Two days after Trump II threatened to fire Treasury Chief Scott Bessent for not bullying Fed Chair Jay Powell sufficiently, Bessent waved a small magnet on television. He bragged about the Trump economy and the number of potential jobs at a Sumter, South Carolina rare earth magnet factory.
Trump II threatened Bessent, a gay man, at the U.S. Saudi Investment Conference where he offered his usual drivel that a year ago "our country was dead", "the economy was dead."
What happened a year ago under the Biden administration? That Sumter, South Carolina magnet plant received the "2024 Energy Transition Deal of the Year" from IJ Global.
Ara Partners, a global private equity firm dedicated to decarbonizing the industrial economy, announced that e-VAC Magnetics, LLC (“eVAC”) has been awarded IJ Global’s 2024 Energy Transition Deal of the Year (North America). The award recognizes eVac’s $335 million non-recourse financing for their first-of-its-kind U.S. permanent magnet manufacturing facility in Sumter County, South Carolina.Investopedia states:
Non-recourse finance involves a loan where repayment comes only from the project's earnings. Such loans are generally secured by collateral.Non-recourse loans are commonly used to finance commercial real estate and projects with long lead times. Unlike conventional loans, the repayment depends on the success of the project being funded.
Scott Bessent bragged about a Biden era sweetheart deal for a PEU affiliate that include giant federal grants and tax credits.
This landmark transaction, undertaken by Ara Partners and its portfolio company Vacuumschmelze GmbH & Co. KG (“VAC”), strengthens the domestic supply chain for electric vehicles, aerospace and defense, renewable energy, and other critical industries.
The project has also received strong federal and state support, including a Defense Production Act Title III grant from the Department of Defense and a $111.9 million Qualifying Advanced Energy Project Tax Credit.Politicians Red & Blue love PEU and their new TechGod/Cryptobro brethren. Increasingly, more are one as in the case of Scott Bessent (Key Square Group).
Trump II will usurp anything and anyone. Bessent is a quick study given he snatched a 2024 PEU sweetheart deal of the year and dragged it into Trump's Rule of 47.
Threatening to fire the gay guy in front a group of homophobic Saudis? That's piece of cake for Trump.
At some point Bessent will tire of eating Trump's verbal defecation and get his soul back. Until then, I trust our Treasury Secretary will continue to enjoy Trump's special buffet of discounts, derision, backhanded compliments, abuse, insults, snubs, barbs, slurs and punchlines.
