Dust Bowl: Biden's Green World (06-11-21)

The next congress in Jackson Hole will reveal whether Biden's green dream is controlled by fishing it with a comprehensive "Tapering Plan", funded by the FED and comparable to the era before the 1930s crisis.

According to the historian Jared Diamond in Collapse (2006), "the world society as a whole is moving today on an unsustainable path" and if we continue on the same path, "it could limit our way of life in the coming decades." Sustainable agriculture, the implementation of adequate water conservation techniques, and greater public awareness are possible solutions to mitigate planetary deterioration and not repeat situations such as the Dust Bowl of the "dirty 30s" that affected five states: Oklahoma, Kansas, Texas, New Mexico, and Colorado.

This lead gives rise to explain the great 10-year apocalypse suffered simultaneously with the crisis of the 1930s that forced thousands of families to move to states like California due to the inability of farmers to stock up, grow anything, and even feed the livestock died by the thousands. The black clouds of dust were present for a long period. And it feels like the thought of reliving the past.

 The Jackson Lake Symposium, which has tried to fish federal reserve presidents since 1982, may answer the apparent debt issuance policy abuses. The helicopter money and the national infrastructure plans promoted by Biden, as well as the project financing plans for Latin America and the so-called northern triangle, from which a large part of the illegal immigrants who arrive in the United States come, are possibly insufficient in my opinion to recover the economy in a real way.

For several legislative reasons, they have been financing large companies to engulf their markets, and especially the energy and green energy business sectors. Patriot law, among them, makes it easy for politicians to benefit their like-minded lobbies.

The great pressure on the United States of America to produce its own lithium and to disengage from Chinese producers is the result of the boost that has been given to financing autonomous vehicle systems and their batteries. This has caused new landmines to open even on Indian reservations. This produces additional pollution in areas that are natural reserves product of the extraction of metals such as lithium, essential for the creation of batteries. The comparison of environmental costs compared to oil is much lower than this, and it is more beneficial in the long term if the environmental impact produced is controlled, it's recycling, and the consumption of water volume is reduced during the extraction process.

The G7 has reflected this model of thought and within this framework, it has become clear that money is "green" right now and will go to countries that are dyed to the core of this color. In other words, investors and lobbies managing more than 41 trillion dollars have called upon countries to take action by launching more ambitious policies in the face of “climate change”. Ultimately, those who take positions will be those who will be attractive for investment, while those who do not will be at a clear disadvantage. Making demands such as eliminating fossil fuel subsidies, reducing tariffs on “ecofriendly” products, increasing spending on green technologies, and reducing emissions by 2030 and a commitment to reach zero emissions by 2050.

This is a long-term investment orientation in our portfolio, the companies that pursue GreenTech. Hence, it is understood why APPLE, among others, has gotten in the way of electric autonomous cars and hired personnel from competing companies such as BMW. His latest signing, Ulrich Kranz, was behind the launch of two electric and hybrid BMW models and launched CANOO, a company that sought to launch an autonomous driving vehicle.

According to Link Securities, the bet of the Federal Reserve (FED) involves the inflation upsurge is temporary and its growth will slow down as the year progresses and the stagnant demand for many products and services is satisfied and the bottlenecks in distribution chains are resolved.

Many indices such as Dow Jones have not stopped growing along with the rest, including the European indices, hitting all-time highs. It would be absurd to go against the Sovereign Market, so it remains to be seen whether this inflation will subside or not. In the current complacency scenario, tensions could be found again in the bond market and the stock markets. According to experts from Renta4 or Bankinter, the unemployment and employment rates are expected not to increase and Powell's accommodative policy will make the current scenario remain bullish and very pro-stock market, just like the policy of the previous President Trump.

The attempt to flatten the curve by both central banks (FED and ECB), has caused the annual average bond yields of 10 and 30 years to free fall continuously and it is not profitable to invest in them. Such is so, that investors like Michael Blurry take positions against them through inverse ETFs and complex products opposed to them, thus multiplying their bet against them. The policies of both central banks play the same inflationary game, and the progressive withdrawal of these economic stimuli, or tapering, can and will severely affect both regions’ bonds. Although the forecasts are for growth and increased stimulus, yesterday's inflation data were not good enough to generate a tense speech in the Fed for its next meeting on June 16, so remains to be seen at the August meeting in "Jackson Hole" their preferred fishing club.

The truth is that in this green world, Bitcoin mining is quite incompatible and that is why Ethereum 2.0 models have greater continuity. This will convert BTC into a reserve equivalent to digital Gold, and ETH into the exchange currency, as well as other altcoins that can be found in various decentralized network models such as Tron or Polkadot, or Cardano, among others. There is little relevant news concerning Cryptos this week. The recovery of capital obtained by ransomware from US state companies; caused the pronouncement of the downward movement of the currency last week. Yesterday Bitcoin (USDBTC) tried to hold the $ 37,000 zone despite positive news such as ARKINVEST's support for crypto or the entry of Victory Capital into the cryptocurrency market associated with Hashdex and Nasdaq, sponsoring the launch of funds. of private placement based on Nasdaq and Crypto Index (NCI). The price of Ethereum (USDETH) tried to recover $ 3,000 during the previous weekend and has plummeted throughout the week in various bounces to the $ 2383 band.

The increase in industrial and energy activity has so far remained in the channel of $ 70 for WTI (USDOIL) and $ 72 for a barrel of Brent (UKOIL).

Happy Trading and Happy Friday!

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* This article only expresses my opinion and under no circumstances represents an investment recommendation, but a merely educational document.