Wednesday, January 28, 2009

Cap and Trade: Here We Go Again!

Maybe it is just my cynical nature, but given the British experience with Cap and Trade permit trading (or free giveaways) and no reduction in C02, I continue to believe that this public policy is the next financial “ponzi scheme” following closely on the heals of the current derivative, collateral debt obligation, free money for everyone Big Corporate-Big Government scheme. Too many Corporations, too many Goldman Sachs/Morgan Stanley, too many California politicians, and eviromentalists supporting the Cap and Trade approach to ghg amelioratiion and too few Americans understanding how it works, or does not! Sound familiar?

If the American people feel very strongly about curtailing global warming in the next 20-50 years, then why doesn’t this odd coalition of Congressman Waxman/Senator Boxer and other politicos, Republicans and Democrats alike, big corporations, and environmental groups propose direct tax increases to limit constituent/consumer energy consumption. Making goods and services more expensive will curtail their use, reducing ghgs. And most of us understand this because it is transparent. When stuff gets too expensive we all consume less of it.

Instead of attacking the rational market that drove oil prices into the mid $100’s/b through strong, world-wide demand, which created huge demand destruction for gasoline when American consumers reduced their consumption by driving a billion miles less in 2008 than 2009, why not learn the important lesson this taught us? Market’s work. They are not perfect, but they are better than government devised programs supported by politicians, big business, and environmentalists.

Make no mistake, Cap and Trade is a ponzi scheme or money machine for government and the businesses who have positioned themselves to benefit from it. Nancy Pelosi, quoted in the January 22nd 2009 San Fransisco Chronicle said:
“I believe we have to because we see that as a source of revenue” (Cap and Trade Bills).

Once again, reinforcing Eisenhower’s farewell dictim: “Beware the military-industrial complex.” This Common Sense Curmudgeon warns you to beware of the politico-enviro-corporate complex behind Cap and Trade. The potential future bailout of this program could dwarf the current economic crisis coinciding, as it absolutely will, with the huge demand for Social Security and Medicare payments by retiring baby boomers (p.s. Government doesn't have the money to cover these liabilities).

Oh sure, business and government couldn’t see that coming either!

For more: “Cap and Charade” “The Fight over Money from Cap and Trade”

1 comment:

  1. Cap and Trade sounds too perfect, too sugary sweet with the risk of promoting decay. I'd rather call it "Cap'N Trade" after one of my favorite childhood cereals. I agree that a straight forward tax is more transparent than the "Cap'N Trade" schemes. Elected officials however don't like to have voting records that show they raised taxes. The natural gas NYMEX already has the scent of mercaptan, imagine a multi billion dollar Cap'N Trade industry. BUT, a tax won't guarantee lower GHG emissions. Either have C&T schemes elswhere in the world. IF a carbon tax is imposed in the US, then I would also propose a carbon tax be applied to all imported goods as a fair and global approach to change behavior. This is not a trade barrier, but a global solution to a global problem, after all, I'm told the world is now flat.


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