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  Increasing Trade, Exports, and Overall Competitiveness »

  Don’t become a hostage to China

  Discussion: The U.S. February trade deficit with China was $18.8 billion [1]. Overall, China now holds over $3 trillion in foreign reserves (Dollars and other currency) [2]. With this leverage, China can dictate financial terms to the U.S. We have allowed our National Security to be held at risk on the hope China will be nice to us. Yet we see China more aggressive in maritime disputes [3]. Moreover, we know there are ...more »

  Discussion:

  The U.S. February trade deficit with China was $18.8 billion [1]. Overall, China now holds over $3 trillion in foreign reserves (Dollars and other currency) [2]. With this leverage, China can dictate financial terms to the U.S. We have allowed our National Security to be held at risk on the hope China will be nice to us. Yet we see China more aggressive in maritime disputes [3]. Moreover, we know there are a number of unfair trading practices that allowed China to accumulate large holding of U.S. currency. Since China joined the World Trade Organization, we have exported millions of U.S. jobs to the communist giant. The question here is how long can we continue along this path?

  Recommendation:

  We need to target China’s unfair trade practices with the objecting of restoring our economic base. The control used should include fees that will increase our taxes. Perhaps a domestic employment surcharge for products imported from China.

  References:

  1. Kowalski, Alex, Bloomberg, U.S. Trade Deficit Narrowed in February as imports Decrease, April 12, 2011.

  2. McDonald, AP, China’s foreign reserves surge past $3 trillion, April 14, 2011.

  3. VOA, China’s Maritime Disputes Fueled by Need for Energy, April 11, 2011.

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  Submitted by Community Member 2 years ago

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  Apply a USA Inc. policy to countries that operate as a monopoly

  Background: In the aftermath of the tragedy in Japan following the massive earth quake; we are now seeing how Japan has applied unfair trade practices. Case in point, is seems the other power companies may be required to cover losses [1]. Essentially, Japan is equivalent to a single monolithic corporation. Only the Japanese Government could enforce such a policy. Imaging in the U.S. if one industry suffered losses and ...more »

  Background:

  In the aftermath of the tragedy in Japan following the massive earth quake; we are now seeing how Japan has applied unfair trade practices. Case in point, is seems the other power companies may be required to cover losses [1]. Essentially, Japan is equivalent to a single monolithic corporation. Only the Japanese Government could enforce such a policy. Imaging in the U.S. if one industry suffered losses and the losses were to be covered by competitors? Sacrificing U.S. industry should not be an option.

  Suggestion:

  The U.S. should implement comparable policies to those countries that act as a single corporation. This unfair trade practice needs to stop before we have no industry remaining.

  References:

  1. Reuters, Nikkei gains, but thin volumes point to downside, April 13, 2011.

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  Submitted by Community Member 2 years ago

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  Go After OPEC

  Background: The U.S. economy appears to be on the brink of recovery. However, the high price of oil will place undue stress on the fragile recovery. At a time when gas process are around $4.00 per gallon; we find ourselves at the mercy of a cartel; the Organization of the Petroleum Exporting Countries (OPEC). In the U.S., an organization that controls supply and demand and thereby determines the price of oil would be ...more »

  Background:

  The U.S. economy appears to be on the brink of recovery. However, the high price of oil will place undue stress on the fragile recovery. At a time when gas process are around $4.00 per gallon; we find ourselves at the mercy of a cartel; the Organization of the Petroleum Exporting Countries (OPEC). In the U.S., an organization that controls supply and demand and thereby determines the price of oil would be illegal. Yet we are at the mercy of OPEC. For example, with Oil near a 30-month high; Saudi Arabia is cutting back on production [1]. This could push us back into a recession. In contrast, the last time we had a balanced budget, President Clinton’s term, energy prices were low. This suggests the price of energy drives or curtails the U.S. industrial base and thereby the taxes received. If the law of supply and demand was allowed to run its course, oil would be lower. Moreover, President Obama has acknowledged we will be dependent on oil imports for some time.

  Suggestion:

  We must use all legal resources to undermine the OPEC cartel.

  References:

  1. Jolly, David, New York Times, Saudis Adjust Oil Production as Demand Fluctuates, April 12, 2011.

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  Submitted by Community Member 2 years ago

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  Preserve Critical Industry

  Background: Due to low prices and poor environmental laws, China was able to capture 97% of the rare earth mineral market [1]. Recently, China restricted exports of Rare Earth elements [2]. These elements are important for many advanced technologies including semi-conductors and advanced batteries. What China was allowed to do was to corner (hold a monopoly) on these critical elements. Without warning, exports were restricted ...more »

  Background: Due to low prices and poor environmental laws, China was able to capture 97% of the rare earth mineral market [1]. Recently, China restricted exports of Rare Earth elements [2]. These elements are important for many advanced technologies including semi-conductors and advanced batteries. What China was allowed to do was to corner (hold a monopoly) on these critical elements. Without warning, exports were restricted driving up the costs in the process. This is but one example where the U.S. is not dependant on foreign suppliers that have manipulated prices after the competition was gone.

  Suggestion:

  The U.S. needs to maintain a core set of industries that are crucial to our national defense. That China was allowed to corner the market on rare earth elements shows there are improvements that need to be made. Suggest the Government invest, manage, or sponsor competition for those industries that are critical to national defense. In addition to rare earth elements; energy, raw material, manufactured good, steel, and other industries should be examined. Allowing a U.S. industry to disappear due to unfair international trade; only to pay more down the road; is not in the best interest of the U.S.

  References:

  1. Housley, Adam, Fox News, Mine in Mojave Desert May old Key to Beating China in the race for Raw Minerals, April 6, 2011.

  2. Brown, Josh, Washington Times, U.S. urged to mine ‘rare earth’ minerals for high-tech devices, April 11, 2011.

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  Submitted by Community Member 2 years ago

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  Balance Japan and Korea vehicle trade

  Background: GM now sells more cars in China than it does in the U.S. This would indicate the American products are acceptable to the Asian markets. However, the Japanese and Korean markets are virtually closed to American cars. Yet we import cars and auto parts from Japan and Korea without restriction. This practice has cost numerous American jobs and the associated tax revenues. Suggestion: Restrict the importation ...more »

  Background:

  GM now sells more cars in China than it does in the U.S. This would indicate the American products are acceptable to the Asian markets. However, the Japanese and Korean markets are virtually closed to American cars. Yet we import cars and auto parts from Japan and Korea without restriction. This practice has cost numerous American jobs and the associated tax revenues.

  Suggestion:

  Restrict the importation of Japanese and Japanese vehicles commensurate with their restriction on our products.

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  Submitted by Community Member 2 years ago

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  Market American Backup Manufacturing Capability

  Background: The tragedy in Japan due to the earthquake highlights the risk of just in time manufacturing. Given the dependence on parts made in Japan, that nation risks market share loss to other Asian countries; in particular, Korea. What’s more, due to limited power through the summer, this is a good time to market to Japan the need for a reliable off-shore (read U.S.) contingency location. Instead of using the U.S. ...more »

  Background:

  The tragedy in Japan due to the earthquake highlights the risk of just in time manufacturing. Given the dependence on parts made in Japan, that nation risks market share loss to other Asian countries; in particular, Korea. What’s more, due to limited power through the summer, this is a good time to market to Japan the need for a reliable off-shore (read U.S.) contingency location. Instead of using the U.S. to assemble parts from Japan, we could be a second source for parts manufacturing. What’s more, given the 7.1 magnitude aftershock, Japan could benefit from backup manufacturing sites.

  Recommendation:

  Using the resources available to the U.S.; start a marketing campaign encouraging Japan to consider the U.S. as a backup manufacturing location. This comes at a time when they must decide if reconstruction or relocation is the best way forward. Let’s lower the bar and allow their investment dollars to flow back to the U.S.

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  Submitted by Community Member 2 years ago

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  Relax Monopoly Laws

  Background: The last time we had a balanced budget; it was due to the prosperity of industry and the working public. More taxes came into the system than expenses paid out. In order to get back on a firm footing, we need to have healthy industry churning our profits and the resulting taxes. Without a strong source of income (taxes) there is little basis for deficit control. During the 1950’s half of the U.S. jobs were ...more »

  Background:

  The last time we had a balanced budget; it was due to the prosperity of industry and the working public. More taxes came into the system than expenses paid out. In order to get back on a firm footing, we need to have healthy industry churning our profits and the resulting taxes. Without a strong source of income (taxes) there is little basis for deficit control.

  During the 1950’s half of the U.S. jobs were tied to the auto industry. Think about that a moment. When the U.S. was the economic force on the planet; half of the jobs were tied to the auto industry. We have in essence exported most of this industry overseas. Consider, according to the last census results, one-fourth of the Detroit (motor city) population left. Moreover, we are learning from the earthquake disaster in Japan, we have been up against the equivalent of a large corporation (Japan Inc.). To compete in such an environment, we need to allow companies to dominate an industry in order to compete on a global scale. Trying to maintain numerous smaller companies puts each at a disadvantage. In the past, it was important to ensure domestic competition in order to protect the consumer. However, international trade has made this a non-issue.

  Suggestion:

  Relax the current U.S. anti-monopoly laws and allow corporations to grow and competed against state supported industries.

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  Submitted by Community Member 2 years ago

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  Pollution Import Fee

  Background: Many of the countries operating unfair trade practices have lax environmental laws. In some cases, we can directly identify the polluting source, such as a coal burning plant that lacks pollution reducing technology. Moreover, we have traced particulate pollution from the industrial centers in Asia to monitoring stations in California. If we are to reduce pollution, it is only fair that polluting nations, ...more »

  Background:

  Many of the countries operating unfair trade practices have lax environmental laws. In some cases, we can directly identify the polluting source, such as a coal burning plant that lacks pollution reducing technology. Moreover, we have traced particulate pollution from the industrial centers in Asia to monitoring stations in California. If we are to reduce pollution, it is only fair that polluting nations, shown to pollute U.S. Air (or water), should be subjected to an import pollution fee on products from that nation. This will help level the playing field for U.S. companies that must comply with our environmental laws. Moreover, this will encourage cleaning the environment and thereby improving air and water quality.

  Recommendation:

  For polluting countries where we are receiving detectable pollution, products imported should be subjected to a pollution fee commensurate to the pollution generated.

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  Submitted by Community Member 2 years ago

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  Ease Tax Payment

  Background: Many people would like to report and pay taxes for part time workers. However, when they look at what is required, they have to get a TIN, then match Social Security, then make deposits in a special account, and other reporting requirements. This is simply too much for most people and they avoid the process completely. The effort for tax reporting, collection, and administration may exceed the value of the ...more »

  Background:

  Many people would like to report and pay taxes for part time workers. However, when they look at what is required, they have to get a TIN, then match Social Security, then make deposits in a special account, and other reporting requirements. This is simply too much for most people and they avoid the process completely. The effort for tax reporting, collection, and administration may exceed the value of the work performed. This is preventing valuable tax revenue.

  Suggestion:

  Provide a simple report and deposit approach that can be easily understood and can be completed within 30 minutes. Don’t require limited employers to set up the equivalent of a business just to honestly pay taxes for some limited service.

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  Submitted by Community Member 2 years ago

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  Roll-back Minimum Wage

  Background: During the past few years, the U.S. has exported millions of tax paying jobs. The Wealth of the nation has deteriorated. We now find ourselves seriously competing against third world countries where labor costs are low. Moreover, people entering into the workplace have fewer job opportunities to start. With fewer jobs, there is nothing for college students and other entry level workers to gain experience. ...more »

  Background:

  During the past few years, the U.S. has exported millions of tax paying jobs. The Wealth of the nation has deteriorated. We now find ourselves seriously competing against third world countries where labor costs are low.

  Moreover, people entering into the workplace have fewer job opportunities to start. With fewer jobs, there is nothing for college students and other entry level workers to gain experience. Without job experience, resumes are Spartan, placing people trying to gain experience at a disadvantage. What’s more, there are now more people on permanent unemployment status. The question here is better to have two lower paying jobs and keep two entry level people employed or one unemployed at the expense of the other? Drastic times require drastic measures and a roll-back in the minimum wage, until we can recover, could help.

  Recommendation:

  Roll back the minimum wage to half its current amount.

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  Submitted by Community Member 2 years ago

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  Avoid Government Shutdowns

  Background: The basic reason for a government shutdown is lack of funds to cover expenses. To overcome this, we need profitable industry and employed tax payers. Yet, our most visible export is millions of jobs per year; with a large number to non-energy imposts such as products made in China. Moreover, we know these countries are now awash in U.S. currency and routinely use unfair trade practices at our expense. By ...more »

  Background:

  The basic reason for a government shutdown is lack of funds to cover expenses. To overcome this, we need profitable industry and employed tax payers. Yet, our most visible export is millions of jobs per year; with a large number to non-energy imposts such as products made in China. Moreover, we know these countries are now awash in U.S. currency and routinely use unfair trade practices at our expense. By having fair trade, we can get the tax base necessary to avoid government shutdown debates in the future.

  Recommendation:

  For those countries that have a $1 billion or more trade imbalance with the U.S.; apply the same unfair trade practices they use against us to their products. Keep this up until the trade is balanced. For example, China uses a number of unfair trade practices including currency manipulation. This results in over $20 billion trade deficits per month. Moreover, there are indications of state sponsored hacking and other techniques used to benefit their industry at our expense. These are American jobs and industries that we are exporting causing a reduction in tax revenues.

  Let the U.S. agency responsible for this proposed fair trade, have the power to implement a number of practices designed to curb the unfair practices. In the case of Chine, if the last month was a $20 billion trade imbalance, charges in that amount should be applied to the imports. Let the other country complain to the WTO; at least we will start protecting our industry and workers to the same degree these other countries are.

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  Submitted by Community Member 2 years ago

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  Fund a study to find ways to expedite trade disputes

  Discussion: In the past, we have seen other countries dump products in the U.S.; such as steel and electronics. Later, it is determined that dumping did occur but too late for the U.S. industry. Once the industry is gone, there is nothing to preserve. There needs to be a way to ensure U.S. industry, constantly subjected to unfair trade practices, can get fast dispute resolutions. Having cases wind through the WTO for ...more »

  Discussion:

  In the past, we have seen other countries dump products in the U.S.; such as steel and electronics. Later, it is determined that dumping did occur but too late for the U.S. industry. Once the industry is gone, there is nothing to preserve. There needs to be a way to ensure U.S. industry, constantly subjected to unfair trade practices, can get fast dispute resolutions. Having cases wind through the WTO for years will kill chances for smaller industry to compete. This appears to be a proven approach for other countries wishing to dominate a targeted U.S. industry. The first step is recognizing the problem exists. The second is developing a vehicle for smaller businesses to challenge practices. This is something only the government can take on; it’s simply too much for a small business. Before returning to government service, I started my own company. If there was any way to protest trade practices (short of a letter to my Congressman), I was unaware of it. Furthermore, a smaller company is unlikely to have any business ties to foreign countries that would discourage filling a trade grievance.

  Suggestion:

  Fund a study to identify a mechanism for small business to challenge unfair trade practices that are hurting that company’s ability to compete. The resulting capability must be known and act on behalf of targeted small business. Note, the mediation should not extend beyond the life of the small business.

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  Submitted by Community Member 2 years ago

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  Educate Consumers on American Quality

  Background: The marketing to date tends to suggest that Japanese products have a higher quality that competing American goods. This has led to purchases based on perception rather than fact. We continue to see cases where poor quality in Japanese quality is covered up. Case in point, Mitsubishi admitted to covering up customer complaints [1]. Moreover, consider, when the Japanese owned Firestone company, was found to ...more »

  Background:

  The marketing to date tends to suggest that Japanese products have a higher quality that competing American goods. This has led to purchases based on perception rather than fact. We continue to see cases where poor quality in Japanese quality is covered up. Case in point, Mitsubishi admitted to covering up customer complaints [1]. Moreover, consider, when the Japanese owned Firestone company, was found to have defective tires; this had a significant impact on Ford Motor, a U.S. company that used Firestone tires on the Explorer line. Interesting, during the crisis, Japanese tires were imported to replace those Firestone tires made in the US [2]. The implication was American workers were second to their Japanese counterparts. Then of course, the president of Toyota had to apologize for poor product quality [3]. With the current disaster in Japan due to the earthquake, we are discovering more quality problems. For instance, in 2002, Tepco (the owner of the stricken nuclear plant) was found to be forging safety inspections of some of its nuclear power plants [4]. Furthermore, it seems Japan has two incompatible power zones; one using 50 Hertz the other 60 Hertz [5]. These examples challenge the assumption that made in Japan equals guaranteed quality. It seems the success Japan enjoys is due to the perception and successful marketing of quality.

  Suggestion:

  The U.S. could follow the Japanese model and start advertising the quality of American products. Start with specific products where America excels and continue hammering the message. America and the world should understand American products are quality products. In so doing, this will improve our competitive edge. We need people to take a second look at American products.

  References:

  1. Tanikawa, Miki, New York Times, Mitsubishi admits to broad cover-up of auth defects, August 23, 2000.

  2. ABC News, Firestone To Import Tires From Japan, August 22, 2001.

  3. Ahrens, Frank, and Whoriskey, Peter, Washington Post, Toyota president apologizes under fire of U.S. officials, February 25, 2010.

  4. Tatsumi, Yuki, BBC, Viewpoint: Japan plant – who is in charge?, April 1, 2011.

  5. Thompson, Ashley, The Japan Times, The Relief effort: how you can help, March 22, 2011.

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  Educate Consumers on Trade Impacts

  Background: Years ago, there were a series of commercials with Bob Hope asking consumers to look for the Made in U.S.A. label, it matters. Today, most consumers do not realize they have the ability to correct trade imbalances based on their purchases. Moreover, most Americans do not know how trade purchasing foreign goods contributed to the Roman Empire downfall. Without a solid U.S. based industry, jobs and tax revenues ...more »

  Background:

  Years ago, there were a series of commercials with Bob Hope asking consumers to look for the Made in U.S.A. label, it matters. Today, most consumers do not realize they have the ability to correct trade imbalances based on their purchases. Moreover, most Americans do not know how trade purchasing foreign goods contributed to the Roman Empire downfall. Without a solid U.S. based industry, jobs and tax revenues are lost. Moreover, we become dependent on foreign companies to produce products to meet our needs. The staggering monthly trade deficit, the bulk of which goes to China, is unsustainable. By educating the American consumer and instilling a sense of nationalism, we can correct the unfair trade practices applied to U.S. goods through consumer purchases.

  Suggestion:

  Start a series of national advertisements along the line of the older Bob Hope messages. Make this like the ‘just say no’ anti-drug campaign. Create a series of educational programs; make these available through the education system and public broadcast outlets, and focus on how the consumer is empowered to correct trade problems. Acknowledge there are countries that manipulate currency and trade practices to the detriment of the U.S. and while we are working to correct these problems; consumers can do their part.

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  Level the playing field

  Discussion: Since the Environmental Protection Agency (EPA) started during President Nixon’s term; air and water quality have dramatically improved. While U.S. companies must comply with tough environmental laws and resulting regulations, many countries, have poor environmental enforcement. This places U.S. companies at a disadvantage. As we are seeing from the crisis in Japan, nuclear radiation is entering the U.S. ...more »

  Discussion:

  Since the Environmental Protection Agency (EPA) started during President Nixon’s term; air and water quality have dramatically improved. While U.S. companies must comply with tough environmental laws and resulting regulations, many countries, have poor environmental enforcement. This places U.S. companies at a disadvantage. As we are seeing from the crisis in Japan, nuclear radiation is entering the U.S. We need to ensure that other countries we import products from, are good stewards of the environment. If they are not, they should be penalized.

  U.S. industry needs comparable assurance that the competing industry in other countries comply with the same types of environmental regulations. We cannot ignore the planet is one ecosystem. Moving industry to another part of the world where pollution enforcement is lax does not help us. If a heavy polluting industry knows it can move to another country, such as China or India, and not worry about pollution, they can increase their profits accordingly. This is a planet killing approach.

  Suggestion:

  Establish law that penalized products that exceed acceptable pollution standards. If we know a country is not enforcing pollution standards, a pollution penalty should be applied to this country’s products.

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  Hydroelectric generation at former water driven facilities

  Background: In order to remain competitive, the U.S. needs reasonably priced energy. Moreover, these energy sources should consider environmental impacts. To this end, one proven technology is hydroelectric. These are essentially solar driven (the sun evaporates water, the water turns to rain, the rain falls back, the resulting water drives generators). With hydro, there are no radiation concerns, no gas emissions, and ...more »

  Background:

  In order to remain competitive, the U.S. needs reasonably priced energy. Moreover, these energy sources should consider environmental impacts. To this end, one proven technology is hydroelectric. These are essentially solar driven (the sun evaporates water, the water turns to rain, the rain falls back, the resulting water drives generators). With hydro, there are no radiation concerns, no gas emissions, and the reliability of water is greater than wind (if the wind is not blowing, there is no force to turn the generators). One drawback with any hydroelectric approach is the environmental impact to the water source.

  In the late 1800’s, before the wide use of electricity, America was driven by water power. Looking at old maps, plants lined the many rivers and were the source of energy to drive the machines used in the plants. A walk though some museums shows how a water wheel was used to drive mechanical devices that were powered by belts. In traveling through former industrial areas, such as those in New England, every town seems to have old mills along the rivers. It is easy to show these were once driven by water power. What’s more, in many cases, there are still structures in place constructed when water power was still the number one source of energy. From an environmental impact, we have a historical record of the impacts, is any, resulting from harvesting the power of the rivers. There are thousands of such locations throughout the U.S. that could be harvested.

  Most of the hydroelectric capacity currently comes from large facilities. This adds to the cost of distributing the electricity from the large plants to the end users. There is a considerable amount of energy lost in the transmission. By generating electricity closer to those needing the energy, the transmission line loss is reduced. Moreover, if there are interruptions in the large transmission lines, some locally generated power would still be available. This actually provides an enhanced critical infrastructure. For instance, if an act of terrorism placed a large facility out of operation, many consumers would be impacted. In contrast, the loss of many small generators would have no impact. The lessons from the Japan earthquake should highlight the need for redundant power generation.

  Recommendation:

  The Department of Energy (DOE) could fund studies of converting sites that previously used water power for small scale hydroelectric generation. To accomplish this, common designs should be developed that minimize environmental impact, offer module construction, with a focus on adapting to those physical locations that once used water power. Furthermore, these should use a secure implementation of supervisory control and data acquisition (SCADA) and connect to the smart grid. By using a standard implementation (much like a modular home), the DOE could purchase the generators with facilities in quantity; thereby driving down the cost. Furthermore, these should be designed for unattended operation with SCADA reporting the health of the system.

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  Fund Low Energy Fusion Research

  Discussion: Since Pons and Fleischmann posited their work on cold fusion, the topic has been one of controversy [1]. The two scientists claimed to have produced a fusion reaction where more energy was produced that applied to the experiment. Results around the world were mixed and the work went on to be ridiculed. However, advances continued with a fresh look at the technology in 2009 when Navy scientists in San Diego ...more »

  Discussion:

  Since Pons and Fleischmann posited their work on cold fusion, the topic has been one of controversy [1]. The two scientists claimed to have produced a fusion reaction where more energy was produced that applied to the experiment. Results around the world were mixed and the work went on to be ridiculed. However, advances continued with a fresh look at the technology in 2009 when Navy scientists in San Diego presented results suggesting cold fusion [2, 3].

  The main challenge with fusion is getting the heavy hydrogen molecules close enough (read nuclear distance). The tried and proven method has been using high energy approaches such as nuclear weapons and using lasers to force the proper proximity. From a physics 101 view point, electrolysis (used in the experiments) forces heavy hydrogen (deuterium) ions in the palladium electrode. On the surface, this looks like a reasonable description of how we could get the proper nuclear distance. What we may be faced is we simply don’t know what we don’t know. Consider that Edison tried thousands of combinations before he came up with a consistent implementation that resulted in a patent for the light bulb.

  “I have not failed. I’ve just found 10,000 ways that won’t work.” – Thomas A Edison

  Recommendation:

  Have the Department of Energy conduct more applied research to further explore the potential for cold fusion (low energy fusion). While this may be a long shot, we should not overlook any research that could help us reduce our dependence on imported oil.

  References:

  1. Sarasota Herald-Tribune/AP, ‘Cold-Fusion’ Researchers Attack Criticism by Scientific Journal, May 1, 1989.

  2. Harmon, Katherine, Scientific American, After 20 years: New life for cold fusion?, March 23, 2009.

  3. Johnson, R Colin, EE Times, Cold fusion experimentally confirmed, March 23, 2009.

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  Natural Gas Suggestions

  Now that the President has included Natural Gas as part of the energy way forward, there are some suggestions to improve adoption. The stated goal was to reduce oil imports by one third in 2025. This acknowledges the need for alternative hydrocarbon based fuels will continue for some time. The first is to have the department of Energy (DOE) conduct applied research into vehicle sized liquefied natural gas (LNG) tanks. ...more »

  Now that the President has included Natural Gas as part of the energy way forward, there are some suggestions to improve adoption. The stated goal was to reduce oil imports by one third in 2025. This acknowledges the need for alternative hydrocarbon based fuels will continue for some time.

  The first is to have the department of Energy (DOE) conduct applied research into vehicle sized liquefied natural gas (LNG) tanks. Currently, the compressed natural gas (CNG) takes up too much volume and is practical only for the larger vehicle (busses, trucks, vans, and the like). The research might consider graphic (and other) composite materials that would allow LNG to be used for personal owned vehicles. {Note: a vehicle that runs on natural gas will run on hydrogen.

  Second, use natural gas to create other fuels less volatile. Case in point, the Air Force successfully conducted tests of aviation fuel created from natural gas [1]. One could use the same concept to create other fuels, including gasoline and propane (already used extensively in other parts of the world). Propane for cars, referred to as autogas, is easier to handle and provides a bridging technology.

  Third, many of our landfills and outer organic waste are potential sources to recover natural gas. Many times, we hear of gas explosions in the sewer lines. Again, the DOE could fund applied research into ways to recover more of this naturally occurring byproduct of organic decay.

  References

  1. Abramson, Mark, Starts and Stripes, Air Force explores potential of powering aircraft with nonpetroleum sources, April 18, 2001.

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  Eliminate Catalytic Converters

  Background: With the turmoil we are seeing in the Middle-East and a retreat from nuclear energy; we can expect the demand for oil will increase. Consequently, we should look at our current regulatory processes for ways to reduce energy consumption. During the 60’s cars lacked computers and exhaust gases included quantities of carbon monoxide (CO). At the time, the best approach to getting a more complete burn to carbon ...more »

  Background:

  With the turmoil we are seeing in the Middle-East and a retreat from nuclear energy; we can expect the demand for oil will increase. Consequently, we should look at our current regulatory processes for ways to reduce energy consumption.

  During the 60’s cars lacked computers and exhaust gases included quantities of carbon monoxide (CO). At the time, the best approach to getting a more complete burn to carbon dioxide (CO2) was to use a catalytic converter. Essentially, the carbon monoxide was passed through the converter where it was further oxidized into carbon dioxide. Note: carbon monoxide, in quantity, is harmful to animal life.

  The drawbacks of catalytic converters are: 1) they restrict the exhaust thereby requiring more work from the engine (reduces performance and increases fuel consumption); 2) fuels with traces of other chemicals, such as sulfur, are converted to the most powerful acids known to man; 3) Adds weight to the vehicle; and 4) adds additional cost to the vehicle. The result is in increase in acid rain and the burning of more fossil fuel. Case in point, when sulfur is burned, it produces SO2. When SO2 is passed through a platinum based catalytic converter, it is converted to SO3 (sulfur trioxide). This is turn, when added to water becomes sulfuric acid (H2SO4), battery acid.

  With new cars, computers check the fuel air mixtures many times per second resulting in near optimum burns. Consequently, the catalytic converter no longer achieves its original purpose. By removing the requirement for catalytic converters in new cars, less fuel will be burned, acid rain will be reduced, vehicle weight reduced, engine performance improved, and the cost per vehicle reduced.

  Recommendation:

  Remove the requirement to include catalytic converters in new vehicles. We can still set the pollution and emission requirements; just not force a particular technology for accomplishing the stated objective.

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  Ideas to Make Other Parts of Government More Efficient and Effective »

  Plan tech refreshes as part of Exhibit 300

  Discussion: Many Information Technology (IT) investments plan for tech refreshes at predefined intervals typically between 3 to 5 years. The thought is that advances and lack of vendor support necessitate the need to refresh hardware and software. In reality, many of these systems have many more years of life but due to technology refresh planning, these systems are updated anyway. What’s more, many software vendors ...more »

  Discussion:

  Many Information Technology (IT) investments plan for tech refreshes at predefined intervals typically between 3 to 5 years. The thought is that advances and lack of vendor support necessitate the need to refresh hardware and software. In reality, many of these systems have many more years of life but due to technology refresh planning, these systems are updated anyway. What’s more, many software vendors will not support older versions of their product. This costs Government agencies staggering amounts of money in trying to keep up legacy applications with the vendor rush to market products. We are now seeing significant losses due to exploited security vulnerabilities in the new products. This hidden cost is increasing and necessitates a re-examination of the large system planning.

  Suggestions:

  Have the OMB require Exhibit 300’s plan for tech refreshes on 7-year intervals. This will force a closer examination of licensing agreements and open source solutions. In reality, due to budget constraints, we will likely have to cut back on tech refreshes. Planning for such events will improve the return on investment.

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  Convert to Natural Gas

  Discussion: In the Washington Metro Area, most of the metro busses have converted from diesel to natural gas. The first change noticed is the improvement in air quality. The old busses caused lung burning smoke that was costly in terms of fuel prices and public health. Using CH4 for natural gas, we have the following: CH4 + 2O2 -> CO2 + 2H2O That is, one molecule of natural gas (CH4) combines with 2 molecules of ...more »

  Discussion:

  In the Washington Metro Area, most of the metro busses have converted from diesel to natural gas. The first change noticed is the improvement in air quality. The old busses caused lung burning smoke that was costly in terms of fuel prices and public health.

  Using CH4 for natural gas, we have the following:

  CH4 + 2O2 -> CO2 + 2H2O

  That is, one molecule of natural gas (CH4) combines with 2 molecules of oxygen to product one molecule of carbon dioxide and two molecules of water vapor. What’s more, the U.S. has an abundance of natural gas supplies. With the anticipated rise in oil prices, converting to Natural Gas will be a continuous saving in dollars and air quality.

  Suggestion:

  Start a program of converting Government vehicles to Natural Gas

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  Eliminate TSA Screening for PIV/CAC holders

  Discussion: At many of the U.S. Airports, security screen is long and costly. What’s more, a number of travelers are on official Government travel and have a PIV/CAC card. As a precondition, these travelers required a background check (as required by HSPD-12). Furthermore, in many cases, the TSA screeners have not been vetted to the same degree as the people they are screening. Suggestion: The TSA should have PIV/CAC ...more »

  Discussion:

  At many of the U.S. Airports, security screen is long and costly. What’s more, a number of travelers are on official Government travel and have a PIV/CAC card. As a precondition, these travelers required a background check (as required by HSPD-12). Furthermore, in many cases, the TSA screeners have not been vetted to the same degree as the people they are screening.

  Suggestion:

  The TSA should have PIV/CAC card readers so that holders of approved Government cards (PIV/CAC) can be validated at the airport. Once validated, these travelers should be allowed to circumvent the screening line. This would have the effect of reducing the screening burden, reducing the overall length of lines and provide a realization of Background Investigation reciprocity.

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  Provide and require public smartcards for on-line banking

  Background: Businesses (and home users) of on-line banking are suffering significant financial losses [1]. Even the large banks, such as Morgan Stanly have been victimized by today’s sophisticated hackers [2]. What’s more, we don’t have good information on the total scope of these losses. Case in point, in 2000, Egghead online was victimized by a hacker attack [3]. After reporting this loss, within a year, the company ...more »

  Background:

  Businesses (and home users) of on-line banking are suffering significant financial losses [1]. Even the large banks, such as Morgan Stanly have been victimized by today’s sophisticated hackers [2]. What’s more, we don’t have good information on the total scope of these losses. Case in point, in 2000, Egghead online was victimized by a hacker attack [3]. After reporting this loss, within a year, the company was in bankruptcy [4]. Clearly, there is little incentive for business to acknowledge losses when it could be the end of the business.

  When consumers and industry lose money to the degree we are seeing today, the ability to hire more people, pay more taxes, and compete internationally are impacted. Furthermore, the average bank customer is not a security expert.

  Suggestion:

  Banks and brokerage firms should provide smartcard reader and cryptographic based smartcards as a pre-condition for on-line use. The U.S. Government has excellent standards and has shown that PIV/CAC cards are welcome (especially when users need only remember a single PIN). By using such devices, the loss due to cybercrime can be reduced significantly. This is a service to the citizen where the Government has expertise that the taxpaying public lacks. We should make this service widely available and enforce regulatory changes to improve overall security.

  References:

  1. Krebs, Brian, Washington Post, The Growing Threat to Business Banking Online, July 20, 2009.

  2. Riley, Michel, Bloomberg, Morgan Stanley Attacked by China-Based Hacker Who Hit Google, February 28, 2011.

  3. New York Times, A Hacker May Have Entered Egghead Site, December 22, 2000.

  4. Mahoney, Michael, E-Commerce Times, Egghead Files for Bankruptcy, Sells Assets, August 16, 2001.

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  Increased Product Inspection

  Many of our negative trade partners apply inspections to U.S. goods to an extent not reciprocated. Currently, we lack the inspection base to adequately inspect all goods entering into the U.S. As a consequence, we are penalizing our industry while allowing for the potential harmful goods entering into our country. From a National Security perspective, complete inspections would enhance security. The cost of the inspections ...more »

  Many of our negative trade partners apply inspections to U.S. goods to an extent not reciprocated. Currently, we lack the inspection base to adequately inspect all goods entering into the U.S. As a consequence, we are penalizing our industry while allowing for the potential harmful goods entering into our country. From a National Security perspective, complete inspections would enhance security. The cost of the inspections should be included as part of the entry cost for the goods. This will have the effect of creating more inspector jobs, paid for by import fees. Moreover, this will balance the trade by increasing the cost of the import thereby making domestic manufacturing more attractive.

  Consider we are averaging over a $20 billion trade deficit with China every month. Moreover, we have seen product safety issues with such as: toxic sheetrock, lead painted toys, ethylene glycol laced tooth paste, toxic wheat gluten, defective baby cribs, and anti-biotic laced food. By hiring more inspectors, we will be enhancing product safety while increasing employment.

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  Stock Transaction Mediation

  Issue: On May 6, 2010, the stock market experienced what is referred to as a ‘flash crash.’ By the day’s end, the market ended up 600 points lower [1]. Without a solid market, economic recovery and thereby the tax base for the Government is at risk. Today, significant trading takes place without human intervention. Powerful computers host artificial intelligence programs referred to as ‘algos’, soft for algorithmic. ...more »

  Issue:

  On May 6, 2010, the stock market experienced what is referred to as a ‘flash crash.’ By the day’s end, the market ended up 600 points lower [1]. Without a solid market, economic recovery and thereby the tax base for the Government is at risk. Today, significant trading takes place without human intervention. Powerful computers host artificial intelligence programs referred to as ‘algos’, soft for algorithmic. As investigations continue, the root cause for the flash crash is pointing toward algos [2]. Moreover, immediately following the crash, algos were considered a target [3]. A significant problem is that regulations cannot mediate the actions of algos. Once the damage is done, it’s done.

  Proposed Solution:

  To properly mediate transactions, the Government needs computers to mediate transactions in real-time. That is, Government machines would act as stock specialists and mediate changes in real-time. Moreover, a modest transaction fee would provide the necessary funding and provide a valuable income stream for the Government. Further, this would provide information necessary for various types of securities fraud and cyber security attacks.

  References:

  [1] Bowley, Graham, New York Times, Lone $4.1 Billion Sale Led to ‘Flash Crash in May, October 1, 2010.

  [2] Orol, Ronald D., Market Watch, SEC, CFTC blame algorithm for ‘flash crash’, October 1, 2010.

  [3] Goldstein, Matthew, Reuters, Stock plunge raises alarm on algo trading, May 7, 2010.

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