HANOI, Vietnam — I want tell you about Vietnam: its people, its culture, its economy, its disputes, and its aspirations. But I can’t. Not yet.
Nuclear Teetering on the Economic Precipice
This will be a bleak Christmas for the small Vermont community of Vernon. It is losing its economic mainstay. The owner of its proud, midsize nuclear plant, which has sustained the community for 42 years, Entergy, is closing the plant. Next year the only people working at the plant will be those shuttering it, taking out its fuel, securing it and beginning the process of turning it into a kind of tomb, a burial place for the hopes of a small town.
What may be a tragedy for Vernon may also be a harbinger of a larger, multilayered tragedy for the United States.
Nuclear – Big Green – is one of the most potent tools we have in our battle to clean the air and arrest or ameliorate climate change over time. I've named it Big Green because that is what it is: Nuclear power plants produce huge quantities of absolutely carbon-free electricity.
But many nuclear plants are in danger of being closed. Next year, for the first time in decades, there will be fewer than 100 making electricity. The principal culprit: cheap natural gas.
In today’s market, nuclear is not always the lowest-cost producer. Electricity was deregulated in much of the country in the 1990s, and today electricity is sold at the lowest cost, unless it is designated as “renewable” — effectively wind and solar, whose use is often mandated by a “renewable portfolio standard,” which varies from state to state.
Nuclear falls into the crevasse, which bedevils so much planning in markets, that favors the short term over the long term.
Today’s nuclear power plants operate with extraordinary efficiency, day in day out for decades, for 60 or more years with license extensions and with outages only for refueling. They were built for a market where long-lived, fixed-cost supplies were rolled in with those of variable cost. Social utility was a factor.
For 20 years nuclear might be the cheapest electricity. Then for another 20 years, coal or some other fuel might win the price war. But that old paradigm is shattered and nuclear, in some markets, is no longer the cheapest fuel — and it may be quite few years before it is again.
Markets are great equalizers, but they're also cruel exterminators. Nuclear power plants need to run full-out all the time. They can’t be revved up for peak load in the afternoon and idled in the night. Nuclear plants make power 24/7.
Nowadays, solar makes power at given times of day and wind, by its very nature, varies in its ability to make power. Natural gas is cheap and for now abundant, and its turbines can follow electric demand. It will probably have a price edge for 20 years until supply tightens. The American Petroleum Institute won't give a calculation of future supply, saying that the supply depends on future technology and government regulation.
Natural gas burns cleaner than coal, and is favored over coal for that reason. But it still pumps greenhouse gases into the atmosphere, though just about half of the assault on the atmosphere of coal.
The fate of nuclear depends on whether the supporters of Big Green can convince politicians that it has enough social value to mitigate its temporary price disadvantage against gas.
China and India are very mindful of the environmental superiority of nuclear. China has 22 power plants operating, 26 under construction, and more about to start construction. If there is validity to the recent agreement between Chinese President Xi Jinping and President Barack Obama, it is because China is worried about its own choking pollution and a fear of climate change on its long coastline, as well as its ever-increasing need for electricity.
Five nuclear power plants, if you count Vermont Yankee, will have closed this year, and five more are under construction in Tennessee, South Carolina and Georgia. After that the new plant pipeline is empty, but the number of plants in danger is growing. Even the mighty Exelon, the largest nuclear operator, is talking about closing three plants, and pessimists say as many as 15 plants could go in the next few years.
I'd note that the decisions now being made on nuclear closures are being made on economic grounds, not any of the controversies that have attended nuclear over the years.
Current and temporary market conditions are dictating environmental and energy policy. Money is more important than climate, for now. — For the Hearst-New York Times Syndicate
Vietnam Welcomes America with Open Arms
No grunt slogging through the jungles of Vietnam could imagine that in 2014, 41 years after the end of the Vietnam War, the Vietnamese would be welcoming back Americans as investors, tourists, advisers and protectors.
Next year is a big year in Vietnam. It is the 40th anniversary of the fall of Saigon, on April 30, 1975. It is also the 20th anniversary of the normalization of U.S. relations with Vietnam, a country where so much American and Vietnamese blood was spilled.
The Vietnam War started in the Eisenhower Administration, dragged down Lyndon Johnson’s presidency, and was ended in the Nixon Administration amid controversy that tore America apart and has informed its foreign policy ever since.
It will be remembered in the annals of war for the limits it revealed on mechanized fighting, and the challenge of asymmetrical fighting and wrong-headiness. But it also deserves mention in the annals of peace for the surprising speed in which the war has been put aside, especially in Vietnam, where the gory past has been buried and the future embraced.
Today’s Vietnam is a place where the United States is admired and emulated. And the Vietnamese want nothing so much as to be closer to Americans.
Twenty years ago when I traveled from Hanoi, south along the spine of the country, to Ho Chi Minh City, formerly Saigon, I was astounded by the way the war had been willfully forgotten: people I met did not want to talk about it.
Da Nang still was set about with hardened bunkers, Hue, which had been the national capital until 1945, was a sad ruin, but people were determinedly forward-looking. They wanted to know three things: how could they get American goods, how could sell their goods in the U.S. market, and what was the United States going to do about China?
A generation later, Vietnam is more passionate in its desire to get close to the United States. The government of Vietnam is making a new push for American investment, particularly in the privatization of infrastructure, which is still government-controlled and beset by inefficiency and corruption.
Vietnam Report, a business and data service, has just released a comprehensive white paper, prepared by Corr Analytics, a New York-based risk management consultancy, that paints an agreeable picture of investment opportunities, particularly in those industries that the Vietnamese government is anxious to hive off to the private sector. Of 432 projects identified by the government, Corr has honed in on what it believes to be the 31 best-investment targets. These range from opportunities — from a few million dollars to over $7 billion — in finance, infrastructure, manufacturing and petroleum.
The backstory is that Vietnam needs more than U.S. investment. As it struggles against China in the South China Sea, over territorial claims on small island groups that are thought to contain large hydrocarbon reserves, Vietnam wants the United States to be a visible friend.
There is even talk that the United States, might establish a naval base at Cam Rahn Bay, its legendary base and deep-water port during the Vietnam War. This, the argument goes, would compensate for the loss of the naval base at Subic Bay in the Philippines. Come back, Yanks.
Several analysts have told me that they believe Vietnam to be an excellent investment opportunity, but there are concerns. The government is nominally communist and there is only one party: the Communist Party. It is avowedly pro-business but faces human-rights issues, press-freedom issues, and the impartiality of the judiciary is questionable. Corruption is widespread and debilitating.
Yet Forbes magazine is looking to Vietnam as the new Asian investment haven. In the World Bank’s Ease of Doing Business rankings, according to Corr Analytics, Vietnam is ahead of major investment destinations such as China, India and Brazil. Vietnamese Prime Minister Nguyen Tan Dung has made it clear that his country is open for business – particularly American business.
Tourism is growing, especially at Vietnam’s superb beaches. Lauren Graham, who stars in the NBC drama “Parenthood,” has taken a bicycle trip with her father, a Washington lobbyist and fluent Vietnamese speaker.
Some who fought in Vietnam have joined the ranks of its boosters, like Tom Patterson, the famed Harvard professor, who is helping to develop a high-technology village near Nha Trang and Cam Rhan Bay, where he was once stationed.
The generational change also has made a difference. Much of the Vietnamese population was not born during the war. A new generation of Americans has been shaped by war in the Middle East not in Asia. — For the Hearst-New York Times Syndicate
How to Steal the Sea, Chinese Style
The Cruelty of the Holidays
The Media-Pollster Axis Stole the Election
Politics is the hot ticket in journalism these days. Young reporters long to cover Capitol Hill, when once they longed for the exotic life of the foreign correspondent. “Timbuktu or bust” has become “Washington or fail.” Journalism's stars today are those who can reel off the precincts of Iowa or the hobbies of senators, not the wonders of rural Sri Lanka.
Yet the passion for politics that has seized the Washington press corps and those who want to join it across the country has not been reflected in the public – not, at any rate, by the abysmally low national turnout of 36. 3 percent on Nov. 4, arguably one of the most important midterm elections in a long time.
It was the lowest voter turnout in 72 years: a seeming monument to voter apathy. Certainly not the sign of a seething, unhappy electorate which believes the bums should be thrown out because the country is on the wrong track. That may be so, but you wouldn't know it from the voter turnout.
The voter turnout wasn't large enough for anyone to claim that the country has veered to the right, or that the victors have a mandate. Yet we know President Obama is held in low esteem, although not as low as the risible contempt in which Congress is held.
If the voters didn't come out in large enough numbers to give us a clear reading, how do we know that Obama is on the ropes and that Congress is despised? We know it, without doubt, from the innumerable opinion polls which are now part of the journalistic toolbox.
There is no doubt about the public mood. So why didn't the public vote when there was so much journalistic enthusiasm for the election; when an amazing amount of television time, especially on cable, was given to politics; and when radio goes at politics 24-7?
The paradox may be journalism and its commitment to opinion polls, largely funded by the media. If you know who is going to win the match, why buy a ticket?
The passion in journalism for politics has made politics a victim, robbed it of surprise and tension. I voted without passion because I had a very complete picture of the outcome before I did my civic duty. It was like reading an otherwise gripping who-done-it, when I already knew it was the butler.
The metadata people, like Nate Silver, aren't helping either.
When newspapers are cutting their staffs and budgets are tight, why is political coverage and polling out of Washington thriving? First, it is cheaper to create news than find it. With polls, you scoop the election result. Second, there is a large pot of money for “political issues” advertising that has given rises to a raft of new outlets, forcing old-line media to double down.
Washington politics is no longer a franchise of The Washington Post and The New York Times. It has its own trade press, led by the upstart and well-funded Politico, a big news predator in a school of hungry fish. There is The Hill, Roll Call, National Journal, RealClearPolitics and more than a dozen others, like The Cook Political Report and Talking Points Memo.
It is these new entrants, with their access to instant electronic delivery, that have led the change and fueled the frenzy. They are in danger of becoming the game instead of covering it. They have become more interested in what the polls say than what the politicians say.
On Capitol Hill, members of Congress are in bunker mode. They are afraid to say anything or look a bit tired, distressed or unkempt because these ill-considered words and unflattering images will be flashed across the Internet – there to be retrieved at any time, for all time.
There is a joke around Washington that if a member of Congress breaks wind, Politico will have the story. In this new world, every trifle is recorded and archived. Is this the way to foster statecraft in a dangerous and unforgiving world? Let's poll that question, shall we? — For the Hearst-New York Times Syndicate
A Primer for the New Congress
Welcome to Washington, new members of Congress. It is a city of museums, statues, self-importance and arcane ways.
After a post-campaign vacation, you will be ready to take on the world — or at least this city — and begin to make things right. You are coming here to cut through the crap, straighten out the mess, to return the peoples’ government to the people.
You are feeling good, even invincible. This sense of euphoria and possibility is normal. It is nothing to be worried about — and it will pass.
As most of the new class is Republican, you are going to stop the rot come what may. No more liberal shenanigans, no more creeping socialism, no more welfare state, no more European-style mollycoddling of the undeserving.
You are going to loosen the shackles on business and watch it rise like a jolly green giant who has shaken off his captors, including the Bureau of Land Management, the Fish and Wildlife Service, the Bureau of Ocean Energy Management, the Federal Energy Regulatory Commission, the Nuclear Regulatory Commission, the Department of Energy, the Environmental Protection Agency and the Internal Revenue Service.
Oops! Before we go any further, maybe you should pick a target. EPA and IRS are very unpopular — those two are enough for now.
It goes without saying that you are against Obamacare and that should be repealed, or go unfunded, or be replaced with something. Be careful: it may not be as unpopular with your constituents as it is at the country club.
But do not let things like that worry you. You have been elected to Congress. Hallelujah! Reality will not set in until you get to your first caucus, or you see the lousy office you have been assigned, or you learn that that committee appointment you cherished is not coming your way.
Again, worry not. You are about to make a lot of new friends; really nice people, people who will do anything you ask. They have advice about where to live, whom to hire, what schools to send the little ones to — if you have not already decided to leave them back home, which you may when you find out the cost of housing in Washington.
Anyway, the new friends will help you through the intricacies of being a member of Congress. They will advise you on which forms to fill in, how to get your expense reimbursements. Such helpful people. They will also give you advice on issues that are new to you, like net neutrality, the Law of the Sea, and the reason companies have to move overseas.
Amazingly, they also have tickets to wonderful sports events with local teams: the Redskins (football), the Capitals (hockey), the Nationals (baseball). They also have tickets to cultural events, from plays at the Kennedy Center to exhibitions at the National Gallery of Art. It helps so say you love the arts when you are railing against the National Endowment for the Arts, PBS and NPR.
These new friends are the lobbyists, and they have your number already. They know what you like to drink or eat, and whether you prefer to bike, hike or sail. Everything can be arranged. Trust them. They will also guide you on delicate legislative issues; no pressure, just guidance. And who are you to refuse a friend?
Dear Democrats, you are not forgotten but not well remembered either. Your party lost, and you know what that makes you. For two years you must walk the halls of Congress mumbling about income redistribution; how many successes President Obama actually chalked up, but failed to trumpet; and cursing, under your breath, the presence of money in politics — unless it is union money.
There will also be real pleasure for you in thinking up hateful things to say about the new Senate majority leader, Mitch McConnell, and be quoted saying them in social media.
Whatever your party, as your first term wears on, you will get to feel at home on Capitol Hill. You will know how to play the lobbyists, one against the other, and how to discomfort the leadership of your own party. But mostly, you will come to love Big Government. Welcome to the Washington elite. — For the Hearst-New York Times Syndicate
Europe Faces Winter on the Edge of the Abyss
BURGENLAND, Austria –There is another world crisis brewing – and one for which President Obama cannot be blamed. The Europeans and have made a mess of things, and now the wolves are at the door.
The first snarling wolf is deflation. Europe’s economies are so weak, so close to recession, that the very real danger of deflation – falling prices – has its economists petrified. It ought also to have its politicians in anguish, but whether it does is less clear.
Europe’s big-driver economy, Germany, as well as France and Italy, are on the edge. The German miracle is ailing, and Berlin may have been writing the wrong prescriptions for the rest of the 18 countries that share the euro as their currency. It has been aided in this effort by the International Monetary Fund.
That prescription, which often seems to harm the patient, as in Greece and Spain, is for austerity – which appears to work better on paper than in the real world. Germany worries about profligate borrowing throughout the European Union. But if the German economy is to escape recession, Chancellor Angela Merkel may have to borrow some money herself and inject it into infrastructure spending to keep Germany competitive and its workers on the job.
The European Central Bank (ECB) has been slow to institute a badly needed program of buying qualified bonds, known as quantitative easing. In the United States, the Federal Reserve, in a program that is now ending, has pumped more than $1 trillion into the economy and helped pull the economy out of recession. But ECB has been timid because it has no clear direction from the European political establishment — pointing up how cumbersome and directionless the European Union structure has become. It has a parliament, which has no power, and is increasingly attracting members who are actually opposed to the European project.
The European Commission has arguably too much power centered in the bureaucracy in Brussels, but no clear direction form its controller, the Council of Ministers. Trouble is the ministers can disagree and veto needed courses of action.
The economic crisis points up the ungovernable nature of Europe and its present institutions. If Washington is gridlocked, Europe is by structures that cannot deal with crisis and what often appear to reflect as many policies as there are members (28) in the EU.
But it is not just the economic wolf that is at Europe’s door. The Russian bear is there, too. Already there is an undeclared war raging in Ukraine.
At the Association of European Journalists' meeting here, a spokesman from the Ukrainian government, who asked not to be identified by name, expressed the sense in Ukraine that it has been betrayed by EU bungling.
“Europe sees Ukraine as its European neighborhood partner. But in Ukraine, the truth is different: Ukraine’s view is that Europe let us down. We are hurt, bleeding. We have been betrayed by a neighbor that, six months ago, we saw as a brotherly nation,” he said.
What was not said was that Europe may freeze this winter if the Putin regime — a growling wolf — wants to punish Ukraine and its neighbors. Europe is hopelessly dependent on Russian gas, which is used mostly for heating. Germany gets 40 percent of its gas from Russia, and Finland, Estonia, Latvia and Slovakia get 90 percent. Russian gas makes its way — largely through Ukraine — down into Italy, and even the United Kingdom has some small exposure.
If the gas goes off, Europe freezes and its economies go south in an avalanche. The most hopeful thing for Europe this winter is that with the world oil price falling, Russia’s own fragile economy may dictate that it keeps the gas flowing — but it will force up the price where it can.
Washington, with a new Congress, might want to brace for Europe’s winter of crisis and disaster. If Europe goes into severe recession, can the U.S. economy escape major harm? The new Congress will be on a sharp learning curve. — For the Hearst-New York Times Syndicate
The Ben Bradlee I Knew and the Creation of ‘Style’
Energy Experts Predict Crisis-Free Winter
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