Would cost of living decline in ’14?

Folks in the villages are edgy, quizzing if there’s any hope to dampen the spark of increases slated to kick in this year, if not already. Health premium has just gone up by 40 percent, medication, shipping rates that would push increases in food cost, including the prohibitively high cost of utilities that is likely to increase as CUC takes out loans to pay for maintenance of the old system, among others.

These increases would hit consumers heavily, decreasing their purchasing power further while wages and salaries haven’t increased at all. It stays the same and robs them of the ability to pay even for basic necessities. This scenario is very unhealthy! It definitely requires some firm leadership from upstairs. Let’s see if there’s an organized socio-economic plan to help governance on this score.

This year’s election isn’t about any of the parties now in office. It’s about the NMI and its people who have suffered long and hard under the poverty of leadership. The absence of conscious leadership has sent folks to the miserable abyss of abject poverty. This isn’t leadership but a quick trip into negligence land and mediocrity.

Have you lifted your fingers to increase the loss of purchasing powers of ALL employees whose salaries have remained basically the same while increases fire like huge sparks into the heavens? These employees must deal with a 40-percent increase in health premiums and medication, prohibitive cost of utilities, impending increase in basic food commodities, and other increases. If the answer is in the affirmative, what are they and how would it help improve their lot? What about restoring the 25 percent in pension pay?

If you will, the debate focuses on where does leadership begin efforts to reduce the cost of living for consumers throughout the islands. The right and timely decision would open up the retarded opportunities to begin timely economic revival.

Surrendering to complacency only deepens the miserable hardship in the villages. It’s time to take aggressive proactive paradigms to move the needle of growth forward.

Our economic future rests on alternative energy that requires privatization of the utility agency. A decision to privatize begins the instant infusion of some $300 million to install wind-energy power generation. It freezes and nullifies all other expenses that would have been passed on to consumers.

It fosters the establishment of a reliable and affordable energy source that would be welcome tidings for both residential and business consumers. It’s a lasting or anchor investment that would revive revenue generation beyond our wildest imaginings. It’s a way to restore the exodus of over $7 billion in foreign capital in recent past.

Indeed, there are various alternative energies available for critical review. There’s solar energy whose technology has gone Deep South. Solyndra’s startup has collapsed, leaving taxpayers across the country with some $535 million in liability. Suntech, the biggest Chinese solar firm, is bankrupt. Neither has offered much help for investment in this technology.

Solar requires large parcels of land for installation of solar panels. The NMI doesn’t have the land size for this purpose. It bumps against the homesteading and farming programs, including investments. Its power source declines when clouds move in or when dust covers the panels. Residents of Wisconsin only know too well it isn’t the technology to invest in. It costs about $15K per household. Is there a back-up system for solar power?

While solar heads south, wind energy moves north. The Department of the Interior recently granted Maryland some $7 million to purchase some 80,000 acres of land for an offshore wind turbine project. More wind power grids are slated for construction at the Texas panhandle with supplies manufactured by hundreds of workers in Colorado. Other states have seen major improvements in wind-energy technology and are mobilizing to use multiple provisions of power for its clientele. Its backup system is in battery storage facility capable of supporting power generation for at least three days.

Use of another fossil fuel known as “snake oil” or liquefied gas sounds attractive but it is equally problematic and economically questionable. Nearby Guam has shelved use of snake oil for its 250MW power plant improvement. Ours is less than 50MW. It’s good to explore the lesson in the decision to postpone before taking any leap of faith, only to find out it’s the wrong and costly decision piling hardship against bankrupt consumers.

While China has this resource, it means another purchase in fossil fuel plus the tree bark powder needed to heat up the snake oil while it burns. It’s also questionable whether oil could be shipped to the NMI. Furthermore, it would require infrastructure like pipeline and storage tank, all of which would cost money. It’s expenses that would be passed down to consumers. How do we negotiate future increases in snake oil? It’s economically impractical all the way around.

As soon as CUC is privatized with a firm decision to use wind energy, therein begins the steady and sturdy march to reining in lasting investments that would stabilize revenue generation for years to come. Leadership at whatever level owes our people timely decision on this matter. You can begin reducing the high cost of living with reliable and affordable alternative energy.

It’s a major policy decision that would require critical ocular review of alternative energy available, technology and its backup system and whether it is realistically affordable for consumers here—residential and businesses.

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The CNMI isn’t endowed with natural resources it could use to sustain current expenses and obligations. Thus the dire need to move forward in decisive fashion to begin reining-in cost before turning life on the islands into a total hellish hole.

There’s no more room for capitulation or mediocrity. It’s time to shift gears to gradually restore revenue streams lost in recent past. Inevitably, our task on this score is larger than difficult challenges we’ve dealt with in recent past. Must move forward!

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To give definition to self-government, it means certain decisions would have to be made to fix our tires that have gone off the wagon. Herein lies front and center the test of real leadership. If you aren’t sure what it entails, please step aside and let the fully suited move in.