Sunday, October 26, 2014

It's a Miracle and Deserves Many Kudus!

Hi Everyone,

A short time after the first person to have Ebola arrived in NYC last week , my wife and I had a conversation about how to stop people who come from countries that either have Ebola cases or had worked with Ebola patients. My thought was that any person who fit in either category would be immediately quarantined for 21 days. How else could you prevent an Ebola outbreak in a densely populated city such as NYC? To me that was just a common sense solution that would at the very least, try to prevent a potentially dangerous situation from getting out of hand or actually preventing such an occurrence.

So low and behold, (and boy was I surprised), NY Democratic Governor Cuomo and NJ Republican Governor Christie jointly announced that they both had agreed to implement such a preventative plan in both states. This implemented plan is more restrictive than even the CDC's current Ebola regulations. FYI, the last media report from the CDC, was that they were actively discussing the NY, NJ plan in regards to implementing a  similar plan nationally. Finally, politicians, who as a group in my opinion, have the least common sense of any other group, were able to come up with and implement a common sense solution in a timely fashion.

Which is the subject of today's blog. In this day and age, politicians from both sides of the aisle have a terrible and caustic aversion to working together. But here we are now and somehow, someway, Governors Cuomo and Christie found common ground that they were able to work together on and then being able to agree on a plan solution and even implementing it to prevent an Ebola outbreak. Congrats to both of them! Unfortunately in this day and age, politicians also have the unbelievable and stupid ability to take any situation and turn it into a war of ideologies. That's why seemingly simple common sense solutions take an eternity to be agreed upon and then implemented. But that's not what Cuomo and Christie did! Not only was I pleasantly shocked to hear about their agreement, but also the speed in which they were able to come up with a common sense solution and then to implement it to boot. Go figure!

I remember when Governor Christie publicly commended President Obama's help and the federal government's response to the destruction caused by Hurricane Sandy. Christie was vehemently criticized by members of his own party. Now Christie works hand in hand with a Democrat to solve a potential mutual problem and not making it a political issue/problem. They proactively acted for once, instead of reacting, which is usually the way it works these days. Who doesn't see that being used against Christie in the near future. This is the way politicians should work and unfortunately doesn't happen very often.

Again, congratulations to both Cuomo and Christie. My hat is off to you both. Maybe, wishful thinking on my part, others from both parties can and will learn from their experience of being able to work together, hand in hand, to get the job done in a timely fashion.

Til next week.

Peter 

Sunday, October 19, 2014

Not So Fast!

Hi Everyone,

By now we have all heard of or have read about hackers, hacking into Target, Home Depot and other chain stores. Hackers were even able to get into the supposedly secure J.P. Morgan computer system. What we have also learned is that the majority of these hackers are from Russia and China. I am not going to get into how these companies get hacked, other then saying that maybe they should pay more to get a better firewall or whatever they need to stop the hackers. Today's blog is about a smaller scale business that will have ore important consequences.

For those of you not in the know, on 10/6/14, Hilton Hotels Corp. sold their iconic, flagship hotel, The Waldorf=Astoria, (yes it is correct to use the equal sign, which is another story) located at 301 Park Ave., between 49th and 50th streets, for $1.95 billion. Under normal circumstances, other than the price tag, this would be a non story. Unfortunately though, the sale of this iconic hotel may result in serious implications that may actually harm our national security. How is that possible, you may be thinking?

Before I answer that question, let me preface my answer by stating that I worked at the Waldorf=Astoria as their Assistant Director of Personnel for years, back in the early 80's; before being promoted to another Hilton hotel. Consequently, I have the inside scoop on why national security may be in jeopardy due to the sale. First of all, the company who bought it is Anbang Insurance Group. So what's the big deal? Anbang is a Chinese company, which is based in Bejing, China. Terms of the sale allow Hilton to manage the hotel for the next 100 years and also calls for a "major renovation". Since we are aware of China's ability to hack into American company's computer systems and their eavesdropping capabilities, why would this sale be problematic? What many people don't know is that for the  past 50 years, the U.S. State Department has leased a residence on the 42nd floor for the home of the U.S. ambassador to the United Nations. When I worked at the Waldorf, Jeanne Kirkpatrick was the U.S. ambassador to the U.N. and lived in the residence. Yes there was security to protect the residence, but that is not the big issue here. In addition to the residence, every president of the U.S. since FDR has stayed in the Presidential Suite. There are lots of other heads of state from other countries that stay there. Also, hundreds of U.S. diplomats stay at the hotel during the annual U.N. General Assembly. As a side note, back in the day, (I am not sure if they still do it), whenever a head of state stayed at the Waldorf, their country's flag was prominently displayed above the Park Ave. entrance. The U.N. even borrowed some of the Waldorf's flags that they didn't have.

As I stated, under the terms of the sale, a major renovation will take place. So let's look at what will most likely happen with the renovation. As in the case with the U.S. embassy built in Moscow, in the 80's, eavesdropping devices were installed throughout the embassy; even with U.S. contractors overseeing the construction. Knowing who lives and stays in the hotel, does anyone think that China's government won't want to install eavesdropping and other electronic devices everywhere? I believe that not only would they want to, but will do it in a heartbeat. China could then listen to every conversation that the U.N. ambassador has, but also, every U.S. president, all the diplomats, heads of state and U.S. elected officials who stay there. Especially during the annual Al Smith dinner. What a freakin gold mine for the Chinese government; where they would have instant access, in real time, of any and all sensitive conversations that takes place. This just can't ever happen!!!

The way I see it, there are only two common sense options. The first is that the U.S. State Department immediately stops using the 42nd floor and doesn't allow any U.S. presidents, diplomats or any other elected officials from staying there or have any meetings there. Obviously any CEO's of any company who stays there would be fair game for China to listen to for their own benefit and profit. The second option is for the sale not to be allowed, which I am sure there would be lots of people against that due to government interference in a private sale.

I can't imagine that the U.S. State Department would allow anyone to stay there which could jeopardize our national security. When I was at the Waldorf, President Reagan stayed there a couple of times. Six to nine months prior to Reagan's visit, the Secret Service task force was in the hotel, having highly classified meetings with executive management to discuss security and background checks on all current and all recently (past 6 months or so) terminated employees. What a windfall for the Chinese government to learn how the Secret Service and NYC police departments protect the presidents who stay there and their minute by minute and day to day schedules, along with any other high profile guests.

FYI, there are many reasons why the Waldorf is used for the U.N ambassador residence and presidential, other dignitary and heads of state stays. The Waldorf has a private, drive through the building's entrance, which keeps prying eyes away. There is limited access to the towers where these dignitary's stay. And it is located in mid-town, where it is semi-close to the U.N.

Lastly, why is it that the U.S. State Department routinely warns U.S. diplomats in China about physical and electronic surveillance and tells Americans in the country to be aware of similar risks, especially in hotels? Because that is what China does!

If the sale can't be reversed, which I think is the best option, then the only common sense option is for the State Department to immediately stop using it and to find another hotel to use asap! Obviously they can't take the chance of using the Waldorf anymore. Which by the way, will be detrimental to the new owners bottom line. Oh well!

Common sense must rule here, without any second thoughts.

Til next week.

Peter

Sunday, October 5, 2014

Will Money Rule?

Hi Everyone,

For those of you not in the know, New York State has decided, (with voter approval last November), that the distressed upstate portions of the state need a shot of big business economic development. The big economical development that voters approved is for up to 4 non-Indian owned licenses for full blown casinos in 3 regions. There would be more jobs and extra money for school systems. Basically sounds good until you look at Atlantic City's casinos where 4 casinos have recently closed. But that is not what today's blog is about.

Genting Americas is one of the companies interested in building a casino in Orange County. All of the companies interested in building a casino in the state had to submit a licensing fee of $70 million. Genting in their infinite wisdom wants to pay a fee of $450 million. That is obviously $380 million more than the state is requiring. Why would Genting want to pay that excessive amount? The reason is simple, they want to build their casino not in a distressed region, but rather in Orange County, where unemployment is lower then the rest of the state and the area's personal income is in the top third of the state's 62 counties. Orange County is not distressed! But that is exactly why Genting wants to build it there.

It is obviously more profitable to build a casino in a wealthy area where people have more money to spend. It is also more profitable to tap into the New York City day trippers rather than have to count on overnight visitors. Thirty five miles south of Orange County is the Yonkers Raceway, (Empire City), which has slot machines and no gambling tables. The Yonkers school system receives $20 million each year from Empire City. If a casino is built 35 miles away, that will siphon people and money from Empire City and hence the Yonkers school system which really needs the money. In addition, one of the regions that really needs help is the Catskills, which has never been the same since their heyday of the 50's and 60's. Several potential casino operators said that they will withdraw their plans if a casino opens next door in Orange County.

What Genting is trying to do is build a casino where THEY want and not where the casino is needed. They want the state's gaming commission to throw out the language of last year's amendment and instead accept their whopping, excessive fee. The bottom line is that an Orange County casino will cannibalize a large part of the existing casino gambling market rather than expand it. There will be only one winner if Genting gets its way and that is Genting.

Hopefully common sense will prevail and Genting won't be allowed to buy a constitutional amendment. Only time will tell. Other regions need the economic help, not Orange County. New York State should not sell out and should listen to what the voters approved.

Til next week.

Peter