Tesla is a bonfire of the vanities

From David Stockman, a former congressman, budget director under the Reagan administration, and partner of private-equity firm Blackstone Group. Today, Stockman is an outspoken opponent of the current monetary policy. He argues that Tesla and its sky-high valuation are a product of a money-printing Federal Reserve.

 He wrote an essay for our friends at Casey Research. Excerpts from the essay below…

The Wall Street casino is now festooned with giant deadweight losses waiting to happen. But perhaps none is more egregious than Tesla – a crony capitalist con job that has long been insolvent and has survived only by dint of prodigious taxpayer subsidies and billions of free money from the Fed’s Wall Street casino…So raptured were the day traders and gamblers that in the short span of 33 months between early 2012 and September 2014, they ramped up Tesla’s market cap from $2.5 billion to a peak of $35 billion.

 Stockman notes Tesla’s inability to make a profit…

Since 2007, [Tesla] has booked cumulative sales of just $6.1 billion, and that ain’t much in autoland; it amounts to about one week of sales by Toyota and two weeks by Ford. Its cumulative bottom line has been a net loss of $1.4 billion, and the losses are not shrinking – having totaled nearly $300 million for 2014 alone.More significantly, during its entire seven years as a public filer, Tesla has failed to generate any net operating cash flow (OCF) at all and has, in fact, posted red ink of $500 million on the OCF line. During the same seven-year span ending in Q4 of 2014, its [capital expenditures] amounted to a cumulative $1.8 billion.

So go figure. Combining OCF and cap-ex, you get a balance sheet hemorrhage of nearly $2.4 billion. The real question, therefore, is not why Tesla was worth $35 billion, but why it wasn’t bankrupt long ago?

 Stockman says that Tesla only exists because it got a $500 million bailout from the U.S. government… and it’s taking advantage of low interest rates and the Fed’s money manipulation to raise more and more capital (like the startups Gurley discussed above).

 But can you blame investors for shifting their capital into these types of companies? When governments debase currencies, the people lose faith in their money. They spend recklessly. They gamble. How would you characterize Fidelity investing in Silicon Valley startups anything other than gambling?

Live the American Dream? #WakeUpAmerica

carlin

#WakeUpAmerica

Like many entrepreneurs, I have faced many challenges. They’re called opportunities. I’ve met most, failed many, but I’ve persevered. The American Dream is about opportunity. It’s not a given. You have to face your challenges, because you can live the American Dream.

Many Americans no longer believe in the American Dream. There is a hashtag, #WakeUpAmerica trending on Twitter. I hope it resonates with more Americans. To realize your dreams, you have to wake up to those dreams. You have to live them. You have to have hope, passion, trust in others, work smart, and never give up.

From Forbes, The American Dream? are quotes from many well-respected leaders of the free world. Pick a liberal, a conservative, a libertarian or an independent, and they will say what you want to hear. In large part, Americans are supposed to believe what they say.

Take Nancy Pelosi for instance. She says, “The American Dream is the hope for a better future with equal opportunity for all to participate in the prosperity and success of our great nation.” Sounds good! You would think her basic beliefs are aligned with most Americans. In reality, that’s not the case.

An Obama quote is absent from The American Dream Forbes article. I Googled “Barack Obama on the American Dream.” From a 2012 NPR interview he said, “I think the history of the United States, the reason we became an economic superpower is because, not always perfectly, not always consistently, but better than any other country on Earth, we were able to give opportunity to everybody,” he said. “That’s what the American dream was all about.”  Obama says, “Preserving that dream requires a balancing act between self-interest and community. Success is not an entitlement in his book. But neither is it a reward for individual effort alone.” Obama said it to get reelected but his words fell on the deaf ears of many small business owners, a.k.a., taxpayers.

My support for Obama died when he said:

There are a lot of wealthy, successful Americans who agree with me because they want to give something back. If you’ve been successful, you didn’t get there on your own. You didn’t get there on your own. I’m always struck by people who think, well, it must be because I was just so smart. There are a lot of smart people out there.  It must be because I worked harder than everybody else. Let me tell you something – there are a whole bunch of hardworking people out there. If you were successful, somebody along the line gave you some help. There was a great teacher somewhere in your life. Somebody helped to create this unbelievable American system that we have that allowed you to thrive. Somebody invested in roads and bridges. If you’ve got a business, you didn’t build that. Somebody else made that happen.

Bullshit! He’s talking about the celebrity elite, not the guy that is building a successful business from nothing. He’s right! They didn’t build America, small businesses built America!

In 2012, we again, elected a president who is so self-absorbed with issues like a bad Iran deal, Islamaphobiaclimate change, Obamacare, and gun control.As for gun control, I believe we are entering a new era of lone wolf terrorist attacks on innocent civilians. Americans will absolutely recoil from any future gun control legislation.

Many American’s disagree with the president on almost every major issue, like Russia’s new conquest, Syria.  This president has gone so far as to put those who have taken all the risks, at risk of losing everything we’ve built, like life, liberty, and the pursuit of happiness. American exceptionalism is driven by individual effort multiplied by millions of Americans and it won’t take a backseat to entitlement. So sorry Mr. President, you didn’t build that, and you can’t take that away, either. #WakeUpAmerica

Bill Gates Says The Cost Of Switching To Wind And Solar Would Be “Beyond Astronomical”

Bill Gates says renewables are rubbish.

Bill Gates says renewables are rubbish.

Finally! Someone with some serious creds behind him talks common sense solutions!

Retired software kingpin and richest man in the world Bill Gates says today’s renewable-energy technologies aren’t a viable solution for reducing CO2 levels, and governments should divert green subsidies into R&D aimed at better answers.

Here is Obama’s GREENTECH FAIL list WHICH HAS LAID WASTE ON TAXPAYER DOLLARS!!!

Real Science

Bill Gates points out that wide scale wind and solar energy are a farce, and that people who claim it isn’t have no idea what they are talking about.

Retired software kingpin and richest man in the world Bill Gates says today’s renewable-energy technologies aren’t a viable solution for reducing CO2 levels, and governments should divert green subsidies into R&D aimed at better answers.

Gates expressed his views in an interview given to the Financial Times yesterday, saying that the cost of using current renewables such as solar panels and windfarms to produce all or most power would be “beyond astronomical”. At present very little power comes from renewables: in the UK just 5.2 per cent, the majority of which is dubiously-green biofuel burning1 rather than renewable ‘leccy – and even so, energy bills have surged and will surge further as a result.

In Bill Gates’ view, the answer is for governments to divert the…

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Small Business Owners – Making Millions, of Jobs That Is…

Obama - Biden Entreprenever_edited-1President Obama, you coined the phrase “middle class economics” as one of your latest “camplaign” appeals.

I coined the phrase “Entreprenever” for you.

Mr. Obama, you have never been an entrepreneur.  You are successful beyond the imagination of most people’s dreams.  You are obviously a highly talented and intelligent person. You have a loving family.

You have a loyal and caring following… then here comes the but, at least not until, and unless, you are willing to walk in a small business owner’s shoes, you’re politics hurt small business owners.

I’m an entrepreneur.  I’m not a millionaire, but job growth is a constant in my business. There are a lot of small business entrepreneurs out there earning millions in taxable revenues for their small businesses, who aren’t millionaires.  They’re making jobs, not millions.  Why not millions of dollars? Too many regulations, too many taxes, too much big government getting in the way.

Small Business Owners make millions of jobs, not millions of dollars! That’s what I call “American Exceptionalism.”

Mr. President, if you truly want to help the middle class, help small businesses grow and hire more people.  They’re your middle class economy.  There are many up and coming millionaires that are making products, providing services and creating jobs.  They should be paying less taxes, NOT more, than they do today.

Small businesses want to invest their income in products, services and jobs, not squandered on meeting meaningless regulatory bureaucratic “make work.”  Call it unintended consequences, but I don’t think you really care, or you care more about bureaucratic jobs than you do about free enterprise jobs?  Free enterprise better defines “middle class economics” than big government any day!

Free enterprise defines middle class economics” better than big government any day!!

Small businesses that file their taxes as individuals need lower income tax rates, even at the top income brackets, so that we receive a fair return for the risk we take to grow our businesses.  In my case, growing a successful business from 1 to 40 FTEs required; cashing in all my savings, a second mortgage on the house, personal loans from friends and family, 12-14 hour days, no PTO or vacations for the first 10-12 years. The mortgage on my house was $100K when I bought the house.  Twenty-five years later after loans, it is still over $200K.  If I’m not successful, that will be my legacy to my children, not your children.

Before you insert your platitudes about every American giving their fair share, you’re too intelligent to believe our current entitlement society, including illegal immigrants choking our medical, educational and government resources, is fair to hard working legal US CITIZENS.

The failure rate for small businesses like my own is one success in five failures.  So where is your reward at the end of the tunnel?  Higher taxes.   You don’t care, but higher taxes on small business owners prevent further investment in their business,  reduces the chances of paying off outstanding loans and lost income due to lack of cash flow.

I didn’t have a 401K or savings account for over 10 years.  I don’t have a huge stock portfolio, a second home, fancy cars or take Alaskan cruises… well OK,  I did take an Alaskan cruise with my wife,  It was awesome!  Should I thank you Mr. President?  Higher taxes is how you, our President rewards hard work, ingenuity and innovation.  That’s why I coined the phrase for you, President Obama, Entreprenever.

Yes, I’ve seen the news stories about this small business and that small business, who obtained and SBA loan or some other government handout.  Good for them!  That’s great theater.  That’s great politics!  You’re the best!

I’m not going to get into the weeds on excessive regulation and the politics here.  There are plenty of people capable of doing so.  Of this I am certain.  You’ve never run a business, certainly not a small business, and certainly never had to put your life’s savings on the line for a small business.

Mr. Obama, you’re ticket’s already been punched.  You’ve already made millions.  You stand to make millions more.  Maybe you already have, so what’s my point?  My point is you can never say you are for the little guy, the small business owner, end of story.

For all the Rich and Famous liberals out there that make millions and billions, mind your own f$$$$n” business!! If you want to raise taxes on people, think about small business owners versus our government’s track record in making money.  You’re pretty good at it, why don’t you get it!!!

We’re $18 Trillion in debt.  You could let big government spend more money on the backs of hard-working small business people, as well as, their employees and their families.  You could push for lower taxes on small business owners or you could just put you money where your mouth is…

Send your contributions to:

Gifts to the United States
U.S. Department of the Treasury
Credit Accounting Branch
3700 East-West Highway, Room 622D
Hyattsville, MD 20782

Much obliged!

Sincerely,

The ideacapitalist

Small Business Owner

Liberals fly 1,700 private jets to Switzerland so they can PRETEND to care about global warming and income inequality

I guess pigs can fly?!

Dan from Squirrel Hill's Blog

Perhaps someday, these global warming conferences will be done using environmentally friendly Skype instead of the current policy of burning massive amounts of fossil fuel on 1,700 private jets.

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2014 US Climate Report (is a Big Fat Lie)

al-gore-global-warming-hoax1-455x390Obama: “The debate [over climate change] is settled.”

That statement should be the “lie of the year,” and yet no one challenges the lie for fear of ridicule.  We all want a safer, cleaner, more vibrant planet to live in but not at the expense of common sense and reason.

The debate is far from over.  Freedom of speech is precious.  Paid for by the blood of hundreds of thousands of brave fighting men and women and a country of people who believe in truly democratic society, freedom is priceless.  Unfortunately freedom of speech has been compromised and severely curtailed due to lack of media coverage and unfair public commentary from over-zealous celebrity sound bites.  Their man-made climate change agenda (claims) paid for by influence peddlers.

Real people look up to people they have invited into their hearts and into their living rooms. The media outlets represent a modern-day, overwhelmingly effective form of communication and persuasion.  For this reason, as a person of influence, the mainstream media and celebrities should hold themselves to a higher standard, both in temperament and by example.  As people of influence and public figures, they’re responsible for their words and their actions in public.  For that very reason, there should be a real debate over the science of global warming, not a simple consensus of like minded liberals, the mainstream media and the Obama Administration and EPA.  News Flash! Man-made climate change is not settled!   Read more below…

Real Science

Driving to work on Thursday, I heard NCDC announce that 2014 was hotter than normal in the US for the 18th consecutive year, and that it was an extreme climate year.

ScreenHunter_5904 Jan. 10 06.10

ScreenHunter_5905 Jan. 10 06.22

State of the Climate | National Climatic Data Center (NCDC)

This is nonsense. Before data tampering, the US was below normal, as were four of the last seven years.

ScreenHunter_5902 Jan. 10 06.06

In order to create their fake US temperature graph, they massively alter the data

ScreenHunter_5802 Jan. 05 11.57

Including completely fabricating 30% of the monthly data, which they say is missing.

ScreenHunter_5803 Jan. 05 12.00

The net result of their tampering is to create a warming trend which does not exist in the data – as seen in the animation below.

USHCNTampering2014

More than two thirds of the states were below normal temperature. West Virginia was 2C below normal.

ScreenHunter_5900 Jan. 10 06.00ScreenHunter_5899 Jan. 10 05.59

Last12mTDeptUS

Current Climate Summary Maps – Powered by ACIS – High Plains Regional Climate Center

The ratio of record lows to…

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Google billionaires request $539 million federal bailout after spending $1.6 billion of “stimulus” funding on failed solar power project

google ivanpahThis is all about Obama and his kickbacks to his campaign donors. Ivanpah is only the tip of the iceberg when it comes to the billions of taxpayer funded stimulus dollars spent on failed Greentech. You can blame CEOs of corporations for their greed but in the end they have to answer to their stockholders. I would expect no less from corporations, but a whole lot more from our POTUS.

ROMNEY to OBAMA in 2012 Presidential debate: “…you don’t just pick the winners and losers, you pick the losers…”

romney

Romney – click on Romney to hear video

Romney said i n the debate, “And in one year you provided $90 billion in breaks to the green energy world. Now, I like green energy as well, but that’s about 50 year’s worth of what oil and gas receives and you say Exxon Mobil, actually this $2.8 billion goes to small companies, to drilling operators and so forth. If we get the tax rate from 35% to 25%, why that $2.8 billion is on the table.  Of course it’s on the table. That’s probably not going to survive to get the rate down to 25% but don’t forget, you put $90 billion, like 50 years worth of breaks into solar and wind to solar and wind, to Solyndra and Fisker and Tesla and I had a friend who said you don’t just pick the winners and losers, you pick the losers. This is not the kind of policy you want to have to get America energy secure.

Dan from Squirrel Hill's Blog

Ivanpah is a solar power company owned by Google, BrightSource Energy, and NRG.

In April 2011, as part of Obama’s “stimulus,” Obama gave Ivanpah a $1.6 billion loan guarantee to build a solar power plant.

In November 2014, when the plant was up and running, Associated Press reported that it was producing only “about half of its expected annual output.” The California Energy Commission blamed this failure on “clouds, jet contrails, and weather.”

In November 2014, Ivanpah asked Obama for a $539 million bailout.

Google is owned by Larry Page and Sergey Brin. At the time they requested this $539 million bailout, Page was the 19th richest person in the world, with assets of $30.4 billion, and Brin was the 20th richest person in the world, with assets of $30 billion.

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