gsvol
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The Lieberman-Warner cap-and-trade approach to greenhouse gases makes us think derivatives. Analogous in more ways than one to the vaporous quality of financial derivatives, this new "market" depends on the underlying "value" of carbon and the ability to trade it as an "offset." One difference is that we already know this sort of program is an economic nightmare in Europe.
If undeterred by Europe's failure, our congressional best and brightest should note the impact as determined by a recent report by the Marshall Institute: The new regulations would be the equivalent of a permanent tax increase for the average American household, estimated to be $1,100 in 2008, rising to $1,437 by 2015, and $2,979 by 2050.
Hundreds of thousands of jobs would be lost, while electricity and natural gas prices would increase by anywhere from five to 50 percent over the next five years. Gasoline could increase as much as 145 percent. So much for President Obama's promise of "a tax cut for 95 percent of working Americans."
In summary, Congress and the Obama administration have proposed a program that addresses an unproven climate change problem by implementing a program proven to bring higher energy costs, job losses, and is every bit the financial scam that many financial derivatives have proved to be.
The "underlying asset" is nothing but a government-imposed regulatory scheme designed to enrich the traders, depress Western economies and promote the myth of man-made climate change.
If undeterred by Europe's failure, our congressional best and brightest should note the impact as determined by a recent report by the Marshall Institute: The new regulations would be the equivalent of a permanent tax increase for the average American household, estimated to be $1,100 in 2008, rising to $1,437 by 2015, and $2,979 by 2050.
Hundreds of thousands of jobs would be lost, while electricity and natural gas prices would increase by anywhere from five to 50 percent over the next five years. Gasoline could increase as much as 145 percent. So much for President Obama's promise of "a tax cut for 95 percent of working Americans."
In summary, Congress and the Obama administration have proposed a program that addresses an unproven climate change problem by implementing a program proven to bring higher energy costs, job losses, and is every bit the financial scam that many financial derivatives have proved to be.
The "underlying asset" is nothing but a government-imposed regulatory scheme designed to enrich the traders, depress Western economies and promote the myth of man-made climate change.
