Now that the housing bubble has burst, real estate prices are plunging, bank credit is evaporating, and the economic contraction is like a spasm, the void in our economy is acting like a shock wave.

Funding of the war hasn't been from new taxes, rather it has come from a combination of taxes on the increased economic activity revolving around the extraction of equity from the real estate that has occured during the interest rate decline of the last few years, and from shifting government resources from domestic progams into war related expenses. Because new taxes have been minimal, the resources invested in public capital like basic research,;human health; environmental protection; infrastructure renewal; NASA; consumer protection have declined.

The interaction of policy with this extraction of public capital has been particularly stupid with respect to basic research. The restrictions on visas cut the supply of intellectual talent that came to the US for study at the same time as much basic research support was cut by the federal government. This at a time when our international competitors are compeating for the brightest minds on the global stage. One result is that China and India are on the way to becomming research powerhouses. Increasing investment and encouraging research involvement by foreign graduates at US Universities and national labs is an obvious high leverage shift that should be implemented immediately.

Some applied research area's should be funded at a higher level, with my favorites being plasma physics, atmosperic research, agricultural research, species conservation, flywheel battery storage, alternative energy, bio fuels and sustainable production, energy conservation, ecosystem conservation, extending our network capital investment, research infrastructure support.

Unfortunately now that the resources are squandered and the common capital depleated, our options narrow. It's a shame to have wasted the last 17 years in the greenhouse warming cycle, but it would be criminal to squander the next 17.

I strongly support the defense of my country, and believe that the best national security policy must balance the investment in the domestic infrastructure with the funding of overseas power exercises. We must be skillful in how we strike the balance, and our national command authority could do better, must do better.
Overextending to try to right a policy ship that is listing to port and has lost headway drains our precious capital, yet there are basic military realities that we must support over the long term.

There are some simple policy choices that could vastly improve our nation and would improve our security. One of the first things we must change is our care of veterans: it is a national disgrace that veterans health care is in crises, ignores so much battle trauma. Funding childrens medical and health care is another no-brainer. Credible elections would be another, reform of our sentencing laws and practices is another. Now that much of the mechanism has been dismantled, some agencies would take time to reconstitute, so the sooner we start the better.

Such measures will reduce dispair, and improve the cohesiveness of our society. Improving our research institutions and reducing the ideological management of research could improve our economy. Improving our energy efficiency and energy distribution systems could also improve our national security.

The present administration has an ideological agenda that opposes development of public capital, favors only increased corporate capital and control. I hope that extending the war will be rethought, and more creative and realistic planners be given a voice. I hope that the administration will listen a bit more, though there isn't much basis for optimism.

Still, the connectivity and collective intelligence that emerges as the web develops is an agent of change beyond government imagination. New opportunities, and new vulnerabilities. We need to think about how to guard the freedom of the network, universal access, and so on. It needs to be codified into law or the web will loose it's extra edge in synergizing the colletive exercise of intellegence.