Probably the best high level analysis available right now.
If what Douglas Macgregor says is right, that Netanyahu controls the "Hill" and is trying to leverage the US military to once an for all settle scores with surrounding Arab nations, then clearly we're heading strait into troubled waters.
The beginning of the end for privacy!
Will people revolt? Some say they will. Most won't.
How dare China and India interfere with the death wish of Europe?
Authored by Metal Miner via OilPrice.com,
The EU's carbon tax is criticized by China and India, who believe it acts as a new trade barrier and doesn't account for varying developmental phases.
China's steel association and India's commerce minister have both spoken out against the tax, with India suggesting it may implement a domestic equivalent to fund green energy transitions.
Both countries are taking steps to mitigate the potential impacts of the EU tax, including improved emissions reporting in China and a possible challenge to the WTO by India.
Both India and China continue to denigrate the Carbon Border Adjustment Mechanism (CBAM), or “carbon tax” as it has come to be known, proposed by the European Union. Meanwhile, the EU claims the new scheme is integral to its plan to achieve zero emissions across six earmarked industries.
The new tax regime recently moved into what some experts dub the “transition phase.” Starting on October 1, importers of commodities, including steel, into the EU need to report the carbon emissions of those products. Beginning in 2026, those importers will also be subject to fees. The EU aims to impose the new tax on countries with significant carbon emissions. And while the carbon tax’s stated aim is to put EU producers on an even keel with their counterparts elsewhere, it will also add to the cost of steel, aluminum, and other goods.
China has been speaking out against the EU’s carbon tax for some time now. However, several days ago, the country’s state-backed steel association went so far as to dub the tax “a new trade barrier.” Meanwhile, news agency Reuters reported that the China Iron And Steel Association (CISA) wanted more talks with the EU on the issue.
According to the representative body, the new tax fails to take into account the different phases of development in different countries. It went on to say that the levy was against the principle of common but differentiated responsibilities. Indeed, some analysts predict that the carbon tax could raise the cost of steel products costs by anywhere from 4 to 6 %, if not more. This would be sufficient enough to render Chinese exports nonviable.
Like its neighbor, India also disapproves of the new EU tax, claiming that it would hurt its exports. Commerce and Industry Minister Piyush Goyal recently stated that the tax was “ill-conceived,” adding that the EU would realize this in the coming days and have to drop the idea entirely. Already, there have been meetings between the various trade bodies, manufacturers, and the government regarding the tax. As with China, India also pointed out how the CBAM fails to allot different values for different stages of production occurring in separate countries.
The Indian minister also stated that the government would find a solution, most likely a domestic tax equivalent to the European tax. They could then use this new revenue for the green energy transition. He pointed out that this solution would indirectly help Indian companies who export bring down their carbon footprint as they move on to cleaner energy production. Eventually, there would be no need for a CBAM.
While India may be mulling a domestic tax to get around the problem, China continues to hint at imposing similar trade protection measures to safeguard the interests of its own domestic producers. Either way, the new regime will likely usher in a new period of uncertainty, friction, and risks across the sector.
Both countries hope that the EU will re-visit the tax and possibly do away with it entirely. At the very least, they hope the organization will carefully reconsider the costs and operational challenges for downstream consumers due to the change in the import structure. At one point, India even threatened to move the World Trade Organization over the carbon tax.
That said, China’s environment ministry recently directed its large industrial polluters to step up on their emissions reporting. According to Bloomberg, this was to prepare the industry for the carbon tax. To remain compliant, producers across seven sectors, including steel and aluminum, that release over 26,000 tons of CO2 annually have to verify their 2022 data by December this year.
Conversely, India continues to question the logic of pricing carbon at the same level in India as in Europe. However, the government remains hopeful that if they can tax locally and put that revenue toward the green energy transition, they can negate any noncompetitive edge in Indian exports to Europe.
What really happened in 2020 with Corona virus?
The full understanding of this artificial crisis should be a scandal.
Interview of Prof Michel Chossudovsky
Listen carefully. This is important for the future of our society and it has nothing to do with the virus.
In 2020 the lie became the truth and since we have lived in an upside down world.
Difficult to present better our predicament than in the article below.
I believe that we will be at war sometimes in 2024. it is now unavoidable.
The catalyst is unknowable. Who will be our Archduke? Where will be our Sudetenland? Nobody knows. But conversely it is extremely predictable that they will emerge on schedule at the right or rather wrong time. It is unavoidable.
The debt in the US and Europe is about to explode, the dollar to implode and the real estate bubble in China to go pop. Soon enough war will look like a good, or rather less bad option to a lot of people.
Let's hope we still have some time before the cataclysm although the paroxysm of the crisis is now within sight. It is now that a brighter light-bulb in the White House would come handy!
Authored by Egon von Greyerz via GoldSwitzerland.com,
We are on the inevitable road to perdition for the world economy & financial system, ending in a potential global conflict of uncontrollable proportions.
Evil begets evil as The Cycle of Evil hits countries at the end of an uncontrollable debt expansion.
The pattern throughout history has always been the same – countries and empires, without fail, become victims of their own success -failure, whether it was the Mongols, Ottomans or the British.
As real growth ceases, a country starts to finance expansion with debt until it cannot even afford the interest on the debt, never mind the capital which it has no intention to repay.
At some point, the people, fearing a war or terrorist attack will approve of the leader’s fear mongering by supporting unlimited debt issuance. This is now happening in the US with regard to Ukraine and Israel.
Neither the US nor Europe is taking a single step to remedy the situation. Both are now in the Cycle of Evil of more deficits, more debt, higher interest costs, leading to more deficits, more debt higher interest costs, leading to ……………..
The Cycle of Evil is also accompanied by decadence and moral decline where leaders invent problems that are not real such as climate change, ESG (environmental, social and governance), forced vaccines and incarcerations, 25 new genders and other woke issues etc.
Few Americans understand that the next stage of the Cycle of Evil is about to hit them.
And even fewer Europeans have a clue that they will be dragged down into the same debt collapse quagmire.
The next stage will involve many banks failing, more than the FDIC or government can afford to save without destroying both the Currency and the Bond Market,
A collapsing currency and sovereign debt paper that no investor wants to touch with a bargepole is hardly the right climate for massive debt issuance.
Most sovereign investors have already realised that they don’t want US debt at any interest rate.
So that means even higher interest rates, more debt issuance as the Cycle of Evil eventually turns to a “Final Collapse” as von Mises described:
THE CYCLE OF EVIL CONTAINS MORE CATACLYSMIC COMPONENTS THAN ANY SIMILAR CYCLE IN HISTORY.
Let us summarise where the world is:
We have two wars both capable of leading to a major global conflict plus high risk of terrorism and jihads in the West. Just as with most global/world wars, there is no attempt at finding peace solutions.
To make things worse, there is not a single Statesman in the West capable of taking a lead in solving the conflicts.
We have a global debt burden of $330 trillion plus derivatives totalling $1.5-3 quadrillion with debt growing exponentially, especially in the US. This will very soon develop into a debt crisis and collapse of a heavily leveraged Western world plus Japan and China and also emerging markets.
The downturn and eventual collapse in the global economy will lead to poverty, famine and misery for a great number of people in the West and Emerging Markets.
This war started as a local conflict but with a US backed putsch in 2014, throwing out the democratically elected Russian friendly leader, this was the beginning of a war between Russia and the US and not a local war.
The Minsk agreement brokered by Germany and France was supposed to settle the matter but as Merkel recently admitted, the intent was never to create peace but to give enough time for Ukraine to arm with the help of the US.
The US forced Europe to take sides, in spite of Europe’s (especially Germany’s) dependence on Russian energy.
We can blame Russia for invading or we can blame the US for provoking Russia.
Rather than to go into all the arguments who is right and who is wrong, best to accept that we now have a global conflict stemming from the Ukraine situation. The US has a reluctant Europe on its side – a Europe which is militarily and economically weak. Russia has China, Iran, North Korea and a few others, most probably a militarily superior group.
A bankrupt USA just sends more money and weapons but has zero intent to send peacekeepers.
Thus there is no end in sight but the independent reporting tells us that Ukraine is unlikely to have a chance against the superior Russian war machine.
In the meantime an estimated 500,000 troops in total have died plus many more wounded and civilian casualties.
And still no peace attempt.
If the warring country’s leaders led from the front, which has been common in history, they would probably be less inclined to sacrifice more lives including their own.
This region has had ongoing conflicts throughout history. It was insoluble before 1948 and has become even more complex since 1948 when Israel was created.
Again, we have major powers involved with primarily the US and Europe supporting Israel and Iran, Turkey and major parts of the Arab-Muslim world supporting Palestine and also Russia.
The US is sending two aircraft carriers to the Mediterranean to assist Israel. But as a military expert pointed out, these are in modern warfare just two floating bathtubs which can be taken out easily by two missiles from for example Iran.
In this conflict there are also many casualties on both sides plus a massive number of Palestinians being homeless with little food or even medical help.
What makes this conflict even more serious is the major support in the West for the plight of the Palestinians. Massive protests in many countries can easily escalate to serious clashes or even civil war.
In addition, we can be certain that the massive migration from Muslim countries to the West will also contain many militant cells which could easily create havoc in the US and in many European countries.
Both Europe and the US basically has an open border policy for any migrant who wants to enter. But neither continent has the ability to properly take care of the migrants. This will risk both continents to be destabilised with both migrants and the native population not accepting the other side.
It is unlikely that China will abandon its claim that Taiwan rightfully belongs to them.
The US is already busy with two wars, assisting with an array of military equipment plus $100s of billions of financial aid. A third conflict with major US military involvement would be extremely unwelcome to the US government.
But that is exactly the right time to strike from China’s point of view.
China knows of course that seizing Taiwan, is likely to involve major US sanctions leading to reduced or no US imports from China leading to a major fall or collapse of global trade. It is doubtful that Europe or the rest of the world would comply with these sanctions.
It would also lead to freezing of China’s assets in the US of $1.7 trillion, including treasuries of $850 billion offset by US direct investments in China.
But if China seizes Taiwan, they would control 60% of the world’s semiconductor production and more importantly 90% of advanced semiconductors. This would be a very serious blow to US strategic industries including military equipment.
It is intellectually fascinating but humanly depressing to watch how all the pieces fall into place for a global conflict of a magnitude greater than WW1 or WW2.
It is frightening to see how one component after the next falls into place in the Cycle of Evil.
Nobody realised that the shooting of the Archduke of Austria-Hungary Franz Ferdinand in 1914 would be the catalyst for WW1.
Nor did anyone understand that Germany’s invasion of Sudetenland in Czechoslovakia in 1938-9 and of Poland on September 1, 1939 would lead to WW2.
The two major conflicts in Ukraine and Israel-Palestine today with Taiwan looming combined with no attempt of peacemaking plus a likely collapse of the global financial system and world economy is more than enough to create devastation for the world for the next decade or more.
Let us sincerely hope that all these events in the
Cycle of Evil will not develop into global havoc.But even if that were
to be avoided, it is absolutely certain that global risk today is higher than at any time since the 1930s.
Here's a very interesting question: How do you heal a society after a traumatic experience such as war? In a nutshell, you forgive people and move on. It is of course difficult to do but essential if you do not want to get into a vicious cycle of punishment and reprisals.
The examples below concern the US after the Civil war and today but it applies similarly to Israel and Ukraine where in both case accumulated hatred prevents a solution to be found. If people must be punished for their deeds then why should they compromise in the first place? And sure enough they won't. War until the last man standing. Are we really unable to learn as a society?
Authored by Josiah Lippincott via American Greatness,
This week, the left-wing organization Swords into Plowshares began the process of melting down the statue of Robert E. Lee that stood in Charlottesville, Virginia.
The images from the ordeal contain deep spiritual significance. A profound sense of foreboding washed over my heart when I saw the bronze face of the Southern hero, glowing red hot moments before annihilation.
What the Leftists did to the statue of Lee is a vision of what they want to do to the rest of the country. The destruction of a nation’s symbols, the elimination of the reminders of its past, is a key part of the process of the destruction of a nation and its people.
The Left is correct: symbols have power. The destruction of a symbol, too, is an act of power. The statue of Lee that stood outside the University of Virginia and became a cultural war flashpoint during the Unite the Right rally in 2017 was not simply a Southern icon.
The Leftists denouncing America’s Confederate monuments as legacies of racism and slavery are perpetuating a vicious lie. In reality, these statues are symbols of national reunification and of the forgiveness that comes with peace. The Confederate monuments were part of the American mythology that sprang out of the Civil War. That struggle had been, in the account of the post-war generations, a bloody tragedy from which the nation emerged, reunited and refined with new purpose.
The Southern cause might have been unjust but the Southern soldier was still courageous. He was, after all, still an American, still a Christian, still a warrior.
In the figure of Robert E. Lee, the South found the epitome of its strength and a noble symbol of dignity in the face of profound tragedy. The statue of Lee at Charlottesville was dedicated in 1924. Edwin A. Alderman, the President of the University of Virginia, gave the dedication address. That speech is not available online, but an earlier address by Alderman, entitled “The National Spirit” that he gave in 1911 on the occasion of George Washington’s birthday to the Washington Association of New Jersey, is public. There Alderman articulates the post-war consensus, North and South, regarding the memory of the war.
The speech is worth reading in full, but I will dwell only on a few of the most relevant passages. Alderman begins by honoring the three great Americans he sees as symbols of the nation’s greatness: George Washington, Robert E. Lee, and Abraham Lincoln. He argues that these three men give the same “distinction” to America as Pericles and Leonidas gave to Greece. He explains that “one day” the “whole people, north and south and east and west” will see them as, “superlatively great men, great moral fires burning on the level plain of our existence, giving light and warmth to our national conscience and to our national ideals.”
Alderman honors Washington as an “incarnation of the very genius of integrity,” Lincoln as the “soul of democracy,” and Lee as the epitome of “duty and unselfish love and stainlessness of life.”
Alderman, a Southerner, reforges the sectional heroes of North and South as heroes of the whole, now re-united, nation. Lee is not, in Alderman’s account, a traitor and racist who needed to be punished but a hero of the nation and a patriot. Alderman can praise Lee as a national hero because, for him, the war was over. The South had been reintegrated into the Union. Part of that national reunification required the intentional assimilation of the South’s symbols into the nation’s collective consciousness. A new and cohesive national mythology was needed to justify and explain the nation’s reborn unity.
Alderman explicitly connects his monumental history of Lee to this national reunification and peace:
“…in this hour of reunion, reconciliation, of absolute forgetfulness of old strife, we can all see how, in those five quiet years at Lexington, [Lee] symbolized and marked out the future for every Southern man as it has come to pass and bade us live in liberal and lofty fashion, with hearts unspoiled by hate and eyes clear to see the needs of a new and mightier day in a new and mightier land.”
Alderman connects peace and the honor given to Lee as part of the “absolute forgetfulness of old strife.” This is a crucial point: peace requires forgetting. A war can only truly end with amnesty. The word “amnesty” shares a root, in the Greek, with “amnesia” or forgetting. To have peace and forgiveness we must literally provide an “amnesty” or a “forgetting” to our enemies. The same linguistic phenomenon in found in Latin. The Latin word meaning “to pardon”—ignoscere—literally means “to not know.”
War unleashes titanic human passions. Left to itself, every war by nature is a total war of annihilation.
Every act of violence within a war is itself the source of new recriminations and new violence. Without a peace treaty and the forgetting that comes with it, every war would go on forever or until one side completely annihilated the other.
A peace treaty bounds the terror and horror of war. The amnesty that comes with it, however, cannot bring true justice. In ordinary human life, every murderer must face judgment. Not so in a war bracketed by a peace treaty. To have peace, the victor chooses not to hunt down every enemy soldier and bring him to justice for killing the victor’s own troops.
If the victor were to choose the path of supposedly perfect justice then the peace treaty would be meaningless: the war and violence would continue until every last enemy soldier had been killed or punished. There is little incentive for the enemy to surrender in a total war; therefore, the conflict cannot end before extermination.
In order for there to be peace without annihilation, human beings must abandon a commitment to perfect justice. They must accept the tragic dimension to life. In this world we cannot have complete satisfaction. Whether we like it or not, we are beings bounded by mortality and by our own fundamental neediness.
The political utopian, however, refuses to accept reality. He cannot reconcile himself to the tragic dimension of life. A perfect world is possible if only we can rid ourselves of the manifestations of True Evil that hold back the springing forth of True Righteousness and Goodness.
Liberalism and communism, the twin revolutionary Leftist ideologies of the 20th century, are examples of this kind of political utopianism.
The destruction of the Lee monument reveals these movements’ insane moralism.
For the Leftist, communist and liberal alike, the symbols of our national reconciliation after the Civil War must be destroyed and our national reconciliation must be undone because the grounds of that peace were racist. The conclusion of the Civil War was not perfectly just. The South was still a bastion of intolerance and hatred. The Leftist condemns the North, too, for its willingness to reunite with vicious white supremacist demons.
The Civil War is not a tragedy in the liberal account but a morality play about the Oppressed fighting back against the Oppressors. The conflict is rich in theological significance for the liberal. In July of 2021, Nikuyah Walker, the first Black female mayor of Charlottesville argued that, “Taking down [the Lee] statue is one small step closer to the goal of helping Charlottesville, Virginia, and America, grapple with the sin of being willing to destroy Black people for economic gain.”
Liberals today are not relativists—far from it! They are in fact moral extremists willing to impose their beliefs by violence and cultural genocide if necessary. In their view, America is a land that has not yet grappled with its “sin” of racism. The revolutionary Left is here to bring about that moral reckoning.
There is no promise of forgiveness or mercy for the liberal, either. Reconstruction was not enough for the South just as de-Nazification was not enough for Germany. It can never be enough. The only way to deal with racists, Nazis, and deplorables, in the end, is to wipe them out.
This is why the Left, every time it comes into power in a country—be it the Soviets in Russia, the Khmer Rouge in Cambodia, or the Red Guard in China—sets out on a campaign of exterminationist violence. In the Leftist mind, dedication to true justice requires the willingness to annihilate its enemies. In the communist account of the world, as in the liberal, there is an enemy (the capitalist/racist colonizer) who oppresses the downtrodden (the proletariat/non-Whites).
The solution to the problem is always the same: get rid of the oppressor.
By destroying the symbols of our national reconciliation the Left is symbolizing its willingness to restart the Civil War; it is throwing out the older peace and rejecting the forgetting that made it possible. I predict that, unless some great act of human prudence or fortune intervenes, the Left will perpetrate in the 21st century acts of violence and repression in America on the same scale as it carried them out in Europe and Asia in the 20th.
These last few years have already witnessed an attempt to turn the whole planet into an open-air prison camp in the name of medical science and “health.” That was not the end of the ideological insanity in our time but the beginning. The 21st century planetary Leftist consensus will find new outlets for its life-hating resentment. We can be sure of that. As our leaders become more delusional and ideological we can expect their appetite for violence and punishment to increase.
The forces of barbarism and a return to the crushing tyranny of the lowest common denominator of human life are growing in power. We cannot ignore this reality. The time may soon be coming when the defenders of the West must beat their plowshares back into swords.
We may pray that it will not come to this, but the revolutionaries have already ripped up the old foundations of peace and promise a new birth of war. The darkened eyes of the bronze hero stare at us from across the void, symbolizing the closing of the old order and foretelling a new crisis.
Do not look away.
Are electric vehicles the symbol of all what is wrong with our society?
A false solution to a false problem?
The Problem: Are temperatures rising? Yes they are, slightly. They have been rising about 1.5 C since 1880 which is nothing exceptional since at that time temperatures were historically low. Will they keep rising? Probably since we are still below the peaks of the Middle Age optimum and earlier, the Roman optimum.
To believe we have a problem, you have to make the assumption, as the IPCC does, that the rate of growth will increase substantially. But the fact is that these are only projections based on models which represent reality poorly. We simple do not know.
The solution: Electric Vehicles which are supposed to produce less CO2 and therefore less warming. But do they?
They are cleaner, that's for sure and therefore a good urban solution if you care about clean air but do they really reduce the amount of CO2 produced? It depends how you calculate. Electricity is not a primary energy and therefore its CO2 cost depends very much on how you produce it without forgetting that there is a significant loss just to produce the electricity.
And then of course there is the issue of batteries, full of expensive metals and minerals and then again, isn't it wasteful to transport hundreds of kilograms of batteries wherever you go?
So in the end, if you produce your electricity with gas, or worse coal, you are probably contributing nothing for the planet. What we are left with is the feel good factor!
And then we have the other concerns related to EV: Range anxiety, batteries burning easily, lack of electric stations, time to charge...
In the end, it may be that for many people EV are not an ideal solution to put it mildly. And if that's the case, we will probably see the growth rate of EV production plateau sooner than expected.
In the end, it is likely that in urban areas, EV will slowly become ubiquitous. But in the countryside, it is difficult to imagine that they can compete with older gas powered automobiles. As for transportation, forget about it. Short of a revolution concerning the batteries, a real competitive electric truck is a fanciful proposition, just as an electric plane. The density of energy in batteries is just not enough.
Authored by Tom Ozimek via The Epoch Times (emphasis ours),
Stephen Moore, senior economist at FreedomWorks and once a senior economic adviser to former President Donald Trump, has issued a grim prediction about America's electric vehicle (EV) market, saying EVs are poised to be automakers' "next big flop."
Mr. Moore's grim prediction for the EV market came in an interview on Fox News's "Varney & Co." program on Oct. 30 and an op-ed in The Daily Caller on Oct. 29, in which the economist compared the current EV push to the failed rollout of the Ford Edsel.
"One of the textbook marketing flops of all time was the Ford Edsel sedan, which was heralded as the hot new car in the late 1950s," he wrote in the op-ed.
At the time of the Edsel launch, automotive experts widely expressed the view that the sedan—named after Henry Ford's son—would be a sure thing. However, instead of sales in the hundreds of thousands, as experts generally predicted at the time, the Edsel sold a paltry 10,000 or so units and was discontinued.
A key factor behind the Edsel's flop is, according to Mr. Moore, that the car was pushed on a public that didn't want it.
"The obvious lesson for the industry: you can’t bribe Americans to buy cars they don’t want. Given the all-in approach mentality for EVs at Ford and GM, it’s clear that Detroit never got this message," he wrote.
Even though the Biden administration has been pushing EVs on the public, including an offer of a $7,500 subsidy, less than 10 percent of all new car sales over the past two years were electric, according to a study published in early September by GOBankingRates.
More recently, executives at General Motors, Ford, and Mercedes-Benz conceded that there's weakening demand for EVs, with some announcing they would pull back on their own EV targets.
Mr. Moore says that waning EV demand is a possible signal that, aside from a relatively small fraction of early adopters of new technologies, buyers on the whole are simply not that interested.
"The Edsel was one of the great flops of all time," Mr. Moore told Fox News in an interview. "I'm here to tell you, if these trends continue, we're going to see the EV market become the next big flop because car buyers don't want them."
Market research firm Canalys estimates that global sales of EVs rose 49 percent in the first half of this year, down from last year's 63 percent pace of growth.
Speaking at an auto show in Japan last week, Toyota chairman and former CEO Akio Toyoda told reporters that waning EV demand is a sign that people are waking up to the reality that EVs aren't the silver bullet against the supposed ills of carbon emissions they're often made out to be.
"People are finally seeing reality" about EV technology, Mr. Toyoda told reporters ahead of the Japan Mobility Show in Tokyo last week, speaking in his capacity as the head of the Japan Automobile Manufacturers Association, the organizer of the event.
Mr. Toyoda has been a long-time skeptic of a full-steam-ahead adoption of EVs. He stepped down from his role as CEO of Toyota this year amid criticism that he wasn't serious enough about pushing the company into a quick adoption of battery-powered cars.
Mr. Toyoda's response to journalists who asked for his thoughts about falling EV demand, suggests he feels vindicated in his reluctance.
"There are many ways to climb the mountain that is achieving carbon neutrality," he said while implying that consumers are finally waking up from a dreamscape pushed by climate change alarmists that puts EVs on a pedestal and overhypes their benefits while downplaying their drawbacks.
His remarks came as demand growth for EVs in various markets has slowed, leading some companies to dial back their electrification plans.
Honda and General Motors announced last week that they were scrapping a $5 billion plan to develop EVs together, while GM saidg that it was slowing its electrification strategy.
GM is "moderating the acceleration of EV production to protect our pricing, adjust to slower near-term growth in demand and implement engineering changes that will bolster profits," GM Chief Financial Officer Paul Jacobson said during an Oct. 24 earnings call with reporters in which he revealed that the weeks-long strike by unionized auto workers had already cost the company $800 million and counting.
Ford said earlier this month that it would temporarily cut one of three shifts at a plant that builds its electric F-150 Lightning pickup truck after slowing its EV ramp-up in July.
More recently, Ford CEO Jim Farley said in an earnings call with investors last week that the situation with EVs has been "challenging."
"Matter of fact, our business is never short of challenges, especially right now with the evolution of the EV market and new global competitors from China, as well as the technology disruptions," he said. "A great product is not enough in the EV business anymore," he said, adding that "we have to be totally competitive on cost" because "affordability is an issue" for consumers.
As a result, Ford has suspended $12 billion in EV spending on manufacturing capacity.
"Given the dynamic EV environment, we are being judicious about our production and adjusting future capacity to better match market demand," said Ford CFO John Lawler on Thursday.
"All told, we have pushed about $12 billion of EV spend, which includes capex, direct investment, and expense," he added.
While Mr. Toyoda argued at the Japan auto show that people were becoming more clear-eyed about the drawbacks of EVs, the current Toyota CEO and president, Koji Sato, talked up their benefits.
Mr. Sato spoke at an Oct. 25 press briefing at the Japan Mobility Show, kicking off his presentation by hyping up EVs.
"The first story is our future life with battery EVs," he said, according to a transcript of his remarks. "They are not only eco-friendly. Electric cars also offer their own flavor of driving fun and automotive seasoning."
He talked up other apparent benefits of EVs, namely lower center of gravity and a more spacious interior, calling it "value that only battery EVs can offer."
"In these cars, the scenery looks completely different," he said.
But while lower center of gravity and more roomy interiors will likely be welcome by some drivers, unless automakers can figure out how to overcome "range anxiety," they may find EV adoption will wane further.
A major worry among Americans considering the wisdom of switching to an EV is range anxiety, which is the fear of driving an EV and running out of power without being able to find a charging port—and ending up stranded on the side of the road.
A recent study by the American Automobile Association (AAA) found that EV range can fall by up to a quarter when the vehicle is carrying heavy loads.
“Range anxiety remains a top reason consumers are hesitant to switch from gasoline-powered vehicles to EVs,” Adrienne Woodland, spokesperson for AAA, said in a statement.
Another recent study by consultancy Ernst & Young—in collaboration with European energy industry body Eurelectric—found that range anxiety is the second-most cited concern about switching to an EV, with a lack of public charging stations in the top spot.
The study points to an estimated need for 68.9 million chargers across the United States and Canada by 2035 to support the pace of the EV transformation.
President Joe Biden has set a goal of 50 percent of all new vehicles by 2030 being either EVs or plug-in hybrids.
Jack Phillips contributed to this report.
Japan will crash eventually. The only question is when!
Left on their own, the Japanese would probably manage to degrow for a long time as they did following the bursting of their real estate bubble in the 1990s. But this cannot happen this time because the Japanese economy is too closely integrated to the global supply chain so soon enough the pressure will become overwhelming.
This is the main reason why we can't have a recession these days. It would just collapse the immense castle of cards we have built. It is just a matter of time.
Japan is in the midst of a slow-motion train wreck. The country has a massive national debt and it is starting to feel the pressure of rising interest rates. In his podcast, Peter Schiff talked about the situation in Japan and pointed out some disturbing parallels to what’s happening in the US.
The Japanese yen against the dollar has fallen to the lowest level in more than 20 years. The yen is tanking because of the ongoing money creation program by the Japanese central bank. It is still running quantitative easing in order to support its bond market.
The national debt in Japan is around $9 trillion. That is well over 200% of the country’s GDP. Interest payments on the debt make up about a quarter of the country’s government expenditures. But that’s with extremely low bond yields. If yields were to increase to 4%, the debt payment would grow larger than the current expenditures for the entire government. Peter called it a “slow-motion train wreck.”
Obviously, this is a disaster not just waiting to happen, but it is guaranteed to happen.”
The Japanese central bank carefully controls bond yields. It is currently targeted at 100 basis points. While still a low yield in the big scheme of things, it is high for Japanese bonds. Peter said the problem is that 100 basis points aren’t going to work any better than 50.
Nobody in their right mind is going to lend the Japanese government money for 10 years for 1% when inflation is already 3% based on the way they measure. it.”
Ironically, the Japanese government and central bank view this higher inflation as a victory over “too low” inflation.
They’ve already lost. They’re not victorious over anything. Because, remember, low inflation was never the problem that Japan had. They had problems, but low inflation wasn’t one of them. But now they have a high inflation problem. This is a real problem, especially when you have as much debt as the Japanese government does, and the market is starting to adjust because interest payments are going to skyrocket.”
The Japanese central bank is in a predicament because if it stops buying bonds, yields will spike even more. That means the Japanese government either has to raise taxes or cut spending, or the central bank just has to keep printing money and buying bonds.
It becomes a self-perpetuating spiral because the more bonds the Bank of Japan buys to keep rates from going up, the more upward pressure is on rates because they have to create inflation and drive down the value of the yen in order to prop up the price of these bonds and keep the interest expense artificially low for the government.”
The Bank of Japan currently owns about 45% of the country’s outstanding debt. That’s about double the percentage of US national debt the Federal Reserve owns.
Imagine what would happen if the Bank of Japan switched to quantitative tightening and tried to shrink its balance sheet.
And yet people still think the US can get away with a massive national debt because Japan has. As Peter said in a previous podcast, the US is more like Argentina than Japan.
There are other things that enabled Japan to get away with this much debt for as long as it has. But they didn’t get away with it in the sense that they’re not going to have to suffer the consequences. They’re going to suffer the consequences. They’re just going to be worse, but they’re going to be felt later.”
But in one sense, the US is similar to Japan. Its national debt is also a ticking time bomb. America is also buried in debt and it’s about to see its own interest payments go through the roof.
In the 1990s, then-Treasury Secretary Robert Rubin began borrowing using low-interest, short-term debt. Since interest rates were artificially low, this lowered the federal government’s interest payments even further. It was a short-sighted policy that worked as long as rates remained low. But rates aren’t low anymore. Over the next three years, 50% of the debt matures. It will have to be refinanced at much higher interest rates. That means Uncle Sam’s interest payments are poised to go through the roof.
Syria is the next key to the expanding conflict in the Middle East.
If Syria falls, the US can maintain its hegemony a little longer.
If not, we enter a multi-polar world.
A catchy tittle but in fact just a translation of the previous video without the jargon. In other words: AGI is here!
