Dana Blankenhorn

The Core of the Issue

Think of this as Volume 14, Number 35 of A-Clue.com, the online newsletter I've written since 1997. Enjoy.

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Every political crisis in American history is, in fact, a sign of economic transformation.

Today's transformation is the move from energy defined by resources to energy defined by devices, by technology.

There is plenty of energy around -- from the Sun, from the ground, from the wind, from the air all around us. All we need do is harness and deliver it. This will trnasform all our financial, political and international relationships, so those who depend on the old relationships are fighting back with everything they have.

It's not about mosques or gay marriage or anything else we seem to worry about. All these issues are means to an end. They are pushed by, and products of, the financial strength of the oil power. Follow the money and this becomes obvious.

An Opportunity Agenda

Think of this as Volume 14, Number 33 of A-Clue.com, the online newsletter I've written since 1997. Enjoy.

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This is the point in any crisis Presidency when the ghouls come out.

The problems haven't been solved. The President seems to be moving too slowly. He's trapped between his need to be the old AntiThesis (Clinton the Triangulator in this case) and the old fading Thesis (Bushism) still practiced in the Capitol. His own troops are dejected. Change is hard.

What turned things around for all past crisis leaders was, simply, an agenda. Setting a course against the true enemy, in defiance of political assumptions, is the test of leadership.

In the current case, that agenda is simple.

The War Against Oil.

As I've said before, a climate bill isn't really a climate bill. It's really a jobs bill. It's also, right now, the hardest bill to get through the Congress. Republicans won't touch it, and many Democrats are wary as well.

The argument is over stimulus. The question should not be how much, but what the stimulus does. A stimulus that doesn't take us in a useful direction is mindless spending. Whether that's in the form of government aid or tax cuts, it's equally mindless.

We need a stimulus that creates stuff.

The last depression was ended by World War II. Republicans love to say that. They don't like to admit that the war was fought at a deficit, although it was. But we don't have to build bombs to win this war. We can win it with plowshares.

But we first have to declare it.

Sheikhs of America

Think of this as Volume 14, Number 31 of A-Clue.com, the online newsletter I've written since 1997. Enjoy.

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What may appear to journalists, or even historians, to be an ideological war usually turns out, in America, to be a choice between economic interests.

In our time the choice is on the title of this blog. It's a choice between energy defined by resources, which come out of the ground, or by devices that harness the energy all around us.

A new Thesis is born when the crisis leader turns definitively toward the new economy, explicitly rejecting the old. And it's brought on by the old economy seizing political power in an attempt to hang on against the new.

In other words the fight of our time is not between left and right, liberal and conservative, Democratic or Republican. It's between devices (the alternative energy of windmills, solar cells, tidal energy, and geothermal) and resources (coal, oil, natural gas). The former should define wealth, not the latter. And it's the climate bill that matters, nothing else. 

The current situation can be seen in the graph above from the Environmental Law Institute. We're subsidizing resources. We're choosing oil, coal and gas over other forms of energy, through the instrument of government. This is what the President must change if he is to seize the crisis of our time and put our economy on a sustainable path.

The Blitz of the Gulf and the War Against Oil

What has happened in the Gulf, what continues to happen, is not Barack Obama's Katrina. Nor is it anyone else's. It's not Pearl Harbor, nor is it 9-11.

What it's most comparable to, in terms of American history, is the London Blitz.

(I don't like using AP or even linking to them, but the picture on this page, by the APs Charles Riedel, is becoming the Iwa Jima Flag-on-Mount-Sirabachi moment in this disaster, so I've thumbnailed it. Historians know that an earlier group's arrival on that mountain, with a smaller flag, was the real deal to the men fighting there, and the second flag was put up for show. Yet it's that one we remember. As we'll remember Riedel's Laughing Gull. I entirely agree with AOL's Matt Mendolson on that.)

For most Americans the Gulf is distant. This can be hard to believe but it's true. Even here in Atlanta, where I live, the impacts for now are slight. My neighbor won't be heading to Destin any time soon. Beyond that life remains normal.

This is how America was during the Blitz. It was something happening elsewhere and to other people. What most today have forgotten is that, for many Americans of that time, this was highly desirable. War was highly controversial.

What President Roosevelt did, what Barack Obama needs to do, was to mold public opinion, slowly, toward a war footing. The movies which appeared and were green-lighted in 1940 were not all propaganda pieces, as they would become in the succeeding years. But many did take the gathering darkness as their subtext. And in that era, movies were the dominant medium.

Today the Internet is the dominant medium. It is a medium that is very difficult to dominate. Anything with the taint of propaganda is taken with a grain of salt. Yet, as we see time-and-time again in the Middle East, propaganda gets through.

It gets through when the target is clear and the aim is simple. The Administration's problem lies in its targeting.

The oil is not the enemy. Even BP is not the enemy. The enemy is the system that makes this eternal search for oil necessary, and that makes it the path of least resistance for BP's profit.

I'm not naive enough to think that we can flip a switch and create a world of bullet trains and windmills.  But I'm unwilling to accept the inevitability of oil, and all the bloodshed and destruction that entails.

What has people down right now is just this, the idea that we have no choice but to drill and fight, fight and drill, in order to continue our way of life. That's why the President's approval ratings are down so far, I believe, because his sights are set too low.

Raising those sights means creating a political environment in which an energy bill that moves incentives decisively from carbon to renewables is seen as patriotic, as a jobs bill, and as simple common sense, so that any opposition is seen as unpatriotic. In the face of Big Oil the President has been acting as Chamberlain at Munich, pushing back slowly hoping for "peace in our time."

He needs to become Churchill, not against BP but against the system that made this disaster inevitable. 

The 1898 Game

Think of this as Volume 14, Number 7 of A-Clue.com, the online newsletter I've written since 1997. Enjoy.

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The cycles of American history are important because they can show us where we are, and let us know that our reactions to events are not as unique as they appear.

Our history has been marked, so far, by six generational crises from which we managed to escape, and which defined all who went through them:

1. The 1800 Crisis, about the limits of our democracy and adherence to those limits.
2. The 1828 Crisis, a new balance between sections and the myth of "the people."
3. The 1860 Crisis, about Union, slavery, and the nature of our economy.
4. The 1896 Crisis, about balancing power between business and government.
5. The 1932 Crisis, about rescuing the economy and unity.
6. The 1968 Crisis, about culture, global war, and values.

The 2008 Crisis has much in common with the 1896 and 1932 crises, in that our problems are primarily economic. But it also has much in common with 1860 and 1968, in that our people seem culturally divided. (History is viewed like a picture on Google Earth -- everything below appears compressed and one-dimensional.)

There should no longer be doubt that 2008 was important, in the same way that our other crisis years were important. The assumptions of the past era had collapsed, our problems seemed ready to bury us, and we were ready to hear a new story about ourselves.

But we are now two years past that crisis. We have reached its center, its core. We are in the middle of cultural, economic and literal war, a time that tries mens' souls and has people wondering aloud whether this path is, indeed the right one.

Now is the time for heroes.

Real Stimulus

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Think of this as Volume 12, Number 29 of A-Clue.com, the online newsletter I've written since 1997. Enjoy.

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There are two kinds of stimulus.

The kind that passed is a capital injection. The collapse of the housing bubble, and the Confederate Money associated with it, took an enormous amount of money, supply, and demand out of the market. Think of it as an emergency saline drip, given to a patient found in the desert. It will keep you alive, but that's all it is designed to do.

The other kind, the one contained H.R. 2454, the American Clean Energy and Security Act, is the more important kind. It's designed to transform the incentives of the market, equalizing the price of carbon and non-carbon energy, reducing subsidies that have existed in the law for generations.

Conservatives are kicking and screaming. Their most dangerous argument is that global warming is a "myth," when in fact its impacts are already with us, and as our glaciers melt those impacts will accelerate. It takes 80 calories to melt ice, to raise its temperature by one degree. That's an enormous global shock absorber. But once the glaciers are gone, and they're going fast, it will take only 80 calories to bring the temperature of that water up to 112 degrees Fahrenheit.

As long as the glaciers are with us, in other words, the effects of global warming are somewhat muted. Once they're gone you're cooked. Think about that next time some asshat right-winger tries to tell you that the evidence of your eyes isn't real.

Their second argument is that the closing the carbon loophole is a "tax" that will drag the economy down. Like the global warming nonsense, this is also a lie.

Throughout American history, our government has driven our economy forward by creating market incentives for growth. Railroads were given free land. Oil companies were given depletion allowances. Car companies were given roads. These were government actions, meant to further economic growth in specific directions. And it worked. The railroads connected the markets of the continent, oil provided cheap energy for a century, and cars created the suburbs.

This has the exact same intent. We aren't going to get growth from new oil. We're not going to get it from financial manipulation. If we're going to get it, it will be from creating new forms of new energy, and new ways of delivering that energy to market.

How America Must Lead

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Think of this as Volume 12, Number 25 of A-Clue.com, the online newsletter I've written since 1997. Enjoy.

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Last week I talked about why America will win the future.

Now I want to talk about how to do that, and our responsibility for making that happen. 

America will continue to lead because of the hard work we have all done in the last generation, not so much in Washington but in our lives and communities. 

All the many movements of the last generation -- the womens' movement, the gay rights movement, the civil rights movement, the fight for rights for the disabled and ethnic minorities, the environmental movement -- all of what I have called the AntiThesis to the Nixon Thesis, or the outright rejection of that thesis -- all have had an impact. 

All of them have taken us further down the road of progress than most other societies have even contemplated going, and what came to me most clearly during my recent trip was that elites elsewhere recognize that progress, and envy it.

What they have given our society is flexibility, mobility, an ability to adapt to change unparalleled in human history. The ruins of failed societies all around the world attest to this. Change is the hardest work a society can undertake. No society has succeeded at it like ours, and none has done more to unite people worldwide around the idea that change is both good and necessary.

The clearest proof is living in the White House right now. But we can't rest on that laurel. Here is what we must do:

1. Set high goals 
2. Learn what real leadership means 
3. Embrace the change process

  Let me take these one at a time:

The War Against Oil is a War for the Economy

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Think of this as Volume 12, Number 20 of A-Clue.com, the online newsletter I've written since 1997. Enjoy.

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Want to get the economy out of the ditch? 

Make something. Make something new, something valuable, something real, something with a ready market. 

Despite what critics felt there was something real about the Internet, which defined the 1990s. The Internet accelerates the transfer of knowledge, and of any knowledge-based value store. It's the most powerful economic accelerant since the creation of the telegraph.

By contrast there was nothing ever real about the economic drivers of this decade, financial services and homes. Not that homes aren't real. But the value of a home has nothing to do with its cost or even its location. It is a measure of the economic value left out there to buy homes. A home sucks money, it only creates money for those who build, assuming someone buys. Thus homes became a natural sinkhole for the confederate money of this decade, soaking up as much as the banksters could create from thin air.

Now that the economy has stopped falling this question becomes vital. On what will we base the next boom? 

The answer is obvious. Energy. 

Behind Obama Fail in the War Against Oil

While the President's first 100 days deserve strong praise there is one area of conspicuous failure.

The War Against Oil.

There are good and bad reasons for this:

1. Good - Lower energy prices reduce the priority for alternatives, and the savings from conservation.
2.  Bad - Energy has been lost among all the other priorities of the first 100 days.  

You can't fight the market unless you either make it your top priority or have an ongoing market failure driving public opinion. We have ongoing market failures in the financial and health markets. But in energy, in the near term, the market is our friend. The recession has pushed oil prices into the $50/barrel range, and gasoline prices are half what they were at their peak. 

What is in a Word in the War Against Oil

Last night the President gave all those who agree we need a War Against Oil nearly everything we could have asked for.

To truly transform our economy, protect our security, and save our planet from the ravages of climate change, we need to ultimately make clean, renewable energy the profitable kind of energy.

So I ask this Congress to send me legislation that places a market-based cap on carbon pollution and drives the production of more renewable energy in America.

And to support that innovation, we will invest fifteen billion dollars a year to develop technologies like wind power and solar power; advanced biofuels, clean coal, and more fuel-efficient cars and trucks built right here in America.

He has a plan. It's tied to reducing hydrocarbon emissions. He did mention "clean coal" but he also (for the first time) advocated a cap-and-trade system to cap emissions, which could easily kill current coal plants in short order.

He even gave it the right priority. First. He said in his speech he would concentrate on three key challenges -- energy, health and education. Energy first. That's not an accident, it's a priority.

The only thing he did not do was use the word "war."

This was a mistake.