Tag Archives: venta

Republicans Haven’t Canceled Their Ethics Office Hit Job, Just Delayed It

Mother Jones

<!DOCTYPE html PUBLIC “-//W3C//DTD HTML 4.0 Transitional//EN” “http://www.w3.org/TR/REC-html40/loose.dtd”>

According to the Washington Post, House Republicans have backed off their plan to gut their ethics committee:

House Republicans scrapped plans to weaken an independent ethics watchdog on Tuesday after a backlash from President-elect Donald Trump, as a new period of Republican-led governance started taking shape on a tumultuous note.

The House GOP moved to withdraw changes made the day before to official rules that would rein in the Office of congressional Ethics. Instead, the House will study changes to the office with an August deadline.

Trump took to Twitter to slam House Republicans for voting behind closed doors Monday night to weaken the independent ethics office. The vote defied House GOP leaders and complicated Trump’s “drain the swamp” campaign mantra.

Oh please. The backlash was in full swing last night, long before Trump’s tweet. And anyway, Trump didn’t object to Republicans gutting the ethics office. He just thought they should do it later, when fewer people might notice. And that’s what they’re doing. They’ll “study changes” and then gut the office in August, when everyone is on vacation.

Can we please stop pretending that everything in the country is happening as a direct result of Trump’s tweets? For God’s sake.

Original source: 

Republicans Haven’t Canceled Their Ethics Office Hit Job, Just Delayed It

Posted in Everyone, FF, GE, LG, ONA, Uncategorized, Venta | Tagged , , , , , , , , | Comments Off on Republicans Haven’t Canceled Their Ethics Office Hit Job, Just Delayed It

Trump’s Treasury Pick Excelled at Kicking Elderly People Out of Their Homes

Mother Jones

<!DOCTYPE html PUBLIC “-//W3C//DTD HTML 4.0 Transitional//EN” “http://www.w3.org/TR/REC-html40/loose.dtd”>

This story originally appeared on ProPublica.

In 2015, OneWest Bank moved to foreclose on John Yang, an 80-year-old Korean immigrant living in Orange Park, Florida, a small suburb of Jacksonville. The bank believed he wasn’t living in his home, violating the terms of its loan. It dispatched an agent to give him legal notification of the foreclosure.

Where did the bank find him? At the same single-story home the bank had said in court papers he did not occupy.

Still OneWest pressed on, forcing Yang, a former Christian missionary, to seek help from legal aid attorneys. This year, during a deposition, an employee of OneWest’s servicing division was asked the obvious question: Why would the bank pursue a foreclosure that seemed so clearly unjustified by the facts?

The employee’s response was blunt: “You’re trying to make logic out of an illogical situation.”

Yang was lucky. The bank eventually dropped its efforts against him. But others were not so fortunate. In recent years, OneWest has foreclosed on at least 50,000 people, often in circumstances that consumer advocates say run counter to federal rules and, as in Yang’s case, common sense.

President-elect Donald Trump’s nomination of Steven Mnuchin as Treasury Secretary has prompted new scrutiny of OneWest’s foreclosure practices. Mnuchin was the lead investor and chairman of the company during the years it ramped up its foreclosure efforts. Representatives from the company and the Trump transition team did not respond to requests for comment.

Records show the attempt to push Mr. Yang out of his home was not an unusual one for OneWest’s Financial Freedom unit, which focused on controversial home loans known as reverse mortgages. Regulators and consumer advocates have long worried that these loans, popular during the height of the housing bubble, exploit elderly homeowners.

The loans allow people to benefit from the equity they have built up over many years without selling their houses. The money is paid in a variety of ways, from lump sums to a stream of monthly checks. Borrowers are allowed to stay in their homes for as long as they live.

The loans are guaranteed by the US Department of Housing and Urban Development, meaning the agency pays lenders like Freedom Financial the difference between the ultimate sale price of the home and the size of the reverse mortgage.

But the fees are often high and the interest charges mount up quickly because the homeowner isn’t paying down any of the principal on the loan. Homeowners remain on the hook for property taxes and insurance and can lose their homes if they miss those payments.

A 2012 report to Congress by the Consumer Financial Protection Bureau said that “vigorous enforcement is necessary to ensure that older homeowners are not defrauded of a lifetime of home equity.”

ProPublica found numerous examples where Financial Freedom had foreclosed for legally questionable reasons. The company served several other homeowners at their homes to let them know they were being sued for not occupying their homes. In Florida, a shortfall of only $0.27 led to a foreclosure attempt. In Atlanta, the company sought to foreclose on a widow after her husband’s death, but backed down when a legal aid attorney sued, citing federal law that allowed the surviving spouse to remain in the home.

“It appears their business approach is scorched earth, in a way that doesn’t serve communities, homeowners or the taxpayer,” said Alys Cohen, a staff attorney for the National Consumer Law Center in Washington D.C.

Since the financial crisis, OneWest, through Financial Freedom, has conducted a disproportionate number of the nation’s reverse mortgage foreclosures. It was responsible for 16,200 foreclosures on government-backed reverse mortgages, or 39 percent of all foreclosures nationwide, from 2009 through late 2014, even though it only serviced about 17 percent of the loans, according to government data analyzed by the California Reinvestment Coalition, an advocacy group for low-income consumers. While some foreclosures were justified, legal aid attorneys say Financial Freedom has refused to work with borrowers in foreclosure to establish payment plans, in contrast with other servicers of reverse mortgages.

Experts say the companies are not entirely to blame for the wave of foreclosures. HUD oversees standards on most reverse mortgages. In the years after the housing crash, HUD’s rules evolved, creating a miasma of confusion for mortgage servicers. Companies say the new federal rules required them to foreclose when borrowers fell far behind on property and insurance costs, rather than work out payment plans.

OneWest’s rough treatment of homeowners extended to its behavior toward borrowers with standard mortgages in the aftermath of the housing crash. In 2009, the Obama administration launched a program to encourage mortgage servicers to work out affordable mortgage modifications with borrowers. OneWest, weighed down by several hundred thousand souring mortgages, signed up.

It didn’t go well. About three-quarters of homeowners who sought a modification from OneWest through the program were denied, according to the latest figures from the Treasury Department. OneWest was among the worst performing large servicers in the program by that measure. In 2011, activists protested OneWest’s indifference at Mnuchin’s Bel Air mansion in Los Angeles.

“We’re in a difficult economic environment and very sympathetic to the problems many homeowners face, but under the government’s program there’s not a solution in every case,” Mnuchin told the Wall Street Journal in that year.

Despite the controversy, Mnuchin and the other investors in OneWest made a killing on their purchase. In 2009, Mnuchin’s investment group bought the failed mortgage bank IndyMac, which had been taken over by the Federal Deposit Insurance Corporation after the financial crisis, changing the name to OneWest. They paid about $1.5 billion, with the FDIC sharing the ongoing mortgage losses. George Soros, a Clinton backer at whose hedge fund Mnuchin had worked, and John Paulson, a hedge fund manager who also supported Trump, invested alongside Mnuchin in IndyMac.

In 2015, CIT, a lender to small and medium-sized businesses, bought OneWest for $3.4 billion, more than doubling the Mnuchin group’s initial investment. Mnuchin personally made about $380 million on the sale, according to Bloomberg estimates. He retains around a 1 percent stake in CIT, worth around $100 million, which he may have to divest if confirmed.

CIT has found the reverse mortgage business to be a headache. Recently, CIT took a $230 million pretax charge after it discovered that OneWest had mistakenly charged the government for payments that the company should have shouldered itself. An investigation of Financial Freedom’s practices by HUD’s inspector general is ongoing.

Yang’s lawyers at Jacksonville Area Legal Aid fought his foreclosure for a year. Though Yang had run a dry cleaning business in Florida and roamed the world as a missionary, working in North Korea, China, and Afghanistan, the bank’s torrent of paperwork had overwhelmed him. Yang didn’t speak English well. OneWest claimed it had sent him forms to verify he was living at his home, but that he never sent them back.

Under HUD rules, OneWest was required to verify that each borrower continued to use the property as a principal residence. It is a condition of all the HUD-backed loans in order to help ensure the government subsidy goes to those who need it.

But Yang can be forgiven for thinking that OneWest could not have doubted that he was still in his home. During the same period that OneWest was moving to foreclose on Yang for not living in his home, another arm of the bank regularly spoke and corresponded with him at his home about a delinquent insurance payment, according to court documents.

A Financial Freedom employee testified in the case that the department that handled delinquent insurance payments and the department that handled occupancy did not communicate with each other in those circumstances.

More – 

Trump’s Treasury Pick Excelled at Kicking Elderly People Out of Their Homes

Posted in alo, FF, GE, LAI, LG, ONA, ProPublica, PUR, Radius, Ultima, Uncategorized, Venta | Tagged , , , , , , , , | Comments Off on Trump’s Treasury Pick Excelled at Kicking Elderly People Out of Their Homes

The Lesson of 2016: Rabid Congressional Investigations Work

Mother Jones

<!DOCTYPE html PUBLIC “-//W3C//DTD HTML 4.0 Transitional//EN” “http://www.w3.org/TR/REC-html40/loose.dtd”>

So what did we learn this year? That America is more susceptible to authoritarian populism than we thought? Not really. Trump’s victory was a fluke, driven by Russian hacking, James Comey, and some bad polls in a few states.

That racism is on the rise? There’s really no evidence of that.

That Democrats need to pay more attention to the white working class? Maybe, but no matter how many times people say otherwise, that really wasn’t a root cause of Hillary Clinton’s defeat.

I could go on, but instead I want to suggest something the 2016 election does teach us: persistent, obsessive investigations pay off. In the 90s, Republicans started investigating Whitewater. Even Ken Starr knew there was nothing to this after a couple of years, but he was put under pressure to keep at it, and eventually he hit some fluke paydirt: Monica Lewinsky. This had nothing to do with Whitewater, but who cares? Scandal is scandal, and it rubbed off enough on Al Gore that Republicans took back the presidency in 2000.

Fast forward to 2012. Hillary Clinton did nothing wrong related to Benghazi. That was clear pretty quickly, but Republicans kept at it. I laughed at them at the time, but they had the last laugh when they once again hit a fluke bit of paydirt: Clinton’s private email server. Clinton didn’t really do anything seriously wrong here either, but it didn’t matter. Republicans kept at it for the next year and a half, and that was enough to convince a lot of people that Clinton was, somehow, corrupt and untrustworthy. That allowed Republicans to retake the presidency.

There was lots of other stuff going on too, but this is now twice that maniacal dedication to an investigation has paid off for Republicans. It’s basically a way of hacking the media, which feels like it has no choice but to cover congressional investigations on a daily basis. It’s news, after all, no matter how you define news.

So that’s a lesson for sure. I’m just not sure what the solution is.

View original:  

The Lesson of 2016: Rabid Congressional Investigations Work

Posted in FF, GE, LG, ONA, Uncategorized, Venta | Tagged , , , , , , , , , | Comments Off on The Lesson of 2016: Rabid Congressional Investigations Work

The Future of Mass Transit Is Driverless

Mother Jones

<!DOCTYPE html PUBLIC “-//W3C//DTD HTML 4.0 Transitional//EN” “http://www.w3.org/TR/REC-html40/loose.dtd”>

When we talk about driverless cars, we usually talk about driverless cars. But I was musing the other day about other driverless vehicles, and in particular how driverless technology will affect mass transit. I suspect it will make mass transit far more useful and more popular. I’m sure others have written about this in more detail, but here are my musings:

Driverless buses. First of all, if we can build driverless cars, we can also build driverless buses and driverless light rail/subways.

Cheaper buses. Especially in the case of buses, labor is a big part of the expense of operating a mass transit system. If buses become driverless, mass transit becomes cheaper, and that means metro authorities can afford to run buses more frequently. Frequency is one of the key features that determines how popular mass transit is, so this is a virtuous circle. The cheaper it is to operate buses, the more frequently they can run, and the more frequently they run, the more people will use them. Rinse and repeat.

The last mile. Driverless cars solve the “last mile” problem. If I want to use a bus or train to commute to Los Angeles, I still need to get from the station to my workplace. If that’s inconvenient—maybe my workplace is two miles away from the nearest bus stop, or maybe I’m just lazy—then I’ll skip mass transit entirely. But it’s easy to see how you could subscribe to a service that would track your progress and have a small driverless car waiting for you when you get off the bus. Hop in the car and it takes you the last mile. And since the car is driverless, it’s cheap and efficient.

None of this means that cars will go away, of course. Commuting via car will also become more appealing if you get to sit back and relax the whole time. That said, if buses can be made a lot more convenient by a combination of more frequent operation and fleets of little cars for the last mile—and a lot cheaper than commuting as well—driverless technology could be the greatest boost for mass transit since the invention of the subway.

Continue reading:

The Future of Mass Transit Is Driverless

Posted in FF, GE, LG, ONA, Uncategorized, Venta | Tagged , , , , , , , , , , , | Comments Off on The Future of Mass Transit Is Driverless

Fox News and Food Stamp Fraud: The Finale

Mother Jones

<!DOCTYPE html PUBLIC “-//W3C//DTD HTML 4.0 Transitional//EN” “http://www.w3.org/TR/REC-html40/loose.dtd”>

Abby Huntsman promised to “address” her baseless story about food stamp fraud on Fox & Friends today. So how did she do? Mediaite tells us:

Huntsman admitted the error the following day, reading a correction twice on-air: “We reported that back in 2016, $70 million were wasted on food stamp fraud. That was actually incorrect.”

“The latest information from 2009 to 2011 shows the fraud at 1.3%, which is approximately $853 million for each of those three years, and nationally food-stamp trafficking is on the decline. So sorry about that mistake,” she said.

“Food stamp trafficking is on the decline.” I wonder how much of her audience understands that this means “food stamp fraud is on the decline”? Oh well. At least she mentioned it.

I have to say, though, that what I’m really curious about is where the original $70 million figure came from. Made up out of thin air? Somebody read the wrong column in a report? Or what? I literally can’t think of what sort of data you could dig up that would lead to this number, even in error. I suppose we’ll never know.

Continued here – 

Fox News and Food Stamp Fraud: The Finale

Posted in FF, GE, LG, ONA, Uncategorized, Venta | Tagged , , , , , , , , , | Comments Off on Fox News and Food Stamp Fraud: The Finale

Chart of the Day: Food Is Cheap!

Mother Jones

<!DOCTYPE html PUBLIC “-//W3C//DTD HTML 4.0 Transitional//EN” “http://www.w3.org/TR/REC-html40/loose.dtd”>

Whenever you point out that inflation is pretty low these days, you can expect a flurry of responses along the lines of, “Have you seen the price of eggs lately?!?” As it happens, yes, I have. More to the point, the US government tracks food inflation, and it’s really low right now. As in negative. Food bought in stores (as opposed to restaurant food) is 2.2 percent cheaper than it was a year ago. This means the average family is spending about $150 less on groceries than they did in 2015. Happy Holidays!

Visit link: 

Chart of the Day: Food Is Cheap!

Posted in alo, FF, GE, LG, ONA, Uncategorized, Venta | Tagged , , , , , , , , , , , | Comments Off on Chart of the Day: Food Is Cheap!

Amazon Has the Deepest Penetration of Any Retailer In History

Mother Jones

<!DOCTYPE html PUBLIC “-//W3C//DTD HTML 4.0 Transitional//EN” “http://www.w3.org/TR/REC-html40/loose.dtd”>

From the Wall Street Journal:

Not Everyone Wants to Shop on Amazon

Chris Outwater is among the 17% of U.S. primary household shoppers who say they never shop on Amazon, according to data from Kantar Retail ShopperScape. While the percentage has steadily declined over the past five years, roughly 22 million American households didn’t use the retailer this year.

Those Amazon holdouts tend to be older than U.S. shoppers overall, with an average age of 57 versus 49, respectively, according to Kantar, and they tend to earn less—$45,700 in annual income, compared with $62,800 among all shoppers. They are less likely to have or live with children.

Talk about burying the lede. Maybe I just haven’t been paying attention, but the news to me is that 83 percent of “primary household shoppers” shopped at Amazon at least once last year. Compare that to this from a June story in the Journal:

While total online spending comprised 7.8% of all retail purchases in the first quarter, according to the Commerce Department, more than half the population, or about 190 million U.S. consumers, will shop online this year, according to Forrester.

This is roughly 80 percent of all US adults, which jibes pretty well with the Kantar number. Basically, about 80 percent of all US adults shop online at least a little, and every single one of them has shopped at Amazon once or more. In other words, among online shoppers, close to 100 percent have shopped at Amazon. Is there any other retailer on the planet who can claim anything close to that number?

From:  

Amazon Has the Deepest Penetration of Any Retailer In History

Posted in Everyone, FF, GE, LAI, LG, ONA, PUR, Uncategorized, Venta | Tagged , , , , , , , , , | Comments Off on Amazon Has the Deepest Penetration of Any Retailer In History

Trump Looking for Hispanic to Take Agriculture Post

Mother Jones

<!DOCTYPE html PUBLIC “-//W3C//DTD HTML 4.0 Transitional//EN” “http://www.w3.org/TR/REC-html40/loose.dtd”>

Politico reports on Donald Trump’s search for a Secretary of Agriculture:

Trump met Wednesday with two Hispanic politicians at his Mar-a-Lago resort in Palm Beach to discuss the possibility of taking on the agriculture post: Dr. Elsa Murano, a former U.S. agriculture undersecretary for food safety, who is Cuban-American, and Abel Maldonado, a Mexican-American who is a former California lieutenant governor and co-owner of Runway Vineyards.

I imagine Trump’s interior monologue for his cabinet choices has gone something like this:

Lessee. Solid, silver-haired white guy for State. Check. Retired general for Defense. Check. Personal financial crony for Treasury. Check. What else? Teachers are all women, so Betsy is good for Education. Urban is code for black, so Ben will fit in at HUD. Lotta oil wells in Texas, so maybe a Texan for Energy. Perry can do it. Somebody exotic-looking for UN ambassador. Nikki really looks the part. Asians are bad drivers, maybe Elaine can get through to them at Transportation. Fill out the rest with a bunch of dull white guys. I’ll let Pence take care of it. And Agriculture. Hmmm. Gotta be Hispanic, right? They’re the ones who pick all the crops. But who?

If only I were just joking with this.

See original:  

Trump Looking for Hispanic to Take Agriculture Post

Posted in FF, GE, LAI, LG, ONA, Uncategorized, Venta | Tagged , , , , , , , , , | Comments Off on Trump Looking for Hispanic to Take Agriculture Post

Two Cheers For the Nanny State

Mother Jones

<!DOCTYPE html PUBLIC “-//W3C//DTD HTML 4.0 Transitional//EN” “http://www.w3.org/TR/REC-html40/loose.dtd”>

The nanny-staters at the EU are at it again:

E.U. regulations adopted in 2012 require that all newly manufactured trucks heavier than 3,500 kilograms (3.9 tons) be fitted with an advanced emergency braking system. The systems use radar and cameras to detect obstacles and warn the driver. In the event of a crash, the brakes may stop the vehicle entirely. Although the driver can override the brakes, an inexperienced user may not know how.

They just can’t get enough, can they? This raises the cost of trucks, raises the cost of goods carried in trucks, and probably has only a minuscule—

Wait. What?

The truck attack on a Christmas market in Berlin last week may have been cut short when the truck automatically deployed its brakes, the result of European Union regulations that require automatic braking systems on large trucks.

The new detail, revealed jointly by Germany’s Süddeutsche Zeitung newspaper and broadcasters NDR and WDR on Tuesday, may explain why the truck came to a stop after a few hundred feet. In the end, twelve people were killed in the attack, but there are indications that the E.U.-mandated advanced emergency braking system may have prevented more deaths.

How about that? The regulatory state FTW.

Continued here: 

Two Cheers For the Nanny State

Posted in FF, GE, LAI, LG, ONA, Uncategorized, Venta | Tagged , , , , , , , , , | Comments Off on Two Cheers For the Nanny State

How the "Trump Effect" Could Undermine Germany’s Clean Energy Revolution

Mother Jones

<!DOCTYPE html PUBLIC “-//W3C//DTD HTML 4.0 Transitional//EN” “http://www.w3.org/TR/REC-html40/loose.dtd”>

The world’s most advanced energy revolution has hit an obstacle: the Trump effect.

Germany has long been a clean energy pioneer. Despite the fact that the sun hardly shines there, the country was the world leader in installed solar capacity until it was finally overtaken last year by China, a vastly larger and sunnier country. By 2050, Germany aims to get 80 percent of its electricity from renewable sources and to cut its greenhouse gas emissions by as much as 95 percent. It currently derives about one-fifth of its power from wind and solar (and one-third from total renewables), compared to just 5 percent in the United States. Even though this dramatic energy transition—known as the Energiewende—has contributed to higher household electricity costs, 90 percent of Germans say they support it.

For years, Germany’s mainstream political parties have supported clean energy, too. But that broad consensus could soon face a significant test, another possible casualty of the resurgence of right-wing, nativist politics across the Western world. Unlike many of its neighbors, Germany hasn’t had a far-right party represented in its parliament since the Second World War. But that’s almost certain to change next year, when national elections could make the Alternative for Germany party (known by its German acronym, AfD) the second- or third-strongest faction in the government, if polling trends continue. The party, which began as a euro-skeptic movement, has built its success on stringent opposition to immigration and admission of refugees—and on inflammatory rhetoric that echoes the campaign of Donald Trump.

The AfD also opposes Germany’s clean energy policies. It’s calling for an end to the law behind the Energiewende and even questions the existence of human-induced climate change, stating on its website, “Scientific research on the long-term development of the climate because of man-made CO2 emissions is fraught with uncertainty.” Now, in an effort to slow the AfD’s rapid rise, the country’s mainstream parties could be poised for a step back in the fight against global warming.


It’s hard to overstate the importance of Germany’s energy transition. Several countries get a higher percentage of their electricity from renewables, but Germany’s economy and manufacturing industry are far larger, making the Energiewende a model for a cleaner future among economic superpowers.

“If it succeeds, it could be a great case study for the world,” says Sven Egenter, executive director of Clean Energy Wire, which provides information about the Energiewende to journalists in Germany. “And if it fails, it could be a great case study for the world.”

But Germany will almost certainly fall short of its emissions reduction target for 2020, for one reason: It can’t kick its coal habit. Germany still gets more than 40 percent of its electricity from coal—a higher share than in the United States or any other major Western economy. That’s in part because Chancellor Angela Merkel doubled down on the country’s commitment to abandoning nuclear power after Japan’s 2011 Fukushima disaster, shutting down eight plants virtually overnight and pledging to take all the others offline by 2022. Something had to fill the void, and renewable energy production wasn’t adequate to the task, so the reliance on coal continued.

If Germany is to have any chance of meeting its longer-term targets, it will have to find a way to move off coal almost as quickly as it’s ditching nuclear. But there are several impediments to doing so. One is that wind and solar aren’t quite ready to take over. Even if their production numbers were sufficient, electricity storage and transmission would require major advances to make renewables the country’s primary electricity source.

And then there are the political hurdles—what Katharina Umpfenbach of the Ecologic Institute, an environmental think tank based in Berlin, calls “the Trump effect.”

During the US presidential campaign, Trump promised to bring coal-mining jobs back to Appalachia (and bashed alternative energy sources like wind). Voters in the region—parts of which were once Democratic strongholds—responded enthusiastically. They waved “Trump Digs Coal” signs at rallies and voted for him by overwhelming margins. Market forces will make Trump’s coal promises nearly impossible to keep, but his victory is already having a very real impact in Germany. Politicians there are looking at Trump’s success among disaffected voters in coal country and seeing similar fears among their own constituencies in areas where coal production is being phased out.

Embed from Getty Images

Trump’s election capped a year of successes for the populist right that has left mainstream politicians scrambling to shore up their support. There was the British vote to exit the European Union, the resignation of Italy’s prime minister, the near-victory of a right-wing extremist in Austria, and the growing strength of the far right in France. Merkel, dubbed the “liberal West’s last defender” by the New York Times, is now facing her own insurgency in the form of the AfD. And so she and her coalition partners, the center-left Social Democrats, are tacking to the right to bolster their eroding support.

The biggest effect is likely to be on immigration and refugee policy: Earlier this month, Merkel proposed a ban on the face veils worn by some Muslim women. Anti-refugee sentiment has only climbed since then with the attack on a Berlin holiday market last week; the chief suspect is a Tunisian asylum seeker.

But clean energy advocates worry that the Energiewende could suffer as well. “My biggest fear is that the conservatives in Merkel’s center-right Christian Democratic Union get so nervous that they also move to the right,” says Annalena Baerbock, a member of the German parliament and the Green Party’s parliamentary spokeswoman on climate policy.

Few lawmakers in Germany’s longstanding political parties—Merkel’s Christian Democrats, the Social Democrats, and the Greens, as well as smaller parties like the pro-business Free Democrats—would deny that the country ultimately has to move away from coal. That’s particularly true when it comes to lignite, a type of coal that is less efficient and burns dirtier than hard coal. Lignite alone accounts for half of the country’s carbon emissions in the electricity sector.

Just 20,000 Germans work in lignite mining, compared with at least 300,000 in renewable energy, according to Christian Redl of the think tank Agora Energiewende. (The coal industry says its figure is more like 100,000, according to Baerbock, if you include associated roles such as delivery workers.) “The issue is that it’s very concentrated in specific regions,” Redl says. “In those regions, huge numbers of people work in that sector, and there’s no renewables industry there yet.”

These regions are similar to Appalachia: economically distressed and reliant on a dying coal industry, but with an outsized influence on the political debate. One of the main regions is Brandenburg, just outside of Berlin, a portion of which Baerbock represents in the parliament. The center-left Social Democrats are doing all they can to maintain their strength in these coal regions as the AfD attempts to attract discontented voters by campaigning for the continued use of lignite to generate electricity. Already struggling to remain relevant as Merkel has established herself as the bulwark against the rising right, the Social Democrats can hardly afford to lose support among coal workers, a heavily unionized group that has historically backed them.

The political situation has created an incentive for the Social Democrats to drag their feet on the transition away from coal. It’s an uncomfortable development for Baerbock’s Greens, who laid the groundwork for the Energiewende while in a ruling coalition with the Social Democrats in the late 1990s and early 2000s

“The Social Democrats in Brandenburg, they want to keep lignite running for decades,” says Philip Alexander Hiersemenzel, a spokesman for Younicos, which is working to develop large-scale battery storage for renewable electricity, while giving a tour to journalists of the company’s industrial facility on the outskirts of Berlin.

Sigmar Gabriel, Germany’s economy and energy minister and the Social Democrats’ party chairman, rejected calls this summer for a rapid phaseout of coal. In October, he said he expects Germany to continue burning lignite into the 2040s. (“That’s absolutely hilarious,” responds Umpfenbach, “because how will we reduce emissions by 95 percent if we still have coal?”)

Hubertus Heil, vice chairman of the Social Democrats’ parliamentary group, said recently that if people in coal-producing regions were presented with an end date for the use of coal without a plan for economic assistance, “you might as well send them to the AfD right away.” (The Social Democrats’ press spokeswoman did not respond to a request for comment.)

A lignite mine in the German state of North Rhine-Westphalia. Tim McDonnell/Climate Desk

As Mother Jones reported in 2014, open-pit lignite mining has destroyed the landscapes of large swaths of Germany and has even threatened to swallow villages that stand in its way. But the devastation caused by mining could actually present an opportunity for the country to phase out coal without killing too many jobs. In the aftermath of the abrupt nuclear phaseout, I visited a small town in northern Germany whose nuclear plant had employed as many people as the town had residents. Workers there were upset at the sudden shutdown of the plant, but their frustration was mitigated by the knowledge that many of them would remain employed decommissioning the plant, a process that can take up to 15 years. Similarly, clean energy advocates suggest, some lignite miners could get jobs repairing and rebuilding the decimated landscapes of the former mines.

“It will take centuries to reconstruct the whole area,” says Baerbock, speaking in a conference room in the parliamentary office building, with a wide bay window looking out over rows of bicycle racks in the government quarter. Looming over that view is a towering smokestack from a gas-powered plant two kilometers to the north, a reminder of the work still to be done.

Residents of Appalachia have been turned off by what they see as decades of empty promises from politicians pledging to preserve coal jobs. Baerbock is determined to avoid the same fate. “We have to be very honest,” she says. “So I would never say this will not cost a single job, because I don’t believe this is true.”

The key is to manage the coal phaseout in a “socially inclusive” way, says Umpfenbach. For Germany’s mainstream parties, that means being more successful than US Democrats have been in both retaining the support of voters in mining regions and sharply cutting greenhouse gas emissions. In other words, it means finding a way to sidestep the Trump effect by coming up with a concrete solution for coal regions that has evaded American politicians.

“In my point of view,” says Baerbock, “if we find a good solution for the workers, then it’s not so hard to have the discussion of the coal phaseout.”

Success or failure, the world is watching.

Reporting for this story was supported by the International Center for Journalists.

Credit: 

How the "Trump Effect" Could Undermine Germany’s Clean Energy Revolution

Posted in alo, alternative energy, ATTRA, FF, GE, LAI, LG, ONA, Radius, solar, Ultima, Uncategorized, Venta, wind power | Tagged , , , , , , , , | Comments Off on How the "Trump Effect" Could Undermine Germany’s Clean Energy Revolution