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?

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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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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A former White House science advisor speaks out about “settled science”

stossel beach.1.583 (1) houseCelebrities are afraid their Taj Ma-hall homes will slide int the ocean.  Hollywood personalities and the mainstream media monopolized every avenue of opportunity to get Barrack Obama elected and their global warming agenda imposed on the public through every media outlet available.

“Rigidly promulgating the idea that climate science is ‘settled’ (or is a ‘hoax’) demeans and chills the scientific enterprise, retarding its progress in these important matters. Uncertainty is a prime mover and motivator of science and must be faced head-on. It should not be confined to hushed sidebar conversations at academic conferences.”  Computational physicist Steven E. Koonin*, Director of the Center for Urban Science and Progress at New York University.  *Formerly undersecretary for science in the Energy Department during President Barack Obama’s first term, professor of theoretical physics and provost at Caltech, and chief scientist of BP.

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…

 

Watts Up With That?

Feeling unsettled? Try new Climate Science™, now with extra certainty!
HistoryOfSettledScience-big1[1]

Climate Science Is Not Settled

We are very far from the knowledge needed to make good climate policy, writes leading scientist Steven E. Koonin

The idea that “Climate science is settled” runs through today’s popular and policy discussions. Unfortunately, that claim is misguided. It has not only distorted our public and policy debates on issues related to energy, greenhouse-gas emissions and the environment. But it also has inhibited the scientific and policy discussions that we need to have about our climate future.

My training as a computational physicist—together with a 40-year career of scientific research, advising and management in academia, government and the private sector—has afforded me an extended, up-close perspective on climate science. Detailed technical discussions during the past year with leading climate scientists have given me an even better sense of what we know, and don’t know, about…

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

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The Federal Government Just Announced the Biggest Clean Energy Boost Since the Stimulus

When Obama blames Republicans for infrastructure failure, think again!

Families will have less disposable income as they spend more to light and heat their homes, with seniors, families on fixed incomes and lower-income Americans being hit the hardest.

Read more: EPA rule puts U.S. economy, electric grid at risk – Politico

LATEST: 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

Here is Obama’s GREENTECH FAIL list WHICH HAS LAID WASTE TO BILLIONS OF TAXPAYER DOLLARS!!!

The list has grown so large I have decided to make this an ongoing project. Fox News list October 2012.

39. World’s largest solar plant applying for federal grant to pay off federal loan.  Owned by Google and NRG, shame on them for asking for a taxpayer handout.  “This is an attempt by very large cash generating companies that have billions on their balance sheet to get a federal bailout, i.e. a bailout from us – the taxpayer for their pet project,” said Reason Foundation VP of Research Julian Morris. “It’s actually rather obscene.”

38. NEW –Bankrupt Fuel Cell Maker Lilliputian – MIT spinout and consumer fuel cell startup Lilliputian Systems recently declared bankruptcy after more than twelve years of development and hype, $150 million in VC investment and dozens of press releases attesting to the strength of its portable charging technology. Lilliputian had won several government R&D grants.

37. NEW – With the news of another tragic FAIL, Abengoa which received a $1.4 billion loan guarantee in 2010 to build one of the world’s largest parabolic trough solar plants near Phoenix, Ariz.  The following year it received another $1.2 billion in loan guarantees to build another solar plant in California’s Mojave Desert.  The following year it received another $1.2 billion in loan guarantees to build another solar plant in California’s Mojave Desert.

36. NEW – Smith Electric Vehicles – Despite $32 million in federal stimulus funds and status as one of Obama’s favorite “green” companies, the firm has halted production, having built just 439 of the promised 510 vehicles.  Bright Automotive (electric delivery vans)Carbon Motors (clean diesel-powered police cars)Aptera Motors(three-wheeled electric cars)Coda Automotive (inexpensive electric sedans), all bankrupt or near bankruptcy, applied for Government funds but didn’t win the lottery.  Tesla Motors, on the other hand has met with growing success.

35. Ecotality, an electric car charger maker, who won a $99.8 million grant from the U.S. Department of Energy four years ago filed for bankruptcy. Green Energy Co. Folds after Obama gives it $99.8 Mil.

34.  GreenTech Automotive is owned by Capital Wealth Holdings, an investment company incorporated in the tax haven, the British Virgin Islands.  GreenTech president and Chinese businessman, Charles Wang, owns the investment company.  Wang is an expert on the EB-5 visa program and has coached other U.S. companies on how to effectively make use of it.  Virginia Governor, Terry McAuliffe is involved in electric car company.  The U.S. Securities and Exchange commission currently is investigating GreenTech’s use of the federal EB-5 visa-investor program, which raises funds from foreign nationals in exchange for U.S. green cards.

33. A $50-million loan previously award to Vehicle Production Group LLC (VPG)through the Advanced Technology Vehicles Manufacturing loan program (ATVMP) has gone unpaid. VPG, a maker of compressed natural gas-powered wheelchair-accessible vans, shut its doors in May after running out of cash.

32. SoloPower, the startup pitched as the most innovative player in Oregon solar manufacturing, will suspend its Portland operations.  State officials, too, were working to get in touch with the company, which has received a $10 million loan and a $20 million tax credit.  It also is in line for a $197 million federal loan, meant to help fund later stages of growth.

31. Rentech Incorporated For most of its 33-year history, Rentech Inc. tried to make money on green fuel development. But like its plans to sell synthetic diesel to major airlines in 2009, those efforts never really left the ground.  Rentech received $23 million from the DOE for a Colorado refinery turn wood into fuel.

30. SunTech Power, a China owned solar company struggling from a downturn in photovoltaic solar panels, benefited from a combined $84 million in Energy Department tax credits.

29. SolarWorld, a German company received more than $100 million in state and local tax incentives – only to see companies like SolarWorld in Hillsboro and SoloPower in Portland struggle in the wake of fierce competition, especially from Chinese companies. Source: Oregon bet big on this emerging technology

28. VESTAS, A Danish wind turbine company whose subsidiaries received over $50 million in U.S. stimulus dollars. Vestas also reported a net loss of 62 million euros, or $83 million, for the second quarter, compared with a loss of 8 million euros in last year’s comparable period. Revenue declined to 1.2 billion euros, compared with 1.6 billion euros a year earlier.

27. COMPACT POWER Plant that received $150M in taxpayer money to make Volt batteries furloughs workers.

26. CH2M HILL, is embroiled in atime card fraud scheme that took place between 1999 and 2008 when CH2M was servicing a DOE contract worth $2.2 billion, and at the beginning of 2013, it was discovered that CH2M HILL Plateau Remediation Company (CHPRC) “provided inaccurate cost data to support a multi-billion-dollar federal nuclear waste cleanup contract, “reported the Washington Free Beacon. Despite their history of legal and workplace safety violations, in 2009 an additional $1.3 billion was awarded to a different CH2M subsidiary to go toward the Hanford cleanup.

25. Bankrupt Amonix.

24. Bankrupt Babcock & Brown.

23. Bankrupt A123 Systems.

22. Bankrupt EASTERN ENERGY

21.Near Bankrupt 5N Plus The State of Wisconsin handed over $500 thousand to a Canadian company to open a solar panel recycling plant near De Forest.

20. BANKRUPT Fisker Automotive–was awarded a $529 million loan under an Obama admin program designed to spur production of advanced tech.  Fisker drew about $193 million of the Energy Department loan to engineer its Karma luxury plug-in hybrid. AL GORE!  Now the Chinese benefit from our hard earned taxpayer dollars!!!

19. BRIGHTSOURCE — President John F. Kennedy’s nephew, Robert Kennedy, Jr., netted a $1.4 billion bailout for his company.

18. Bankrupt Solar Trust for America.

17. Bankrupt Energy Conversion Devices.

16. Bankrupt Raser Technologies.

15. Bankrupt First Solar – of course GE’s in the mix.

14. Bankrupt NEVADA N.G.P.

13. ENN Mojave Energy LLC – linked to Harry Reid,

12. Bankrupt Ener1—

11. Tonopah Solar – linked to Harry Reid, Nancy Pelosi and Crescent Dunes

These 10 failed projects ALONE, cost $3.4 billion in taxpayer funds AND COUNTING!

10. Bankrupt SolarReserve,

9. Bankrupt Beacon Power,

8. Bankrupt Geo Thermal,

7. Bankrupt Sempra Energy

6. Bankrupt Evergreen Solar, Inc.

5. Bankrupt SpectraWatt

4. Bankrupt the Crescent Dunes Solar Energy Project.

3. Bankrupt Abound Solar of Loveland, Co. $400 million from Obama

2. Bankrupt SunPower: Twice As Bad As Solyndra.

1. Bankrupt SOLYNDRA

NOTE:  I agree much needs to be done (more practical examples abound, like passive shading) regarding pollution and the reduction of CO2 emissions but this post  is about pure politics, corruption and an abusive waste of taxpayer money.  I am not a climate change denier so don’t report me to the good professor.  I still do believe the jury is out on the all the reasons climate change advocates attribute to climate change.  Rather than panic and spend billions MORE of taxpayer dollars on failed Greentech technology, I believe in a pragmatic, limited government approach, such as that espoused by Bjørn Lomborg, author of The Skeptical Environmentalist and Cool It, to lower CO2 emissions.  I believe existing and new technology such as driverless cars will do much more to reduce emissions than government backed wind and solar.  Let the private sector do it’s job, which is to innovate, create jobs and grow the economy.  Let government get out of the way.

Alpha Natural just announced today layoffs in WV that will eliminate 1000 jobs

obamas-failed-energy-policiesAlpha Natural just announced today layoffs in West Virginia that will eliminate 1,000 jobs.  That’s right 1000 jobs!!!  These are mining jobs with average pay of $65,000 per year.  If we could create 1000 jobs in WV over the next year (which we can’t) they would pay somewhere around $35,000 per year.

For every 1 job lost we need 2 created to keep the tax base and contribution to the economy the same. Losing high paying jobs and replacing them with low paying jobs is the hallmark of the Obama administration. That’s why the economy remains in a rut and can’t gain footing and extract itself.   A friend traveled to 12 states meeting with clients and new clients and many have new jobs and the story is the same in all 12 states.

“Yes I’ve found a new job but I make less money than I did in 2008.”

He met with a union president who was awarded social security disability and he is retiring and no longer looking for employment.   Between 2004-2008 he made over $100,000 a year installing clean coal technology in power plants. Since Obama was elected he’s been unemployed the majority of the time, but this is his best year of earnings, since 2008 which was under $60,000.  A 40% pay cut from the Bush years.

According to CNBC, “Jobs growth in the U.S. since the 2008 recession has been undermined by lower wages, with workers earning an average 23 percent less than earnings from jobs which were lost, a report by an organization representing U.S. cities said on Monday.”  The average pay of lost jobs in 2008 was $61,337 and the average salary of replacement jobs in 2014 is $47,181 nationwide

When you calculate the increased spending of 6 years of inflation and 23% less salary, the lagging economy makes sense. That’s why the Obama administration keeps vilifying the wage gap and insists we’re all unpatriotic if we don’t support raising the minimum wage to $15 per hour.

This President doesn’t care about working Americans, he cares about non-working Americans. If you’re on welfare you get a free cell phone, if you work, you’re treated with contempt.

Related articles:

They Shuttered Two More Mines in Wayne County, WV. Congratulations Mr. President.

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

Obama’s EPA and Their War on Coal – If You Can’t Compete You Cheat

Obama’s War on Coal – You Need to Create Two Jobs for Every One Job Obama Eliminates

Electricity Costs Are Estimated to Increase by an Average of $528.67 Yearly.

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Proposed EPA Regulations Will Increase Electricity Costs on Small Businesses

NFIB Letter to Congress

National Federation of Independent Business
1201 F Street NW * Suite 200
Washington, DC 20004
202-554-9000
Fax 202-554-0496
http://www.NFIB.com
 

The Honorable Fred Upton, Chairman
Committee on Energy and Commerce

United States House of Representatives
Washington, DC 20515

January 28, 2014

The Honorable Henry Waxman Ranking Member
Committee on Energy and Commerce
United States Senate
Washington, DC 20515
 

Dear Chairman Upton and Ranking Member Waxman:

The National Federation of Independent Business (NFIB), the nation’s leading small business advocacy organization, urges the Committee’s support for H.R. 3826, the Electricity Security and Affordability Act, introduced by Rep. Ed Whitfield, during the upcoming markup.

Electricity costs are a prominent concern for small business owners. According to the NFIB Research Foundation’s 2012 Small Business Problems and Priorities, the cost of electricity was ranked number 12, ahead of other major problems like cash flow and poor earnings. NFIB believes the recent proposed rules by the U.S. Environmental Protection Agency (EPA) regarding greenhouse gases emissions from new power plants could cause electricity costs to rise substantially. The uncertainty regarding how the rules will affect the cost and availability of electricity stand to be an ongoing deterrent for small businesses to plan for expansion and job growth.

The proposed rules take a heavy-handed approach to regulating emissions of greenhouse gases. The Electricity Security and Affordability Act is a far more reasonable means of moving forward.

First, the legislation would require EPA to issue separate standards for natural gas and coal-fired power plants. Second, H.R. 3826 would require EPA to subcategorize the coal standard to account for the different properties of lignite coal. Third, the bill addresses uncertainty from the forthcoming rule on existing power plants by requiring Congress to set an effective date before the rule can go into effect.

NFIB strongly supports H.R. 3826 and urges the members of the Committee on Energy and Commerce to vote for its passage in the upcoming markup.

Sincerely,

Dan Danner
President and CEO NFIB

CC: Members of the Committee on Energy and Commerce

 
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