Posted by: Earl
on Feb 24, 2009
This is the final installment Earl's China Energy Adventure.
Earl is not known for his macro-economic expertise but that doesn’t mean he’s not interested and paying attention. The stimulus programs that are being implemented around the world at this time have certainly got his attention. An article in Business China last week struck a nerve.
Zhejiang Province is just to the south of Shanghai. Economists there noticed a weakening of the economy in late 2007 and started to take measures at that time to minimize the impact. Funds were set aside with no clear intention other than wait and see. With the recent China Central Government announcement of a stimulus package Zhejiang officials decided to utilize their funds for local companies as well.
Here’s where it gets interesting. This isn’t a fund where everyone gets a piece of the action. Companies will be evaluated for their utilization of technology and their energy efficiency. Those over the bar get assistance. Those that don’t make the cut will be getting nothing and be allowed to fail. In a sense, it’s survival of the fittest with a twist. Do good and get a boost.
It is clear that Chinese officials recognize that the importance of raising the standards of the companies there. They are not interested in promoting inefficient operations at the risk of dragging down well run companies suffering due to the global economy. The bonus for the rest of the world is reduced carbon emissions and energy demand. Now, if the rest of the world could make some hard decisions and stop catering to bloated, inefficient companies we could get somewhere?
Posted by: Earl
on Jan 19, 2009
We are about to witness an historic event. Who could have imagined? We’ve elected an African American to the most powerful office in the world. I tend to lean in the other direction politically but I have to say that I am proud to be an American when we’ve come this far.
So what does this really mean? In the grand scheme of things it doesn’t matter what his ethnic heritage is. He’s an American. I’m interested in results – national security, the vision to implement the structural changes in government that are required for the long-term, and economic policies that provide incentive to businesses in the US to continue to lead the world in technological innovation.
Or, is this an investment? If our government authorizes funds to be spent that can show a tangible return perhaps it should be called an investment.
We need to quit quibbling over semantics. A tax cut can be considered an investment if it stimulates more private investment that results in greater tax revenue. The short-term reduction in revenue has nearly always resulted in increased revenues due to the growth is stimulates. It does not matter if it positively affects people with more money than you. They are not keeping that money under their mattress. It is getting invested or spent and that ultimately is good for all of us.
I wish Obama the best! Please make it a priority to see to it that people and companies that have the means continue to have the incentive to invest and grow their wealth. We will all be better off for that. At the same time, you would create an environment for investment in things that will result in reduced reliance on foreign energy, reduce emissions, and make this world a better place for our children.
God speed President Obama!
Posted by: Earl
on Dec 28, 2008
I recently ran across a group of people with an interesting business model. As you probably know LED lights, while significantly reducing power requirements, lasting a long time, and do not generate much heat, are expensive. They are proposing to a building owner to convert the lights to LEDs at no up front cost but for a significant share of the resulting savings on the monthly electrical bill.
It seems to me that it should be relatively easy to calculate the costs of the installation and the resulting savings allowing an accurate return on investment projection. I've asked for frequent updates on how things are going and will post the results here.
