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Posts Tagged ‘Cap-And-Trade’

waxman_knight

Climate change has a new Knight in Shining Armor – Henry Waxman (D-CA). His 900+ page Climate Bill, also known as Cap-and-Trade or more affectionately as Cap-and-Tax, is supposed to somehow stop, and possibly reverse, Global Warming. Waxman, and other supporters are obviously not true believers in the climate change cause, or CO2‘s role as a root cause.

It should be plainly obvious that an energy tax will have absolutely no effect on either global atmospheric concentrations of CO2, nor average temperatures. Not one additional inch of arctic ice will be gained. Snow will not magically form on Mount Kilimanjaro. Ocean levels are not about to drop. The money collected will have an impact on our energy consumption, but only until people discover the loopholes. In winter, they may use their fireplaces more often. Plans for homemade methanol and ethanol stills will receive far more hits on Google. Sales of candles and kerosene lamps will increase. Demand for meat will shift to cheaper cuts and more chicken will be purchased. Overall, poverty will increase. Not one of these things will “save the world.” Economies shift when under pressure. Like a bean-bag chair, pressure on one end causes a rise on the other.

The taxes raised may partially be used to fund “green” energy facilities, or find its way into researching better batteries, but it will only be a fraction. Like taxes collected for Social Security, Medicare, Medicaid, Cigarette, Alcohol, Gasoline, et. al., none of the money will be set aside for its intended purpose. All of the money be placed straight into the general fund, where it will be spent to further yet more government encroachment upon our liberties. Furthermore, requests for this money for its rightful purpose will be looked upon as an annoyance. Lawmakers will treat grant requests as they would a housefly. Attempts to audit the fund, should anyone be so bold, will be stonewalled and blocked by the same people who promise “transparency.” We are witnessing the birth of yet another Sorelian Myth.

Social Security is protected by such a myth. As such any attempt to repair the situation and perform the necessary economic triage is seen as heresy and fought tooth-and-nail. What is worse, like the taxes collected before based upon the promise to fix whatever dire emergency the Democrats created (usually out of thin air), since nothing will be done about the actual problem, it will remain. This will later be used to increase the tax amount. You will hear cries of “more must be done” echo through the halls of Congress, Academia, and on every MSM news program.

If Waxman and Obama were true believers, if they were honestly disciples of the “evil CO2” myth, then they would demand that the sources of this harmless molecule be cut off. A partial list of things that would be illegal would include: all fuels, barbecue grills, candles, leaf burning, carbonated beverages, alcoholic beverages, rubbing alcohol, leavened breads, Pop-Rocks, baking soda, food animals, household pets, styrofoam and packing peanuts, paper, plastics, glass production, metal production, house fires, forest fires, volcanoes, flatulence and exhaling.

Since cars and planes would no longer be possible, large sections of roadways, parking lots, and airports would be converted back into fertile soil and planted. Of course, without machinery, it would take some time to chip all the concrete and asphalt away…especially without exhaling. But look on the bright side, at least we would never get to read another 900 page bill again.

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A fresh story from Fox News’ Ed Barnes (link) has uncovered a conflict of interest in the President’s Cap and Trade push.

In 2000 and 2001, while Barack Obama served as a board member for a Chicago-based charitable foundation, he helped to fund a pioneering carbon trading exchange that is likely to fill a critical role in the controversial cap-and-trade carbon reduction scheme that President Obama is now trying to push rapidly through Congress.

During those two years, the Joyce Foundation gave nearly $1.1 million in two separate grants that were instrumental in developing and launching the privately-owned Chicago Climate Exchange, which now calls itself “North America’s only cap and trade system for all six greenhouse gases, with global affiliates and projects worldwide.”

The real question now is, what did the Joyce Foundation or the Chicago Climate Exchange do to help Obama get into office? The second question is, why didn’t the press do their job before this Statist was elected President?  I mean, it is not like this information wasn’t out there, or important.

Obama served as one of 12 directors on the Joyce Foundation board from July 1994 until December 2002, according to a Joyce foundation spokesman. But it was only in 2000 and 2001 that the foundation gave money to the Climate Exchange — funds deemed by the exchange itself to be fundamental to its successful launch, and in fact to its early survival.

Yep, change you can count on.

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The Federal Reserve announced yesterday that it was going to pump $1.2 Trillion dollars into the economy by purchasing long-term Treasury Bonds and mortgage securities. Oil prices, which had been hovering around $40 per barrel after bounding off its December 19th low of $32.40, have now increased about 60% from that low and over 20% above the recent average. While many economists do not believe that this new higher price can be sustained in view of the recession induced lower demand, I do not agree.

The Fed’s purchase of bonds and securities represents $1.2 Trillion worth of new dollars into our economy. More dollars competing for the same number of goods is inflationary, as evidenced by the dollar falling yesterday and today against a slew of world currencies. This, coupled with OPEC’s lowered production rates, should keep oil above the $50 mark for quite some time. When our economy begins to recover, that increase in demand should push oil up even further. Since gasoline prices follow oil, but with some delay due to our overabundant supply, expect price averages around $2.50 per gallon in late Spring, with further price surges this Summer to $3.00 – $3.25 per gallon.

When that happens, I’m sure we will see Congress going nuts, and again dragging the oil executives before a committee demanding to know what they are doing about the rising prices in the face of a still weak economy. Calls will emanate to tax their “windfall profits,” and this time they just might succeed. If they do, you can bet the farm that gas will once again hit $4.00 per gallon. Of course, if Obama is able to enact Cap-and-Trade, all energy prices should increase by a minimum of 35% after it takes effect.

No crystal ball, just basic economics. It is just a shame that no one in Congress paid attention in class.

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House Energy and Commerce Chairman Henry A. Waxman, plans on having two hearings per week until he completes a comprehensive revamping of the country’s environmental policy. This according to a Politico article published today (link). In the process he is ruffling a few feathers, most notably that of Charlie B. “Why don’t you mind your g*damned business” Rangel (D-NY) of the House Ways and Means Committee.

Turf battles are commonplace on Capitol Hill, especially over major legislation, but this one — should it shape up — could have a distinct impact on the substance of the legislation Congress enacts, on an issue that could divide Democrats more than any other in President Barack Obama’s agenda.

The basic goal is an overall reduction in carbon emissions, with rebates to help households pay for higher energy costs. But how to achieve that goal is the rub, and there are differences between the Waxman approach and those being offered by members of Rangel’s panel.

Obama and Speaker Nancy Pelosi (D-Calif.) both prefer a cap-and-trade measure — the president included hundreds of billions in revenue from this program in his first budget blueprint — giving Waxman an advantage at this early stage in the debate. Ways and Means members are considering a more direct tax on carbon emissions, with rebates on utility bills passed back to consumers.

“I think we are going to end up with a cap-and-trade bill,” Waxman told reporters last week, before reiterating his willingness to work with other committees of jurisdiction as Congress and the White House lurch toward a comprehensive climate policy.

Waxman, who was responsible for major changes to the 1990 Clean Air Act has now turned his attention to climate change. Initial CBO estimates for his cap-and-trade system show it generating between $50 and $300 billion during the first year of trading. This money would go to technology research, mitigating global warming, and providing offsets for consumer’s higher energy bills.

First, there is alot of room between $50 and $300 billion. I’ve written business plans before…who are the nitwits who came up with these numbers? That’s like some small business going into a bank, claiming first year sales between $50,000 and $3 million dollars! Second, all of it is a hidden tax. Everything that uses energy will increase in price to cover this money. Food will increase, gasoline will increase, heck, movie tickets will increase!

Getting to the destination for your increased taxes, technology research I can understand, but why does technology research require government funding? If it was any good, the private sector would be dumping money into it. Just research what happened to my previous field, fusion energy, when the government got involved (small tangent…thanks Al Gore…thanks alot…creep).

Mitigating global warming…mitigating global warming…hmm…assuming that global warming is a) happening, and b) controllable, does anyone have the slightest idea how to do that? [insert sound of chirping crickets]. Giant mirrors in the Sahara? Millions of snowmachines? Growing an Audrey-II?

Then the kicker, compensating people for rising energy prices. Huh? If all of our energy prices go up, and the government is taxing energy, and they are going to compensate us for our rising energy prices – then all we’re looking at is another money laundering scheme. The real question is who are they going to compensate. I’m positive it will not be you or me.

People in Waxman’s 30th District who still have their sanity: Write this nit-wit. Blow up his phone, fax, and email server. Fight this kookyness before someone loses an eye.

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