For many years, the democrats – at the urging of the far-left anti-war, anti-nuke, anti-business and anti-growth environmentalists – have deliberately ignored the expansion of our nuclear energy generation capacity as a means for energy independence.
Energy independence which would have assisted in the prevention of the rise of Saudi-financed world-wide Whabbism and radical Islamo-fascism. Energy independence which would have reversed the outflow of petro-dollars that financed the acquisition of major corporate and real estate assets in the United States, not to mention the purchase of Treasury Bonds. While, at the same time, providing low-cost energy to power our own industrial endeavors.
So why is a far-left President suddenly switching positions – away from the core values of his support base?
Bloomberg is reporting …
“President Barack Obama, acting on a pledge to support nuclear power, will propose tripling U.S. loan guarantees for new reactors to more than $54 billion, an administration official said.
“The additional loan guarantees in Obama’s budget, which will be released Feb. 1, are part of an effort to bolster nuclear-power production after the president called for doing so in his State of the Union address Jan. 27. In a conference call with reporters, Energy Secretary Steven Chu today announced a panel to find a solution to storing the waste generated by nuclear plants.”
“To create more of these clean-energy jobs, we need more production, more efficiency, more incentives,” Obama said in his speech. “That means building a new generation of safe, clean nuclear-power plants in this country.”
There are a few disturbing elements to this story …
Both the far-left political activists and the environmentalists have been infiltrated by socialists, communists and anarchists. This group has been devoutly anti-war, anti-nuke, anti-growth, anti-industry and would do or say anything to throw a monkey-wrench in the U.S. economy.
One, Barack Obama appears to be a committed far-left activist. So his promotion of the nuclear industry – big business by big corporations – as an adjunct to more inefficient, costly, unsustainable and somewhat unreliable green energy generation sources – definitely goes against type. That is unless he believes that the environmentalists will delay any project until their efforts delay the build-out and drive the project’s cost into the stratosphere -- where the cost of nuclear energy rises to a point where it is more in line with “green” energy sources.
Two, cost-effective energy generation capacity should be a self-financing effort. Traditionally paid for with long-term corporate and municipal bonds. Why the taxpayer needs to guarantee these loans is problematical. Perhaps it is only a device to protect Wall Street and financial institutions which would benefit greatly from these projects should they engage in the type of energy trading that is envisioned in a “cap and trade” environment.
Three, the nuclear energy industry – along with all energy generation enterprises – is heavily regulated by local, state and federal government agencies. Tightly controlled by tariffs, rules and regulations. Another way for the government to exert disproportionate command and control over one of the most significant drivers of the American economy.
Four, energy generation and distribution companies have always served as the unofficial tax collector for local, state and federal government entities. So the government has a vested interest in keeping prices high to generate additional tax revenues.
Five, no matter who provides the capital guarantees or the capital itself, the ultimate costs will be passed along to the rate-payers and distributed throughout the community Adding additional costs to pay back government guarantees only serve to increase the tax burden on the taxpayer as we all know that these funds will be sunk in the black hole of government and not used to reduce the taxes of the ratepayers.
Six, power generation plants in and of themselves are worthless without the means to distribute the energy in an effective manner. Thus we can anticipate an entirely new government effort in building-out the so-called smart grid to distribute energy. Another way for the government to exert command and control over the energy users by continual two-way monitoring of energy usage; with the possibility of controlling key usage of appliances, air-conditioners, heaters and other energy-intensive devices during peak hours.
The real problem is not capital, it’s the government’s interference and influence in the process …
Any rational observer of the industry knows that capital is not a problem – with or without third-party guarantees. Truth-be-told, the plant is the collateral for the loan because it will generate a continuing revenue stream on a reliable basis. How many foreign firms would be willing to invest in a secure cash flow stream? China? Saudi Arabia? Dubai? They have a lot more than $54 billion in investible cash that could be used to generate significantly higher yields than they are currently getting in alternative investments.
And it should be noted that both the permissions and costs are controlled by the government – and influenced by a legion of industry lobbyists who are used to buying politicians in bulk.
Bottom line …
The idea of America finally getting a cohesive energy policy and building out our nuclear capabilities to provide for low-cost clean energy is irresistible.
But there is something that stinks here. A rotting amalgam of special interests with a history of political shenanigans, financial chicanery and price manipulation. All guaranteed by taxpayer funds – with minimal return for the taxpayers.
That is, if you can believe a President who stands before the American public and lies – about transparency and accountability, about what policies were crafted at his urging and about his Administration’s actions in defending America from her enemies, both foreign and domestic.
Energy independence and the creation of clean, cost-effective and reliable energy sources is a great idea – long overdue. But it must be promoted by those who believe in capitalism and the free-market system. By honest brokers who can be trusted to provide the minimal regulation necessary to keep the players honest and competitive. Not to create numerous mini-monopolies which serve the government’s own interest and those of the special interests funding their campaigns.
Therefore, I would continue to look on these efforts with a suspicious eye – knowing Barack Obama and his cronies are, in all likelihood, pulling a fast one – while at the same time pandering to the special interests.
Reference Links …
“Nullius in verba.”-- take nobody's word for it!
“Beware of false knowledge; it is more dangerous than ignorance.”-- George Bernard Shaw
“Progressive, liberal, Socialist, Marxist, Democratic Socialist -- they are all COMMUNISTS.”
“The key to fighting the craziness of the progressives is to hold them responsible for their actions, not their intentions.” – OCS "The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius “A people that elect corrupt politicians, imposters, thieves, and traitors are not victims... but accomplices” -- George Orwell
“The key to fighting the craziness of the progressives is to hold them responsible for their actions, not their intentions.” – OCS
"The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius
“A people that elect corrupt politicians, imposters, thieves, and traitors are not victims... but accomplices” -- George Orwell