That's right, we've barely had time to spend our last $1,400 and already Biden is tossing another $2Tn onto the fire for "Infrastructure" but I have to agree with Fox on this one as most of it is not about Infrstructure at all but, unlike Fox, I will reserve judgment until the Bill is out later this afternoon.
Biden is looking to roll back the Corporate Tax cuts which led to a 20% jump in the market so, logically, won't the market drop 20% when the tax cuts get taken away? We'll see. And, to be fair, this isn't a quickie bill that pays out next week – this is an 8-year plan for spending that is being paid for by increasing Corporate Taxes for 15 years so, in the coming 8 years, we'll only go another $1Tn into debt on this plan – unless we elect another Republican President – then, as usual, the sky is the limit for debt spending and tax cuts.
Biden’s proposal includes $621Bn to modernize transportation infrastructure, $400Bn to help care for the aging and those with disabilities, $300Bn to boost the manufacturing industry, $213Bn on retrofitting and building affordable housing and $100Bn to expand broadband access, among other investments. (That Bastard!) The plan calls for modernizing 20,000 miles of roadway; building 500,000 electric-vehicle charging stations; replacing the country’s existing lead pipes and service lines; repairing aging schools; expanding home care for the elderly and disabled; and investing Billions of dollars in domestic semiconductor manufacturing or, according to Fox, it's Hitler, Mussilini and Stalin rolled into one!
Biden also proposes establishing a standard mandating that increasing portions of the country’s electricity be generated from low-carbon sources, with a goal of eliminating carbon emissions from the power grid by 2035. The proposal requires congressional approval. Mr. Biden’s plan also stresses equity in access to jobs and transportation options, including $20 billion for a new program that would reconnect neighborhoods cut off by past transportation investments as well as research funding for historically black colleges and universities. The plan calls for a national lab to be affiliated with an HBCU that will focus on climate. Will nobody stop this mad man?
Just a step cried the sad man
Take a look down at the madmanOnly fear breaks the silence
As we all kneel pray for guidance
Tread the road cross the abyss
Take a look down at the madness
Our machines feed the furnace
If they take us they will burn us – Knife Edge, ELP
Watch the Republicans freak out about this bill, which raises the Corporate Tax Rate from 21% that they don't pay (average collection is under 12%) to 28% that they won't pay so that Grandma and Grandpa can die with dignity while their kids have good manufacturing jobs (wasn't that something Trump pretended to want for a while?) that they can get to on better Public Transportation or in clean, electric vehicals while the kids are in modern schools not gettting lead poisoning from the water fountain – it's MADNESS!
Biden's goal of eliminating carbon emissions by 2035 is a direct attack on Koch Industries, the World's largest polluter and owners of the Republican Party, so expect this to get ugly very fast.
There are currently 115,000 gas stations in the US so 500,000 charging stations seems like it might be excessive but it does take longer to charge a car than it does to fill one up with gas, so maybe we need more of them but that means there's going to be a very interesting sector to bet on here with money going to land as well as the charging infrastructure and components – something we all need to keep our eye on.
All this has to happen over the next 8 years if we're to hit our 2035 goal of an all-electric vehicle fleet and that has to happen if we're to hit our goal of our species surviving on this planet past 2135 but things will get miserable long before then – that tipping point is right around the corner. Biden set up meetings on Climate Change with Russia and China and Fox said how dare he meet wtih oppressive regimes – as if we can just ignore them in the fight against global warming because we have ideological differences.
Until the Republicans understand that this issue transcends politics – we're never going to make real progress.
As you can see from the chart above, we are the proverbial frog in a pot of slowly boiling water, too stupid to get out before we die. Of course we can't "get out" of the planet so the next logical thing we should do is try to stop it from boiling – but there's no OFF switch to this one – we have to reverse a trend we've been building on since the Industrial Revolution.
Today is the end of the quarter so we're not expecting a drop in the markets. Quite the opposite, there's likely to be some "window dressing" to finish the quarter up near the highs and an extra $2Tn is a big help in that regard – it should at least be good for another day's gains.
As we predicted on Monday, Oil (/CL) is coming down nicely and we'll see if they keep bouncing off $60 or if it finally fails now that the Suez Canal is back up and running. We're already past $1,000 gains per contract at $60.50 and that's the stop now but hopefully we'll get back to $58.50 for $3,000 per contract gains – won't that be nice?