Daily Archives: 7 March 2014

Administration…Foot-Dragging

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Russian energy exports.  Ukraine, for instance, gets some 40%-50% of its natural gas from Russia, and Europe gets roughly 30% its natural gas from Russia.  Recall, just a few short years ago, too, the Russian extortion of cutting off those gas flows—in the middle of winter—over an alleged bill-paying (or not) scandal: it wasn’t those who supposedly weren’t paying the country’s gas bill who were harmed, though, it was the citizenry threatened with freezing temperatures in their own homes.  And as part of the Russian extortion, they cut off gas flows to Europe, too.

Now comes the Obama administration, with its control over our own ability to export natural gas to various places—for instance, to Europe and to Ukraine—or to the world generally.  The one export targets would directly break Russia’s hold over Ukraine and Europe, while the other would, at the least, drive down the price of natural gas, making it easier for those two to find and import other sources.  Yet this is the claim of Bill Gibbons, spokesman for President Barack Obama’s Energy Department:

Regarding specific Energy Department actions on LNG exports, the Department remains committed to an expeditious and responsible process.  We continue to make public interest determinations on a case-by-case basis, carefully considering economic, energy security, environmental and geopolitical impacts, among other factors.

Surely, breaking Ukraine’s and Europe’s dependence on Russian energy sources is a matter of geopolitical impact, especially with Russia having invaded Ukraine.  Yet the Energy Secretary, who under DoE’s permitting process can deny applications to countries that don’t have a free trade agreement with us, has approved all of six applications in the last three plus years to such countries, and he has some 24 more applications sitting on his desk with no action in the offing.  Certainly, all of those predate the present Russian assault, but acting on those export applications, rather than dissembling about them, would have an immediate favorable impact on Ukraine and Europe, if only through natural gas pricing on the world market—which would help these while harming Russia.

This administration automatically foot drags, even in an on-going crisis, on any matter pertaining to international affairs.  It has no understanding of foreign affairs, and so it’s wholly incapable of anticipating and planning for global events; this lack underlies its foot-dragging.

It’s no wonder our enemies have such contempt for us—and Ukraine is in the strait it’s in.

Speaking of Out of Touch

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Senator Bernie Sanders (I, VT) demonstrated the depth of his condition of out of touchness in a Tuesday op-ed in The Wall Street Journal.  Although Sanders’ out of touchness is amply demonstrated by his full-throated defense of the dinosaur that is the United States Postal Service, I want to look at a couple of other things he said in his piece.

First, there’s this:

There are very powerful and wealthy special interests who want to privatize or dismember virtually every function that government now performs, whether it is Social Security, Medicare, public education or the Postal Service.  They see an opportunity for Wall Street and corporate America to make billions in profits out of these services….

He says this in all seriousness, as if shrinking government and returning the bulk of its functions to the private sector where they belong is somehow a bad thing.  And that there would be profit in that private sector (and not only for “Wall Street and corporate America,” but also for medium-sized and small businesses and the Americans these would employ) is something only an avowed Democratic Socialist like Sanders would decry.  Moreover, it’s not only the powerful and special interests who want this shrinking of government and a divestment of its present array of “functions.”  Apparently he’s missed the Tea Party revolution that’s been going on these last five years.

He also had this (with some overlap with the quote above):

They see an opportunity for Wall Street and corporate America to make billions in profits out of these services, and couldn’t care less how privatization or a degradation of services affects ordinary Americans.

This is a false dichotomy.  Privatization doesn’t at all degrade services—it improves those extant and leads to vast expansion of new services, and at lower prices than before.  This is the example of the breakup of Ma Bell, effective at the start of 1984.  Under Ma Bell, we had a very good land line telephone system.  After the breakup, we got an even better land line system of competing companies (until their effective remerger); a cell phone system of competing companies; a cable system of more-or-less competing companies, which also compete for telephone business; and all of them competing for Internet business—including telephony communications.

A further example is the USPS, which prior to the divestment of package delivery and mail service other than first class, did a very good job of delivery.  Now we have competing package and special delivery service companies that are cheaper, faster, and even more reliable, and they have a broader range of special delivery services that the USPS is scrambling to match.  Additionally, all those communications services above are functionally competing for first class mail delivery, too, even though only the USPS can handle formal first class.  That’s what email, texting, Skype, AIM Chat, Twitter, and on and on—even that other dinosaur, faxing—are doing.

Apparently, Rip van Sanders has been sleeping through the end of the 20th century and this beginning of the 21st.