Gazprom In The Shin

By Paolo von Schirach –

WASHINGTON – It looks like a clever Washington move. The US Government just put on notice any company involved in laying pipes underwater that they should immediately stop work on the Gazprom Nord Stream 2 pipeline designed to deliver Russian gas to Northern Germany, and beyond via the Baltic Sea. If they do not stop, they will face US sanctions. Allseas, the Dutch-Swiss company directly involved in the Nord Stream 2 pipe-laying operations, immediately signaled that it would comply, in order to avoid US sanctions. Hence the halting of the pipeline project, just as it was close to completion.

Last minute effort to stop Nord Stream 2

Well, what’s this all about? This is about the American determination to prevent the completion of this Russian pipeline, even though Germany and many other EU countries openly want it, because Washington fears that Russian dominance of the European energy markets will give Moscow a dangerous degree of influence in European affairs.

Besides, for years Washington has been pointing out that this Nord Stream 2 pipeline has the clear geopolitical goal to divert to this new pipeline Russian gas now flowing to Eastern Europe via pipelines transiting through Ukraine. Upon completion of Nord Stream 2, the same Russian gas destined to European markets will no longer go to Eastern Europe via Ukraine. It will be shipped to Europe via Nord Stream 2. This way, with implicit European complicity, Russia will isolate Ukraine, while selling the same gas to its willing European customers.

The Europeans know what’s going on

Let me stress here that the Europeans (ostensibly our Allies) know very well that this is exactly what is going on. Russia wants to hit Ukraine and figured out a clever way to prevent it from collecting the transit fees for the Russian gas passing through it on its way to Eastern Europe and beyond.

But now America, with the threat of sanctions, stopped the whole thing. The Nord Stream 2 pipeline will not be completed; and the wily Russians got a bloody nose. Well, not really.

Nord Stream 2 will be done

Sure enough, this is a major inconvenience for Gazprom and Moscow that most likely will cause a significant delay and cost overruns for the mega-project now almost completed. But there is no doubt that in the end Nord Stream 2 will be done. Notwithstanding the aggravation and the additional costs, Russia seems to have the vessels that can step in and lay the pipes, so that the project will be finished, at some point.

Only a gesture

So, what is this fracas about sanctions all about? Quite frankly, at best, this is a gesture on the part of the US. I do not see much substance here. Frankly, it is odd for Washington to try to stop our fully consenting NATO allies, who really want this energy project with roguish Russia, (up to no good in Ukraine and elsewhere), simply because we say that it is bad for them.

The reality is that via these targeted sanctions the US can certainly delay this Nord Stream 2 project; but it cannot not stop it altogether. In the meantime, Europe sees us as bullies trying to impose our own views on them, while the EU and NATO countries engaged in this venture with Russia apparently see nothing wrong in doing business with Russia, while abetting its clear design to hurt Ukraine.

No unified view on energy policies within NATO

Sadly, the problem here is not about this ill-advised pipeline aimed primarily at hurting Ukraine. The problem is that the very existence of this project, with full European participation, (the Germans in the lead), illustrates the inability to have a cohesive, unified view of what constitutes a threat to European security, and more broadly to NATO.

An empty gesture that will drive the US and Europe further apart

This clever US move to stop the work on the pipeline looks to me like an empty gesture that at best will delay completion of this energy project. However, we can rest assured that this American blatant interference in a deal freely struck between our NATO Allies and Russia will only engender more anti-American animosities in Europe, and not the necessary reappraisal of what we, as NATO Alliance, consider to be a serious threat to our security when it comes to energy, or other critical areas.




Boeing Is In Serious Trouble

By Paolo von Schirach –

WASHINGTON – Boeing’s big troubles are not going away. At last, the Board got rid of Dennis Muilenburg, the CEO who seemed to personify the company’s ill advised self-assurance in the light of the seriously negative ripple effects caused by the two well-publicized crashes involving the 737 Max. But this “human sacrifice” seems to be too little, too late and it will not satisfy anybody. According to many, it seems that Boeing’s troubles run deep, way beyond the specific circumstances arising from technical malfunctions that seem to have caused the two crashes.

It seemed a manageable problem

At the beginning it seemed that we were dealing with a serious mechanical problem; but an isolated problem that affected one potentially defective system in one type of aircraft, the 737 Max. It was all about a software glitch that could trigger anomalous automatic adjustments in response to a sometimes defective sensor in the new 737 Max airplanes. Right after the crashes, Boeing’s reassuring reaction was that the problem had been identified and an adequate technical solution would be provided, in no time.

Because of Boeing’s reassurances, in the immediate aftermath of these accidents the accepted narrative was that, while these crashes were clearly bad news for Boeing, there would be an adequate fix which consisted in correcting the defect and then providing appropriate guidance and training to all pilots using the 737 Max around the world.

Most experts agreed that this fix should do it. Yes, Boeing had suffered a tremendous blow to its reputation and prestige as one of the two major civilian airplanes manufacturers in the world, (the other one being the European consortium Airbus); but, in time, it would be back to business as usual, and this stain would be forgotten.

Deeper issues

Well, without getting into the details, this relatively optimistic scenario did not and will materialize. And this is because these accidents triggered a stream of leaks followed by reluctant admissions on the part of Boeing that revealed how safety standards and protocols, testing of parts, cooperation between engineers and test pilots were not taking place according to the highest engineering and safety standards.

In other words, the picture that emerges, (although it may be exaggerated), is of a company that got so comfortable being number one in America and one of only two in the world that it allowed practices that were well below acceptable and agreed upon safety standards, al multiple levels.

Whatever we do must be good enough

In other words, we are getting a picture of a hubristic management whose main concern was to get products out of the factory as soon as possible, because the primary goal was to deliver airplanes as fast as possible to the customers, taking for granted that whatever safety standards the company was following, they had to be good enough.

FAA not yet convinced

Again, much of this is speculation; and it would be unfair to conclude that Boeing as a company was no longer concerned with high levels of safety. However, up to now the company has been unable to convince its US regulators, the Federal Aviation Administration (FAA), that it has made all the necessary fixes to the 737 Max and that it has implemented the highest quality safety protocols that will guarantee now and in the future safe airplanes, along with the best and most complete training programs for all pilots of all airlines, regardless of their nationality or seniority.

Indeed, as of today, there is no set date for the resolution of this gigantic problem. Without FAA certification the 737 Max cannot fly. Hundreds of airplanes produced by Boeing cannot be delivered to customers around the world. In fact, Boeing had to stop production of the 737 Max, since it has no idea as to when things will go back to “normal”, whatever thais means in these highly unusual circumstances.

Too big to do anything wrong?

I know that this is a bit of a stretch. But this level of corporate arrogance, if proven, makes me think of another major tragedy: the BP Deepwater Horizon explosion in the Gulf of Mexico in 2010 which resulted in the worst ecological disaster ever connected with oil exploration in the entire history of the US.

In that case, unsafe procedures were allowed which resulted in the explosion on the offshore platform, the loss of many lives, and the unprecedented ecological catastrophe that followed. Subsequent investigations revealed shoddy practices and lack of proper oversight. The difference is that BP, the oil company that ultimately got the blame, was not directly involved in the activities of its contractor; whereas here we are talking about Boeing’s internal procedures.

Still, it seems that being super big and successful allows smugness to ensue. You are so big and so strong that whatever you do, even when you cut some corners, must be right.

Leaks revealed serious issues

Well, tragically, it is not so. Even when you are number one, or perhaps because you are number one, safety and all proper procedures need to be strictly enforced. Belatedly, Boeing’s Board at last fired Dennis Muilenburg, the CEO who was in charge when the tragedies occurred and who has been saying ever since that everything would be in good order, in no time.

Unfortunately, while Muilenburg was trying to reassure shareholders and customers, all these revelations about relaxed procedures and lowered standards were leaked, this way causing serious additional damage to the company’s prestige and reputation. And so finally, as the CEO who seemed to personify a bad corporate culture, not to mention inadequate crisis management skills, he got fired.

FAA not reassured

But this is not nearly enough to reassure regulators, all the airlines domestic and foreign, that buy Boeing airplanes, and the flying public across the world.

Boeing’s number one objective must be to do whatever it takes to convincingly reassure all stakeholders that Boeing’s engineering and safety standards are second to none.

This may require extraordinary measures, such as hiring outsiders with a stellar reputation within the industry to go through all procedures and factory floor operations and certify them, or something like this. In other words, something really drastic must be done to recreate trust. Firing the CEO is just not enough.

Boeing is a national treasure

In the end, let’s look at the big picture. Let’s remember that Boeing is not just a big US company that makes civilian airliners, (ands a lot more, if we consider its space and defense divisions).

Boeing is an American national treasure.

It epitomizes the best of American innovation, technological prowess, ingenuity and complete dedication to quality by upholding the highest industry standards.

This was Boeing’s well deserved reputation until these two sad accidents and all the leaks and revelations that came out in their aftermath. Fairly or unfairly, Boeing’s reputation has suffered enormously. It is now up to its senior management to do their utmost to regain the confidence that has been compromised. Small fixes and reassuring press releases will not do it.




US Will Soon Be The Number One LNG Exporter

Paolo von Schirach –

WASHINGTON – Energyindepth, www.energyindepth.org recently stated that the world is witnessing a major energy supply revolution. The United States, until a few years ago destined to become a major natural gas importer, is now slated to become the world’s number one exporter of Liquefied Natural Gas, LNG.

New geopolitics of energy

The website made this point also quoting the Executive Director of the International Energy Agency, a Paris-based group of major energy consumers: “The growth of U.S. natural gas production – led by increased shale production – has been transformative, not only domestically but globally. And it’s only the beginning. As IEA Executive Director Fatih Birol recently said:

“The second wave of the U.S. shale revolution is coming. It will see the United States account for 70 percent of the rise in global oil production and some 75 percent of the expansion in LNG trade over the next five years.  This will shake up international oil and gas trade flows, with profound implications for the geopolitics of energy.”

US as LNG exports leader

While the US is now the world leading oil producer, let us focus here on the vastly increased American LNG export capacity. New US LNG terminals have been completed, and additional ones will come on line very soon. As a result the US, already the world number three LNG exporter, (behind Qatar and Australia), in a few years will become number one.

While this is good for business, it is obvious that this new role of America as key energy supplier will have important geopolitical implications, as this surge in LNG exports is not just a temporary phenomenon. Indeed, the undeniable fact is that the world will rely on large amounts of natural gas for decades to come.

The world will continue to rely on gas

Realistically, it is clear that notwithstanding pledges to cut down the use of fossil fuels in order to combat global warming there is no way to achieve a rapid shift to non-carbon energy sources within the foreseeable future. It is just technically impossible. And it is also clear that affordable natural gas, used largely as electric power generation feed stock, is and will be the fuel of choice for many energy poor countries. Besides, it pollutes a lot less than coal. Therefore, from an environmental protection perspective, it is the least damaging among the fossil fuels.

Taking all this into account, the world will continue to rely on natural gas as feed stock for electric power generation, heating, and much more for decades.

Vast geopolitical implications

Of course, this sustained demand for gas is about new or expanding markets for the US energy business. However, it is obvious that there are and there will also be significant geopolitical implications. Indeed, US growing LNG exports will be a factor in reshaping commercial and political relations with many Asian countries and Europe.

New markets in Asia

For example, India desperately needs additional energy supplies for its energy starved population, now exceeding 1.3 billion. When it comes to electric power generation, India still largely relies on dirty coal, with horrible environmental repercussions in terms of staggering air pollution levels in most large urban areas. Switching over to natural gas is a necessity for India. The availability of increasing amounts of US LNG will make this transition away from coal a bit easier; while a new, robust energy trade will strengthen overall ties. Likewise, Japan and South Korea, traditional US allies and always net energy importers, also need gas. The opportunity to buy additional quantities of US LNG will strengthen the bonds with these two key Asian countries.

Of course, energy poor China could also be a major buyer of US LNG. But the political relationship between the US and China is bad, and not destined to improve any time soon. Therefore do not expect China to be a major buyer of US LNG. (China is focusing now on a significant increase of imported Russian gas, via new pipelines).

More LNG to Europe will counter Russian dominance

Another important market for US LNG will be Europe. All projections indicate that natural gas consumption in Europe will stay flat. However, European sources of natural gas (originating from Norway and The Netherlands), are dwindling, while much of Europe relies heavily on imported Russian natural gas supplied via a variety of pipelines, old (via Ukraine) and new (via the Baltic Sea). Some European countries see no problem in this significant energy dependence on Russia, while others feel uneasy, given the history of Russian meddling in Eastern Europe and beyond.

Given these geopolitical concerns, some European countries, most notably Poland and the Baltic States, look very favorably at the opportunity to diversify their natural gas imports by increasing US LNG purchases. For the time being, US LNG exports to Europe are modest, and so they do not shift the overall pattern of large purchases from Russia.

New flexibility

However, the very fact that several European buyers of Russian gas now have a new purchasing option –US LNG– that simply did not exist until a few years ago, gave flexibility and better bargaining power to the Europeans. As a result, Russia in many instances was forced to lower its prices, as a way to fend off US LNG competition. Going forward, as US LNG export capacity increases and the price differential between LNG and Russian piped gas shrinks, expect additional European purchases of US LNG.

Increased US influence around the world

All in all, the fact that the United States already is today –and will be even more so in the years to come– the leading, dependable exporter of liquefied natural gas, a vital, relatively clean, energy source, will increase American influence around the world, and will help strengthen political ties with key countries in Asia and in Europe.

Yankee Ingenuity

Not so bad overall, considering that this US natural gas (and oil) revolution originated out of the dogged persistence of a small band of American “frackers” who believed that oil and gas could be profitably extracted from shale formations, when all the energy experts and the big energy companies stated that it was absolutely impossible.

Three Cheers for Yankee Ingenuity!




Bad Human Behavior Is The New Killer Disease

By Paolo von Schirach –

WASHINGTON – When it comes to taking care of our health, we Americans are really going backwards –in a most spectacular way! We are now well into an era in which by far the main enemy of our health and therefore of the opportunity to live a mostly disease free, long life, are no longer untreatable viruses or bacteria. NO, IT IS US.

We are killing ourselves

Yes, we are slowly killing ourselves. And the silent killers are the terrible dietary habits millions of Americans have mindlessly embraced over the last few decades, (eating and drinking way too much bad stuff), and zero exercise. The manifestation of these truly bad habits are well known. I am talking about our gigantic –and worsening– obesity epidemic, the consequent explosion of type two diabetes and the various ailments caused by this debilitating, chronic disease.

In a nutshell, we are killing ourselves because –as a Nation– we have adopted a horrible diet and no exercise as our norms. The cumulative effect of these terrible habits practiced by millions over many decades is deteriorating health, (more cardiovascular afflictions, more hypertension), for tens of millions of Americans. Of course, these chronic conditions get worse as we age. And If you add to the mix the serious crisis caused by various addictions, (drugs, smoking, alcohol), America –a rich, well resourced country– is getting close to a basket case.

We spend a fortune on health care

And all this is happening notwithstanding the stupendous amount of money the US spends on health care. Indeed, America has the odd record of spending double what other rich countries spend on health, (about 18% of GDP, a staggering amount), with truly mediocre if not bad health statistics when it comes to incidence of chronic diseases and declining life expectancy. (At a little above 79 years, US life expectancy is very close to Cuba, Portugal and Albania).

Science defeated many diseases

As I said, when it comes to our health as a society, we are really going backwards. Think about it. The 19th and the beginning of the 20th Century were all about understanding and then successfully fighting deadly bacteria and viruses that were at the source of often incurable maladies. Finally, cures and vaccines were discovered that could successfully fight back smallpox, tuberculosis, sifilis, pneumonia, and polio.

Public health standards

Closer to our times it became routine, first in developed countries and then progressively elsewhere, to have massive immunization programs, so that infants and children would be protected from many potentially lethal infectious diseases. Furthermore, basic norms of cleanliness were identified and and then taught, such as frequent hand washing with soap, refrigerating perishable food items, and rinsing fresh fruits and vegetables before eating them.

At the same time, authorities understood the importance of public hygiene. They started providing treated, clean water to households. They built modern sewage treatment plants, along with modern trash removal services, so that urban waste would not become the breeding ground for bacteria and vermin (such as rats) that could carry and spread disease.

Major victories

These are major victories. Vaccinations, immunizations, the availability of antibiotics, combined with vastly improved standards aimed at safeguarding public health, cut down infant mortality and allowed millions of adults to live longer, healthier lives.

If we fast forward to today, for sure thousands of dedicated scientists keep working on major medical issues, such as various forms of cancer, dementia, Alzheimer, and a plethora of genetic ailments. And this is good. Much, much more needs to be discovered and understood.

US health is declining

That said, if we look at broad US health statistics, we see an enormous paradox. As I said, we conquered major diseases a long time ago. And America spends literally a fortune on various forms of health care delivery, almost double the average of what is devoted to health in other affluent societies. And yet the overall health conditions of the American populace are actually declining on account of the epidemic proportions of ailments such as obesity and type two diabetes caused not by mysterious germs but only by our bad personal habits.

In other words, our declining health is totally self-inflicted.

We know the problem

The sad fact is that everybody with a modicum of education knows exactly why we are dealing with these epidemics. It is all about over eating bad stuff, (mostly processed food, sodas, and too many fatty, sugary snacks), combined with too much alcohol, and lack of even a modicum of physical exercise in our daily routines. And if you add to this already toxic mix millions of Americans addicted to alcohol, cigarettes, and a large variety of drugs, you have the paradoxical picture of a wealthy, reasonably well educated society that is also very sick. This is the really bad news.

It is all rooted in bad habits

But the good news is that this catastrophic deterioration of the overall health conditions of millions of Americans is not about bad luck. It is rooted in our freely adopted BAD HABITS. Habits are not genetic. We learn them, and then we adopt them. And this means that given proper guidance and education, once we realize how toxic these habits are, we can ditch them and embrace new, healthy ones.

Yes, it really is as simple as that. We became accustomed to unhealthy processed foods. We drink rivers of sugary sodas. We eat too much junk food which is mostly fat, sugar and salt. Most of us do not exercise at all. I am not sure how these habits came to be embraced. But is is time to get rid of them. And it is quite possible, even though doing so will require an extensive, focused public education campaign, starting with children, and quite a bit of self-discipline.

Yes, ditching bad habits is a major challenge

I fully recognize that changing the entrenched bad habits of millions of Americans looks too big a task, in fact an impossibility.

And yet it is doable.

We can all learn what a healthy diet is, and then embrace it as our new habit. There is nothing magic or mysterious about it. Fruits and vegetables are good for you. Snack food is not. Plain water is good for you. Green tea is good for you. Sugary sodas are not. Furthermore, once we understand the horrible long-term consequences of a sedentary life, we can all engage in some form of exercise, (walking just 30 minutes a day can be a life changing new habit for mostly sedentary people).

As I said, unless we ditch our truly bad habits, we are slowly killing ourselves, while we waste billions of dollars every year treating mostly preventable diseases that we inflicted on ourselves.

Are you telling me that we cannot do better than that?




Good Values at the Root of Utah’s Success

By Paolo von Schirach

WASHINGTON – A recent article pointed out how, year after year, Utah is on top of the national list of the best states to do business in America, not to mention that the state gets very high marks on good governance; while in Utah there is very low unemployment, lower than the historically low national average of 3.5%. And in Utah kids attending public schools on average do rather well compared to the rest of the U.S., notwithstanding the fact that in Utah spending per pupil is quite below the national average. Well, what is the secret of this success?

Nothing special about Utah

There is absolutely nothing special about this Western landlocked state. Sure, there are mountains, and parks and a great deal of pristine nature. But this natural beauty is not at the foundation of Utah’s growth, and therefore it cannot explain sustained prosperity. And yet, year after year, Utah stays on top of many significant national rankings dealing with easiness to do business, governance, quality of life, and more.

The secret is the people and their values

Well, here is the reason: the people of Utah. Yes, the people of Utah and their values. We know that most people in Utah are Mormons, (62%). Whatever your opinion about this rather mysterious religion, we know that this faith strongly promotes values of thrift, frugality, sobriety, honesty and charitable giving. Could this –deeply held values that promote best practices in education, business and government– be the ingredients of Utah’s secret sauce? I think so. The spiritual values held by many Utah’s citizens do indeed have a beneficial impact on the society they built.

So, there you have it. Sustained economic growth and good governance reinforce each other, and both of them are the byproduct of good values sincerely embraced by the people.

No proprietary economic development strategies

Utah’s, “economic miracle” is not the outcome of following sophisticated, complex investment and economic development strategies, or proprietary computer generated models developed by a team of management super gurus.

The truth is disarmingly simple. Values that hold in high regard a good education, entrepreneurship, honesty, hard work, frugality and lean but effective government inspire productive, honest behavior and good public administration. And all this eventually translates into prosperity.

“You mean, that’s it?”

Yes, that’s it.




Thanks to Fracking, No Panic in the US After The Attacks on Saudi Oil

by Paolo von Schirach –

WASHINGTON – The most astonishing consequence of the unprecedented, devastating attack on Saudi Arabia which crippled the Kingdom’s oil production and refining facilities is what did not happen, especially in the USA.

There was no panic in the US or worldwide; no skyrocketing, out of control oil prices. Yes, crude prices went up, significantly; but not in a dramatic way, if you consider that the supplies of Saudi Arabia, the leading world exporter, (along with Russia), have just been cut down by 50%! That 50% represents 5% of total world supply. In an environment where strong demand matched tight supply, this sudden shortfall would be a disaster, especially for the US, along with China the leading oil consumer. But right now world oil supplies are not stretched, notwithstanding steady demand, thanks to the US fracking revolution which added millions of barrels of oil a day to global energy markets. More on this in a moment.

Surprise but no shock

Obviously, world markets took this unexpected and sadly successful attack against well defended (we all thought) and vitally important Saudi oil facilities quite seriously. But again, there was no panic; no stock market crazy gyrations. In contrast, you can rest assured that if the very same attack on Saudi Arabia had taken place 10 or 15 years ago, the reaction would have been chaos and mayhem –especially in Washington, DC and on Wall Street. Similar shortfalls caused the oil crises of 1973-74 and 1979.

What happened in the last 15 years?

So, what is the difference between now and then? The difference is the US fracking revolution. The almost unthinkable surge in US oil and gas production made possible by the adoption of fracking technologies by many US energy companies , (a successful combination of hydraulic fracturing and horizontal drilling), which began 10 to 15 years ago has given the United States millions of additional barrels of oil a day; and, as a consequence, also a much higher degree of energy self-sufficiency. Not total self-sufficiency, mind you, but close. Heavy reliance on distant (and it turns out not so reliable) oil suppliers was drastically diminished along with massive increases in domestic oil production. 

The broader impact of the US fracking
revolution

This gigantic increase in domestic oil and gas production made possible by extracting oil and gas from shale formations, coupled with increased oil imports from Canada, a friendly neighbor, have created a new scenario of quasi “Hemispheric Energy Independence”. In simple terms, North America, (Canada, USA and Mexico combined), can soon become energy self-sufficient.

Let’s be clear, we are not there yet. But we are almost there. The US still imports some OPEC oil, as well as crude from other regions of the world, but most of the oil we consume now in America is either domestically produced or imported from reliable neighbors.

Relaxed atmosphere

Hence the relatively relaxed atmosphere both in Washington and on Wall Street, in the aftermath of the attack on Saudi oil facilities, when it comes to confidence in our ability to ensure continuity of energy supplies to industry and consumers.

Notwithstanding the shockingly bad news of the brazen attacks that knocked down half of Saudi Arabia’s oil production and refining facilities, with the ensuing cuts in global supplies, there is no panic in America.

This is an incredibly important achievement. And we owe this to a multitude of small, medium and some large fracking companies that are behind this American energy revolution.

Global benefits

And the fracking revolution obviously benefits the rest of the world as well. Since America’s imports have been cut down by millions of barrels a day, there is more oil in the global market place available to all other importers. Abundant supply means lower energy prices for all, ample reserves, and (almost) guaranteed deliveries to all importers.

So, here is the story. Thanks to fracking and massively increased US oil production, even an unprecedented, catastrophic event like the attack on Saudi oil facilities can be handled without resorting to extraordinary measures such as price controls, rationing, etc.

A private sector effort

Where am I going with all this? Very simple. Fracking was not a US government program. Fracking is all about old fashioned Yankee ingenuity. The US private sector, often small energy entrepreneurs, largely unhindered by suffocating state or federal rules and restrictions, had the freedom to invest in drilling in shale –an endeavor what at the beginning seemed to most experts a perfectly crazy idea, destined to failure.

Well, the seasoned experts were wrong. After a few years of trial and error, the daring energy entrepreneurs were proven right, and America now –thanks to fracking—is in the midst of this incredible “Energy Renaissance”. This huge additional domestic production, in this moment of international bewilderment caused by the brazen attacks on Saudi oil facilities, provides precious support and reassurance to both the US economy and US national security.

Broader lesson: encourage free enterprise

So, here is the broader lesson. As a Nation, let us do all we can to encourage more innovation and entrepreneurship –in all sectors. Do not place roadblocks on the path of those who seek to create new products, new systems and new solutions. And I am not just talking about energy here. I am talking about all economic sectors.

Sure, all
economic activities have to be conducted within the boundaries of the law,
while they have to comply with all necessary safety and public health
standards. These are the common sense rules of a modern, civilized society.
But, once reassured that there is genuine compliance with the basic norms of
our nation, let people be free to do what they want to do.

In the case of fracking we see the enormous economic and now national security benefits brought about by daring spirits, ingenuity and enterprise. About other economic sectors, God only knows what new benefits commercially viable innovation may bring to us. 




America Lost Its Ill-Conceived War in Afghanistan

WASHINGTON – The longest American war is finally coming to an (unhappy) end. America is negotiating its departure from Afghanistan. A draft deal sketching a time line for US troops withdrawal has been hammered by US Envoy Zalmay Khalilzad and the Taliban.

Good news? Not really. Let’s be clear. America is not negotiating from a position of strength, after having inflicted painful losses on the Taliban, our enemy. This is not a carefully crafted peace treaty, with credible built-in conditionalities and safeguards. Whatever the wording of the final agreement, whatever euphemism you may choose to characterize this peace process, this is in essence US surrender.

Inglorious end

It is clear to all observers that America is negotiating with the Taliban from a position of extreme weakness. The other side, the Taliban, is winning on the ground, and we simply cannot take this nightmare of daily attacks followed by feeble and ineffective Afghan responses anymore.

Sadly, this is the inglorious end to a terribly ill-advised October 2001 US invasion of Afghanistan, followed by an ill-conceived military occupation, and an even worse economic development strategy concocted under the assumption (bordering on lunacy) that America and its NATO Allies had the resources, the will and the skills to transform an extremely backward, war-torn Afghanistan into an at least passable modern, working democracy.  

A bad idea

Sadly, this negotiation with the Taliban is the end of the American poorly planned and poorly executed adventure in Afghanistan. The occupation of Afghanistan was and is a bad idea doggedly pursued for almost 20 years by national leaders who should have known better; or who at least, after a few years of failures, could have paused and thought the whole thing over again.

Foreign
policy mistakes unfortunately happen. But Afghanistan is much worse. This is
about hatching a completely unrealistic plan and then clinging to its failed
policies, year after year, in the vain hope that –maybe—someday things will
improve, without any evidence that anything was getting any better.

It all started after 9/11

Let’s go back to the beginning of this sad story, and that is 9/11. After it became clear that this major terror attack against the US homeland had been directed by Osama bin Laden, the founder of al Qaeda who had found sanctuary in Afghanistan, the Bush administration decided “to go get him”. However, Washington almost immediately decided also on a much bigger agenda. Indeed, the Bush administration decided that it had to punish not just the al Qaeda leadership, but also its Afghan willing hosts, that is the Taliban government.

Therefore the more narrowly focused “punitive expedition against Osama and al Qaeda” almost immediately morphed into “regime change” for Afghanistan. This rather grandiose objective was in fact an act of vainglorious superficiality. In so doing, Washington, while trying to get Osama who was hiding somewhere in the mountains of Afghanistan, (without any success, by the way!), at the same time declared to the world that it needed to “fix” Afghanistan once and for all, so that in the future this sorry country would become a responsible, modern democracy, and no longer the friendly home of terrorists.

Insane policy

In
principle, this may sound nice: “Clean up
the place and engage in a make-over”
so that in the future Afghanistan will
not be used as a base for Islamic terrorists.
In practice, anybody with a brain at the time would have been able to see that
this –“fixing Afghanistan”– was a
next to impossible task.

Anybody with an even scant knowledge of decades of failure in trying to promote development in Africa and other under developed regions through large amounts of outside assistance could have pointed out that this was mission impossible.

Indeed, if promoting development in Africa is extremely challenging, it should have been clear to all top decision-makers that engaging in a development effort in an extremely poor, and completely ruined post-conflict Afghanistan would take extraordinary resources, and many, many decades.

A dauntingly
tall agenda, by the way, even assuming peace and a cooperative society willing
to buy into this rapid modernization strategy hatched and dished out by outside
experts.

Impossible goals

Again, everybody knew or should have known that at the end of 2001 Afghanistan was an incredibly backward, tribal country that lacked almost all the underpinnings necessary to even start a development agenda. And that includes: some meaningful productive activities, (no, poppy cultivation should not be on this list), at least some basic infrastructure,  a modicum of electricity generation and transmission, reasonably modern health care facilities, functioning schools, an educated middle class, a reasonably competent government. Afghanistan had almost none of that at the end of 2001. On top of that, it had suffered for years under a communist dictatorship, then it had to endure the Soviet invasion which was followed by a bloody war against the Soviets, and then civil strife followed by the medieval Taliban regime.

A record of failure

Anyway, the
whole US-led Afghanistan enterprise that began at the end of 2001 failed
–miserably. This is well documented. For instance, to this day, the US
government has no idea of what happened to billions of dollars targeted for
development in Afghanistan that simply vanished.

The biggest failure is of course the strong resurgence of the Taliban and the utter inability of the US-trained and equipped Afghan military and police to even hold their ground –let alone go after the Taliban insurgents and defeat them.

Right now, the Kabul government is unable to guarantee even a modicum of security almost anywhere in the country. The Taliban can hit almost city, including well defended targets in Kabul itself. On top of that, in the last few years, other extremists and terror groups have found fertile ground in Afghanistan. On a daily basis, there are attacks, bombs, suicide missions, and what not. And this is happening after 18 years of American and NATO military assistance, combined with gigantic development packages aimed at building a modern government, peace and new prosperity.

The negotiations with the Taliban

I guess this is why the Trump administration FINALLY decided to cut America’s losses and get the troops home. The fig leaf here are the bilateral “peace negotiations” with the Taliban. Through this charade hosted by Qatar, Washington would like to convey to the world that this is no cut and run. On the contrary, Washington will implement an orderly and careful incremental drawdown of US forces –but only if and when the Taliban will meet certain non-negotiable conditions.

The message
is: “This is no unilateral withdrawal. We
are negotiating an honorable and sound peace agreement. We Americans shall make
sure that the interests of the Afghan people are protected. We shall also make
sure that the new (and still fragile) Afghan democratic institutions will be
safeguarded and will continue to define the country long after the last
American soldier has departed”.

Of course,
this is pure fiction.

Whatever
they may say now, the Taliban leaders do not believe in either democracy or
power sharing. To believe in a well-functioning future coalition government featuring
the current Afghan leadership and the Taliban working together for the benefit
of the Afghan people is ridiculous. Which is to say that these negotiations are
only about saving face. Whatever you may want to call this process, in essence,
this is surrender. We failed –in a spectacular way– and now we are leaving an
impossible situation that cost US taxpayers hundreds of billions. No more good
money after bad.

What do we make of all this?

So, what do we make of this absurd tragedy? Sadly, the only plausible conclusion is that in the highly charged, emotional days after 9/11 our national leaders literally lost their minds. There is no doubt that the terror attack we suffered on September 11, 2001 was unprecedented in scale and loss of American lives.

But 9/11 was
not the end of the world. The notion that America, in order to prevent future
attacks and be safe, had to “redo
Afghanistan”
was megalomaniac and stupid. Going after the bad guys, the
masterminds of 9/11, was absolutely justified. But the notion that creating a
new country in Afghanistan was necessary in order to guarantee future US
security was fatally flawed.

And, by the way, let’s
not forget: even the more focused mission of capturing or killing the al Qaeda
senior leadership FAILED, TOTALLY. The US forces were there, on the ground.
Osama and his cohorts were on the run. And still we failed to capture Osama, for
more than a decade.

That said,
the Afghanistan operation was the beginning of the “War on Terror”, an ill-defined,
grandiose strategy that created what was ultimately an unreachable goal.

“War on Terror” does not mean
anything

Terrorism is not a place you can attack and conquer or a clearly identifiable enemy located in one place. Terrorism is a modus operandi that can be adopted by several small groups, or even isolated individuals all over the world. Terrorism is about dramatic violent actions that will gain a great deal of publicity.

How do you “win” this war? How can you ensure that all the bad guys, and the would-be bad guys, have been apprehended or killed? This is impossible. You can and should do your best to monitor and infiltrate terror cells. You should prevent when possible acts of terror and go after the bad guys when something bad tragically happened. But this is mostly about doing your best to manage an elusive threat using intelligence and special forces. You cannot “win” this conflict once and for all; just as police forces, even the best ones, cannot inflict a final defeat on all criminals and criminal activities.

There are more than 7 billion people on this planet. Even if the smallest fraction of this large world population engages in terror plots, you still have a problem. And yet this open ended goal –the War on Terror– became the fundamental pillar of US foreign policy under George W. Bush. America was committed to fight this global War on Terror to the very end, and we would not rest until the last terrorist had been killed or apprehended. This was and is an impractical, in fact fatuous goal.

No doubt, terrorism is serious business, to be treated seriously. And this is why we have sophisticated intelligence services and specially trained forces. But terrorism is not an existential threat that justifies making it into our number one national security priority, engaging in a global war in which the entire world, by the way, has to actively participate in order to show that they are with us.

Wrong policies continued under Obama

But here is the thing. The stupidity of that Bush administration policy did not disappear when President Bush left office. What is bizarre and unexplainable is that even though George W. Bush left the stage in January 2009, and no one talked about his War on Terror anymore, the failed Afghanistan project that was an integral part of the initial War on Terror strategy kept going, and going.

Indeed, President Obama declared that the war in Afghanistan was the good war that needed to be fought, as opposed to the bad war in Iraq that was discretionary and ill-advised. And so Obama, the Nobel Peace Prize winner, kept going and going in Afghanistan even though he and his team should have known better. After all they were not bound to justify and continue on a flawed commitment created by the previous administration. And it took Trump, the president elected with the open pledge to end all the stupid wars started and continued by his predecessors, more than two years to finally come to grips with the need to end this madness.

Taking stock

So, here is the balance sheet. It took 18 years to finally recognize a colossal foreign policy mistake. How could America be so wrong for such a long time without any serious debate on this record of failure followed by more failure? How could this happen? I am not entirely sure. Still, as a minimum we need to recognize that there is a nefarious inertia, combined with mental laziness, enveloping the entire upper layer of the analytical and decision-making centers of this nation.

In Afghanistan, America started something big and expensive with all the wrong assumptions regarding the size and scope of the undertaking and a realistic time line to achieve the stated goals. Alright, mistakes are made.

But then, how can we justify that Washington, despite a solid record of failure in Afghanistan, kept going and going, year after year, without anybody in a position of power and responsibility pausing and asking the most elementary question: “Is this really working as intended?”

American policy-makers lost the
ability to reflect

Here is my conclusion. As a nation, notwithstanding hundreds of billions of dollars spent every year on intelligence gathering, scenario planning, and war games, not to mention the largest defense budget in the world, we seem to have lost even a modicum of self-reflection ability.

An outside observer looking into this mess might find this record of systemic failure by the leaders of the most advanced country on Earth, and the attendant epic waste of resources stemming from totally misguided policies, quite funny. But it is in fact tragic. In the end, finally getting out of Afghanistan is a good thing. But I am not sure that America’s leaders learnt any enduring lessons.




No Action on Failing US Public Schools

by Paolo von Schirach –

WASHINGTON – For many years we have been debating the sorry state of US public education: too many drop outs, large percentages of high school graduates who cannot read or count, and how education could and should be improved. Alas, there has been and there is much talk –and very little remedial action.

No accountability

Nationwide, the public schools sector seems to belong to a different universe, a universe in which professionalism, the pursuit of academic excellence, merit-based pay and promotions for teachers, accountability, and cost-effectiveness are unknown concepts.  

Awful record in Colorado

Below, you can look at yet another illustration of this catastrophic failure that essentially condemns students educated in bad schools to a life of under achievement. (Letters to the Editor, The Wall Street Journal, August 21, 2019)

In Colorado, not a poor under resourced state, most high school students perform well below grade. Many of them cannot pass a simple test that would allow them to join the Army. This is simply outrageous. But you do not hear any public outcry.

The children of the elites are taken care of

Here is my theory about this general indifference on the part of all American elites regarding this colossal societal failure when it comes to educating so many of our kids –and these are mostly poor kids.

The truth is that the children of key policy-makers, at all levels, in most cases do have access to quality education. As they normally live in good areas, they can enroll in higher quality public schools. If these are not available, they can always go to charter schools or private schools. In other words, their parents are reassured that their kids will get a good or even superior high school education, itself the ticket to a good university and eventually a rewarding, well remunerated career. The children of the American elites are taken care of.

And what about all the others? The others, oh well the others will go to the regular (bad to failing) public schools. They will graduate (those who do) with minimal skills and knowledge, while they will often be functionally illiterate, as the Letter to the Editor reproduced below illustrates.  

From: Letters to the Editor, The Wall Street Journal, August 21, 2019

“Regarding Baker A. Miller’s “The
Smear Campaign Against Charters” (op-ed, Aug. 14): Last week our state test
results were released here in Colorado:
Only 45.8% of our students read at grade level, and only 34.7% can do math at
grade level.”
[Bold
added]

“These results have changed little
over the last 20 years. This is noteworthy because our current governor, Jared
Polis, worked to pass an amendment to the state constitution in 2000 that
required education spending to increase at the rate of inflation plus 1% every
year. This should put to rest the notion that more money is the answer. No
doubt we will hear the usual calls for increased funding of public education,
but even if we gave the system a billion dollars tomorrow, it wouldn’t know
what to do with the money.”

“I own a remedial-education business
and have lost count of the number of students I’ve taught who hold high-school
diplomas from the Denver and Aurora Public Schools systems but are functionally
illiterate and innumerate. Many want to join the military but can’t pass the
entrance exam (the ASVAB). It’s official—the academic standards required to
join the Army are higher than those needed to earn a Colorado high-school
diploma.”

“Isn’t it high time we moved this
incompetence from the realm of the merely scandalous to the specifically
criminal? What’s to stop U.S. attorneys around the country from filing RICO
[The Racketeer Influenced and Corrupt
Organizations Act] charges against school
boards, superintendents and union officials? If there’s a bigger racket than
public education in the U.S., I’m unaware of it.”

(Signed) Nate Braden, Denver www.wsj.com

Criminal conspiracy?

The author of this sad letter suggests that all the players involved in this public education drama are in fact members of a criminal conspiracy. Of course, this should not be taken literally. However, the enduring gap between education standards and disastrous outcomes at the very least indicates irresponsibility and neglect.

America is now a two tier society

And this neglect has and will have horrible consequences for our country. Because of this public education disaster, America’s leaders, wittingly or unwittingly, are creating a two tier society. The top tier belongs to the well educated and affluent who have the means and the opportunity to educate their children, so that they will earn good degrees leading to great careers and well rewarded employment.

The bottom tier is for everybody else. The children of the poor and lower middle classes cannot afford private education. Higher quality charter schools may not be available in their areas. And so they are stuck with bad or failing schools where they will learn little or nothing.

Birth is destiny

And we should all be clear as to the implications of all this. In this super charged, hyper competitive knowledge economy, there is no chance to land a good job without a good or superior education.

Sadly, all this means that in America now “birth is destiny” –just like in many poor countries, with rigid barriers that prevent upper mobility. Indeed, in today’s America –the exceptional country once upon a time known as The Land of Opportunity— if you were born poor and live in a bad area, your chances of getting a good education –the essential tool to move up in life– are practically zero.

This being the case, you will spend your life in the bottom tier. Hard work alone will not allow you to climb the socio-economic ladder. Now, and even more so in the future, in order to make it, young people need increasingly sophisticated knowledge. If they do not acquire it while in school, the chances of getting it later on through other means are slim.




Type Two Diabetes Is Preventable, But Nobody Says It

by Paolo von Schirach –

WASHINGTON – I recently read a very well researched article on the growing cost of treating millions of diabetics in the United States. It appeared in a major national newspaper and it was written by a well-known public policy scholar. The writer  provided up to date data on the alarmingly large dimension of this disease and how much it costs to the affected individuals, insures and the US Government. The scholar in the end provided his thoughtful policy recommendations.

It is a preventable disease

All in all, a good, balanced piece. Except for one thing. In his article, the author started from the implicit premise that type two diabetes “just happened” in America. It seems that for some (unexplored and unexplained) reasons it came about and has now reached incredibly large proportions. Millions of Americans, including young people, are now its victims.  Now, according to the author, our problem as a society is how to pay for the monstrous and increasing costs of caring for millions of patients. Not a word –repeat, not a word– about the genesis of this explosion, even though it is well known.

Well, this approach to this US health care crisis is totally wrong. I repeat: totally wrong; because it fails to mention how type two diabetes came about and –most fundamentally—that type two diabetes is a preventable disease. Yes, preventable, and this means avoidable. Which is to say that the analysis included in the article is fatally flawed, because it starts from the false premise that this health care crisis just “happened”. The implicit assumption is that, as a nation, we have to accept this reality, and now going forward our job as a society is to figure out how to pay for its immense cost.

The author says: “We have an explosion of a disease that cost billions. Let’s discuss the best way to apportion the cost”. Wrong! A good analyst would ask a very different question:

“Why is it that we are doing nothing to prevent a preventable disease that has now gained monstrous dimensions, this way causing misery to millions of Americans, while burdening the health care systems with billions of dollars in therapies that could be completely avoided”?

Let me clarify.  The ballooning of diabetes in recent years is mostly about type two diabetes. (Type one diabetes is a different story. It has some genetic roots that make certain individuals more susceptible. But the explosion of diabetes in recent years in America is overwhelmingly about type two which has no genetic roots).

Unlike other health care scourges, this is not a conventional epidemic. Type two diabetes is not genetic, and it is not a communicable malady, carried by a virus or bacteria. You do not get type two diabetes because you have been in the proximity of someone who has it.

A consequence of bad life style

Type two diabetes is a pretty horrible chronic disease that manifests itself as a consequence of years of bad eating habits (too much sugar, too many carbohydrates), and bad lifestyle (no exercise).

Which is to say that if most Americans would embrace and sustain a healthy life style, (eat mostly lean proteins including fish, vegetables, fruits, salads, go to the gym 3 or 4 times a week, and keep a normal weight), the chances of developing type two diabetes are practically zero.

Just like that? Yes, just like that.

Again, type two diabetes is not genetic, and it is not an epidemic. This is a bad life style disease. The fact that millions of Americans get it and collectively end up spending billions of dollars to treat it does not change any of these facts. It simply means that millions of Americans, regrettably, embraced bad personal habits that caused them to develop type two diabetes while piling up skyrocketing medical costs.

That said, amazingly, almost no one (including the author mentioned above) points that this is a preventable disease while discussing the consequences of the massive increase of type two diabetes cases. And yet, these are well-known facts.

You realize what this means. If people had a chance to be properly educated about the critical importance of a good diet and exercise and consequently changed their eating and exercise habits in order to stay healthy, type two diabetes would practically disappear –with enormous health care cost savings, and immense quality of life gains for millions of diseased people.

It is preventable!

At least
some tell you the real story. The Harvard School of Public Health website explains
that:

“The good news is that prediabetes
and type two diabetes are largely preventable. About 9 in 10 cases in the U.S.
can be avoided by making lifestyle changes. These same changes can also lower
the chances of developing heart disease and some cancers. The key to prevention
can be boiled down to five words: Stay lean and stay active.”

Got that? At least 9 out of 10 cases are preventable. The secret? Five words: “Stay lean and stay active”. Yes, that’s all there is to it.

And it is also reversible!

And this is not the whole story. Type two diabetes is actually reversible. Not always. But in many, if not most cases you can get rid of it.

Here is what US News recently reported:

“It’s not impossible at all to
reverse diabetes,” says Dr. Peter Arvan, chief of the division of
metabolism, endocrinology and diabetes at the University of Michigan.
Certainly, though, experts are quick to point out that often what it takes to
do so, such as wholesale changes to completely alter the way one eats and
shifting one’s schedule to prioritize exercise, can be challenging to say the
least.”

“Sometimes diabetes remission is
achieved following bariatric weight loss surgery. But for the majority, it’s
intensive changes to a diet, such as consuming lots of fruits and veggies and
complex carbs and little sugar, and accompanying weight loss that seems to be a
core driver in lowering blood-sugar.”

“Of course there are a lot of
patients who have difficulty complying with those lifestyle changes,”
Arvan says. “It is not the case that reversing their diabetes is the one
and only thing that’s on that person’s mind all day long.” So the same
struggles people may have in properly controlling diabetes can dog even loftier
goals of achieving remission.”

It is imperative to change lifestyle

So, according to this eminent physician, the main obstacle to getting rid of this nasty disease is the willingness on the part of the patients to completely change their lifestyle. Difficult, perhaps. But not an impossible task, if the affected individuals are properly guided and counseled by nutritionists and doctors.

So, given the fact that we can both prevent and reverse this nasty disease, why is it that we do not have well-crafted public education campaigns aimed at explaining the critical value of good nutrition and regular exercise? Why are we not teaching “wellness” in America?

As a nation we certainly have the skills and the resources to do this. We did launch massive education campaigns when it came to raising awareness about the horrible health consequences of smoking.

No interest in promoting wellness

If we are into conspiracy theories, we could argue that not creating prevention programs focusing on wellness education aimed at the general public is in fact deliberate. Indeed, it is very much in the financial interest of the health care industry, (pharmaceutical companies, hospitals, and doctors), not to teach anybody about how to adopt a healthy nutrition program, while engaging in moderate physical activities.

How so? Well, if you think about it, this type two diabetes explosion is really a big money bonanza for the health care sector. If you are a pharmaceutical company that makes and sells insulin, (the medication prescribed to all diabetics), or if you are a physician who regularly monitors affected patients, type two diabetes is a veritable gold mine. For medical practitioners who are paid based on the number of treatments, there is nothing better than millions of chronically ill patients who need life time treatment. Which is to say that the entire US health care industry benefits financially from the bad habits of millions of sick Americans.

Save money, improve lives

Needless to say, drastically curtailing the incidence of type two diabetes cases through targeted wellness education campaigns would save America billions of dollars every year, while improving the quality of life for millions of chronically ill patients. But you do not see the headlines explaining any of this. in the absence of wellness programs, diabetics keep doing what they are told. They have to keep monitoring their blood sugar levels (yes, sell more of those monitoring devices!) and take more insulin.