While Berkshire may have 119bn in debt they also have 88bn in cash. I would assume the reason corporations have been rolling over their debt is because the cost of borrowing has been so low the return on that debt has been profitable. But when that arbitrage is no longer profitable they’ll use their cash to pay down debt. In 2000 us companies had 1.6 trillion in cash and this year cash on hand has exploded to 5.8 trillion.
Forget about the PRICE of lithium and start worrying about its availability. At 2019 rates of mining (pre-Covid) it would take 9,920 years to obtain enough lithium, and 7,100 years to obtain enough vanadium to build ONE generation (20-25 years worth) of wind and solar to replace all fossil fuels. Both of those numbers exceed the known reserves of those metals. I've cued the video below to the crux but the whole thing is worth watching.
From a purely technical perspective, it is highly unlikely that the down move is over. The Dow's first wave down (7,250 pts) ended at 29,741 or a shallow 38.5% retracement of the Mar 2020 low at 18,086. A bounce from there to a new high would be a signal of an extremely strong bull market. Does the world economic situation support that sort of view?
Even in a strong market, a corrective move down off the Jan all time high would expect to see an ABC / zig-zag down to the 50% retracement at 27,500. If instead of being a corrective move, this is the beginning of a bear market impulsive move down, a measured move of that first wave down would suggest a target at 22,300.
For now, the next big decision point is the June low (29,741)--about 900 pts below this week's close. The bump off the June low was a good chance to bail out. That's what the big money was doing. This week's action was very negative technically.
“Europe can thank the Democrats and the Biden administration for their war against” Russia, and especially the insane anti-Russia sanctions, for the current energy crisis.
There. I fixed that sentence to reflect the REAL cause of Europe’s woes. Even if the U.S. were at max energy production, there wouldn’t be much to spare for the Europeans.
"Even if the U.S. were at max energy production, there wouldn’t be much to spare for the Europeans."
Much to spare?!? You must be kidding! Biden has been sending the majority of the 1 million barrels a day he's been siphoning out of the US Strategic Petroleum Reserve to Europe and a bit to (gasp!) China. He's only recently been sending it to US refiners to get US gas prices down before the November 8th mid-terms. After the Dems massively cheat to keep power in the mid-term elections, watch for US gas prices to skyrocket again.
Biden is wittingly or (more likely) non-wittingly hurtling down the road to obliterating the US and world economies and western civilization in general, so that the WEF and their ilk can rebuild a global utopian socialist "paradise", as dreamed up in the faculty lounges whose denizens now populate our governments. We're just along for the ride.
Just spent the last 3 days in negotiations with two highly-sophisticated German businessmen (a sharp commercial lawyer and a corporate-finance guru) with whom I was surprised to find 100% agreement on root causes of all the economic woes in the EU zone right now--Ursula VDL economic policies, WEF/Davos initiatives/influence, the clean-energy grift and overreliance on green-tech, hyper-financialization over real production, etc. But, when it came to the current energy crisis facing their unusually energy-intensive business, they immediately cursed out "that %#%ing Putin", completely oblivious to the US/UK hand in fueling that conflict as a means to squeeze the Euro and the EU generally. Very smart people, yet fully deluded by the emotion of the "war effort" propaganda.
I couldn't stop laughing at Lukashenko splitting wood. I have a cunning plan, let's export overly abundant Texas mesquite wood to Europe instead of natural gas and oil, a win, win!
Oil field produced waters often contain significant amounts of lithium, at the current prices it is probably economically feasible to extract lithium.
Start with the fact that there is no climate crisis and work from there.
But no.
While Berkshire may have 119bn in debt they also have 88bn in cash. I would assume the reason corporations have been rolling over their debt is because the cost of borrowing has been so low the return on that debt has been profitable. But when that arbitrage is no longer profitable they’ll use their cash to pay down debt. In 2000 us companies had 1.6 trillion in cash and this year cash on hand has exploded to 5.8 trillion.
https://theconservativetreehouse.com/blog/2022/09/16/on-the-radar-wave-3-of-food-price-inflation-soon-to-arrive/
Forget about the PRICE of lithium and start worrying about its availability. At 2019 rates of mining (pre-Covid) it would take 9,920 years to obtain enough lithium, and 7,100 years to obtain enough vanadium to build ONE generation (20-25 years worth) of wind and solar to replace all fossil fuels. Both of those numbers exceed the known reserves of those metals. I've cued the video below to the crux but the whole thing is worth watching.
https://www.youtube.com/watch?v=MBVmnKuBocc&t=2400s
From a purely technical perspective, it is highly unlikely that the down move is over. The Dow's first wave down (7,250 pts) ended at 29,741 or a shallow 38.5% retracement of the Mar 2020 low at 18,086. A bounce from there to a new high would be a signal of an extremely strong bull market. Does the world economic situation support that sort of view?
Even in a strong market, a corrective move down off the Jan all time high would expect to see an ABC / zig-zag down to the 50% retracement at 27,500. If instead of being a corrective move, this is the beginning of a bear market impulsive move down, a measured move of that first wave down would suggest a target at 22,300.
For now, the next big decision point is the June low (29,741)--about 900 pts below this week's close. The bump off the June low was a good chance to bail out. That's what the big money was doing. This week's action was very negative technically.
“Europe can thank the Democrats and the Biden administration for their war against” Russia, and especially the insane anti-Russia sanctions, for the current energy crisis.
There. I fixed that sentence to reflect the REAL cause of Europe’s woes. Even if the U.S. were at max energy production, there wouldn’t be much to spare for the Europeans.
"Even if the U.S. were at max energy production, there wouldn’t be much to spare for the Europeans."
Much to spare?!? You must be kidding! Biden has been sending the majority of the 1 million barrels a day he's been siphoning out of the US Strategic Petroleum Reserve to Europe and a bit to (gasp!) China. He's only recently been sending it to US refiners to get US gas prices down before the November 8th mid-terms. After the Dems massively cheat to keep power in the mid-term elections, watch for US gas prices to skyrocket again.
Biden is wittingly or (more likely) non-wittingly hurtling down the road to obliterating the US and world economies and western civilization in general, so that the WEF and their ilk can rebuild a global utopian socialist "paradise", as dreamed up in the faculty lounges whose denizens now populate our governments. We're just along for the ride.
Just spent the last 3 days in negotiations with two highly-sophisticated German businessmen (a sharp commercial lawyer and a corporate-finance guru) with whom I was surprised to find 100% agreement on root causes of all the economic woes in the EU zone right now--Ursula VDL economic policies, WEF/Davos initiatives/influence, the clean-energy grift and overreliance on green-tech, hyper-financialization over real production, etc. But, when it came to the current energy crisis facing their unusually energy-intensive business, they immediately cursed out "that %#%ing Putin", completely oblivious to the US/UK hand in fueling that conflict as a means to squeeze the Euro and the EU generally. Very smart people, yet fully deluded by the emotion of the "war effort" propaganda.
key word in your great analysis: emotion - how often superior intelligence covers for a complete lack of insight into emotions!
I couldn't stop laughing at Lukashenko splitting wood. I have a cunning plan, let's export overly abundant Texas mesquite wood to Europe instead of natural gas and oil, a win, win!
Oil field produced waters often contain significant amounts of lithium, at the current prices it is probably economically feasible to extract lithium.
It’s almost as if the economic destruction ahead was planned or something. 🤔
You know, I was thinking the same thing, but that can’t be right can it?
Nah, that’s crazy talk. The sign clearly said, “Bridge Out”, why would you want to step on the accelerator? Nah, just crazy talk 🙄