Juggling Dynamite

While much of the world remains preoccupied with impotent central bank grandstanding, the US presidential train wreck and reams of counter-productive nonsense, Tesla has now not only made and released the best rated car in history, that can be fueled for free from the sun with zero carbon emissions and zero air pollution–but now all of its vehicles also have the hardware needed for full self-driving capability at a safety level substantially greater than that of a human driver.

If you think it’s not a huge leap forward to take humans and all of our many distractions and physical impairments out of the driving equation, then you’ve not been paying attention to the people around you in traffic.

While pundits banter about how to spur innovation, this is what it actually looks like.  It’s already transforming human behavior, the economy and the planet for the better, and few people are yet aware or acknowledging the milestone.  Worse, some low lights, who have personally never created anything, are still bashing the achievement and explaining why it can never be done! Humans sure can be stubbornly dim when they want to be.

For those who wish to see that the future of world changing automobiles is already here, this is the real time video.  Pass on the good news.

Eight surround cameras provide 360 degrees of visibility around the car at up to 250 meters of range. Twelve updated ultrasonic sensors complement this vision, allowing for detection of both hard and soft objects at nearly twice the distance of the prior system. A forward-facing radar with enhanced processing provides additional data about the world on a redundant wavelength that is able to see through heavy rain, fog, dust and even the car ahead.

Lower energy costs + reduced carbon emissions = smart on every level.  Most of all, seeing smart systems in action along with adults who care enough to lead change,  gives children much needed hope for a sustainable future.

This project at Kew Beach Public School in Toronto is a is a community-owned solar rooftop array.  Solar panels mounted on the roof of the school create a 225-panel, 72 kW installation that, in combination with the school’s existing solar installation, generate and inject in the local grid the equivalent to one third of the school’s annual electricity use. The electricity is sold back to the grid with a portion of the funds being used to support green initiatives and eco-activities within the school and community.

Time for all schools and government buildings and to get with the program.  The world needs good growth and jobs that increase productivity and bring lasting benefits.  This is a no-brainer.  Here is a direct video link.

Fed Chair Yellen and her colleagues are fantasizing about ‘running the economy hot’.  As if central banks at zero rates, had that kind of power.

The trouble is that a secular downturn in global demand–caused by debt hangover, years of malinvestment in non-productive assets, aging demographics and low yields–are thwarting hopes and dreams of inflation topping 2%+. This is not the good old days, when plain old cutting rates spurred more consumption. Today low yields are having the opposite effect–causing people to spend less and save more.

The bond sell off in the past month, has created another buying opportunity for the highest quality North American credits (ie., government issues 1-10 years). The same cannot be said for corporate debt, where credit risk is likely to spike as the economy and sales weaken further, and an increasing number of over-levered, unprepared companies struggle to stay in the black.  At least governments can increase taxes when times get tough, companies don’t have that option.

Here is a big picture look at the US 10 year Treasury yield since 2005.  With the falling trend since 2007 still in tact (purple line) the back up from all time lows since July is no break out.  If the 1.80-2.0 range proves resistance, the lower for longer thesis will be confirmed once more.  The Bank of Canada is struggling with monetary impotence as well, see: Poloz poised to mark down recovery, stand pat on rates.

Steven Major, global head of fixed income research at HSBC, and David Bloom, global head of FX strategy at HSBC, discuss their view of lower Treasury yields in 2017. Here is a direct video link.