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I missed this on Sunday.
Despite what Republicans say: man-made global warming is here. The birds are telling us. No wonder the Delaware head of the Republican Party, John Sigler is shooting pigeons in boxes….
Photo Courtesy of Port of Wilmington.com
Delaware is poised to give Kinder Morgan, our port for free. Well not exactly but on a percentage scale to Kinder Morgan, that is what it would come to.
This could easily have been done, if our government handled everything in secret. Pay a few people off, sign the contract; the yellow smoke appears, and Delaware fades into oblivion (Shrek Forever After image).
But, Delaware is a government of the People, for the People, and of the People. We found out.
There is a reason you have presidents of stockholders. Because naturally every one has a certain slant of opinions and one has to listen to a lot of hot air by listening to everyone’ parents complain. Having a chief executive cuts that process out and gives us simplicity required to get things done in a timely fashion. If people differ then they can take it up with the chairman and organize a revolt if necessary…
Hence in Delaware we have reached the point where we have a chief executive making the decisions and a lot of revolt steaming underneath.
So up to now, the unanswered question has been: how much should we charge? Just using the simple criteria of buying a house as an example, we can come up with a minimum figure.
When you sell a house you ask for:
- Down payment: 5 percent
- Interest rate: 3.26 percent
Next step is to figure out exactly what our port is worth to us.
If we just take the cumulative $250 million the state has made off the port in tariffs since taking ownership and providing records since 1996, we have a minimum guideline. In tax revenues alone over 50 years, to maintain the status quo, we need the minimum of a $781 (250/16 X 50) million asking price.
Using the criteria above, we should then require 5% or 39 million down payment, and run the existing remainder through the standard mortgage calculation at 3.26%…
(Remember we are not figuring out the best deal, but the best worst deal for which we can afford to give up our beautiful port)
So financing the remainder $742 million over 50 years at 3.26% we should be asking directly for $$1,505,000.000 (billion) spread over 600 payments on top of that 5% down…. Even this paltry price would bring into the state a monthly income of $2.5 million (that is monthly!)..
As an aside, the equivalent of interest we would be receiving over time, would be $706 million. Not much over 50 years but a lot better than a loss.
As we have heard from many, giving the port up for free (as is being proposed by the secret deal of Alan Levine with Jack Markell’s blessing), hurts very many people…
So being realistic, if we have hurt on one hand, and benefit on the other, we need to make sure the overall benefit we get at least matches the hurt we are about to cause,… in order to simply break even. Since breaking even is not a really the best business decision, we should be looking at doing a little or a lot better than breaking even…
Our lowest minimum price can be $1,544,000,000 (billion) meaning we lose out on anything less.
How much is the Kinder Morgan Deal? $200.5 million. Just 13% of the minimum price we will need to require for purchase… .
The question is, with what breaking entry does one return back to the fight?
The answer is this one:
The union of two separate energy stories that my generator spit out back to back. It had to be a sign….
Out of all or today’s news feed the headline that jumped out strongest, and caused me to click into the story it provided, was this one:
Students Build Hydrogen Vehicle That Gets 1,336 MPG
Far more implication for our future lives just radiates out of that title; far more than the balancing of the Supreme Court, the death of Republicanism, or the wonderous WDEL broadcast emanating out of Rick Jensen’s spot this afternoon…..
Cost, climate, family incomes, jobs all the stuff we deal with daily, are impacted by that title.
Serendipitously speaking the next headline showing underneath was this one:
Urine: The Hydrogen Fuel of the Future?
Yes, … I am officially back.
I have been informed that we have the capacity to make every new car sold in our market place, a hybrid.
We can do it in two years….Of course it will take a WWII effort to happen, but we can do it….
How?
For one, we can skip research. We are already there. What we need is a market place where slightly more expensive technology will not have to worry about being underbid by “olde style’ antique vehicles.
All that is needed to move forward and make this happen, is a directive from the Federal Government that says starting by (Just for fun) 12/12/12 (which leaves nine days before the end of the world) all new vehicles sold in the United States, must be hybrid, hydrogen, or pure electric…….
If you can’t sell it, it won’t get made. If you want to be in the market, you are damn well going to make it happen.
McCain’s own philosophy and that of his party, prevents him from ever making that move.