Nuclear Power Plants are the Key to Fighting Climate Change.
Here is what we are getting into today:
Nuclear Power is Essential For Our Future.
The Economy Never Recovered From the Last Recession.
The Changing Dynamics of Electric Vehicle Production in the US.
Will the Car Market cause the next GFC?
Let’s Dive In!
YouTube Channel: Wall St For Main St
Title: Justin Huhn: Nuclear Power & Uranium Are Needed For Long Term Energy Security & Cheap Electricity?
Link: https://www.youtube.com/watch?v=1ZhDcnlDWZ0
Here are the top takeaways:
The German government's decision to phase out nuclear power has been an abject failure, resulting in higher carbon emissions and energy costs. Germany has been reliant on coal and natural gas for power generation, which is less efficient and more expensive than nuclear. Belgium has also made the same mistake of closing down its nuclear reactors. These countries serve as a cautionary tale of what not to do when it comes to energy policy.
In the wake of the Fukushima disaster, many countries around the world began to phase out their nuclear power plants. Many people were opposed to nuclear power due to the potential for disasters. More recently, people have begun to see the benefits of nuclear power. Nuclear power is a clean and efficient source of energy that can help to combat climate change. Nuclear is the best option to meet the world's growing energy needs.
Kazakhstan's vast reserves of uranium position the country to play a major role in the future of nuclear power. There is potential for uranium enrichment facilities in the US, which would reduce reliance on imported uranium products. The US should take advantage of this by working with Kazakhstan to develop uranium enrichment facilities.
The price of uranium needs to go much higher in order to incentivize new production and meet future demand. Financialization of the uranium sector could take prices north of $100 per pound, and this would be good for both retail and institutional investors.
The Sprott Physical Uranium Trust is a good way for investors to get exposure to the spot price of uranium, and the trust is well-positioned to take advantage of a rising price.
The International Energy Agency has set a goal of net zero emissions by 2050, and nuclear power will play a major role in achieving this. Nuclear power is a cleaner, more efficient, and more cost-effective form of energy than coal or natural gas. It is also a major source of jobs and revenue for countries that invest in it. Countries that are phasing out nuclear power is counterproductive, as it will lead to higher energy costs and job losses.
The US government should invest more in nuclear research and development, in order to keep up with other countries who are already embracing new technologies.
Countries like China and Japan that are investing in nuclear power will be in a much better position to compete economically and achieve their climate goals. Solar power is not going to be enough to meet the needs of a state like California, which is why nuclear power should be given more consideration. Nuclear power is the future of cheap electricity, but only if the politicians and bureaucrats are willing to look at the math and invest in it for the long term.
YouTube Channel: Eurodollar University
Title: It's a really bad sign for everyone. Just don't call it unexpected.
Link: https:///www.youtube.com/watch?v=YqlPnYLpUGc
Here are the top takeaways:
It is clear that the economy has not recovered since the 2008 recession, despite what economists and policy makers have claimed.
The real personal income excluding transfer receipts data series shows that the private economy has not generated enough income to support economic recovery.
The main narrative is that the participation problem is the fault of workers, who are too lazy to go back to school and learn new skills that are employable in the modern marketplace. No where in the narrative is the real reason for why participation in the workforce has dropped, which is the economy never really recovered.
The economy was never as strong as it appeared in 2021. Government stimulus programs covered up the underlying weaknesses. These programs are now coming to an end, and the true state of the economy is becoming clear.
Intel CEO Brian Krzanich has admitted that he was surprised by the weakness in demand in October 2021, and he now realizes that the economy is not as strong as he thought it was.
The real issue is not just economic uncertainty, but the underlying fundamentals of the economy. The only way to fix the imbalance is for private income to grow faster than consumption, which will require a sharp increase in wages or a sharp decrease in spending. Neither of these options is palatable, but they are the only way to reconcile the imbalances in the economy.
Website: Wolf Street
Title: EV Competition Finally Produces Results: Ford Cuts Prices on Mustang Mach-E, after Tesla, Kia, Hyundai, Chevrolet, Nissan Cut Prices on their EVs
Link: https://wolfstreet.com/2023/01/30/ev-competition-finally-produces-results-ford-cuts-prices-on-mustang-mach-e-after-tesla-kia-hyundai-chevrolet-nissan-cut-prices-on-their-evs/
Here are the top takeaways:
Ford is trying to keep the Mach-E competitive in the marketplace. Ford has recently cut prices for the Mustang Mach-E in response to competition from Tesla and other electric vehicle (EV) makers. Chevrolet, Kia, Hyundai and Nissan have also cut the prices of their EV’s.
The EV dynamics are shaking up the self-satisfied legacy-automakers in the US and their oligopolistic behavior. Toyota, the largest automaker in the world, has completely missed the battery EV dynamics and is years behind. Other automakers have made similar missteps in getting started with EVs, including BMW, whose CEO was replaced in 2019 for falling behind competitors in the EV space.
For the auto industry overall, EVs are the only area where sales are growing in leaps and bounds.
The EV startups in the US have not made much progress in mass-producing EVs. Rivian is the most successful of the startups but is still only cranking out relatively small numbers.
The hundreds of billions of dollars that are being invested in the US in EV production is a great thing for consumers, with more choices, more competition, and price cuts being a great thing.
It is not working out great for stocks of current or future EV makers, which are getting hammered today.
YouTube Channel: George Gammon
Title: Will Subprime Auto Loans Trigger The Next Financial Crisis?
Link: https://www.youtube.com/watch?v=okhzUoxaUO0
Here are the top takeaways:
The car market is in a worse position than the housing market was prior to the GFC. Lenders have relaxed standards and are giving out loans to anyone who can fog a mirror.
The problem is that when rates increase, as they have recently, many people will be unable to make their payments and the (auto) market will collapse.
However, the banks are in a better position today than they were leading up to the last financial crisis.
The main reason is that the banks have far less exposure to subprime loans. In nominal terms there is only around $1 trillion in car loans vs the $15 trillion (2008 dollars) in housing loans. The scale in exposure is very different between the two.
In addition, the Federal Reserve is now paying interest on the reserves that banks have on their balance sheets, which gives them a boost to their profits.
The car bubble will not cause the same havoc that the housing bubble of the Great Financial Crisis did.
Thanks For Reading!
If you find value in this newsletter and want to make sure you don't miss any important updates, you should definitely consider subscribing. By subscribing, you'll be the first to know about new articles and special offers.
We also offer a paid service which will give a breakdown of every source we cover that will be sent out almost daily.
So DON'T WAIT - hit the subscribe button now and join our community of informed readers.