Cap and Trade

What's cap and trade ?? It's a way for a government to control emissions by capping the amount of pollutant a company can emit. Permits are sold for a fee (basically a tax) which allows the company to emit the amount of pollutant on the permit. Companies that do not use all of their allowance may sell / trade their remainder to companies that have gone over their allowance. Some refer to it as a "Carbon Tax". Cap and trade came about based upon global warming / greenhouse gas emissions concerns. However, depending on which scientist you talk to on a given day, global warming may or may not be a problem. Some claim it is a scam for making the so-called "green industry" investors rich. Recently, we learned an EPA report disputing the effects of so-called "greenhouse gases" on global warming was suppressed by the Obama Administration. The report said the earth's temperatures are no longer rising, are stable, and may even be falling (read it http://news.cnet.com/8301-13578_3-10274412-38.html). A few countries have already implemented Cap and Trade with disappointing results. Australia is scrapping their carbon tax proposals because of what's happened in Spain and Germany. One of the reasons the Obama Administration is pushing this legislation is because they claim it will create millions of "green jobs" which will be good for our bad economy. However, since Spain implemented their own cap and trade, the country's unemployment rate has climbed to over 18%. For every 1 "green job" created, 2 jobs have been lost. Germany has seen emissions drop 18%. However, according to The Washington Post half of that has been due to a dramatic fall in it's industrial output. In other words, it's due to a decrease in manufacturing NOT an actual decrease in emissions. At the same time, German homeowners have seen their utility bills increase 25% while the electric companies are enjoying record profits.

In late June, the U.S. House of Representatives passed the American Clean Energy and Security Act (also know as the Waxman-Markey Bill) by a 219-212 vote (see how your Respresentative voted http://clerk.house.gov/evs/2009/roll477.xml). It would implement cap and trade in the U.S. The U.S. Senate is to take up the legislation soon. Mr. Obama has stated that "under my plan of a cap and trade system, electricity rates would necessarily skyrocket." Estimates are the average American home's anuual electricity bill would increase $150 to $3000. However, these numbers vary depending upon which "expert" you listen to. The $3000 number seems to be the worst case scenario. If the increase were to be $3000, that equates to about $250 per month. Why ?? Because cap and trade will lead to increased costs for the electric companies as they pay the cap fees (tax). They will pass that on to us the consumers. Can you afford an extra $250 per month on your electric bill ?? Also, under this plan, the cost of a new car is estimated to increase by $1300 due to new increased fuel mileage standards. However, the increased costs don't stop here. Think about it. All prices in the U.S. economy are driven by energy prices. Remember how the cost of everything shot up when fuel prices skyrocketed - same thing will happen due to this legislation. ALL U.S. businesses will see their costs of doing business increase. Who will they pass that along to ?? Yep ..... you guessed it - the sheep a.k.a. you and I ?? So, we know the sheep are gonna pay for this. Now - who are the wolves a.k.a. the money makers in this deal ??

1) Nancy Pelosi, Speaker of the House - has $50,000 -$100,000 invested in Clean Energy Fuels Corp. She could make a ton.

2) Rep. Edward Markey - author of the bill has $51,000 - $115,000 invested in Firsthand Technology Value Fund (solar energy manufacturers). The solar energy industry stands to make huge profits from this bill.

3) Al Gore - has a venture capital firm that is highly invested in a new software company that's making software that helps companies track emissions. He, too, will make a fortune.

Does anything about this group jump out at you ?? I believe these the same people that cried "Foul" and said the Bush Administration was corrupt. Does this sound like a conflict of interest to anyone but me ?? These and others in the "green industry", including General Electric, stand to make millions possibly even billions on this deal. They will get rich off our backs. What can we do about it ?? The U.S. Senate still has to vote on this bill. So, I want to encourage you to go to this link (http://www.senate.gov/) to find the contact information for your two Senators. Call or e-mail them and tell them to vote NO in opposition to the The American Clean Energy and Security Act. Why ?? Our economy is in one of it's worst recessions in history. This is not the time to be increasing energy costs. It will only make the economy worse. We can NOT afford it. Besides, global warming may or may not be an issue. Why spend billions on something that may not even exist ?? Well, obviously you would not. Unless of course your name is Pelosi, Markey, or Gore.

Oh yeah, there's one other thing in this bill that you need to know about. If it passes, it will give the Federal Government the authority to tell us what we can set our thermostats on. This bill is not about combating pollution and global warming -it's about control and greed. I actually called my Congressman, Jim Cooper - D, to get his office to explain why he voted for this bill. The guy that answered the phone stammered uncontrollably and transferred me to another staff member's voice mail. She hasn't returned my call. If I was a betting man, I'd bet she won't.

Monday's post will discuss Judge Sonia Sotomayor's Supreme Court nomination. Her Senate hearings begin next week. You will not want to miss it.