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Billionaire investor George Soros, who has demonized fossil fuels for years through his think tanks and political contributions, seems to have warmed up to Big Coal now that stocks are dirt cheap.

 

The left-wing hedge fund legend has raised eyebrows with major purchases of stock in two large coal companies, firms his critics say he helped bring to their knees. While buying low is the hallmark of any shrewd investor, buying coal goes against the political and environmental ideology Soros has long espoused.

 

“I find it very interesting that George Soros would buy shares in those coal companies,” said Daniel Simmons, vice president for Policy at the Washington DC-based free market energy group, Institute for Energy Research. “I am confused given the non profits he funds and how hard they have worked to demonize coal.”

 

Soros, whose Climate Policy Initiative think tank recently urged the world to stop using fossil fuels in general and coal in particular, snapped up 1 million shares of Peabody Energy and half a million shares of Arch Coal, giving him significant stakes in what’s left of the U.S. coal industry.

 

The trades would have cost Soros a lot more six years ago, when Peabody, which trades under the symbol BTU, was at about $90 a share. Under the Obama administration, which has punished the coal industry with costly mandates and regulation, Peabody shares have fallen to around $1.

 

The only description of the left is that they're fools and tools.

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That the present administration is involved in crony capitalism is not news.  That the cover is coming off is.  EPA's proposed regulations on coal burning plants forced down the  price of coal.  SCOTUS ruled that the EPA must submit scientific studies to back up the reasons for regulations.  So far, none of the new coal regs. Lower courts could shoot down the regs.  If EPA doesn't comply back up goes coal prices.

 

Just as well, enviros are pushing for green renewable only power.  Spain heavily invested -- electricity soared to 250 percent of US average, contributing to their present financial difficulties.  Germany went even further -- resulting in electricity costs 291 percent more than the average US cost.  Germany is now using US coal, their own dirtier lignite, buying nuclear generated power from France and trying to figure what to do next.  As a reminder, our area has lower than average costs for electricity. 

With a heads up from Obama, he awarded his major contributor with his plan before he initiated it. So, Soros began Shorting American Coal Stocks, riding share prices down, making money hand over fist. His buddy Pres.Ob. was letting/helping him get on the band wagon. Here's how it unfolded.

 

Obama gave teeth to EPA in a mandate early in his first term. Ordering EPA to make it impossible for Coal fired electric generating companies to meet New EPA air emissions standards. With that said, one of the first coal fired power generation companies to cry Uncle & give up without updating their facilities to Nat.Gas (as insider information has it, no win situation for the Government run Company) TVA announced that the Colbert Fossil Fuels (Coal) facility, Barton, AL, will be closing it doors in 2016, due to the expense to update the facility, using tax payer money, to meet Obama mandated EPA standards.

 

So Shoals Residents, how about enjoying your new Electricity Bills in 2017, very possible exceeding current cost  $$$$'s by 100% - 200% conservatively. The more coal power companies go out of business, the less low cost electricity available for customers, Supply & Demand.. Direstraits illustrates this quite well. 

 

I can't blame Soros for picking up shares in Cheap Coal. Now is time to pick up a few share of coal companies (ones that are not about to go bankrupt), the rest of the Developing World still uses and will continue to use Coal, as their primary energy source. Their economies just have to pick up to make it pay off.

 

With the fracking revolution, coal plants could have been replaced by combined cycle plants with little economic disruption. The EPA with its new methane rules may change that. I guess the American public hasn't suffered enough to pay penance for becoming the most wealthy and successful country in the 20th Century.

 

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