Politics = Institutionalized Fraud

Marketers have ethics which are similar to scientists. Marketing is a science.

Selling solar and wind power to the public is not marketing. It is false advertising and most likely fraud.  A series of class action legal cases or state prosecuted cases are required by those damaged by false claims of public utilities for electricity produced by wind and solar power, and also fraudulent warranties (performance contracts) on wind and solar panel products. Don’t hold your breath.

According to one scientist, “The problem with solar panels, for example, is that the materials that make up the solar panel degrade with heat, and it is the degradation that makes them fail their warranty before the guaranteed lifetime. Diffusion of dopants in the n-doped or p-doped Silicon is enhanced by heat, which causes the transistor n-p-n or p-n-p junctions to fail by leaking electrons the wrong direction.  There are solutions to all of these problems, but they are expensive. So it isn’t that solar energy cannot work at high temperature, but that reliable solar energy is more much expensive than equivalent reliability in, say, coal or gas-driven power plants. This leaves solar in a niche market, say, where it isn’t possible to be on the grid, since you are in a tent on the Teal Mountains of Antarctica or a hut in the Sahel. The [photovoltaic] bankruptcies are driven by promises for performance which can’t be delivered, and there are all sorts of economic reasons for making such promises. Often, paying the warranties is a small penalty compared to acquiring a rapidly improving or high-turnover business. (Tupperware comes to mind.)”

Lawyers employed to defend utility companies and “green” product companies write contracts (warranties) which limit or eliminate their client’s liability for moral hazard, tort damages and indemnification. The probability is very low that such cases will be tried prior to significant political regime change.

A company CEO, board and investors could easily plan that the risk of warranty claims (damages) is trivial and manageable compared to their upside benefits which could be expected to result from federal government loan guarantees or grants (green shoots) for starting a solar panel or wind company, not to mention the federal and state tax rebates and deferrals… all documented in a highly valued SEC registered public stock offering. Minimal long term risk vs manifold short term revenue. Like an investment banker insuring the risk of counterparty default or loaning billions of taxpayer dollars to a sovereign nation, they will take the money and move on.

So long as the DOJ and most judges are politically appointed and influenced, the prospect of winning a court case against a politically-driven project – such as a DOE-funded solar panel company – is not good while the political regime is in power. The prospect is similar to having AG Eric Holder’s DOJ investigate Obama’s fake birth certificate… i.e. approaching zero. Another example: the prospect that Associate Justice Elena Kagen would do the just and fair thing and recuse herself from judging the constitutionality of Obamacare was near zero, even though previously as Obama’s Solicitor General, Kagen helped prepare the legal defense for Obamacare prior to it becoming law. Another example is the practical impossibility of finding a Federal Attorney or Inspector General to investigate the foreign funding of the Obama campaign. Or, the possibility is near zero that Obama or Holder will be held accountable for “Fast and Furious” DOJ-approved gun sales to drug cartels resulting in many deaths including one federal officer. The Party in power has too much power, controls the bully pulpit, mass media and thereby controls public mindshare.

It is not too cynical to state that politics as practiced in America today is massive, institutionalized fraud.  It is worse than that because so few of the population at large realize what is going on.

fraud/frôd/

Noun:

1. Wrongful or criminal deception intended to result in financial or personal gain.

2. A person or thing intended to deceive others, typically by unjustifiably claiming or being credited with accomplishments or qualities.

moral hazard

The risk that a party to a transaction has not entered into the contract in good faith, has provided misleading information, or has an incentive to take unusual risks in a desperate attempt to earn a profit before the contract settles.

About budbromley

Life sciences executive, retired
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