20 Years of bad energy policies cannot be undone overnight in a dream. What is the real story on energy, taxes, and renewables?

Majority Leader Chuck Schumer, right, talks to Senator Joe Manchin in March, 2022.
Photographer: Chip Somodevilla/Getty Images

Some things I just don’t get. Like music where you can’t understand the lyrics, and your head hurts just listening to a 30-second sound clip. Like hardcore punk rock bands like Black Flag, Biohazard, and who could forget Gorilla Biscuits.

So, when the renewable energy fad hit the mainstream, I could get along with the ideology of using all types of energy. It does not matter to me what type of energy we use, let’s just get the lowest kWh for our consumers, with the least amount of impact on the environment. As the renewables were using new technology it was ok to give them a tax break to kick start the programs. But the renewable energy sector relied on those subsidies to justify the story that “Renewable Energy” was more affordable than fossil fuels.

After 20 years and trillions spent around the world and all we have to show is higher electricity bills, seems like there was a left turn early on. We all can remember that Germany was the poster child of renewable energy. They did everything right, except giving up their energy independence for the sake of going “Greener” as I call it.

Germany has had the highest electricity prices in the world for years and printing money to offer tax incentives and charging consumers a “Renewable Energy Charge” all contributed to their inflation, recession, and energy crisis. Getting rid of their nuclear reactors, shutting down coal plants, and totally becoming dependent on Russia for most of their energy supply all played into Putin’s hand.

“You know that 20 years of bad energy policies cannot be undone overnight in a dream” is the brutal truth that the current administration does not understand. They are doubling down on printing more money and restricting the ability of the United States to achieve energy independence. With President Biden in Saudi Arabia asking the Saudis to pump more oil is embarrassing himself and our country. His self-declared war on U.S. energy parallels the leadership in Germany forcing renewables into the energy grid, even though the technology is not able to support low-cost kWh to consumers.

The Biden administration is now forced to admit that inflation is not “Transitory”. With the CPI index at 9.1%, this is the highest inflation number since November 1981.

CNBC Posted: “CPI delivered another shock, and as painful as June’s higher number is, equally as bad is the broadening sources of inflation,” said Robert Frick, corporate economist at Navy Federal Credit Union. “Though CPI’s spike is led by energy and food prices, which are largely global problems, prices continue to mount for domestic goods and services, from shelter to autos to apparel.”

The inflation reading could push the Federal Reserve into an even more aggressive position.

So now that the administration totally missed fixing the inflation before we got to this point, they are now doubling down on renewable energy, printing more money, and increasing taxes. Somewhere they left the economics 101 books at home and the dog at the book.

Cecilia Rouse, Council of Economic Advisers Chair, was interviewed on the Fox News Special report and said that the President is on the way to Saudi Arabia trying to get the gas prices down, planning on raising taxes, and reducing the deficit are all part of the plan to fight inflation.

On President Biden’s first stop in Israel, he was able to practice the new international trend of “fist bump” that his staffers came up with to avoid all shaking of hands when he lands in Saudi Arabia later this week. And this was their solution to avoid a photo opportunity of Biden shaking hands with the leaders of the country he called a pariah in the 2020 campaign.

President Biden in Israel getting practice for the infamous fist bump

“SALT’s not been in the talks at all — in the talks I’ve been in,” Manchin, a West Virginia Democrat, told reporters Wednesday.

Failing to include a SALT-break expansion in the long-stalled legislation is a risky proposition for Democrats, whose slim control of both chambers leaves little room for defections. Democrats representing high-tax districts — many of whom are in competitive races — have already pledged to withhold support for a tax-increase bill that doesn’t address SALT.

Manchin and Schumer have yet to release a comprehensive plan with the specifics about new spending on climate and health, offset by tax increases and prescription-drug savings. Schumer has said he wants to pass the bill this summer.

The feeling that we talked about when you listen to hardcore punk rock like the band Gorilla Biscuits, is just what I felt like today. Watching the administration totally decimate the United States energy market, and then fly to meet with Saudi Arabia is embarrassing. OPEC and OPEC + are at a limited excess capacity for the very same reasons that the U.S. can’t ramp up overnight. The lack of capital is due to the forced ESG investing policies by the greener advocates.

 Saudi Arabia is somewhat insulated from ESG investment due to their government structure. That did not stop them from following the ESG movement and investing billions into renewable energy rather than drilling programs. They did that as a calculated move on higher oil prices. I talked about that last year in some of my articles about their forecasts and budgets.

The world is now realizing that the renewable market is not as affordable as they claim, and a balance of all types of energy is a policy worth implementing. Using wind, solar, nuclear, hydro, geothermal, and fossil fuels is a good thing.

The administration has said that inflation is caused by the national deficit, supply chain, and Putin. Well, stop printing money, raising taxes, sending trillions around the world, and encourage and enable the U.S. energy market to do what it does best. That is delivering the lowest cost energy to the consumers with the least amount of impact on the environment.

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Please reach out to our team at any time for answers to your questions. Jay R. Young, CEO, King Operating

ForbesBooks Author of “The Upside of Investing in Oil and Gas

‍Source: King Operating