Do not throw good money after bad

For transparency and my own agenda, I strongly dislike our previous government, the Social Democrats with the support of the Green Party and the tacit acceptance of the Left Party, who ruled Sweden for 8 years. At the last election, I voted for the current government. It was the previous government that went to bed with Northvolt and invested enormous amounts of tax dollars.

According to Bloomberg, is the battery developer and manufacturer Northvolt extremely close to arranging financing for a $271,500,000 bailout that would reduce the risk of bankruptcy if the money is arranged this week. Two Swedish pension companies, the pension giant AMF and the state AP funds, may consider investing even more of the pension savings to save Northvolt. Since before, the two companies have invested $724,100,000 of the Swedish pension savings money. Money at risk of being lost in a bankruptcy. Any word that contains green in any form is kryptonite for politicians and people who handle tax dollars.

Founded in 2016, Northvolt was up and running on December 29, 2021 when they produced their first lithium-ion battery. With full production lines and staffing, the facility expected to produce 60 GWh of batteries with 3,000 employees. During the first three quarters of 2023, the factory output was 79.8 MWh. 

Even the world's most perfect teenager understands that continuing to invest in Northvolt is like going to the vet with a roasted chicken.

At some point, the right behavior must be rewarded

For transparency and my own agenda, I strongly dislike our previous government, the Social Democrats with the support of the Green Party and the tacit acceptance of the Left Party, who ruled Sweden for 8 years. At the last election, I voted for the current government.

In Sweden, there is a very popular form of savings called Investment Save Account (ISK). ISK is an account type where you can easily save in funds, shares and other securities without having to declare sales and dividends.

Instead, an annual standard tax is paid. You pay 30% tax on the standard income. For the income year 2023, the standard income was 2.94% of the capital base. The capital base, i.e. the holding of ISK, is taxed at 30% of the value. The result is that the tax is 0.882% of the value of the holding, the capital base, because 30% of 2.94% is 0.882%.

Starting next year, the current government has decided that the first $13,500 will be tax-free in ISK accounts and endowment insurances in Sweden. This has caused one of the parties in opposition, the Left Party, to go ballistic. Instead of seeing the benefits of that Average Joe being able to save up a $13,500 buffer, all the Left Party sees is a tax loss.

The Left Party consider that not everyone can save up a buffer of $13,500, which they say makes this tax cut unequal and unfair. I would add that not everyone wants to save up $13,500. Why does the Left Party always want to reward those who don't want to do the work and take responsibility for their own future at the expense of those who do?

How did we end up here?

Our shop is located on one of Stockholm's avenues, where the driving lanes are separated by trees and grass. Last week it rained non-stop for 48 hours and the ground was thoroughly saturated. After the first day, the soil could not absorb the water and the soil became muddy and waterlogged.

During the afternoon of the second day of rain, staff from the city's parks department came by and began watering the lawn, despite ongoing rain and waterlogged ground.

The fact that the ground was watered despite water-saturated soil after almost 38 hours rain was because the measure was planned.

Logical thinking has completely ceased.

Sweden's central bank will most likely disappoint

The Swedish inflation rate according to CPIF (Consumer Price Index with fixed interest rate) was 1.1% in September, which is a decrease from August when it was 1.2%. The information is in line with SBC's preliminary inflation figures that came a week ago. According to price statistician Filip Hellberg at the Central Bureau of Statistics (SCB), the reason why inflation fell in September is that fuel prices have fallen. It is also in line with the average forecast among analysts, according to Bloomberg's compilation.

The fact that CPIF was again lower than Sweden's central bank AKA Riksbanken's target of a CPIF inflation of 2.0% increases the pressure on Riksbanken to lower the policy rate by 50 basis points on November 7, 2024.

Central Bank Governor Erik Thedeén confirms that the quote "Inflation has come down and shows signs of stabilizing. Inflation forecasts has stood up quite well over the past six months." unquote. At the same time, Erik Thedeén repeats that right now there is a lot of focus on CPIF where energy prices are excluded as they move a lot and are assumed to be shaky going forward. Energy prices have fallen by almost 30% in the past year and CPIF are very sensitive to energy prices, continues Erik Thedeén.

Erik Thedeén also emphasizes that there is no mechanical formula for Riksbanken to use when deciding on changes in the policy rate, it is an overall assessment. The Governor of Riksbanken concludes by saying that the forecasts for the policy rate, the so-called interest rate path, are not a promise. Quote “There is still considerable uncertainty. Among other things, geopolitical developments can affect inflation and make further cuts unreasonable." unquote.

Personally, I think that Erik Thedeén and his colleagues have already decided that they will not lower the Swedish policy rate by 50 points and that the warning about a geopolitical development and the exchange rate of the krona is only a way of trying to excuse themselves.

It is not my or SVT's business to tell Americans what is best for them

The Swedish MSM is doing its utmost to portray Donald Trump as the evil one and Kamala Harris as the good one. As a resident and citizen of Sweden, I am far too poorly versed in American politics to have any opinion on who is the best America.

It's unbelievable how many Swedes who completely lack basic knowledge about the party leaders in the eight political parties that make up the Swedish parliament are all of a sudden experts on the 2 American candidates.

In a report on February 11, 2020 before the primary election in New Hampshire, the US correspondent from the state-owned Swedish television (SVT) Stefan Asberg said quote "Our friend Joe Biden" unquote.

SVT, which is 100% tax-financed, ambition is quote "to review and portray the issues that are important to you. SVT operates in the service of the public and is run independently in relation to political, commercial and other interests in society." unquote.