Category Archives: Energy

You Get What They Paid For, by Eric Peters

EV manufacturers can make all sorts of exaggerated claims about their cars, but the regulatory apparatus comes down hard on any mistakes made by the internal combustion carmakers. From Eric Peters at ericpetersautos.com:

The FDA says nothing – truthful – about the drugs it pushes on behalf of the pharmaceutical industry that controls the FDA through revolving door appointments to its high offices (among other methods) so why should it be surprising that the EPA says nothing about the dishonest way electric vehicle range/mileage is advertised?

Leave that to the South Koreans – who still apparently have a regulatory apparat that isn’t a wholly owned subsidiary of the industry it regulates.

The country’s Fair Trade Commission (KFTC) just laid a $2.2 million fine on Tesla for “exaggerating the driving range of its cars on a single charge, their fuel-cost effectiveness compared to gasoline vehicles as well as the performance of its Superchargers,” the latter a reference to the so-called “fast” chargers that always take much longer to partially charge an EV than a gas pump takes to fill up a non-EV.

These are, of course, facts.

What’s interesting – and corollary – is the willful avoidance of addressing them, in the U.S. By the U.S. regulatory apparat. The same apparat that went medieval on VW for claiming its diesel-powered cars were “clean” when they were only 99.7 percent “clean” rather than 99.8 percent “clean” and also went after Hyundai nearly as mercilessly when the company claimed some of its cars delivered 40 miles-per-gallon when in fact they returned closer to 37.

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A Mad Rush to Build More EV Factories, But Where are the Minerals? By Mike “Mish” Shedlock

Governments can subsidize and promote EVs all they want, but production is going to run into limited raw materials. From Mike “Mish” Shedlock at mishtalk.com:

Incentives and free money from the Inflation Reduction Act has triggered an investment boom to build more electric vehicles.

Where Clean Energy Metals are Produced

The auto industry has earmarked billions of dollars for EV projects resulting in the Biggest Auto-Factory Building Boom in Decades

The U.S. auto industry is entering one of its biggest factory-building booms in years, a surge of spending largely driven by the shift to electric vehicles and new federal subsidies aimed at boosting U.S. battery manufacturing.

The 11-month total adds to the $37 billion in new auto-factory spending committed in 2021, when a number of new projects were revealed in states such as Tennessee, Kentucky and Michigan. The annual figure is up from $9 billion in 2017 and a more than eightfold increase from two decades ago, the center found.

The race by auto makers to populate their lineups with electric vehicles is the biggest factor behind the factory-spending spree. The federal climate package passed in 2022 is likely to further accelerate U.S. investment, earmarking tens of billions of dollars to subsidize EV and battery factory projects, as well as facilities for processing battery materials such as lithium and graphite.

Some foreign-owned car companies are targeting the U.S. for expansions, an offset to weakness in other global markets. Meanwhile, freshly capitalized EV startups, including Rivian Automotive Inc., are building out their manufacturing capabilities.

Rivian, which began building vehicles in Illinois in 2021, has committed to a second factory in Georgia to open in 2026. Hyundai Motor Co. has revealed plans for a $5.5 billion factory complex in the state, as well.

The Inflation Reduction Act further hastened efforts to increase domestic output. It offers billions of dollars in manufacturer incentives for domestic battery production, and limits a federal tax credit for EV buyers to vehicles with batteries and their mineral components sourced in North America or from trade-friendly countries.

In the past year, General Motors Co. opened a new battery factory with LG Energy Solution in Ohio and is developing two more, in Tennessee and Michigan.

Panasonic Holdings Corp. said over the summer that it would build a $4 billion battery factory in De Soto, Kan. Ford, Toyota Motor Corp. and Jeep-owner Stellantis N.V. also have multibillion-dollar battery-factory projects in progress.

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No Trucks For You . . . , by Eric Peters

California is confronting truckers with a choice that may force them out of California or out of business. From Eric Peters at ericpetersautos.com:

One of the new things the New Year just ushered in is a ban – in California – of the use of any heavy truck (or bus) made before 2010 on public roads in California. This includes out-of-state trucks attempting to deliver – or pick up for delivery – goods in California, which will mean higher costs for the rest of the country as much of what comes into the rest of the country comes through California first, after having arrived via sea at California ports.

So, what has just happened – it went into effect yesterday, January 1 – is that California’s bureaucrats, whom no one in the rest of the country voted for or over whom the rest of the country has any electoral control over – have just-like-that assured we’ll all be paying more for what Californians voted for.

“When we passed the regulations in 2008, it was to reduce community exposure of toxic air contaminants, it is 100% to protect public health,” said Gerald Berumen, one of the California bureaucrats whose reach extends nationally. 

The assertion made by Berumen is of a piece with most assertions made by his fellow government bureaucrats – such as those that asserted “masks work” and that Big Pharma’s drugs are “safe and effective.”

How much this is going to cost all of us is not easy to quantify but some idea can be conjured via extrapolating what it will cost truckers and trucking companies to throw away hundreds of thousands of dollars each of perfectly sound machinery and “invest” in new – compliant-for-now machinery that will also be forced off the roads and onto the scrap pile by the next bureaucratic decree, the one that will disallow the sale or use of any rig that isn’t electric from operating on California’s roads.

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Why it isn’t mad to oppose the World Economic Forum, by Samuel Gregg

It isn’t mad to oppose an organization that wants to destroy what’s left of your freedom and ruin your life. From Samuel Gregg at spectator.co.uk:

Klaus Schwab (photo: Getty)

The World Economic Forum (WEF) and its long-serving founder and Executive Chairman, Professor Klaus Schwab, are the subjects of many insane conspiracy theories. This NGO, which again this January will bring together politicians, business leaders, journalists, academics, and assorted celebrities in Davos, has been accused, among other things, of being a secret cabal of paedophiles who used the Covid-19 pandemic to harvest children’s blood so as to hasten in a Satanic New World Order.

It isn’t mad, however, to regard the WEF as a dangerous force in global politics. The WEF is a dangerous force in global politics. To adapt Joseph Heller, just because you are paranoid, doesn’t mean the WEF isn’t after you. A shared distrust of the WEF brings together anti-capitalists on the left and culture-warriors on the right. But that distrust is based on a misunderstanding of what the WEF is these days really all about.

For many WEF critics, the vileness of the organisation can be encapsulated in one word: ‘neoliberalism.’ It’s a term that conjures up images of plutocrats and untrammelled markets ravaging the planet and exploiting blue-collar folk in the name of profit. Funnily enough, Chairman Schwab agrees with that assessment of the world’s ills. Once upon a time, the WEF prioritised the necessity and benefits of economic globalisation. That has not been the case for many years, however. In October 2020, Schwab stated that:

[S]hibboleths of our global economic system will need to be re-evaluated with an open mind. Chief among these is the neoliberal ideology. Free-market fundamentalism has eroded worker rights and economic security, triggered a deregulatory race to the bottom and ruinous tax competition.

Precisely how and where ‘free-market fundamentalism’ has run amuck remains a mystery. After all, we live in a world in which most governments in developed nations routinely control 40 per cent or more of their nation’s GDP.

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How the new Cold War solved global warming, by Nick Hubble

The world will just have to get warmer until Putin is defeated. From Nick Hubble at fortuneandfreedom.com:

We continue our 2022 highlights coverage of Fortune & Freedom with a truly heart-warming story from 7 November of how Vladimir Putin solved the problem of climate change…

***

 Is Russia really worse than climate change?

Good news, everyone. Vladimir Putin has single-handedly solved the problem of climate change. How? By invading Ukraine. To understand, let me take you back in time, to when a white policeman ended the pandemic…

Do you remember any significant event taking place in 2020? Let me help you. It was the year when the issue of racism in the United States became so important that it triggered a global protest movement. A white policeman killed a black man during an arrest, sparking international chaos and a global movement.

Well, believe it or not, that was also the year a pandemic began. But you wouldn’t know it from reading the news or health advice at the time of the George Floyd arrest. The pandemic was simply suspended to make way for the issue of racism. Black Lives Matter suddenly mattered more than saving the NHS.

Public health officials who had demanded we remain in our homes suddenly advocated gathering in large groups. Medical experts who told us to limit our breathing recommended screaming at one other. Advocating for social distancing was replaced with excuses for anti-social behaviour.

Well, it’s the same with Russia and climate change today. Our attempt to punish Russia’s economy for the invasion of Ukraine has taken precedence over saving the planet. The shift is equally swift and absolute.

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Doug Casey’s #1 Speculation for 2023

Doug Casey likes gold and uranium. From Casey at internationalman.com:

Doug Casey #1 Speculation

International Man: Will 2023 be the year of central bank digital currencies (CBDCs)? Or will this terrible idea be consigned to the dustbin of history?

Doug Casey: CBDCs are a disastrous idea. But that’s never stopped “the elite” in the past. First, they did zero interest rates and negative interest rates, which I thought was metaphysically impossible. But they did it. Then they went to massive “quantitative easing,” a dishonest euphemism for money printing.

The next thing is going to be Central Bank Digital Currencies (CBDCs), which will give them unprecedented control over the finances of the average person.

On the one hand, it should be cause for a revolution because it will actually turn people into serfs. But on the other hand, the average American has almost no understanding of economics. He has little grip on what’s going on and believes propaganda.

We’re going to get CBDCs in 2023, and this is one of the scariest things on the horizon.

International Man: Will 2023 be the year uranium really takes off?

Doug Casey: Let’s recall the last uranium boom, which we were fortunate enough to catch back in 2001 to 2007. Uranium ran from $10 a pound up to $140 a pound. And that was in the days when the Russians and the Americans still had large nuclear weapon stockpiles, from which they recaptured lots of U-235 for use in reactors. That’s gone.

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Will 2023 Be “Just an Average Recession in an Average Year” or Will It Be Transformational? By Charles Hugh Smith

SLL has a hunch 2023 will be transformational. From Charles Hugh Smith at oftwominds.com:

It shouldn’t surprise us if 2023 turns out to be atypical and disruptively transformational in ways few believe possible.

It seems expectations about 2023 cleave neatly into two camps: the dominant mainstream view is that 2023 will be economically difficult due to a mild recession, but this will be nothing more than a run-of-the-mill recession.

Inflation will likely moderate but remain higher than recent averages. Everything else–politics, social issues, entertainment, fashion, social media, etc.–will continue on whatever path it is currently on.

In other words, 2023 will be much like any other year.

The implicit assumption in the mainstream view is that historical cycles are figments of fevered imaginations. The flow of human history is entirely contingent and follows no pattern or cycle.

The much smaller “outlier” camp sees the potential for a disruptive transformational year.

Those of us who conclude cycles are based on the ebb-and-flow dynamics of credit, energy and human nature and are therefore not just real but consequential despite their predictive imprecision see 2023 as a potential pivot in cycles which entered a new phase in the 2020-2021 time frame.

This cyclical shift isn’t a result of Covid or the response to Covid. It’s the result of diminishing returns and the exhaustion of the dynamics which powered the previous era: hyper-financialization, hyper-globalization and low-cost, abundant energy.

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President Snow Will Drive an EV, by Eric Peters

The goal is to eliminate personal automotive transportation for everyone but the elite. From Eric Peters at ericpetersautos.com:

It’s not so much that the future is “electric.” It is that in the future they have planned for us, only the affluent will drive electric cars.

Everyone else will not be able to drive.

If that sounds extravagant, consider two facts. The first is that – aside from a very few, very small models like the Chevy Bolt and Nissan Leaf – the entry price point of the typical electric car is about $50,000. Most “transact” – that is, sell – for considerably more than that. Leaving aside the fact that we are talking about electric cars, that price point defines luxury cars – which are cars that by definition are bought by affluent people only.

And there are only so many of those.

The price of these electric luxury vehicles is going up, too. Not down – as the electric car propagandists have insisted they would, when they were selling the gullible public on EVs.

They are not going up because of the devaluation of the buying power of money – what is glibly styled “inflation” by those who either do not understand or wish to hide the fact that the buying power of money is being devalued; i.e., that it is the result of deliberate policy.

It is because of natural market forces.

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2022: The Year that Imploded … Bigly, by David Haggith

2022 was not kind to most asset prices. From David Haggith at thegreatrecession.info:

2022: The Year that Imploded … Bigly

Falling housing prices may cause Housing Market Crash 2.0.

This was the year where it seemed everything imploded. For the economy, it started with two quarters of receding GDP that everyone refused to call a recession. Whether you stand with the crowd on that or not, it was certainly not a good change and was certainly a collapse of the economy toward a smaller state based on production. But that was just where it all began. What follows is an amazing overview of a world in a state of collapse.

The stock market’s north-pole polar-bear plunge

Right from the start, 2022 became the year the stock market imploded with all major indices down and down … and down some more all year long. So far, this is the year Santa’s sleigh didn’t soar into some kind of end-of year rally. Instead, the Grinch stole the sleigh and just went down the hills and through the snow like sleds are supposed to go.

The Grinchy Dow started bounding down the mountainside at the top of year in an endless series of leaps off bluffs and is currently down 11% for the year. At its lowest point of the year, it fell 22% into a full bear market that it remains mired in.

The S&P also started going downhill at the top of the year; but it ran down in front of the Grinch like his dog, trying to keep the Dow from hitting him in the butt, to where the S&P is currently down 20% from its all-time high. At its lowest point it fell 25% from its peak.

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The Hope of Fusion vs the Pomp of Politicians and Climate Activists

Science, or blowhard politicians? The choice is pretty simply when people are allowed to make it. From Mish Shedlock at mishtalk.com:

If there is a climate problem, science will find the answer, not politicians or activists.
192 laser beams

There was an interesting trio of articles in the Wall Street Journal this week with seemingly conflicting messages.

Hold the Nuclear Fusion Hype

Headline Number One: Hold the Nuclear Fusion Hype

The breakthrough is exciting but its practical use as an energy source may be decades away.

What the experiment proved is that scientists can recreate the physical reactions in stars. But scaling the technology and making it commercially viable by most scientists’ accounts will likely take another few decades.

How Fusion Works and Why It’s a Breakthrough

Headline Number Two: How Fusion Works and Why It’s a Breakthrough

The Energy Department has announced the first gain in energy from fusion in a laboratory—the first time fusion reactions produced more energy than it took to induce them. Last week 192 laser beams at the Lawrence Livermore Laboratory’s National Ignition Facility heated and compressed a capsule of hydrogen to previously unattainable temperatures and pressures, igniting fusion reactions that produced 50% more energy than the laser beams had delivered.

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