Topic: Windfall Profits

European Commission President Ursula von der Leyen announces a proposal to utilize windfall profits from immobilized Russian Central Bank assets to fund Ukraine. The hosts characterize this as a criminal act of theft against counterparty assets following Russia's removal from the SWIFT system. They argue that this move undermines the legality of the international financial system.

Governor Gavin Newsom has called for a special legislative session on December 5th to pass a windfall profits tax on oil companies in California. Newsom claims the tax will return money to consumers, while the Western States Petroleum Association dismissed the move as a political stunt. Critics argue that state-level restrictions and refining issues are the primary drivers of California's high gas prices.

The European Commission proposed a cap on the revenues of low-cost electricity producers, such as wind and solar companies, whose profits have surged due to high gas-linked market prices. These "unexpected profits" are to be re-channeled to member states to support vulnerable households. This move is characterized by some as a form of price control or soft nationalization of the energy market.

Parallels are drawn between the current energy crisis and Jimmy Carter's 1979 push for a "solar bank" and the Windfall Profits Act. Time Magazine's recent coverage of "skyscraper lettuce" and "petri dish meat" is critiqued as an attempt to normalize industrial, lab-grown food under the guise of stopping climate change.

Senators Bernie Sanders, Ed Markey, and Kirsten Gillibrand introduced the "Make Billionaires Pay Act," proposing a 60% tax on windfall profits made by the ultra-wealthy during the pandemic. The bill would result in a $47 billion tax bill for Amazon CEO Jeff Bezos. The hosts speculate whether Joe Biden will be forced to adopt this policy as part of his campaign platform.