The Next Big Short
This is the next BIG SHORT
"The Big Short's" Steve Eisman Reveals What The Next Big Short Is by Tyler Durden
I was reading some stuff about regulations and how the gov't has screwed up life. Some of my reading stems from Ralph Nader's fiction _Unsafe at Any Speed_. That regulation policy, at least for automobiles went in the wrong direction. That instead of placing regulations onto the backs of the mfgrs, the onus should be on the consumer. In that, we enact these stupid laws for stupid people. Look at the catalytic converter. Charge people a tax on their car if it doesn't have a pollution control item. At some point you'll get tired of the tax and finally buy a catalytic converter.
Now, the auto industry controls manufacturing and development of the catalytic converter, and you get it from them. They in turn make you pay what ever price they want for the device. They have a narrow supply of these converters and there's no competition. They recoup 100% of their money plus a profit.
Platinum goes into these converters, almost exclusively, and it's kept secret. The auto industry has a deal with the US gov't to keep the price of platinum up or at a manageable level (from jewelers, folks like us). They also have a deal the recovery of old or busted catalytic converters. Considered a hazardous item, according to the EPA, so it's disposed of deliberately and in the Auto industry's favor. Nearly all the Platinum is recovered. Again, saving dollars. Gov't regulates who, how, when you can sell your catalytic converter back--wait, you can't, they recover that device from your used or decrepit car. If Midas or somebody like that has to replace your converter, you pay for the disposal. Why? You've just handed them enough platinum that you should be payed for it.
Now, if the gov't regulation was pointed at the consumer then the catalytic converter industry would have burgeoned. Many companies, many people would be employed instead of one company! Also, it's not a hazmat issue. It's carbon. It's platinum wrapped up in cheap metal. Now there are restrictions governing the use, selling, mining of platinum; considered a rare earth metal. Can be used in so many applications other than teeth braces (not any more) thanks to the space industry, but both smelters and the gov't agents keep it artificially inflated than gold. Largely in part because the American auto industry is a special interest group that gained special considerations. They in effect killed a cottage industry where they don't even need to be involved.
Same thing with seat belts. Why are seat belts mandatory? Wear them if you want. It's your life. Seat belts don't affect the other driver. They don't influence driving safety or decision making. They keep your dead body in the car. Saving the lowest common denominator to continue stealing our oxygen.
But as a rare earth metal, platinum is difficult to use despite its many, many products and applications. It's safe. It can be cheaper to complement other designs, systems, and products with little or no effort. In fact, platinum would solve many of our toxic chemical application issues. It is a natural binding element and catalyst, and can be recovered at 80 or 90%. That's a huge savings. Just like aluminum, it can be reused time and again. It's strong as steel. It can be used in solar panels as well as in sun shading lasting our lifetime, extending the life of both products and applications.
Again, thanks to liars like Ralph Nader, the EPA, and Congress we can't take advantage of this element. Instead, we've crushed the rare earth element industry in the US so we must buy from China. China is buying up rare earth material sites in the US. I thought rare earth sites were considered National Security! The California state gov't finally killed that processing plant Molycorps.
- Matt Caldwell
