While Elon Musk’s Waste Time With Twitter Volkswagen Seeks To Take Massive EV Market Share From Tesla, European Tariffs Will Be of Great Help To Volkswagen – June 1, 2022,
One of the reasons people hoard U.S dollars are the already draconian rules that exist in European Nations. When people talk about the fall of the U.S dollar or replacing the U.S dollar with a Gold Standard, I always have to remind people of the European WELFARE STATE, which is ALREADY deflationary in origin. My thoughts are that without the Euro-Dollar, Europe would fall, as most EU countries comprehend not to kill the market economy, but they’ve also created a DEFLATIONARY nightmare of regulating any and everything that produces wealth in a manner member of the EU deem as excessive.
Whenever there is a pocket in EU nations in which it is imagined too much wealth or too many savings to consumers is being afforded, European nations will often use their various governments to stop it. This also includes U.S auto manufacturing. U.S auto manufacturers have always found it hard in Europe, whereas European auto manufacturers often have their way in North America.
In Germany as an example, sure the country is solvent, but most of its innovations, I consider mostly bells and whistles. Why? Because there are a lot of government regulations in Germany, so much so that when you go to Germany and experience German culture, you can see from an ECONOMICS perspective how Hitler was able to infiltrate their political system with a united NATIONAL SOCIALISM narrative.
In the United States, opinions are all the rage, currently, the Democrat Party in the United States is attempting to force all Americans to capitulate to their Big Government narrative and they’re experiencing massive pushback. While, in Germany, Big Government is accepted, the only argument amongst Germans is what type of Big Government they want.
I bring this up because I’m not entirely sure, how taxes/Tariffs are collected regarding Tesla’s sold in Europe, but I would assume Volkswagen gets treated better in Europe than Tesla. One of the reasons a lot of U.S auto manufacturers have aggressively pushed to be in the China market is because of the barrier to entry to get into the EU market.
As we all know tariffs are deflationary, and nobody looks to Europe to lead the world in growth, at best Europe is an economic fixture, as more young people comprehend the free market and comprehend the European government’s role in stunting that economic growth, you’re starting to see some European countries open up their markets, but yet and still investors are reluctant to invest in many parts of Europe, because not everyone is on board with a more free-market economy.
Regarding Elon Musk, I personally wouldn’t waste time buying Twitter if I were him, because that money could be better spent evolving the Tesla experience. Elon has been battling with Leftists since he left California. He like many other billionaires, don’t want to be imagined as cruel to the poor and the Democrat political brand resonates with a lot of poor people, so Elon has been stuck playing this balancing act while trying to maintain a billion-dollar company.
There aren’t too many people who know who Herbert Diess is. Herbert Diess is the Chairman of the Management Board of Volkswagen Group and he has a low profile, his focus is simple, grow the Volkswagen brand, he appears to have little interest in influencing politics or social media. Whereas Elon Musk appears to be dabbling in multiple areas.
You can still buy Twitter followers in the year 2022, why would Elon Musk waste time with a social media company that will need a lot of help to reshape its image. Furthermore, when I was on Twitter, there were a lot of Left Wingers there, and appeasing Left Wingers when you’re a BILLIONAIRE is a lot of work because they ask dumb questions like why is Elon building spaceships to mars when people are starving in South Africa?
Sure the answer is simple MONEY can’t cure a stupid government, but Left Winger’s entire ideology revolves around BIG Government and assuming the private and public sectors should merge as one. National Socialism hasn’t gone away, the Left-wingers merely rebranded it and smacked it with a Conservative label, which is highly effective, because as you can see with Elon Musk, he’s terrified to tell people the truth for fear of sounding like he’s out of touch.
Meanwhile, Chairman of the Management Board of Volkswagen Group Herbert Diess currently has no such encumbrance to worry about. The more cars Volkswagen sells, the more taxes the European nations in the Volkswagen business will collect. By that, I mean all the income taxes sales taxes, and the other permits, regulations, and taxes that exist in Europe. Tesla on the other hand at best the EU collects tariff taxes and because EU Member States are already straddled with higher costs of living, that tariff being passed onto the consumer makes the EU customer more skeptical of their POTENTIAL Tesla purchase.
Meanwhile, in the United States, it’s easier for European auto manufacturers to steal market share from U.S auto manufacturers, in fact NOT building cars in the United States benefits EU automakers, because a lot of Americans DO NOT LIKE U.S made cars and will gladly pay the additional taxes for the prestige of driving a European made car.
So when people talk about the death of the U.S dollar, they must be talking about if America gets into a war and loses, because that’s the only way I see the U.S dollar being dumped. There are too many benefits for foreigners to hoard U.s dollars and I remind the reader that the Euro-dollar market allows people the ability to hoard U.S dollars without having to pay for the U.S government.
If we were to return to say a Gold Standard, every single country will have to pay honestly for their welfare state. I keep trying to remind people that a centralized digital currency will send too many INCORRECT pricing signals. sending people free digital tokens because the government likes you, is a strategy for RAMPANT malinvestment.
because let’s say I do whatever the government tells me to do, but I lack creativity in the marketplace, but according to government records I’m the model citizen worthy of CBDC’s well my investing and spending will deflate the economy. Furthermore, a lot of the existing monopolies on Industry are causing all sorts of deflation in the marketplace, right now. Imagine if the government is allowed to accelerate this?
Ignore the money, what will happen under a central bank digital currency(CBDC) will be SHORTAGES, as a CBDC will do all over the world what it already does in Europe, which is to reward ALL government regulations. The root cause of deflation in an economy are government regulations on the most productive. Elon Musk deep down, knows Left-wingers are idiots, but he can’t say that out loud, he can’t even behave that way out loud, he has to play nice so as not to offend people who follow him, who may not understand the political challenges talented INVENTORS AND INNOVATORS face, when they reach certain levels of success in the marketplace.
So in my opinion, it wouldn’t shock me in the least if a few years from now Volkswagen has a way larger share of the EV market.
Interesting times ahead!