Showing posts with label Ukraine War. Show all posts
Showing posts with label Ukraine War. Show all posts

Saturday, April 2, 2022

America's idiotic green dream will end up in disaster just like Germany's

 Hans-Werner Sinn, here:

To cushion the twin phaseout of coal and nuclear, and to close supply gaps during the long transition to renewable energy, Germany decided to build a large number of additional gas-fired power plants. Even immediately before Russian forces invaded Ukraine, policymakers assumed that the gas for these facilities would always come from Russia, which supplied more than half of Germany’s needs. ...

Germany’s pledge to abandon coal and nuclear, the very energy sources that would have given it a degree of self-sufficiency and autonomy, has thus placed the country in great danger. Not so long ago, Germany was the world’s second-largest lignite producer, after China. And it easily could have procured the tiny amount of uranium needed to run its nuclear power plants, and stored it domestically for many years. ...

Despite the fact that turbines and photovoltaic panels now dot much of the landscape, in 2021 the share of wind and solar power in Germany’s total final energy consumption, which includes heating, industrial processing, and traffic, was a meager 6.7 per cent. And while wind and solar generated 29 per cent of the country’s electricity output, electricity itself accounted for only about a fifth of its final energy consumption. Germany would not have come close to achieving energy autonomy even if the renewables sector had expanded at twice the speed that it did. ...

If Germany suddenly halted Russian gas imports, gas-based residential heating systems, on which half the German population, approximately 40 million people, rely, and industrial processes that rely heavily on gas imports would break down before replacement energy became available. The government would be unlikely to survive the resulting economic chaos, public uproar, and outrage should gas become unavailable or heating costs rise dramatically. In fact, the likely scale of domestic disruption would call into question the cohesion of the Western response to the Ukraine war.

Monday, March 14, 2022

Gold fanatics never mention the potentially bad tax news

 The war in Ukraine has pushed more investors into gold, which some see as a “safe haven” in volatile times, and fueled a price rally.  ...

And because the IRS classifies metal coins as collectibles, ETF investors face the top 28% tax rate that applies to all collectibles when they sell shares.
 
The IRS outlined this thinking in a 2008 memo. (While the memo doesn’t carry the weight of official law, accountants have largely accepted its rationale, Lewis said.) ...
 
Stock investors generally pay one of three tax rates on their profits — 0%, 15% and 20%, the top rate — based on their income. These rates are preferential with respect to an investor’s regular income tax rates, of which there are seven (10%, 12%, 22%, 24%, 32%, 35% and 37%).

Conversely, the capital-gains tax rate on collectibles aligns with these seven [ordinary income tax] rates, up to a 28% maximum. That means an investor whose annual income puts them in the 12% tax bracket would pay a 12% tax rate on their collectibles profits; an investor in the 37% bracket would be capped at 28% on their collectibles profits.

Read the whole thing.

Tuesday, March 8, 2022

The UK and The Netherlands join Germany in crying uncle over Russian energy embargo to stop Ukraine war

CNBC here:

Germany, the Netherlands and the U.K. have appeared to back away from a coordinated Western embargo on Russian energy exports, however. ...

Western sanctions imposed on Russia over the invasion have so far been carefully constructed to avoid directly hitting the country’s energy exports, although there are already signs the measures are inadvertently prompting banks and traders to shun Russian crude. ...

“You can’t simply close down use of oil and gas overnight, even from Russia. That’s obviously not something that every country around the world can do,” Johnson said. ...