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Sorry not a post about the World Cup,  the Phillies, or the upcoming Tour De France……..

But about Substitute 1 for SB 119 that is now out of committee….

This piece of legislation will have great impact on our lives during the next decade. It is often hard for those trying to meet today’s economic challenges, to think past the immediate crises, and plan for our economic health over the next 25 years…….

This bill puts into law a requirement that may actually be somewhat conservative by the time the schedule it enacts, comes to its end…

Essentually it sets a minimum level of renewable sources required for this state’s total electric output….

Why is this important?

Private entrepreneurship needs something solid in hand before risking its investment of hard cold cash. This bill gives businesses, entrepreneurs, and far thinking individuals, a solid figure upon which to make calculations into the future required to determine whether that investment will or will not pay out….

No one invests money in order to lose it… That is why this bill is needed.

If passed, energy moguls, both large and small, can begin to build towards a more certain future, one which will create jobs…

This bill sets a floor on which all calculation can be built……

If passed, in the years 2025…. we will be paying far less for energy, maybe 60% less, than we would without its passage…..

This bill benefits investors, power procurers such as Delmarva Power, and rate payers like you far, far into the future.

Truly a … win…. win…. win.

As the logo suggests:  A good thing for the environment
Photo courtesy of the Telegraph

George Bush was considered a good leader after we had just gotten socked by 17 people in four hijacked airliners, when he picked up a megaphone and set the war against terrorism in motion…

They'll hear this

Fact: that war has diminished terrorism.

Today we are fighting in Afghanistan against Afghanistan people who think we and what we offer, are not the best thing for their future…

They have that right, just like you or I would have that right if an uncertain future were being imposed on us, as say 30 years ago, was portrayed in the movie Red Dawn…. But although the words terrorism get thrown about, …. most of us honestly think far less of terrorists now, than we did even during the most glorious days of the Clinton reign…..

I will say that is a success, one which can be measured by a quantified analysis of results. The US achieved success by diminishing global terrorism. Pretty unbelievable, based on the paradigm of the world we had 10 years ago….

But where I’m going with this,…. is that an event happened that impacted American prosperity, and everyone got together to overcome it…

Today, dead plant and animal material of 250 million years ago, is being forced out at high pressure into an underwater basin. Oil is washing up on shore; oil is creating a desert of life where once life thrived…

The equivalent of 9/11 would to not just simply go after BP, but to go after all of terrorism or in this case… dirty energy…. A real leader doesn’t solve a problem. He changes the paradigm….

What we need to do, is to leverage this unfortunate blemish upon the practices of the past, into a understanding and movement towards weaning ourselves off “dirty energy”….

Today, Obama did just that…

“We cannot consign our children to this future. The tragedy unfolding on our coast is the most painful and powerful reminder yet that the time to embrace a clean energy future is now. Now is the moment for this generation to embark on a national mission to unleash American innovation and seize control of our own destiny. ”

The time to embrace a clean energy future is now……

Sunrise on offshore Wind Farm

Two years ago, Delaware was poised to be the first state to have off shore wind… Legislation was passed, signed… the investment firm was pumped up… and then…. Babcock and Brown… collapsed.

The tragedy in the Gulf ….like a boot camp bugle too early in the morning, means that at this moment… we need to jump up, and go forward with upgrading the plans and building a 600 MWh wind farm off the Delaware coast…

Since private investors can’t handle it… we need a government who can…

We set a very similar precedent seventy five years ago…

Between July 1933 and March 1939 the PWA funded and administered the construction of more than 34,000 projects including airports, electricity-generating dams, aircraft carriers, and bridges, as well as 70% of the new schools and 1/3 of the hospitals built between 1933-1939. Some of the most famous PWA projects are the Triborough Bridge and the Lincoln Tunnel in New York City, the Grand Coulee Dam in Washington, and the Key West Highway in Florida.The PWA also electrified the Pennsylvania Railroad between New York and Washington, DC. The PWA did not create as much affordable housing as supporters would have hoped, building only 25,000 units of in 4½ years.

Those necessary structures today, would not be there without the Publc Works Adminstration. Simply put… It’s goal was to spread big bucks, on big projects… There is some argument that these expenditure did little to alleviate the Great Depression. The geography of the problem was too great: the solutions too small.. Only with the outbreak of WWII and Roosevelt’s realization that deficit spending was now mandated, did this nation begin to work its way out of the Great Depression.

Now try to imagine getting into New York today without either the Lincoln Tunnel or the Tribourough Bridge… Try imagine Boeing in the Northwest developing without the cheap power off the Columbia River…. Try imagine the US developing the atomic bomb without Oak Ridge, a subsidiary of the TVA…. Try imagining the Empire State, without the public funded Niagara Power Project, which held the price of power consistently from 1961 to 1981…

In each case, the long term benefits to the community far outweighed the benefits caused by just the new jobs alone…

Therefore it is time for us to do the same with Wind and Solar…

Private investment is stalemated; the active engine of the economy is (like it or not), the federal government…

For as little as 2 billion, we could begin construction within a year. The dreams of developing a wind farm construction-center right here in New Castle County, would again take wing. The dreams of importing the brains of energy to set up homes in Delaware, would once again become reality…

$2 Billion spread over 20 years… averages out at $100 million a year… Getting a return on that investment with wind energy, would be fairly simple… Between jobs, economic growth, full governmental coffers, and very cheap electricity for all… we could easily show that investment to be worthwhile…. And not to mention, were we to clear a little of our air, who can guess how much of a medical saving each household would garner?

But dreams mean little without action.. Now is the time to begin the pursuit of landing a large government contract to begin off the coast of Rehoboth as soon as possible..

We all know it works. Evidence as been there in the above structures… all our lives… We just need to do it….

So…

Do it.

……. and if that happens…. this BP disaster will have been a good thing in the long run…..

See if you can figure out how……

Dominion Power Boo-Boo.

A bridge to the future, if collapsed, takes you no where… –kavips

This chapter looks at rebuilding our infrastructure. We have highway problems, energy problems, educational problems, as well as health problems, environmental problems, and social problems. Can rebuilding our infrastructure be a tool to begin the mending process?

Up to now very little has been spent on maintaining our highways. Most highway money was earmarked for new growth.. It was as if no one gave consideration of the fact that maintenance of what we already had up and running was a cost that needed budgeted in.. After all, what political points are ever given for repairing a road before it goes bad? (Damn it, why are they tearing up good highway, costing me twenty five minutes in each direction?) But with the August 1, 2007 collapse of the Interstate 35 Bridge in Minneapolis, we see what happens when highway infrastructure is ignored.

For example in the United States alone, 25% of our bridges are deficient. In Delaware, 15.4 % of our bridges are either functionally or structurally deficient, which is actually good when compared to our fellow small state Rhode Island with 52.9% of its bridges deficient. As one travels back and forth, one crosses an unknown number of tiny bridges; of these, one out of four is deficient. How would you like to be on the I 95 bridge across the Susquehanna… when its time came to fall?….. or perhaps driving across the Chesapeake Bay Bridge between Kent Island and Annapolis? Thinking “one out of four” may raise your apprehension rate the next time you find yourself traveling unknowingly across a potential deathtrap…

The need to improve our infrastructure is obviously there. So if we have the labor available, how will we pay for the construction and repairs with our treasury bottomed out?

That depends on whether bonds still had any worth, meaning whether or not anyone still had any interest in buying them… Normally bonds are sold at a low interest rate, and the money taken in is used for construction. The notes are paid back in regular payments. But if there is no demand for, or more money out there with which to buy the notes, who will fund the infrastructure investment?

Today the bottom line is that the money will have to come from the Treasury. Being broke, that also means the Treasury will no choice but to print more money in order to accommodate the economy’s need. As more money starts chasing fewer goods, inflation looks at us dead center down it’s barrel. Unfortunately we are in such dire straits, that we have no choice but risk the chance of inflation just to keep the next Great Depression at bay….

The same scenario applies to our efforts to revamp our educational system. Now estimated to require between 45 to 50 billion (how much was AIG’s bailout?) the infrastructure of our schools systems faces the same challenge of acquiring minimum funding, as does that of rebuilding our highway system.. Up until August of this year it could still have been done. Now due to insufficient funds, this accomplishment is unlikely. But if we choose to go forward, we will have to do so again funded by printed money with inflation drawing another bead upon the target on our own purchasing power..

Even today, there is enough work to employ every man, woman and child in America if we can find the resources to pay for them doing so… Work such as environmentally cleaning up Superfund Sites, energetically laying new transmission lines, socially integrating our square pegs into round holes, educationally teaching problem readers to become literate, or simply maintaining hospice care over those citizens who cannot survive long enough to see America turn its corner; yes, work can be found…

But the underlying question still remains as to how we will be able to fund the privilege of keeping America employed… and at whose expense? If we were unable to solve these problems during the past 8 years of plenty, how will we deal with them during a time of shortage?

Fortunately, we are not the first group of people in our lifetimes to rebuild our world around us… Three examples of what can be accomplished, are found in three post war states who after war’s end, found themselves under American influence. That would be Germany, Japan, and South Korea. These are the models we need to turn to. Someway and somehow they bounced back from complete devastation to becoming the the second, third, and fourteenth largest economies behind that of the United States…

At war’s end, there were very poor resources to spread around. Everything possible needed fixed at once. But with a small amount of seed money provided by the Marshall plan, a major currency adjustment, and a release from price controls, the German population pulled themselves up and today have roaring economies better than do any of our allies of that past conflict. (It doesn’t seem fair.)

History shows us that for two years after the war, while post war punitive policies were kept in place, all of the occupied countries’ economies decreased. The Soviet sector opted to maintain those policies and their economy continued to suffer accordingly until German Reunification in 1990. However in the western Allied sector, starting in 1948 with the abolition of price controls and most post war rationing, along with the devaluation of their currency designed to shrink the amount (by 93% contraction) of the money in circulation, their economy took off; lost days decreased by half, and industrial production climbed within six months by 50%. Both nations were blessed with the post war abundance of skilled cheap labor; therefore both nations were able to increase the flow of money into and around their country.

Rising to the challenge imposed upon them by history, all three countries had able leadership which was effective in communicating this to each countries’ populations: … that their time and effort were to be properly considered as an investment. Their rewards would not be reaped immediately, …but would someday be magnificent. Their leadership was also effective in communicating that timing was critical. If they did not begin immediately… their nation’s dreams would never materialize. It was their competent leadership that marshaled the populations of both WWII nations back to work “on the cheap” and that…. the bottom line, is how both counties bounced back. Not dictatorially, but economically. One should note that both of the two occupied economies fared much better than our Allies, who received far more Marshall Plan aid than did the conquered nations, and who did not have to pay for war repatriations as did both of the war-torn countries.

From here I pulled this little piece of history, showing the progressiveness that forced the German economy forward…..

Colonel:“How dare you relax our rationing system, when there is a widespread food shortage?”

Erhard:“But, Herr Oberst. I have not relaxed rationing; I have abolished it! Henceforth, the only rationing ticket the people will need will be the deutschemark. And they will work hard to get these deutschemarks, just wait and see.”

That they did.

Obviously sitting in our armchairs looking forward, we too understand that we will face the specter of inflation. It MUST come with the copious amounts of money we are currently and anticipated soon to be printing. However as does any nation in a war, our country does what is needed. Currently and just like it was after WWII, the US right now is the only global entity strong enough to expand its money supply fast enough to put most of its citizens back to work. As we begin earning extra spendable income, our demand increases; when that demand pushes up prices, more and more entrepreneurs race to fill in the vacuum of goods… bringing them back down. Greed is good.

As for actual rebuilding of infrastructure, postwar Japan offers a slightly different model. In Japan we meshed the government, banking system, and large industrial players to fund, construct, and grow their infrastructure during the sixties. The local banks, backed by the government of Japan, used a system of overloaning. This policy is one which the Bank of Japan guarantees all loans issued by city banks to their industrial conglomerates. Because there was a shortage of capital in Japan at the time, industrial conglomerates borrowed beyond their capacity to repay, often beyond their own net worth, thereby causing city banks in turn to over borrow from the Bank of Japan. This gave the national Bank of Japan complete control over all dependent local banks until the loans were repaid.

The primary difference between the Japan of then and America today, is that today, the money is still not being lent out by those banks receiving Federal assistance. Instead, today’s over loaning is being wasted on the buying up of other banks; today that mass infusion of capital is being used to consolidate the financial industry, instead of financing large projects that actually put citizens to work, and in turn funnel money back through the economy.

The question remains. Does rebuilding our infrastructure get us back on our feet?

Yes and no. The economic impact on the local level at the location where the federally funded project is being built, is huge. But it is a localized effect. For an economic turnaround to be effective, infrastructure building must occur simultaneously in almost every town or village across the United States. If funded solely by the federal government, that significant cost would appear prohibitive. But if instead of being funded solely by the Federal Government, it is done as did the Japanese during their infrastructural rebuild, (where all local banks simultaneously financed local projects close to their locations), much more capital becomes available. If we place our bets on the option that local banks WILL lend out the money, if we guarantee that they lose none of the amount lent out,…. then that outcome could start some infrastructure development in the very near future somewhere near every community’s small bank, no matter where it may be located.

So if as a nation, we choose this plan, and we attempt the Japanese-tried approach, the question next arises over which infrastructural improvements will return the largest investment? The consensus seems to be that Energy, Education, and Technological advancement lead the pack.

As we now all know, even during prosperous times our nation gives up a large percentage of its income to other overseas nations just for oil. By simply keeping that dollar amount in the United States we could provide our economy a substantial boost. Furthermore, manufacturing and exporting new technology which help frees the rest of the world from their dependence on oil, would certainly assist us in turning the trade balance back in our favor. Both of these lines of thought converge to point out this: the increase of our energy independency could become the primary viaduct which could bring America back into prominence.

As for increasing our energy independency, there are several options for doing so. One, is to create new sources. Here is one startling fact: there is enough potential wind power in North Dakota alone to cover 25% of America’s energy needs. The problem is getting it to where it needs to be used. Building transmission lines from America’s heartland out to its extremities, where its largest users are, should be a first priority. For one, it actually uses the free market plan and opens markets to a cheaper supplier of that required product. Two, transmission costs are a significant portion of the energy costs we pay for electrical energy today. Three, poorly outdated transmission grids eat up a lot of energy that could instead be used to power America.

Likewise building transmission lines from our local shores to major metropolitan areas, provides those city areas with cheaper electricity from off shore wind, thereby increasing the likelihood that more wind power generating companies will set up off-shore. The larger the wind farms are off shore, the better our economy will weather that upcoming Depression that appears to be looming off our horizon… And if hydrogen is one day destined to become our replacement fuel, then locating their manufacturing plants in close proximity to offshore wind farms, in order to capitalize on a wind farm’s free excess energy during non peak hours….. could certainly help build an industrial base to back up the tourist economies of rural shoreline counties.,.

Directly related to the new technology of wind power, would be the need to construct electrical storage facilities in areas that have no jobs. Western Pennsylvania and West Virginia would be ideal localities to build closed circuit water generators that use free excess wind power during non-peak times to pump water up a hill to reservoirs on top, from which water can then be released during peak times, flowing downhill turning a series of giant generators as it falls to the valley floor. These massive projects would put large numbers of Americans to work in those areas desperately needing new development.

But these three investment strategies are all dependent on the knowledge that wind driven energy will be a big player in the years to come. No one will make such an major investment in a climate of doubt. The Federal government over the next few years … has to make that clear.

For other hard hit areas, an investment in solar power out in America’s Southwest can do the same. A conglomerate of local banks issuing out loans, guaranteed by the Federal Banking System, should have sufficient resources necessary to begin the immediate construction of a series of large solar farms in that area. With such an investment to attract large numbers of employees to that area hardest hit by the housing crises, local banks could with the Federal bank’s support., begin paying workers who in turn would help out the local banks by buying back some of those foreclosed mortgages at market prices…

But unquestionably, the largest saving can be made by simply conserving more energy in our homes and businesses. Just re-insulating every home in America, can save the cost of its installation within a year. According to the Department of Energy, re-insulating a home can save between 5% and 22% of its energy costs per year. At their estimated energy cost of $1500 a year (seems low, doesn’t it), the range would be from $75 dollars to $300 dollars a year. So paying someone a bounty of $75 dollars for each house, just to infra-red, then re-caulk it’s leaky windows and insulate it’s doors, would see its return within one year on every dwelling visited. Paying someone to go through a city’s public housing could save that city government tremendous amounts of money which could be better spent putting its citizens back to work.

Educational infrastructure is likewise needed. Our nation’s schools for the most part, have not been updated on a grand scale since they were originally built for the influx of baby boomers … What is more important than structural additions to existing buildings, is a revamping of the educational process itself.

America needs to regain their technological prowess… Our educational system ranks behind most of Europe and civilized Asia. One Duke study concluded that 137,437 engineering graduated in the United States, compared to 112,000 for India and 351,537 for China. Of course the quality of those foreign engineers are open to debate. But still, with lopsided numbers like that, it is obvious that over time…. we lose the technological war. Today… whoever is driving the global need for technology… drives the global economy.

Putting additional parents or motivators inside of class rooms, increasing allocations for science supplies (simply dropping sodium into water turns most students on to science as well as instantly explains the clarity of the periodic table), and increasing the social status of the “geeks” in teenage classrooms, are just some of the ways we can rebuild our educational infrastructural needs, without large investments of cash… Where we most often complain that the educational system is broken and in dire need of fixing, at the core of the problem is broken down people. Whether it is administrators, teachers, school board members, parents, or the students themselves, what we have throughout our education system is a group of talented, but leaderless individuals. All are spinning their wheels independently in their effort of trying to find some type of traction in improving education. Often within the same schools, different partners are spinning in opposite ways.

What American education needs is a grand goal, one that is set nationally and bought into by all of its people. Once again, America needs to be challenged. At its forefront it needs a leader capable and willing to stake his reputation on meeting and achieving that goal.. And most importantly, that challenge needs to me made without any financial strings attached. You know: the usual “we need to invest $$$ in …….”. Instead, what is needed by our incoming leadership is to voice a measurable goal such as this one for example: that says by 2015 we will as a nation, turn out as many engineers as does China….. (Goal reaching against a competitor worked for reaching the moon). Perhaps to achieve it, some additional funding may be necessary. But what is more important, is that is sends a real signal to students that fun and games as they have been portrayed on children’s TV, can no longer be tolerated within our high schools. Every young person now has the survivalist duty to apply themselves to the best of their ability, for the honor of their country in whatever the direction their talents lead them… (With proper leadership, this can be done fairly cheaply: it takes just one big speech.)

The long term return on this cheap investment is that by 2020, our engineers should be in the field working at top notch organizations, benefit them and us from their training and expertise…. The longer we wait… the further behind China and India we find ourselves… We are already talking twelve years from now before we can get any return on both ours, and our student’s investment….

Likewise, tying in with improvement of our educational output, is our need to advance ourselves further along the road of technological innovation, ie. creating new patients. For which ever nation builds the most savvy technical gadgets, that is the country from whom all others will want to buy…

But in today’s economical climate one must realize that a risky investment on some new technological device, untested in the market place, will have difficulty finding financiers. Once again, the Federal government, if it is spending its resources elsewhere, has the option of only printing more money to pay for this investment, assuming that private lenders are too scared to lend. Therefore as mentioned above, as in the post-WWII-Japanese model where the small city banks overloan to businesses and corporations allowing them to invest in research and development, if these loans are themselves guaranteed by the national bank, private lending can fulfill the need.

A very strong incentive to promote new research and development by corporations, would be to allow all such expenses devoted to the creation of new products, to become tax deductible under the newer higher rates that will be forthcoming shortly. Every bit of money spent on research and development, is our nation’s best investment. Innovative new products lead to the quickest economic turnaround as those new developed ideas soon become commercially viable…

Other areas where infrastructure can also be propped up by an infusion of small loans made by city banks which are then guaranteed by the Federal Reserve, are in the areas of environmental protection, health care, social services. Western forest fire fighting companies, environmental detoxification companies, and tree reforestation companies, could begin putting people to work.

It could work like this. A company such as Guardian, on call for disaster, receives a payroll loan from a small bank guaranteed by the Federal Government to keep itself afloat until money comes in from charging an oil tanking firm for the mess they made… Most of that loan money is used to buy necessary additional equipment, which puts someone to work in the manufacturing plant where that piece of equipment came ….. As work eventually comes in, the Federally guaranteed loan is paid back to banks… In this and most cases, no direct Federal investment is required. They just stand behind the guarantee.

In the health care industry, private companies providing hospice care, watching over psychiatric patients, creating new MRI’s, handling billing requests and follow up from insurance claims, can now receive a private loan from a small bank guaranteed by the Federal Government to carry them over until their money returns. Needing new equipment keeps a job at the plant where that piece was manufactured…

Companies specializing in assisting the poor, handicapped, impoverished, hungry, homeless, can also stay afloat by these private loans over lent by their banks, but guaranteed by the Federal Government. When the money returns from their clients, the loans are paid off.

In each of these areas, existing goods and services are maintained. The businesses don’t fold. Here is a different way of looking at it. This Keynesian jolt of economic activity is metaphorically like starting a heart of a human being temporarily stopped in cardiac arrest. At that time, all the systems are in place to work…. the heart just needs pressed to get started….. Our economy is like that. Inattention to the core of our economic problem, which is money not flowing out of banks, will lead to the same result to us as it would to a patient who does not get his heart restarted….

So this chapter can be summed up this way. The Federal Reserve is given responsibility for making sure that all projects having a viable chance of success, receive funding from, and eventually pay back… the small local banks making those loans. The Fed just guarantees the loans won’t fail….

Those out going loans should be focused on projects giving us our biggest bang for our money. Those areas providing the best return on their investment, are in the areas of energy, education, and technological advancement……

Instead of direct investment, the use of Federal guarantees in these three areas, coupled with the Federal Reserve’s monitoring the effects of inflation, are one way our nation can capitalize on its current hardship, and pull itself out through our effort, grit, and tenacity….

Saying a lot is one thing; planning it and executing it is another. — kavips

Here is the “full court press” we recommend…

We recommend dividing our economic gurus into three teams….

Team One’s responsibility is to jump start our economy. In athletic parlance, it is called “winning today’s game” It’s goal is three consecutive quarters showing real GDP growth, coupled with three quarters all showing an increase in the level of personal wealth attained by each of the five quintiles. It then disbands.

The second team’s responsibility is to tackle our longer term problems of our deficit spending, and our ballooning entitlements… In athletic parlance, this is called getting ready for the playoffs…..

The third team’s goal is to focus on how we will one day exit our current, direct and necessary governmental intervention into the economy at some point in our not so distant future…. In athletic parlance, this is called building a team for next year….

These three teams must get started immediately, for successful policy on all of these outreaches is critical if we are to again become an healthy economy. We expect to find that each teams answers may contradict the other teams in both theory and philosophy. What works for today, may not work for tomorrow. If so, we need to recognize that possibility now and lay plans for any upcoming change in the future. But the sad truth is this. Right now, we do not have any plans sitting on the shelf, which we can pull down, and right our keeled-over economy. We need some contingency plans in writing, emanating from experts and experienced thinkers, and not from politicians whose responsibility is to jerk their knees to the mood of the moment.

Again, those teams can be summarized as follows: the “today” team, the “next game” team, and the “next season’s” team……

Here is what we recommend for the first all star team to pursue.

Surprisingly we recommend that we find the proper way to give each mortgage holder a three month holiday from paying their mortgage, one giant loan extension. This break allows them to get their finances in order… There is no way any government can match a stimulus impact nearing the size of this amount. If this is utilized, within three months, America’s economy will have pulled itself out of its depression. We found the proper Executive Order outlining such, if issued by the President, could be enough to put this policy quickly in effect… We also found that it worked best if the benefits were not watered down by any type of means testing, but were given to all homeowners irregardless of their income level… It would be fair to all: a pass for three months on paying one’s primary mortgage.

Secondly, we recommend that a way be found to force lending. We discovered that it was the process of “calling” in one’s loans, that made it difficult for banks to lend, both during the Great Depression and today… We recommend that some agreement be made among principal parties, so that when a loan is ever called, the banks coughing up the funds, have a long span of time in which to acquire that capital… perhaps up to a year…. Removing all fear that a bank may go under, could be accomplished rather quickly by eradicating it’s uncertainty that at a moment’s notice, it might have to give all of it’s money over to another bank…. This could be effectively done by issuing one more Executive Order directed towards the Federal Reserve, which states that banks had up to a year to turn over their assets if their loans were ever called in by another bank…. and that the bank requiring the loan to be returned, could go ahead and place that incoming amount on its books as an asset, since the money was surely on its way…

Thirdly, we recommend direct projects be funded by the government for the sole reason of putting people back to work, and in doing so, inject cash directly into the system… However we recommend some qualifications be instituted on what was built. Building a bridge to nowhere does little good except during the time of the actual construction. Building something like new schools, on the other hand, continues various economic benefits long after the building is finished. New teachers and new administrative personnel are needed for many years thereafter… The best bet, and what should be the primary factor in deciding which of the projects clamoring to be built will get the nod, is to insist that whatever is built, will be something that creates new jobs that last long time after the project has been completed…

Number four: we recommend that unemployment be fully funded… We also recommend that all those receiving unemployment should be required to work in some capacity, on their own time as a volunteer. Currently our unemployed payments are hinged on the proof of “searching” for work… We felt that with no jobs being created by the private sector at this time, that this clause of the Unemployment Act would be a waste of effort; we felt it was far better to help a child read, pick up neighborhood litter, or volunteer to assist a classroom in a neighboring school, and then issue proof of doing so to claim a check, as opposed to filling out applications that would not be seen by employers definitely not hiring…… Therefore we recommend that unemployment be tied to giving service back to one’s community. If unemployment ever reaches 25%, with one out of four out of work as it was briefly during the Great Depression, keeping those unemployed busy, would be good for them as well as for our nation.

Number 5: We found the stimulus plan in the form of a rebate check, went to pay down existing debt and did little to stimulate the economy. We found that tax breaks for corporations were equally a waste of resources and actually hurt the economy far more than helping it.. A better approach we found, one which was historically documented throughout the Eisenhower and Clinton years, was to increase the rates that corporations and the wealthy were required to pay in taxes..and then give them an option out for not doing so. We found the economic growth caused by doing this, was rapid. Higher taxes caused the consistent reporting of lower profits mostly because companies opt to reinvest their money into themselves instead of forking it over to the IRS.. This did two things: this dropped the volume of money leaving the private sector, and secondly it caused increased hiring. Having every business reinvest its own money back into itself, pumps far faster money into research, development, growth, new products, new jobs, than anything the Federal Government could mandate directly with their limited resources. We strongly recommend that corporate rates be quickly increased, coupled with sunset restrictions that are guaranteed to lower the high rates when certain agreed-to economic standards have been reached… for instance 3 consecutive terms of 3% GDP growth in a row… The higher rates would then automatically expire.

Sixth. We encourage the ability of businesses and homeowners to completely and fully write off capital investment within the year that it was purchased. This results in lower taxes being levied upon those businesses during the first year of this policy change, when they sorely need it; and slightly increases the subsequent year’s taxes over the span of several years,… when they don’t… Whereas this can negatively impact the government’s revenues during its first year of implementation, it will serve to increase them during the boom times to follow, assisting us in our long term effort to diminish our national debt.

Seventh. We recommend that toxic assets not be bought by the federal government, but instead have their value guaranteed by the Federal Reserve for a fee. The guarantee simply states that the Fed would ante up the difference if needed, should the asset fall and eventually not meet its purchased value.. These toxic assets would then be marketable, and could then be picked up and held by investors, thereby again infusing banks with capital. It would serve us well by not tying down billions of the Federal government’s money. It would be similar to how we responded to our largest problem during the Great Depression. Back then, we didn’t nationalize the banks; we guaranteed the deposits within those banks… Guarantees, as it turned out, that we rarely had to pay.

Eight. The same type of guarantees should be applied to the process of overloaning. The local bank makes a construction loan, knowing that it is insured by the fed from any defaults. The stipulation is that it uses its own money in its own neighborhood, knowing that were serious default to occur, that the Federal Reserve would guarantee its return… The Federal guarantee allows a bank to loan more money than it has. The bank gets its return as payments on those loans begin pouring in. After the banks regain solid footing, these special loans could be sunsetted… Following this plan, puts capital directly where it is needed: in the hands of those who will rebuild our infrastructure.

Nine. The imposition of a Carbon tax acts like an old fashioned tariff to cheap imports. Although this impacts the cost we may pay for some items we use as a consumer, it makes the option of building in America while still paying higher wages, cheaper than shipping overseas to a sweatshop and importing those products back. Likewise the inflated fuel cost suffered last summer, had the golden lining of making building within the United States and shipping locally, appear more competitive than building offshore and transporting products back. For businesses to stay in this country, their entire cost. from top to bottom, must be cheaper than it is elsewhere. We need to lower all other costs for business just so we can keep our wages higher. For those wages are what drives our economy… The Carbon Tax, if elected by us and opted out by our competitors, can balance our two costs and help us to keep businesses inside this country.

Ten. Removing health care responsibility from being primarily funded by businesses, would assist in cutting labor costs low enough to make our country more competitive in global markets. A good portion of our nation’s economic health, lies in the number of manufacturing jobs it has at its disposal. Dropping costs vis a vis our competitors, would make investing in America again, far cheaper than moving into a plant offshore.

Eleven: Moving our nation rapidly to a source of energy far cheaper than the current costs of carbon fuels, would assist in dropping our businesses’ costs lower than those of our global competitors. It takes a wealthy country to do make such an investment in infrastructure, and as a nation, we the people of the United States of America, have the competitive edge over all other countries to do so. Wind and Solar have free fuel costs. That means applying efforts to use new technology to decrease capital costs, will over time, guarantee a significant drop in the cost of all energy being used within our borders. It’s cost needs to drop low enough to make the option of opening a plant in the US, equal to or cheaper than that of building one overseas.

Twelve. We need to begin planning for our new baby boom’s investment. 2007 was the first year we broke the 1957 record of new births. Increasing population is one of just two ways to increase an economy. That process was started during the nights of 2006 and early 2007. We need to prepare for impact in 6 years, 12 years, and 18 years as that baby boom bubble aims for our educational system… We need to be ready with new schools, new teachers, as well as eventually, more new jobs.

Thirteen. Returning to better and tougher product regulation can also increase the worth of products made in America. Already we see signs that “Made In America” is a quality statement among the wealthy Chinese… Beforehand, we were guilty of making the assumption that quality would remain consistent, no matter from which locality a product was made. Last year with pets dying, poisonous lead found in children’s toys, and other international quandaries, we finally understand how again returning to a tighter system of regulating ourselves, can make our products appear trustworthy and thereby remain more competitive, despite the higher wages we are paying to our nation’s hard working employees.

Fourteen. We must not panic ourselves into protectionism. It was tried and failed; the Smoot Hawley Act aggravated if not instigated the 1930s Great Depression. Protectionism can work on a micro scale, case by case, as it did for Harley Davidson during the Reagan years. But using protectionist philosophy as a broad swipe, drastically drops our nation’s exports, causing the GDP to collapse, thereby raising unemployment to levels currently undreamed of. Protectionism on a broad scale is very bad for our economy.

We now move on with the agenda of that second team: the one responsible for tomorrow’s game. This team’s goal will be to again remake America solvent. The second team must focus on these following problems. As often happens in the financial sector, having two separate teams work independently, could be likened to any corporation which had one team working with the court on its immediate bankruptcy proceedings, and another team working with its creditors on how to alleviate its long term problems with long term solutions.

We must be ready before our depression ends, to jump into phase 2 and prepare for the method on how we wean ourselves off of debt. It is not just the National Debt we need to fix. We also need to tackle our personal, corporate, state and local government’s propensity to spend money we don’t yet have… As a society, we want more! And as consumers we are just not savvy enough to understand that buying now, will cost us more later…. “Oh, I can afford that low payment”, has become our excuse to put off our fiduciary responsibilities…..

We recommend that the compounded power of interest needs to be re-explained to our population; it needs to come from a political figure they trust. We were shocked to find that most citizens of our nation are relatively ignorant about the math behind money, The “bully pulpit”, we think should be used to explain how some debt for houses and building businesses is good, but that too much for personal consumption is not in the best interests of our nation…The accumulation of more and more debt, needs to be framed alongside the political perspective that in doing so … we cripple our country. “By increasing your personal debt, you are not only causing hurt to yourself, but you are eating away the foundation upon which stands this once great nation”….

We recommend the following three step process be used to deal with the personal debt of private citizens. We recommend first dividing the population up into these three classifications of personal debt… 1) Those who can never catch up. 2) Those who can catch up part way, and 3) those who are still living within their means.

For the first group we recommend biting the bullet and processing that whole group through bankruptcy as expeditiously as possible… Let them begin from scratch, and let’s write off their bad debt at once. It makes for a bad month, or two, and it severely impacts one quarter. The alternative to quick action, is to ignore the inevitable by muddling through this malaise, and continuing to have this sickness interfere with our economy for many quarters to come.

For the second group, we recommend the recalculation of their debt according to this formula which is different from whatever loan agreements they originally signed. Recognizing that much of their debt is currently at interest rates well over 25%, and a majority of their debts are carrying over one third of their balance in superfluous late fees, we recommend that each of those debts receive a new recalculation based on the amount of principal they borrowed, plus an average, fair interest rate over the life of the loan. We recommend 8 %, considering the Federal Rate is now close to 0%. We recommend the removal of late fees entirely, and should a payment not be forthcoming by it’s due date, that only, … the accumulated interest be added to the balance. (That was the original plan of the United State’s credit card industry up until 1997). We acknowledge that those still dreaming of a 50% rate of return off some accounts may scream that they are being taken. We simply argue in return that those who have been taken by them all these years, are finally receiving their fair break. 8% interest is still higher than any loss, which in today’s economic world is a very real alternative.

For those who have been consistent in their payments despite these hard times, ie the third group, we recommend that all of past credit records be wiped out entirely and that their credit scores commence immediately at 800, the perfect score. We feel that this would give immense incentive to all those of the top echelon for continuing to pay in a timely fashion, especially as they see others who can’t pay around them receive huge breaks. We recommend that anyone paying off pre 2009 debts, be given a huge positive impact in the formula used for all future calculations of a customer’s credit worthiness.

Although we emphatically agree that some personal debt is necessary, we also acknowledge that there are limits to the debt that we have left. For that reason we further recommend the passage of legislation either on a Federal level or by individual states to again set a high limit on the amount which can be made from borrowing. That decision is a societal one, not a corporate one. Society should reclaim its responsibility to monitor and set its usury guidelines; it’s a responsibility that should have never been delegated to those profiteering from the interest.

Lastly, to assist in personal savings, we recommend the restitution of buying U. S. Savings bonds. We further recommend the use of a mandatory deduction from each person’s payroll for US. Savings bonds at whatever low interest rate shall be determined. This will understandably have the effect of a new tax at first, drawing more money out from the private sector of the economy. But over time it will return that money back and provide all of us the benefit of lower future taxes, especially if it is used as a tool or way to restructure our gigantic, impending national debt. Opposite of a tax, under this plan each lender WILL get a full return of his money back at some future date. Under this plan, our nation is borrowing from each and every one of it’s citizens; it’s citizens in turn are investing in their nation, and accumulating personal savings while doing so. The explicit difference between this new plan and Social Security, is that in this case, all of the amount that an individual actually does put in, will one day be returned to either himself or his dependents. Unlike Social Security which was “supposed” to grow independently within a trust fund arrangement that was completely outside of the regular budget of discretionary governmental spending, this mandatory savings fund is designed to 1) increase the national amount of savings being done by all Americans, by 2) supplementing the national budget by explicitly invested that yearly amount into the paying off of our nation’s obligations. We recommend that this program should have written into its passage, that the yearly amount collected from its citizens, be at least, equal to that segment of debt decreased from our nation’s obligation. In other words, all the money goes to pay down the national debt. It can be used for no other reason.

At first glance this appears as one more obligation. Even if we eliminate a good portion of our National Debt, we will still have large sums sucked out of America’s pockets just to reimburse our thirst for retirement income and medical care of the poor and elderly. Currently discretionary spending is only 1/3 of our budget. Two thirds of our budget has already been committed to be spent and cannot be touched….

It is to that two thirds that we must addressed our concern if we are to EVER achieve solvency as a nation.

To that end, we recommend that Social Security taxes be increased 1.7% from the current amount of 12.4% of payroll up to 14.1% of payroll. We further recommend that Social Security benefits commence at age 70, instead of age 65. Together these will bring Social Security back to solvency.

Cutting back on the amount going out to retiree’s was not an option. Social Security currently takes up between 4 to 5 percent of our GDP. Social Security cuts depress economic activity and depressed economic activity is NOT more of what we need now. Social Security Cuts need to be taken off the table. For every dollar cut out of Social Security, the economy depresses by a factor of three. Social Security can become solvent through the 1.7% payroll increase, and by raising the age of retirement to 70.

Medicare and Medicaid is a different story, however. That entitlement in its current state, will be 5 times more costly than Social Security. That entitlement just simply cannot continue in its current fashion.

We recommend a shift in our nation’s focus towards it’s priorities on health care. Instead of our government guaranteeing unlimited care for keeping the dying alive, we feel its priorities should be shifted towards keeping the living population healthy. Our recommendation is to institute a new version of health care in which the Federal Government pays for preventative care, and leaves the ballooning massive costs of staying alive to private insurers.

We recommend that doctors be paid a flat fee per visit, and that the payment for that visit comes from the federal government. This would release significant savings to medical practitioners who require an inefficient number of staff just to deal with the maze of insurance regulations and requirements for each individual patient who pays a visit.

To pay for this, we are recommending that initially, an additional insurance payroll deduction ($11.48/ week) be applied to each paycheck. Over a short time, we recommend the removal of the Medicare and Medicaid programs as they stand today. By then the current Medicare tax would cover this program. This change will save roughly 400 billion currently paid to cover the Federal government’s responsibility towards our health care… Within four years this savings could pay off our national deficit in discretionary spending, and within ten years it alone could pull us out of debt.

We recommend that screening for the four largest human killers; colon cancer, heart disease, strokes, and prostate , be free of charge to every patient and be performed as perfunctorily as are our vaccinations of toddlers today. Our proposal is similar to health care programs of other wealthy nations. We propose that in one year we progress to step one, which is to have all medical, emergency room, and dental visits covered by the Federal government. Currently we found that a $75 dollar flat fee for the initial visit, irregardless of the ailment was sufficient, but argue that these fees be set regionally by boards of physicians themselves… We further recommend that after first visit is covered in full, if required, the second gets paid only at 50%, and subsequent visits are not covered at all. This provides sufficient incentive for doctors to get it right the first time, and prevents the stringing along by doctors of uncertain hypochondriacs in order to soak up additional federal dollars.

The estimated cost of preventive health care on a fee only basis is around $82 billion. We feel that it is the nation’s responsibility to insure that each of its citizens has the right to live healthy by providing free preventative health care; likewise we feel it is NOT in our nation’s best interest to squander our children’s inheritance just to pay for us to cheat death a couple of minutes more….

The Second team needs a solid goal. Financial solvency by 2020 would be a good start. The two best ideas we found to achieve that goal were to mandate a required national savings policy using Savings Bonds to pay down the national debt, and to revamp Medicare to pay 100% for all preventative and minor health care, but leave to private insurers the responsibility to cover the catastrophes if and when they occur.

The third’s team role will be to shift us away from huge government involvement in the economy, back to an economy that is privately run. Over the course of the past century we can see both benefits and pitfalls in following either privatization or socialism. Each are good in their time, and each if trending too long, comes to the point where each creates more problems than they solve. The smart method is to handle this occurrence by planning for it in advance. That would be the focus of the third team. This team would take the the long term problem of shifting our energy away from Carbon. It would tackle the problem of paying down our National Debt. It would look at our economic viability in the next two or three decades and recommend changes that might be required. It would look at tax policy to determine the ideal amount that creates a three legged system balanced between the government, business, and the people… After all the optimal size of government is relative. If it imposes itself upon businesses and the people, it is too big. If it fails to protect us, it is too little. Our wisdom has been enhanced. No more shall businesses and government expand at the expense of the people; no more should the people expand their government too far at the expense of business. We now understand that each leg’s function is to compliment the other two, and when in perfect balance, all three prosper.

The third team’s goal will be to examine all options available. and restore that balance between all three legs… There is a good chance that they will want to deviate from some of the plays we are calling in today’s game… That’s fine. After all, what is important is that we win today’s game, win tomorrow’s game, and continue to win all of next season’s game….

The play we need is simply the “full court press”

This humble plan is the beginning of getting us there.

Once again President elect Obama makes a good choice for a cabinet position. It is about time we decide the future of our nation based on what facts say, instead of what people say. Especially when those people are in control of their own future profits at our expense…

Off the top of my head, the following are a synopsis of battles being waged over the election districts of Delaware…

Property Rights:

Do developers have more of a right to your property than you do?

Do property owners have any right to control what happens in their neighborhood, especially alongside their parcels of land, if it directly impacts those very parcels?

Do manufactured housing owners have any rights to the rented property under which they built?

Open Government

Should caucuses and every meeting be open to the public?

Should all expenses be posted on line?

Should all budget and bond bills have 3 days scrutiny before being voted upon by the entire legislature?


State Budget:

Can we possibly cut spending any more, or are we finally forced to raise taxes this session?

Should the State augment local school spending to bring teaching up to standard?

Do we need to spend for more auditors?

How can we do what we do …. cheaper?

Education

Should we continue with Charter Schools?

Should we eliminate the DSEA or whittle down their influence, as voice by Copeland and Lee?

Should Wilmington become it’s own school district, and busing inner city kids out to the suburbs be eliminated?

Environment:

Should we hold those accountable who did not support the Bluewater Wind deal, and who threw up roadblocks at every attempt made to force our electric bills to go down?

Should we do better at holding large corporations accountable to environmental regulations, at the risk of losing jobs to another state which is less stringent?

Should we legislate environmental laws tougher, or more lenient due to economic reasons”

Morality:

Should we reward someone with office, who 1) went to Seacrets, 2) included his legislative id with his driver’s license when pulled over, 3) drove 30 miles in Delaware while intoxicated (oh, he didn’t kill someone?), 4) cause his wife to call for back up in a domestic matter, 5) ask (threaten?) the babysitter not to tell a soul about what she had witnessed?

If he wins, can we still call Millsboro “God’s Country”, and can it still keep the insigna, In God We Trust, up on the corner bank?

From the San Francisco Chronicle:

The Senate will decide this week whether to follow in California’s footsteps and pass legislation requiring cuts in U.S. greenhouse gas emissions to combat climate change.

Lawmakers are set to vote Monday to begin debate on a bill that could reshape the U.S. economy by requiring industry to pay to emit carbon dioxide and other heat-trapping gases.

Opponents call it a new tax on industry that could raise gas prices and energy bills for consumers.

Now before I knew anything about wind power coming to Delaware, I would be apprehensive about taxing carbon and “increasing the costs to power plants, distributors, and consumers…….

But knowing what I now know, that all carbon prices are about to go ballistic as did our automobile and truck fuel, the faster we leave a carbon based economy, the faster we will pull out of this recession.

Congess just cannot slap the tax on carbon immediately. My recommendation is to start the tax in 2014, giving America 5 years to wean itself off carbon based electricity. Five years could do it…

Wind, particularly offshore wind, if built large enough is the cheapest form of energy available to us today. If solar improves to where it crosses the 10 cents/kwh barrier, it too can become a player….

There is enough wind power capacity in North Dakota to fuel the entire grid of North America…..

The financials show it could be done today for 2.3 cents per kwh… Imagine, all of the US energy needs met at 2.3 cents per kwh. Your $200 monthly electric bill would instead be $40 dollars. Which is right about where it needs to be…….

But not all the wind needs to come from North Dakota, even though it has tremendous potential……Up and down the Eastern seaboard, giant wind farms could drop our prices and save on long distance transmission costs…. From Texas to North Dakota, the wind belt could drive America’s mid section energy prices down to a tolerable level…..

By dropping worldwide demand, we could stop our dependence on energy coming from the Mid East. Being the sole planetary source of 2.3 cents per kwh of electricity, our manufacturing base could again begin to grow in places where it once walked away from union labor……Ohio and Michigan. What automobile company could pass up savings of 20 cents per kwh over what the paid in their home country?

Back to Carbon caps and taxes…..Taxing something that is bad for you at a rather high rate, is ironically a very good thing. It forces you to wean yourself off its toxic properties and seek another solution. It does so expediently. Forcing you to move quickly before your money disappears..unlike a government directive facing appeal after appeal after appeal…….

So raising the price of carbon is in the cards…..the higher the tax, the faster we move to a really cheap source of energy and power…..cheaper than all but the oldest of you can remember……

And if timed right, it won’t cost us a penny. For paying a million dollars for a kwh of coal fired electricity is moot, it there is no kwh of coal fired electricity left to be taxed…. …..

In this report, the U.S. Department of Energy sets forward the goal that the U.S. by 2030 will receive 20% of its power from wind.

Some Highlights.

According to the report, reaching the 20% goal will require boosting wind power from its current generating capacity of 16.8 gigawatts (GW) to 304 GW in 2030, an 18-fold increase.

Notably, the report concludes that 20% wind power can be reliably integrated into the grid at an additional cost of less than 0.5 cents per kilowatt-hour.

However, the report also identifies several challenges that need to be overcome.

Achieving 20% wind power by 2030 will require that the annual installations of wind power increase threefold, from today’s 2,000 annual turbine installations to almost 7,000 per year by 2017.

Also, new transmission lines will need to be installed.

But between now and the time the goal is reached, wind power will have avoided the emission of 7.6 gigatons of carbon dioxide, helping to forestall the growth in greenhouse gas emissions from U.S. power plants. The 304 GW of wind power will also continue avoiding 825 million metric tons of carbon dioxide emissions each year thereafter (13.75% of today’s usage).

While helping to address greenhouse gas emissions, the accelerated wind power effort would support roughly 500,000 U.S. jobs and add more than $1.5 billion in annual revenues to the coffers of local communities.

Apparently what has been argued within these pages has now become federal policy. It would behoove any state legislature to get in the way of a federal mandated policy. Bluewater Wind is a step in the right direction. It is the only step Delaware has….Obviously at some point, someone will build wind farms off our coast. Just as if we lived on top of an oil field, someone would drill and pump. The question is whether our fence sitting Senators can guster up the gumption to vote against Delmarva Power.

The writing is on the wall. To not do so would send us into the future, going in the wrong direction, at least according to the U. S. Department of Energy.

I cannot help but put those waffling Senators in the same pathetic position as the judge on Miracle of 34 Street, who is damned if he declares Santa to be insane, or damned if he validates his existence to the ridicule of every adult…………

Uh, since the United States Government declares this man to be Santa Claus, this court will not dispute it. Case dismissed. ”

All who have seen the movie recognize the wisdom behind that statement. Will our own state legislators be as savvy as one Judge Henry X. Harper when it comes to a decision by the Federal government?

P.S. This report blows a hole out of everyone of Stockbridge’s and McDowell’s arguments over the last year and a half. It also implies that the Federal government, despite his “expertise”, doesn’t pay Speck, or his entangled viewpoints, any mind. Furthermore it gives credence to the open wisdom with which our own state’s Public Service Commission collectively used, when they independently looked at all the facts and came up with the same conclusion as did the U. S. Department of Energy………

20% Wind is in our future.

Because that……. is what we do.