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.


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).


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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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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Researchers Find Northeast Pacific Surface Warming (1900-2012) Caused By Changes in Atmospheric Circulation, NOT Manmade Forcings

Progression_of_the_2012-2014_historic_California_drought,_from_December_2013_to_July_2014It appears the debate is not over. For years global warmists, a.k.a. climate change activist and the alphabet soup of the mainstream media have been pointing tot he drought in California as irrefutable evidence man-made CO2 emissions are the primary cause of drought conditions and extreme weather. Now there is science to contradict their claims.

Who wouldn’t agree lowering CO2 emissions is a good idea, but not the way the Obama Administration and his EPA is doing it, which is on the backs of ordinary taxpayers.

Watts Up With That?

Guest Post by Bob Tisdale

UPDATE:  See the update at the end of the post. One of the authors of the paper has joined us here at WUWT.

# # #

This is a revisit of a paper already discussed in the WUWT post Surprising PNAS paper: CO2 emissions not the cause of U.S. West Coast warming. We’re revisiting it because it relates to the record high global surface temperatures in 2014. There already has been and there continues to be a lot of misinformation about those record highs in the months to come, so this is another post intended to counter that misinformation.

The extraordinary sea surface temperatures of the Northeast Pacific are known to be responsible for the record high global surface temperatures in 2014. (See the post Axel Timmermann and Kevin Trenberth Highlight the Importance of Natural Variability in Global Warming… and the post On…

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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 – 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!

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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