Sunday, June 28, 2009

Cap And Trade





The House of Representatives has now just passed the Waxman-Markey cap-and-trade carbon emissions control act. If it passes the Senate, the bill's pusher-in-chief (OBAMA) will sign it real fast. I have not read the bill, so I should not put my two cents in. But then, neither has any congressman read the now 1000-pages and more of this great amazing thing. So why have they passed it. For this reason alone I want to put my two cents worth in. The house has just passed a bill not knowing all of it and most likely not even half of it. We are not to imagine things, but we are to believe it is a good bill because we must trust the congressional assistants who wrote it. If anything it is a demonstration to "the power of believing anything" and the "Yes we can" dogma of Obama It is the eagerness to pass a bill that has not been read, much less understood. The congress reminds me of the rats following the pied piper, Obama is the piper and the congress is the rats. Most people will believe anything and then later they will have to pay the price. The price will be more taxes and a tight-ing of government controls. Doesn't the government have enough control over our lives?

There is one thing that is certain: The cap-and-trade program will increase the cost of energy in the United States. We are already paying through the nose for everything that we as a consumer buy. It is for the most part a huge tax increase on businesses and consumers, in the face of which, businesses will slow down to a crawl and consumers (that's you and me) will decrease our activity and buying. Things will for sure get tighter. You think we are having hard times now just wait. You are getting ready to see the economy really go bad, much worse than it is now. It is a back door Trojan ( The governments sneaky way of doing things) were the peoples taxes are increased dramatically and they do not even know it or see it coming and we still will follow the pied piper who is OBAMA. Obama and congressional leaders say the bill will create new "green" jobs. But increasing and raising the cost of doing business does not stimulate employment in general. It is just the reverse, it hampers it. This new bill will likely increase demands to build plants and factories outside the United States and even the particular jobs created by such mandates will come at the cost of other jobs. So what are we gaining except higher taxes and more regulations.

If you stop and think about it, this great bill so far, rests on a contrast between today's darkening days and the darker days of the Great Depression, when the Congress of that day and the president rushed through the Smoot-Hawley Tariff, thereby digging the depression deeper, marching America into a scary, institution-threatening poverty that only ended in the aftermath of World War II. Back in 1930, general political wisdom had it that protectionism protected the whole economy. There was little evidence for this. It was the outbreak of world war two that really saved the economy. The bill that was passed back in the 1930's might have helped some people but not the general Population. But protectionism did make believable sense on the surface, like the cap and trade bill does today. And remember back in those days, economists had not yet been bought off, like they are now, by the temptation of power and the appeal of political status, so almost to a man, they opposed the bill. The trouble today most economist are in the tank for they too are following the pied piper. Obama and his new lookouts love to talk of "science" as if the pronouncements of scientists are like prophecies and are totally protected from political pressure and economic incentives. The fact that those scientists and their projects are generally paid for with our tax dollars and tax-supported research grants doesn't faze today's political leaders. And yet how many of the president's men, or the current Congress, would buy the science supported by tobacco companies? How many would dilly-dally to dismiss the science paid for by oil companies? The double standard regarding the wrong function of science still leans to support those who like to do "great things and mighty" things in government, ( you know like Obama and the yes we can speeches) leaning the other way from those who move forward carefully concerning intrusive regulations, rules, taxes, and prohibiting things they have been not proved as wrong or dangerous. We have seen this in the 20th century. Think of all those economists and experts in the field of economics who pretended they could direct the economy and point it in the right direction. Now we may be witnessing it in the scientist who have wanted, put forth, and pushed this bill that many call the Waxman-Markey outrage. It is a outrage that is for sure.

The parallels here are striking. They are similar and share many characteristics. Today's so called leaders in economics and finance, until about nine months ago, confidently thought they could predict the future and manage the economy and eject risk with an detailed statistical collection. Not look what that got us, the government or should I say Obama controls the banks, auto industries, soon health care and many other things. At the rate things are going Obama and his congress will control everything. This is the same thing with today's climate scientists who aim to copy the long-term trends of the worldwide environment. They pretend they can predict where the "tipping points" are, and tell us why, with an air of stimulating certainty. How wrong they are and most Americans will agree with me. This global warming thing was endorsed and promoted by the same man that said he invented the internet. ( Al Gore ) Now that should tell you something. I can say this: the global warming debate most likely made him a few million.

I think that "global warming" may soon become an worldwide embarrassment. And then we will witness a whole lot of so called experts sneaking off to write their next research grant proposal in a well-deserved shame and disgrace leaving us, the tax payor, with higher taxes and funding their next project. The cap and trade bill when it fully kicks in will ensure the American people a long, ugly life to our deepening depression. ( oh I'm sorry our recession )
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