Welcome to our Friday mailbag edition!
Every week, we receive some great questions from your fellow readers on our recently published essays. And every Friday, I answer as many as I can.
This week, I respond to a question about a source I used in a previous issue. And I answer some questions about the safety – and future – of central bank digital currencies (CBDCs).
But first up, I want to kick things off with a topic that was top of readers’ minds this week…
Electric vehicles (EVs) and the energy transition.
As regular readers know, one of the profit sectors I follow is New Energy.
It’s one of our five investment themes for The Great Distortion between the financial markets and the real economy. And EVs are a big part of that theme.
But a number of you have expressed your concerns about our focus on EVs. Like reader David W., who wonders if my insights on EVs are politically motivated…
I’m a subscriber of your work and have become concerned that your strong belief that EVs and the Green New Deal are truly logical solutions for our nation and world energy solutions.
Just look at Texas a year or so ago when windmills froze and of course the sun wasn’t much in a snow and ice storm.
As an investor, I certainly hope your opinion and advice is not politically motivated… if so I will cancel my subscription immediately. Let me know!
– David W.
So, I wanted to say a few things about EVs and the topic of the energy sector in general, as well as the transition to what we call New Energy.
First of all… Thank you, David, and everyone else who wrote in about this topic!
I want to underscore that we follow the money and not political views, in our research and investment ideas for you.
Now, politics may impact money flow of course, but it’s still about money flow to us.
EVs won’t replace gas-fueled cars tomorrow, of course. But there are changes happening in the entire electrification space right now. They’re moving fast, and they will be evolving for years.
These include vast electricity and electric charging infrastructure building and updating…
As well as more efficient and renewable methods of producing electricity and power. Those include solar, wind, nuclear, and geo-thermal energy.
Now, I want to be clear. Fossil fuels aren’t going away any time soon, certainly not in my lifetime.
However, we’re always watching for more efficient and cleaner methods and technologies to contain carbon emissions as much as possible.
And these are being deployed by oil and natural gas companies… as well as other forms of energy companies.
To me, what’s happening in the energy sector as a whole, from a transition standpoint, is one of the most exciting and profitable trends we are fortunate to be living with today.
Part of that excitement means knowing where to look. That’s why I hit the road recently, to see where a lot of that money is flowing in the energy space… And I put my boots on the ground at the first gas station in America to no longer pump gasoline.
If you’re interested in what this means for the future of energy… and what it could mean for your portfolio… Then check out my video report right here. (Hint: you could potentially double, even triple, your money over the next 12 months.)
Next up, a reader asks to source some figures I referenced in the July 15 mailbag edition regarding EV emissions…
Nomi, you said, “For example, Argonne National Laboratory, a U.S. Department of Energy multidisciplinary science and engineering research center, found that, between 2011 and 2019, EVs cumulatively offset 1.4 billion gallons of gasoline consumption.”
Could you please give the actual report that said this?
– Paul M.
Hi Paul. Thank you for asking about that source report.
As you may know, I’m an investigative journalist, among other things.
And so, it is important to me and to my team that we provide information to you that is accurate. And from sources that I deem to be dedicated to accurate, data-driven research.
That’s the case for this report. As I mentioned, it comes from the Argonne National Laboratory. It’s a lab run for the U.S. Department of Energy. And it’s dedicated to science and engineering research.
Here’s the link to that report. You’ll find the information we cited on pages 15-16.
It’s nice to see a reader who cares about the facts as much as I do!
Now, moving on… As regular readers know, I often write about central bank digital currencies (CBDCs) and cryptocurrencies like Bitcoin.
But readers Julio and Wayne are concerned. They wonder what would happen to digital currencies if the power grid shuts down…
I just wonder what would happen if the electrical grid shuts down due to bad weather, terrorist attack, malfunction, etc.. for days, weeks or months. People won’t have access to their money to buy groceries, medicine, gasoline, etc. That’s if the government decides to change to digital currency.
– Julio R.
What happens if during another or ultimate economic shut-down the electric power or internet is shut-down? The WHO recently declared another emergency of international concern claiming smallpox as the reason! Obviously, they are trying to get rid of the working and middle class.
Moreover, the current plan-demic is nothing but a “ruse” to shut down the economy to hide the “$30 trillion” debt and the amount of money the Federal Reserve has stolen.
How is Bitcoin safe, or usable under such circumstances? Wouldn’t cash or some other physical medium of exchange (like gold, silver, or bartering) be more practical?
Hi, Julio and Wayne. Thank you for writing in. Those are good questions.
We can also ask the same thing about today’s ATM’s and other electronic banking services.
When there’s no power, for whatever reason, anything that runs on electricity doesn’t function (besides, say, things like back-up generators).
Here’s a short story from my own experience…
During the Thomas Fire in California a few years ago, I had to leave my house with very little notice.
The town of Ojai, where I lived, became effectively encircled with fires. Pumps at gas stations didn’t work, nor did Wi-Fi in the area.
My point is that in an emergency situation, everything grinds down. Which is why it’s important to be prepared.
With respect to the path of CBDCs, as with ATMs and digital banking…
I can’t give personalized advice. But in general, I think it’s important to always have cold hard cash as well as some precious metals from a physical wealth preservation perspective handy.
It’s equally important to keep your car’s gas tank filled or your EV charged. And to keep extra basic food, and other necessities, in stock at your home.
And that’s it for this week’s mailbag! Thanks again to everyone who wrote in.
If I didn’t get to your question this week, look out for my response in a future Friday mailbag edition.
I do my best to respond to as many of your questions and comments as I can. Just remember, I can’t give personal investment advice.
And if there are any other topics you’d like me to write about, I’d love to hear from you. You can write me at [email protected].
In the meantime, have a fantastic weekend!
Editor, Inside Wall Street with Nomi Prins