BLUEPRINT - An America Built to Last

In This Article:

- Obama's pitch about his future directions of the United States - his Achievements and Proposals

While Obama has already data points on successful implementations, there is still much to be done. But let's not forget that he actually provided care for people, did create jobs, and supports a green future fostering a technology competitive nation. More importantly, he criticizes and attacks those who have gambled beyond their means causing the recent financial crisis and is taking them to justice by founding a new agency. 

He cares for the people by establishing a new Consumer Protection Agency, something that in existence in European countries for many years. He also shows his fighter spirit and openly criticizes Congress in stating that the issue is not 'out there in the nation, but here in this room' called the U.S. Congress, and urges both parties to work more jointly together not against each other all the time. We remind ourselves that the original Congress was instituted under the premises that it should act and do what the American people can not do themselves. 

Here is a list of the achievements done and legislations proposed for the next years.

• Done
• #jobs went up (+3.2M within 22 months),
• #jobs in auto industry up by 160k
• Doubled exports since 2009
• Installed a Trade Enforcement Unit --> To counterfeit Trade Misconduct (China product dumping)
• Decreased illegal immigration (x2 # of border patrol agents since 04)
• Focused on small businesses (64% of all new jobs came from small businesses)
• Oil dependency at 20 year low (<50%)
• Natural Gas Exporter (since 2009 the US is becoming THE dominant NG player)
• Huge incentive & stimulus packages for renewable energies ($90B, $3B electricity storage via Recovery Act)
• US is second largest producer of renewable Wind energy (+40GW in 2010, trend rising)
• Bill to permit to use public land for clean energy production cites (to power 3 million homes)
• Wall-Street-Reform (reducing risk bets with customer deposits for big banks, simplifying credit card forms) --> Creation of the Consumer Protection Bureau
• Social Justice in health Care --> The Affordable Care Act (2.5M Americans under 26 years of age insured through their parents, Millions of seniors supported in prescription drug saving the $2B, uninsured people with pre-exciting conditions do have insurance options now)

• Proposed
• Reduce Corporate Taxes to in-source manufacturing & jobs
• Standardize job searches: 1 Program 1 Website 1 Path
• Focus on education, reduce drop-outs (Bill to refuse drop-out options)
• Attack student loan debt issue (Reinstate American Opportunity Tax Credit  keep interest rates low @ 3.4% and not 6.8%)
• Keep international MS & PhD in the country (27% and 57% of MS & PhD graduates are intl. students, 24% and 47% of U.S. scientists are immigrants)
• Eliminate tax breaks for Oil & Gas companies --> saving $40B over next decade
• Pay down debt & invest in national infrastructure from savings from winding down war costs in Iraq & Afghanistan
• Plan to save 3,000 bankrupted homeowners per year via refinancing their mortgages at today's low interest rates
• Lean unnecessary governmental procedures, fight corruption & provide equal measures (e.g. milk was classified as oil, requiring a milk producer to call an agency to clean up a milk spill)
• Establishing a financial crimes unit (to take law finance breakers to justice)
• Rescind tax breaks for the richest 1% (via the Buffett rule = 30% tax for gross income $+1M per year)
• Veteran support via tax credits (up to $5,600 and $9.600 with service connected disability)

Obama - Greener Than Ever

In This Article:

- Obama's recent Approach to American Energy Competitiveness and Security

Just one week ago, president Obama visited a manufacturing plant of  Daimler in Mt. Holley. Here he laid out what could be called blueprint for a new era of energy policy; namely a $1 billion National Community Deployment Challenge to spur deployment of clean, advanced vehicles and expansion of advanced vehicle tax credit. This stimulus package is geared towards strengthening the economy via new jobs and technology innovation, securing nations energy independence, which also enhances national security - a win win situation. 

Details about the proposed stimulus are for instance raised tax credits for electric and hybrid-electric vehicles (EV) from currently $7,500 to $10,000. Nicely so, these are now direcly transfarrable to the car dealer at the moment of purchase reducing the barrier-to-entry into the EV era. Positively surprising is the news that many other technologies will be supported not only EV's, that are currently not covered. Furthermore, technology researchers will joy since Obama also announced a research challenge ('EV everywhere') to invest in key technologies which target to make EV's as easy to use as gasoline cars. The time-target is the end of the decade. The vision is to get the EV sicker and operation price down so that the average american family can afford one, corresponding to a monthly saving to gasoline driving of $100 per month This aspect resonates with me strongly, since in the end it is the millions of people making up a society who have to adopt to this new way of living.

Most significant car efficiency standards in 3 decades

In addition the president announced a meaningful update to increase car and light truck efficiencies; by the year 2025 the car millage standard will be 54.4 miles per gallon saving $1.7T at the pump since 2011.  Furthermore heavy-duty trucks are under 'clean-attack' as well; the administration finalized the first standard addressing green-house-gas emission for these type of vehicles during a test period between 2014-2018, saving truck owners and companies an estimate of $50B in fuel costs. 

In the 'Race-to-the-top' challenge the president plans to catalyze the green vehicle adoption in 10-15 pilot communities. The idea is to reform the infrastructure, remove regulatory barriers and to create local incentives. The vision is to scale-up from these model communities towards reaching mass-scale. The plan envisions to give the communities the freedom to decide whether 'electrification', natural gas, or other alternative fuels are be the best choice for them. Furthermore, the program plans to support 5 regional liquid-natural-gas (LNG) corridors. LNG is becoming more and more interesting for the U.S. since recently huge amounts of national resources were found. This gas can be liquified during which the volume shrinks by a factor of 1000, making it easier to transport. 

In conclusion, it is an aggressive move but an innovative one. With many investment firms turning their heads towards renewable energies and technologies, the Obama administration seems to have realized that making surgical investments is a secure and fast way to move America's economy and society forward.      

Germany's Energy Revolution

In this Article:

- How Germany positions itself to to meet the Energy Challenge head-on

This world is changing, faster than ever. If every generation has it's smaller or larger 'revolution', it is the tremendous momentum behind a green future that we are in right now. Or in short: we are living an energy revolution!


But why now? First of all, many countries' electricity distribution grid is outdated and needs re-modernization . The costs for it? In the 10's of billions of dollars. Moreover, many countries dislike the notion of being dependent on some other country. And with an increasing energy demand this dependency is certainly not declining, if we are to continue with business-as-usual (BAU). Again, why now? Well, when pretty much one year ago a trembling earth-quake and an raging tsunami wasted large area of japan and multiple nuclear reactors  had melt-downs, the German policy leaders had enough. Almost overnight (in political timescales) Germany past what critics see as the 'largest decision since WWII', namely to abandon nuclear power bu the end of the decade (plus 2 years).  Noteworthy is also that this decision is founded on a broad consensus in German society with the German green-party tripping in size to becoming the 3rd largest party in the parliament.


However, the decision to abandon nuclear is just the tip of an long growing iceberg; from 1990 to 2010 Germany cut emissions of carbon dioxide by about 25 percent, while the economy grew at a constant rate. Interestingly, Germany has realized that cutting greenhouse gas emissions does not harm the economy - quite contrary in fact. Renewable energies are a driving force in the German industry, generating 37.5 billion Euros in turnover in 2010. The number of people employed in the renewable energy sector will go up to 500,000 by 2020 from today’s 367,000 people. And let me add that these jobs are highly trained, well-paid jobs, those who will pay decent taxes.

The CO2 emission reduction goals of Germany are also worth mentioning. Germany stays committed to its target of a 40 percent reduction of CO2 emissions by 2020. Note that these climate targets will remain unaffected by the accelerated nuclear phasing-out. In addition, the energy supply is secure during the transition to a carbon-free energy supply: even with eight reactors offline now, Germany is still a net exporter of electricity.

A major contribution to Germany’s successful energy policy is the "Feed-in Tariff" - an incentive structure to encourage the adoption of renewable energy. Utilities are obliged to buy electricity from renewable sources at a fixed price which is higher than the market price. Consumers pay the difference as part of their electricity bill (presently 3.5 ct per KWh).  80 percent of Germans consider it (although adding to the electricity price) appropriate or even too low.

However, the long-term vision and price guarantee are certainly key for investment decisions in the renewables sector. Germany's renewable energy generation has already reached 20% of its electricity production and is expected to become the dominant source by the middle of the century. Phasing out nuclear power will be achieved by significantly increasing the country's energy efficiency as well as through all renewable energies, especially wind energy. In short, this project means Germany may be the first large industrialized country to have a highly efficient energy supply system based on renewable energies. And  the German's are confident to do it as Chancellor Merkel pointed out: if anyone can demonstrate that this is possible, it is Germany.

In conclusion, it is a bold but forward thinking move what Germany is experimenting with. Nonetheless, the decision to greener go where not many have gone before is a signal to the world that change is possible for a smarter and cleaner planet.