The nation killer: Cap-and-Trade Act
By Alan Caruba
There are many reasons why the Cap-and-Trade Act will harm the future of the nation, but among the worst is that it is entirely based on a lie. The very worst, however, is that it is a nation killer.
Cap-and-Trade is intended to set up a trade scheme in "carbon credits" that is estimated to be worth a trillion dollars if enacted. The rationale is the need to reduce greenhouse gas emissions, primarily carbon dioxide (CO2), to avoid global warming.
There is no global warming and no need to reduce carbon dioxide emissions.
The vast bulk of CO2 is natural. The Earth, via ocean warming and solar radiation, produces 97 per cent of the CO2 in the atmosphere. The amount of CO2 in the Earth's atmosphere is 386 parts per million. The atmosphere is essentially and overwhelmingly water vapor. CO2 plays no role in climate change.
Cap-and-Trade is a tax on energy use and Americans are constantly told that energy use in any form—coal, oil, natural gas, or nuclear—is bad. That's not just a lie, it is insane.
Americans are told that "renewable" or "clean" energy can replace the energy generated by the use of coal, natural gas, and by nuclear plants. Solar and wind energy can never achieve this. They depend on totally unpredictable sources, the sun and wind. All such "green energy" must have existing plants as backup.
Green energy is extremely expensive. Wind power costs 75 per cent more than power from coal. Solar energy is 570 per cent to 887 per cent more expensive than coal.
Green energy produces electricity. Oil is not used for this purpose, but one of the primary "reasons" offered for Cap-and-Trade is a reduction in the importation of oil. There is literally no connection between the two.
Cap-and-Trade authorizes the government to set a limit on the amount of carbon dioxide that can be produced. It then gives existing industries credits for the amount they are already producing. Those industries can then use the credits or trade them on exchanges set up for that purpose.
Renamed the "American Power Act", the bill put forth by Senators John Kerry (D-MA) and Joseph Lieberman (I-CT) borders on being an act of treason against all Americans.
The Institute for Energy Research commissioned Chamberlain Economics to do an economic and distributional analysis. Here are some of their findings:
Utilities and investment banks in the U.S. and Europe see carbon trading, a wholly fictitious new financial instrument, as a huge new profit center. Carbon trading could top $1 trillion a year by 2020.
This totally artificial "market" will create a "bubble" that, when it bursts, will dwarf the losses that have occurred in the sub-prime mortgage meltdown that caused the current financial crisis.
Meanwhile, hidden within the Cap-and-Trade bill is a provision prohibiting homeowners from selling their homes unless they completely retrofit their homes to comply with energy and water efficiency standards. The costs will, for many, make it impossible to sell their home.
A Wall Street Journal editorial stated that "The whole point of Cap-and-Trade is to hike the price of electricity and gas…These higher prices will show up not just in electricity bills or at the gas station, but in every manufactured good, from food to cars…Americans should know that those Members (of Congress) who vote for this climate bill are voting for what is likely to be the biggest tax in American history."
There no scientific or economic justification for the passage of Cap-and-Trade legislation. The President knows this. The Democrats in Congress know this. It's more than just a tax. It is a nation killer.
Alan Caruba writes a daily post at http://factsnotfantasy.blogspot.com. An author, business and science writer, he is the founder of The National Anxiety Center. © Alan Caruba, 2010
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