Monday, August 29, 2022
Thursday, August 18, 2022
What is modern monetary theory? | John Hancock Investment Mgt
Money is not wealth. It is a placeholder for wealth. If you create more of it, then by definition each unit of money is worth less, unless somehow you created an equivalent amount of wealth.
I am a bit worried about the 40% increase in the money supply that happened over the last two calendar years and what this means for my retirement.
So increasing the money supply can be a form of theft. It is transferring value to those people who receive the new currency at the expense of the people holding the existing currency.
If we count precious metals as a form of wealth, then having a backed currency would make money a form of wealth.
Wednesday, August 10, 2022
Tuesday, August 9, 2022
China and EV batteries
The Inflation Reduction Act of 2022, which passed the Senate this weekend in a party-line vote, would require batteries to have at least 40 percent of materials sourced from North America or a US trading partner by 2024 in order to be eligible for a $7,500 tax break. By 2029, battery components would have to be 100 percent made in North America.
Batteries that contain minerals that "were extracted, processed, or recycled by a foreign entity of concern," which is defined as a state sponsoring terrorism or countries blocked by the Treasury Department's Office of Foreign Assets Control, would be ineligible for the credit. China is listed as a "foreign entity of concern" by the federal government.
Democrats, including West Virginia Senator Joe Manchin, who negotiated the deal in secret with Senate Majority Leader Chuck Schumer, are running on a tough-on-China message this year. But the auto industry says that the new requirements would basically disqualify every EV on the market today.
According to the Alliance for Automotive Innovation, the auto industry's main lobbying group, there are currently 72 EV models available for purchase in the United States, including battery, plug-in hybrid, and fuel cell electric vehicles. Of those models, 70 percent are ineligible for the tax credit when the bill passes. And by 2029, when the additional sourcing requirements go into effect, none would qualify for the full credit.
No electric vehicles on the market today qualify for the new EV tax credit - The Verge
Saturday, August 6, 2022
Inflation: Last Week Tonight with John Oliver