by Karl Denninger, Market Ticker:
So our President thinks that praise is in order for high fuel prices?
“Here’s the situation. And when it comes to the gas prices, we’re going through an incredible transition that is taking place that, God willing, when it’s over, we’ll be stronger and the world will be stronger and less reliant on fossil fuels when this is over,” Biden said, seeming to justify or praise those sky-high prices Americans face at the pump.
Is that so?
Mind telling me exactly how you think the economy will survive that? I do note that we have a “tiny” little deficit problem which our government has serially made worse — on purpose. I might remind you that we’re shipping oil and other fuel resources overseas so as to blunt the impact of voluntary choices made by other nations and imposing the costs of those choices on our nation’s citizens by force.
TRUTH LIVES on at https://sgtreport.tv/
And I might note that, as I did back in Leverage when I wrote it, that every unit of GDP has a unit of energy behind it and no, you can’t change this no matter what political winds blow.
Or I might remind folks like, for instance our local County Commission that I expected exactly this sort of thing out of our Administration, and in fact gave such a (short, because they like it that way and mandate you only get your couple of minutes) speech in front of them because with tourism a major part of our economy here, and in many other places in the US, these sorts of policies, which are a choice, will utterly destroy said tourism across the United States.
It’s not just tourism, of course. Unlike Europe, for example, our landmass is huge by comparison and every product moves by truck or rail, with the last mile being truck in virtually every case. If you wildly escalate the cost of fuels you wildly raise the price of……. everything. This of course means the “E” in your public company P/E goes down (a lot) and that in turn means stock prices go down — a lot.
Never mind states that have warned that even with the current set of demand and supply on electricity there may be blackouts this summer. How do you expect to multiply said demand by adding electric cars to the mix, which are approximately equal to running an electric clothes dryer for eight hours a night straight in size when we don’t have the capacity for demanded electrical power now without them? I remind you as well that we did have it before we started shutting everything down that wasn’t windy or sunny including nuclear and coal plants which provide stable, base electrical power.
Biden has admitted he meant what we said during the campaign — he intended to cripple “legacy-style” energy production and all the wokesters bought into it. The problem is that all these “greener” solutions are not answers; they are unreliable because you can neither control the wind or cloud cover and what’s worse is that constructing them requires energy which you haven’t generated yet and materials that are in fact made from oil and various things we dig out of the ground — which also requires oil.
As just one example you must dig up 500,000 lbs of earth in order to get the raw material for just one electric car battery. The energy required to do this, of course, is never charged off to the electric car’s “green profile”, nor is the ecological damage. And that’s just for the battery; then there are the rare earth metals required for the motor(s). Further, that’s just to make the battery, you then must also come up with the energy to charge it, of course, every time you wish to use it.
I hope you enjoy what’s happening because no matter the promises made by politicians thermodynamics is not a set of suggestions and, during the 2020 campaign, you were told precisely what Biden’s administration was going to do if elected and they have now done exactly that.
In short Biden promised to wildly raise the cost of fuels of all types and, because fuels of all types are in fact behind every single thing produced, made, sold and consumed by you — whether you like it or not — he also promised to crash the stock market and saddle you with raging inflation.
For once a politician in fact kept his promise.