Friday Morning Links: Governor Moonbeam, The Chinese, And Lindsey Lohan

Minnesota will buy more coal from Montana for electric utilities. Darn, that "free" wind energy is expensive.

Democrats all around, from Montana to Minnesota, shook hands, congratulated each other, signed documents, and acted just like free market capitalists, agreeing to sell more Montana coal to Minnesota.

The new Crow Tract I lease, formalized during a ceremony on Thursday, will mean millions of dollars to the Crow Tribe and a longer life for the Absaroka coal mine.

The agreement involves an estimated 145 million more tons of Rosebud McKay coal, located adjacent to the Absaroka mine. The area covers an estimated 14,000 acres in Treasure and Big Horn counties.

It will be interesting to see if President Obama lets this one go through. It means $12.5 million to the Native Americans but it must be approved by an agency of the US government.  But as folks know, one of the president's stated objectives is to kill the domestic coal industry.

RBN Energy: a great article today. The history of trading natural gas, which only began in 1992.

The Chinese and global warming: it is hotter in China.

The study by Chinese and Canadian researchers found that just because of greenhouse gases, daytime highs rose 0.9 degree Celsius (1.7 degrees Fahrenheit) in the 46 years up to 2007. At night it was even worse: Because of greenhouse gases, the daily lows went up about 1.7 degrees Celsius (3 degrees Fahrenheit).

Fortunately the world quit warming sixteen years ago. But that's pretty impressive that this increase -- less than a degree over 46 years -- was even measurable. It's even more impressive that folks believe in anthropogenic global warming. By the way, the Chinese experienced the same warming during the age of the Vikings, referred to as the Medieval Warm Period. Unfortunately, the linked article does not refute any of the irrefutable facts regarding anthropogenic global warming.

Now the good news: we all know that more warming will lead to increased demand for air conditioners.

WSJ Links

Section M (Mansion): I don't read. My wife does. Sad face.

Section D (Arena): The Masters.

Section C (Money & Investing): Two major commodities-trading firms have pretty much cornered the copper market.

Section B (Marketplace): 

• JCP seeks to raise $1 billion. Calling Harold Hamm.

• Lilly to lay off 30% of its sale reps. 

Section A:

• Report raises North Korea nuclear fears. US intel report says NK has nukes small enough to fit on missiles. Elsewhere, SecState Kerry says US intel report is bogus. Kerry, to best of my knowledge, has not acknowledged Ronald Reagan saved "our" bacon with the missile defense system Kerry fought so hard to defeat. 

• In Venezuela, almost-free gas comes at a high price. 

•  Creature combined human, ape traits. Deepening the mystery of human origins, researchers offeredthe most complete view yet of a puzzling forerunner of humankind that was a collage of primitive and modern anatomy. Think: body-mind meld Michael Jordan and Al Franken.

• Guest workers' flight irks sheep ranchers: some shepherds brought in from overseas are bolting to take other jobs. No, say it isn't true. One's first clue: when the "shepherds" show up in South Dakota with pocket protectors.


• Op-ed: Terry  McAuliffe's Solyndra -- running for governor of Virginia, the Democrat's main business credential is fast turning into a crony-capitalist embarrassment. I have no dog in that fight. Let the Virginians sort this out for themselves.

• Op-ed: Now President Obama is after your IRA. Not unexpected.

LA Times

Governor Moonbeam is hoping he can convince China to help pay for his bullet high-speed conventional train-to-nowhere.

Gov. Jerry Brown's trade mission to China this week is intersecting with one of the most controversial issues of his governorship: California's $68-billion bullet train.

The governor has staked part of his legacy on the rail network, a centerpiece of his vision for California. He is hoping that China, which is enjoying an economic boom and spent $77.6 billion on overseas investments last year, according to official figures, will pump some of its cash into the troubled project.

The Chinese interest in California's project is a welcome boost for Brown. Although state voters approved $10 billion in bonds for a high-speed railway in 2008, they have soured on it as cost estimates have ballooned by tens of billions of dollars. The governor, who has vowed repeatedly to see the train system built, needs at least an additional $55 billion to make it happen.

A couple of data points.

First, anyone who thinks any government funded project (in fact, any project, even private projects) will come in under budget are lacking real-world experience. And government-funded projects become disasters ... perhaps Californians should study Boston's experience with the "Big Dig."

Second, I did not realize that voters approved only $10 billion for a project that will cost significantly more than $70 billion. And then, to put the additional $60 billion that Governor Brown needs: China, during a period of economic boom, invested $80 billion OVERSEAS. Does anyone really think the Chinese will invest any meaningful amount in a California train-to-nowhere.

In fact, if the Chinese do invest in this pie-in-the-sky project, Californians better read the small print in the contract to see what the governor will give away to get that kind of dough. Californians may want to look at who will own a) the beaches; b) the Port of Los Angeles; c) the Port of Long Beach; d) Lindsey Lohan; and, e) the LA Lakers.

You know, if you throw in Lindsey Lohan, the deal might be worth it.