SANTE FE, New Mexico, August 3. 2015 − Out here in New Mexico for two weeks, we’re running on Mountain Daylight Time (MDT), which is two hours behind Washington’s − and Wall Street’s − Eastern Daylight Time. Hence, the reports we’re able to submit this week will be running behind the tape.
It’s for that reason we’re only just now grappling with President Obama’s announcement earlier today of his catastrophic new anti-coal, anti-fossil fuel energy policies. If put in place – as they likely will be, given the fecklessness of Congress and industry – the ultimate effect of this rolling disaster will be to gradually strangle the wages and purchasing power of most Americans, whether they realize it or not.
In a statement this morning quoted on CNBC, Obama asserted that
“‘Climate change is no longer just about the future we’re predicting for our children or our grandchildren, it’s about the reality that we’re living with every day—right now,’ Obama said, adding that stronger storms, deeper droughts and more frequent floods are because of the environmental shift.”
In a clearly coordinated statement of support, also noted on CNBC, America’s leftist Surgeon General, Vivek Murthy, piled on with similarly lame but incendiary propaganda:
“‘America should be a place where every child can walk, run and play outside without having to worry that the air they’re breathing could make them sick… It will only be this for us and our children if we work together to protect the planet on whose basis our health depends.'”
The president, obviously in tandem with his politicized and lawless EPA, intends to pursue policies that would essentially eliminate cheap, coal-fired generation of electricity by 2030, a fast-track plan that, even if supported by actual evidence (which it is not), would kill the domestic industry long before that.
But make no mistake: the crusade is not intended to end with the destruction of coal. Oil and even clean-burning natural gas is also in the presidential cross-hairs. Not too much to worry about with nuclear power, as the environmentalist terrorists already destroyed that with their patented scare tactics after the Three-Mile Island crisis decades ago–a crisis that never caused any environmental damage at all. Layoffs, here we come.
Traders on Wall Street today correctly perceive that an already dicey economy can’t take another massive round of 2008-2009 style layoffs. But this is what’s now most likely to happen if the administration’s anti-energy policies are implemented. Layoffs in energy companies will start things off, followed by layoffs in supporting industries.
These layoffs will spread further, hitting all other industries, which, in turn, will have less and less consumers available to buy their products, leading to layoffs there as well.
Not for nothing have declining commodity prices been predicting such an eventuality, anticipating as this sector often does, a decline in purchasing power and hence, a decline in the need for raw materials. The president clearly has a knack for continuously undermining his own mostly chimeric “economic recovery.” But that seems to matter little to the kind of low information voters who are the ones who will likely take the first hit.
At least some individuals are speaking out in no uncertain terms against Washington’s destructive ideologically-driven nonsense. For one, CNBC cites Thomas J. Gibson, president and CEO of the American Iron and Steel Institute, who thundered that the administration’s new collection of destructive anti-energy rules put
“‘the affordability and reliability of electricity for steel producers at serious risk,’ and could ‘impede economic growth’ for the industry.'”
Amen, Mr. Gibson. Both the companies you represent and their employees are already being damaged by this administration’s energy policies. Do you have any other friends with the guts to back your statement? The Prudent Man certainly hopes so.
It’s problematic enough for U.S. citizens to be saddled with a genuinely malicious president who, among other things, is under the complete control of radical warmists and the climatistas whose ideological agenda is actually the radical reduction of the world’s human population.
Worse still, however, and even more ironic, both Obama and his henchman Murthy, in announcing their catastrophic policy, once again persisted in pulling out that old, leftist mantra “for the children” to support their bogus climate argument. These are people with no sense of shame.
By way of background, teachers unions have long wielded this same “for the children” lie to frighten taxpayers into raising their own taxes to increase the union membership’s already absurdly high wages, benefits, and pension packages. What taxpayers end up paying for are schools run by lackeys and incompetents whose efforts “for the children” are graduating less and less students each year who, in turn, know less and less.
In a different way, Obama’s continuing attack on America’s energy industry will impoverish more and more families over the years, leading to lower and lower birthrates as jobs are eliminated and as remaining salaries plummet. We’d ask the president how, exactly, does this help “the children?” But we’d never get an answer, just another climatista talking point that the government-controlled media will let this president get away with.
This impending new economic disaster will unfold over time, of course, making it difficult, at first, for individuals to see it. This slow disaster rollout will provide some cover to the final year of this president’s term.
Obama continues to solidify his systemic destruction of America without even token opposition from Republicans, who, as a party, can’t seem to fight their collective way out of the proverbial wet bag. No one will oppose him for fear of being tagged with the dreaded “R” label.
It’s time to change the premises of these arguments rather than accept the premises imposed by the anti-American left. But we don’t expect the leadership of the Stupid Party to do that, since they’d rather denounce the Tea Party than Obama.
We live in amazing times. We are witnessing the complete destruction of the once envious American way life by one badly educated, ill-informed, hate-blinded ideologue while the average American sits by staring at the unfolding disaster as if it’s this week’s edition of some cable TV channel’s popular reality show.
As investors, we need to keep protecting our portfolios by going more and more to cash, keeping the cash in separate accounts, and maintaining portfolios consisting only of stocks that aren’t in the current or future cross-hairs of the Obama Administration’s American Destruction Derby. Or, for that matter, stocks that strongly rely on a vigorous Chinese economy that now appears to be in serious jeopardy.