Come for the Politics, Stay for the Pathologies

Saturday, June 27, 2009

A Fake Solution for a Fake Problem

What’s the best way to solve a fake problem? With a fake solution, of course. Follow me through the maze of hoaxes foisted on the gullible masses.


Man-made Global Warming is simply the largest hoax conceived, ever. Goaded into action by hucksters like Al Gore and his man-made religion of global warming, people swallowed the idiocy of his claims that “The science is indisputable. The consensus is in.” If science were based on consensus, Galileo would not have “discovered” gravity, Einstein would not have “invented” the theory of relativity, and Christopher Columbus would never have sailed the sea of blue. For the last time: SCIENCE DOES NOT BOW TO CONSENSUS: SCIENCE CHALLENGES CONCENSUS. In addition to that inconvenient truth, an even more inconvenient truth is that there’s not even consensus anymore, as well documented by Kimberly Strassel in the WSJ.

First, carbon dioxide is not “causing” global warming and its reduction is not going to cure it. The earth has been cooling steadily now since 2001. Didn’t you get the memo? Oh, that’s right, Al hasn’t issued it yet. Secondly, if these buffoons think they can cure global warming by harnessing the energy of the sun and wind, why on earth don’t they believe that the SUN and SOLAR WIND STORMS might have more to do with heating/cooling the planet than the lame dogma of Dr. Global Warming? I can’t speak for all of them, but I can tell you why Al doesn’t believe the latter: it would queer his gig for selling billions of dollars of carbon credits.


So we have ginned up a fake crisis, to solve it get the geniuses in Washington to gin up a fake fix - Cap and Trade. Here’s how it works:

First you create something from nothing - “carbon credits”. Second, you create value for them by requiring people to have them. Third, you establish a market for them by making them fungible. That’s the formula in a nutshell: take something with no intrinsic value, have the government give them value, thereby creating a market for them. So simple a moron can do it

Is this beginning to remind you of anything? Subprime mortgage derivatives perhaps? They surely had no value until the government created them by requiring Fannie Mae and Freddie Mac to issue sub-prime mortgages: no bank up till then had a business model that said “let’s write mortgages for people we know can’t afford them.” Since Fannie and Freddie knew these were bad loans, they were anxious to bundle them up in a scam package that hid the real risk of the bundled mortgages. Yes, you can fault other banks for jumping on the band wagon, and I do, but don’t forget the genesis of this mortgage, its derivatives and its derivatives market. Squarely at the foot of Congress.

And now again with carbon credits we have Congress creating an intrinsically worthless product that Wall Street will bundle, buy, sell, insure and trade on speculatively. Can you say “carbon credit default swaps?” In fact that’s precisely why Congress is anxious to pass this Obamination. The power to determine who gets (and doesn’t get) credits – through regulatory rules and outright favor mongering – is determined by the men and women elected to the Congress of the United States. They, truly, are the kingmakers.

If Cap and Trade passes both houses, this bill will have created the perfect Ponzi scheme because it’s legal. Biggest winners? Wall Street – this time to include Al Gore, John Edwards and all their hedge fund cronies. Biggest losers, as usual, the US taxpayer.


I can’t believe there is honestly anyone out there that believes this isn’t going to cost them, but just in case…

This may not be called a “carbon tax”, but it will effectively place a carbon tax on every commodity produced or handled. This includes food, electricity, natural gas, gasoline, cars and all other consumer products. As reported by AP:

Everyone agrees that under this “cap-and-trade” system the cost of energy is expected to increase as electricity producers and industrial plants pay for increased efficiency, move toward greater use of renewable energy, pay for ways to capture carbon emissions or purchase pollution allowances.

They disagree, however, on how much of the added cost would be passed onto consumers. Democrats argue that much of the cost increase could be offset by other provisions in the bill.

Let’s be clear, rule number 1 in business – in order to stay in business – is you pass all costs on to the consumer. It simply does not work any other way. Everyone will be paying a carbon tax, or, if it makes you feel better, a “green dividend” on everything consumed. And remember who you’ll be paying it to: not the utility companies and the manufacturer – they’re just passing the costs on. You’ll be paying it to Al Gore and his new Wall Street buddies.

And to those making less than $200K – you’ll be paying a disproportionate share as your utility and food and gas bills are a much higher percentage of your income. So not only are you going to be charged a carbon tax, it’s a regressive tax. Maybe we should start referring to“Progressive Democrats” as “Regressive Democrats”.

There is a silver lining in all this though. With so much money allocated to ACORN for participation in the upcoming 2010 census they can take petitions with them and get everyone to sign one making it illegal for the utility companies to pass the costs of cap and trade on to anyone making less than $200k. Then, when the utilities file bankruptcy Obama and Rahm can nationalize them too! That should bring us up to par with Hugo and Venezuela.

Oh thank you, glorious leader!