White House Chronicle

News Analysis With a Sense of Humor

God Save the Queen. She Is Unique

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She is the best-known woman in the world, and she has been since 1952 when Elizabeth Alexandra Mary Windsor, at age 25, became Queen Elizabeth II. Although she has a huge list of titles, she is to most people simply the queen. And she has been the only British monarch in most people’s lives: She has always seemingly been there.

Once Queen Elizabeth was young and quite pretty; now she is old and quite beloved. She works very hard, whether it is presiding over meetings with prime ministers – she has dealt with 12 of them, starting with Winston Churchill — or applying herself to an endless schedule of charity events. She has visited 116 countries. I have always wondered at her incredible tolerance, no endurance, at watching cultural events in faraway lands: How many children’s choirs, folk dancers or synchronized gymnasts can a human being watch? In the case of the queen, the number seems to have been infinite.

When she came to the throne, she set off a surge of hope in Britain and the Commonwealth. Popular mythology, as I remember, held that a new Queen Elizabeth would bring a revival of fortune for Britain — the second Elizabethan period would be as great as the first Queen Elizabeth’s reign, from 1558 to 1603.

After World War II, Britain was adjusting to a new order in most things, including the social changes introduced by the Labor government immediately after the war, such as national health insurance, and the recognition that Britain was no longer be the preeminent world power, ruling a quarter of the world. The empire was shrinking, and Britain felt exhausted and lessened.

But the new, young queen signaled hope, and the royal family shot to a position of public adulation. I remember covering the wedding of the queen’s sister, Princess Margaret, to the photographer Anthony Armstrong-Jones in 1960, when Britain went was in a kind of royal hysteria. That began to fade as the decade wore on, and that marriage began to creak and eventually dissolve.

As royal scandals multiplied and Britain became a trendsetter in fashion and the arts, Princess Diana, during and after her marriage to Prince Charles, stole much of the queen’s thunder.

The queen said her worst year was 1992, which she famously called an “annus horribilis” in a Nov. 24 speech at Guildhall to mark the 40th anniversary of her accession. Newspapers wondered whether the monarchy was finished and whether it would either give way to a republican Britain or to one where the constitutional monarch was of little importance, as in the Netherlands, Belgium and Spain.

But Queen Elizabeth persevered and, she just turned 89, is more loved than ever. She is slightly old-fashioned, even as Buckingham Palace is anxious to remind us she e-mails and tweets.

She is a fabulous piece of English bric-a-brac in her omnipresent hat and gloves. Though perfectly dressed in her way, she is not a fashion idol. She was a fine horsewoman. She attends cultural events, but seems only to have a passion for horses and dogs. Critics have faulted her for how limited she is in some ways. It may be that at this point, she is as much an anachronism as the monarchy, and there is strength in that.

No longer do comedians make fun of her piping voice and her ability to ride out gaffes, like the time in Canada when she read the wrong speech, having forgotten which city she was visiting. The British might have come to love her for her famously dysfunctional family — even Charles, her quirky son and heir to the throne. Scandals have touched all of her family, excepting herself and her husband Prince Philip, although one of the queen’s ladies-in-waiting told me that he was busy in that circle when he was young.

When she does die, Britain will enter into the most extraordinary period of mourning, followed a year or so later by a coronation. The change will be enormously expensive, from the queen’s burial to the coronation of the king. Tens of thousands of items stamped with ER (Elizabeth Regina) or the queen’s face, including mail boxes, stamps and the 20-pound note, will have to be changed.

Happily and gloriously, after 62 years as queen, Elizabeth is, physically as well as emotionally, part of British life. She is also, in a way, the world’s queen. — For the Hearst-New York Times Syndicate

There Will Be a Short Delay with the Candidate’s Announcement

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Some of you were expecting me to announce my candidacy for president of the United States, along with the others who got all the headlines.

There have been a few problems. There are solutions, too. (How is that for a campaign zinger?)

There is the problem of my birth. I was, er, born in a foreign country with, er, un-American parents. I have to check with the Ted Cruz camp on that problem.

There is a money problem. At the moment, I have $138 in my current account. But that amount will swell, when my Social Security check comes in next week.

In the long term, I have a crafty, two-pronged approach to raise the billion or so dollars I will need for my campaign. My wife will set up a foundation, called the “Foreign Governments’ Friends Committee,” which will raise money like a Fourth of July flag.

Unlike one of my opponents, I will not beat about the bush on foreign campaign donations. I will take them all, see that they are properly laundered, and promise the donors all sorts of favorable treatment. I can renege later. Not a word, please.

Then there is crowd-sourcing. When my message gets out, I expect a Niagara Falls of money. I will go after the disaffected, unhappy people who hate all candidates. The nutters of the left and the right have lots of dough.

Here is a peek at other aspects of my program:

Bring back manufacturing (back story, by lowering the minimum wage, so that our labor is cheap).

Get tough with Iran. Any Iranian waiter found passing himself off as an Italian at a New York restaurant will get summary deportation.

Give China an ultimatum: Either you double the value of your currency, or millions of Americans will be forbidden to shop at Walmart.

In the Middle East, trust the dictators. We will support the most awful monsters in the time-honored way. If we could get Saddam Hussein out of the grave, I would go for it. Likewise Muammar al-Qaddafi. Call it “the strongman policy”: no messing about with uprisings.

I will be a tough guy supporting other tough guys. I will say to Vladimir Putin, when we are shirtless, “I don’t give a hoot about Ukraine. Take it. But I want you to invade China — just a little way. And crush ISIS. You know, the way you did Czechoslovakia and Hungary in the glory days.

That should take care of the world.

At home I will have the most flexible of policies, based on the latest polling. If you are in favor of abortion, tell Gallup and you will get them.

Want the Ten Commandments on the wall of the Capitol? No problem if you can produce a convincing poll, preferably written on stone tablets.

What is democracy but a craven pursuit of votes through polling? Go democratic all the way, I say.

Wait until you hear some of my appointments. How do you fancy Donald Trump for secretary of state? Here is someone who will appreciate my tough-guys-are-always-right policy.

Before I announce my candidacy, I will perfect my Israel strategy. I am leaning toward giving honorary citizenship to Benjamin Netanyahu, so that I can make him my national security adviser. Why should Congress claim Bibi as their own? I will have goodies to offer him that will beat whatever John Boehner and Mitch McConnell can do. For starters, how about a hard pass to the White House and a regular chance to be on the Sunday talk shows?

Darrell Issa is my choice for ambassador to Libya, in recognition of his Benghazi studies.

Finally, my coup de grace: immigration. Simple, no one will want to live here when I am in the White House. — For the Hearst-New York Times Syndicate

Nuclear Power under Threat

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On the face of it, the nuclear power industry should be enjoying a boom, reveling in its extraordinary safety record and the fact that it is a carbon-free way to make electricity.

But all is not well in atom land. In fact, things are dismal. Only five nuclear plants are under construction, and they are having birth pains as schedules slip and costs rise.

One plant, Vermont Yankee, has been taken out of service and others are on a watch list. This is happening not because of safety or end-of-life, but because cheap natural gas is undermining the economics of nuclear.

The market has spoken and it has determined that gas is cheaper in the short term, and wind and solar, though limited, enjoy social acceptability and declining costs.

The mighty Exelon Corporation is trying to save three, and maybe more, of its nuclear plants with a political fix; arguing that nuclear is a value proposition – its value to the community will continue long after the gas boom has fizzled. It is an argument that might have been made to save commuter railroads in the heyday of the automobile.

But that is not all that challenges nuclear. Despite its environmental advantages in a time of climate change, the public has been steadily turning against nuclear, persuaded by a relentless campaign that has been waged by opponents like the Union of Concerned Scientists and Natural Resources Defense Council and by Japan’s Fukushima accident following an earthquake and a tsunami. Wrongly, it is believed this resulted in lives lost: Many lives were lost to flooding, but not to radioactivity release.

But the public has absorbed a fear of nuclear, unless it is associated with the Navy. That was reflected this month, when a Gallup poll revealed that only 51 percent now support nuclear, as opposed to a traditional divide of 60 percent for and 40 percent against. It is hopeless to expect a big swing to nuclear with this kind of public reaction. The current slim majority favoring nuclear falls far short of a call for action.

More, the nuclear industry has fair share of bad news of its own which does not help the public love the atom.

The San Onofre plant in California was closed down because new steam generators were defective, and the owners decided it was not worth the hundreds of millions it would cost to fix things. Cost overruns and delays, once blamed on environmental opposition, now are almost always a result of problems in the construction.

Much hope has rested on two new reactors being built by the Southern Company in Georgia. Known as Plant Vogtle Units 3 and 4, there are delays and cost overruns and the utility is in court with the prime contractor, the eponymous Westinghouse Electric Company. Although the Southern Company is determined to complete the reactors and under its feisty chairman, Tom Fanning, possibly to build more, the costs are rising.

Just a few months ago, there was hope that new reactors — smaller, mass-produced power plants — were in the pipeline. But now the industry is convinced the next reactor design will have to be developed outside of the United States; probably in Asia, where both China and India are working on radical new reactors, far from today’s light water plants — 100 of them — operating in the United States.

The U.S. challenge is not science or engineering – we have designs aplenty and great nuclear science – but regulation. The Nuclear Regulatory Commission (NRC) – which protects public health and safety — is not equipped to license a new reactor, and it is believed that a new reactor type would have to spawn a whole new regulatory bureaucracy. One aspirant with a new nuclear design says ruefully, “It’s as though the FAA had recertified every aspect of flying when the jet engine came along.”

The NRC, even its staff admits, is slow and ponderous. What they don’t admit is that the commission is not only protecting the public, by making sure that today’s reactors are safe, but it’s also preventing the public from having better nuclear power in the future.

For the industry the problem is not only the time it would take to bring a new reactor through licensing, but also the cost. The applicant, not the government, pays for the NRC to license a reactor. Some say that cost could run towards a billion dollars.

Considering this situation, U.S. leadership in reactor technology is doomed. — For the Hearst-New York Times Syndicate

Birth of an Institution in Boston

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Do think tanks really think? It’s not that these organizations — mostly centered in Washington, D.C., but also scattered across the country – don’t harbor some fine minds among their scholars and fellows, but the problem is we know what they think — and have often known for a long time. The rest is articulation.

Among Washington think tanks, we know what to expect from the Brookings Institution: earnest, slightly left-of-center analysis of major issues. Likewise, we know that the Center for Strategic and International Studies will do the same job with a right-of-center shading, and a greater emphasis on defense and geopolitics.

What the tanks provide is support for political and policy views; detailed argument in favor of a known point of view. By and large, the verdict is in before the trial has begun.

There a few exceptions, house contrarians. The most notable is Norman Ornstein, who goes his own way at the conservative American Enterprise Institute (AEI). Ornstein, hugely respected as an analyst and historian of Congress, often expresses opinions in articles and books which seem to be wildly at odds with the orthodoxy of AEI.

A less-celebrated role of the thinks tanks is as resting places for the political elite when their party is out of power. Former U.N. ambassador John Bolton, rumored to be favored as a future Republican secretary of state, is hosted at AEI. National Security Adviser Susan Rice was comfortable at Brookings between service in the Clinton and he Obama administrations. At any time, dozens of possible office holders reside at the Washington think tanks, building reputations and waiting.

My interest in think tanks and their thinkers has led me to what might be developing into a think tank, although it’s too early to say. It’s so early that it has no headquarters, secretariat or paid staff. But this nascent think tank has gathered a loose faculty from a coterie of public intellectuals, mainly in and around Boston, and abroad in Hanoi, Tokyo and Berlin.

It’s called the Boston Global Forum. Formed in 2012, it’s led by two very different but, apparently, compatible men: Michael Dukakis, former Massachusetts governor and Democratic presidential nominee, and Nguyen Anh Tuan, who founded a successful internet company in Vietnam and now lives in Boston.

The concept of the forum is to study and discuss a single topic for a year. Last year, in forums and internet hookups between Boston and Asian and European cities, the topic was security in the South and East China seas, where war could easily erupt over territorial disputes. After a year of discussion, the participants concluded that a framework for peace in the region needs to be established and that current international arrangements and organizations don’t go far enough in that direction. This year’s topic is cybersecurity.

The Boston Global Forum has strong ties to the faculties at Harvard and Northeastern University, where Dukakis is a professor. Most forum meetings take place on the Harvard campus. Two of the forum’s most conspicuous champions are Harvard professors Joseph Nye and Tom Patterson. Patterson’s office at the John F. Kennedy School of Government serves as a kind of de facto headquarters.

This new entrant into the think tank cohort is very East Coast-tony, and very energetic. This year it has plans for meetings in Vietnam, Tokyo and somewhere in Europe, and has attracted media heavyweights like David Sanger of The New York Times and Charles Sennott, one of the founders of the online GlobalPost.

As the Boston Global Forum is a new think tank, questions abound: Will it get funding? Will it find premises and staff ? Will it get public recognition?

The big question about anything that looks like a think tank is, will thinking happen there? Will the Boston Global Forum be a crucible for big ideas? Or will it, like other think tanks, develop its own binding ideology?

Will the Boston Global Forum become, like so many, a smooth propaganda machine? Or will it be a place where the outlandish can live with the orthodox?  — For the Hearst-New York Times Syndicate

The Rare Earths Problem: A U.S. Solution

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Rare earth elements – there are 17 of them – have the world’s manufacturing by the throat. They are, as John Kutsch, director of the Thorium Energy Alliance, says, “the great multipliers.” They make metals stronger, generators more efficient, cell phones smaller, television sets sharper, and laptops lighter. They are, in their way, as important to modern manufacturing as energy.

At one time, the United States was a major supplier of rare earths — with supplemental supplies coming from countries around the world, including Australia and Brazil. Today, 90 percent of the rare earths the world uses come from China.

The use of rare earths is as important in lasers and jet engines as it is in aiming cruise missiles, which means the United States, and the rest of the world, has a huge vulnerability: China controls the supply of new war-fighting material. All U.S. defense manufacturers – including giants Boeing, General Electric and Lockheed Martin — are dependent on China. Now China is demanding that U.S. companies do more of their manufacturing there: China wants to control the whole chain.

Yet, as the rare earth elements industry is quick to assert, rare earths are not rare; they are scattered generously throughout the world. So why China’s dominance?

China has three main advantages. The first is that in 1984, leader Deng Xiaoping adopted a major initiative, the so called 863 Program, to move China from being a simple supplier of raw materials and products, enhanced by cheap labor, to being an industrial powerhouse and scientific giant. Rare earths were one of the areas singled out in the program.

The second advantage is that the Chinese ignored – and, to a large extent, still do — the environmental costs of rare earths’ extraction. The environmental damage is described by those who have been to one of two major Chinese sites, which have a combined population of 17 million, as catastrophic, with mountains bathed in acid to remove the sought-after rare earths, resulting in lakes of acid.

China’s third advantage is a natural one: It has a lot of ionic clay, which contains rare earths without the associated uranium and thorium.

About the time China was ramping up its plans to dominate the world rare earths market, the United States, in conjunction with the International Atomic Energy Agency in Vienna, began to regulate so called source materials. These are materials which, at least in theory, could be fashioned into weapons. In reality, those associated with rare earths are not in sufficient quantity to interest potential proliferators.

But the regulations are there. Many in the rare earths elements industry believe that it was these regulations — particularly as affecting thorium — that crippled production around the world and essentially closed down the U.S. industry, just as demand was escalating.

There is a commercial market for uranium. While hardly any thorium is used nowadays, it was once used in some scientific instruments and mantles for lighting. Thorium is akin to uranium in atomic weight, and it is a fertile nuclear material. That means that it can be used in a nuclear reactor, but it has to be ignited by a fissile material, such as enriched uranium or plutonium.

Thorium is radioactive, but mildly so. It is an alpha emitter, which means it can be shielded with tissue paper and will not penetrate the skin. However, it has a half-life of 1.5 billion years.

The answer, according to James Kennedy, a science consultant and rare earths expert, is to develop a reactor using thorium instead of uranium. This reactor, called a molten salt reactor, is inherently safe, say its passionate advocates, and would be a better all-around nuclear future. The technology was pioneered by one of the giants of the early nuclear age, Alvin Weinberg, at the Oak Ridge National Laboratory, but abandoned under pressure from enthusiasts for light water reactors, the kind we have today.

The Thorium Energy Alliance believes that the United States and other countries should develop a cooperative to source rare earths from the existing mining of phosphates and metals and store the thorium until it becomes a useful fuel. A bill to do this is making its way through Congress, but its chances are slim. Short of putting a value on thorium and isolating it, the chances of a rare earth elements industry reawakening in the United States, or elsewhere, is rare. — For the Hearst-New York Times Syndicate

A Third Way for Immigration: More and Less

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Mark Jason, director of the Immigration Tax Inquiry Group, is trying to fix immigration.

Mark Jason, director of the Immigrant Tax Inquiry Group, is trying to fix immigration.

Is there a big, new idea about immigration? Is there a way of looking at the issues beyond polarization? Is there a way of stabilizing the lives and the living conditions for the estimated 11 million illegal immigrants who hide in the shadows of society, living in fear, and costing the United States as much as $100 billion a decade in services and lost taxation revenue?

Is there a way of making those who employ undocumented workers, or those with dubious papers, from falling into unintended criminality themselves? Is there a “third way?”

The Immigrant Tax Inquiry Group (ITIG), based in Malibu, Calif., has been pondering the implications of taxation in the immigration debate. It was formally established as a not-for-profit foundation in 2010.

ITIG’s idea is big — a new front, in effect. It brings the immigrants out of the shadows, identifies them and gives them respect, while mitigating the impact on the rest of us. It also soothes those who want nothing to do with paths to citizenship.

As I understand it, the ITIG proposal is simple: cater to the illegal worker by issuing a 10-year, renewable work permit and taxing the employer at 5 percent of the wage for employing one of these workers. This would bring the undocumented worker, and his or her family, out of the shadows, provide revenue for their cost to society, and enable them to have dignity and security without citizenship. I can attest, from my own reporting, that not every immigrant wants citizenship and a vote.

The plan has been incubating for decades among a coterie of thinkers who want a practical humane solution to the problem.

Mark Jason, executive director of ITIG, knows something about immigrants. He was educated partly in Mexico and has worked there to improve conditions so fewer people will take the long walk north.

Over the years, Jason, has discussed his ideas with people as disparate as Ronald Reagan (a family friend, when Reagan was governor of California), Cesar Chavez, the National Farm Workers Association founder and leader, and recently retired Rep. Henry Waxman (D-Calif.).

Jason told me Reagan was interested, although this was before he became president and enacted his own immigration plan in 1986, which was straight amnesty. Chavez, he said, was more concerned with conditions in the fields than with the legal status of immigrants, partly because many farm workers come on contract. Waxman, who was a prolific legislator, liked Jason’s ideas and encouraged him to “think big.”

The ITIG plan is put forward in a detailed report on the Web, complete with revenue projections in graphs and charts.

Jason has worked as a tax consultant, an IRS agent and a farmer in Mexico, where he helped establish a honeydew melon farm near Puerto Vallarta. The farm has three missions: produce and export melons (350 tons in 2014), teach the local farmers better practices, and end the incentive to leave.

What frustrates Jason is the difficulty he has had in getting his ideas circulated in the immigration debate. Although the report by ITIG is detailed and clearly represents an important new dimension in the debate, it has not yet gotten traction in Congress nor, more surprisingly, among immigrant advocacy groups.

The plan, under which workers would get a 10-year work permit, get drivers licenses where states allow it, and travel freely between the United States and their country of origin. It would also convey the benefits enjoyed by American families on the immigrant family, such as education and the protections of the law.

Jason is using his own resources to push the plan. “It is not a panacea, but a practical way to get people out of the shadows and into the economy,” he says.

He sees his plan as the solution not to the whole immigration dilemma but as a recognition of reality; as a way of protecting society from the cost of a shadow population. Jason believes it creates an asset where there is a liability — but real legal status is not changed.

Jason told me his wife fell in love with him because “she said I liked to fix things.”

Immigration is a big job for a handyman, but Mark Jason is at work.  — For the Hearst-New York Times Syndicate

The Changing Face of Electricity Supply

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Management theory says, “Stick to what you know. Don’t stray from you core business.” That’s all well and good, but what happens when the core is changing and it’s no longer a reliable source of profit and continuity?

At the top of my list of companies that didn’t make changes fast enough is one that is still around, but is far different from the ubiquitous giant it used to be: Western Union.

Until change swept away its core business, this was the company that had an iron grip on the business of leased wires, cables and telegrams. Western Union was the communications giant of its day, but it was overwhelmed by disruptive technology — technology it failed to grasp.

Gone are the days when it was a household word and anyone who wanted to move anything electronically, from newspaper copy to birthday wishes, used Western Union. Today it’s a money transfer service.

Western Union could not have foreseen the Internet, but it could’ve grasped it. What’s more, the telegraph business began to falter just about the time the overnight package business exploded.

So here’s the question: Why didn’t Western Union, which already blanketed the country with offices and messengers, gravitate to the parcels delivery business?

The answer is that the history of old-line companies adjusting to new realities is not good. Being willing to change and changing are not the same thing.

These are issues that are beginning to buffet the nation’s electric utilities, as they face the disruptive effects of new technologies. So far the winds of change are blowing lightly, just a zephyr.

A conference in Washington on April 9-10, organized by Public Utilities Fortnightly, will examine the issue of the disruptions that are transforming the industry. Ken Silverstein, editor in chief, says, “My own research is showing that people at all levels of all utilities are thinking about the new energy paradigm. But thinking about it and acting are two different things. Some utilities are really moving aggressively, and others are far more deliberate in their approach.”

The immediate agents of change encroaching on the electric utilities are rooftop solar, installed by homeowners, and microgrids, where a group of alternative generators are linked together and hook into the utility grid as one entity.

Rooftop solar generation is growing exponentially, pushed by tax advantages, politics and the preference of individuals to embrace green alternatives. Large vendors, such as SolarCity, have made a business of leasing rooftop collectors to homeowners. Self-generation often makes economic sense, particularly if surplus electricity can be sold back to the electric grid: a practice called “net-metering.”

But net-metering is distressing to the utilities because the self-generators have become customers of convenience and don’t contribute to the maintenance of the grid on which everyone relies. Long term this means high rates for those who can’t go solar, like apartment dwellers.

This challenge to the economics of the grid comes at a time when the utilities are implementing their own changes in the form of the so-called “smart grid,” which incorporates remote meter-reading and data collection on user habits, and offers the chance for the utilities to offer customers advantageous off-peak rates, known as “demand-side management.”

The Washington conference is likely to hear how some utilities are hoping to embrace the changes while others are hoping that regulation will save their core business.

Among those big utilities that have embraced the changes that are coming is NRG Energy, a holding company which owns two utilities, and San Diego Gas & Electric.

New players on the horizon suggest that rooftop solar may just be the beginning of what is shaking up the traditionally staid utility industry. These include Google and Tesla Motors, which are both investing in the renewable future and which may not care who they push aside.

The question for the utilities: Can they adjust fast enough to save the economics of the grid and honor their obligations to serve? They might want to ponder the words of David Lloyd George, the British prime minister, who said: “It is dangerous to leap a chasm in two bounds.”

The Environmental Voices in Obama’s Ear

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In the South they ask, “Who’s your daddy?” In the North, “Where did you go to college?”
In Washington we ask this very real question, “Who’s advising him?” Washington believes in advisers, who are often the authors of big decisions made by others.
When George W. Bush was running for president the first time, I raised the question about his lack of knowledge in foreign policy. One of his staunch supporters countered, “He’ll have good advisers.”
Advisers come in all shapes and sizes in politics. A trusted aide may shape a senator’s understanding of an issue, and set the legislator on a path that later might be regretted but cannot be reversed. “Flip-flop” is a deadly accusation in public life.
When President Obama makes a decision, one wonders on whose advice? Who started the locomotive rolling down the track?
This week, one wonders who led Obama to endlessly delay a decision on the Keystone XL pipeline, which should have been a rather mundane issue until he was backed into vetoing a congressional effort to move the project forward?
There are 2.5 million miles of pipe buried in the ground in the U.S.,190,000 of which carry crude oil. The Keystone XL pipeline would have carried crude for 1,179 miles. It should have been a no-brainer for the State Department, which has jurisdiction because a foreign country, Canada, is involved. It is not hard to make a pipeline safe, and this one would be engineered as no other has.
But a core of dedicated environmentalists saw it as a wedge. Their target was not then and never has been the pipeline, but rather the Alberta oil sands project, where much of the oil would originate. By cutting off deliveries of the oil to the U.S. market, they hoped to wound the project and eventually close it down.
I am no fan of the oil sands – which used to be called “tar sands” – project. I think it is abusive of the earth. It involves massive surface mining and has so scarred the region that the great pit can be seen from space. It is also a contributor to air pollution because the sands have to be retorted with natural gas.
It is not a pretty business wringing the oil from the sands. However, not building the pipeline will not close down the oil sands project as environmentalists have hoped. Only low prices can do that.
The Canadians are angry. They feel betrayed by the White House and stigmatized by outside forces like the Natural Resources Defense Council (NRDC), which has been a relentless antagonist of the pipeline and the oil sands project.
The question is who persuaded Obama? In November 2011, Canada’s minister of natural resources, Joe Oliver, told me at an energy meeting in Houston that he had been told privately that the pipeline deal was done, and he was expecting Obama to sign off on a State Department decision in weeks.
But it did not happen. One or more people in the White House – Obama takes advice from a small circle of advisers in the White House rather than his cabinet secretaries — was able to sow doubt in the president’s mind about the pipeline.
The results: More oil moves by rail car which is resulting in accidents in Canada and the United States. An ally is offended, and there is bad blood that will affect other trade issues. Thousands of construction jobs in the Midwest are lost. Obama looks bad: the captive of a very small part of the constituency that elected him.
There is an echo here of the folly of the president in abandoning the Yucca Mountain nuclear waste repository. On the surface, Obama bowed to the wishes of Harry Reid, then Senate majority leader. It has been accepted by the nuclear industry as a cold, hard political gift to a vital ally.
But as time has gone on, the nuclear spent fuel has piled up at the nation’s power plants, as the cost of the abandonment has risen – it stands at $18 billion. One has to wonder whether one of Obama’s advisers, with an agenda of his or her own, did not whisper to the president, “Harry Reid is right.”
There are no winners on the pipeline issue, just as there were no winners on Yucca Mountain, except those who are celebrating in places like NRDC. On sparkling, organically grown apple juice, perchance? — For the Hearst-New York Times Syndicate

New Miracle Commodity: None Other than Bamboo

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In a time of new materials, a very old one is sneaking into our lives. You may have noticed that bamboo is making an appearance everywhere. There are bamboo floors – I hear there is one in the Holman Lounge of the National Press Club in Washington, D.C.— cutting boards and walking sticks.
But Troy Wiseman, a Chicago entrepreneur, sees future growth for bamboo in clothing, paper and activated charcoal — which has hundreds of industrial and medical uses. And he sees it as the next big, green forest products industry.
Bamboo is a grass whose fiber is similar to timber. After a six-year, initial growing period, it can be harvested yearly. It can be cultivated on land abused by clear-cutting, poor crop rotation and over-grazing. For the soil, bamboo is a healing grass.
The Chinese have known of the wonders of bamboo for centuries. They construct houses from it, eat it (Giant Pandas will eat nothing else), make baskets, chopsticks, hats and weapons from it. In Hong Kong, bamboo scaffolding is used to erect skyscrapers; in Mainland China, this practice has been limited to five stories.
Yet in the West, bamboo has traditionally been thought of as a curiosity, not a valuable agricultural commodity. Wiseman, who is chief executive officer of EcoPlanet Bamboo Group, aims to change that with large-scale bamboo production, which also has positive environmental and social impacts.
There are around 1,200 species of bamboo, and some have given it a bad name. Gardeners have reason to be wary of bamboo which, if they plant the wrong variety, can grow like kudzu and is a virulent invasive species.
Wiseman’s company plants better-behaved “clump” bamboo that is native to and approved by the country he is operating in. EcoPlanet Bamboo has established two plantations in Ghana, and one each in South Africa and Nicaragua. He is negotiating to make a big land purchase in Asia that will produce bamboo for clothing, paper and activated charcoal, and will convert the plant remains into fuel for electric generation.
Wiseman describes himself as a “capitalist with a conscience,” and has the enthusiasm of a tent preacher when it comes to the business opportunities and the social and environmental benefits of bamboo farming. For bamboo plantations, you ideally need hot, wet weather – the very areas where old-growth forests are most under threat.
He describes the financial rewards, the jobs for third-world laborers, and the saving of forests as “my three bottom lines.” But he is quick to emphasize, “Don’t get me wrong, we’re a capitalist company. We’re about profit, but there’s a right way to do it.”
As a businessman, Wiseman can claim a record. He told me in an interview that he had co-founded the global B.U.M. clothing line which went public, a private equity-based financial services firm, which financed, among other things, a company that made “turducken,”which is a dish consisting of a deboned chicken, stuffed into a deboned duck, which is stuffed into a deboned turkey.
A competitive wrestler in his youth, Wiseman says he is more excited about grappling with the challenges of bamboo than anything else. He says he has interest from a large number of Fortune 500 companies, including retailer Costco and paper giant Kimberly Clark. Bamboo has natural anti-bacterial properties, which is why bamboo cutting boards are desirable in the kitchen — my wife has one. But these properties, it is believed, will make bamboo fiber popular for bandages, diapers, tissues, sanitary napkins and underwear.
I have not knowingly worn bamboo-fiber clothes, but bamboo and I have a history. As a boy, before the days of hobby shops, I made kites using bamboo slats for the frames. Bamboo was light, strong and available. Little did I know that I was continuing a fine Chinese tradition of kite making and flying. My kites were rather primitive — bamboo frame, brown paper sail, and glue made with egg white or flour paste — but they flew.
Now I am captivated not by kites, but whether the world has overlooked a valuable and beneficial source of wood and fiber substitute. Troy Wiseman thinks so, and I am inclined to believe it. Incidentally, my bamboo walking stick (which cost $24 at Walgreens) is light, good-looking and maybe a trendsetter. — For the Hearst-New York Times Syndicate

 

The New Work: The Individual as Microbusiness

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The genius of Uber is dumbfounding. I’m not talking about what it pays its drivers (not enough), whether it’s putting taxis out of business (it is). I’m talking about the sheer brilliance of unleashing the value stored in the family car. Likewise, Airbnb which isn’t denting the hotels, but is causing tax collectors to go apoplectic.
These Internet companies are unleashing the value that families have had hidden in their driveways and spare bedrooms.What’s next? Your guess is as good as mine. If your guess is right, there are folk over at Google who’d like to talk to you.
Airbnb (which connects people looking for accommodation with those offering it in their homes) may be a tad more exciting than Uber (which puts private car owners in the transportation business) because it is catering to a specific traveler market. Hotels have become so unpredictable in their opportunistic pricing that private travelers are happy to leave them to business travelers who are less price-sensitive.
Then there’s GrubHub, which offers free online ordering from thousands of delivery and takeout restaurants. It may well be the next big thing in the market.
These are three examples of how the Internet, which giveth and taketh away, is reordering the economy. They’re beacons for how the economy might replace the jobs that are being lost to computers. They also offer extra income or full employment for people who don’t have marketable educations: driving a car and keeping a pretty home don’t require college degrees in science.
The nature of work is changing, and one of the consequences is that more of us are becoming self-employed: private contractors.
The Internet enables a large number of artisan skills to be marketed. I’ve just found an online advertisement for a dressmaker. Long before Walmart and “Project Runway,” dressmakers abounded. Women would ask their neighborhood dressmaker to “run up something” for a special occasion or whatever. Mass retailing, plus the difficulty of marketing beyond word-of-mouth, pretty well ended that, but it may come back. Now you may live in Atlanta, but you can order a bridal gown from an Etsy dressmaker in Seattle.
The Red Truck Bakery & Market, housed in an old gas station in Warrenton, Va., sends its Meyer Lemon and other goodies across the country. Artisanal baking meets the Internet.
Years ago, a friend of mine developed a knit teddy bear. It was a beautiful thing; tactile, safe for small children. I don’t recall whether my friend had gotten around to naming her stuffed bruin, but he was a darling — although I don’t know why stuffed bears have to be male.
Anyway the said unnamed, unsexed, stuffed bear didn’t make it into many young arms because of marketing. The big retailers didn’t want it. Things are very competitive in Bear Land, and Paddington Bear and company don’t want other teddy bears crashing their picnic on the store shelves.
That was more than 30 years ago. Today, Bear X could be sold on the Internet. Now I’d wager the big chain retailers would come begging — offering the little thing a whole shelf for itself.
The miracle of today is that it could happen differently. The concomitant fact is that we’re going to need more cottage industry and more self-employed contractors because the jobs of yesterday are disappearing, and the companies are less and less inclined to hire permanent staff.
Years ago, the jewelry business moved offshore; now it’s moved to American homes. It’s possible for a creative person to make jewelry at home and sell it online.
A new age of self-employment is at hand. Recently, I’ve worked with two inspiring millennials. One is a gifted and filmmaker, and the other a computer wizard. Both are making a living, and neither has given any serious thought to getting a job in the conventional way.
It’s not the age of small business, but microbusiness: the individual with something to sell, whether it’s artisanal furniture or a skill. The millennials seem to know this instinctively, the rest of us are learning it.
Want to hire a veteran journalist who works from home? Call me. — For the Hearst-New York Times Syndicate