Alternative energy meets alternative reality

That’s right, another electric car company pulls the plug on manufacturing in the US, as its cash dwindles. And guess what? It’s another stimulated company.

Sure pick on those green car companies again — but can we substitute another color because they aren’t profitable?

They got ’09 stimulus funds to a tune of a 29 million dollar grant to produce 510 electric vehicles. Since then to 2013 they produced 439 vehicles for municipal use.

Now the company CEO Bryan Hansel said:

“We didn’t see value in continuing to build a small number of vehicles at the price point we were,” said Hansel, who noted that despite federal support the company was manufacturing vehicles at a loss. Smith has been struggling for some time. It reported annual losses in the millions after receiving DOE funds.

You think you’re operating at a loss?? But they didn’t mind producing them at a loss with our money. Better still, Energy Secretary, Ernest Moniz, is eager to restart the stalled program and crank up subsidies to companies, with 16 billion still in the program.

The DOE news comes on the heels of two other companies going belly up in the program. This one just packed up the US plant and will continue overseas operations.

But the DOE secretary said:

Moniz expressed confidence that the electric vehicle market has improved since those high-profile failures.

“The U.S. auto industry has evolved since the ATVM Program was established and today we are presented with an opportunity to hit the accelerator on U.S. auto manufacturing growth.”

“Hit the accelerator” after another company slammed on the brakes. Its evolved all right, into a spiral and they are running out of the country.

Now this is not an alternative energy agenda, this is an alternative reality agenda.

See article Taxpayer-Backed Electric Car Company Closes U.S. Factory
Government watchdog recommends DOE wind down controversial program

RightRing | Bullright

Dividends piling up for Obama’s green agenda

Abound Solar Finances Under Investigation

DOE-loan recipient filed for bankruptcy in June

BY: Washington Free Beacon Staff
October 8, 2012 3:22 pm

The finances of a solar company that received $68 million in federal stimulus money are now under investigation in Colorado, reports ABC Denver:

http://freebeacon.com/abound-solar-finances-under-investigation/

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I’ll just add some of my comments.
After all the rage about solar companies, where Obama succumbed to one of his worst losses — or “bets”– the industry is on the move once again. But not in an upward “can’t fail” way.

Months back, large solar companies in Europe were forced to lay off workers or just went under. The market flooded with cheaper goods from China was to blame, as it also cornered the market on raw materials. Sales for Solar companies outside China plummeted. China appeared to be capitalizing on all the losses elsewhere.

Then, stories came about huge layoffs in Germany as companies went belly up. The business and future it held for employees even in Germany sank for an industry which seemed to hold such promise for its economy.

This is a warning about the dangers of government manipulated industries. China is the prime example. The solar industry once heralded as the new wave enjoyed growth and expansion everywhere, especially in China. The same government that subsidized it is picking winners and losers. Sound familiar? The state-controlled banks are the government’s cops on the beat. Of course, the banks decide who will survive by who gets loans and who doesn’t. And banks are not granting loans only for expansion, another blow to the sector.

Now the government decided it is time for industry consolidation after it endorsed expansion for years. So they must force consolidation. Banks already limited expansion and now encourage mergers and acquisitions within the sector, large companies buying smaller operations.

There are growing cries for tarrifs on China. Let’s see what that brings; or if they materialize with the same hyper-addiction the industry enjoyed? US has stepped up tariffs and the EU is on the verge of adopting tougher measures. Other countries are considering that formula. So a monopolized market is finally getting squeezeed as others seek relief to China’s “dumping” around the world. And that reaction appears to be creating a problem for China.

More reference: http://www.bloomberg.com/news/2012-09-06/china-price-war-draining-jobs-in-germany-s-solar-valley-energy.html

http://www.bloomberg.com/news/2012-09-05/chinese-solar-panel-exporters-face-threat-of-eu-tariffs.html

The art of the stimulus

Or is it stimuli?


I cannot figure out why more isn’t said lately on the stimulus and where it went. (or didn’t go as the case may be.) But its clear that Libs, more quietly now, are pushing for more stimulus. (stimulus is like fish food to Libs) In their reasoning they suggest infrastructure is in need of repair. How about that infrastructure? Wasn’t the first one sold to us under the guise of infrastructure, or all those shovel-ready projects? Even Obama had a chuckle over it saying “it turned out shovel-ready was not too shovel-ready.” – disengenuously. He wasn’t too surprised.

In the stimulus package, just 1/3rd was originally scheduled for infrastructure. But within that were funds for records infrastructure etc. But of that third, only a small part of it was actually for roads and bridges or repairs. Sure all the talk was about that and how bad it was needed. But only around 6% of stimulus funds went to infrastructure like roads and bridges. There is a phrase for that; it’s called the old bait and switch. So where did money go?

Well, the long list contains a lot of state aid and funds which went to public employees of all kinds. They got stimulated. The roads and bridges, not so much. It went into that giant cesspool of all those public sector jobs. it was supposedly saving, which was only temporary. (The money had to stop sometime.) In the meantime, it bought the support…votes in political speak, of public employees and unions. You want to know where the money for infrastructure went? Look to the public payrolls. But that is old news now. Why isn’t it important anymore? And remember Joe Biden was put in charge to play cop and judge?

What gets me is how often talk comes up now on infrastructure spending and the dire need it. Government has issued reports rating our roads and bridges infrastructure a ‘D’. And we just spent 800 billion dollars with a 6% token to it. At that rate how much more “infrastructure” spending would we have to do to get a sizeable amount (or percentage) of the total to go to roads and bridges? Its estimated we need to spend 2.5 trillion on it. Its scary to think how much miscellaneous money would also have to be spent(wated), to see 2.5T go toward it? But its in the stratosphere, for sure. (maybe 4 trillion plus, who knows?)

Still they say we have to spend …. And soon it will be “no time to waste”… “we can’t wait!” That’s my prediction. It should infuriate every American to be told they were hot on that cause, with borrowed money and then, “oops, I guess not”. So infrastructure can wait. Union jobs could not. The public sector needed money, as it turned out. But “it turns out shovel-ready were not so shovel-ready”

Yet it does get worse, if that was possible. Just recently when Obama was asked about the economy, he said “the private sector is doing fine”. In honing down his comments, he revealed the problems are in the public sector. We are loosing jobs in the public sector, he said. Well, dang, all that money going into public coffers and now he says there is a big problem with the public sector and jobs. (some of his favorite folks, er voters)

Hence, back to the original debate over their desire for more stimulus spending – whatever they want to call it now. And it is election season so the votes need to be purchased. I can almost smell another emergency coming on. Any emergency will do. One they can use for a vehicle. States are strapped, so they will be looking for any avenue to get to Spendville. And once again maybe a fresh mention to “roads and bridges”, ha ha, but it would go to the public sector and/or employees.

Of course that is just my stab in the dark guess while they must be scheming up something. ‘We must never loose those public sector jobs’. As much stimulus spending as it was, all that prior spending did was buy more time – which happens to be very, very expensive in Washington.

A strange thing happened weeks ago, Obama brought up his favorite talking point about roads, bridges and infrastructure in his “you didn’t build that” debut. He cleverly infused it into his campaign stump speech. Then again in his convention speech. Does anyone think it was incidental or unintentional? You may want to look at the second article under reference, for background, if you do. What with all that money Obama is “saving”.

I will use the money we’re no longer spending on war to pay down our debt and put more people back to work rebuilding roads and bridges and schools and runways.

Because after two wars that have cost us thousands of lives and over a trillion dollars, it’s time to do some nation- building right here at home.

Funny, his way of “nation building” so far is to tear America apart and down. I can’t stomach any more of his “nation building”. If Clinton was building “the bridge to the 21st century”, Obama is building the bridge to the ash heap. ‘Slumming down America’. There’s a bumper slogan for Biden.

Reference: http://www.outsidethebeltway.com/the-final-verdict-on-the-2009-stimulus-a-failure/
Description of the deliberative stimulus, not too conservative but informative
http://althouse.blogspot.com/2011/09/obamas-infrastructure-stimulus-designed.html