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Got that? If you are looking for a sure bet in a new growth market, then sell solar and buy surveillance: forget wind, buy weapons.

This observation – coming from an executive who is trusted by such clients as Goldman Sachs and Marsh & McLennan – deserves particular attention in the run-up to the United Nations climate change conference, which takes place in Bali next week. There, world environment ministers are supposed to come up with the global pact that will replace the Kyoto agreement.

The Bush administration, still roadblocking firm caps on emissions, wants to let the market solve the crisis. “We’re on the threshold of dramatic technological breakthroughs,” the American president assured the world last January, adding: “We’ll leave it to the market to decide the mix of fuels that most effectively and efficiently meet this goal.”

The idea that capitalism can save us from climate catastrophe has powerful appeal. It gives politicians an excuse to subsidise corporations rather than to regulate them; and it neatly avoids a discussion about how the core market logic of endless growth landed us here in the first place.

In essence, the Treasury’s Freedom of Information officials said that the Working Group – affectionately nicknamed the Plunge Protection Team – doesn’t keep records of its meetings.

How interesting and convenient!

Included in the 177 pages that the Treasury said responded to our request on the actions of The President’s Working Group were 53 pages on which something was redacted – blacked out so that the discussion was unreadable.

Many of those 53 pages contained no words at all – just a big black blob.

Starting in June of 2006 The Post asked for an accounting of the actions of The President’s Working Group, which was formed under President Reagan. The Group seems to have the ill-defined task of keeping an eye on the financial markets. We also asked for e-mails related to our request through the Freedom of Information Act (FOIA).

The Working Group operates out of the Treasury Department and includes the heads of the various exchanges in the US, as well as top-ranking government officials.

Hank Paulson, the Treasury Secretary, and Ben Bernanke, the head of the Federal Reserve, are the two most prominent members.

Back in August, Paulson said in a television interview that “we’ve reenergized The President’s Working Group on Financial Markets.”

The Wall Street Journal last year said that Paulson, upon becoming Treasury Secretary, was insisting that the Working Group meet every six weeks.

Whatever the schedule of meetings, one of those meetings occurred on Aug. 17 – the day the Federal Reserve surprised the financial markets with a cut in its discount rate.

According to records that someone else got from Bernanke’s office through a FOIA request, there was an 11 a.m. conference call on Aug. 17 of the “PWG” – the President’s Working Group.

Fed Governor Kevin Warsh and Patrick Parkinson, a Treasury staffer, took part in that call, according to Bernanke’s phone log.

The day before – Aug. 16 – Bernanke and Paulson had lunch, but it isn’t clear whether this was just two guys having a meal or if it, too, was related to The President’s Working Group.

Hours after that lunch, word got around on Wall Street that the Fed was about to make a move and the stock market staged a tremendous rally.

The next day those rumors of Fed action proved accurate.

So what’s the Working Group up to?

I suspect the group is ready to come to the rescue of the financial markets – even equities – in the case of a meltdown.

And as I’ve said in the past, that would be a completely acceptable task as long as it remains a limited power that is used infrequently.

But who decides when a rescue is needed?

An accord could reassure investors and strapped homeowners, both of whom are anxious as interest rates on more than two million adjustable mortgages are scheduled to jump over the next two years. It could also give a boost to the Bush administration, which is facing criticism for inaction amid the recent housing turmoil.

The plan is being negotiated between regulators including the Treasury Department and a coalition of mortgage-related companies including Citigroup Inc., Wells Fargo & Co., Washington Mutual Inc. and Countrywide Financial Corp. People familiar with the talks say the individual members have agreed to follow any agreement reached by the coalition, which is called the Hope Now Alliance.

Details of the plan, which could be announced as early as next week, are still being worked out. In general, the government and the coalition have largely agreed to extend the lower introductory rate on home loans for certain borrowers who will have trouble making payments once their mortgages increase.

Many subprime loans carry a low “teaser” interest rate for the first two or three years, then reset to a higher rate for the remainder of the term, which is typically 30 years in total. In a typical case, the rate would rise to around 9.5% to 11% from 7% or 8%. That would boost an average borrower’s payment by several hundred dollars a month.

Exactly which borrowers will qualify for the freeze and how long the freeze would last are yet to be determined. Under one scenario, the freeze could run as long as seven years. The parties are developing standard criteria that would determine eligibility. The criteria should be finalized by the end of year.

Mortgage servicers — the companies that collect loan payments — are a key part of the coalition, because they are the companies that deal directly with borrowers. Often the servicer is different from the company that originally made the loan. Citigroup and Countrywide are among the nation’s biggest mortgage servicers. The mortgage servicers in the coalition represent 84% of the overall subprime market. The coalition also includes lenders, investors and mortgage counselors.

The Bush administration has been looking for ways to stem the fallout from the mortgage crisis. Treasury Secretary Henry Paulson and Housing and Urban Development Secretary Alphonso Jackson helped assemble the coalition so that government officials could have a single counterpart with which to discuss terms of a plan.

While the government can’t force the industry to modify loans, Mr. Paulson and other administration officials have been using moral suasion to push for workouts, telling the companies it is in their interest to avoid foreclosure since most parties can lose money when that happens. A similar plan to freeze interest rates temporarily was recently announced by California Gov. Arnold Schwarzenegger and four major loan servicers, including Countrywide.

In October, 224,451 foreclosure filings were reported nationwide, up 94 percent from October 2006 and up 2 percent from September, according to RealtyTrac.

In the month, 53,609 U.S. homeowners were forced out of homes repossessed by banks, up from 20,768 a year ago, the firm said. Through October, a total of 309,557 homes have been repossessed by banks leading to forced evictions.

“Some people are in over their heads, owing more than what they can sell their house for,” said RealtyTrac spokesman Daren Blomquist.

For the full year, RealtyTrac expects 2 million homes to have entered the foreclosure process – including bank repossessions, default notices and auction sale notices.

Foreclosures could hit homeowners even harder in the beginning of 2008, Blomquist said. Homeowners experiencing trouble in the fall may not see a foreclosure notice until the January or later, he said.

On top of that, adjustable-rate mortgages are scheduled to reset in greater numbers through 2008, sending homeowners’ monthly mortgage payments higher, possibly to unmanageable levels.

The company closed the four pipelines of the Lakehead system, capable of delivering 1.5 million barrels a day, and “at least one or two lines will be shut down for quite some time,” spokeswoman Denise Hamsher said today by telephone from Clearbrook, Minnesota, where Enbridge operates a terminal.

Oil surged more than $4 a barrel, the most in a month, after a leak and explosion occurred at the No. 3 pipeline, which was undergoing maintenance. Canada was the largest exporter of oil to the U.S. in August, delivering 1.9 million barrels a day that month, according to the latest statistics from the U.S. Department of Energy.

“This is a very important pipeline (system), which is why we see a knee-jerk reaction in crude oil prices to the news of the shutdown,” Lawrence Eagles, an analyst with the Paris-based International Energy Agency, said today. “There is a tendency for people to assume the worst, but we need to look at the extent of the damage and how long the shutdown will last.”

Crude oil for January delivery gained as much as $4.55, or 5 percent, to $95.17 a barrel in electronic trading on the New York Mercantile Exchange. That’s the biggest increase since Oct. 31. The contract, which rose for the first time this week, traded at $94.17 at 9:29 a.m. in London.

Visual Inspections

Enbridge is waiting for the fire to burn out before inspecting the Lakehead system, spokesman Larry Springer said by telephone from San Antonio today.

“We want to get in and visually inspect lines 1 and 2, but until the fire is down a little bit more we can’t do that,” Springer said. “If they are OK then we would be able to consider restarting those.”

Enbridge’s Hamsher said the company will know by tomorrow if some of the pipelines can be safely restarted. The blast occurred about 3 miles (4.8 kilometers) from the Clearbrook terminal, the Calgary-based company said in a statement distributed yesterday by Market Wire.

“The site is not accessible right now and we are unable to assess the damage,” Hamsher said. “We are working with the emergency services on putting out the fire, and our top priority is the safety of all our workers.”

Lakehead System

The Lakehead network carries oil from the Canadian border to Chicago and Detroit with an extension to Buffalo, New York, according to the Enbridge Web site.

Al Gore is to be the star turn at a dinner where guests have paid at least £1,000 a head, and some will have parted with £50,000 for their share of the Aberdeen Angus steak and pink champagne, under the high ornate ceilings of London’s Royal Courts of Justice. The combined wealth of the diners has been estimated at £100bn. But the most unusual aspect of the evening is not the price of the tickets but the nature of the floor show. In place of professional performers, the guests will be regaled by people who are not always thought of as entertainers, though some think they are all mad. They are inventive British boffins who care about climate change.

They are hoping that the showcase dinner will knock years off the time it can take for industry to see the mass marketing potential of a new discovery. And the one that will be shown to Mr Gore and fellow guests is highly marketable and could revolutionise the market in clean technology, according to the founder of the British Inventors’ Society, Kane Kramer.

Mr Kramer, who was 23 in 1979 when he conceptualised the technology that led to the creation of the first MP3 player, refused to give specific details of the new discovery, or to name the inventor, so as to maintain the element of surprise for Friday. But he indicated that it is a breakthrough in micro-technology, and that British scientists who have tested it are convinced that it will work.

“This is something … that’s the accumulation of almost a decade of work,” he said. “It’s a new science, a Super Material. It would be 80 per cent cheaper than any alternative means of production, and it will contribute in a major way to reducing climate change.

“I like it because it’s kind of lateral. It will make possible things that weren’t possible before. We have put it through severe ‘due diligence’, with quite a team of people, not just in the UK, and we’re completely 100 per cent sure that this is the way forward.”

There is an old saying that if you invent a better mousetrap the world will beat a path to your door, but he says the adage is true only for inventions that improve gadgets that are already known to work. Big corporations can be very coy about putting money into something genuinely new. “Business wants to jump on a bandwagon, not build the bandwagon,” he said. It is also widely suspected that a lot of energy saving ideas have been bought out by the energy companies precisely to keep them off the market.

The intelligence-sharing system to be managed by the NAO will rely heavily on private contractors including Boeing, BAE Systems, L-3 Communications and Science Applications International Corporation (SAIC). These companies already provide technology and personnel to U.S. agencies involved in foreign intelligence, and the NAO greatly expands their markets. Indeed, at an intelligence conference in San Antonio, Texas, last month, the titans of the industry were actively lobbying intelligence officials to buy products specifically designed for domestic surveillance.

Although the military has been using unmanned aircraft systems for years, this will be the first time they are used in law enforcement.

…

“The capability of the unit is phenomenal,” said Miami-Dade Detective Juan Villalba.

The unmanned aircraft will be used during SWAT team and tactical operations, especially when officers need video of a heavily armed suspect.

The Miami-Dade police department has not yet taken possession on its drone, but the Houston police department has and is already conducting tests.