ion_avenger
07-14-2009, 08:13 PM
On June 26, the Democrat-controlled House narrowly passed sweeping legislation that calls for the government's first limits and taxes on carbon emissions, the so-called "Cap-and-Trade" bill that President Obama has insisted on. Experts on both sides of the issue, including President Obama, agree that Cap-and-Trade will result in higher energy prices, and that means higher prices for fuel, home heating and cooling and many other things we buy from food to cars to movie tickets, etc., etc.
The Cap-and-Trade bill passed by the House (219-212), while bad enough on its own, unfortunately contained a very onerous last-minute provision that calls for a tariff on imported goods from other countries that do not adopt similar cap-and-trade policies of their own. Even Obama opposed this tariff provision, but the Democrats (and eight Republicans) passed it anyway.
China, India and other large trading partners have no interest in adopting cap-and-trade. Therefore, the US Cap & Trade bill, if passed with the foreign tariff provision by the Senate, will almost certainly result in a global trade war. Some have called it the Smoot-Hawley bill of the 21st century if the tariff provision stays in. It remains to be seen if the Senate will also pass the bill over the next few weeks, which as of this writing seems doubtful, but who knows as Obama fights hard to see it become a reality.
The reason I chose to write about Cap-and-Trade again is the fact that news has escaped in the last two weeks that a recent Environmental Protection Agency (EPA) study found that global warming may NOT be happening at all, and that global temperatures have in fact been falling slightly over the last 11 years. Most importantly, this major study was buried by the EPA until its primary author went public with the information in late June.
While this aspect of the Cap-and-Trade bill may or may not get a lot of attention in the media just ahead, it is important for my readers to understand what is really going on in this sweeping legislation. The bottom line is, it is all about intrusive government control of our lives, from what cars we can drive to how much energy we can use in our homes and businesses. It is not about carbon emissions or global warming (if it exists). It's about expanding government and indirectly raising our taxes.
I'm quite sure that our more liberal readers and Obama supporters are ready to hit the "delete" button about now, if they haven't already. But I encourage everyone to read on, even if you think cap-and-trade is a good idea. If it is such a good idea, then why did the EPA bury a major study which concludes that global warming may not be happening, and that regulating carbon emissions is not needed? I'm certainly curious, and maybe you should be too.
The House of Representatives Cap & Trade Bill
On June 26, the House of Representatives narrowly passed H.R. 2998, the American Clean Energy and Security Act of 2009, by a vote of 219 to 212 with eight Republicans voting for it and 44 Democrats voting against it. The complex, 1,000+ page bill mandates a 17% cut in greenhouse gas emissions by 2020 and an 83% cut by 2050, reductions that will be accomplished by putting a price on carbon dioxide through a cap-and-trade system. It mandates that at least 20% of electricity comes from renewable sources and increased energy efficiency by 2020.
Basically, cap-and-trade works as follows. The government sets a limit or a "cap" on the amount of carbon dioxide (CO2) and other so-called "greenhouse gases" that can be emitted nationally. Companies and other groups that emit such gases are issued emission permits set by the government and are required to hold an equivalent number of "allowances" (or credits) which represent the right to emit a specific amount. Most importantly, those that emit these gases will have to pay for these allowances every year.
The total amount of allowances issued cannot exceed the government-determined cap, limiting total emissions to that level. Companies that need to increase their emission allowance must buy credits from those who pollute less. The sale and transfer of allowances is referred to as "trade." The theory is that those who emit less than their cap will be rewarded by selling their excess allowances to those who emit more, who will in turn have a monetary incentive to emit less over time. They will have to in any event, because the national "cap" goes down over time.
The foundational premise of cap-and-trade is that energy prices will rise, most likely significantly, as companies are forced to buy permits while at the same time they will be spending large amounts of money to substantially upgrade their systems to emit less greenhouse gases.
Read The Full Article Now >> (http://ce.investorsinsight.com/CT00249102MTc2ODE3MDQA.html)
The Cap-and-Trade bill passed by the House (219-212), while bad enough on its own, unfortunately contained a very onerous last-minute provision that calls for a tariff on imported goods from other countries that do not adopt similar cap-and-trade policies of their own. Even Obama opposed this tariff provision, but the Democrats (and eight Republicans) passed it anyway.
China, India and other large trading partners have no interest in adopting cap-and-trade. Therefore, the US Cap & Trade bill, if passed with the foreign tariff provision by the Senate, will almost certainly result in a global trade war. Some have called it the Smoot-Hawley bill of the 21st century if the tariff provision stays in. It remains to be seen if the Senate will also pass the bill over the next few weeks, which as of this writing seems doubtful, but who knows as Obama fights hard to see it become a reality.
The reason I chose to write about Cap-and-Trade again is the fact that news has escaped in the last two weeks that a recent Environmental Protection Agency (EPA) study found that global warming may NOT be happening at all, and that global temperatures have in fact been falling slightly over the last 11 years. Most importantly, this major study was buried by the EPA until its primary author went public with the information in late June.
While this aspect of the Cap-and-Trade bill may or may not get a lot of attention in the media just ahead, it is important for my readers to understand what is really going on in this sweeping legislation. The bottom line is, it is all about intrusive government control of our lives, from what cars we can drive to how much energy we can use in our homes and businesses. It is not about carbon emissions or global warming (if it exists). It's about expanding government and indirectly raising our taxes.
I'm quite sure that our more liberal readers and Obama supporters are ready to hit the "delete" button about now, if they haven't already. But I encourage everyone to read on, even if you think cap-and-trade is a good idea. If it is such a good idea, then why did the EPA bury a major study which concludes that global warming may not be happening, and that regulating carbon emissions is not needed? I'm certainly curious, and maybe you should be too.
The House of Representatives Cap & Trade Bill
On June 26, the House of Representatives narrowly passed H.R. 2998, the American Clean Energy and Security Act of 2009, by a vote of 219 to 212 with eight Republicans voting for it and 44 Democrats voting against it. The complex, 1,000+ page bill mandates a 17% cut in greenhouse gas emissions by 2020 and an 83% cut by 2050, reductions that will be accomplished by putting a price on carbon dioxide through a cap-and-trade system. It mandates that at least 20% of electricity comes from renewable sources and increased energy efficiency by 2020.
Basically, cap-and-trade works as follows. The government sets a limit or a "cap" on the amount of carbon dioxide (CO2) and other so-called "greenhouse gases" that can be emitted nationally. Companies and other groups that emit such gases are issued emission permits set by the government and are required to hold an equivalent number of "allowances" (or credits) which represent the right to emit a specific amount. Most importantly, those that emit these gases will have to pay for these allowances every year.
The total amount of allowances issued cannot exceed the government-determined cap, limiting total emissions to that level. Companies that need to increase their emission allowance must buy credits from those who pollute less. The sale and transfer of allowances is referred to as "trade." The theory is that those who emit less than their cap will be rewarded by selling their excess allowances to those who emit more, who will in turn have a monetary incentive to emit less over time. They will have to in any event, because the national "cap" goes down over time.
The foundational premise of cap-and-trade is that energy prices will rise, most likely significantly, as companies are forced to buy permits while at the same time they will be spending large amounts of money to substantially upgrade their systems to emit less greenhouse gases.
Read The Full Article Now >> (http://ce.investorsinsight.com/CT00249102MTc2ODE3MDQA.html)