In the Pipeline: 12/12/12

We realize that taking someone else’s money for your own purposes is always tempting.  Congress should resist. AEA (12/12/12) reports: “The American Energy Alliance joined five other free market groups today in sending a letter to 158 members of the 112th Congress, urging them oppose an extension of the wind Production Tax Credit that would transfer taxpayer dollars from their states to other states that mandate renewable energy. AEA President Thomas Pyle signed the letter, along with Myron Ebell of Freedom Action, Michael Needham of Heritage Action, Phil Kerpen of American Commitment, Marlo Lewis of the Competitive Enterprise Institute, and Al Cardenas of the American Conservative Union.”


We offer this without comment. Politico (12/11/12) reports: “ExxonMobil said Tuesday that it does not support imposing a carbon tax as a way to raise revenue and help avoid the fiscal cliff — further deflating hopes that the long-shot proposal could find its way into the final deal.”


P.T. Barnum was pretty much right on target.  Especially when it comes to this crowd. Politics in the Zeros (12/11/12) reports: “The renewable energy bubble was just another sector to be exploited by financial interests who had had no real interest in the companies themselves. This is made worse by the viciously mercenary renewed interest in natural gas, oil, and fracking, which is also hurting development of grid-scale renewable energy.”


“On the cusp of positive cash flow . . .”  You can’t beat that. ALT Energy Stocks (12/11/12) reports: “Even though Blackrock appears to be holding onto its position in Tesla Motors for the time being, it does not mean that smart investors should not question Tesla’s future.  Recently the Wall Street Journal also reported Elon Musk used the Twitter social platform to declare Tesla on the cusp of positive cash flow.  Musk’s interests in Twitter aside, it was a bold statement.  Tesla used $233.1 million in cash to support operations over the twelve months ending September 2012.  For clarity, that is $19.4 million per month on average.  Musk’s declaration might suggest that the situation is improving.”


I wonder how long it will take this crew to be on the “cusp of positive cash flow”. Renewable Energy World (12/11/12) reports: “SolarCity Corp., the solar power provider led by billionaire Elon Musk, is betting prospects for clean energy and Musk’s name will help it garner a valuation 19 times the price of peers in an initial public offering.”


This is like cutting off a runner’s leg saying: “Look! He can’t run races anymore, we should replace him.” Colorado Springs Independent(11/13/12) reports: “The Sierra Club once again is trying to persuade the community to abandon the city-owned, coal-burning Martin Drake Power Plant, citing a study by the Union of Concerned Scientists.”

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