Monthly Archives: May 2010

AGW is Dead—Preacher and the Bootlegger-Part 3


Have you heard the story of the preacher and the bootlegger?  It’s a story where two different sets of moral views cause the preacher and the bootlegger to vote for the same thing. The preacher wants to ban booze. He votes for prohibition.  So does the bootlegger, because his business depends on prohibition.

So we have the preacher and the bootlegger saga underway for those favoring the imposition of Cap and Trade legislation.  The greenie wants to ban CO2 and he believes that by imposing cap and trade, his desire will be accomplish.  The corporate chief wants to ban CO2 because he believes his nuclear generated power will become a vast source of income for his company.  So, if you are John Rowe, CEO of Exelon, you might want to promote the Kerry/Liebermann cap and trade bill in order to make more money.  According to the Daily Caller blog, John Rowe said in an interview with Forbes magazine:

“Exelon needs that legislation to happen sooner rather than later. Without a carbon price of some sort, Exelon’s fortunes aren’t so bright…. Rowe acknowledges [that] ‘There’s nothing that’s going to drive Exelon’s profit in the next couple of years wildly. It just isn’t going to happen.’ Except, of course, carbon legislation. And because of that, the company views spending on lobbying for legislation almost like a capital expense.”

Around the same time as those Exelon revelations, Mike Morris, the CEO of America’s largest coal burning utility, American Electric Power (AEP), told Forbes that the scheme—which, by chance he, too, is promoting—would add billions in additional costs to his company, certainly, but he chuckled at the beauty of it: they get to pass those billions on to the ratepayer, with a little something on top for themselves. Under cost-recovery schemes giving a percentage for their troubles, the more it costs, the better.

These billions, which come from you—at least so long you don’t or can’t leave the energy companies, as Morris notes in his interview—would also in some cases be for no additional capital expenditure or other outlays or obligations on their part, outside of the army of lobbyists—er—”public affairs specialists,” working feverishly to get this burden enacted into law. “Exelon would gain simply because a price on carbon would raise the cost of production for fossil-fuel-powered electricity. Most of that would be passed on to customers, raising the wholesale price of power. Exelon’s revenues would rise, but its costs wouldn’t.”

One notes that Conoco-Phillips was for the House passed Waxman-Markey cap and trade bill until they discovered that the cost of US produced gasoline (something they make a lot of) would be made non-competitive versus imported gasoline.  So then they were against the Waxman-Markey bill.  The new bill—Kerry-Lieberman– applies import duties on imported gasoline.  Wonder of wonders, they are now for this one.

GE stands to gain by the wind and solar requirements in this new law, one would surmise, as they do make wind turbines.   Some companies are fully into alternate fuels, such as biodiesel or ethanol.  They have businesses where they have a technological advantage,  that will be profitable when fossil fuels are being arbitrarily priced out of the market.  Hasn’t President Obama promised to drive the coal operations out of business, by the way?

We have a number of companies, all expecting to profit from the imposition of cap and trade legislation.  The sponsors of the bill are spieling these companies as enlightened, good protectors of the global.   Well just like the bootlegger, one has to realize what are their real motives. They support cap and trade not based on science but on a short-term market place advantage.  They are delusional if they are not aware that in the long run, this system will destroy them too.

Do you think that these companies are looking out for your interests when they back Cap and Trade?

See also AGW is Dead–Long live Cap&Trade-Part 1

AGW is Dead–Cap &Trade Profiteers-Part 2

Cbdakota

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AGW is Dead—Cap&Trade Profiteers-Part 2


The “American Power Act”—aka, Cap and Trade was introduced in the Senate last week.   Despite the dramatic drop in the percentage of the people that believe we are facing a serious problem regarding man made global warming (AGW),  the liberals and their allies are pushing for reduction of CO2 via the use of cap and trade. There are serious questions being raised about who is Cap and Trade going to benefit.  If you know who the players are in the primary US cap and trade exchange (CCX), you may have answers to those questions.

Part 1 of this series pointed out that the politicians and the rent-seeking corporations are determined to foist cap and trade on us.  The current administration wants this because it is the way to take over the Energy Sector of our Nation’s economy. For those corporations willing to sponsor this legislation, the politicians are carving out positions where these compliant corporations are given an advantage over their competitors.   These corporations will boost their profits to the detriment of their competitors and at a cost to the consumers.

Lets look at the people inside and outside the government that are pushing the Cap and Trade system.

Investors.com, lays out the founding of the Chicago Climate Exchange (CCX) and who are the movers and shakers behind it.

The Chicago Climate Exchange (CCX) advertises itself as “North America’s only cap-and-trade system for all six greenhouse gases, with global affiliates and projects worldwide.”

The CCX provides the mechanism in trading the very pollution permits and carbon offsets the administration’s cap-and-trade proposals would impose by government mandate.

The money needed to seed the foundation of the CCX was provided by the Joyce Foundation in 2000 and 2001.

Barack Obama served on the board of the Joyce Foundation from 1994 to 2002 when the CCX startup grants were issued. As president, pushing cap-and-trade is one of his highest priorities. Now isn’t that special?

(the CCX founder) Richard Sandor, says he knew Obama well back in the day when the Joyce Foundation awarded money to the Kellogg Graduate School of Management at Northwestern University, where Sandor was a research professor. Sandor estimates that climate trading could be “a $10 trillion dollar market.”

So lucrative does this market appear, it attracted the attention of London-based Generation Investment Management, which purchased a stake in CCX and is now the fifth-largest shareholder.As we noted last year, Gore is co-founder of Generation Investment Management, which sells carbon offsets of dubious value that let rich polluters continue to pollute with a clear conscience.

Other founders include former Goldman Sachs partner David Blood, as well as Mark Ferguson and Peter Harris, also of Goldman Sachs. In 2006, CCX received a big boost when another investor bought a 10% stake on the prospect of making a great deal of money for itself. That investor was Goldman Sachs, now under the gun for selling financial instruments it knew were doomed to fail.

Prisonplanet adds more about the CCX and its dubious investors and management:

As we have documented, Maurice Strong, who is regularly credited as founding father of the modern environmental movement, serves on the board of directors of The Chicago Climate Exchange (CCX). Strong was a leading initiate of the Earth Summit in the early 90s, where the theory of global warming caused by CO2 generated by human activity was most notably advanced.

By using his considerable wealth and influence to lobby for cap and trade and a tax on CO2 emissions, Strong stood to enrich his company’s coffers to the tune of trillions if a binding agreement on carbon dioxide had been formulated in Copenhagen.

Strong and his close ally Al Gore come from a stable of elite groups that have long sought to use the environmental movement to advance their financial agenda.

Strong, who was groomed by David Rockefeller to eventually serve as Director of the Rockefeller Foundation, is also a member of the Bilderberg Group, the Trilateral Commission, the Council on Foreign Relations and the Club of Rome, the organization who infamously proposed in their 1991 report, The First Global Revolution, that fears about the environment should be exploited in order to usher in a global government.

So President Obama has once again allied himself with some questionable associates.  In view of this we can’t help but think that the people that will benefit from cap and trade aren’t likely to be the US citizens.

In upcoming blogs we will look at the cap and trade frauds that have been uncovered in Europe and let some of the rent seeking corporations tell us why they want cap and trade.

Cbdakota

AGW is Dead–Long Live Cap&Trade?-Part 1


Senator Graham said of the new bill just introduced into the Senate:

“It’s not a global warming bill to me.  Because global warming as a reason to pass legislation doesn’t exist any more.  There is no bipartisan support for a Cap-and-Trade bill based on global warming”.

So why does the misnamed “American Power Act”, despite what Graham said, have a Cap-and-Trade provision when there is no reason to limit CO2?

Graham’s thinking is correct with regard to man-made-global warming (AGW).  The AGW theory was thoroughly discredited when the movement’s leaders’ deceit was exposed by the Climategate scandal. The American people don’t want Cap-and-Trade.  Nor do the Chinese, the Indians, the Brazilian, etc.  Even the Europeans are now saying “no mas” to future cap and trade programs.

Cap-and-Trade is designed to ratchet up the price of fossil fuels (oil, natural gas, coal, etc) making them so expensive that we will be required to limit our use of gasoline, electricity, and home heating.  The citizens of the US are convinced that this is something they do not need to do.   And contrary to the warmists and the media spin, it’s not that they are uninformed but rather as they become more informed, they are less and less in favor of Cap-and-Trade.

But the political elites and many rent seeking corporations are determined to foist it on us.  In this case I do not believe they, “as the adults”, think they know better and must lead the “children” to a better place.   Believe me its not altruism, it is money and power that drives them.

The current administration appears to be after control of the Nation’s private sector.  They have voted themselves control of the medical sector.  They have introduced legislation to give them control of the financial sector (the part that they don’t already control).  Now it is energy.

History shows us that government has terrible a record of picking winners and losers in the people’s business.   Think of those nations where the government runs everything.  Put in mind, the Soviet Union, Cuba, and most recently, Greece.  Our nation has been successful because the market place (you and me) picks the winners.  Remember President Carter was going to save us in the 80tys, by funding new facilities to use coal to make synthetic oil. Seemed like a good idea but it was not economically viable.  But with Cap-and-Trade, the Obama government doesn’t care if good choices are made, money will roll into the IRS coffers in any event.

And the government will have control through regulations.  Every liberals dream—tax and regulate.

Senator Kerry says that this is a stronger bill because  some corporations were at the negotiation table and helped formulate this bill.   Yes,  they were, but these corporations are equally as insidious when they carve out dispensations for themselves so that they can profit at the expense of their competition and the people that got them up the ladder by purchasing their products.

In my next blog I will expand on the fraud taking place in Cap and Trade markets, and the disgusting things that some corporations are doing in support of this bill all in the name of profit.

Cbdakota