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The EV Graveyard Reckoning, Hardly Anyone Wants To Buy A Used One

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The EV Graveyard Reckoning, Hardly Anyone Wants To Buy A Used One

Authored by Mike Shedlock via MishTalk.com,

The market for used EVs is plummeting. What will car rental companies do with the used ones? Problems started in China but have spread to Europe and the US.

China’s Abandoned, Obsolete Electric Cars Are Piling Up in Cities

Bloomberg notes China’s Abandoned, Obsolete Electric Cars Are Piling Up in Cities

A subsidy-fueled boom helped build China into an electric-car giant but left weed-infested lots across the nation brimming with unwanted battery-powered vehicles.

On the outskirts of the Chinese city of Hangzhou, a small dilapidated temple overlooks a graveyard of sorts: a series of fields where hundreds upon hundreds of electric cars have been abandoned among weeds and garbage.

Similar pools of unwanted battery-powered vehicles have sprouted up in at least half a dozen cities across China, though a few have been cleaned up. In Hangzhou, some cars have been left for so long that plants are sprouting from their trunks. Others were discarded in such a hurry that fluffy toys still sit on their dashboards.

The cars were likely deserted after the ride-hailing companies that owned them failed, or because they were about to become obsolete as automakers rolled out EV after EV with better features and longer driving ranges. They’re a striking representation of the excess and waste that can happen when capital floods into a burgeoning industry, and perhaps also an odd monument to the seismic progress in electric transportation over the last few years.

Shenzhen-based photographer Wu Guoyong was one of the first people in China to document the waste that results from frenetic development, taking striking drone shots of the piles of abandoned bicycles in 2018. In 2019, he filmed aerial footage of thousands of electric cars in empty lots around Hangzhou and Nanjing, the capital of China’s eastern Jiangsu province.

“The shared bikes and EV graveyards are a result of unconstrained capitalism,” Wu said. “The waste of resources, the damage to the environment, the vanishing wealth, it’s a natural consequence.”

Hoot of the Day

EV graveyards are a result of unconstrained capitalism.

Mercy!

The Chinese government literally forced people to buy the damn things. Biden is attempting the same in the US.

That article is from August. Let’s flash forward to December 21 to see how things are going in Europe.

No One Wants Used EVs, Making New Ones a Tougher Sell Too

What started in China is not limited to China. A second Bloomberg article reveals No One Wants Used EVs, Making New Ones a Tougher Sell Too

Because most new vehicles in Europe are sold via leases, automakers and dealers who finance these transactions are trying to recover losses from plummeting valuations by raising borrowing costs. That’s hitting demand in some European markets that were in the vanguard of the shift away from fossil fuel-powered propulsion. Some of the biggest buyers of new cars, including rental firms, are cutting back on EV adoption because they’re losing money on resales, with Sixt SE dropping Tesla models from its fleet.

The problems are expected to intensify next year, when many of the 1.2 million EVs sold in Europe in 2021 will come off their three-year leasing contracts and enter the secondhand market. How companies tackle this problem will be key for their bottom lines, consumer confidence and ultimately decarbonization — including the European Union’s plan to phase out sales of new fuel-burning cars by 2035.

“There isn’t used-car demand for EVs,” said Matt Harrison, Toyota Motor Corp.’s chief operating officer in Europe. “That’s really hurting the cost-of-ownership story.”

“One has to slash prices significantly just to get customers to look at EVs,” said Dirk Weddigen von Knapp, who heads a group representing VW and Audi dealers.

Biden Struggles to Convince People to Buy EVs, Only 12 Percent Seriously Considering

On April 18, I reported Biden Struggles to Convince People to Buy EVs, Only 12 Percent Seriously Considering

On July 13, I noted Despite Huge Incentives, Supply of EVs on Dealer Lots Soars to 92 Days

On August 20, I reported Clean Energy Exploitations and the Death Spiral of an Auto Industry

On October 16, I commented Wake Up Mr. President, Consumers Want Hybrids, Not EVs

More accurately, that should read Wake Up Mr. President, Consumers Don’t Want EVs.

GM Decreases EV Investment in Favor of Buybacks

And on December 2, I noted To Shore Up Share Price, GM Decreases EV Investment in Favor of Buybacks

Last month, GM said it would push back the opening of an electric-truck factory in suburban Detroit by a year. It also scrapped an earlier goal of producing 400,000 EVs over a roughly two-year stretch, through mid-2024.

Slam Dunk Ford Project Now Unclear

Ford’s EV plan is similarly distressed. Ford pauses and then scales back proposed Michigan facility backed by government funding.

Manchin Blasts Biden’s Definition of “Foreign Entity of Concern”

In the you can’t make this up department, Biden’s EV Subsidy Rules Leave Room for Chinese Suppliers

Depending on the definition of “foreign entity of concern” a number of things are floating in the wind including $7,500 tax credits.

Officials worked for months to define a foreign entity of concern but failed. It is not even clear if Ford buyers are eligible for tax credits. “Licensing technology, might be permissible under the rules,” officials said.

Who wants to buy a new EV on the basis a $7,500 credit “might” be allowed?

Q&A on What’s Delaying the Definition

Q: Why the struggle on the definition of “Foreign Entity of Concern”?
A: Ford wants to use Chinese technology but GM wants to block it.

For discussion, please see An Epic Battle: Ford to Use China’s Battery Technology, GM Wants it Blocked

My comment then was “Biden is guaranteed to upset someone. That’s what happens when you interfere in the free markets, taking sides.”

Biden is avoiding a firm definition hoping the problem will go away. But it won’t.

Green Fantasy

In the real world, The Green Fantasy Ends Because Consumers Don’t Want to Pay for It

EVs are not selling because despite massive subsidies to both the manufacturers and consumers, the latter via tax credits, consumers don’t want them.

But here we are, blaming this mess on capitalism. “It’s a natural consequence.

What a hoot.

Tyler Durden
Wed, 12/27/2023 – 08:35

S&P Futures Recharge For Last Santa Rally Push, Less Than 1% Away From All Time High

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S&P Futures Recharge For Last Santa Rally Push, Less Than 1% Away From All Time High

US futures were flat in muted trading following yesterday’s gain which pushed the S&P to within fractions of an all-time high amid trader hopes that the Federal Reserve is getting close to cutting interest rates, even if it means sparking another violent bout of inflation. As of 8:15 am, futures on the S&P 500 and the Nasdaq 100 indexes flirted between small gains and losses; after rising 0.4% on Tuesday, the S&P is heading for a seven-week winning streak and resides within 0.5% of the record high reached early last year. 10Y yields slumped to session lows around 3.842%, down 5 bps from Tuesday’s close, while Brent also dipped about $1, sliding below $80.

In premarket trading, Coherus Biosciences rose 37% after the FDA approved its medication administered after chemotherapy to reduce infection risks. Cryptocurrency-related stocks also advanced as Bitcoin recouped some of Tuesday’s losses, and traded around $43,000 rebounding from Tuesday’s drop. Other major cryptocurrencies also gained. Here are some other notable premarket movers:

  • Cytokinetics (CYTK) soared 51% after a pivotal trial of its experimental heart drug aficamten showed statistically significant and clinically meaningful increase in the primary efficacy endpoint.
  • Iovance Biotherapeutics (IOVA) drops 28% after the FDA placed a clinical hold on a trial in response to a fatal adverse event potentially related to the non-myeloablative lymphodepletion pre-conditioning regimen.

Following the Fed’s shocking dovish pivot on Dec 13, bets that the Fed could start cutting rates as soon as March have pushed US stocks to levels that most consider overbought but that has not stopped them from continuing to rise. This is due to historic move in financial conditions which have eased more in the past two months than ever before, including the launch of QE1, QE2, QE3 and so on.

“S&P 500 buyers will certainly not back down before sending the index to a fresh high this week, or the next,” said Ipek Ozkardeskaya, a senior analyst at Swissquote Bank SA. Still, “the market optimism is overstretched. The Fed will probably cut rates but not at the speed that’s currently priced in. Once the Santa high fades, the hangover will hit,” she said.

An index of manufacturing sentiment later on Wednesday and unemployment claims on Thursday might provide further clues about the economic and monetary-policy outlook.

Meanwhile, shares in Europe posted a modest advance to the highest level since January 2022 as trading resumed after the Christmas holiday break. The Stoxx Europe 600 index is set to end the year with a gain of more than 12%, and also approaching all time highs, after rallying in the past two months amid speculation the ECB and Federal Reserve are moving closer to rate cuts. Trading volumes were light on Wednesday, with only three trading sessions left in 2023. Technology stocks were among the biggest gainers as Prosus NV rebounded from a slump triggered by a selloff in Tencent Holdings Ltd. Anglo American Plc climbed as much as 4.3% after a report that it’s selling a minority stake in Britain’s $9 billion Woodsmith fertilizer mine. On the downside, AP Moller-Maersk AS fell 4.7% after saying it’s preparing to resume shipping through the Red Sea. Container-shipping peer Hapag-Lloyd AG slumped 4.3%. The stocks had rallied on expectations that the disruption caused by attacks on Red Sea container traffic would allow companies to raise the prices. Here are some other notable movers:

  • Vestas Wind Systems rose as much as 6.9% after the Danish wind-power manufacturer announced it has received two large orders projects in the US and in Australia.
  • AMG Critical Materials rises as much as 4.2% after the specialty chemicals firm announced it would buy the Vanadium Redox Flow Battery (VRFB) activities from JM Voith
  • Anglo American rises as much as 4.3% after the Times reported the mining company is preparing to sell a minority stake in Britain’s $9 billion Woodsmith fertilizer mine
  • AstraZeneca rises 1.8% after the British pharmaceuticals company agreed to acquire Chinese cell therapy developer Gracell Biotechnologies for as much as $1.2 billion
  • Naspers and Prosus rise, following Hong Kong-listed Tencent in recouping some Friday losses, on signs Beijing is softening its stance on new gaming restrictions
  • Shipping stocks fall after Maersk said it’s preparing to resume shipping through the Red Sea, thanks to a new multinational maritime task force to protect vessels

Asian stocks posted solid gains, rising 1.2% led by a rebound in mainland China where stocks reversed earlier losses, after data showed a quickening speed of growth in the country’s industrial profits, helped by favorable base effects. Japan’s Nikkei 225 index gained over 1%, hovering slightly below its previous high in July, after Bank of Japan board members discussed the potential timing of ending the negative rate policy during their meeting last week, with several members indicating they see no rush to make the move. The yen weakened and Japanese government bond yields fell after the release of the summary. Australia’s S&P/ASX 200 index rose to its highest since April 2022, fueled by gains in miners.

in FX, the Bloomberg Dollar Spot Index was little changed while the yield on policy-sensitive two-year Treasuries fell one basis point to 4.34%. The yen fell as much as 0.3% against the dollar after one board member indicated it is appropriate for the central bank to continue monetary easing. Another said the BOJ can wait until after it sees the results of the spring wage negotiations in March to decide if it should raise rates. “Removal of negative interest rate policy in January is off the table” after the central bank took a cautious approach at the December meeting, said Shoki Omori, chief desk strategist at Mizuho Securities in Tokyo. The continuation of NIRP could maintain the rate differential with the US and weaken the yen against the dollar, Omori said.

In rates, treasuries held small gains in early US trading, though 2-year notes sold at auction Tuesday remain slightly cheaper than the auction yield, which was lower than anticipated on strong demand and the biggest stop-through since June. Yields are lower by as much as 3bp on the day and still inside past week’s ranges; 10-year 3.87% vs last week’s low 3.827%, reached following downward revision to 3Q GDP.  European yields are sharply lower on their first trading day since Dec. 22; German two-year yield fell four basis points to 1.94%, nearing March’s low. Activity remains muted with treasury futures volumes through 7am were less than half 20-day average levels. Supply cycle continues with $58BN in 5-year notes auction at 1pm.  WI 5-year yield of 3.865% is lower than 5-year auction results since May and more than 50bp lower than November’s sale following past month’s collapse in yields unleashed by signals from Fed that no further rate hikes are likely

In commodities, oil traded near its highest close in almost a month, with a new attack on shipping in the Red Sea underscoring why some vessels are avoiding the key route. Brent crude dipped 0.4% after rallying 2.5% on Tuesday when European markets were closed.

Bitcoin recovered amid renewed speculation that the US securities regulator is getting close to approving an exchange-traded fund investing directly in the biggest token. Bitcoin advanced as much as 2.1% and traded around $43,000 as of 12:10 p.m. in London, rebounding from Tuesday’s drop. Other major cryptocurrencies also gained. Bitcoin Cash, one of the early offshoots of the original digital currency, rallied as much as 14% after investors piled into an investment vehicle tracking the token.

Looking at today’s US economic calendar , we have the December Richmond Fed manufacturing index at 10am and December Dallas Fed services activity gauge at 10:30am. No Fed speakers are scheduled for remainder of year.

Market Snapshot

  • S&P 500 futures little changed at 4,824.25
  • Brent futures down 0.3% to $80.84/bbl
  • Gold spot little changed at $2,068.71
  • U.S. Dollar Index little changed at 101.41
  • STOXX Europe 600 up 0.3% to 478.82
  • MXAP up 1.2% to 167.13
  • MXAPJ up 1.2% to 521.00
  • Nikkei up 1.1% to 33,681.24
  • Topix up 1.1% to 2,365.40
  • Hang Seng Index up 1.7% to 16,624.84
  • Shanghai Composite up 0.5% to 2,914.61
  • Sensex up 0.9% to 71,991.58
  • Australia S&P/ASX 200 up 0.8% to 7,561.22
  • Kospi up 0.4% to 2,613.50
  • German 10Y yield little changed at 1.94%
  • Euro little changed at $1.1052
  • Brent Futures down 0.3% to $80.84/bbl

Top Overnight News

  • BOJ board members discussed the potential timing of the nation’s first interest rate hike since 2007 during their meeting last week, with several members indicating they see no rush to make the move. RTRS
  • China’s November industrial profits posted double-digit gains as overall manufacturing improved, although soft demand continued to constrain business growth expectations, emboldening calls for more macro policy support. RTRS
  • The Chinese government on Wednesday threatened to place further trade sanctions on Taiwan if the ruling party “stubbornly” adheres to supporting independence, in a further escalation of the war of words as Taiwanese elections approach next month. RTRS
  • The EU is preparing a back-up plan worth up to €20bn for Ukraine, using a debt structure that sidesteps the objections of Hungary’s Viktor Orbán about funding the war-torn country. FT
  • Almost all of Russia’s oil exports this year have been shipped to China and India, Deputy Prime Minister Alexander Novak said on Wednesday, after Moscow responded to Western economic sanctions by quickly rerouting supplies away from Europe. Russia has successfully circumvented sanctions on its oil and diverted flows from Europe to China and India, which together accounted for around 90% of its crude exports, Novak, who is in charge of the country’s energy sector, told Rossiya-24 state TV. RTRS
  • In campaign documents and media interviews, Trump has floated placing a tariff of 10% on all imported goods and matching tariffs on trading partners with higher rates “an eye for an eye, a tariff for a tariff.” He wants to revoke normal trading relations with China, a legal step that would automatically raise levies on everything from toys and aircraft to industrial materials. WSJ
  • Israel is willing to consider the first stage of the Egyptian peace proposal for Gaza, which would see Hamas release hostages in exchange for Palestinians being held prisoner. WSJ
  • Tesla is preparing to roll out a revamped version of its smash hit Model Y from its Shanghai plant, according to people familiar with the matter, as domestic rivals accelerate product launches amid heated competition. BBG
  • Amazon received an FDA warning for allegedly selling products labeled as supplements or food that contained undeclared and potentially harmful ingredients. BBG

US Event Calendar

  • 10:00: Dec. Richmond Fed Business Conditions, prior -9
  • 10:00: Dec. Richmond Fed Index, est. -3, prior -5
  • 10:30: Dec. Dallas Fed Services Activity, prior -11.6

Tyler Durden
Wed, 12/27/2023 – 08:19

Of Course: Far-Left ‘Disinformation’ Operatives Tied To EU Investigation Of X, Receive White House Christmas Card

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Of Course: Far-Left ‘Disinformation’ Operatives Tied To EU Investigation Of X, Receive White House Christmas Card

As regular readers know, in large part thanks to former Senate investigator Paul Thacker (at the Disinformation Chronicle), and Matt Taibbi’s crew at Racket News, the Center for Countering Digital Hate (CCDH) ‘think tank’ is nothing more than a partisan censorship operation whose goal is to silence dissent. Truly evil stuff, particularly considering that the Biden White House peddled obvious foreign lies created by CCDH – smearing 3rd party Biden rival Robert F. Kennedy Jr. as part of their ongoing efforts to support the establishment.

The group has also been linked to the Center for American Progress, founded by Democrat darling John Podesta.

CCDH helps the EU vs. Elon Musk

And so, it should come as no surprise that CCDH, founded by former Labour party official Imran Ahmed, has helped the EU open ‘formal infringement proceedings against X.’

“The @CCDHate team has been briefing EU officials since October 7, using our research on the tidal wave of hate and disinformation coming from social media,” wrote Ahmed.

What’s more, Ahmed bragged about receiving a “lovely card from the President, First Lady, Commander, & Willow.”

Read up on CCDH here.

Wonder if they’ve been briefing the EU on this?

Tyler Durden
Wed, 12/27/2023 – 07:45

Banks Terminate 60,000 Workers In One Of The Bleakest Years For The Industry Since 2008

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Banks Terminate 60,000 Workers In One Of The Bleakest Years For The Industry Since 2008

The collapse of three US regional banks – First Republic Bank, Silicon Valley Bank, and Signature Bank – marked some of the largest failures in the banking system since 2008. Central banks contained the “mini-crisis” earlier this year with forced interventions and the mega-merger of Credit Suisse and UBS. Despite the interventions, global banks still axed the most jobs since the global financial crisis. 

A new report from the Financial Times shows twenty of the world’s largest banks slashed 61,905 jobs in 2023, a move to protect profit margins in a period of high interest rates amid a slump in dealmaking and equity and debt sales. This compared with the 140,000 lost during the GFC of 2007-08.

“There is no stability, no investment, no growth in most banks — and there are likely to be more job cuts,” said Lee Thacker, owner of financial services headhunting firm Silvermine Partners. 

FT noted that corporate disclosure data and its independent reporting did not include smaller regional bank cuts, indicating total job loss could be much higher. 

At least half of the job cuts came from Wall Street lenders struggling with Western central banks’ most aggressive interest rate hikes in a generation. 

The most significant cut of any single bank was at Switzerland’s UBS.

Morgan Stanley reduced jobs by 4,800, Bank of America by 4,000, Goldman Sachs by 3,200, and JPMorgan Chase by 1,000. As a whole, Wall Street cut 30,000 workers this year. 

“The revenues aren’t there, so this is partly a response to overexpansion. But there is also a simpler explanation: political cost-cutting,” said Thacker. 

Gaurav Arora, global head of competitor analytics at Coalition, warned: “We expect full-year 2024 to be a continuation of the story of 2023.”

Arora’s view of further turmoil aligns with our two recent notes: Banks’ Usage Of The Fed’s Bailout Facility Soars To New Record High and Large Bank Deposits Rise As Money-Market Outflows Accelerate, Small Banks Still Stressed

“We see banks getting more conservative,” Arora concluded. 

Tyler Durden
Wed, 12/27/2023 – 05:45

Britain’s Net Zero Disaster & The Wind Power Scam

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Britain’s Net Zero Disaster & The Wind Power Scam

Authored by Rupert Darwall via The Epoch Times,

“This is not about complicated issues of cryptocurrency,” Assistant U.S. Attorney Nicolas Roos declared in the Sam Bankman-Fried trial, after accusing the defendant of building FTX on a “pyramid of deceit.” Much the same can be said about the foundations of Britain’s net-zero experiment. Energy is complicated, and electricity is essential to modern society and our quality of life, but as with FTX, the underlying story is straightforward: Wind power and net zero are built on a pyramid of deceit.

Net zero was sold to Parliament and the British people on claims that wind-power costs were low and falling. This was untrue: Wind-power costs are high and have been rising. In the net-zero version of “crypto will make you rich,” official analyses produced by the Treasury and the Office for Budget Responsibility rely on the falsehood that wind power is cheap, that net zero would have minimal costs, and that it could boost productivity and economic growth. None of these has any basis in reality.

The push for net zero began in 2019, when the UK’s Climate Change Committee produced a report urging the government to adopt the policy. Part of the justification was historic climate guilt. In the words of committee chair Lord Deben, Britain had been “one of the largest historical contributors to climate change.” But the key economic justification for raising Britain’s decarbonization from 80 percent to 100 percent by 2050—i.e., net zero—was “rapid cost reductions during mass deployment for key technologies,” notably in offshore wind. These illusory cost reductions, the committee claimed, “have made tighter emission reduction targets achievable at the same costs as previous looser targets.” It was green snake oil.

During the subsequent 88-minute debate in the House of Commons to write net zero into law, the clean-energy minister, Chris Skidmore, also asserted that net zero’s cost would be the same as the previous 80 percent target, which Parliament had approved in 2008. Challenged by a Labour MP on the absence of a regulatory-impact assessment, Mr. Skidmore misled Parliament, saying that there had been no regulatory-impact assessment in respect of raising the initial 60 percent target to 80 percent.

The regulatory-impact assessment that Mr. Skidmore says doesn’t exist gave a range of £324 billion (about $412 billion) to £404 billion when the target was raised to 80 percent—an estimate that excluded transitional costs—and cautioned that costs could exceed this range. Unlike today’s political pronouncements, the assessment was honest about the consequences of Britain acting if the rest of the world didn’t. “The economic case for the UK continuing to act alone where global action cannot be achieved would be weak,” it warned.

The Climate Change Act was passed to show Britain’s climate leadership and inspire the rest of the world to follow its example. How did that work out? In the 11 years that transpired from passing the Act to legislating net zero in 2019, Britain’s fossil fuel emissions fell by 180 million metric tons—a 33 percent reduction. Over the same period, the rest of the world’s emissions increased by 5,177 million metric tons—a rise of 16 percent. Put another way, 11 years of British emissions reduction were wiped out in about 140 days by increased emissions from the rest of the world.

Someone who claims that he’s a leader but who has no followers is typically regarded as a fool. It’s different with climate. Politicians parade their green virtue—Mr. Skidmore is to quit the House of Commons, and he teaches net-zero studies at Harvard’s Kennedy School—while voters get mugged with higher energy bills. Analysis of Britain’s Big Six energy companies’ regulatory filings reveals that fuel-input costs for gas- and coal-fired power stations were flat from 2009 to 2020. Still, the average price per kilowatt hour (kWh) of electricity paid by households rose 67 percent, driven by high environmental levies to subsidize renewable-energy investors. Yet, supposedly, the cost of renewable energy has plummeted.

During Prime Minister’s Questions earlier this year, Rishi Sunak claimed that the cost of offshore wind had fallen from £140 per megawatt hour (MWh) to £40 per MWh, numbers assiduously propagated by the wind lobby and the Climate Change Committee. His claim is flat-out false. The prime minister has been suckered by falling per MWh price bids made by wind investors in successive allocation-round bids for offshore wind subsidies.

The explanation for this is to be found not in falling costs but in a flawed bidding process that rewards opportunistic bidding by wind investors. The government was giving away valuable options that commit the government to honor the prices paid for winning bids but commit investors to nothing. Because investors don’t pay anything for these options, the only way they can get them is by cutting the price they offer—but aren’t obliged to take—for their electricity unless they choose to exercise their options much later in the process.

Falling prices in successive allocation rounds are thus an artifact of moral hazard hardwired into the allocation mechanism; they reveal nothing about the trend in the costs of offshore wind. Analysis of audited financial data of wind farm companies undertaken by a handful of independent researchers comprehensively debunks the falling wind costs claim. The unavoidable move to deeper waters offset any cost reductions and operating costs per MWh of electricity for new offshore wind projects; the prices for the move are about double those assumed in the subsidy bids.

Preeminent among these researchers is Gordon Hughes, a former economics professor at the University of Edinburgh and adviser to the World Bank on power plant economics. Mr. Hughes’s analysis shows that by the 12th year of operation, rising per-MWh operating costs of deep-water wind turbines exceed their government-guaranteed prices, squeezing out their capacity to repay their capital and financing costs

The intermittency and variability of wind and solar led the government to create a capacity market to pay for standby generation. In any economic appraisal of renewables, the costs of running the capacity market should be allocated to wind and solar as their intermittency and variability create the need for it. Electricity procured from the capacity market isn’t cheap. In 2020, German-owned Uniper’s thermal power stations obtained an average price of £224 per MWh, about four times the typical wholesale price.

Confirmation that offshore wind has huge, likely insuperable, cost and operating difficulties came in June, when Siemens Energy issued a shock profits warning and saw its shares plunge by 37 percent, in part because of higher-than-anticipated turbine failure rates. According to Mr. Hughes, the implication is that future wind operating costs will be higher, and output significantly lower, shortening the turbines’ economic lives. His conclusion is crushing:

“The whole justification for the falling costs of wind generation rested on the assumption that much bigger wind turbines would produce more output at lower capex cost per megawatt, without the large costs of generational change. Now we have confirmation that such optimism is entirely unjustified. … It follows that current energy policies in the UK, Europe, and the United States are based on foundations of sand—naive optimism reinforced by enthusiastic lobbying divorced from engineering reality.”

The British government has been conned into placing a massive bet on offshore wind and is forcing electricity consumers to spend billions of pounds on a dead-end technology.

The falling cost of wind deception contaminates official assessments of the macroeconomic consequences of net zero. The Office for Budget Responsibility claims that the cost of low-carbon generation has fallen so fast that it’s now cheaper than fossil fuel generation. Similarly, the Treasury erroneously took falling prices in wind subsidy allocation rounds as an indication of falling wind costs. Both see the economy riddled with multiple layers of market failures, while not recognizing the real danger of government policy being captured by vested interests, as, indeed, it has been. Taken to its logical conclusion, theirs is an argument for switching to central planning and a command-and-control economy.

The Treasury argues that “other things being equal,” the added investment required by renewable energy “will translate into additional GDP growth.” Other things, of course, aren’t equal. As recent history shows, there’s a world of difference between investors and politicians making capital-allocation decisions. The centrally planned economies of the former communist bloc squandered colossal amounts of capital, immiserating their populations. Few now believe that investment in those economies boosted growth.

We don’t need to hypothesize. Government data disprove the Treasury’s contention and demonstrate that increasing deployment of renewable capacity reduces the productivity of Britain’s grid. In 2009, 87.3 gigawatts (GW) of generating capacity, including only 5.1 percent of wind and solar, generated 376.8 terrawatt hours (TWh) of electricity. In 2020, 100.9 GW of generating capacity, with wind and solar accounting for 37.6 percent of capacity, produced 312.3 TWh of electricity. Thanks to renewables, 13.6 GW (15.6 percent) more generating capacity produced 64.5 TWh (17.1 percent) less electricity.

Those numbers are damning for renewables and demonstrate why they make electricity more expensive and people poorer. Before mass deployment of renewables, 1 MW of capacity in 2009 produced 4,312 MWh of electricity. In 2020, 1 MW of capacity generated 3,094 MWh, a decline of 28.3 percent. It’s as clear as can be: Investment in renewables shrinks the economy’s productive potential. This is confirmed by the International Energy Agency’s net-zero modeling. Its net-zero pathway sees the global energy sector in 2030 employing nearly 25 million more people, using $16.5 trillion more capital, and taking an additional land area the combined size of California and Texas for wind and solar farms and the combined size of Mexico and France for bioenergy—all to produce 7 percent less energy.

Britain’s energy-policy disaster has lessons for the United States. The physics and economics of wind power aren’t magically transformed when they cross the Atlantic. Whenever a politician or wind lobbyist touts wind as low-cost or says net zero will boost growth, they become accessories to the wind power scam. The data lead ineluctably to a decisive conclusion: Net zero is anti-growth. It’s a formula for prolonged economic stagnation. Anyone who wants the truth about renewables should look at Britain and the sorry state of its economy. For the past decade and a half, it has been going through its worst period of growth since 1780.

Unlike in business and finance, there are no criminal or civil penalties for those who promote policies based on fraud and misrepresentation. Rather, net zero is similar to communism. Like net zero, communism was based on a lie: that it would outproduce capitalism. But it failed to produce, and belief in communism evaporated. When the collapse came, it was sudden and rapid. The truth couldn’t be hidden. A similar fate awaits net zero.

Tyler Durden
Wed, 12/27/2023 – 05:00

Iron Ore Futs Hit Ten-Month High On Chinese Stimulus Efforts

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Iron Ore Futs Hit Ten-Month High On Chinese Stimulus Efforts

Iron ore futures hit a ten-month high on Monday, riding a wave of optimism from Chinese policymakers who rolled out new a fiscal stimulus package coupled with interest rate cuts at major state-owned banks. This move by Beijing is set to cushion the struggling property market.

Iron ore futures in Singapore soared to the highest intra-day level since late February, around $140 per ton. Prices have soared 40% since early August. 

On Sunday, state-run media Global Times reported that Chinese policymakers planned to roll out 1 trillion yuan ($137 billion) special bonds to boost investment and demand in 2024. 

“Construction of the projects will improve China’s flood control system, emergency response mechanism and disaster relief capabilities, and better protect people’s lives and property, so it is very significant,” the National Development and Reform Commission wrote in a statement over the weekend, which it had identified 9,600 projects. 

Just a few days prior, China’s top state-controlled banks reduced interest rates on certain deposits, signaling reduced lending at a time when Beijing is engineering a recovery. 

Li Changan, a professor at the Academy of China Open Economy Studies of the University of International Business and Economics, told the media outlet that Chinese policymakers still have additional fiscal and monetary tools to support recovery. 

Bloomberg noted, “With heightened anticipation for better demand, steel mills that have depressed iron ore stockpiles to keep operations lean may now face restocking pressure should needs exceed supplies.” 

“We maintain that Iron Ore futures should quite easily target $145-158 a ton at least by next quarter,” said Atilla Widnell, managing director at Navigate Commodities Pte in Singapore. 

Tyler Durden
Wed, 12/27/2023 – 04:15

Africa Doesn’t Need More Government Aid; It Needs Free Markets

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Africa Doesn’t Need More Government Aid; It Needs Free Markets

Authored by Lipton Matthews via The Mises Institute,

With a large regional market and youthful population, Africa should be on the cusp of greatness. Yet instead, it remains the poorest continent on earth. Analysts are conceding that Africa’s outlook is gloomy because the region is on track to miss poverty reduction goals. Successive African administrations have consulted multiple strategies to tackle the scourge of poverty with varying degrees of success; however, the plague of poverty has been persistent.

Combatting poverty in Africa is indeed a daunting task since some countries have yet to overcome geographical and environmental limitations. For example, the ravaging effects of the tsetse fly on the food market amount to an annual loss of $5 billion. Achieving developmental targets becomes even more elusive when corruption is added to the stew of problems. Corruption hampers growth by limiting the efficiency of institutions and discouraging foreign direct investment.

Corrupt states foster incentives for entrepreneurs to use wealth as leverage to manipulate government policy and the legal system to favor their interests. Such arrangements benefit a few people, but the costs are widely diffused throughout society. When political cronies are favored by government policy, the implication is that more innovative companies are marginalized, thereby lowering growth and decreasing consumer utility. The $7 billion that Nigeria loses yearly due to the corruption and inefficiency of its ports is critical to the narrative undergirding, according to a 2022 anti-corruption report.

Duplication of tasks, excessive delays to the import/export processes, red tape, unscrupulous officials, and multiple layers of taxation were cited as some of the factors corroding the success of Nigerian ports. Corruption is inextricably linked to a lack of economic freedom. People often assume that regulations prevent corruption, when in reality overregulation facilitates opportunities for corruption and bribery. When commerce is lightly regulated, it’s easier to do business, and therefore the incentive to bribe workers to expedite transactions is significantly reduced.

More than anything else, Africa needs economic freedom to promote growth and good governance. Statist policies have derailed rather than stimulate social and economic progress in Africa. Instead of boosting industrial progress, the leftward lurch of African states led to economic stagnation and social immiseration. The example of postindependence Zambia illustrates that the adoption of socialist policies fostered poverty and entrepreneurial failure. Import substitution did not enable Zambia to achieve food security, as proponents intended, but it succeeded in making the economy less competitive and reliant on exports.

African leaders have repeatedly pursued statist policies to attain economic growth only to be disappointed in the long term. In 2016, Kenya’s central bank implemented an interest rate cap that was removed in 2019 because it curtailed credit to the private sector, damaged growth, and weakened the effectiveness of monetary policy, according to President Uhuru Kenyatta. Economic freedom is a proven strategy for advancing Africa’s prosperity. A report published in the International Journal of Emerging Markets argues that improvements in economic freedom stimulate growth in sub-Saharan Africa.

The findings reveal that economic freedom and institutional quality are complementary; therefore, focusing on both variables yields desirable outcomes. Economic freedom has a tremendous impact on Africa’s economic performance because the removal of trade barriers liberates the economy’s productive potential. Removing business restrictions increases output by freeing capital and technology to allocate resources.

Some African leaders have gotten the message and are planning to enact promarket reforms. Nigeria’s president, Bola Ahmed Tinubu, has expressed his commitment to promarket economic reforms and is expected to be closely scrutinized by global pundits. As Africa’s largest economy, Nigeria’s success would become an inspiration to the developing world and blacks in the diaspora. Since his ascension to office, Tinubu has removed expensive gasoline subsidies that incurred costs for the state and made it unprofitable for entrepreneurs to establish private refineries.

Further, on June 9, 2023, President Tinubu signed the Electricity Act 2023 into law. The objective of this law is to decentralize energy policies by enabling states to legislate markets for the generation and supply of energy to regions within their domains. Experts have been predicting that this law will bolster the competitiveness of Nigeria’s energy market and increase access to energy resources. Despite being oil rich, Nigeria is electricity poor with 43 percent of the population lacking access to grid electricity. Therefore, by encouraging more entrepreneurship, decentralization is expected to boost electricity provision in Nigeria.

Africa is buzzing with ideas, and the appetite for economic reform is growing; therefore, its leaders should respond to the demands of the people by leveraging economic freedom as a tool for growth.

Tyler Durden
Wed, 12/27/2023 – 03:30

A New Solar Powered Desalinization Method Might Have Just Helped Solve Water Scarcity

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A New Solar Powered Desalinization Method Might Have Just Helped Solve Water Scarcity

It looks like a step forward has been taken in the longstanding task of figuring out energy and cost efficient ways of desalinating ocean water. 

According to ABC, scientists at Tianjin’s Nankai University have innovated a solar-powered desalination system that harnesses smart DNA hydrogels for freshwater production.

The method was highlighted in a recent Science Advances publication and offers a significant energy efficiency advantage over traditional desalination techniques like reverse osmosis, which are energy-intensive, the report says.

Additionally, the system is capable of extracting uranium from seawater and treating nuclear wastewater containing uranyl.

In tests conducted in the Bohai Sea, northeast China, a novel solar-powered technique utilizing a DNA hydrogel matrix with graphene oxide demonstrated impressive efficiency, evaporating water at a rate of 3.54 kg per square meter per hour, according to the study team.

This method also showed an ability to selectively extract uranyl ions, outperforming vanadium, a known challenging element in uranium extraction, by 10.4 times.

This innovative approach has the potential to address future water scarcity issues using sustainable energy sources, thereby reducing emissions. However, the research team acknowledges challenges in scaling up this technology.

This development comes amid ongoing criticisms of existing desalination methods, which are often viewed as costly, inefficient, and harmful to local ecosystems.

“With the further development of automated DNA synthesis and other technologies, the system demonstrated in this study is expected to show potential in the development of smart integrated devices for large-scale applications, especially in the acquisition of freshwater and important mineral resources with low energy consumption,” researchers wrote in 2019 when first examining the use of hydrogels. 

You can read the full report here

Tyler Durden
Wed, 12/27/2023 – 02:45

How UNRWA Grooms Terrorists

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How UNRWA Grooms Terrorists

Authored by Bassam Tawil via The Gatestone Institute,

The United Nations Relief and Works Agency (UNRWA) was originally a small agency mandated to provide basic humanitarian relief for Palestinians, including a vote for renewal every three years. Seventy-three years and four generations later, and with more than 30,000 employees and an annual budget of more than $1 billion, it has astonishingly become one of the largest UN agencies.

In the Hamas-ruled Gaza Strip, UNRWA has, in fact, long been operating as the de facto government. By providing the residents of the Gaza Strip with various services, UNRWA exempted Hamas from its responsibilities as the governing body, such as creating a working economy that would pay for education and healthcare, and allowed it, instead, to invest resources in building tunnels and manufacturing weapons. If UNRWA were not there, Hamas would have been forced to fill the vacuum and, for example, build hospitals and schools and find solutions to economic hardship, including unemployment and poverty.

As senior Hamas official Mousa Abu Marzouk said, in explaining why no cement could be spared from terror tunnels to build bomb shelters for Gazan citizens:

“The tunnels were built to protect the fighters of Hamas from [Israeli] airstrikes. As you know, 75% of the residents of the Gaza Strip are refugees. It is the responsibility of the United Nations to protect the refugees.”

Hamas was effectively saying: We are responsible for what happens underground, while UNRWA is responsible for what happens above ground.

In addition to evolving into a monster-sized agency, UNRWA has also morphed into a very costly incubator for terror. UNRWA-run schools emphasize and promote the “right of return,” a euphemism for flooding Israel with millions of Palestinians and turning it into a Muslim-majority Islamist state backed by Iran.

More than 50% of UNRWA’s annual budget of $1.6 billion is dedicated to funding Palestinian schools. These schools have been fostering war-mongering hatred against Israel, and against Jews in general, from the youngest, most impressionable ages and onward throughout the school years, while predictably churning out their final product: terrorists and terrorist sympathizers.

“They [UNRWA] teach us that the Al-Aqsa Mosque belongs to us [Muslims], that Palestine belongs to us,” said Atif Sharha, a student at a UNRWA school in the Shuafat refugee camp, north of Jerusalem.

“I hate the Jews,” said Yousef, another student at a UNRWA school in Kalandia refugee camp, south of Ramallah.

“Yes, they teach us that the Zionists are our enemy,” said Nur Taha, a third student from Kalandia. “We should carry out an [terror] operation against them [Zionists].”

Marcus Sheff, Chief Executive Officer at The Institute for Cultural Peace and Tolerance in School Education (IMPACT-se) studying these hate-policies, laments:

The Palestinian matriculation exams have become a finishing school in extremism. It is as if the Palestinian Authority is cramming as much hate into the tests as possible, to ensure the twelve previous years of indoctrination stay with them into adulthood.”

UNRWA then re-inserts many of these hate-infused people right back into its institutions, perpetuating what the UN is keen on blaming Israel for: “the cycle of violence.”

UNRWA schools have been the focus of media scrutiny on many occasions. UNRWA’s textbooks, compiled by the Palestinian Authority, have been blasted for showy, hate-provoking and terror-inciting material such as “a grammar exercise that encourages Palestinians to ‘sacrifice their blood to liberate Jerusalem.'”

Palestinian textbooks produced by UNRWA contain “antisemitic, hateful, and violent passages,” according to IMPACT-se. Some of these passages in an Islamic education drill include labeling Jews as inherently treacherous. A poem included in the educational content glorifies the killing of Israelis, and portrays dying as martyrs by killing Israelis as a “hobby.”

In a grammar exercise, Jews, it is implied, are impure and supposedly defile the Al-Aqsa Mosque. (They do not. The Jews peacefully tour the exterior grounds, called The Temple Mount, a plateau on which the Al Aqsa mosque now sits. The site is the third-holiest in Islam, but in Judaism the holiest. The plateau is where two Jewish Temples once stood, mentioned in the Bible, before they were destroyed — the first by the Babylonian King Nebuchadnezzar in 586 BCE; the second by the Roman Empire in 70 CE).

Despite years of considerable condemnation of the textbooks, newly produced editions, approved by UNRWA, are exponentially worse.

“Terrorist activities against Israeli civilians are also part of the struggle against the Zionist occupation of Palestine. Thus, the new books exalt Palestinian terrorists who participated in such actions. Dalal al-Mughrabi, for example, who was killed in a terrorist attack she had led against a civilian bus… in which more than 30 men, women and children were murdered, is mentioned in four books, all studied in UNRWA schools at present. In all of them she is described as a heroine and martyr of Palestine.”

According to the textbooks used in UNRWA schools, Jews have no rights whatsoever or any legitimate status in Israel. A Jewish presence in the country is denied historically, geographically and religiously. No reference is made in the books to the history of the Jews throughout the region, either in Biblical or Roman times. Any connection is also denied of the Jews to their ancient capital, Jerusalem, which is presented as an Arab city since its establishment thousands of years ago. The Jews’ presence in Jerusalem today is bewilderingly presented in the books as an aggression against the city’s Arab character.

Beyond the textbooks, both UNRWA administrators and teachers have proudly displayed their approval of terrorism and hatred on countless occasions, including Hamas’s recent October 7 massacre, according to a report published by UN Watch, an independent non-governmental human rights organization, as well as IMPACT-se.

UNRWA math teacher Adnan Shteiwi, for instance, glorified Diaa Hamarsheh, the perpetrator of the March 2022 Bnei Brak shooting attack — in which he murdered four Israeli civilians and one policeman — as a “martyr” whose name should “forever remain in letters of fire, might, and magnificence.”

UNRWA’s Asma Middle School for Girls B encouraged schoolgirls to ” liberate the homeland by sacrificing ‘their Blood’ and pursuing jihad.”

Roni Krivoi, one of the Israeli hostages recently freed from Hamas captivity, reported that he had been kept prisoner in an attic for more than a month and a half, mostly starved and medically untreated. His jailer was an UNRWA teacher.

In Gaza — as with Ahmad Kahalot, Director of the Kamal Adwan Hospital, who admitted that he was the equivalent of a brigadier general for Hamas and that 16 of the hospital’s staff were also “terror operatives for Hamas” — the mesh of Hamas and UNRWA is also illustrated in the high-profile case of Dr. Suhail al-Hindi.

Al-Hindi served as both the principal of an UNRWA elementary school and as the chairman of the UNRWA employee’s union in Gaza. In 2017, UNRWA suspended al-Hindi after it received information that he had just been elected to the Hamas political bureau. UNRWA announced that al-Hindi no longer worked for the agency, but did not say whether he had resigned or been fired. Al-Hindi first said he “resigned” from UNRWA, but later clarified that he was taking early retirement.

The case of al-Hindi and other UNRWA employees suspected of supporting terrorism makes the point that UNRWA is “the money,” while thug terror-groups such as Hamas are “the muscle.”

UNRWA tries to keep up public pretense that its hands are clean, and has taken a belligerently defensive stance against these and other accusations, as it publicly claims that it has a “zero-tolerance policy for hatred.”

The Israeli news site Ynet , however, wrote recently about a UN Watch report:

“In it, some 47 documented cases of school staff promoting antisemitic material are recorded, as school staff openly violates the official UNRWA policy…

“It was only two years ago that UNRWA apologized for similar instances, claiming they were done erroneously and will not occur in the future, but with this latest report, that promise rings hollow.”

One UNRWA employee portrayed Adolf Hitler in a favorable light: “Wake up Hitler, there are people left to burn.”

In addition, as is well-documented, UNRWA has allowed its school buildings to be used by Hamas as storehouses for rocket and other weaponsterror tunnels, and to shelter jihadi terrorists. Hamas and other terror organizations have bet on the media frenzy that would ensue if Israeli forces strike a UN institution (or hospitalmosque, or even a church) that is being used for military purposes. Hamas has been launching rockets at Israel from alongside UNRWA schools, and, when possible, shooting from inside the schools, thereby taking advantage of the sanctuary that a UN institution, especially a “protected space” such as a school, ought to offer under legitimate circumstances.

Last week saw the media explode in condemnation of the Israel Defense Forces for blowing up an UNRWA school, despite the disclosure that the school had been used as a weapons depot and terror tunnels were found in its area.

UNRWA kindergartens have been discovered with weapons hidden inside toys or even in UNRWA bags, and UN officials are charged with being complicit in holding hostages, despite protestations to the contrary. It seems that “zero tolerance” had devolved into “zero oversight.”

When rockets were discovered in UNRWA schools in the past, UNRWA would reassure everyone that they had been turned over to “local authorities.” Those authorities, of course, were Hamas, who most likely relocated them to another equally inappropriate location.

Occasionally, UNRWA officials will make a minor fuss or put on a shocked and affronted façade for donors or the media, but reportedly do nothing in the way of changing the practice. In the upper echelons of UNRWA management, there have been accusations of serious breaches of ethics in the forms of nepotism, bullying, mismanagement of funds — as well as lack of accountability.

This is no small matter, considering that in 2022, annual worldwide contributions to UNRWA alone — not including direct donations to Palestinian governing agencies such as Hamas and the Palestinian Authority, nor to the many NGOs and other Palestinian-specific aid agencies — from 68 donor nations, including the Holy See, was $1.1 billion.

Extensive reports released by UN Watch and IMPACT-se have highlighted the malignant influence of terror organizations such as Hamas, Fatah, and Palestinian Islamic Jihad on UNRWA institutions that either feign ignorance or offer enthusiastic complicity. The repercussions of these revelations are becoming an embarrassment.

Switzerland’s Parliament recently voted to stop funding UNRWA ($21 million annually), labelled Hamas a terrorist organization and unanimously banned it. “Hamas’ brutal terrorist attacks against Israel necessitate a clear position from Switzerland,” they said.

In 2018, the Trump administration, calling UNRWA an “irredeemably flawed operation,” completely cut America’s $300 million annual donation. The aid was reinstated by President Joe Biden almost immediately after he took office.

Many have called the very inception of UNRWA into question, as the UN already has an agency specifically designated for refugees: the United Nations High Commissioner for Refugees (UNHCR).

UNRWA remains a refugee organization distinctly apart from UNHCR based upon two premises: first, that the Palestinians will “return” to their homes in Israel by means of a the “right of return“; and second, that there will never be a resolution not to “return,” thereby making these refugees an eternal stick in the eye to Israel.

The first premise would effectively destroy Israel by imposing a demographic shift: flooding millions of Palestinians, demonstrably none too peace-oriented, into Israel.

The second premise would, and has been, effectively enslaving Palestinians as the crying faces that keep the international “pity-cash” flowing into the coffers of both Palestinian and UNRWA leadership.

Perhaps this may be at least one answer as to why, when UNRWA recently cried for more aid money for Palestinians, the organization was found to have an entire warehouse “filled to the brim” with food. When Gazans stormed the warehouse in October, they discovered copious amounts of rice, lentils, flour and oil.

Whatever hopes that anyone may have held for the trustworthiness of UNRWA have long expired, and were arguably misplaced at the outset. UNRWA, in its current state, has proven itself irremediably defective, unworkable and yet another massive stain on the already scandalously stained UN [such as herehereherehere and here.] The agency has perpetuated the issue of the “refugees” by keeping them in camps while providing them with basic services, only.

Worse, UNRWA has deliberately created new generations of “refugees” by insisting that the descendants of refugees inherit the status of “refugee” – which on its face is nonsense. It is high time for the international community and those who actually want a better future for the Palestinians to liquidate UNRWA and take actions that truly help the Palestinians move forward to a golden life.

Tyler Durden
Wed, 12/27/2023 – 02:00

‘Ballot Banishers’ – 2023 Democrats & 1861 Confederates

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‘Ballot Banishers’ – 2023 Democrats & 1861 Confederates

Authored by Victor Davis Hanson,

In the election of 1860, southern Democrats in 10 states of the soon-to-be formalized Confederacy made it almost impossible for their own voters to cast ballots for Abraham Lincoln for President.

In that sense, the Left in Colorado would have felt right at home in the ante-bellum South – erasing the name of a presidential candidate whom they loathed and by whom they were similarly terrified.

In eerie fashion, and also similar to the old ethos of the Confederacy, the Democratic Left now believes in state nullification of federal statutes.

So like the would-be secessionist states of 1860-1, over 550 jurisdictions, almost all in blue states, claim that federal immigration laws no longer apply to them.

Thus they brag that they can breezily be defied. (Not so easily or willfully are federal gun laws, or EPA mandates, or federal endangered species lists, ignored in red-state jurisdictions.)

The essence of sanctuary cities is an arrogant sense that federal law means nothing to morally superior local and state governments.

So they nullify federal immigration laws in the manner of defying tariffs by South Carolina in 1832, or racial integration by Alabama Governor George Wallace in 1963.

Wallace tried to block integration by opposing federal implementation of the Supreme Court’s ruling against segregation of students by race in public schools and universities, as well as President Kennedy’s federalization of the Alabama national guard.

This Confederatization of Leftist values and protocols is uncanny. And I wrote about the phenomenon in a recent New Criterion article” The Old South Shall Rise Again”.

The echoes keep popping up periodically and predictably in the news, as we saw with the Colorado erasure of Donald Trump from Colorado’s primary and likely general election ballot. Take also racial fixations and obsessions. Is the current diversity/inclusion/equity—woke movement based on similar racial essentialism?

Or in Confederate terms, are we back to certifying one’s particular DNA (now by blood tests, but then by genealogists)? Does the South’s old one-sixteenth/one-drop rule (ask Elizabeth Warren) still determine racial status and privilege?

Do our DEI/woke racially segregated campus dorms, segregated safe spaces, segregated graduations, and segregated events echo Wallace’s 1963 Inauguration Address chant—“Segregation now, segregation tomorrow, segregation forever!”?

Are blue-states becoming like one-dimensional “King Cotton” economies of the past?

Just as a “King Cotton” economy ran the politics of the Old South through its unprecedented wealth, so too our modern leftist magnates are often one-industry “Big Tech” titans—of Amazon, Apple, Facebook, and Google—who more or less by their PAC and foundation “donations” (Mark Zuckerberg alone accounted for $419 million ) warped the work of registrars in many of the key 2020 counties.

One mark of Confederates was the strangling of the southern middle class. A tiny plantationists elite sat atop a vast caste of black slaves and a poor hireling white population.

Yet in terms of aggregate state income and wealth, by 1860 five of the wealthiest ten states in America were slave states and about to secede—given the unquenchable global appetite of the growing Industrial Revolution for southern cotton. (Was the desire for and power of Cotton then like iPhones and Google searches?)

So the sheer power, wealth, and influence of the plantationists remind one of clout and superciliousness of California’s Silicon Valley and its $9-trillion dollars in market capitalization.

Indeed, it is eerie in debates and declarations how California Governor Gavin Newsom brags about California mega-Big Tech success and wealth. Often Newsom talks grandly of his Bay Area, Silicon Valley sector, as if he was Sen. James Hammond, a southern plantation owner, and U.S. Senator from South Carolina, who boasted defiantly in 1858 that “Cotton is King!”

But like Hammond, Newsom then predictably grows silent about the state’s one-fifth of the resident population below the poverty line, one third of all US welfare recipients, the crumbling infrastructure, the dismal schools, the huge multibillion-dollar state deficits, the shrinking and fleeing middle class, the exploding homeless, and the retribalization of the state’s society by race.

Just as King Cotton seemed to ensure palatial homes amid an impoverished general population, poor roads, anemic industry and manufacturing, few rails, and bad public schools, so too does blue-state wealth reside disproportionally in the hands of the few atop a growing class of poor and a vanishing middle class.

In the years before the Civil War and in the ante-bellum Jim Crow South, southern states bled populations fleeing to the new territories in the West or to the manufacturing and industrial boomtowns of the North. They were escaping a fossilized society of have and have nots—eerily representative of the current ethos of the blue-state paradigm.

California has the richest zip codes and greatest number of billionaires, and near highest poverty rate. New York is close; both have largest number of residents escaping their states—ironically to a new South that is becoming as dynamic as the old bygone North.

So the recent ballot erasing of Colorado fits this larger picture of blue-states emulating the values of ante-bellum southern states – erasing ballots, defying federal laws, fixating on race and racial privileges, and catering to a one-dimensional medieval economy and caste, amid a growing underclass struggling with neglected infrastructure, poor schools, and growing poverty.

So what will be the new/old Democratic 2024 election mantra?

“Vote for us—and ballot deletion, states’ rights, federal nullification, racial essentialism and segregation, and a one-party, one-economy plantationist nation”?

Tyler Durden
Wed, 12/27/2023 – 00:00