Obama Fights “Climate Change” With His Cronies and Your Billions

Monday, April 4, 2016

It looks like Spain’s largest corporate failure may not fail at all if its crony benefactors have anything to do about it. In fact, government talking heads have alluded to the fact that the company is “too innovative to fail.” So innovative, you see, that it can’t survive in the market because it is reliant upon government subsidies where there is no market for its products.

Abengoa was a pet project of the Obama administration so he and his cronies could funnel billions in federal subsidies for government-green projects for favored players in the crony ring. The company received $2.7B from the Obama regime for solar energy projects in Arizona and California, and he personally promoted the company while he proudly threw billions into its strongbox. The Arizona project was rife with impropriety. The Washington Times had reported, in late November 2015:

The renewable energy firm, which is constructing several large-scale solar power projects in the U.S. and has received at least $2.7 billion in federal loan guarantees since 2010, said Wednesday it will begin insolvency proceedings, a technical first step toward a possible bankruptcy.

…A potential Abengoa bankruptcy could be much worse for taxpayers, although it’s unclear how much of the guaranteed loans the company has paid back. Neither the White House nor the Energy Department responded to requests for comment Wednesday seeking information on how much the company still owes on the loans, for which the federal government might be left on the hook.

…“When you have a company that is based on subsidies, it is no surprise they run into financial trouble because their business model isn’t based on economics; it’s based on politics,” said Daniel Simmons, vice president for policy at the conservative Institute for Energy Research, a leading critic of the administration’s spending on renewable fuels and of the president’s energy policy more broadly.

In Spain, a company is given 4 months to reach agreement with its creditors. Last week marked that day when that agreement was due, otherwise the company would have to seek insolvency proceedings. Except that on the day of reckoning last week, Bloomberg reported that ”more than 75 percent of the company’s lenders agreed to continue talks for as much as seven months, Seville-based Abengoa said in a regulatory filing Monday.

Note what banks are lining up at the trough of credit default swaps. Now what’s really interesting is the cast of characters around the company. Many thanks to Steve for the links to the latest, updated stories on this topic. Follow me on Twitter @karendecoster.

Another company in the government-subsidized “green” industry goes boom

Saturday, April 2, 2016
Posted in category Corporatocracy

SunEdison, the world’s largest renewable energy developer and the largest solar stock in the U.S. by market capitalization, is kaput. I want you to note the last paragraph of the following quote from the article (in bold). Yes, the WSJ said it.

“Solar-energy company SunEdison Inc. plans to file for bankruptcy protection in comingweeks, adramatic about-face for a company whose market value stood at nearly $10 billion in July.

The company is preparing a chapter 11 filing and is in talks with two creditor groups to obtain a loan to fund its operations during the process, according to people familiar with the matter. Creditors are likely to take control of the company and its portfolio of power projects, the people said.

SunEdison, whose stock has plunged in recent months, would rank among the largest financial collapses in recent years. The company, based about 20 miles outside St. Louis, used a combination of financial engineering and cheap debt to grow to be one of the country’s biggest developers of renewable-power plants.”

In 2014, even Baron’s had noted that the company’s market capitalization was heavily reliant on tax benefits from the company’s yieldcos. Barron’s calculated that more than half of the value created by one of SunEdison’s yieldcos came from tax benefits. The yieldcos are “publicly-held subsidiaries that own SunEdison’s finished solar projects and pay out most of the projects’ cash flow, tax-free, thanks to tax breaks available to owners of renewable power plants,” Barron’s said.

This company had rapidly over-expanded by means of hasty acquisitions. It also sold off its stable semiconductor subsidiary to throw all of its eggs in the government’s favored “renewable energy” industry. Here’s the socialist scheme that failed: British Prime Minister David Cameron, in mid-2015, announced that the Brit government would cut off homeowner-subsidized electric bills for homes using forms of solar power, causing SunEdison to end its free installation program for these subsidized solar users, a program for which the company made lots of $$$ by betting on the continued subsides. SunEdison then exited most of its British business. Tell me you are surprised.

This is corporate state shenanigans + financial engineering on a grand scale, wholly subsidized by political (in this case, “green”) policy. There is a place for renewable energy to grow and thrive, and alleviate dependence on traditional energy means. However, until government political policy stops favoring this industry and distorting the entire marketplace for these products, growth is falsely inflated, demand is overstated, price signaling is distorted, and corporate executives are baited into malinvestments in order to pump up the bottom line to make their Wall Street cheerleaders content.

These government subsidies completely remove innovation and corporate fiduciary responsibility and make bloated, reckless corporate entities, such as SunEdison, throw all of their eggs in one gigantic betting pool supported by cheap money and government handouts.

Jim Bovard vs the TSA Oppressors

Monday, March 21, 2016
Posted in category TSA

The heroic Jim Bovard in the USA Today on his adventures with the TSA and the response to his Freedom of Information Act request.

Flying home from Portland, Ore., on Thanksgiving morning, I had a too-close encounter with TSA agents that spurred me to file a Freedom of Information Act request. On March 5, I finally received a bevy of TSA documents and video footage with a grope-by-grope timeline.

…TSA disclosed exhaustive video coverage of my every movement in the Portland airport, even detailing which chair I chose after getting a Starbucks coffee. But there is a tell-tale gap. The video timeline notes “7:50:29 group arrives at Private Security room. 7:50:55. Door Closes. 7:57:28 Door Opens.” The seven-minute gap in the recording is where travelers’ rights vanish.

Here’s the video of Jim’s Portland poking.

What Pill is Rubio Popping?

Monday, March 21, 2016
Posted in category Politics

Whatever they are, they didn’t help.

Big Food Player Gives Way to GMO Pressures

Monday, March 21, 2016

General Mills feels “forced” to roll out GMO labeling in products across the national spectrum because the state of Vermont stepped forward and became the first state to require GMO labeling. The decision was made by the company because of the cost of complying with individual states, each with their own laws. But don’t worry – as the article states, “Federal regulators have approved the genetically modified crops currently in the market.” Alas, we can stop worrying and spend time on something more worthwhile like buying stuff and investing in the stock market bubble. A quote from the Wall Street GMO Journal article is pretty telling in its substance:

He said he is still hopeful that Congress will pass a national law that would supersede such state laws, but the company had to move ahead to comply with Vermont.

So once again, state’s rights don’t matter. A huge special interest power, the Grocery Manufacturer’s Association, has been behind the campaign to convince the Feds to overrun the states on this issue. The Big Food Machine wants only the federal government to rule on this issue because they can control the output by buying politicians and organizations, funding special interests, and steering the content of the laws.

Obama For Diaper Welfare

Monday, March 21, 2016
Posted in category Welfare State

The Whitehouse.gov is running a story about “diaper disparity” that reads like flawless satire. The article, written by the Assistant to the President and Director of the Domestic Policy Council (you can’t make that up), refers to this as the #DiaperGap.

There is also no federal assistance for purchasing diapers, unlike other essentials like food or health insurance. Programs like WIC, SNAP, Medicaid help provide parents with nutritious foods and the supports they and their babies need to stay healthy, and the President’s budget has called for $10 million to test effective ways to get diapers to families in need and document the health improvements that result. But unless Congress acts, we don’t have a program to help struggling families buy diapers for their children. So, we’re getting creative and using every tool we have to help solve this problem.

…We want every child to grow, thrive, and reach their full potential. We can make that possible by harnessing the tools of this new economy to serve all Americans, because no family should have to choose between keeping their babies healthy and keeping the lights or heat on.

The problem can be approached by considering a shift in time preferences from high to low, but such a solution will never be discussed because it would (1) hold accountable the individual who is financially unprepared to have children and (2) take on the form of education and lifestyle change, which cannot produce a continuous stream of redistributive largesse like more government programs that promise free stuff for the welfare-grabbing masses.

These same “families in need” have satellite tv, iPhones, all the clothing bells and whistles, and a salon budget larger than mine, but they can’t diaper their children. When my parents got married in 1951 they were very poor, with my Dad working three jobs to sustain a debt-free, middle-class life. My mother made real (cloth) diapers, which are still an option today, and she did this for all six of their children born over the course of nineteen years. But they have to be washed and cared for, and certainly we cannot expect “poor” mothers to care for their own children and lift a finger to keep diapers fresh and washed.

Lastly, I thought that disposable diapers don’t align with the entitlement faction’s EnviroCommunist agenda for “going green?” How do they make an honest choice between welfare programs and piling up diapers in landfills and killing the planet?

diaper

The Clintonistas

Sunday, March 20, 2016
Posted in category Politics

The ugly, scratchy-voiced, wrinkled, vegan-prick Bill Clinton came on the tube tonight and said this: “We are in a position, for the first time since I left office, to restore an era of broadly-shared prosperity.”

Broadly-shared prosperity? Am I the only one who asks, always, define that…define it…what in the fucking fuck does that mean? It means nothing, and the rest of the catatonic masses do not blink an eye at such newspeak because they are brainwashed, dumbed-down, entitlement-seeking slaves. Fuck you, Billary, and your absolute hatred for all who are successful, hard-working, and earnestly ambitious.

Somebody Send Texas “The Memo”

Sunday, March 20, 2016
Posted in category Bubble Economy, Economics

A brand new luxury hotel in Cotulla, Texas went up for auction after being open for just a tad over one year.

Things are unraveling in the oil fields of Oklahoma, which slashed its entire state budget 7 percent, and in the boardrooms of North American energy companies, 48 of which have gone bankrupt so far, according to Haynes & Boone LLP.

…In South Texas, where the 400-mile-long Eagle Ford Shale formation pumps 1.2 million barrels of oil per day, Malana Hotels & Suites owner Bob Zachariah just closed the hotel in Cotulla and put it up for auction. It opened last January with a sleek design and amenities such as iPad stations in the lobby and a lap pool.

…”We had to stop the bleeding,” Zachariah said. “We decided enough was enough.”

…”It’s a geopolitical play that Texas got caught in. What can mere mortals like us do?” Zachariah asked.

The mere mortals can refuse to borrow massive amounts of debt to build exorbitant brick-and-mortar businesses that rely on an unsustainable central planning framework to bring in paying customers. Here is the auction information online.

Hitlary’s LGBT Agenda

Wednesday, March 16, 2016
Posted in category political correctness

Hitlary, in her triumphant speech last night, claimed that a major ambition for her presidency is LGBT rights. And I thought we all had the same rights to life and peaceful choices, as individuals. But then again, the politics of being gay was never about the right to choose and be left alone to live your choices, why is why I began attacking this issue a dozen+ years ago. Being queer, from the outset, morphed into an entitled political class, which then morphed into this perverted gender confusion class that gained the Medical-Psychological Complex stamp of approval, and that whole ordeal has become an aggressive and violent political class that has made heterosexuality and the family its irreconcilable enemy.

And this is why Trump has birthed America Gone Wild. This is why he will win if he survives a Votescam or other attempt to end his political aspirations. Even the average Boobus Americans is sick and tired of this cultural Marxism taking over every angle of American life.

Bring on the Bubble-Business Machine. Again.

Wednesday, March 16, 2016
Posted in category Bubble Economy, Economics

An oldie but goodie from The Onion in 2008.

The current economic woes, brought on by the collapse of the so-called “housing bubble,” are considered the worst to hit investors since the equally untenable dot-com bubble burst in 2001. According to investment experts, now that the option of making millions of dollars in a short time with imaginary profits from bad real-estate deals has disappeared, the need for another spontaneous make-believe source of wealth has never been more urgent.

“Perhaps the new bubble could have something to do with watching movies on cell phones,” said investment banker Greg Carlisle of the New York firm Carlisle, Shaloe & Graves. “Or, say, medicine, or shipping. Or clouds. The manner of bubble isn’t important—just as long as it creates a hugely overvalued market based on nothing more than whimsical fantasy and saddled with the potential for a long-term accrual of debts that will never be paid back, thereby unleashing a ripple effect that will take nearly a decade to correct.”

“The U.S. economy cannot survive on sound investments alone,” Carlisle added.

Congress is currently considering an emergency economic-stimulus measure, tentatively called the Bubble Act, which would order the Federal Reserve to† begin encouraging massive private investment in some fantastical financial scheme in order to get the nation’s false economy back on track.