Assume you were a regular blood donor but had an accident in which you lost a considerable amount of blood. Do you think you should increase or decrease the size and frequency of your blood donations until you recover?

Though most politicians are smart enough to answer, "decrease the blood donations," many seem not smart enough to understand that, when you take an economic hit, you don't want to unnecessarily add burdens to the economy.

I refer to the call from some politicians to increase taxes or not extend President Bush's tax cuts to "pay" for Katrina.

Why is this cold, rainy land with its stark volcanic landscape, without much in the way of natural resources, one of the wealthiest places on Earth?

Small states, in the past, were most often poorer on a per capital income basis than large states, but in the last half-century many have become much richer then their large neighbors. Among the wealthiest places on the planet, we now find Luxembourg, Hong Kong, Denmark and Ireland, none with many natural resources.

In a just-concluded meeting of the Mont Pelerin Society in Iceland, some leaders of small states that have developed very successful economies met with some of the worlds' leading free-market economists and policy institute professionals, partly to discuss what lessons the rest of the world can learn from these small states.

Here is what they concluded.

Europe is in crisis. It is depopulating because of birthrates well below replacement. Weighted down by oppressive taxes and onerous regulations, the economies of the major European nations are barely growing. Pessimism reigns.

Yet there are the little flickers of light in the form of bright and energetic young people pushing constructive change, and increasing public recognition from some European leaders that the present course is unsustainable.

In times of crisis, some nations find a Ronald Reagan, a Winston Churchill, or a Margaret Thatcher. If one looks closely at the increasing political divisions in France, Germany and Italy, it is now possible to imagine a future Continental version of Mrs. Thatcher or President Reagan.

As demonstrated by the French and Dutch "no" votes, Europeans are increasingly frustrated living under a bureaucratic (as contrasted with a democratic) state where national sovereignty (and democratic control) continues ebbing.

What should be done? Europe needs for a couple of leaders not directly tainted by the recent "constitutional" fiasco to call for a new convention to write a real constitution, which would protect the democratic and most of the sovereign rights and personal liberties of the European peoples. To succeed, the new constitution would need to allow for social and economic differences among the European states, unlike the just defeated "constitution."

Delegates to the new constitutional convention would be well advised to look at the U.S. Constitution and the Federalist Papers for guidance. Most of the basic arguments about the proper role and structure of governmental units and the protection of individual liberties and national identities and rights can be found in these documents.

The U.S. has evolved into a much more centralized state than our Founding Fathers envisioned, but their original vision is much closer to the type of Federal Republic with sovereign states that Europe needs today.

It is common for politicians in trouble to seek scapegoats for their own incompetence and wrong-headedness, but when this begins getting widespread popular support, both the people's liberties and pocketbooks are in danger.

Given its history, one would think Germany's people would be particularly resistant to demagogy. Unfortunately, that is not the case. Recently, Franz Muntefering, head of Germany's left-wing Social Democratic Party (the SPD), which also is the lead party in the governing coalition, accused business leaders of being "anti-social" and like "swarms of locusts." Rather than denounce him for attacking businesspeople and "international capital," other SPD leaders joined in the denunciations.

The chairman of Lufthansa airline and a director of the "Invest in Germany" organization, Jurgen Weber, replied to the SPD leaders: "If it turns out that this criticism of capitalism has a fundamental nature, then we don't need an Invest in Germany organization any more."

[Just after Rena Cohen wrote this on July 12, she learned of a Moslem terrorist attack in Netanya, Israel, killing two and wounding several others. Her daughter is spending the summer in Netanya and was nearby when the suicide bomber hit. Thankfully she was unhurt.]


Before our horrified eyes, terrorism has just struck again in London, killing and wounding scores of innocent civilians, as terrorism always does. The pictures of bloody carnage are now becoming so familiar, from New York to London, from Jerusalem to Madrid, from Baghdad to Moscow, from Riyadh to Kashmir, from Bali to Manila.

Just a few short days ago on July 4th, the American people celebrated freedom, and honored the courage of the men and women who have given so much to keep it and to protect our country. That same day, a deadly charade was being carried out in another part of the world under the banner of democracy.

While Israel is pulling out of Gaza and parts of the disputed territories of the West Bank to foster peace, the Palestinian Authority (PA) and its allies are preparing for the next terror war.

Terri Schiavo has committed no crime, yet she has been sentenced to death by Florida Circuit Court Judge George Greer, who steadfastly jettisoned due process in her case.

The fundamental issue in Terri's case is disability rights -- not the right to die. Throughout all the extensive media coverage of the case, there has been only slight mention, but usually none at all, that nearly every major disability-rights organization has filed legal briefs to prevent what they regard as judicial murder. The protests are not only from pro-lifers and the Christian Right.

Mrs. Schiavo -- who collapsed in 1990 from what may have been a potassium imbalance that temporarily stopped her heart and cut oxygen to her brain -- has never been comatose, brain dead or in a persistent vegetative state, despite what some physicians have stated and others have denied.

Michael Schiavo has forbidden therapy or rehabilitation for Terri since 1991, or any further tests since 1993. Terri has never even had an MRI or PET scan, let alone a complete neurological examination.

A private Israeli intelligence service reports that Al Qaeda is shifting more than 1,000 of its operatives from Iraq for terror offensives in Europe and elsewhere in the Middle East.

The countries it named as targeted were Britain, Italy, France, Denmark, Russia -- with the UK and Italy at the top of the list; and in the Middle East, Egypt, Syria, Jordan, Saudi Arabia and Israel. Note the US is not on the list.

One reason is that, except in liberal news reports, the war in Iraq has been going poorly for Al Qaeda.