Positioned in one of the most prime locations in Midtown Manhattan, across the street from the magnificent St. Patrick’s Cathedral, and a brisk walk to Rockefeller Center, the New York Palace provides for all that the affluent traveler desires.

Already well known for their personalized service, the staff was surely put to the test during the wild weekend that Beyond Black visited this iconic hotel.

We arrived on the eve of Hurricane Irene’s landfall into the New York area, and the forecast was looking quite severe. As we walked under the arched colonnade and through the stately courtyard of the Villard Mansion entrance, we gazed upwards beyond the wall of dark bronze reflective glass of the hotel tower to see an ominous sky. A hurricane was fast approaching, and the city seemed to have come to an unprecedented halt.

The historic landmark which we passed didn’t seem to falter under the weight of the bombastic high winds, as it stood timeless since its cornerstone was laid in 1884. A product of railroad financier Henry Villard’s vision to bring the Palazzo della Cancellaria in Rome to the island of Manhattan, the former private brownstone townhouses just off Madison Avenue provided the most grand of entrances.

After entering the lobby and walking past the sweeping prominent staircase, we were directed to the private entrance for The Towers Rooms and Suites, a place where we would come to find welcome refuge from what the next few days would bring. The Towers, billed as a “hotel within a hotel”, contains a collection of rooms starting at 600 square feet, and includes entrance to The Tower Club on the 39^th floor. It was within the elegant confines of this club that we were able to partake in the complimentary food presentations available throughout the day, while the outside world was taking the brunt of Hurricane Irene.

This was a very unique time to visit New York City, as the vast majority of restaurants and attractions had shut down in eager anticipation of what forecasters warned could be violent winds with the force to drive a wall of water between the skyscrapers of Lower Manhattan. Ruggero Massetti and his staff were able to provide a continuous stream of delectable bites and beverages, including a full American breakfast complete with smoked salmon, and a lunch buffet of Mirin Glazed Shrimp, pastrami sandwiches, and an assortment of sushi. Wine and champagne were at the ready for those nervous storm watchers, as they had a front row seat to the stormy panorama afforded to them by the large windows facing St. Pats Cathedral.

Formerly known as The Helmsley Palace Hotel, and subsequently part of the Dorchester Collection, the Palace is now a newly-minted independent hotel thanks to its recent acquisition by Northwood Investors. With new ownership comes new money, and the New York Palace is set to receive upwards of $100 million in renovations this Summer 2012, with the early part of the work focusing on the marquee Towers Rooms and Suites. The redesign will incorporate a timeless look, with the hotel’s history as a proper guide and source of inspiration. 

If one can rate a luxury hotel on hurricane preparedness, The New York Palace surely tops the short list. We here at Beyond Black were beyond satisfied with our stay during this precarious event. We can only imagine what awaits the prospective guest once the new renovations are complete. One thing is certain, The New York Palace will continue to focus on its impeccable quality of service, something we can attest to despite the most difficult of predicaments. 

The New York Palace in Manhattan, New York

www.nypalace.com | info@nypalace.com | 212.888.7000

David S. Wong interviews Michael Kerr-Dineen, CEO and co-founder of Cheviot Asset Management.

Michael Kerr-Dineen is one of those financiers whose focus on class and quality can only be overshadowed by his determination to deliver on his promise. He has demonstrated this by walking away from giants such as UBS to prove that business can be done with complete honesty and integrity. As the former Chief Executive Office of UBS Liang & Cruickshank, Michael led 80 bankers out the door when he left UBS to form Cheviot in 2006. In less than five years, Cheviot became one of the UK’s largest independently owned investment firms with over £ 3.8 billion in assets under management.

Below is an extract of an interview with Michael Kerr-Dineen, published in full  in B Beyond magazine’s Autumn 2012 edition.

 BB I would like to ask you about your views on the current Euro debt crisis.

MKD I am very bearish about the whole thing with its political side. Europe was in denial about it for a very long time and I think they are probably just coming out of the denial stage. You just cannot engage in quantitative easing without longer term implications. The fact is, whatever they do in relation to piling money into the economies, the debt simply will not go away.

It is down to Germany who has obviously benefited from the whole situation. They are famous for taking decisions in their own economic interest, almost prepared to subjugate their political freedoms for their economic interest. However, for the first time you see splits within the German elite as to whether this is a good idea or not. It was always unwise to have a single currency without a genuinely integrated fiscal and monetary policy as well. So inherently there was a flaw from day one. Greece, Ireland and Portugal were relatively minor problems. Italy is obviously a big problem, Spain is a big problem, and the French banks too, both in their domestic markets and their sovereign lending. Even without the benefit of hindsight, it was always ridiculous to have a single currency system without integrating fiscal and monetary policies. Interest rates will continue to remain low for the foreseeable future.

BB What advice would you give people looking to set up their own firm like yourself?

MKD It is tough. It is perfectly clear that the trend is to move away from big organisations into smaller boutique firms. Part of the reason why it is difficult to start a fund is that you need a brand and a track record. It’s difficult to differentiate yourself from the rest and I think in some ways we have managed to do that at Cheviot. You will also need strong relationships and credible base team to establish a critical mass.

BB What do you think is the greatest pitfall of the finance sector as a whole? Or the greatest opportunity going forwards?

MKD The IFA (Independent Financial Advisors) and RDR (Retail Distribution Review) debate will certainly create big opportunities for the discretionary fund managers like us. The IFAs are just bailing out which will create opportunities for us. I think the structure of investment management firms is also important and I like to think that we have got it. There is still a lot of money out there that is not managed by anyone and accessing it through IFAs is a distinct possibility. Most of the inflows we get are generally new money. People are also moving to a more personal approach due to the bad performance of mutual and pension funds. Structural changes in the industry will force private banks and some wealth managers to move up the value chain, quit the market or seek a managed exit.

NB. Six months after the initial interview was conducted, Michael’s bearish outlook of the European Debt Crisis from the political perspective continues to unfold. Spain and Italy’s borrowing costs continue to soar as the European Central Bank cut interest rates to a record low of 0.75%. The US Federal Reserve is expected to keep short-term interest rates close to zero “at least through to late 2014”.  Cheviot Asset Management won the Best Performing Fund Award for its Libero Cautious Fund in March 2012. Cheviot’s Liverpool office, its first office outside of London, attracted £170m of funds under management in its first year.

This quote from Sir Winston Churchill is something of a surprise given that he was a lone voice opposing the appeasement of Nazi Germany prior to WWII. He did have a point about forecasting though. Few leaders seem capable of considering the consequences of their actions – especially the unintended variety. Reaction rather than action appears prevalent. While we are not all blessed with investment insight or prophetic visions, we can at least take time to look at the past. Comparisons with the 1930s are highly valid but there is little reason to expect an exact repetition. A domino-effect is too neat and orderly a description for events over the last 5 years that resemble a slow-motion motorway pile-up.

Others have kindly described my book as one of the most prescient predictions of the credit crisis when I published it in 2007 (The Final Crash: Addictive Debt and the Deformation of the World Economy). It compared the build up of debt to drug dependency, dividing the phases into three parts, namely Party Time, Hangover then Detox and Rehab. With a little knowledge of history it was straightforward to run through a dress rehearsal of how the crash would evolve and escalate into other crises. At the time it was understandable to be belittled by doubters or worse still, ignored. At least one can hope that the author has credibility to make some comment on the future. The chapter entitled 2020 Vision ran through a scenario where a crash led to higher taxes, inflation and greater protectionism. It made the case that in times of economic distress politics will tend to swing to the far left and right and of course a common enemy must be pin-pointed and persecuted. Leaders down the ages have used such tricks to crush dissent and unite the populace through scaremongering. Little has changed.

While President Roosevelt may justifiably be criticised for banning the public ownership of gold before devaluing the dollar during the Great Depression, he was at least correct in implementing banking reform, following the Wall Street Crash of 1929. Modern investigative committees appear to be a pale imitation of interrogators of the day like Ferdinand Pecora who exposed the double-speak of financiers with utter determination.  The subsequent implementation of the 1933 Glass-Steagall Act clearly delineated retail banking from its much riskier investment banking cousin. After many attempts this was repealed in 1999 with the naive tech-bubble view that modern folk were far more sophisticated than their ancestors. We can now appreciate the shallowness of this philosophy as banks once more mutated into speculative monsters. The lending mechanism is now broken; why should banks bother to lend money to real businesses when they can borrow cheaply from the central bank (a right not extended to governments) and use funds to buy bonds for a risk-free ride, funded by the tax payer.

History shows us that the very act of allowing reckless financial institutions to collapse is far healthier than allowing zombie banks to drag down the rest of the economy. Whether by lobby group pressure, Party funding or a simple lack of knowledge, politicians of all hues have fallen for the mantra that saving the banks will save the economy. This is best illustrated through humour than vitriol. In one episode of BBC’s ‘Blackadder’, an Elizabethan quack doctor recommends continued bleeding by leeches for a pallid patient. The doctor cites counsel from the highest medical authority; who just happens own the largest leech farm in Europe.  A similar quality of financial advice has been provided for the last 5 years by a clique of central banks, regulators and ‘industry experts’ from the same stable. Interestingly, one of the best success stories of bypassing the banking system occurred in Guernsey, transforming the island from debt-trap penury into a model of prosperity. The States committee consisted neither of lawyers nor bankers but entrepreneurial merchants who used interest-free finance for the benefit of the Bailiwick.

Other echoes of the Great Depression centre on the emergence of trade tariffs and nationalistic behaviour. With the break-up of the Gold Standard, free-floating currencies caused chaos as every country adopted beggar-thy-neighbour policies of devaluation to gain a competitive pricing edge. Now, as then, the race to the bottom for currency weakness will eventually generate significant inflation; temporarily masked by a lack of credit creation in the banking system. World trade thrives on currency and financial stability which is what the Gold Standard delivered for much of the Victorian Age, albeit with some crises along the way. So why is this relevant today? If you mix the same ingredients together you will usually get a similar-tasting cake.  In other words, by combining protectionist policies with political polarisation, tension and commodity-driven conflict are the likely end-result.

Many would argue that the lessons have been learned and that the prospect of totalitarian era is incomprehensible. After all, our children seem to study little else apart from Hitler in history lessons. While it is all well and good to analyse at the end result of tyranny, unless one understands its cause then dictatorship it is destined to be repeated. If anything we are in a worse position than the 1930’s as we have the perfect infrastructure to control, monitor and isolate individuals both financially and physically. The one-way extradition flow of Britons to America is a good example of such injustice where anti-terror legislation is routinely abused and applied to alleged financial, corporate or cyber crime.  Our freedoms have been utterly subsumed with reams of legislation justified by the War on Terror. Just as regulatory institutions are riddled with conflicted financiers, politics is dominated by the legal fraternity determined to legislate ad infinitum to the detriment of the law-abiding and entrepreneurial class. Where it gets really scary is when one imagines a scenario under severe economic duress. This is when nationalist parties come to the fore of popularity and the apparatus of the state is hijacked and used to target whatever or whoever the common enemy happens to be.

The economic and social implications are likely to herald a period of greater self-sufficiency and isolation along national and lingual lines. The emphasis will be on job creation through major infrastructure projects and a return to domestically-driven industries. The inflationary implications of a de-globalised world are substantial from the physical aspect of scarcity and delivery plus the financial side from money-printing to fund such projects. This is where the Chinese and Russians have been so smart in dealing with resource-rich countries over the last decade in return for funding infrastructure development. The western model has for many years centred on military dominance or a debt-dumping exercise, forcing countries to export their raw materials to pay usurious interest bills. It doesn’t take a genius to work out whom developing countries would prefer to supply in future.

It will be fascinating to see what imagery will be paraded by future dictators. The word for fascism stems from a symbol of Roman power; a bundle of rods wrapped around a magistrate’s axe designed for punishment. The illiterate Ghengis Khan was likewise famous for demonstrating that one arrow could be snapped whereas a combination of several was unbreakable. The message in both cases is clear; unity is strength. In an era of government spin and media euphemism, we should be truly terrified at the prospect of despotic rule. While there is little any one of us can do in an age where demonstration has been sanitised by aggressive policing, we can at least take out some personal insurance. Not in the form of a policy from your friendly broker but by way of precious metals, offering a hedge against inflation, currency crises and catastrophe that is portable and globally acceptable.

Toby Birch

Guernsey Gold Limited

toby@guernsey-gold.com

07781 136 534

Sam Durant, Aim Takeover of Bia HQ

DESTE Foundation Project Space, Slaughterhouse, Hydra
22 June – 23 September 2012

The economic crisis faced by the world today is not only extensive and multifaceted, but its implications for our future are profound. “Animal Spirits,” the collection of drawings from the Dakis Joannou Drawing Collection presented in the Hydra Slaughterhouse, is intended to invoke comment and trigger reflection on our current global dilemma. The title of the exhibition references a concept coined by the British economist John Maynard Keynes in his 1936 book, The General Theory of Employment, Interest and Money. Keynes argues that animal spirits — emotional factors that cannot be modeled or quantified, and are thus often played down by economists — are in fact very important to the understanding of economic dynamics.

The drawings at the Slaughterhouse on Hydra are in dialogue with each other and also with the architecture that houses them, its atmosphere, and traces of all past narratives. Drawing on animal spirits, the exhibition reflects the leaps of faith, politics of trust, social bestiaries, blind confidence, spreading fear, and distorted meaning of positivism emerging in our world today all the while provoking acknowledgment of the looming international crisis. “Animal Spirits” includes works by: Huma Bhabha, Paul Chan, Folkert de Jong, Sam Durant, Adam Helms, Christian Holstad, Cameron Jamie, Kim Jones, Panos Koutrouboussis, Dominique McGill, Tom Sachs, William Scott, Dash Snow, and Kelley Walker.

Picture: Sam Durant, Aim Takeover of Bia HQ, Wash. DC, 2004

Graphite on paper

Courtesy: DESTE Foundation

The Colonial Williamsburg Hotels have hosted many heads-of-state, actors, politicians, and return guests who seek out the comfort and tranquility of Williamsburg, VA. The Williamsburg Lodge was opened in 1939 and features Colonial-style guest houses which contain colonial furniture and retro 1930’s bathrooms.Consistently rated as one of the Top Hotels & Resorts in the world, the collection of Colonial Williamsburg Hotels benefits from the close proximity to the Historic Area of Williamsburg. Noted as the largest living history museum in the world, guests can partake in the vast variety of historic programs on offer throughout the day. Visitors are served up a taste of 18th-century life through the plentiful historical reenactments that take place daily. For this reason, the hotels have become a steadfast favorite for leisure travellers from families to couples, with extensive program offerings that allow for a multitude of ways to interact with the stories and people of the past.

Convenience is a common theme around the Williamsburg Lodge. Whether you fancy a round of golf at the brilliant Golden Horseshoe Golf Club or a day at The Spa of Colonial Williamsburg, you never have to walk very far to satisfy your urges. Dining options are also abound, but I suggest the comfortable Traditions, which infuses international flavor palettes with southern favorites. Whether you are looking for an elegant prix-fixe menu with wine pairings for every course or a casual meal, Traditions has something for everyone.

 The Golf Club features 45 holes of spectacular golf, while the Spa boasts 20,000 square-feet of pure relaxation, with a fitness center, indoor and outdoor pools, locker room facilities, and individual and couple treatment rooms. Five signature treatments, a full-service salon, complete spa menu and spa cuisine offerings make The Spa a top-notch escape.

Once you step back in time at the Williamsburg Lodge, you will surely long to return for its unique blend of history, convenience, and comfort.

Williamsburg Lodge in Williamsburg, Virginia

www.colonialwilliamsburg.com | cwres@cwf.org | 800.447.8679

The description prompted us to take a quick look at the history books and check semantics.

The definition of a ‘sovereign monarch’ is:  ‘One who reigns over a state or territory, usually for life and by hereditary right’.

While no one would question the pedigree of the guests, even the most fervent monarchist might struggle to justify the description of ‘sovereign’ attached to some of the guests.

Let’s look at the facts:

HM the King of the Hellenes

The King of the Hellenes ruled Greece for 9 years before fleeing the country’s military junta along with his family in 1964.  Greece today is a republic and the Greek Republican Constitution states that no titles of nobility are recognized by the Greek state for Greek citizens.

HM the King of Romania

The King of Romania reigned briefly between 1927 and 1930 and again between 1940 and 1947 but abdicated in 1947. Romania has been a republic ever since.

HM the King of Bulgarians

The King of the Bulgarians’ hereditary right extends only to 1887 when Ferdinand Saxe-Coburg-Gotha-Koháry was elected Knyaz of autonomous Bulgaria by the Grand National Assembly of the newly liberated nation (hitherto part of the Ottoman Empire). Heredity is thus ambiguous.  Simeon was briefly king between the ages of 6 and 9 and later in life returned as a Prime Minister of the Republic of Bulgaria for a term of 7 years. Bulgaria has been a republic since 1944.

Crown Prince Alexander of Yugoslavia is a hereditary prince but born in the UK. Yugoslavia no longer exists – all of its former parts are now republics, as indeed was Yugoslavia itself.

The heredity is, nevertheless, unquestionable – the Karađorđević family is authentically Serbian.

Whether you are a regular person, fortunate enough to have a good job, or a major philanthropist pondering how to make a difference in the lives of many, try to spare a private thought for those whose existence has been blighted – nay, threatened – by the maelstrom the collective economy of the West has been plunged into.

Try and remember that we are all capable of at least one truly selfless act in a lifetime and that such an act can redeem us in our own eyes, in the eyes of all those who share our lives and, if you have faith, in the eyes of God too.

Forget about the political sniping, the passing of the proverbial buck, the blame game which may be good for making quick “capital” of one’s economic or political opponents… Focus instead on how you personally can help alleviate the woes of large segments of people stricken by the most brutal recession in living memory.

Obvious, raw and absolute poverty is often taken care of by the state – at least in a capitalist democracy – often inadequately, but in a basic, institutionalized way.

It is the hidden poverty that we worry about – the poverty many bear as a shameful cross, trying to keep a brave face on their reduced circumstances and soldier on in the hope of a brighter future.

Spare a thought for the new poor – those who are educated but can’t find a job; those for whom rising inflation equals poor nutrition; those who can’t afford new clothes or shoes for their children and have defaulted to the charity shops in droves; those who have to make a daily choice between using public transport and walking; those who get hopelessly indebted to implacable, profit-making utility companies, just because they choose to keep their homes warm in the winter; those who default to soup kitchens at the end of each month just so they can pay the rent….

The old adage of ‘Give a man a fish, and you feed him for a day. Teach a man to fish, and you feed him for life’ still holds true to some extent but today, we also need to sell ‘the fish’, so that we can do a little better than subsisting.

The opportunities to help others without humiliating them with a handout are countless.

Investing in another person’s work, talent, skills, acquired intelligence, may pay dividends you’ve never dreamed of. Or it may just help them preserve their dignity and hope – as well as put bread on their table.

Compassion, of course, has its own less tangible dividends – it is what makes us human.

For goodness’ sake, be compassionate!

BBPublications supports LCF (the Linveco Cultural Foundation, UK registered charity number 1145683).

About LCF

In its small way, the Linveco Cultural Foundation is hoping to help creative people – in the areas of art & design, literature, film and photography – to market and sell their work.

We hold exhibitions and multi-disciplinary creative events to promote and help sell the work of our creative members.

If you are a creative individual finding it hard to sell your work, join our network. We will offer advice and practical help through workshops and seminars.

If you are interested in seeing the incredible emerging talent we encounter every day and sponsoring a young creative or buying their work – or if you are a corporate sponsor interested in the arts – join us as a supporting member or a patron.

TIANBING Installation Copyright Stephen White. Courtesy Stephen Friedman Gallery

The Stephen Friedman Gallery hosted a private view of its Li Tianbing exhibition, currently on show at 25-28 Old Burlington Street, London, W1S 3AN.

Li Tianbing is, of course, known to B Beyond readers, having been profiled with an interview and selected works as part of our Shanghai feature in 2011.

At the time, the artist had an exhibition at Pearl Lam’s Shanghai Gallery, followed by a dinner at the art patron’s home in honour of major collector Dakis Joannou.

The artist gave us a mini-tour, explaining, as he had done the year before in Shanghai, some of the allegorical elements in the works, such as the imaginary dog in “Don’t touch my dog” and the bullet holes in the eponymously titled, broken fairy tale work “Bullet Holes”.

"Don't Touch my Dog" Copyright the artist. Courtesy of the artist, Pearl Lam Gallery and Stephen Friedman Gallery

These are large, statement pieces with strong nostalgic elements that reprise the theme of social and political issues in contemporary China.

TIANBING "Recruitment" Copyright the artist. Courtesy of the artist, Pearl Lam Gallery and Stephen Friedman Gallery

The works would command a single wall in the home of the established Chinese contemporary art collector or make a statement in a new collection.

TIANBING "Return with Fruitful Results" Courtesy of the artist, Pearl Lam Gallery and Stephen Friedman Gallery

The private view was followed by a dinner at Stephen Friedman’s second gallery across the street, attended by the good and great of the art world this side of the Atlantic.

N.B. The Li Tianbing catalogue is beautifully produced and eminently collectible.

The Balcon at 8 Pall Mall, London, UK

B Beyond had a memorable lunch there with photographer extraordinaire, Mick Hutson, who staged a brief photoshoot of wine guru extraordinaire, Tom Harrow, sitting strategically at the Champagne bar.

In a city that boasts a vast number of outstanding restaurants, having a memorable meal is no mean feat.
To start with, there is the originality of the menu – the way it is arranged in categories of slow cooked dishes on one side and grilled/roasted ones on the other, rather than being traditionally split into meat and fish.

The deliberation over starters ended swiftly when we offered a degustation platter of various air dried meats, accompanied by home-made chutney and some unusual pickles.
Mick had The Balcon version of a cottage pie to follow and I, stuffed saddle of rabbit.
The cottage pie was rich and comforting, while my rabbit was cooked to perfection, with a delicious foie gras stuffing that has to be the most satisfying winter fare. For our main course, we’d switched from Champagne to red wine. The wine, a 2009 Syrah, had a lot of fruit to it as befits a relatively young vintage, and was good enough to persuade me to finish off with a cheese platter, while Mick rounded off with rice pudding.
Mick and I retired to the oh, so cosy bar behind the restaurant for coffee and more and more Champagne until late that evening.

It is an uncommonly inviting establishment, being part of a hotel (Sofitel, to be precise, and a jolly well done too as the group is not traditionally associated with grandeur), with the deep sofas, opulent but not stuffy interior design, beyond excellent service and above all, great atmosphere.
An affluent, well dressed art/business crowd frequents the place – you can tell many are regulars because they fit in well and give it that glow of an established meeting spot.

Top Tip: Reader, try the bread, even if you are on a protein only diet! I could see myself retiring to The Balcon for a bottle of red wine and a basketful of olive buns every time I visit the Christie’s auction rooms round the corner.

T Boone Pickens

The full text of our exclusive interview with T Boone Pickens appears in the Spring 2012 edition of B Beyond magazine, along with pictures taken at the Pickens’ Mesa Vista ranch.

BB. The Pickens Plan makes two overwhelming arguments – one is global and has to do with sustainable energy; the other is US-specific and makes the case for liberating the country from OPEC oil-dependency, among other things. Why then, in your opinion, has the Pickens Plan been facing resistance from legislators?

TB. I do in fact have a lot of support for it but it’s generally very hard to get something to the Senate floor and get it voted in. The plan is not complicated and we have an extensive paper on it. Now that the Natural Gas Act has been introduced, this will hopefully set the country in the right direction of making better use of its own energy resources. I do believe that if the Act doesn’t pass through Senate this year (2011), it will pass next year.

BB Have you been promoting the plan for a good long time now?

TB. I started it in July of ’08.

BB We think the plan ought to have been adopted sooner

TB. It should have – but things in Washington happen very slowly.

BB. As indeed everywhere else, yes. Are there any other practical barriers, never mind legislative barriers, to implementing the Pickens Plan, such as the expense of converting the grid or converting vehicles from using oil to natural gas consumption?

TB. The Natural Gas Act didn’t have anything to do with the grid – it referred to using natural gas for heavy duty trucks.

Below is a model for what you could save on transportation fuel.
70% of all the oil produced in the world every day goes for transportation fuel and if you want to reduce the imports of OPEC oil, you have to start with transportation. I have focused on that because natural gas is so cheap. Unfortunately, with natural gas prices so low, it has made wind energy uneconomical. But if you look at the cost of each one of the fuels on a megawatt hour, the most expensive is solar at $200 megawatt hour while biomass is $140, nuclear is $125, geothermal is $99, wind is $80, coal is $73 and natural gas is $62. Natural gas is therefore the most economical energy source, so long as you have a lot of it and the price remains constant. If and when natural gas prices go up to $6, then you can get serious about wind energy projects.
The Pickens Plan demonstrates that we can cut OPEC oil imports by half over 5 years. You don’t need a special government department to implement or administer it, which makes it an even more attractive proposition.

BB. But would the vehicles have to be converted from oil to natural gas consumption?

TB. What you do is, as you buy new vehicles you just replace them with the natural gas engine.

BB Would that be very costly?

TB The consumer will get a tax credit of around $20,000 to $30,000 and that tax credit will be covered by a user tax on the fuel. Once you get to that point, the price of a natural gas engine will go down and become very competitive with diesel. Let me give you an example with trash trucks in the United States. Half the trash trucks next year will be on natural gas – while incremental difference between diesel and natural gas trash trucks was about $50,000 five years ago, it’s now $10,000.

BB. You certainly know your figures.

TB. Well, I have been at it for so long. I have been in the business since I got out of school in 1951, so 60 years now.

BB The energy crisis is not just US specific – the entire world faces some kind of an energy crisis.

TB Energy is confusing to most people and in America in particular people do not understand the energy available to us. I am sitting here today looking at the screen: natural gas is selling for $3.59 while the Mid-East price is between $16 and $18, because it’s indexed to oil, and in London it’s $13. So here we are, we have the cheapest energy in the world in this country which is incredible. We have more natural gas than any other country in the world – more than Russia or Iran, but the missing link in America is leadership. The leadership does not understand energy and how we can move industry back in here and create more jobs. We can clearly show them that if they pass this bill you can create jobs for $10,000 a piece which is unheard of but, you know, they don’t pay attention to it. They hear what you say but they don’t listen.

BB. Why do you think that is, I mean is it just the present government or politicians in general?

TB Well, we couldn’t get the Bush government to do anything either. The chemical industry is against the energy plan because they want very cheap natural gas, which gives them huge profit margins. They are making more money than they have ever made in history and they have done it off of cheap natural gas. But you also have major oil companies that are against the energy plan. For instance 80% of Exxon’s revenues come from foreign oil. They import a lot of OPEC oil and refine it and sell it of course for gasoline and diesel in this country. So we are up against many vested interests which work hard for their shareholders – that’s the capitalistic system.
But I’m working hard for America. My goal is to get an energy plan for America. We are the only country in the world that has no energy plan yet we use 20 million barrels of oil a day. The world produces 90 million barrels of oil a day and the closest consumer to us is China – the Chinese use 10 million barrels a day. So they use half what we do, but they do have an energy plan: the Wall Street Journal said six months ago that the United States has not bought Boone Pickens’ energy plan but the Chinese have.