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Politics : Politics for Pros- moderated

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From: Bearcatbob3/7/2009 8:53:48 AM
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Unsteady State Systems:

In engineering we learned to model unsteady state systems as the underwent change. (A steady state system is one in which all parameters remain constant). To model a changing system it is necessary to know the "time constant - tau" of the system. Basically the bigger the system the longer the time constant. In simple terms it is the concept that you cannot stop a train on a dime or quickly turn a battleship.

Our nation is clearly entering a period of substantial change. Whether for better or worse - my issue is to address the transition period. For a nation and economy the size of the US the time constant is huge. That means the time to get from the current status to the changed status will be substantial. If the change is to be done well it must be planned and the impacts understood and managed during the change period.

For instance - last week the health care stocks were trashed. Why - because the transition period is undefined. Investors look at the status quo and see a train wreck step function change ( step function - ie and abrupt change in inputs - radical regulation change - flooring the gas pedal etc).

What is completely missing in the Obama Administration is the management of transition. We have a demagogue full of his victory postulating one step function change after another - Cap and Trade, Card Check, Health Care. On health care I give him credit on saying all will be heard - but it MUST BE DONE THIS YEAR!

So - what we have is a huge economic uncertainty. We have a bad situation being made worse by uncertainty. This uncertainty is being reflected in the market. Obama has taken a bad situation and HAS made it worse with uncertainty.

Somehow the Obama administration has to quit campaigning and govern. Governing means managing change and communicating transition.

Yes - I am one hugely critical of this administration. The president is using fear and crisis to implement step function change. He is not using thoughtful reason to manage change and change transition.

Yes - I see Obama as the worst type of politician - a fear mongering demagogue with no concept of the impact of his words. We are in a very dangerous place.

Bob
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