Dana Blankenhorn

The Renewable Energy Sweet Spot is Storage

Think of this as Volume 17, Number 17 of A-Clue.com, the online newsletter I've written since 1997. Enjoy.

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While most attention in renewable energy is focused on solar panels, or wind turbines, or the use of pine pellets and algae for fuel, the real sweet spot is in storage.

Imre Gyuk , energy storage program manager at the Department of Energy, says it's not just because solar and wind are intermittant. It's also because an increasingly computer-driven society requires cleaner power.

You know this in your own life. If you have a desktop PC, chances are you have a Uninterruptible Power Supply (UPS) sitting under your desk, or at least a “power conditioning” power strip next to you – maybe both. Spikes can damage critical components.

Graphene and the Nature of Change

Think of this as Volume 17, Number 9 of A-Clue.com, the online newsletter I've written since 1997. Enjoy.

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Change can be slow, and change can be sudden.

Those who practice the theory of “oh noes,” the idea that it's all about to go pear-shaped, either see slow change that can't be undone, or a sudden change that others see as unlikely.

The people I meet on Seekingalpha.com, the ones who are certain that we're about to go into another Great Depression, believe in sudden change. Those who talk about climate change tend to see slow change that can't be undone.

But most of the time, disaster does not strike. And sudden change can be good as well as bad.

This is one of the great things about being a science reporter, the idea that someone, somewhere, might suddenly come up with a mighty idea, one that will drive out big problems at a stroke.

Tax Carbon in the Name of Growth

Think of this as Volume 17, Number 7 of A-Clue.com, the online newsletter I've written since 1997. Enjoy.

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The following is going to annoy my liberal friends, but hear me out.

The decisive turn in a generation's political thesis, which is a collection of myths and values driving power, the point at which you go from winning elections to winning them for a generation, comes when business moves to your side.

You don't need all of business. You only need the rising tide of business to be on your side, that element of business driving economic growth.

Without significant business support, your side of the political world is always swimming upstream. That's because the business of America is business, even its political business is business, and anyone who questions that doesn't know America. (This Rising Tide is a restaurant in Scarborough, Maine. We hear good things about the lobster.)

Will Biofuels Join the War Against Oil?

Think of this as Volume 17, Number 6 of A-Clue.com, the online newsletter I've written since 1997. Enjoy.

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I haven't gotten into the nitty-gritty of the War Against Oil here in some time.

For those who need a quick refresher, the War Against Oil is the chief economic necessity of our time. The Sun shines, the wind blows, we live on a molten rock, yet we still power our world like cavemen did, by digging up shit we can burn and burning it. As a result we're burning up our planet.

There are still (believe it or not) idiots who deny that methane and carbon dioxide are responsible for increased global temperatures, for more extreme weather, and for the melting of ice caps around the world. Some are paid shills for folks who want to dig shit up and burn it. Others are ideologues who scream “no” at anyone saying yes. And some are indeed idiots.

The political winds toward burning shit grew to hurricane force during the Bush years, with the wholesale takeover of the country by the fossil fuel industry. The results were war and (ta da) rising fossil fuel prices. We're now accustomed to paying $4/gallon for gasoline, just as the “boiling frog” got used to hot water, and the industry wants to apply more pressure.

All the fracking in the U.S. is not going to drop gas prices one dime. It's not in the frackers' interest to do it, they control the process of getting fracked oil to market, it's just not going to happen. Besides, fracking costs big money. Margins are thinner from fracking than they are from sticking a straw into the ground and sucking.

The only way we're going to get a thumb down on prices is with an alternative to fracking. And right now, that means biofuels.

Why the Crisis Continues

Think of this as Volume 17, Number 5 of A-Clue.com, the online newsletter I've written since 1997. Enjoy.

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Previous crises in American political history were pretty much settled by this point after the crisis election.

By January of 1865 the Confederacy was all but dead. By this time in 1901 the Populists were a spent force. The initial crisis that created the New Deal was settled by 1937, although the struggle for democracy was just beginning. By 1973, we were well past the 1960s and talking full-time about Watergate.

While the course of our future politics seems settled, however, the political crisis that began in 2008 is ongoing, and the underlying economic cause – the War Against Oil – seems barely to have been launched.

You may ask why. I'm here to tell you:

The Next Boom Has Begun

Think of this as Volume 16, Number 51 of A-Clue.com, the online newsletter I've written since 1997. Enjoy.

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I have just one prediction for 2013, but it's an important one.

Good times.

The economy is going to grow, and faster than we expect, for two main reasons:

1. A thumb down on energy prices.

2. The automation of just about everything.

The Bookends of the Crisis

Think of this as Volume 16, Number 45 of A-Clue.com, the online newsletter I've written since 1997. Enjoy.

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Katrina and Sandy are bookends to the crisis of our time.

The crisis is the War Against Oil, but it's a crisis that dare not speak its name.

Al Gore spoke its name, and he was buried for it. Buried by Bush's Supreme Court in 2000, then buried by ridicule after getting his Oscar for “An Inconvenient Truth.”

This President has tried to approach things in a different way. Rather than address the crisis directly, he has sought to make the case instead for the role of government. He used government to address the financial panic, with modest success, and he used it to try and address health care inflation, although success there remains years away. With people impatient for change they could feel, he needed a break.

Sandy was the break he needed.

As a political bookend, Katrina set things in motion. Katrina changed the nation in profound ways, ways we didn't even notice at first. Katrina made us angry, it enraged us. The non-reaction of the Bush Administration became its unforgiveable sin – more than Iraq, more even than the financial panic. Katrina, and New Orleans, became a burning coal in every Democrat's belly. Never again, we promised ourselves. That fire burned hot in 2006, it burned hotter in 2008, it burns in my heart today.

Welcome to the 1970s

Think of this as Volume 16, Number 41 of A-Clue.com, the online newsletter I've written since 1997. Enjoy.

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This decade could have easily been the 1930s all over again.

You wouldn't have wanted to go there. We're talking no social safety net, people living in shantytowns, and starving. We're talking 32% unemployment at a time when women didn't work outside the home. We're talking social unrest and the almost-universal feeling that democracy was doomed (DOOMED!), that only the iron hand of the Left or the Right could save mankind from extinction. And then, of course, World War II.

Want to know what the 1930s were like? Look at Greece today. Greece was induced to follow the advice of the bankers, to practice extreme austerity in the face of impossible loan demands, and look what's happening. People are going hungry, and they're turning to a neo-Nazi party called the Golden Dawn for comfort. Not just as an electoral force, but as a social one, which is more ominous. Want to know where Hitler came from? Stuff like that.

Things could have easily gone that way for us, had John McCain been elected. What McCain was promising in the wake of a 1929-like crash was a great heaping helping of Hooverism. Instead we got the stimulus, we got some honest government, and while the problems aren't all fixed – too many bankers are still walking around loose – things are indeed getting better.

What is Money?

Think of this as Volume 16, Number 37 of A-Clue.com, the online newsletter I've written since 1997. Enjoy.

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On my new beat, at Seeking Alpha and TheStreet.Com, people talk about money all the time.

Money is, in fact, the great mystery of my working life. What is it?

Is gold money? Is a dollar money? What makes them money?

What makes them money is that they're a store of value people understand and accept. There's an assumption that if the world comes crashing down tomorrow people with gold will have money but people with paper won't.

I no longer think that's right, because the only value gold can store is excess value, and if there's no excess value to store it's not money.

Money Talks

Think of this as Volume 16, Number 31 of A-Clue.com, the online newsletter I've written since 1997. Enjoy.

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Every political crisis in American history has been a revolt by old money against new economic forces that had yet to come into their own.

• In 1860, cotton was king and manufacturing just starting out.
• In 1896, monopolists owned the infrastructure and mass markets were trying to gain a foothold.
• In 1932, credit had failed but demand was resisted.
• In 1968, manufacturing was being replaced by technology and content.

Today's crisis is a lot like all those that have come before. The oil industry, Wall Street, creditors and content monopolies all face the rising tide of alternative energy, open source and the Internet. This “old money” is fighting to protect what it has, and most of the money in this economy remains old money.