THE IRON HORSE THAT WILL NOT DIE

The headline caught my attention: “Bullet Train Back on U.S. Track.”  The paragraph which follows might have been predicted by anyone familiar with politics in America’s most populous state: “The California High Speed Rail Authority has reversed its plans to buy foreign parts for its trains, saying in a letter to federal regulators that it was withdrawing a request for a waiver from the Buy America Act.”

Why the Authority rescinded its intention, disclosed a week earlier, that purchases of such items as rail cars, wheels, axles and other parts would be from foreign sources, is obvious.  Opposition from the AFL-CIO, which represents the largest industrial unions in the nation, together with prominent lawmakers supported by union contributions, and who have spent their careers trying to force public agencies to buy goods made by American workers, cannot be ignored.  The following statement by Congresswoman Doris Matsui (D-Sacramento) makes this clear: “It is vitally important that these parts are produced and manufactured in America, so that we continue to maintain job growth and economic development.”

If we now put politics aside and zero in on reality, we see that the Authority’s stated intention to assemble and operate a high speed train with specific equipment is a matter of no consequence.  The reason for this is, despite the need to demonstrate economic accountability for the $64 billion project, there’s no sign the rail line will ever be constructed or placed into operation.  With the necessary funds nowhere in sight, any declarations as to where these parts will be manufactured are meaningless.

A logical question follows: If the high speed rail project will never be built, why is there so much consternation over details concerning it?  There’s an equally logical reason for this.  Although no one will ever profit from the tens of billions of dollars projected but not available, there’s still a good bit of money floating around to be gleaned in some fashion.  In addition to the $9.95 billion approved by the November 4, 2008, bond issue, there was $3.5 billion from a federal stimulus plan as well as $500 million per year from state carbon cap-and-trade revenue.  From the standpoint of profitability, as long as favored parties continue to receive payments for planning, design, studies, environmental reports and the myriad of other boondoggles inherent when government funds flow, a train need never be built.

If history is a guide—and it usually is—the controversy will continue.  As long as there are funds in the till to be passed around to politically connected contractors and construction unions, the efforts will continue.  Only when all the money is gone will the project end.

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If you enjoy this weekly Straight Talk by Al Jacobs, you’re invited to check out my monthly Financial Newsletter, as well as my new book, The Road to Prosperity

Click onto http://www.roadwaytoprosperity.com/

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WHAT'S FUNNY--AND WHAT'S NOT

I’ve just gotten a lesson in political correctness.  A book I recently wrote is now being reviewed by my publisher for any corrections required before publication, and by corrections this includes matters involving spelling, syntax, factual errors and other matters of indiscretion or inappropriateness.  In all my writings I welcome a second party review, as I certainly make my share of mistakes.  For those of you who think otherwise, your computer’s Spell Check can’t catch every misspelled word.  And, sad to say, the legendary The Elements of Style by Strunk and White, dating back to 1935, won’t guarantee a flawless sentence.  With this said, I’ll share my lesson with you.

In a chapter critical of gambling, I had included the following entry:

More than half the nation’s states together with several Canadian provinces host Indian casinos, where roulette wheels, blackjack tables, and slot machines operate around-the-clock to scalp the paleface—and whoever else strays onto the reservation.  I’m afraid it’s too late to circle the wagons, as most of them already have chattel mortgages attached.

My publisher’s comment: “This comes across as racist.”  My response:

Yes, I suppose by 21st Century pseudo-academic standards, this can be declared to be “racist.”  Fast forward another dozen years and it might possibly qualify as a hate crime, good for five years in the penitentiary.  Frankly, I put my lines into the Mel Brooks category of humor and would prefer to keep it exactly as I’ve composed it.  However, if you believe it will in any way adversely affect acceptance of the book, then we’ll eliminate it.  If that’s the case, simply place a period following the term “around-the-clock,” while deleting the rest of the paragraph—and humor be damned.

Over the years I’ve observed it, what’s funny has changed.  Whatever passes as humor now seems devoid of it.  Canned laughter punctuating insipid lines on a TV show does not constitute humor.  Neither does a standup “comedian,” whose only response from an audience is a few guffaws whenever he utters a string of four-letter expletives.  And as for political correctness, it seems to have preempted common sense—or perhaps it’s now uncommon sense.  If anyone can give me a good explanation as to why society has fallen to this level, I’m eager to know why.

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If you enjoy this weekly Straight Talk by Al Jacobs, you’re invited to check out my monthly Financial Newsletter, as well as my new book, The Road to Prosperity

Click onto http://www.onthemoneytrail.net/

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THE MAJESTY OF CLIMATE CHANGE

The headline is stark: “The climate denier-in-chief.”  The editorial which follows paints a picture of ecologic disaster, with the following criticism of the president-elect’s views on global warming: “Trump’s refusal to believe the broadly accepted scientific fact that human activity—primarily the burning of fossil fuels—is filling the atmosphere with carbon and other greenhouse gases could have lasting and devastating consequences for the entire world.”  The pointed charge: “Trump, however, believes it’s all a hoax.”

Whether or not global warming—renamed climate change after warming came into question—is the result of human activity and portends the hazards claimed, is questioned by many knowledgeable scientists.  Frankly, I doubt Mr. Trump has the scientific understanding to know, one way or the other.  However, whether the programs fostered by climate change promoters constitute a hoax is another matter.  When it comes to the design and operation of a grandiose project which functions in a deceptive manner, Donald Trump is truly an expert.  If he declares that climate change advocates are perpetrating a hoax on the American public, there’s a strong likelihood that’s exactly what they’re doing.

With the political changes soon to come, whereby Republicans will control the presidency as well as both houses of congress, it’s less likely huge sums of federal monies will continue to flow to those companies tied to the greening of America.  In all likelihood neither the solar nor electric car industries will receive the favored treatment they’ve come to enjoy, with tax credits being the first thing to be phased out.  But most significantly, those firms whose sole justification for existence is embracing the climate change concept currently in favor will actually have to begin showing a profit.  The first such outfit which comes to mind is Tesla Motors, a marketer of electric vehicles which, since its inception in 2003, consistently operates at a loss.  Despite the Class A hyperbole, which is its standard product, were it not for government giveaway programs, Tesla would not exist.

A final thought: Climate change has been a feature of earth since its creation.  Some 2.5 million years ago the island of Greenland resembled the green Alaskan tundra region.  Today it’s mostly a frozen wasteland covered by a massive ice sheet which has extended and retracted countless times—with no input from we Homo sapiens.  With this reality in mind, it appears our nation’s leadership is about to revise the rules in which vast fortunes were garnered by engaging in the climate change charade.

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If you enjoy this weekly Straight Talk by Al Jacobs, you’re invited to check out my monthly Financial Newsletter, as well as my new book, The Road to Prosperity

Click onto http://www.onthemoneytrail.net/

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