Category: Soapbox

The Emperor‘s Clothes

Posted on by Pete Schloss

I recently read a brief essay by an apologist for our President. He argued that people were only losing “built up equity” in their investments and not “actual money” in the rapid downturn of the markets. It got me to thinking:

We have assets in which we have no expectation of growth. We accept that they “depreciate“. Cars, furniture, and all sorts of stuff. Occasionally, one of these assets becomes a collectible, and the value can actually rise. Art, a rare coin, or an antique automobile. If that asset is lost, destroyed, or stolen, the asset’s owner is deemed to have lost the increased value, and not just the original investment. Similarly, there are assets we acquire that we are hopeful will increase in value. A home is the most common example. Again, if the asset is destroyed, it is the increased value and not the original investment that is deemed the lost value. Insurance is typically purchased to cover the actual value of these assets and not just the original investment.

With regard to financial investments, FDIC insurance covers the original deposit AND accumulated interest in most bank and savings accounts, up to a certain limit. Rating agencies (like Standard and Poor) publicly evaluate bonds for risk to principal AND interest, from investment grade to “junk”. Publicly traded stocks and mutual funds are required to publish information to enable investors to evaluate the risk to principal AND gain.

It is a fiction to distinguish loss as somehow being less painful if it is interest, gain, or “equity”. If the loss was within the ambit of known or knowable risk then the investor is presumed to have accepted that risk. These can include natural disasters, general economic downturns, bankruptcy, and even war. The investor may also rely upon the factors that weigh in favor of the assumption of the risk. Such factors may include the stability of the company, the stability of the government, its leaders, and its institutions.

As the President said within the last 24 hours, he is being guided by his “gut feelings” and “instincts“. He is not being guided by experts or government institutions. That one man can by his whims influence markets in such a dramatic way is not a typical risk assumed by investors. The shock and distress that the President’s “instinct“ driven decisions are causing are not limited to the unsophisticated investor, but extend to the most sophisticated of investors.

People are rightly fearful that the institutions they have relied on in making their money decisions are failing them. Yes, we see that the Emperor has no clothes. We also see that the Emperor doesn’t care.

Peace Everyone. Pete

Both Sides of the Island

Posted on by Pete Schloss

“…Women and children dying in the streets
And we’re still at it in our own place
Still trying to reach the future through the past
Still trying to carve tomorrow from a tombstone…

…Up here we sacrifice our children
To feed the worn-out dreams of yesterday
And teach them dying will lead us into glory…”

(From The Island, a song by Paul Brady)

In 2018, Christine and I were in Belfast, Northern Ireland. We had heard about the (unadvertised) “Black Taxi tours“. We were able to book one through the clerk at our small hotel.

Arranging for the tour felt a bit “cloak and dagger”. The cab driver would be first name only and no fee was quoted, “Pay at the end what you think it was worth”. Cash only.

At the arranged time, a taxicab (not black) pulled up to the front of the hotel. The driver was pleasant, extending his hand in greeting, and ushered us into the rear of the cab. He provided us with his first name, but no other details.

For the better part of the afternoon, he drove us to many of the locations and sites relevant to “The Troubles”, along with a knowledgeable running commentary.

His narrative was matter of fact and dispassionate. This was in stark contrast to the subject matter which included terrorist bombings, assassinations and judicially sanctioned executions.

Earlier in our trip: The spot at Kilmainham Gaol in Dublin where most of the leaders of the 1916 Easter Rebellion were executed by firing squad.

One of the efforts to whitewash the protest murals.

At the end of the tour we were emotionally drained. As I peeled off British Pound notes for payment he asked us, “Do you think that my loyalties rest with the Republic (of Ireland) or the Unionists (United Kingdom)?” Christine and I looked at each other and said that we didn’t know. “Then I have done my job.” He accepted our payment with gratitude and left.

Reflecting on the experience I am struck by the cab driver’s ability to express the facts of the cataclysm known as “The Troubles”, shorn of personal opinion and emotion.

I wonder if I could do the same for a foreign visitor in describing the current situation in our country.

Peace Everyone. Pete

PS. Upon further reflection I believe that on some issues I could follow the example of the cab driver. I believe that I could set out an even-handed narrative of the competing arguments regarding: Immigration, Border Security, Health Care, Wealth Distribution, Abortion, Education, the Federal Debt… to name a few. Not because I believe in the rightness of both sides, but because I have listened to both sides. Unlike the “Black Cab” driver, on some issues I feel morally bound not to allow an expression of neutrality be misunderstood as acceptance of that which I do not believe.

The images are of huge murals, a form of protest in Belfast.

Christine standing in front of the mural, “The Woman’s Quilt

“The Island” a song about “The Troubles” by Paul Brady

The Winds of Change

Posted on by Pete Schloss

 

Recently, Christine and I were travelling across Kansas on Interstate Highway 70. It is a mind-numbing drive that once had a recently arrived German exchange student remarking to me, “So, when does this Kansas end?”

Along the way I became aware of the forest of towering electric wind generators extending to the horizon in all directions.

A rare sight just a decade or two ago, now they extend for miles, slowly turning to the prevailing winds. I say “slowly”, but that is an illusion. The three blades on each turbine were spinning about 15 revolutions per minute. Given that these land-based towers are typically 260 feet high, and the blades 130 feet in length (for a total sweeping diameter of 260 feet), the blade tips are moving at approximately 140 miles per hour (224 kph)!

To appreciate the relative scale, that is our car and camping trailer to the left of the wind generator blade.

There was a time that these were a focus of the “culture wars” in the United States. Like so many “dog whistles” issues, media attention moves on and the susceptible population turns its attention elsewhere, forgetting the indignation that was once so directed. We are species with short attention spans.

Each tower generates approximately 1.5 megawatts, enough to power 150 average American homes. While the cost of fossil fuel generated electricity has remained constant, wind (and solar) generated electricity is now not only less expensive but becoming cheaper year-after-year as the economics and efficiencies of scale have their effect.

20 years ago, wind towers were a relatively rare sight in the United States. In 2000 they generated only 2.5 GW (gigawatts) of power. By 2020 US generation capacity grew to 113.4 GW and is projected to nearly double to 224 GW by 2030. Wind power eclipsed nuclear power for the first time in 2021, and coal powered generation in 2022. Coal generated power has declined 18% from 2023 to 2025 and is projected to continue this downward trend. It’s just a predictable function of economics.

At the beginning of the 20th Century automobiles were a curiosity with many believing that they could never replace the reliable horse and buggy. “They don’t start in the winter… Muddy roads are impassible to them… There are no places to buy fuel… They break down and are difficult to maintain… They are expensive…” All true in the earliest days of the automobile, but change was inevitable, just as it is in the marketplace of electric power generation.

Peace Everyone. Pete. Kansas City. February 26. 2025.

PS. The information obtained for this post came in part from US Government sources. A couple of additional interesting “tidbits”: Each wind generator has an average life expectancy of 20 years. The towers cause fewer avian deaths than fossil fuel fired powerplants, taking pollution into account.

Choosing Against Our Interests

Posted on by Pete Schloss

(I took the above picture during a 2018 protest in Santiago Chili. The government was using “non-lethal” bullets to suppress protests. However, the ammunition permanently blinded hundreds of people. This demonstration was led by very brave women.)

I’ve survived. The bunker door is mostly open now and peering out I see that life hasn’t really changed that much. I’ve tried watching the news again, but only local and in small bits. It will be a while before I again find Steven Colbert’s political commentary funny. My vote for President was among the 48.1% cast, not the “other” 50.1%.

First an acknowledgement that democracy works. Nearly 150 million Americans set aside their daily routines to make their voices heard. Second, gratitude to the thousands of nameless election workers that made voting possible.

The margin of victory was less than 3 million votes. That is approximately the population of Chicago. Once again, the Electoral College result, 312 to 226, discloses how disconnected this historic dinosaur is from the popular vote. I find further criticism with the length of United States political campaigns, the unconscionable amount of money spent on the campaigns, and the disproportionate influence given to wealth in selecting representation in this country. Those are perhaps subjects for posts at another time.

Another 2018 protest I was present for in Chili. This one focused on economic condition.

My self-imposed post-election introspection has given me an opportunity to seek understanding and peace with the outcome. During the weeks leading up to the election, Christine and I often found ourselves wondering, “How can they consider voting so contrary to their own interests!?!”

The answer is that I was applying my own understanding of what was important, not theirs. Perhaps their interests included elevating the voice of a contrarian. Shaking up a system that hasn’t worked for them. Expressing frustration with a government that to them favors “foreigners” over “Americans”. Declaring dissatisfaction with rising prices and tailing wages. And believing promises (real or not) that were addressed to them.

Just as I looked upon them in the pre-election weeks as being voters against their own interests, it occurs to me that in post-election America there may be 48.1 percent of the electorate now wishing against their own interests, just to say, “I told you so.”

100 percent of America should wish for a strong economy. An efficient and fair system of immigration. Price stability and wages that provide the possibility of upward mobility. Safe streets and safe schools. An efficient justice system that fairly punishes the guilty and quickly frees the innocent. Stability in the world order… All of this and more without regard for which candidate was successful in the election.

I have friends who count themselves among the 50.1%. When they voice complaints, criticisms, and worse about the 48.1%, I know that they are not thinking of me. I know that they would not apply those assertions to me personally. Conversely, as a friend I would never apply to them the complaints, criticisms, and worse often spoken about the 50.1% by those of the 48.1%.

Putting the face of a friend on “them” is one road to an understanding that “they” and “we” are often “us”.

Peace Everyone. Pete

PS. In 1995 we hosted 16-year-old Svetlana as a year-long exchange student from Slovakia. She remains in our hearts a daughter to us. In 1998 we arranged a reunion of our exchange students in Prague. Christine and I offered to pay the room and board of any of the students who could join us for the 5 days. What they did not know was that I had booked 3 large prison cells in the former Communist prison. $13 per person, per night, breakfast included!

Svetlana, along with her older brother Alex and 8 other students joined us. Her parents and little brother were there as was the mother of another of the students. They opted for more conventional (comfortable) lodgings.

In 2018 we enjoyed a wonderful visit with Svetla and her husband and children in Bratislava, Slovakia.

Yesterday, we spent a delightful afternoon here in Kansas City with Alex, his 12-year-old daughter Ellen, and his friend Dasha. Alex is an attorney practicing in Prague, the Czech Republic. He was also an exchange student in Kansas City, spending 1993 with the Harper family in North Kansas City. Alex came back for a visit to attend his host-brother’s wedding.

Earlier this year, our 1992 German exchange student son Andre and his family visited us.

They now reside in Washington DC where Andre is stationed at the German Embassy as an economist. We hope to have them join us next February in Colorado.

Later in 2025 we will be in Norway for a month. Our plans include traveling to Svalbard Island, the northernmost civilian settlement in the world, located about 650 miles from the North Pole. While in Oslo we will visit our Norwegian exchange student daughter (1994), Hege and her family.

Christine is fond of saying that a country is “foreign” until it has a face. These people and many others dear to us, are faces that have made the world smaller, more personal, and less foreign. We would do well within our country to do the same between the 48.1% and 50.1%

 

Let it be Said

Posted on by Pete Schloss

 

My parents loved each other, and they loved their children. Christine’s parents loved each other and their children. But early in our relationship we shared with each other that neither of us heard those words, “I love you…” spoken by our parents.

Perhaps the omissions were cultural or generational, but as we prepared to bring new lives into the world, we consciously inventoried the things we wished to model for our children from our childhoods. We also wanted to identify the things we wished not to pass along to them, and those things we wished to initiate as new traditions for our next generation.

Among those things we valued from our upbringings: A strong Work Ethic. Honesty. The Value of Education. Thrift.

Among those things we wished to focus on better presenting to our children: Inclusiveness. Kindness. Avoidance of Judgement. Giving and expecting Respect when earned. Giving praise for Accomplishment. Acknowledging Fault for a transgression and Giving Apology to those injured. Avoiding drawing Comparisons to another person. And expressing our Love and Affection openly.

It is gratifying to see our children raising their own children, our grandchildren, with the same conscious intention and values. Nowhere is this more apparent than in the expression of the simple words, “I love you”.

It is given as a greeting and expressed as a part of every farewell. It is never taken for granted, yet its omission would raise an eyebrow as being out of the ordinary. Unlike exchanges that have become social pro forma such as “It’s good to see you”, or “How are you?”, the “I love you” that we share has retained its character as a special gift between parent and child, grandparent and grandchild.

Leading up to my 50th birthday I resolved to offer that gift to each of my parents. Offering those words to them was difficult even though I loved them. With my mother it was at the end of one of our weekly phone calls, “I love you Mom” … quiet followed finally broken by, “I love you too, Peter!” Her surprise was palpable, as was her joy. From that day on every conversation between us included that expression of affection. She died in 2020.

With my Father it was not to be. Multiple Sclerosis had robbed him of his independence and the joy of life. His last years were spent in assisted living. When visiting him I would ask him how he was doing, his answer invariable was, “Just waiting…” It wasn’t necessarily to ask what he was waiting for.

I did take the plunge. “Dad, I love you”. To which he replied, “Oh well…” then trailed off to silence. I had to (and did) smile. It was affection given in the manner that he could express. This exchange was repeated at each visit thereafter to the time of his passing in 2009.

What was most important was that I was finally able to speak those words to him in the living years:

 Every generation blames the one before. And all of their frustrations come beating on your door. I know that I’m a prisoner to all my father held so dear. I know that I’m a hostage to all his hopes and fears. I just wish I could have told him in the living years.

Crumpled bits of paper filled with imperfect thought. Stilted conversations, I’m afraid that’s all we’ve got.

You say you just don’t see it, he says it’s perfect sense. You just can’t get agreement in this present tense. We all talk a different language, talking in defense.

Say it loud, say it clear, you can listen as well as you hear. It’s too late when we die to admit we don’t see eye to eye.

So we open up a quarrel between the present and the past. We only sacrifice the future, it’s the bitterness that lasts. So don’t yield to the fortunes you sometimes see as fate. It may have a new perspective on a different day. And if you don’t give up, and don’t give in you may just be okay.

Say it loud, say it clear, you can listen as well as you hear. It’s too late when we die to admit we don’t see eye to eye.

I wasn’t there that morning when my father passed away. I didn’t get to tell him all the things I had to say. I think I caught his spirit later that same year, I’m sure I heard his echo in my baby’s newborn tears. I just wish I could have told him in the living years.

(“The Living Years“, was written by B. A. Robertson and Mike Rutherford. Recorded in 1988 by Rutherford’s rock band Mike + The Mechanics.)

Peace Everyone. Pete

PS. My son Peter and I practiced law together for seven years until my retirement. It is an incredible honor to be a colleague with one’s child, to see them every day as an accomplished professional. Christine also cherished this experience but with our daughter, Renee. It was common for Peter and me to wish the other well upon leaving the office. Those exchanges included a hug and “Love you…”. Often as not this happened in the waiting room with clients present.

Peter once shared with me that the day I told him that I was retiring was one of the saddest days of his life.