Should the U.S. Let GM Fail?

NYTimes | Momentum is building in Washington for a rescue package for the auto industry to head off a possible bankruptcy filing by General Motors, which is rapidly running low on cash.

But not everyone agrees that a Chapter 11 filing by G.M. would be the disaster that many fear. Some experts note that while bankruptcy would be painful, it may be preferable to a government bailout that may only delay, at considerable cost, the wrenching but necessary steps G.M. needs to take to become a stronger, leaner company. David Brooks says we should let the market process work, let GM file for bankruptcy, and then see what restructured auto company rises from the ashes. GM, Ford, and Chrysler are reaping the rewards of bad management, stupid product decisions, and giving away too much to unions.

Democrats in Congress are pushing for a bailout, but this will simply confirm and support the accusations of Republicans - that the Congressional majority represents a new generation of "tax and spend" liberals - while only deferring the inevitable crash of the Big Three U.S. auto companies, and wasting taxpayers' money.

Would Japan let its auto industries fall into ruin? Would Germany? Only in America do you have partisans arguing that letting this happen is good economic policy. Should a modern nation let its productive economic or industrial base collapse on principle?

World Energy Outlook 2008

This report, and economics more generally, completely lacks the understanding that those numbers are not only quite unproven but irrelevant and useless by themselves, for the important number is not “how many barrels are in the ground” but “how many of those barrels will be gained at a significant energy profit for society.” In effect, the notional figure of 106 mbpd gives the impression that oils net benefit to society will continue and even grow into the future.

Neoclassical economics and economists have reigned supreme despite their dismal track record of late, as evidenced by governments turning to the same economists who got us into the credit crisis situation to get us out. It used to work better: economies expanded simultaneously with an expansion of economic departments and economic theory. It looked like the theories worked, although since more and more oil was being pumped out of the ground perhaps any theory could 'seemingly' work. Capitalism may be a giant Ponzi scheme once fueled by ever more investors and ever more oil at its base, but this has ceased, most likely forever.

The economic theories became ever more analytically elegant as they got further and further from reality. Our most prestigious economics departments not only did not teach very much about oil or grain or other sources of real wealth but increasingly not even about money. Rather their focus was far too often complex econometric models using rather stupid starting assumptions. Acceptance of graduate students was increasingly taken based on their math skills rather than their ability to understand real commodity paths. Wall Street followed the lead of our major economists. As we have seen in other disciplines, such as ecology, there has been massive conflation of mathematical and analytical rigor with scientific rigor.

Full Monty at the Oil Drum.

America will be the First Undeveloped Country

The Political Problem

Many groups are working on the problem of sustainability. I'm an engineer so I look at sustainability as an engineering problem. First, it would NOT look like Brundtland's meaningless, "feel good" definition. Ultimately, sustainability would require limits on human mobility, reproduction, and consumption.

For many years, thousands of members on my email lists have investigated all, or almost all, disciplines and historical examples of sustainability that others have suggested. With a couple of irrelevant exceptions (e.g., a religious sect that died out) not one example of an intentionally-sustainable (engineer's definition) society could be found.

The central problem that planet Earth faces today is NOT a problem of "running out of energy," or "overfishing," or "the wrong kind of farming," or "the depletion of aquifers," or "too much CO2 in the atmosphere," or [fill in the blanks]...

The problem that threatens to exterminate most higher forms of life on Earth — and soon — is the problem of "human behavior." Therefore, if one is searching for "solutions," one must look closely at what one sees in the mirror every morning. That's the central problem on planet Earth. It lives with all of us. WE ARE THE PROBLEM.

The problem of sustainability can be neatly divided into two sub-problems: 1) An engineering problem. 2) A political problem. [1]

The engineering problem

Even though the engineering problem is gigantic, its solution is fairly straightforward. We need so much of this type of food here, this much of that type of vaccine there, water can't be pumped from an aquifer any faster than that, wastes can't be discharged any faster than this, fishing can't exceed… And so on. Moreover, the problem must be approached globally due to the way our ecosystems are interconnected. Although the problem is immense, I think we could do it.

The political problem

A solution to the political problem of sustainability does not presently exist. Moreover, if we can't solve the politics of sustainability, then nothing else matters. That's Liebig's limiter: politics. To emphasize the point: if we can't solve the political problem, then more efficient PV panels, wind turbines, etc., won't help — and may make the die-off even worse.

Politics is where "evolutionary psychology" (EP) comes in. If a solution to the politics of sustainability can be found, it will be found by those who study human behavior via the scientific method. [2]

EP is a true science based on Neo-Darwinism, [3] which is the name of the modern theory of evolution, and it is the only scientific theory which explains how we became human.

EP attempts to explain mental and psychological traits — such as memory, perception or language — as adaptations, that is, as the functional products of natural selection or sexual selection. Adaptationist thinking about physiological mechanisms, such as the heart, lungs, and immune system, is common in evolutionary biology. Evolutionary psychology applies the same thinking to psychology. [4]

EP argues that our brains come from the factory with hundreds of built-in programs structured to solve prehistoric environmental problems. Throughout life, especially before age ~ 25, these built-in programs are updated by interaction with a person's environment and respond to stimuli from the environment, or from other parts of the body itself, to produce our behavior. In theory, human behavior can be explained by reflex-like brain algorithms.

EP aims to understand how and why our brains make the decisions that they do. EP is a true science unlike the "politics-in-disguise" disciplines of economics and sociology. [5] Therefore, EP represents the possibility of finding a humane solution for our present crisis while economics and sociology represent dead ends (literally.)

To reiterate: WE ARE THE PROBLEM. More energy, less fishing, less CO2, etc., won't solve the problem. Two methods exist to change human behavior: 1) Force. 2) Persuasion.

I think that finding a humane solution for our present crisis is incredibly important. That's why I have dedicated the last fifteen-or-so years of my life to it. The alternative is horrible. No solution yet, but perhaps tomorrow...

References

[1] Politics: social relations involving authority or power. More at http://www.warsocialism.com/p1.html

[2] http://www.ehbonline.org/

[3] http://en.wikipedia.org/wiki/NeoDarwinism

[4] http://en.wikipedia.org/wiki/Evolutionary_psychology

[5] http://www.warsocialism.com/economic.htm

Orlov -- Five Stages of Collapse Updated

Energy Bulletin | In January of 2008, I published an article on "The Five Stages of Collapse," in which I defined the five stages, and then bravely stated that we are in the midst of a financial collapse. And ten months later it doesn't seem that I went too far out on a limb this time. If the US government has to lend banks over 200 billion dollars a day just to keep the whole system from imploding, then the term "crisis" probably doesn't do justice to the situation. To keep this game going, the US government has to be able to sell the debt it is taking on, and what do you think the chances are that the world at large will be snapping up trillions of dollars of new debt, knowing that it is being used to prop up a shrinking economy? And if the debt can't be sold, then it has to be monetized, by printing money. And that will trigger hyperinflation. So, let's not quibble, and let us call what's happening what it looks like: "financial collapse".

So here are the five stages as I defined them almost a year ago. The little check-mark next to "financial collapse" is there to remind us that we are not here to quibble or equivocate, because Stage 1 is pretty far along. Stages 2 and 3 - commercial and political collapse, are driven by financial collapse, and will overlap each other. Right now, it is unclear which one is farther along. On the one hand, there are signs that global shipping is grinding to a halt, and that big box retailers are in for a very bad time, with many stores likely to close following a disastrous Christmas season. On the other hand, states are already experiencing massive budget shortfalls, laying off state workers, cutting back on programs, and are starting to beg the federal government for bail-out money.

Even though the various stages of collapse drive each other in a variety of ways, I think that it makes sense to keep them apart conceptually. This is because their effects on our daily life are quite different. Whatever constructive ways we may find of dodging these effects are also going to be different. Lastly, some stages of collapse seem unavoidable, while others may be avoided if we put up enough of a fight.

Onward Christian Soldiers

Don't miss Preznit Bush's cameo at ~4.5 minute mark. German with subtitles. American Missionaries and Generals in the American Military are working together in order to convert Helpless Muslims in Iraq to Christianity. Many of these Missionaries which are Supported by the Bush Administration are from Evangelical Christian Groups Such as Southern Baptist Convention, World Help and other Evangelical Christian Organizations. They go into Iraq as aid workers in Disguise or as American Private Contractors working in Iraq. Many of these people have been given support and Protection from American Generals in Iraq by providing them Housings in Americans Bases in Iraq to work from. When ever the American Military goes into a Village or a Town in search and destroy Mission these missionaries follow them and hand out Pamphlets promoting Christianity and also Also Anti-islamic material to the helpless Muslims in Iraq. Many of them follow the American Military as well in their rutine Night raids where the American Soldiers Kills or detains Muslim males from the families, Iraq is a traditional Society and most of the Support a family recieves is from the Male, and once there is no Male gaurdian for the Family the family does not have a chance for survival. Many Muslim Women and families are being taken advantagae of by these American christians, since they provide them with food and Shelter or Money in Exchange for the Bible and Christianity

Inclusion...,

Black Commentator | The present-day contentious debate between black and queer communities, concerning what constitutes a legitimate civil rights issue and which group owns the right to use the term, is both fueled and ignored by systemic efforts by our government that deliberately pit both groups against each other rather than upholding the 13th and 14th Amendments to the U.S. Constitution that afford each of these marginal groups their inalienable rights.

While it is true that the white LGBTQ community needs to work on its racism, white privilege, and single-issue platform that thwart all efforts for coalition building with both straight and queer communities of color, the African-American community needs to work on its homophobia.

The blame of the passing of Proposition 8 should not be placed on the shoulders of blacks, Latinos or even religion, but rather the blame should rightly be placed on the shoulders of our government. To have framed our civil rights as a ballot question for a popular vote was both wrong-hearted and wrong-headed. If my enslaved ancestors had waited for their slaveholders to free them, predicated on a ballot vote we all wouldn’t be living in the America we know today.

What Is It To You?

Whistling Past the Graveyard...,

NYTimes | The Treasury Department on Wednesday officially abandoned the original strategy behind its $700 billion effort to rescue the financial system, as administration officials acknowledged that banks and financial institutions were as unwilling as ever to lend to consumers.

But with a little more than two months left before President Bush leaves office, Treasury Secretary Henry M. Paulson Jr. is hoping to put in place a major new lending program that would be run by the Federal Reserve and aimed at unlocking the frozen consumer credit market.

Washington Post |

In the six weeks since lawmakers approved the Treasury's massive bailout of financial firms, the government has poured money into the country's largest banks, recruited smaller banks into the program and repeatedly widened its scope to cover yet other types of businesses, from insurers to consumer lenders.

Along the way, the Bush administration has committed $290 billion of the $700 billion rescue package.

Yet for all this activity, no formal action has been taken to fill the independent oversight posts established by Congress when it approved the bailout to prevent corruption and government waste. Nor has the first monitoring report required by lawmakers been completed, though the initial deadline has passed.

"It's a mess," said Eric M. Thorson, the Treasury Department's inspector general, who has been working to oversee the bailout program until the newly created position of special inspector general is filled. "I don't think anyone understands right now how we're going to do proper oversight of this thing."

No defined direction, no oversight or accountability, and in the midst of a transition looking to maintain collegiality and bipartisanship by not holding the suspect accountable for their misdeeds. Your institutions of federal and fiduciary governance are just whistling past the graveyard. Remember people, you.are.on.your.own.....,

Oil War...,

During WW2 the US military consumed one gallon of oil per soldier per day. During the Gulf War (1990-91) that grew to 4 gallons per soldier per day. During Bush's war against Iraq and Afghanistan the rate grew to 16 gallons per soldier per day.

The Military Cost of Securing Energy report provides a critical analysis of the military cost of defending U.S.energy concerns overseas. The report estimates that the military spends up to 30 percent of its annual budget to secure access to energy resources internationally.

In 2009 alone, U.S. taxpayers will spend $103.5 billion on military resources used to secure access to petroleum, while investing only $1.26 billion in renewable energy sources. Including Iraq War-related costs doubles this figure to $215.4 billion dollars.

Full report:

The Summers Conundrum

The Nation | We all know in the backs of our minds that Barack Obama's incredible victory will eventually be followed by disappointment. But does it have to come so soon, and hit so hard? The answer will be yes, if Lawrence Summers is named treasury secretary in the president-elect's cabinet, as many observers believe will be the case. Summers was one of the key architects of our financial crisis--hiring him to fix the economy makes as much sense as appointing Paul Wolfowitz to oversee the Iraq withdrawal. And when you look at the trail of economic destruction Summers left behind in other crisis-stricken countries who sought his advice in the past, then "terror" might be a more appropriate word than "disappointment."

In light of all of the corruption, cronyism and devastation that have marked his career, Summers' statements about an under-polluted Africa or intellectually-inferior women no longer seem like provocative eccentricities but part and parcel of the Summers shtick. And now there's talk that President-elect Obama may hand the keys to national treasury to Summers--meaning that he'll be in charge of overseeing a trillion-dollar taxpayer bailout of the entire financial industry, a process already rife with conflicts of interest, cronyism and corruption--as detailed by Naomi Klein.

The bailout, as currently implemented, threatens to devastate America's economy much as Russia's and Lithuania's were devastated before. The idea that this is exactly the right time and place to put Larry Summers in charge of our economy's future is so frightening that it makes the Sarah Palin vice presidential choice seem almost quaint by comparison. Let's hope the rumors are wrong.

Psychology and Torture

NYTimes Think Again | The moment psychological knowledge of causes and effects is put into strategic action is the moment when psychology ceases to be a science and becomes an extension of someone’s agenda. Employing psychological skills in the course of any verbal interaction -– be it a domestic conversation, classroom teaching, a performance in a law court, or an interrogation -– will always have the effect of subordinating the facts and the truth of the matter to the desire for an outcome.

This is precisely the accusation traditionally made against the ancient discipline of which psychology is the heir -– rhetoric, or the art of persuasion. The earliest rhetorical manuals were handbooks for lawyers; they taught the tricks of the trade: how to make an argument, how to disguise the weakness of an argument; what to do when the facts are not on your side; how to turn a negative into a positive; how to modulate your voice; how to position your body; how to flatter, pander, intimidate and obfuscate; in short, how to play the jurors and the judge so that they will dance to your tune.

The emphasis is not on what is true, but on what works, what gets results even if the results are obtained by torture. If the testimony you are citing has been elicited by torture, just say that “it was in order to discover the truth that our ancestors wished to make use of torture” (”Rhetorica ad Herennium“). That is, first torture and then defend the practice with any argument that can give it “an appearance of plausibility.” Physical manipulation and verbal manipulation bleed into one another; they are only slightly different ways of clouding minds.

In his “Rhetoric,” Aristotle acknowledges that it would be better if we could make our case without either browbeating or flattering the audience; nothing should matter except “the bare facts.” Yet he laments, “other things affect the result considerably, owing to the defects of our hearers.” And since our hearers are defective it is incumbent upon us to suit our methods to those defects. The ancient art of rhetoric comes into being because men and women are susceptible to base appeals; that susceptibility has been mapped and scientifically described by the modern art of psychology.

The Gene - In an Identity Crisis

NYTimes Science | New large-scale studies of DNA are causing researchers to rethink the very nature of genes. They no longer conceive of a typical gene as a single chunk of DNA encoding a single protein. “It cannot work that way,” There are simply too many exceptions to the conventional rules for genes.

It turns out, for example, that several different proteins may be produced from a single stretch of DNA. Most of the molecules produced from DNA may not even be proteins, but another chemical known as RNA. The familiar double helix of DNA no longer has a monopoly on heredity. Other molecules clinging to DNA can produce striking differences between two organisms with the same genes. And those molecules can be inherited along with DNA.

The gene, in other words, is in an identity crisis.

Obama Faces Hard Political Decisions on Oil Depletion

Market Oracle | Washington insiders are well aware of oil depletion. It has been the subject of at least four reports funded by the United States Government, more than a dozen books, and multiple independent reports. Congress has taken testimony. Key figures in Washington have made speeches. Although there are some differences in the details, they are trivial in comparison with the broader perspective.

If you buy heating oil, propane, gasoline, or diesel fuel, you have already become a victim of oil depletion. Fuel prices are up. And they are up because the supply of oil failed to keep up with the growing demand for oil. That led to greed driven speculation. Oil prices over $140 a barrel. Then speculators discovered recessionary forces were driving down the demand for oil. Fear immediately replaced greed. The price of oil declined. Fast.

But do not be fooled by this temporary decline in the price you pay for fuels. OPEC will curtail production until demand picks up again. The fundamental trends have not changed. The supply of oil will not keep up with the demand for oil. Higher prices and shortages are in your future.

The Washington establishment's failure to acknowledge oil depletion is not one of ignorance. It has been a matter of political expediency. Politicians prefer to avoid bad news. Depletion means higher prices and possible shortages. Depletion adds confusion to the problems of global warming. Depletion lends support to America's presence in Iraq. Acknowledging oil depletion creates additional stress for our political system.

Yes. Oil depletion creates a real political dilemma for Barack Obama. If he acknowledges oil depletion – Peak Oil – then he will be expected to do something about it. Barack will have to challenge embedded political philosophy. He will have to find a way to change public opinion without causing a political crisis for the Democrats.

It will not be easy. Acknowledging oil depletion means finding more oil resources to keep our economy going. Shortages must be avoided. Put a lid on prices. Drill everywhere. No sacred environmental cows such as ANWR or the Santa Barbra channel. Make deals for oil with whomever is in charge of the big oil nations. Control the political outcome in the Middle East. Stay in Iraq to protect America's interests. Tough choices. High political risk.

But if Barack ignores oil depletion, then what? He runs the risk of cataclysmic failure . Because it is highly likely that sometime – during his administration - shortages and high prices will decimate America's economy. That means high unemployment. Out of control inflation. Voters will be mad as hell. Why – they will ask – did you let this happen to us?

Would Barack be less popular than George Bush? Doing nothing also means political risk.

Millions 'plan heating cutbacks'

BBC News |More than 4.5 million elderly people in the UK will heat just one room in their home this winter to try to reduce their energy bills, a survey suggests.

The survey of 1,263 adults aged over 60 by the British Gas Help the Aged Partnership found one in four would stay warm by getting into bed.

The organisations are urging the government to do more to cut the number of those living in fuel poverty.

The government said the issue was a priority it had started to tackle.

The partnership said its survey suggested that two million more people would warm only one of their rooms this winter compared with last year.

'Eat or heat'

Pollsters ICM interviewed a random sample of 1,263 adults aged 60 and above over a two-week period in October for the survey.

The campaigners estimate that one in four older people is "fuel poor" - meaning they are spending more than 10% of their disposable income in a bid to keep warm.

Mini nuclear plants to power 20,000 homes

UK Guardian Observer | Exactly eight months ago, I opined that the commercial release of compact nuclear reactor technology would signal the onset of very serious engagement by TPTB with the energy crisis. While I was of the opinion that this highly privileged technology would see deployment in the areas of fossil fuel search and extraction, as it turns out, it's going to go directly into baseload power generation.

Nuclear power plants smaller than a garden shed and able to power 20,000 homes will be on sale within five years, say scientists at Los Alamos, the US government laboratory which developed the first atomic bomb.

The miniature reactors will be factory-sealed, contain no weapons-grade material, have no moving parts and will be nearly impossible to steal because they will be encased in concrete and buried underground.

The US government has licensed the technology to Hyperion, a New Mexico-based company which said last week that it has taken its first firm orders and plans to start mass production within five years. 'Our goal is to generate electricity for 10 cents a watt anywhere in the world,' said John Deal, chief executive of Hyperion. 'They will cost approximately $25m [£13m] each. For a community with 10,000 households, that is a very affordable $2,500 per home.'

Deal claims to have more than 100 firm orders, largely from the oil and electricity industries, but says the company is also targeting developing countries and isolated communities. 'It's leapfrog technology,' he said.

The company plans to set up three factories to produce 4,000 plants between 2013 and 2023. 'We already have a pipeline for 100 reactors, and we are taking our time to tool up to mass-produce this reactor.'

Though this could be a question of pure economics, I think it means that the global energy crisis is even more acute than I have previously suspected.

China - "Ditch Unsustainable Lifestyles"

BEIJING (AFP) – Chinese Premier Wen Jiabao and a top UN official urged industrialised nations Friday to alter their lifestyles and not let the global financial crisis hamper climate change efforts.

Industrialised nations should also help developing countries respond to climate change, Wen said at the opening of a two-day international meeting on global warming in Beijing.

"The developed countries have a responsibility and an obligation to respond to global climate change by altering their unsustainable way of life," the state news agency Xinhua quoted him as saying.

"As the global financial crisis spreads and worsens, and the world economy slows down, the international community must not waver in its determination to tackle climate change."

The gathering in Beijing is focused on the development and transfer of technology that can help tackle climate change ahead of next month's talks on creating a new global treaty on reducing greenhouse gas emissions. Representatives from 76 nations are attending.

China proposed last week that rich nations devote one percent of their economic output to helping poor countries fight global warming. "Given their historical responsibility for the problem, it is essential that industrialised countries take the lead in reducing emissions and that they show real leadership (in climate change negotiations)."

A New Scapegoat?

UK Guardian | Fear of deadly attack by lone maverick as officers alert major firms to danger of green extremism.

Police have warned of the growing threat of eco-terrorism after revealing they are investigating a group which has supporters who believe that reducing the Earth's population by four-fifths will help to protect the planet.

Officers from a specialist unit dedicated to tackling domestic terrorism are monitoring an eco-movement called Earth First! which has advocates who state that cutting the Earth's population by 80 per cent will ease pressure on other species. Officers are concerned a 'lone maverick' eco-extremist may attempt a terrorist attack aimed at killing large numbers of Britons.

The National Extremism Tactical Co-ordination Unit, which collates intelligence and advice to police forces, has revealed that eco-activists are researching a list of target companies which they believe are major polluters or are exacerbating the threat of climate change.

The unit is currently monitoring blogs and internet traffic connected to a network of UK climate camps and radical environmental movements under the umbrella of Earth First!, which has claimed responsibility for a series of criminal acts in recent months.

A senior source at the unit said it had growing evidence of a threat from eco-activists. 'We have found statements that four-fifths of the human population has to die for other species in the world to survive.

'There are a number of very dedicated individuals out there and they could be dangerous to other people.'

Earth First! says its mission is 'about direct action to halt the destruction of the Earth' and advocates 'civil disobedience and monkeywrenching', tactics that include sabotage and disruptive behaviour. The movement has links to US environmental extremists which have waged a campaign of violence in America, including the firebombing of a string of 4x4 car dealerships in California in 2003 and alleged arson attacks on other property.

So-called "eco-terrorists" have been narratized as an up-and-coming threat by officials in the US and Great Britain.

Aside from the alleged Humvee wreckers mentioned in this article from four years ago, I haven't seen any news reports validating the existence of such people. I have, on the other hand, provided comprehensive documentation from the old pentagon operations analysts who were planning such die-offs decades ago along about the time the Club of Rome was writing about the necessity of such a thing, as well. However, the narrative profile being crafted for these folks is too useful to current governments NOT to be promoted into propagandistic prominence. If you think of the desirable characteristics of a straw-man scapegoat in upcoming times of scarcity, just think how useful it could be to demonize
environmentalists.

For instance, Al Quaeda was nurtured into major existence by neoconservative story-tellers since they needed an excuse to launch a global discretionary war. If they hadn't been elevated in importance by being attributed as the master planners we all had to fear, what excuse would there have been to commence attack and invasion activities?

Al Gore's Five Point Plan

NYTimes | What follows is a five-part plan to repower America with a commitment to producing 100 percent of our electricity from carbon-free sources within 10 years. It is a plan that would simultaneously move us toward solutions to the climate crisis and the economic crisis — and create millions of new jobs that cannot be outsourced.

First, the new president and the new Congress should offer large-scale investment in incentives for the construction of concentrated solar thermal plants in the Southwestern deserts, wind farms in the corridor stretching from Texas to the Dakotas and advanced plants in geothermal hot spots that could produce large amounts of electricity.

Second, we should begin the planning and construction of a unified national smart grid for the transport of renewable electricity from the rural places where it is mostly generated to the cities where it is mostly used. New high-voltage, low-loss underground lines can be designed with “smart” features that provide consumers with sophisticated information and easy-to-use tools for conserving electricity, eliminating inefficiency and reducing their energy bills. The cost of this modern grid — $400 billion over 10 years — pales in comparison with the annual loss to American business of $120 billion due to the cascading failures that are endemic to our current balkanized and antiquated electricity lines.

Third, we should help America’s automobile industry (not only the Big Three but the innovative new startup companies as well) to convert quickly to plug-in hybrids that can run on the renewable electricity that will be available as the rest of this plan matures. In combination with the unified grid, a nationwide fleet of plug-in hybrids would also help to solve the problem of electricity storage. Think about it: with this sort of grid, cars could be charged during off-peak energy-use hours; during peak hours, when fewer cars are on the road, they could contribute their electricity back into the national grid.

Fourth, we should embark on a nationwide effort to retrofit buildings with better insulation and energy-efficient windows and lighting. Approximately 40 percent of carbon dioxide emissions in the United States come from buildings — and stopping that pollution saves money for homeowners and businesses. This initiative should be coupled with the proposal in Congress to help Americans who are burdened by mortgages that exceed the value of their homes.

Fifth, the United States should lead the way by putting a price on carbon here at home, and by leading the world’s efforts to replace the Kyoto treaty next year in Copenhagen with a more effective treaty that caps global carbon dioxide emissions and encourages nations to invest together in efficient ways to reduce global warming pollution quickly, including by sharply reducing deforestation.

What, if anything, is wrong with this plan? What indispensable elements are lacking?

The Obama Agenda

Paul Krugman in the IHT |Tuesday, Nov. 4, 2008, is a date that will live in fame (the opposite of infamy) forever. If you're an American and the election of the first African-American president didn't stir you, if it didn't leave you teary-eyed and proud of your country, there's something wrong with you. But will the election also mark a turning point in the actual substance of policy? Can Barack Obama really usher in a new era of progressive policies? Yes, he can. the response to the economic crisis is, in itself, a chance to advance the progressive agenda.

Now, the Obama administration shouldn't emulate the Bush administration's habit of turning anything and everything into an argument for its preferred policies. (Recession? The economy needs help - let's cut taxes on rich people! Recovery? Tax cuts for rich people work - let's do some more!)

But it would be fair for the new administration to point out how conservative ideology, the belief that greed is always good, helped create this crisis. What FDR said in his second inaugural address - "We have always known that heedless self-interest was bad morals; we know now that it is bad economics" - has never rung truer.

And right now happens to be one of those times when the converse is also true, and good morals are good economics. Helping the neediest in a time of crisis, through expanded health and unemployment benefits, is the morally right thing to do; it's also a far more effective form of economic stimulus than cutting the capital gains tax. Providing aid to beleaguered state and local governments, so that they can sustain essential public services, is important for those who depend on those services; it's also a way to avoid job losses and limit the depth of the economy's slump.

So a serious progressive agenda - call it a new New Deal - isn't just economically possible, it's exactly what the economy needs.

The bottom line, then, is that Barack Obama shouldn't listen to the people trying to scare him into being a do-nothing president. He has the political mandate; he has good economics on his side. You might say that the only thing he has to fear is fear itself.