Posts Tagged ‘Reid’

Obama is lying about infrastructure

Tuesday, March 24th, 2009

This post on ChicagoBoyz points out that the political left, including Obama, has no intention of investing in energy infrastructure. The post notes this NY Times editorial piece which exposes the left’s antipathy to transmission infrastructure. Here is the agenda as seen from the left:

PRESIDENT Obama has laid out an ambitious agenda for dealing with our energy needs and climate change: he proposes to double the supply of renewable energy within three years, establish a cap-and-trade program to reduce carbon emissions and use federal stimulus dollars to help homes, businesses and governments use energy more efficiently. This is the right blueprint for increasing the number of green jobs, encouraging economic growth, ensuring that the United States has the energy it needs at reasonable prices, and reducing the risk of global climate change.

Aside from “renewable energy” which constitutes 3% of US energy production with a practical cap of 10% of need by 2020, let alone three years, there are no plans to produce more energy.

lawmakers should resist calls to add an extensive and costly new transmission system that would carry electricity from remote areas like Texas, the Great Plains and Eastern Canada to places with high energy demands like Boston, Chicago and New York. This idea is being promoted by energy companies and by elected officials who see it as an economic development opportunity for their particular state or region. Long-distance transmission lines are needed, they argue, to ensure that the president’s energy goals are met.

We have already eliminated windmills near Cape Cod because they offend Ted Kennedy. Does anyone think New York City is to be covered with solar panels ? The only possibility for wind power and solar power is to generate it in places where it is possible, then transmit it to the places where it is needed.

In Massachusetts, we get about 5 percent of our power from hydroelectric plants in Quebec. Our distribution utilities are negotiating to install a second transmission line for Canadian hydropower, which would be paid for through long-term power-purchase contracts approved by the New England states whose residents use that power. Developers of remote wind-power farms in eastern Canada have said they would also like to sell us electricity, but unless the combined cost of the power they could provide and its transmission is competitive with our other renewable energy choices, their projects won’t get approved. That’s the way it should be.

The real agenda of the political and environmental left is to reduce power usage, no matter what the consequences. Cap and Trade will certainly do that. Now all we have to do is find work for all those laid off by factories leaving the environmentally sensitive states. The real story is here:

the US has failed to invest in generation and transmission assets over the last 25 years or so. “Base load” generation primarily consists of 1) coal plants (no one is building new ones because of environmental legislation) 2) hydroelectric plants (no one is damming rivers due to the Sierra Club) 3) nuclear plant (they are far too expensive, regulation is uncertain, and Three Mile Island hasn’t gone away). There have been some “peaker” plants running natural gas (more expensive) and some minor “renewable” projects but generally we have just been “running in place” with regards to capacity and utilizing up all the “reserve” capacity that had been built up in previous years, as evidenced by blackouts in places like California.

The future with Obama, Reid and Pelosi is grim.

Here is an upbeat appraisal of Obama’s plans but note very little about building new transmission lines.

There is still time for common sense.

Wednesday, January 28th, 2009

The House has passed the pork-filled “stimulus bill” with no Republican votes and 12 Democrats voting no. It passed because the Democrats have a large majority just now. Those 12 Democrat no votes may believe that the majority will be less in 2010 if it passes and they may believe they are prime candidates to suffer the consequences.

Earlier, the House rejected a Republican substitute that would have emphasized tax cuts. Republicans said their version would have created twice as many jobs as the Democrats’ bill.
“The American people need a plan that works,” said House Republican Leader John Boehner of Ohio.

Tax cuts, like a payroll tax holiday, would immediately put money in working families pockets and would cost no more than the obscene pork laden wish list the Democrats just passed. I am proud of the Republicans for sticking together.

The next step is in the Senate but, hopefully, second thoughts about TARP II will derail the Pelosi-Reid express. Not everybody was convinced.

In testimony before the House Budget Committee yesterday, Alice M. Rivlin, who was President Bill Clinton’s budget director, suggested splitting the plan, implementing its immediate stimulus components now and taking more time to plan the longer-term transformative spending to make sure it is done right.

“Such a long-term investment program should not be put together hastily and lumped in with the anti-recession package. The elements of the investment program must be carefully planned and will not create many jobs right away,” said Rivlin, a fellow at the Brookings Institution. The risk, she said, is that “money will be wasted because the investment elements were not carefully crafted.”

Some of those Democrats have not lost their senses.

“Every penny of the $825 billion is borrowed against the future of our kids and grandkids, and so the question is: What benefit are we providing them? What are we doing for the country? It’s the difference between real investment that will serve the nation for 30, 50 years and tax cuts, and that’s a very poor tradeoff,” said Rep. Peter A. DeFazio (D-Ore.). “I go to my district and people say, ‘Yeah, I can use 10 extra bucks a week, but I would rather see more substantial investment.’ We’ve gone through a couple bubbles that were borrowing and consumer-driven. We want a recovery that’s solid and based in investment and productivity, and that points us at building things that will serve us decades to come.”

Then, they have to consider that TARP II, the funding for the “Bad Bank” is coming soon, if that program is adopted. That might be a real solution instead of the pork party the “stimulus bill” passed today has become.

The Obama administration is moving closer to setting up a so-called bad bank in its effort to break the back of the credit crisis and may use the Federal Deposit Insurance Corp. to manage it, two people familiar with the matter said.

U.S. stocks gained, extending a global rally, on optimism the bad-bank plan will help shore up the economy. The Standard & Poor’s 500 Stock Index rose 3.1 percent to 871.70 at 2:40 p.m. in New York. Bank of America Corp., down 54 percent this year before today, rose 84 cents, or 13 percent, to $7.34. Citigroup Inc., which had fallen 47 percent this year, climbed 17 percent.

The financial stock rally should show that this is a real stimulus, not a pork barrel project.