Posted by: Snake Oil Baron | July 10, 2009

Cap and Trade – Viking Style

Scientific American has an interesting editorial about Obama’s Cap and Trade plot to reduce the temperature of the planet by starving off those who are deemed overly warm. Shockingly, they realize that there is a problem with it. Unsurprisingly, the editors suggest a ridiculous solution which solves nothing but might just help hide the farce of the plan long enough to get it implemented.

They don’t see the central problem of it all being based on a pack of lies called global warming. And please note that, unlike skeptics of this bunk who are ridiculed for being out of touch when they use the term “global warming” instead of anthropogenic climate change, the SciAm editors state in their concluding paragraph:

“Global warming is a reality, not an opinion.”

I am glad that the not-out-of-touch editors cleared that up. Though a criteria of what makes something a reality as opposed to an opinion might have been helpful. Neither good evidence nor successful predictions seem to be involved. The problem they accurately see is that the plan will damage the economy at a time that it really does not need yet another kick in the teeth from the Democratic party’s boot.

So what is their solution? Same cap and trade limitation on fossil energy production but give the money from the auction of these energy production/import rights directly to the consumer/taxpayer/milk cow to offset the increase in energy costs created by having energy companies bid up the prices on energy. No damage to the economy right?

Ignoring the ludicrous idea that government could steal money from one source and give it to another without taking a massive cut or even just saying “the Hell with it” and deciding that the state can spend it much more wisely than Johny Lunchpail; you might have noticed something wrong with this cunning plan. The increase in energy costs will be more than the amount of money raised from auctioning off carbon rights. The limitation on energy will mean that there is less of the stuff than people and companies need. That creates a shortage so consumers who are able to pay more will and those who can’t are SOOL. You are covered by your government energy stamps for the added cost to the producer of buying the right to use carbon but you are not given any extra to make up for the fact that Government Motors can buy energy at a much better price than you can. But you are still being taxed to fund Government Motors as they buy your share of energy.

But don’t worry. The government will see what is happening and will hear your pain. They will step in to fix the price of energy so that everyone can afford it. As the price of everything rises because there is limited energy to produce anything, the value of that fixed rate will decline to the point that there is no point in companies buying the rights to produce energy and production will stop. But again the government will smell your suffering and come to the rescue. They will run the energy production companies – the oil refineries, the power plants and such. All of it will come under state control which will be a remarkable success. It might be worth noting that all of the nations that produce fossil fuels via state owned enterprises have been running their industries into a state of decay because when oil prices are high they have better things to spend the profits on than preventative maintenance and development and when the prices are low they can’t afford such luxuries as preventative maintenance and development.

So the editors of Scientific American just recommended that America turn itself into a failed petro state in order to prevent “global warming”. If the planet hadn’t been cooling for the last decade or so – or if someone’s climate model had actually predicted that that would happen – it might be an easier sell. But let’s not write off the idea too quickly. It seems to me that people have been proving for some time that prosperous and democratic societies with modern technologies and personal liberties are both unwanted and, in the long-term, unstable. Perhaps letting the world degenerate first into North Korea, then into a collection of neo-Assyrian empires, with the associated life of clay pots, wood smoke and the king’s spears through your heart if you blaspheme him is just what we all really want. Granted, it will take a lot of killings to get the population down to a level where that is sustainable but it shouldn’t take long.


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