“Although the United States is likely to remain the single most powerful actor, the United States’ relative strength — even in the military realm — will decline and U.S. leverage will become more constrained,” says the report, which is the fourth in a series from the Intelligence Council.

Obviously, I don’t give the Intelligence Coucil a lot of weight, but I do believe that they’re on to something, noting that the the world will continue shrinking and natural resources will become increasingly scarce in the years to come. Their argument that the world is in the midst of an unprecedented “transfer of global weath and power” from west to east is sound and as we continue to transfer manufacturing, mining, and intelligence labor to other countries the United States will simply be a military force and holder of other people’s money.  It’s hard not to understand or see the logic in what we’re saying, and the reasons behind it, from this chair, are quite obvious.

Every other country in the world is working to improve their infrastructure and the education of their workforce.  The United States has been focused on increasing the size and influence of its military and banking systems while reducing infrastructure and education.  At the same time, the United States has focused its military to protect other countries and lost sight of the battles that should matter most to the world as a whole.  India and China, looking to become the next world super-powers are also the biggest polluters with the least amount of concern for our environment.  The American military and leveraged United Nations should have those environmental impact front and center, requiring China and India to make equal investments in protecting the environment as they are to spoiling it.

While all this is happening, and other countries continue to grow, they also become challengers for the earth’s limited resources (oil, oxygen, water, food, etc.).  The United States continues financial dependence on the rest of the world will create bidding wars that the US can’t win, resulting in Americans being unable to get or afford the most precious of earth’s resources.

Unfortunately, I don’t think anyone has an answer, but whatever it is, I can assure you that it starts at home.  The United States will have to consider reducing its protection of the world as it looks to protect itself.  We will have to continue investing in infrastructure (generating jobs and wealth) and education, which will enable us to remain competitive in the pharmaceutical, technical and energy sectors.  And, finally, we will have to protect our financial resources.  Consider letting foreign investors lose money (as in the case of AIG) and not bailout other countries at the cost of additional debt to America.  Just my two cents.

Ranter

After losing $320 million last fiscal year, and filing Chapter 11, Circuit City is closing 155+ stores in a last ditch effort to survive. Will it be enough? Doubtful.

It is very unfortunate that some companies have been unable to change and keep-up in today’s ever changing marketplace, and Circuit City is a prime example.  Once a leader in the consumer electronics market they have recently fallen well behind their closest competitor, Best Buy.  Today, citing concerns about their future, Circuit City files for Chapter 11 bankruptcy protection, which, in theory, would allow them to coninue operations through the peak holiday season.

What’s not written out in their filing are the changes that they’re going to make that might enable their future success.  The company does not appear ready to change, and without a much needed 180 degrees change from what they’re doing today it’s unlikely that they will last through the holiday season, let alone through 200.  So here’s the burn…

Circuit City would have you believe that they are going to come out of this bankruptcy protection in early 2009 – as though this holiday season alone will save them.  The reality is quite a bit more complex, because it’s already obvious everywhere you look that this holiday season is going to be quite dark.  The consumer is done spending the big dollars for a while and that’s going to seriously impact merchants like Circuit City.  What’s worse is that Circuit City doesn’t have the reputation that it used to, which means that just having a local store may not be enough any more.

That’s right – I said it – Circuit City has a very poor reputation and these days its quite deserved.  The quality of service that you get from Circuit City is far below even the worst retail merchants out there and even the managers seem apathetic to their customers and employees.  Why would any consumer choose that over what they can get from Costco, Best Buy or even Sears?  They wouldn’t and in recent years Circuit CIty has paid the price.

My belief – it’s only a matter of time, so avoid those extended warranties and be very careful what you hope for if you need long-term service on any product you buy.

Ranter