Old Wizard

Questioning Berkshire Hathaway's BYD Purchase: Long-Term Economics?

Here is another indication that the espoused strategy by the administration to create new and higher paying jobs that last may be travelling along some bad assumptions. We have Warren Buffet making a big bet on a Chinese car company that also has a history in the lithium battery science and manufacturing. Will that company have union rules , the corporate tax structure and universal health care comparable to its competitors in the USA. Further will it contend with the US's safety regulations to establish its electric cars and higher energy lithium batteries? The current energy and investment strategy we are employing seems destined to fail on two accounts; creation of new jobs and reduction of our negative current account, a third of which is driven by the trade imbalance with China, if Buffet's bet proves correct. Ford is already negotiating with a Chinese company to provide batteries for its new electric car. The antedote is natural gas-driven automobiles. Conversion of existing models would be the quickest way for GM to get healthy, for new job creation, reduction of current account negative balances and reliance on foreign oil and reduction of carbon dioxide emissions. If buffet thought a US company would be a leader in high voltage, safe lithium batteries and electric cars wouldn't he make that bet on a US company? If the strategiy the administration is following results in more economic dominance by China and makes us more dependent on their loaning us money, will that portend better times for our people?