“Six Threats Bigger Than Climate Change” – Wall Street Journal, 28 August 2014

US Secretary of State John Kerry is concerned about climate change and rightfully so. The habits of people across the world have managed to impact our climate, causing large fluctuations in temperatures and more natural disasters, which significantly hit the world’s poorest nations and damage the global food supply. But yes, there are, as Wyoming Republican Senator John Barrasso points out, foreign policy issues that are just as important, or more important, than climate change.

Barrasso cites the following international issues that pose greater challenges to America than climate change: ISIS in Iraq; pulling out troops in Afghanistan and the subsequent terrorism; relations with Russia; Iran’s nuclear program; US assistance in Syria; and North Korea’s nuclear program.

While we concede that these are all very substantial concerns, Barrasso frames his argument as one or the other. We shouldn’t be concerned with climate change and new climate policy; we should completely focus our efforts on foreign policy and helping the world. Maybe Kerry made a lapse in judgement by stating that climate change is “the biggest challenge of all that we face right now,” but climate change is indeed a huge problem that can affect, and is affecting, our world.

Obama’s efforts to be diplomatic in regards US foreign policy seem to be a more long-term approach to the issues rather than making swift, rash decisions that could end badly. Conversely, Obama is able to make such swift political and economic issues in the US — such as using his power of executive order to push through new climate policy — because this is his home turf. Barrasso’s points are valid, but they seem to miss a key point — what change is Obama bringing to his own country, and why doesn’t change in America come first?

Though the US has lost a bit of its credibility recently, we have always been seen as the world’s savior and we’re always expected to lend a hand. That is an admirable trait and part of our identity as America, but perhaps it’s time that we — simultaneously, not exclusively — take care of our own for a bit. After all, juggling multiple goals and objectives is the President’s modus operandi.

Developed and Written by Dr. Subodh Das and Tara Mahadevan

September 2, 2014

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“Turkey’s Crisis Dents American Steel” – Wall Street Journal, 5 February 2014

Turkey is the world’s biggest scrap steel importer and a key consumer in the $20 billion US steel scrap industry. But Turkey’s current economic crisis is taking its toll on the US scrap steel industry, the country’s weak demand and declining currency making imports very costly.

The US is the number one exporter of iron and steel scrap, selling $10 billion per year, more than two times the amount Japan sells, second to the US. Turkey has been the number one importer of US scrap since 2008; the country’s steelmaking companies mainly use electric-arc furnaces to melt down the scrap imports. Turkey, in turn, sells to Iraq, Saudi Arabia and the United Arab Emirates, becoming the largest exporter to these countries.

In the first 11 months of 2013, Turkey’s imports dropped 18% to 4.9 million tons, a huge hit to the US scrap steel industry. Turkey is now importing more steel from Europe, and manufacturing steel products from semi-finished steel items purchased from Russia, instead of manufacturing steel from scrap.

East Coast scrap traders are more widely affected by Turkey’s decline, whereas West Coast traders chiefly export to Asia. While demand from Asian countries, such as China, is predicted to continue growing, there is a worry that the demand could dwindle as China has its first “scrap cycle,” a phrase applied to a young, industrialized country that begins producing its own scrap with recycled steel goods. China will remain an importer for now, but the question remains whether China, like the US, will also become a global exporter of steel scrap. The US steel scrap industry has a lot to lose.

Developed and Written by Dr. Subodh Das and Tara Mahadevan

February 24, 2014

Phinix LLC

Copyright 2013. All rights Reserved by Phinix, LLC.

www.phinix.net    skdas@phinix.net

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