The market flipped out over the Biden Administration’s ban on LNG exports from the US.
Were they overreacting?
And what does this mean for investors?
Three weeks ago, the Biden administrations halted exports of LNG from the United States.
This would mean virtually unlimited LNG for the US, since they produce so much of it.
This also means supply will always exceed demand in the US, bringing the price down and keeping it there.
That is….IF we heard it correctly.
We almost never do.
Enter The Peter
As frequent listeners of the 10-Minute Contrarian Podcast know, I have a stable of geopolitical people I know and trust to give me the most accurate information possible.
Peter Zeihan is the one I quote the most. He is the most forward-facing (puts out daily YT videos, no paywalls), and often the most controversial for some of his stances.
A few of those stances include vaccines (loves em) and Bitcoin (he thinks it goes to zero).
But just like I’ve said before about Peter Schiff, those of you who want to get all trapped in your feels and write somebody off for an opinion on one particular issue are (rightfully so) going to miss out on the good stuff.
And with Peter Z, it’s 99% fire.
Plus, he doesn’t expand much on his vaccine and Bitcoin stuff, which makes me think he was never all that convicted about them in the first place, or has simply changed his mind and doesn’t want to discredit himself.
And he does lean liberal, and liberals can be…emotional at times, so just like the conservatives who were being emotional themselves when they wrote him off, he can be just as guilty sometimes of losing it a bit.
He really really hates Putin for example.
But at the end of the day he’s a giga-brain, and not when it comes to science-y tech-y nerdball things very few people care about. His giga-brain is on the world itself, and this makes him an important ally for investors who are not just interested in what’s going on, but interested in getting down to the truth of the matter.
Mainstream media is no help here, too lefty. Gold bugs and the like aren’t much better, too righty.
We need somebody who may not be dead neutral (no human being is), but at least somewhat neutral to sort this out for the common man, and doesn’t talk over our heads like some expert wonk on TV who talks like a politician.
And nobody does this better than Zeihan.
We need giga-brains in our corner. The media is full of nothing but mid-wits who do nothing but obey orders, just like they did in school.
Not helpful.
Here’s the skinny on the Biden LNG situation. Short video. I’ll leave commentary underneath.
2:00 – Showing why LNG has gotten so popular over time. But this also means we’re finding more ways to create it.
3:05 – This is the first I’m hearing on how it’s not a “ban”, but rather a pause on new facilities. Twitter got this so, SO very wrong. I doubt the market knew this either due to the way it was reacting.
5:02 – YES! Can we STFU about batteries already? Not a solution.
5:35 – As a lot of these things are, it’s temporary, and it’s done to be able to step back and see how things shake out, which I think is smart.
6:07 – Environmentalists are poorly educated and run on feels, so this isn’t hard to do. Just use a cute animal hand puppet to tell them what you’re doing, and they’ll probably support whatever it is. “Hi everybody, I’m Skippy the Tree Frog. And today, we’re going to nuke France in the name of climate change and anti-Trumpism!”. Environmentalists: “Yaaaaaayyyyyy, we love you Skippy!!”
6:17 – Another good example about how people flip out over nothing.
The Biden administration has done plenty of appalling and ridiculous things, but often at times we need more information than we’re given.
As investors, we can’t afford not to.
My outlook on LNG has not changed from my predictions episode a few weeks ago, I’m going to see how the year plays out, and then act accordingly.
— VP