Sunday, July 5, 2009
Cap and Trade
A new market is being created on Wall Street. Wall Street traders will love it. This is being born out of congress and the Senate at the desire of the most economic irresponsible president since FDR, our very own president.... Obama.
Obama is trying to control how much CEO's can make. He effectively fired the CEO of General Motors. And now, through the false premiss of global warming he is forcing American industries to reduce their carbon footprint. Of course, if any corporation is unable to do so it can buy emission credits from other industries that do not need all it's credits. Thus, a new Wall Street security is born. There will be carbon emission brokers who will bundle these credits, selling them for profit. Investors will invest.
But not only has Obama created a new market for securities, he is also effectively forcing corporations to move manufacturing over seas, thus eroding more American jobs. This will only drive up the cost of products while reducing American production. Then he think we should be happy about paying more and earning less. After all, we're saving the earth! I hope my readers realize that I said this in irony.
For example, let's say that there is a big corporation that manufactures widgets here in the United States. But under these new carbon cafe guidelines it is now exceeding it's limit of carbon emissions. This corporation has choices to make. One choice is to install expensive equipment that reduces carbon emissions. But this will drive the price of their product up so that they cannot compete with overseas widget makers. A second choice is to cut production so they do not exceed carbon emissions standards. But this also will drive the cost per unit up. A third choice is to buy emissions credits from a broker or some company who has extra. This also will drive the cost of each widget upward. A fourth choice is to shut down it's American plants, make it's widgets overseas, sell it's excess credits for a profit. The Widget Corporation will enjoy better profits, investors will love it, and Obama will be happy. But the guy in the American widget factory has no job. Therefore he will pay no taxes and the IRS will collect less revenue. But that's okay because we have printing presses to print more.
Of course, China is already debating whether to drop the dollar as an acceptable currency because of Obama's recent bail outs. China sees the dollar as some day being worthless. Say hello to international currency. Also, say hello to the mark of the beast. Do you think I'm full of bologna? read the New Testament.
Phony environmental issues will lead to the extinction of American free enterprise. More and more is falling under governmental control. The government is trying to tell auto makers how to make autos, builders how to build, Oil and gas companies how and where to drill, and there is much more. But tell me what the government has ever done successfully other than spend more than they take in. Government wants more of your hard earned money because they want to spend more. They want to bail out the irresponsible while penalizing those who are responsible. Government wants you to work your butt off so they it can confiscate what you have earned only to give it to those who sit on their butts.