Now that President Obama is on another Hawaiian vacation, he must think his work as ‘job creator’ is finished. He was, after all, the one who said that he ‘will not rest’ until everyone in America has a job.
Todd, Walter, and the others at the Davis Highway I-10 overpass don’t believe his job is done.
The first step in real job creation begins when Obama loses his.
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The US economy grew at a slower rate than initially thought in the third quarter after personal spending was less than expected. Consumer confidence is right where Obama wants it. In the toilet.
What this means to liberals is the government must take more money from the private sector and give it to someone (including campaign contributors) who did not earn it so they can spend it instead. Being tied to this social justice (Socialist) narrative like they are, there simply is no place in Obamanomics for economic growth to occur in the private sector.
“For years now, Republicans have been telling us that tax cuts pay for themselves. ”
When the taxes are on income and investment, they do. When they are on funding entitlement programs, which produce nothing, they don’t.
The percent figure that the Bureau of Labor Statistics put out yesterday is not what it appears to be.
The administration goes through some machinations of the number of people out of work to make the unemployment percent seem to go down. They no longer count, like they no longer exist, those people out of work who gave up looking, the underemployed, and those whose 99 weeks of unemployment compensation has run out. When you count them as still alive, the unemployment rate is 15.6 percent.
When you don’t count the them, you cut (on paper) the number of people in the job pool. That is how the administration and their media followers can say the percentage dropped .4% from 9 to 8.6 and yet make it sound like things are getting better. When they are not.
“When the unemployment rate declines, we want to see both employment and participation increase as discouraged workers return to the labor force. Today, we got the former, but not the latter, making the 0.4 percent drop look a bit suspect,” Neil Dutta, US economist at Bank of America Merrill Lynch, told clients. “We would not be surprised to see the unemployment rate give back some of its decline in the coming month(s).”
Considering that nearly half of the jobs created were for the Christmas retail season, expect them to go away in January.
This smoke and mirrors scheme was explained last August in this post.
Speaking of the government stimulus spending and green jobs. The Obama administration picked Southeast Michigan as one of 20 regions from around the country for economic growth grant money. The goal is to create an economic cluster of so-called clean technology manufacturing that is expected to generate jobs, business and exports for the region. Emphasis on jobs, business, and exports for the region.
News of the transaction is also noteworthy. You have the headline-grabbing union-busting Huffington Post putting a happy face on the deal. But when you follow the link to the story, you’ll see evidence that this is yet another waste of taxpayer money in the name of green jobs. Apparently, the thieves at the Huffington post don’t even read the stories they steal, let alone give credit to Jaclyn Trop, the writer of the story.
In reading the story, the economic growth stimulus money will be used in the Southeast Michigan Advanced Energy Storage Systems Initiative. Batteries. Great idea when you consider that Michigan is home to more than 35 advanced battery companies and suppliers for battery systems and electric vehicles, more than any other state, according to the Michigan Economic Development Corp.
Sounds like a good investment of taxpayer money. Except for the fact that, once again, markets exist when there is demand for a product. Lacking demand, there is no market, no business. According to the article, this is a product that nobody wants. What is the point of boosting manufacturing of a product that is already over supplied and without market demand sufficient to stay in business and effectively compete with China?
Michigan has given solar and lithium-ion battery manufacturers tens of millions of dollar in state tax incentives in recent years, but both industries are building more products than there is demand for, according to industry reports.
OK, that was the ‘good’ news. The bad news is . . .
The worldwide manufacturing capacity of lithium-ion batteries for electric vehicles will greatly exceed supply unless demand by automakers increases significantly in the short run, according to a September report by Bloomberg New Energy Finance.
and
Energy Conversion Devices Inc., the Auburn Hills maker of solar panels and lithium-ion batteries, has been trying to sell its battery operation. And its losses grow since demand for solar panels in Europe has dried up and Chinese companies have offered lower-priced alternatives.
Given the circumstances in the marketplace, I’m not anticipating this government spending will have a different result than Solyndra. Meanwhile, keep a sharp eye out for all the new jobs, business, and exports for Southeast Michigan.
To say that there is no green in the so-called green energy sector is indicative of why that is. It is not because people don’t want a low-cost, in terms of dollars and efficiency, solution to their energy needs. It is because there is no practical market for it yet. Not for Solyndra. Not for BrightSource Energy either.
If Solyndra’s bankruptcy was not a sign of no market in this industry, all you have to do is to look at BrightSource Energy’s registration statement for going public. In their own words, without government money, they can not survive.
We depend heavily on government policies that support renewable energy and enhance the economic feasibility of developing solar energy projects.
They can’t even say that what they want to do can even be done.
Our proprietary technology has a limited history and may perform below expectations when implemented on utility-scale projects.
We use proprietary technology that has not been previously implemented on utility-scale projects of the size and complexity of the Ivanpah Solar Electric Generating System, or Ivanpah, and Ivanpah may experience technological problems that neither we nor any of the third-party independent engineers that have reviewed our projects are able to foresee. The systems that we will implement on utility-scale projects include a solar field with heliostats controlled by advanced software systems that concentrate sunlight onto a receiver to produce high-temperature steam. If the implementation of our proprietary technology is unsuccessful, it could negatively impact the successful operation of projects using our systems and may result in additional payments, deductions or defaults under key project documents, including our PPAs or other financing arrangements.
The company’s registration statement is as dismal as anyone could imagine. Scaring away any private-sector investor with no expectation of a government bailout. Except for Robert F. Kennedy, Jr’s. venture capital company, VantagePoint Partners, the largest investor in BrightSource Energy. BrightSource received a $1.4 Billion loan guarantee from Obama’s Department of Energy.
The lesson to learn is that just because it sounds like a good idea, doesn’t make it worth throwing good money after bad. Regardless of the size of political contributions made to the administration. That, and government can not create a market because it wants to. Markets are created when companies make something they can sell at a profit that customers want.
Contrary to what Obama may think, he is not creating jobs in this country (China, yes) by gambling with the taxpayers money on green energy. With every dollar Obama removes from the private sector, he is killing them.
With his regulations and drilling moratorium, and pipeline rejection, he is killing even more jobs. Kind of makes you wonder about President Obama’s priority. Is it jobs in a free-market economy or jobs in a government controlled economy?
Peter Schweizer disclosed this “green” boondoggle in his new book, Throw Them All Out. Big Government has the story.
It has to do with a “green energy” company called BrightSource Energy Inc., which develops solar energy products (or intends to someday, anyway). In 2010, BrightSource was in deep trouble. It was $1.8 billion in debt and was losing money hand over fist–a $71.6 million loss on a mere $13.5 million in revenue. A company destined to go down the drain, one would think. But no! The Obama administration bailed out BrightSource to the tune of a cool $1.4 billion in loan guarantees.
How could that possibly have happened? Well, start with the fact that the principal investor in BrightSource is VantagePoint Partners. Robert F. Kennedy, Jr. is a Venture Partner in VantagePoint. But BrightSource had an even more valuable contact than that:
Sanjay Wagle…was one of the principals in Kennedy’s firm who raised money for Barack Obama’s 2008 presidential campaign. When Obama won the White House, Wagle was installed at the Department of Energy (DOE), advising on energy grants.
Well, that was convenient! So BrightSource got its $1.4 billion. BrightSource isn’t out of business yet, but how promising was the Obama administration’s investment? Check out the registration statement for the company’s IPO. This is from the discussion of risk factors:
This offering involves a high degree of risk. … We have generated substantial net losses and negative operating cash flows since our inception and expect to continue to do so for the foreseeable future as part of the development and construction of solar thermal energy projects using our systems.
We have generated substantial net losses and negative cash flows from operating activities since we commenced operations. We have incurred losses of approximately $204.1 million from our inception through March 31, 2011. For the year ended December 31, 2010 and three months ended March 31, 2011, we incurred a net loss of $71.6 million and $26.8 million, respectively, and our operating activities used cash of $64.1 million and $28.8 million, respectively.
We expect that our net losses and our negative operating cash flows will continue for the foreseeable future, as we increase our development activities and construct solar thermal energy projects. …
Our proprietary technology has a limited history and may perform below expectations when implemented on utility-scale projects.
We use proprietary technology that has not been previously implemented on utility-scale projects of the size and complexity of the Ivanpah Solar Electric Generating System, or Ivanpah, and Ivanpah may experience technological problems that neither we nor any of the third-party independent engineers that have reviewed our projects are able to foresee. The systems that we will implement on utility-scale projects include a solar field with heliostats controlled by advanced software systems that concentrate sunlight onto a receiver to produce high-temperature steam. If the implementation of our proprietary technology is unsuccessful, it could negatively impact the successful operation of projects using our systems and may result in additional payments, deductions or defaults under key project documents, including our PPAs or other financing arrangements.
Ivanpah is being primarily financed by a U.S. Department of Energy, or DOE, guaranteed loan facility, which requires the project companies to remain in compliance with numerous financial, construction and operational covenants to draw funds under the loan facility, compliance with which are within the control of NRG Solar, the majority equity owner and operator of Ivanpah….
Furthermore, adoption of our systems for use in solar-to-steam applications, such as thermal EOR, depends on successful implementation of the 29 MWth EOR project for Chevron in Coalinga, California that is expected to begin operations in the second half of 2011. We have recently experienced significant cost overruns related to the project. If the Coalinga Solar-to-Steam for EOR project does not meet expectations, our ability to sell additional thermal EOR systems may be negatively impacted.
How on Earth does a company like this survive for 15 minutes? Crony capitalism. This risk disclosure conveys a sense of how deep the rot runs:
We depend heavily on government policies that support renewable energy and enhance the economic feasibility of developing solar energy projects. Renewable energy sources currently benefit from various federal, state and local governmental incentives such as investment tax credits, or ITCs, cash grants in lieu of ITCs, loan guarantees, renewables portfolio standard programs, or RPS programs, modified accelerated cost-recovery system of depreciation and bonus depreciation. For example, the Internal Revenue Code of 1986, as amended, or the Code, provides an ITC of 30% of the cost-basis of an eligible resource, including solar thermal energy projects placed in service prior to the end of 2016. Additionally, many states have adopted RPS programs mandating that a specified percentage of electricity sales come from eligible sources of renewable energy.
Companies like BrightSource can survive only as long as governments continue to pursue foolish “green energy” policies. If the voters ever wise up, they are finished:
However, the regulations that govern the RPS programs, including pricing incentives for renewable energy, or reasonableness guidelines for pricing that increase valuation above conventional power (such as a projected value for carbon reduction), may change. If the RPS requirements are reduced or eliminated, we could sustain fewer future power contracts or receive lower prices for the sale of power in future power contracts, which could have a material adverse effect on us and our project development plans. Such material adverse effects may result from decreased revenues, reduced economic returns on certain project company investments, increased financing costs, and/or difficulty obtaining financing. Furthermore, the American Recovery and Reinvestment Act of 2009, or ARRA, included over $80 billion in incentives to encourage investment in the renewable energy sector, such as cash grants in lieu of ITCs, bonus depreciation and expansion of the DOE loan guarantee program. Although the ARRA expanded the DOE loan guarantee program, this program faces challenges and may not continue past the projects already financed such as Ivanpah. In addition, the cash grant in lieu of ITCs program only applies to projects that commence construction prior to December 31, 2011.
Notice how the stimulus act makes an appearance. BrightSource isn’t a scandal like Solyndra yet, but give it time.
Posted on November 16, 2011 by John Hinderaker in Energy Policy, Obama Administration Scandals
The above was graciously lifted from John Hinderaker at PowerLine Blog.
The firm is called Vantage Point Capital Partners. And Bobby, as he is known on the Ring of Fire talk radio show, is one of the ‘venture partners‘ in Vantage Point. Vantage Point not only creates jobs in China, they have an office in Beijing.
Now I know that you rich republicans out there are always looking for a quick way to make a buck. Did you miss this? I don’t know how I missed this one. BrightSource, a California solar panel company (that is creating jobs in China and Germany).
Check this for a smart investment. And imagine, God forbid, if taxpayer money were put into a company like this?
In 2010, BrightSource was in deep trouble. It was $1.8 billion in debt and was losing money hand over fist–a $71.6 million loss on a mere $13.5 million in revenue. A company destined to go down the drain, one would think. But no! The Obama administration bailed out BrightSource to the tune of a cool $1.4 billion in loan guarantees.
With as poor an investment picture as you could possibly imagine, can you imagine the excitement at Vantage Point when they learned that the Department Of Energy was going to give them a $1.4 Billion loan guarantee? A loan guarantee?
Taking a gamble that no investor would take, Obama’s energy department rolls the dice in a game that you would not play. What, $1.4 billion and no “thank you” from Bobby?
And for a real eye-opener from, or about, this most open and transparent administration, look how contributors become government employees or get their company bailed out, or both. You might be surprised to also see the presence of many of the Soros-backed organizations in the company and in the administration.
As the Church Lady would say, Isn’t that special?
Links:
The media and the Democratics1 will have you believe that the balanced budget amendment that failed the House today was the only, if not last, hope for fiscal sanity. When the opposite is true.
Fiscal sanity prevailed by not passing this bill.
The government does not have an income problem. It has a spending problem. And the only problem with income is that it just can’t keep up with the $15 trillion in debt that Washington continues to pile on. Enter the bogus ‘balanced budget’ amendment.
This amendment has no limit on spending. It is a Liberal’s wet dream. Under this amendment, when spending increases beyond the income, then tax increases would ‘by law’ have to happen to cover (if only on paper) the deficit. That’s because the constitution says the budget has to balance. This amendment is an economy killer. Period.
A balanced budget amendment has to be one that limits spending in some way. For example, spend all you want up to 18% of GDP. If you spend more than that, you’ve spent too much and need to cut back THE SPENDING, not increase THE TAXES. A bill that would pass the House must be spending-priority instead of tax-priority.
Revenue surpluses (remember them) and operating under a balanced budget that pays down the debt will not kill the economy. Taxing too much and ballooning the debt will, and is.
Link: Balanced Budget Amendment Fails in House
1Democratics is synonymous with the old word Democrats. Democrats seem to be annoyed when their party is called the Democrat Party. 🙄 It just follows that members of the Democratic Party are democratics and democrats are members of the Democrat Party.
The Americans for Fair Taxation (AFFT) issued this press release (below). Aside from the economic stimulus that the FairTax would provide all on its own, without special government subsidies or more deficit spending, the revenue stream coming into the federal government is more stable than under the current abortion of the IRS tax code.
The IRS depends on your payroll taxes to fund the federal government. The more people find themselves out of work, the tax base shrinks further, the less revenue the government gets and the more debt the government acquires, adding to the burden of current and future generations of Americans.
By contrast, when all the federal tax categories you pay are eliminated and replaced with the progressive consumption-based FairTax, that revenue stream to the federal government is not exclusively tied to employment. The result is the largest tax base humanly possible and a more stable income stream.
When you hear, like you may have heard yesterday, that consumer spending increased ‘more than expected’ (by a laughable one half of one percent) you should also understand that it translates to increased revenue to the federal government. When the tax burden is spread out over everyone instead of to only those who are lucky enough to still have a job, we reach the fairness that the administration claims they want without penalizing the people who have the ability to create jobs.
Special note to FairTax supporters in the Florida Panhandle. I have a quantity of 4ft. by 8ft. FairTax signs that are FREE to anyone who has a good location (high-traffic area) to display them. Let me know if you want one. This is what it looks like.
FOR IMMEDIATE RELEASE
Contact: James Lafferty
(703) 931-‐2324
jameslafferty@usa.net
Americans Frustrated Watching Tax Policymakers Play “Ground Hog Day”
Washington, DC – Americans for Fair Taxation (AFFT) released today revenue
estimates that the FairTax, a national sales tax, would have collected far more
federal revenue in 2009 and 2010 than the current income tax based system.
The estimates demonstrate that FairTax-generated revenues for 2009 would have been $171 billion more than the IRS revenue and in 2010; the FairTax would have generated $267 billion more.
AFFT provided the data to the Joint Select Committee on Deficit Reduction or
Super Committee recently and is releasing it to the public today.
“ Watching Washington tax policymakers churn a few well-worn and ineffective
ideas to come up with the same disappointing results is like watching the movie
‘Ground Hog Day’, except this is real life not a movie” said AFFT Chairman and
Co-Founder Leo E. Linbeck, Jr.
“No wonder the American people are so frustrated! Some in Washington want to
adjust and tinker with the current sclerotic system but working Americans are
ready to throttle it and them and start fresh. The time for reform is over. We need to be seeking replacement.
“The FairTax is a hybrid within the range of consumption tax alternatives— more
transparent, simpler and it returns the power to determine how much tax is paid to the American people.
“We believe it addresses the nearly $1.5 trillion in deficit reduction the
congressional deficit committee is charged with making, and responds to the nearly $4 trillion in cuts offered by Democrats and other partisan issues.
The FairTax projections are based on a 23 percent tax inclusive rate of taxation as proscribed in the Fair Tax legislation (HR 25/S 13).
The estimates were provided by David Tuerck, Chairman of the Economics
Department and Executive Director of the Beacon Hill Institute at Suffolk
University in Boston.
“Because revenues from a consumption tax are always more stable over the
business cycle than revenues from an income tax, it stands to reason that the
FairTax would have reduced the deficit in recent years, had it been in place,” said
Tuerck.
Formed in 1995, AFFT is a nonprofit, nonpartisan, grassroots organization
dedicated to replacing the current tax system with a progressive national retail
sales tax.
(For a copy of the FairTax data go to www.fairtax.org or call 703-931-2324)