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Andrew Tobias

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Andrew Tobias
Andrew Tobias

Money and Other Subjects

Year: 2001

Your Next Vacation

October 16, 2001February 20, 2017

But first:

Did some of you buy TIPS – Treasury Inflation-Protected Securities – at last week’s auction? These were first covered here May 12th and 15th last year, and I’ve mentioned them a few times since because they are, along with I-Bonds, about the safest investments in the world: guaranteed by the US Treasury, protected from inflation and, at least to a degree, from deflation.

At last week’s auction, the bonds maturing in 2032 were issued with a 3.375% coupon and each bond was sold not for $1,000, like most bonds, but for $983.14. So the $33.75 in interest each bond will pay works out to a rate of slightly more . . . 3.433%. And because each $983.14 bond will be redeemed for at least $1,000 in 30 years, that bumps the ‘yield to maturity’ even a teensy tiny fraction of a hair higher. But the real appeal of these is that their $1,000 face value – and the amount on which that 3.375% is calculated each year – will rise with inflation (or fall with deflation, but not below $1,000).

Let’s assume we average 3% inflation for the next 30 years. That $1,000 bond will then be redeemed for $2,430 instead of $1,000 . . . and the semi-annual interest payments you get will be based on each year’s higher principal. So in that final year, instead of getting $33.75 on each $1,000 bond, you’d be getting about $82 on each $2,430 bond.

All this is rotten in a taxable account, because the ‘accreted principal’ – namely, the inflation adjustment – is taxed as income even though you didn’t receive it in cash. But, in these nervous times, it doesn’t seem too bad at all inside the shelter of a retirement fund.

(For non-sheltered money, you might want to consider I-Bonds. Or buying shares in one of the mutual funds that specialize in inflation adjusted bonds – I think Vanguard has one – and that pay out the inflation adjustment in cash each year. You’d still have to pay tax, but at least it’s on something you actually got.)

If you’re 25, with $3,000, I wouldn’t bother with any of this.

But if you’re 55 or 65, or your folks are, this might be a place for a portion of your (or their) retirement money.

Now that the auction is over, you will probably have to pay a bit more to your broker to buy them in the secondary market. When I called to get a quote for you yesterday, my full-service broker offered them at $99.25. (Bond prices are quoted in ‘cents on the dollar,’ even though they are denominated in $1,000’s. At $99.25, each bond would cost you $992.50.)

It’s not that they had jumped nearly a dollar each, from $98.31 to $99.25. It’s that the firm was marking them up a about dollar – an extra $10 a bond. Had I been in the market to buy $1 million worth, this would have yielded my broker and his firm $5,000 each. I wasn’t in the market to buy $1 million worth, sadly, and you may not be either. But in any event, if you get the bonds for anything ‘under par’ – less than $1,000 each – I wouldn’t obsess too terribly over the spread your broker takes. Over 30 years, it won’t amount to much. (If you sell before maturity, you can expect your broker to lighten your proceeds by at least as much again, if not more.)

TIPS are no way to get rich, but a pretty good way, inside a retirement account, to hang on to what you have.

Oops – Time’s Up. Tomorrow: Your Next Vacation

You’ve Lost Weight!

October 15, 2001January 26, 2017

Peter Westre: ‘I have been on the Atkins diet for almost 2 years. I lost about a hundred pounds and feel fantastic. I had blood work done in April and my overall cholesterol was 149.’

Jack Ratcliff: ‘Another downside to the statin family of drugs is that in addition to blocking the production of cholesterol in your liver, they also inhibit the natural production of coenzyme Q10. CoQ10 is an essential substance for producing energy in your cells, especially your heart cells. If you decide to continue with Lipitor you should surely begin taking a CoQ10 supplement. Do consider that from 1989 to 1999, the number of congestive heart failure patients nearly doubled. — could statin drugs, which came into wide-spread use during this period, have played a part?

‘Dan Stone gave some great advice about trying diet and exercise for six months before taking any statin drug. He is also correct in suggesting that homocysteine may be just as dangerous as cholesterol. Happily, no risky drugs are needed to address elevated levels of homocysteine. It is due to a deficiency in the B complex vitamins, especially folic acid. In fact, numerous scientific studies have shown that folic acid is North America’s number-one vitamin deficiency so do yourself a favor and get on the B’s.

‘Will diet, exercise and supplements work? They surely did for me. I wrote you several months ago raving about my new Lo-Carb Diet. New tests I had in August showed my cholesterol down from 198 to 162 and give me confidence that I was correct to abandon my ten-year (!) low-fat diet. All I really had to do was substitute a lot of the sugar-laden foods with additional meats, fish, nuts and fresh fruits/veggies. I now eat eggs, which I had avoided like the plague. I work out 3 or 4 times weekly and take lots of supplements that I learned about in Dr. Robert Atkin’s Age-Defying Diet book. I enjoy my diet much more than the low-fat one. I also have to eat a little extra to avoid dropping below my ‘desirable’ weight range — some 20 pounds below my ten-year average weight. I am the first to admit, this low-carb diet, might not work so well for everyone. My doctor was skeptical when I first told him about it but now has to admit ‘it works for some people.”

Marc A. Armstrong, MD: ‘For what it’s worth, I agree with Doctor Stone.’

Emerson Schwartzkopf: ‘One of the marvels of human beings is that we can all be different. After her first diagnosis of heightened bad cholesterol and high blood pressure, my spouse increased her exercise and put both of us on a close-to-no-fat diet (3 grams a day, at times). After three months, she experienced virtually no change. My cholesterol and blood pressure, meanwhile, dropped from acceptable levels to incredibly healthy measurements, although I’m still classified as 25 pounds overweight. She then started on Liptor and blood-pressure medication with immediate and positive results. What works for some people doesn’t work for others, and folks like you and my spouse are healthier and happier now. Exercise and good diet are wise choices in any case, but it’s dangerous to assume that sensible habits fix everything.’

John Mandeville: ‘I lift weights 3 times a week (not free weights) and I do aerobics 6 days a week. I do the weights at 6 am for an hour at a time and the aerobics at 5 pm for an hour. I ride bikes (inside and outside), do stair steppers, and walk. I’m 66 yrs old and cholesterol is about 175 and pressure is 110/70. It is easy for me, because I like it. For those who just don’t like to exercise, it is a lot tougher to get the routine. However, it can be done. One has to stick with it for at least a year. Now if you want your heart to reallllllly feel better, try Habitat For Humanity. It won’t get you to Heaven, but it will give you a big ‘high’ every time you do it.’

☞ Six am? Six am?

Laura Schultz: ‘As a Pfizer shareholder, I was delighted to see you tout the wonders of Lipitor. As a reader concerned about your health, I was extremely disappointed. There is no such thing as a free lunch, or a free ride for that matter, so get out there and walk for your health.’

Tomorrow: Your Next Vacation

Second Opinions

October 12, 2001January 26, 2017

Georgia McGrath: ‘Andrew, shame on you! Get out there and go for a walk each day, and make a few semi-slavish dietary sacrifices – and you won’t need to take the Lipitor! (Did you read the fine print that came with it, about the possible side effects?)’

Jack Kouloheris: ‘I’m 41 and have been on Lipitor about 3 years now, mainly because of a family history of heart disease. I got the same amazing results. It’s Magic! The only downside is that you do have to have periodic liver function tests to make sure no damage is occurring. Then there was the famous stock price crash that happened to Bayer when their Baycol drug, in the same class as Lipitor (a statin), caused potentially deadly muscle damage and had to be withdrawn. Lipitor makes literally billions for Pfizer.’

Dan Stone: ‘I am an internist. The heart scan test is a worthwhile test, but useful only in the context of overall risk. In other words, the implication of your column that anyone with any degree of positivity on a scan would benefit from Lipitor is not correct. Cholesterol is only one risk factor for coronary artery disease. Others include smoking, hypertension, male sex, a family history of early heart disease and age. Homocysteine (a blood amino acid) probably plays an important role–perhaps as much as cholesterol–and others such as depression, “type A” personality, etc., likely do as well.

‘Lipitor does have side effects and the medications in its class have been out for all of about twelve years. Although a fabulous tool for treating coronary disease, its role in otherwise low risk persons with elevated cholesterol remains to be clarified. Your life expectancy is probably several fold greater than the time that these drugs have been available and Lipitor is one of the newest. You are looking at decades taking a drug for which long term data simply does not exist. Is that risky for an otherwise healthy person? The answer is pretty obvious.

‘You know enough about ‘if it’s too good to be true…’ to know that there is more to this issue than taking Lipitor and not worrying. At least six months of dietary therapy would be appropriate prior to considering a drug like Lipitor. After all, what’s six months when we’re talking about treating you for the rest of your life? Also, if you get a physiologic as opposed to an anatomic test (a treadmill), data shows that a normal study (if you achieve target heart rate) confers a five year mortality rate near zero due to cardiovascular causes. So you may not need to worry about a rogue twenty percent lesion in one vessel. The risks of it are probably very, very low if your other risk factors are controlled.

‘SO: Repeat after me, the health mantra equivalent to dollar cost averaging in no-load mutual funds: ‘diet and exercise, diet and exercise, diet and exercise…’ (Sorry.)’

Don’t Worry — Be Happy!

October 11, 2001February 20, 2017

Easy for me to say, I know. Bombs, anthrax, lord knows what else. But I would respectfully suggest that you spend no more than half an hour a day worrying, for three reasons:

  • Statistically, the chances that anything will happen to you are very small. Get on an airplane, for heaven’s sake. Visit New York or Hawaii or any other place you’ve always wanted to go. You’ll have a great time, snag a bargain, and in your own small way you’ll be defying the terrorists. Could something awful happen? Sure. But that’s true every time you get behind the wheel of your car. (Have you seen how people drive in Boston?) More than forty thousand people are killed in auto accidents each year. And you actually leave your house?
  • Worrying doesn’t help. Yes, you should do the basics – stock your home with the same kinds of things you should have had all along, in case of a hurricane or an earthquake, a flood or an ice storm.
  • It’s almost an obligation that we enjoy life. Not to do so dishonors all those who struggled and died these past two centuries so that we might. I don’t mean we should ignore what’s going on. We should be better citizens than ever, informing ourselves and joining in a civil discussion of how best to meet the challenges. But to be worried and unhappy all the time? Bad plan.

I would not, however, be complacent about the stock market. At the very least, look at your investments and consider whether they offer compelling fundamental value. If you have no idea how to evaluate fundamental value, consider whether you should be picking stocks at all, or turning the job over to, say, a value fund like one of those offered by Tweedy, Browne, or else an index fund (fully prepared to dollar-cost-average down, if and as the markets fall further).

Take Heart!

October 10, 2001March 25, 2012

Your faithful correspondent is up for just about anything healthy that involves no inconvenience or discomfort, and so when he found out that for $550 he could lie down fully clothed for 90 seconds and discover the state of his arteries – with no more radiation exposure than the equivalent of a single chest x-ray – out came his credit card. Three of his four arteries, the Ultra-Fast CT Scan color photos and report showed a few days later, were as clear as Colorado mountain air – spectacular, really – the kind of pipes used in the finest organ. The fourth, however, had some calcium build-up. This could conceivably have been related to the tuna fish salad sandwiches ‘on a buttered role with extra mayonnaise’ that decades ago were his staple.

‘There’s mayonnaise in the tuna salad,’ the counterman would explain. ‘I know,’ I would say, ‘but please – butter the roll, and then slap on extra mayonnaise.’

That fourth pipe wasn’t 90% blocked or anything, but my doctor showed how, oddly, it’s the 20% blockages that often surprise you the worst – he drew pictures of lipids escaping from plaque nodules and doing terrible things – and so we drew blood to check my cholesterol and he gave me a prescription for a little pill called Lipitor, at the lowest 10mg dosage, that you take each night before you go to sleep. I’d take it for a month, eat a bunch of salmon to get my good cholesterol up, and see what effect that had on my ‘bloods.’

(If this is vastly more than you ever cared to know about me, the point is that this is ultimately about you, and your loved ones, so hang on.)

For a long time my cholesterol had been around 210, but heavy on the HDLs – the good cholesterol you get from shrimp cocktail and olive oil, as opposed to the bad cholesterol you get from French fries and pig lard. But have you ever had Charles’s cooking? No? Who can resist? It is to die for. So there were my new scores, pre-Lipitor: 253 overall cholesterol, with 40 HDLs (the barely acceptable minimum) and 289 for the triglycerides, which I believe are a family of trolls who live in rocks and you want to have as few of them as possible.

A month later, I went for a second blood test. And now the results are in. With more salmon but (just to see what I could get away with) no slavish dietary sacrifices . . . the only big change being these little Lipitor tablets once a day . . . it seems that the overall cholesterol, 253 last month, has dropped to 144; the 40 HDLs, which you want high, have climbed to 48; and the 289 rock trolls are now 96.

I am astonished. And I am . . . heartened. And my point is simply this: even more practical than buying a gas mask or Cipro these days may be to check out your pipes (there can be blockage even if cholesterol is low) and your ‘bloods.’ Or, if you’re 26, to get your folks to do it. And then, if need be, toss a Lipitor down your throat each night.

Better living through chemistry.

Take a Tax Loss But Stay in the Game?

October 9, 2001February 20, 2017

Lanny Gilbert: ‘I have followed your common sense approach since about 1985 when I got a copy of [your book]. Well, I departed from that fundamental advice and put about $25,000 into two ‘hi-tech’ mutual funds in February 1999, just before the bubble broke. These two funds together are worth about $5000. So, should I try and ride this out, or just sell and take the tax loss and the lesson learned the hard way? All of my other investments are in much more conservative funds and index funds.’

☞ I would sell for the tax loss and put the $5,000 in a different hi-tech fund (or at least high-volatility fund, like American Century Growth) . . . or possibly even, if you can afford it, $10,000. If that $10,000 then drops to $2,500, say, sell for a loss and find another $10,000 to do the same. Sooner or later, the tech sector will bottom, and you’ll probably recoup much of what you lost – not because we will ever go back to the same crazy heights, which we will not in our lifetime, but because going 20% of the way back up, in this fanciful example, would give you an overall profit. (For the sake of the math, assume the funds you bought were selling for $1,000 a share and you bought 25 shares. They dropped 80% from $25,000 to $5,000, and then a further 75% in this example. You’ve put in $25,000, added $5,000, and then $7,500, for a total of $37,500 . . . less the tax benefit from switching among funds and taking $27,500 in losses. Now, years later, the $1,000 fund, which after the 80% drop was $200 a share, and after the subsequent 75% drop was $50 a share, has struggled 20% of the way back up from $50 to its one-time $1,000 peak, which puts it at $240. At $50, you were able to buy 200 shares with your $10,000, and now, at $240, you have $48,000 worth. Yes, you have a hefty taxable gain if you sell. But no one says you have to sell. And if you do, the gain will be lightly taxed as long-term.)

Note that doing this with mutual funds is less risky than doing it with individual stocks. It is not at all improbable that high-flying stock after high-flying stock might go all the way to zero. I have had several do this already. But it’s dramatically less likely the American Century Growth fund would ever go to zero.

George Hamlett: ‘Thanks for the paperboy site. For research, reference, newspapers and other stuff, here’s a gem that might have escaped your attention.’

Tomorrow: Take Heart!

I-Bonds, Idea, Iran, I Am that I Am

October 8, 2001January 26, 2017

Peter: ‘This past year I gave my 3-year-old nieces I-bonds as birthday gifts, with the idea that they could use them for College. However now that I have re-read the rules, it almost seems that only their parents can purchase them, and then apply them towards their child’s education. Can you clear this up for me, before I purchase more?’

☞ For I-bonds to be used to pay for college free of tax, the I-bond buyer MUST be one of the parents (and be at least 24), must hold the bonds personally (not gift them to the children) and must spend the money on their college educations while the children are still their dependents. On top of that, the tax benefit phases out if the parents’ income is too high. Instead of I-bonds, you might consider setting up 529 plans for your nieces. See savingforcollege.com.

Michael Joy: ‘I LOVE that idea [capturing bin Ladin, giving him a sex change operation, and returning him to live under Taliban rule as a woman]. If he thinks that’s the right way to treat women, let HIM live that way for a while! Would his new name be Osama bin Lady?’

Kevin Clark: ‘I don’t see the harm of admitting that America makes mistakes, as long as we’re not paralyzed by agonizing over things we can no longer change. One thing we all need to keep in mind, though, is that just because some action had bad consequences doesn’t necessarily mean that there was a ‘right answer’ that we missed. Take the Shah of Iran, for example. Maybe supporting him wasn’t a great option, but we’ll never know how the alternatives would have turned out. Maybe if we hadn’t supported him the Soviets would have conquered a path to the Gulf and the Cold War would have turned out differently. I’m not claiming that would have happened; my point is simply that we don’t and can’t know. Life is not a textbook exercise with the answer in the back. Currently it’s very unclear to me what the best option is with regard to the ‘moderate’ Arab states, e.g. Saudi Arabia. If we don’t support the existing governments then we’re an undependable ally (with all that implies for forming future relationships) and there’s no guarantee that replacement regimes will be any better. If we do support them then we’re to some degree accomplices in the repression of their own populations thereby fueling anti-American sentiment. Either choice will inspire decades of second guessing. Whatever we end up doing, I hope everyone keeps in mind all the things we could have done worse as well as those we could (with benefit of hindsight) have done better.’

Doug Simpkinson: ‘Tom Bolger writes: <<It’s the SAME God. They branch off at ‘the Second Coming of God.’ The Christians believe that the second coming was Jesus Christ (who was a Jew). The Muslims believe it was Mohammed. The Jews are still waiting.>> Muslims do not believe Mohammed was God, or the second coming of God. Mohammed was the last, greatest prophet. Muslims do, however, accept Jesus as a prophet.’

Brian: ‘But if we all share the same God and I pray to be protected from terrorists and the terrorists pray for success in their terrorism and they succeed in their terrorism, what rationalization shall I use to avoid concluding that God is on the side of the terrorists?’

Osama bin Laden — a Transsexual?

October 5, 2001February 20, 2017

My pal Alan Rogowsky suggests The Paper Boy web site. Did you know Miami has a Finnish newspaper? The Paper Boy looks like a good research tool.

And then Alan passed on this anonymous analysis that’s been ricocheting round the Net:

‘Killing Bin Laden will only create a martyr. Holding him prisoner will inspire his comrades to take hostages to demand his release. Therefore, I suggest we do neither. Let the Special Forces, Seals or whatever, covertly capture him, fly him to an undisclosed hospital and have surgeons quickly perform a complete sex change operation. Then we return her to Afghanistan to live as a woman under the Taliban.’

I like it.

Speaking of sex changes – or at least changes when it comes to sex – I just came back from the Empire State Pride Agenda dinner, 1200 snappily turned out gays and lesbians assembled to hear Governor Pataki and Mayor Giuliani express what by now appears to be their very genuine support for equal rights for gays and lesbians. Pataki has come a long way in six years; and Giuliani, as has been widely reported, has been living as the guest of a gay couple, long-time friends of his, since being kicked out of Gracie Mansion.

And suddenly there is an openly gay ambassador to Rumania. When did that happen? Just breezed through the Senate, apparently. Secretary of State Colin Powell swore in Ambassador Michael Guest on September 19 and acknowledged his partner, Alex Nevarez, who will be accompanying the Ambassador to Rumania, in the audience. If Jesse Helms is fuming, we haven’t heard about it. Good for the Bush administration. (You will recall that the first-ever openly gay American ambassador was James Hormel, whose posting to Luxemburg was nixed by the Republican Senate, and then effected anyway – to howls of fury – by President Clinton.)

Finally, as several of us have been advocating in this space ‘bombing them with butter’ at the same time as we do everything we can to destroy the terrorists (or spirit them off for sex changes), it was heartening to see the announcement today of very much that sort of approach – $320 million in aid for the Afghani people, at the same time as we pursue the terrorists with what one assumes will be deadly force. And the Bush administration has done a fine job of gathering support from around the globe, so this isn’t them against us, but, rather, them against virtually everybody. So far, so good.

Has all this turned me into a Dick Armey / Tom DeLay Republican? Or even a George W. / Dick Cheney Republican? No, no, no, no, no. Resoundingly not. Up until this crisis, it seemed to me they had done just about everything wrong. In many instances, terribly, perhaps even callously, wrong. Going forward, the plan to stimulate the economy by cutting the capital gains and corporate tax rates is equally misguided. (We could wisely have a zero percent rate on capital gains, if it were narrowly targeted only to purchases of newly issued stock and bonds, not trading profits. But that has not been proposed.)

But let’s give credit – enthusiastically – where it is due. And on the hugely important issue of the war on terrorism, as well as the tiny but meaningful issue of gay ambassadors, the Bush administration deserves our applause.

Fly Someplace, by God!

October 4, 2001January 26, 2017

PRICELINE’S COMPETITION

Eric E. Haas: ‘You mentioned recently using Priceline. I hope you didn’t book your flight through them. Because you can ALWAYS get a better deal with lesser restrictions from Hotwire.com. Here’s how it works: Like Priceline, you can’t choose time of day or airline — you must have that flexibility in your travel schedule. Priceline requires you to ‘guess’ what the lowest fair will be and commit to it in advance. If you guess too low, you are locked out from guessing again until one week later. If you guess too high, you pay too much. Hotwire just plain tells you the lowest price up front. And you don’t have to commit in advance. Once they tell you the price, you have 30 minutes to accept it. I’ve used hotwire several times. Most recently to fly from Grand Rapids, MI to Washington DC round trip for $103.’

☞ Or just visit Southwest – and then, if you have a favorite airline that flies to one of the cities Southwest serves, check to see whether they might not be matching these incredible fares. Also: Jet Blue. I haven’t used Priceline for airline tickets, only hotels. American takes such good care of me, I try to fly them whenever I can, using miles when the fare is too steep. But here’s a little twist on the part about having to wait a week to make another Priceline bid. First, if you haven’t tried it lately, you’ll see Priceline has added a neat little feature that shows you graphically your chances of having your bid accepted – I just bid $250 for a quick round-trip to Paris next week (no Saturday stay), and it gave me a 7% chance of being accepted – but showed that at $355 I had a 50% chance and at $455 I had an 80% chance. So if I had proceeded at $250, I would likely have been rejected. But the way not to have to wait a week to make another try is to alter something. Leave a day later or come back a day later, for example. Or even – if I read the fine print correctly – tell them, when you make your first request, that you will NOT accept a prop-jet . . . but then tell them that you WILL accept a prop-jet if you need to make a second request. I can’t imagine any carrier flies props to Paris these days, or on any other long flight, so it won’t have a material effect on your trip (of course, if you can’t stand the idea of flying short distances on a prop, that’s a different story) . . . but will meet the requirement for altering your request. Instead of waiting 7 days, you’ll be able to raise your bid just moments after having had your first one rejected.

GOD BLESS AMERICA

David wrote ‘The ending ‘salutation’ to the US Air Academy letter Friday – ‘God Bless America’ – is the part of this that bothers me the most. Whose God? The Christian one? The Jewish one? The Muslim one?’

To which you replied:

Bill Jones: ‘David, you may very well want to ‘leave God out of it.’ Fair enough. Feel free to leave Him out of your personal analysis of the situation. But, let’s respect Dr. Kern’s right to invoke His blessings if Dr. Kern chooses to do so. Freedom of religion does not mean freedom from religious points-of-view in public discussions.’

☞ Not to speak for David, but my guess is that he would say he very much defends Dr. Kern’s right to express his views . . . but that he, David, has every right to be troubled by them.

Arthur Kimes: ‘Dave is in luck. All three religions he mentioned share the SAME God. There may be strong disagreements on who is and isn’t a PROPHET but it’s the same God.’

Tom Bolger: ‘It’s the SAME God. At a rudimentary level, all three religions believe in the Old Testament. They branch off at ‘the Second Coming of God.’ The Christians believe that the second coming was Jesus Christ (who was a Jew). The Muslims believe it was Mohammed. The Jews are still waiting.’

☞ We are a very patient people.

San Francisco, Gaza and Afghanistan

October 3, 2001January 26, 2017

I just got back from a trip to San Francisco on American – as easy and comfortable a set of flights as I’ve ever taken. Ah, the luxury of an empty seat next to you! And good movies, too! Moulin Rouge and What Women Want, both of which I had missed. My four-star hotel via Priceline.com, meanwhile, was $79 a night, down from the regular $350. (And who’s to say I might not have had my bid accepted at $59?) No check-in lines and little wait for room service: 32% occupancy.

Book a flight. Have some fun. It doesn’t get much better than this.

Thanks to Pris Siskin for pointing me to this Chicago Sun-Times column. (That’s right: September 9th – before the attacks.) To wit:

Palestinians: Israel Simply is Not Yours
September 9, 2001
BY NEIL STEINBERG SUN-TIMES COLUMNIST

Why does the United States control immigration from Mexico? The answer is simple. As much as the United States is a melting pot of races and cultures, it does have a certain makeup, a comfortable balance. The Latino population is 12 percent and growing. Should the floodgates open and the nation suddenly find itself 40 or 50 percent Latino, well, it would be a different sort of place. Maybe better, maybe worse–I won’t enter into that. But I think it is fairly uncontroversial to say that the United States tries to keep change at a certain crawling pace. All countries do this. The Australians turn away a ship filled with Afghan refugees; Germans foam about the Turks in their midst. The Japanese consider descendants of Koreans who have lived in their country 100 years to be Koreans still.

So universal is this idea of keeping Our Side from being too richly seeded with “Their Side” that it must echo some deep chord of human nature. No doubt a throwback to the 100,000 years or so when we traveled in small tribes and slept in big, smelly piles for warmth at night.

Given the basic, in-your-boneness of this desire to maintain the group, it would be almost funny–if it weren’t so tragic–to see the Palestinians argue that Israel’s attempts to preserve its own identity as a country and keep its people from being blown apart in public places as not only racism, but a particularly loathsome form of racism.

To return to the comparison with Mexicans, a number of Americans harbor antipathy toward Mexicans–they want those borders sealed tight. It’s a mystery to me. As far as I can tell, the central crimes held against Mexicans once they get here seem to consist largely of working hard at low-paying jobs and tending to speak a language not our own.

Now, imagine the reaction if, in addition to these transgressions, Mexicans also lobbied for open borders by every so often showing up unannounced at local malls wrapped in dynamite and nails and blowing themselves up in crowds of shoppers. We’d go berserk! We’d have a big wall along the Rio Grande so high it would put the Great Wall of China to shame. Our racists and haters–who are snarling and straining at their leashes on the best of days–would be liberated to run the countryside.

Palestinians reading this will no doubt point out that, unlike Mexicans in the United States, the West Bank and Gaza (and no doubt, Jerusalem and the rest of Israel) are their land. Being a sympathetic sort, I can appreciate the power of that argument–it must be very vexing to spend your life crouching in a blazing sandy nowhere, convinced that some usurper is relaxing in your olive garden.

The problem with the Palestinian logic is that it isn’t true. It isn’t their land–not anymore. Israel has it, and you can complain all you want about the injustices of history, but that doesn’t change a thing. The United States got hold of Texas in a manner not nearly so fair and open as the creation of Israel, yet if Mexicans started to blow themselves up at Northbrook Court, trying to get Texas back, they wouldn’t make nearly the progress that the Palestinians made before their hunger to have absolutely every inch of Israel undid them.

Before the West Bank was Israel’s, remember, it was Jordan’s. Jordan had it for years. They didn’t rush to make it into a Palestinian homeland. The only reason Israel got hold of it was because, in 1967, the Arabs tried, for the third time in 20 years, to destroy Israel. The Israeli Army, as per tradition, kicked their collective butts. It took Gaza and the West Bank and Sinai and would have rolled into Cairo and done the Hora around the pyramids, but with an eye toward future relations, pulled up short.

The Egyptians played nice, so they got Sinai back. The Palestinians would have gotten a country already, with stamps and coins and a code of maritime law, had they been able to forget the fact that what they really want is all the Jews in Israel dead and their heads placed on spikes all along the border.

You have to stand in awe of a hatred so hard and bitter you’d send your children out to blow themselves up, just to give the hatred its daily exercise.

I find it puzzling, though I try to ask myself how I’d feel if my grandfather fled the country where his family had dwelled for hundreds of years, leaving his land and possessions to be claimed by others. Then I remember, oh yeah, my grandfather did flee the country where his family had dwelled for hundreds of years: Poland. He fled, and those who stayed were slaughtered, every man, woman and child.

And you know what? I don’t want the family farm in Bialystok back. I don’t hate the Poles at all–heck, I consider myself half Polish. The Palestinians, who are scoring points borrowing a page from the Anti-Defamation League playbook for manipulating publicity, could also learn something from Jews when it comes to hatred. Jews have been done wrong all over the place. (I know Palestinians believe the Holocaust never happened, but we’re fairly convinced. Nobody from the German or Polish side of the family shows up at reunions.) Despite this, we are not overwhelmed by hatred, because we know that it doesn’t get you anywhere. We’ve learned a secret — life is precious and short, and hatred only consumes the haters, sometimes literally, in a deafening flash.

And I know I’m swamping you, but if you have time, here’s a letter from a West Point grad with extensive experience in Afghanistan, to his classmates. Have you already seen it?

Dear Classmates:

Many of you are probably not aware that I was one of the last American citizens to have spent a great deal of time in Afghanistan. I was first there in 1993 providing relief and assistance to refugees along the Tajik border and in this capacity have traveled all along the border region between the two countries.

In 1998 and 1999 I was the Deputy Program Manager for the UN’s mine action program in Afghanistan. This program is the largest civilian employer in the country with over 5,000 persons clearing mines and UXO. In this later capacity, I was somewhat ironically engaged in a “Holy War” as decreed by the Taliban, against the evil of land mines, and by a special proclamation of Mullah Omar, all those who might have died in this effort were considered to be “martyrs” even an “infidel” like myself.

The mine action program is the most respected relief effort in the country and because of this I had the opportunity to travel extensively, without too much interference or restriction. I still have extensive contacts in the area and among the Afghan community and read a great deal on the subject.

I had wanted to write earlier and share some of my perspectives, but quite frankly I have been a bit too popular in DC this past week and have not had time. Dr. Tony Kern’s comments were excellent and I would like to use them as a basis for sharing some observations.

First, he is absolutely correct. This war is about will, resolve and character. I want to touch on that later, but first I want to share some comments about our “enemy.”

Our enemy is not the people of Afghanistan. The country is devastated beyond what most of us can imagine. The vast majority of the people live day-to-day, hand to mouth in abject conditions of poverty, misery and deprivation. Less than 30% of the men are literate, the women even less. The country is exhausted, and desperately wants something like peace. They know very little of the world at large, and have no access to information or knowledge that would counter what they are being told by the Taliban. They have nothing left, nothing that is except for their pride.

Who is our enemy? Well, our enemy is a group of non-Afghans, often referred to by the Afghans as “Arabs” and a fanatical group of religious leaders and their military cohort, the Taliban. The non-Afghan contingent came from all over the Islamic world to fight in the war against the Russians. Many came using a covert network created with assistance by our own government. OBL (as Osama bin Laden was referred to by us in the country at the time) restored this network to bring in more fighters, this time to support the Taliban in their civil war against the former Mujehdeen. Over time this military support along with financial support has allowed OBL and his “Arabs” to co-opt significant government activities and leaders. OBL is the “inspector general” of Taliban armed forces, his bodyguards protect senior Taliban leaders and he has built a system of deep bunkers for the Taliban, which were designed to withstand cruise missile strikes (uhm, where did he learn to do that?). His forces basically rule the southern city of Kandahar. This high-profile presence of OBL and his “Arabs” has, in the last 2 years or so, started to generate a great deal of resentment on the part of the local Afghans. At the same time the legitimacy of the Taliban regime has started to decrease as it has failed to end the war, as local humanitarian conditions have worsened and as “cultural” restrictions have become even harsher. It is my assessment that most Afghans no longer support the Taliban. Indeed the Taliban have recently had a very difficult time getting recruits for their forces and have had to rely more and more on non-Afghans, either from Pushtun tribes in Pakistan or from OBL. OBL and the Taliban, absent any US action were probably on their way to sharing the same fate that all other outsiders and outside doctrines have experienced in Afghanistan–defeat and dismemberment.

During the Afghan war with the Soviets much attention was paid to the martial prowess of the Afghans. We were all at West Point at the time and most of us had high-minded idealistic thoughts about how we would all want to go help the brave “freedom fighters” in their struggle against the Soviets. Those concepts were naive to the extreme. The Afghans, while never conquered as a nation, are not invincible in battle. A “good” Afghan battle is one that makes a lot of noise and light. Basic military skills are rudimentary and clouded by cultural constraints that no matter what, a warrior should never lose his honor. Indeed, firing from the prone is considered distasteful (but still done). Traditionally, the Afghan order of battle is very feudal in nature, with fighters owing allegiance to a “commander” and this person owing allegiance upwards and so on and so on. Often such allegiance is secured by payment. And while the Taliban forces have changed this somewhat, many of the units in the Taliban army are there because they are being paid to be there. All such groups have very strong loyalties along ethnic and tribal lines. Again, the concept of having a place of “honor” and “respect” is of paramount importance and blood feuds between families and tribes can last for generations over a perceived or actual slight.

That is one reason why there were 7 groups of Mujehdeen fighting the Russians. It is a very difficult task to form and keep united a large bunch of Afghans into a military formation. The “real” stories that have come out of the war against the Soviets are very enlightening and a lot different from our fantastic visions as cadets. When the first batch of Stingers came in and were given to one Mujehdeen group, another group, supposedly on the same side, attacked the first group and stole the Stingers, not so much because they wanted to use them, but because having them was a matter of prestige. Many larger coordinated attacks that advisers tried to conduct failed when all the various Afghan fighting groups would give up their assigned tasks (such as blocking or overwatch) and instead would join the assault group in order to seek glory. In comparison to Vietnam, the intensity of combat and the rate of fatalities were lower for all involved.

As you can tell from above, it is my assessment that these guys are not THAT good in a purely military sense and the “Arabs” probably even less so than the Afghans. So why is it that they have never been conquered? It goes back to Dr. Kern’s point about will. During their history the only events that have managed to form any semblance of unity among the Afghans, is the desire to fight foreign invaders. And in doing this the Afghans have been fanatical. The Afghans’ greatest military strength is the ability to endure hardships that would, in all probability, kill most Americans and enervate the resolve of all but the most elite military units. The physical difficulties of fighting in Afghanistan, the terrain, the weather and the harshness are all weapons that our enemies will use to their advantage and use well. (NOTE: For you military planner types and armchair generals–around November 1st most road movement is impossible, in part because all the roads used by the Russians have been destroyed and air movement will be problematic at best.) Also, those fighting us are not afraid to fight. OBL and others do not think the US has the will or the stomach for a fight. Indeed after the absolutely inane missile strikes of 1998, the overwhelming consensus was that we were cowards, who would not risk one life in face to face combat. Rather than demonstrating our might and acting as a deterrent, that action and others of the not so recent past, have reinforced the perception that the US does not have any “will” and that we are morally and spiritually corrupt.

Our challenge is to play to the weaknesses of our enemy, notably their propensity for internal struggles, the distrust between the extremists/Arabs and the majority of Afghans, their limited ability to fight coordinated battles and their lack of external support. More importantly though is that we have to take steps not to play to their strengths, which would be to unite the entire population against us by increasing their suffering or killing innocents, to get bogged down trying to hold terrain, or to get into a battle of attrition chasing up and down mountain valleys.

I have been asked how I would fight the war. This is a big question and well beyond my pay grade or expertise. And while I do not want to second guess current plans or start an academic debate, I would share the following from what I know about Afghanistan and the Afghans.

First, I would give the Northern Alliance a big wad of cash so that they can buy off a chunk of the Taliban army before winter.

Second, also with this cash I would pay some guys to kill some of the Taliban leadership making it look like an inside job to spread distrust and build on existing discord.

Third I would support the Northern alliance with military assets, but not take it over or adopt so high a profile as to undermine its legitimacy in the eyes of most Afghans.

Fourth, would be to give massive amounts of humanitarian aid and assistance to the Afghans in Pakistan in order to demonstrate our goodwill and to give these guys a reason to live rather than the choice between dying of starvation or dying fighting the “infidel.”

Fifth, start a series of public works projects in areas of the country not under Taliban control (these are much more than the press reports), again to demonstrate goodwill and that improvements come with peace.

Sixth, I would consider vary carefully putting any female service members into Afghanistan proper, sorry to the females of our class, but within that culture a man who allows a women to fight for him has zero respect, and we will need respect to gain the cooperation of Afghan allies. No Afghan will work with a man who fights with women.

I would hold off from doing anything too dramatic in the near term, keeping a low level of covert action and pressure up over the winter, allowing this pressure to force open the fission’s around the Taliban that were already developing. Expect that they will quickly turn on themselves and on OBL. We can pick up the pieces next summer, or the summer after. When we do “pickup” the pieces I would make sure that we do so on the ground, “man to man.”

While I would never want to advocate American casualties, it is essential that we communicate to OBL and all others watching that we can and will “engage and destroy the enemy in close combat.” As mentioned above, we should not try to gain or hold terrain, but Infantry operations against the enemy are essential. There can be no excuses after the defeat or lingering doubts in the minds of our enemies regarding American resolve and nothing, nothing will communicate this except for ground combat. And once this is all over, unlike in 1989, the US must provide continued long-term economic assistance to rebuild the country.

While I have written too much already, I think it is also important to share a few things on the subject of brutality. Our opponents will not abide by the Geneva conventions. There will be no prisoners unless there is a chance that they can be ransomed or made part of a local prisoner exchange.

During the war with the Soviets, videotapes were made of communist prisoners having their throats slit. Indeed, there did exist a “trade” in prisoners so that souvenir videos could be made by outsiders to take home with them. This practice has spread to the Philippines, Bosnia and Chechnya were similar videos are being made today and can be found on the web for those so inclined. We can expect our soldiers to be treated the same way. Sometime during this war I expect that we will see videos of US prisoners having their heads cut off. Our enemies will do this not only to demonstrate their “strength” to their followers, but also to cause us to overreact, to seek wholesale revenge against civilian populations and to turn this into the world wide religious war that they desperately want. This will be a test of our will and of our character. (For further collaboration of this type of activity please read Kipling.)

This will not be a pretty war; it will be a war of wills, of resolve and somewhat conversely of compassion and of a character. Towards our enemies, we must show a level of ruthlessness that has not been part of our military character for a long time. But to those who are not our enemies we must show a level of compassion probably unheard of during war. We should do this not for humanitarian reasons, even though there are many, but for shrewd military logic.

For anyone who is still reading this way to long note, thanks for your patience. I will try to answer any questions that may arise in a more concise manner.

Thanks, Richard Kidd

Tomorrow: Something – Anything! — Short

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