Hey Influence Traders,
You might be having a good one, but President Biden and Nancy Pelosi are taking victory laps.
Pelosi was able to push back on objections from the progressive base to get a vote on the $1.2 trillion infrastructure package without moving forward on a vote for the $1.85 trillion boondoggle spending bill.
The House passed the infrastructure bill and now it moves to Biden’s desk for signature.
Biden said he will not sign the bill this weekend but that he will hold a signing ceremony “soon” so lots of people can attend.
In the politics game we call that “priorities.”
The legislation passed is intended to upgrade the nation’s transportation and utility infrastructure over the next five years.
The bill contains $550 billion in new spending to improve roads, bridges and rail, expand electric vehicle charging stations, expand broadband, and remove lead pipes.
To get the deal done, Pelosi got a group of moderates to agree to support the boondoggle bill if a forthcoming Congressional Budget Office assessment matches a cost analysis from the White House.
Thirteen Republicans voted in favor of the infrastructure bill, while six progressive Democrats voted against it to protest the spending bill not being voted on at the same time.
The spending bill thus remains on hold.
Trade Policy – Climate Focused
President Biden has promised to use trade policy as a tool to mitigate climate change.
He announced that the US and EU would try to limit carbon emissions as part of a trade deal on steel and aluminum.
The arrangement would use tariffs or other methods to encourage the production and trade of metals made with fewer carbon emissions and block dirty steel and aluminum from China.
If finalized, it would be the first time a U.S. trade agreement includes specific targets on carbon emissions.
Secretary of Commerce Gina Raimondo believes it will be good for the US because the “U.S. leads the world in our clean steel technology.”
That should make domestic steel producers happy.
Domestic Policy: Climate Focused
The US is taking carbon reduction seriously … with some laughter that will not make all domestic producers happy.
On Friday, Energy Secretary Jennifer Granholm laughed at a question about boosting America’s domestic oil production, calling it “hilarious."
That should not make domestic producers happy or help prices at the pump.
The US wants to rely on foreign producers.
Since taking office, Biden has …
- Suspended oil drilling leases in the Arctic National Wildlife Refuge and other federal oil leases
- Rejoined the Paris climate agreement, eliminated subsidies for the fossil fuel industry, revoked permits for the Keystone XL Pipeline and converted the government’s fleet of vehicles to electric power.
Clean Energy = Uranium
As we’ve stated, a true green wave is going to require uranium.
And it won’t be solely for large scale nuclear reactors.
Russia is experimenting with heating homes and hot water by pumping heat from small reactors directly into homes.
The Russians have put a small reactor in a barge floating off a Siberian town that creates direct residential heating by circulating water between the power plant and homes.
Instead of wasting the heat that is typically vented as steam through cooling towers, this method captures it.
Nuclear power is on the upswing.
I like the uranium producers, which is why Cameco Corp. (Ticker: CCJ) and Denison Mine (DNN) are going into the CAPITOL GAINS portfolio.
Cutting Through the Noise for You.