https://brownstone.org/articles/the-great-reset-didnt-work-the-case-of-evs/
The Great Reset Didn’t Work: The Case of EVs
We are living through one of history’s longest and most excruciating versions of “We told you so.” When in March 2020, the world’s government decided to “shut down” the world’s economies and throttle any and all social activity, and deny kids schooling plus cancel worship services and holidays, there was no end to the warnings of the terrible collateral damage, even if most of them were censored.
Every bit of the warnings proved true. You see it in every story in the news. It’s behind every headline. It’s in countless family tragedies. It’s in the loss of trust. It’s in the upheaval in industry and demographics. The fingerprints of lockdowns are deeply embedded in every aspect of our lives, in ways obvious and not so much.
Actually, the results have been even worse than critics predicted, simply because the chaos lasted such a long time. There are seemingly endless iterations of this theme. Learning losses, infrastructure breakages, rampant criminality, vast debt, inflation, lost work ethic, a growing commercial real estate bust, real income losses, political extremism, labor shortages, substance addiction, and more much besides, all trace to the fateful decision.
The headlines on seemingly unrelated matters go back to the same, in circuitous ways. A good example is the news of the electric vehicle bust. The confusion, disorientation, malinvestment, overproduction, and retrenchment – along with the crazed ambition to force convert a country and world away from oil and gas toward wind and solar – all trace to those fateful days.
According to the Wall Street Journal, “As recently as a year ago, automakers were struggling to meet the hot demand for electric vehicles. In a span of months, though, the dynamic flipped, leaving them hitting the brakes on what for many had been an all-out push toward an electric transformation.”
Reading the story, it’s clear that the reporter is downplaying the sheer scale of the boom-bust.
That’s not to say that Tesla itself is going bust, only that it has a defined market segment. The technology of EVs simply cannot and will not become the major way Americans drive. It might have seemed otherwise for a moment in time but that was due to factors that traced exactly to pent up demand caused by lockdowns and huge errors in supply management due to bad signaling.
Looking back, the lockdowns hit in the spring of 2020 and supply chains were entirely frozen by force. This might have been a major problem for car manufacturers that had long relied on just-in-time inventory strategies. However, at the very time, the demand for travel collapsed. Commutes came to an end, and vacations too. At that same time, pre-arranged government subsidies and mandates for EVs flooded the industry, all of which were later ramped up by the Biden administration.
As demand picked up, retailers sold their old inventory of cars and looked to manufacturers for more but the chips needed to complete the cars were not available. Many cars were put on hold and lots emptied out. This continued through the following year as used car prices soared and stock was otherwise depleted.
By the time matters became desperate in the fall of 2021, manufacturers discerned a heightened demand for EVs and began to retool their factories for more. There was even a time when cars were being shipped without power steering, just to meet the demand.
It might have seemed for a time like the crazed period we just lived through was birthing a completely different way of life. A kind of irrationality, born of shock and awe, swept industry and culture. The EV was central to it.
This demand seemed to pan out in 2022 as Americans grabbed whatever cars were available, perhaps willing to give the new doohickies a shot. So on it went as more carmakers threw more resources at production, benefitting from massive subsidies and staying in compliance with new mandates for reducing their carbon footprint.
There was no particular reason to think anything would go wrong. But then the next year began to reveal uncomfortable truths. Cold weather dramatically cuts the range of the EVs. Charging stations are not as readily available on longer trips, charging takes longer than one expects, and having to plan such matters adds time. In addition, the repair bills can be extremely high if you can find someone to do it.
Tesla as a manufacturer had planned out all such contingencies but other carmakers less so. Very quickly the EVs gained a bad reputation on a number of different fronts.
“Last summer, dealers began warning of unsold electric vehicles clogging their lots. Ford, General Motors, Volkswagen and others shifted from frenetic spending on EVs to delaying or downsizing some projects,” writes the Journal. “Dealers who had been begging automakers to ship more EVs faster are now turning them down.”
In short, “the massive miscalculation has left the industry in a bind, facing a potential glut of EVs and half-empty factories while still having to meet stricter environmental regulations globally.”
Today, lots are selling the cars at a loss just to avoid the costs of keeping them around.
Truly, this has been one spectacular boom-bust in a single industry. There seems to be no real end to the bust either. These days it appears that everyone has given up on any chance of actually converting the mass of American cars to become EVs. All recent trends are headed in the other direction.
Meanwhile, the EV is deeply loved by many as 1) a second car, 2) for well-to-do suburban commuters, 3) who own homes, 4) can charge overnight, and 5) have a gas car as a backup for cold weather and out-of-town trips. That is to say, the market is becoming exactly what it should be – an street-worth golf cart with very fancy features – and not some paradigmatic case for the “great reset.” That’s simply not happening, despite all the subsidies and tax breaks.
“A confluence of factors had led many auto executives to see the potential for a dramatic societal shift to electric cars,” writes the Journal, including “government regulations, corporate climate goals, the rise of Chinese EV makers, and Tesla’s stock valuation, which, at roughly $600 billion, still towers over the legacy car companies. But the push overlooked an important constituency: the consumer.”
Indeed, the American economy, much to the chagrin of many, still primarily relies on consumers to make choices in their best interest. When that doesn’t happen, no amount of subsidies can make up the difference.
This story is impossible to understand without reference to the crazed illusions caused by lockdowns. Those are what provided the respite of time to allow automakers to retool. Then they boosted demand artificially for transportation after a long period in which inventory had been depleted.
Then the whole ridiculous ethos of the “great reset” convinced idiotic corporate executives that nothing would ever be the same. Maybe we would get 15-minute cities powered by sunbeams and breezes after all, along with a social-credit system that would allow the authorities to decommission our ability to drive in an instant.
It turns out that the entire bit, including the fake prosperity of the lockdown economy, made possible by money printing and grotesque levels of government spending, was unsustainable. Even sophisticated car companies bought into the nonsense. Now they are paying a very heavy price. The new market depended on a panic of buying that turned out to be temporary.
In short, the illusions of these horrible policies have come crashing down. It was born of liberty-wrecking policies under the cover of virus control. Every special interest seized the day, including a new generation of industrialists seeking to displace the old ones by force.
More and more, it’s obvious what a disaster this was. And yet no one has apologized. Hardly anyone has admitted error. The big shots who wrecked the world are still in power.
The rest of us are left holding the bag, and paying very high repair bills for cars that are non-optimal for driving from one town to another and back again in the cold weather that was supposed to be gone by now had the “climate change” prophets been correct. They turn out to be as correct as those who promised us that we would no longer need “fossil fuels” and that the magic inoculation would protect everyone from a killer virus.
What astonishing illusions were born of this nutty and destructive period. At some point, not even corporate CEOs will be tricked by the experts.
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https://www.globalresearch.ca/american-foreign-policy-seems-have-nowhere-go/5849703
American Foreign Policy Seems to Have Nowhere to Go. “The bombing of Gaza into the stone age”
Just like the caged-up Palestinians
Over the past four months I have carried out my daily morning scan of the major online news websites increasingly concerned over what I would be seeing given the mainstream media’s reluctance to report honestly and the persistent management by government propaganda mills of what is leaked to the journalists.
News regarding what is taking place with Russia-Ukraine suffered initially as the war turned sharply in Moscow’s favor late last year, so much so that the likely outcome is only being challenged on neocon dominated sites like American Enterprise Institute, Foundation for Defense of Democracies and the National Review. President Joe Biden and team are now only struggling to raise $61 billion for Volodymyr Zelensky to prolong the conflict through the US election later this year so Biden can appear to be a strong “wartime” president fighting hard to defend the United States from the threatening Red Hordes. That the money will essentially drop down the hole of Ukrainian corruption seems to bother no one in the White House, but the game goes on with Biden saying
“This bipartisan bill sends a clear message to Ukrainians and to our partners and to our allies around the world: America can be trusted, America can be relied upon, and America stands up for freedom. We stand strong for our allies. We never bow down to anyone, and certainly not to Vladimir Putin. So, let’s get on with this….Are [we] going to side with terror and tyranny? Are [we] going to stand with Ukraine, or are [we] going to stand with Putin? Will we stand with America or – or with Trump?”
The president is also currently pumping the line that he is somehow saving or protecting “democracy.” The fact that Ukraine, banning political parties and even religious groups and the Russian language, is no democracy does not seem to impact on the narrative. And don’t forget how the Zelensky government recently murdered American journalist Gonzalo Lira for his exercising freedom of the press!
Biden argues that standing by America’s “allies,” even when they are not actual allies, is essential to maintain confidence in the United States and its leadership mission to create a “rules based international order” and thereby save the world. Beyond Ukraine, there is, of course, America’s “best friend” and “greatest ally” Israel which also is no democracy as Palestinian citizens have limited rights, with those living on the Israeli army occupied West Bank having effectively no protection from being arrested arbitrarily or even shot on sight by rampaging soldiers and settlers, who fear no consequences for killing and robbing Arabs because there are no consequences.
The bombing of Gaza into the stone age continues with hardly any coverage in the mainstream media as if it is an atrocity that will disappear from the collective conscience if no one refers to it in spite of the rows of dead women and children. The US and European media meanwhile blithely report every new “Hamas atrocity” promoted by the habitually lying Israeli Army (IDF) as if it were the truth while Biden is pulling out the stops to provide the cash ($14 billion) and weapons to enable the IDF to kill more Palestinians while at the same time mock-mourning the slaughter of the innocents that is taking place. The ghastly death toll is a direct result of Joe’s lack of any action to force the Israelis to change course, which he has the leverage to do with a phone call to Benjamin Netanyahu threatening to cut off the cash, arms and political support. But the administration has made plain that it has no intention to do anything like that.
But even given all of that excitement last week there is one story that stands out, the video of former Secretary of State and CIA Director Mike Pompeo in Israel grinning and dancing with celebrating Israeli soldiers, who presumably have just returned from Gaza after having had the pleasure of blasting a few more score of civilians, including a large percentage of children.
The Israeli Army’s latest stunt is to position snipers and tanks around the last functioning major medical facility in Rafah district in the south of Gaza, the Nasser Hospital in Khan Younis. The Palestinians trying to survive in Gaza were previously ordered by Israel to go to Rafah where they would be “safe” but it was a self-serving lie and the military then proceeded to bomb and shoot civilians, even when they were trying to surrender, and also destroying infrastructure like hospitals and schools to make the area uninhabitable. The army in Gaza’s snipers have now joined in the fun by shooting doctors and patients inside the building and on the grounds to force Nasser Hospital to evacuate and shut down. They followed up on the shooting gallery by storming the hospital, allegedly in search of “hostages.” It is all part of what is developing as Netanyahu has announced that the ground invasion of Rafah will soon begin even though the encaged Palestinians, who are already starving due to the Israeli blockade of humanitarian aid, have nowhere to go and many more thousands will die one way or another.
As a taste of what is to come that is even more bizarre than what has already transpired, Israel’s “most moral army in the world” has now also gone into the entertainment business. It has begun to invite groups of Israeli civilians into detention centers and prisons that have been holding West Bank Palestinian prisoners as well as detainees from the Gaza Strip. The civilians are able to observe the detainees, stripped to their underwear, and laugh and jeer as the men are being beaten, humiliated and tortured, with many of the viewers also allowed to film what is happening on their own cell phones to share with their friends and families. Mike Pompeo, who is a Christian Zionist of dispensationalist persuasion, believes that the former Palestine belongs to the Israelis because it says so in the Bible, which he has carefully “studied.” He also, while Trump’s Secretary of State, declared that the US no longer regards the illegal Israeli settlements on the West Bank as “illegal” and he similarly approved of the Israeli annexation of the Syrian Golan Heights as perfectly acceptable under international law, which it is not. Wonder what Mike as a self-identified pious Christian thinks about all those dead and mutilated Palestinian babies if he ever chooses to think about it at all?
Also in the running for god-awful narrative of the week was a piece claiming that the successful first step by way of a majority vote in the House of Representatives to bring about the richly deserved impeachment of Department of Homeland Security’s ghastly Secretary Alejandro Mayorkas on Thursday was the result of an “antisemitic conspiracy theory” because he is a “Sephardic Jew,” not due to his own incompetence which he has been demonstrating regularly for the past three years. The deep hole of depression that I crawled into as I watched the fat twerp Pompeo cavorting while the midget Mayorkas touted his Jewish credentials drove me to rethink the whole issue of US foreign and national security policy. I came to the conclusion that the players are caricatures and it should not be taken seriously and should instead be regarded as a comedy routine, something like Monty Python but terribly lethal and without the intelligence and wit of John Cleese, Eric Idle, Michael Palin and Graham Chapman.
To be sure the Biden administration can always be counted upon to produce a laugh, particularly when it brings on the clowns named Anthony Blinken, Victoria Nuland, Karine Jean-Pierre and Jake Sullivan. There has been a lot of funny stuff lately, most particularly the chatter about a solution to the Palestinian genocide, even though Biden seems quite comfortable to let the Israelis finish their ethnic cleansing of Gaza before anyone looks for a place willing acquire two million more stateless and homeless Palestinians. Former presidential aspirant and totally owned Zionist stooge Governor Ron DeSantis of Florida has already declared that no Palestinians should be allowed into the US as refugees as they are “antisemites.”
Nevertheless, Biden and Blinken’s State Department want to come up with some kind of formula, if only because the worldwide blowback due to the White House’s unflinching support for Israeli brutality has begun to have consequences as it constitutes complicity in crimes against humanity. Some kind of limited sovereignty, disarmed for sure, allowed to Palestine is envisioned but Netanyahu and his political allies, long opposed to a two-state solution, have recently repeatedly rejected proposals for any Palestinian sovereign entity. Israel is even now using its formidable lobby and international press/narrative control to work assiduously against any diplomatic recognition of a Palestinian state by individual countries or as a full member at the UN. Not surprisingly, the greatest effort to keep things on track is being directed against voices raised in support of Palestine in the United States. Biden is listening to be sure and is having both Blinken and National Security Adviser Jake Sullivan carefully coordinate every step the administration takes with the Israeli Minister for Strategic Affairs and former ambassador to Washington Ron Dermer. Even though Israel and Netanyahu definitely hold the whip hand, the president is nevertheless inevitably looking over his shoulder and is fearful of alienation of voters with the national election coming up if the carnage in Gaza continues. Not for the first time the endless farce of US internal politics will likely at least somewhat influence what eventually takes place in countries six thousand miles away. And given Biden’s propensity to avoid doing the right thing, one can be pretty sure that the result won’t be pretty!
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http://themostimportantnews.com/archives/all-of-the-elements-are-in-place-for-an-economic-crisis-of-staggering-proportions
All Of The Elements Are In Place For An Economic Crisis Of Staggering Proportions
They were able to delay the U.S. economy’s day of reckoning, but they were not able to put it off indefinitely. During the pandemic, the Federal Reserve pumped trillions of dollars into the financial system and our politicians borrowed and spent trillions of dollars that we did not have. All of that money caused quite a bit of inflation, but it also created a “sugar rush” for the economy. In other words, economic conditions were substantially better than they would have been otherwise. Unfortunately, there will be a great price to be paid for such short-term thinking. From the federal government on down, our entire society is absolutely drowning in debt, and now it appears that our economic problems are about to go to the next level.In early 2024, there are all sorts of signs that economic activity in the U.S. is really starting to slow down.
For example, we just learned that consumer spending “fell sharply” during the month of January…
Consumer spending fell sharply in January, presenting a potential early danger sign for the economy, the Commerce Department reported Thursday.
Advance retail sales declined 0.8% for the month following a downwardly revised 0.4% gain in December, according to the Census Bureau. A decrease had been expected: Economists surveyed by Dow Jones were looking for a drop of 0.3%, in part to make up for seasonal distortions that probably boosted December’s number.
However, the pullback was considerably more than anticipated. Even excluding autos, sales dropped 0.6%, well below the estimate for a 0.2% gain.
Sadly, the truth is that U.S. consumers just don’t have as much money to spend these days.
They are up to their eyeballs in debt, and delinquency rates have been spiking.
Many consumers are tightening up on their finances, and so it shouldn’t be a surprise that Disney+ lost more than a million subscribers during the fourth quarter of last year…
In early 2024, we have also seen large employers ruthlessly slash payrolls all over the nation.
The following summary of some of the most shocking layoffs that we have seen recently comes from Zero Hedge…
1. Twitch: 35% of workforce
2. Roomba: 31% of workforce
3. Hasbro: 20% of workforce
4. LA Times: 20% of workforce
5. Spotify: 17% of workforce
6. Levi’s: 15% of workforce
7. Xerox: 15% of workforce
8. Qualtrics: 14% of workforce
9. Wayfair: 13% of workforce
10. Duolingo: 10% of workforce
11. Washington Post: 10% of workforce
12: Snap: 10% of workforce
13. eBay: 9% of workforce
14. Business Insider: 8% of workforce
15. Paypal: 7% of workforce
16. Okta: 7% of workforce
17. Charles Schwab: 6% of workforce
18. Docusign: 6% of workforce
19: CISCO: 5% of workforce
20. UPS: 2% of workforce
21. Blackrock: 3% of workforce
22. Paramount: 3% of workforce
23. Citigroup: 20,000 employees
24. Pixar: 1,300 employees
During the pandemic we witnessed a lot of temporary layoffs, but the last time we saw large corporations conducting permanent mass layoffs on such a widespread basis was in 2008 and 2009.
And we all remember what happened back then.
Meanwhile, the cost of living continues to rise faster than paychecks.
For example, it is being reported that the cost of auto insurance has been increasing at “the fastest annual rate on record”…
The cost of auto insurance jumped 1.4% in January, bringing the total annual gain to 20.6% – the fastest annual rate on record. When compared with early 2019, motor vehicle insurance is nearly 40% more expensive. Experts say the problem could soon get worse before it begins to improve.
Needless to say, most Americans have not seen their paychecks increase by 20.6 percent over the past year.
Of course just about everything else has been rapidly getting more expensive too, and that isn’t going to change any time soon.
On top of everything else, we are also facing an unprecedented commercial real estate crisis.
Our financial institutions are sitting on mountains of bad commercial real estate loans, and Kevin O’Leary is warning that “thousands more” will fail within the next three to five years…
Regional banks are doomed.
That’s not necessarily a bad thing… if you’re prepared for it.
It’s been almost a year since Silicon Valley Bank (SVB) collapsed in March – the victim of idiotic management. But the sobering reality is the small banking crisis is far from over.
In the next three to five years, thousands more regional institutions will fail. That’s why I don’t have a dime saved or invested in a single one.
Is Kevin O’Leary right about this?
I don’t know.
We will just have to wait and see what happens.
But without a doubt, things certainly do not look good at this moment.
Needless to say, it isn’t just the U.S. that is experiencing economic turbulence these days.
This week, we learned that the Japanese economy has officially entered a recession…
Japan has lost its spot as the world’s third-largest economy to Germany, as the Asian giant unexpectedly slipped into recession.
Once the second-largest economy in the world, Japan reported two consecutive quarters of contraction on Thursday — falling 0.4% on an annualized basis in the fourth quarter after a revised 3.3% contraction in the third quarter. Fourth-quarter GDP sharply missed forecasts for 1.4% growth in a Reuters poll of economists.
The Germans are facing big problems too.
In fact, Germany is being called the “sick man of Europe” right now.
Interestingly, it is at this time that Jeff Bezos has decided to sell off billions of dollars worth of Amazon stock…
Amazon’s billionaire founder Jeff Bezos has sold another $2bn worth of the company’s stock, bringing the total value of shares he has offloaded in the past week to $4bn, according to regulatory filings.
An Amazon filing on Tuesday showed that Bezos, who stepped down as the Seattle-based company’s chief executive in 2021 but remains executive chair, sold 12mn shares for about $2bn between Friday and Monday.
He certainly doesn’t need the cash.
So why is he doing this?
Does he know something that the rest of us do not?
I don’t think so.
Instead, I think that he can see what the rest of us can see.
Stock prices have risen to record highs even as the overall economy is clearly heading into a major downturn.
That makes this the perfect time to sell.
Jeff Bezos didn’t get to where he is by being stupid. He can see what is coming and he is getting out while the getting is still good.
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