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?

The robust Pause resists a robust el Niño Still no global warming at all for 18 years 9 months

Key facts about global temperature

Ø The RSS satellite dataset shows no global warming at all for 225 months from March 1997 to November 2015 – more than half the 443-month RSS record.

Ø There has been no warming even though one-third of all anthropogenic forcings since 1750 have occurred since the Pause began in March 1997.

Ø The entire UAH dataset for the 444 months December 1978 to November 2015 shows global warming at an unalarming rate equivalent to just 1.14 Cº per century.

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Ø Since 1950, when a human influence on global temperature first became theoretically possible, the global warming trend has been equivalent to below 1.2 Cº per century.

Ø The global warming trend since 1900 is equivalent to 0.75 Cº per century. This is well within natural variability and may not have much to do with us.

Ø The fastest warming rate lasting 15 years or more since 1950 occurred over the 33 years from 1974 to 2006. It was equivalent to 2.0 Cº per century.

Ø Compare the warming on the Central England temperature dataset in the 40 years 1694-1733, well before the Industrial Revolution, equivalent to 4.33 C°/century.

Ø In 1990, the IPCC’s mid-range prediction of near-term warming was equivalent to 2.8 Cº per century, higher by two-thirds than its current prediction of 1.7 Cº/century.

Ø The warming trend since 1990, when the IPCC wrote its first report, is equivalent to 1 Cº per century. The IPCC had predicted close to thrice as much.

Ø To meet the IPCC’s central prediction of 1 C° warming from 1990-2025, in the next decade a warming of 0.75 C°, equivalent to 7.5 C°/century, would have to occur.

Ø Though the IPCC has cut its near-term warming prediction, it has not cut its high-end business as usual centennial warming prediction of 4.8 Cº warming to 2100.

Ø The IPCC’s predicted 4.8 Cº warming by 2100 is well over twice the greatest rate of warming lasting more than 15 years that has been measured since 1950.

Ø The IPCC’s 4.8 Cº-by-2100 prediction is four times the observed real-world warming trend since we might in theory have begun influencing it in 1950.

Ø The oceans, according to the 3600+ ARGO buoys, are warming at a rate of just 0.02 Cº per decade, equivalent to 0.23 Cº per century, or 1 C° in 430 years.

Ø Recent extreme-weather events cannot be blamed on global warming, because there has not been any global warming to speak of. It is as simple as that.

Watts Up With That?

By Christopher Monckton of Brenchley

The Christmas pantomime here in Paris is well int0 its two-week run. The Druids who had hoped that their gibbering incantations might begin to shorten the Pause during the United Necromancers’ pre-solstice prayer-group have been disappointed. Gaia has not heeded them. She continues to show no sign of the “fever” long promised by the Prophet Gore. The robust Pause continues to resist the gathering el Niño. It remains at last month’s record-setting 18 years 9 months (Fig. 1).

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Figure 1. The least-squares linear-regression trend on the RSS satellite monthly global mean surface temperature anomaly dataset continues to show no global warming for 18 years 9 months since February 1997, though one-third of all anthropogenic forcings have occurred during the period of the Pause.

The modelers ought to be surprised by the persistence of the Pause. NOAA, with rare honesty, said in its 2008 State of…

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Solar Fossil Fueled Fantasies

throwing moneyFollow the money! Obama’s EPA is putting the US economy at risk! How do you screw taxpayers and reward your cronies that got you elected? By handing over billions. Obama administration has a 5 point plan. Secretary of Interior Sally Jewell, an Obama appointee can tell you. She stated, “This (the Desert Sunlight project) is the beginnings of a renewable energy future.” Another future failure costing taxpayers billions.

Here’s the truth. The Desert Sunlight, a CA state project involves 1) $1.5 billion of federal government subsidized loans. It mandates purchases of overpriced power, to benefit three of the world’s largest corporations— GE, NextEra Energy and Sumitomo Corporation. 2) They rent Federal government land at bargain basement prices. 3) The Government provides loan guarantees and 4) offer Federal government tax credits of 30% to buy their solar panels. Still not enough for Desert Sunlight to succeed? 5) California requires utility companies 33 percent of their energy come from renewable sources

Watts Up With That?

Guest Post by Willis Eschenbach.

Sometimes when I’m reading about renewable technologies, I just break out laughing at the madness that the war on carbon has wrought. Consider the Ivanpah solar tower electric power plant. It covers five square miles in Southern California with mirrors which are all focusing the sun on a central tower. The concentrated sunlight boils water that is used to run a steam turbine to generate electricity.

ivanpah solar power plant

Sounds like at a minimum it would be ecologically neutral … but unfortunately, the Law of Unintended Consequences never sleeps, and the Ivanpah tower has turned out to be a death trap for birds, killing hundreds and hundreds every year:

“After several studies, the conclusion for why birds are drawn to the searing beams of the solar field goes like this: Insects are attracted to the bright light of the reflecting mirrors, much as moths are lured to a…

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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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Temperature Adjustments Transform Arctic Climate History

Climategate II. This is NASA scientists we are talking about altering data to push the climate change cause!

Summary: Altogether, out of the stations currently operational and with records since 1940, and located in Greenland, Iceland, northern Norway, Russia and Siberia (for the latter three, above 65N), there are 19 stations that have been adjusted this way to produce an artificial warming trend, and only 4 stations that have been un-adjusted. No stations at all have been adjusted the other way. Can these temperature adjustments possibly be justified? It seems barely credible, given that so many have been altered. The normal logic of adjustment is that one station is an outlier, and needs to be homogenized back to the “pack”. Clearly the pack in this case have been altered. In Iceland, for instance, all four stations have been substantially adjusted.

NOT A LOT OF PEOPLE KNOW THAT

By Paul Homewood

The Arctic Ice Melting

We are told that the biggest sign of “climate change” is the rapidly warming Arctic, even called the World’s thermometer, proof that global warming cannot have stopped.

Certainly, the evidence of this from GISS is persuasive.

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http://data.giss.nasa.gov/cgi-bin/gistemp/nmaps.cgi?sat=4&sst=3&type=anoms&mean_gen=1212&year1=2014&year2=2014&base1=1951&base2=1980&radius=1200&pol=pol

Yet it is well established that the Arctic warmed up rapidly during the 1930’s and 40’s, before temperatures plunged in the 1960’s and 70’s. James Hansen, himself, recognised this, as the graph below from his 1987 paper Global Trends of Measured Surface Air Temperature ,  showed.

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http://pubs.giss.nasa.gov/docs/1987/1987_Hansen_Lebedeff_1.pdf

So how much is what we have been seeing in recent years just part of that cycle? How much warmer is the Arctic now than it was 80 years ago?

Quite a lot, according to GISS.

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http://data.giss.nasa.gov/gistemp/tabledata_v3/ZonAnn.Ts+dSST.txt

But can we trust their figures? We saw previously how the temperature history for Paraguay, and a large slice of the surrounding region, had been altered…

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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

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