Sunday, August 29, 2010

Free market may kill "cap and trade" before it starts

From 21st Century Wire, via The Liberty Voice:

Plagued by a free fall in carbon emissions prices and the perennial failure of Washington to pass any binding Cap and Trade Bill, it seems that the Chicago Climate Exchange is on its last leg, announcing that it will be scaling back its operations.

Chicago Climate Exchange or CCX, is North America’s sole voluntary, legally binding greenhouse gas trading and carbon “offset” projects in North America and Brazil. Reuters reported on Aug 11th that Intercontinental Exchange Inc, the operating body for the CCX, will be scaling back major operations this month, a move that includes massive layoffs. This is likely due to the complete market free-fall of their only product… carbon emissions.

Anthony Watts from the climate watchdog website Watts Up With That posts a graph from the CCX which shows carbon prices dropping like a stone, bottoming out this week at the embarrassingly low figure of 10 cents per tonne. Compare this to trading prices during its brief heyday in May and June 2008 where market highs reached $5.85 and $7.40 respectively, and you can say that most investors will be evaluating carbon as one of today’s more worthless commodities [as any rational person would have pointed out in the first place].

Further down in the article, they get to the truth of the matter:

Like all government rigged quasi-commercial schemes, the only real beneficiaries are the initial shareholders- a special inner circle who are naturally ahead of the curve knowing about legislation and policy before it comes into existence. They are sometimes called the great and the good, the in-crowd, or the smartest men in the room (again, see Enron). Of these, almost all have jumped ship out of the market while their preferred shares- or in the case of the larger energy and manufacturing monopolies, their gratis “carbon allowances” given to them free by their governments- are still worth something. If you’re on the inside, it’s simple: get in early, make money and then get out.

Pointing out the obvious is always a painful thing in the world of human affairs. The real reason for the complete and total failure of the concept behind trading an atmospheric gas like CO2 is something few within the green block will dare to even mention now, and it’s the same reason why the whole movement will go down in history as one of the most
flamboyant efforts in the history of economics. It’s not just hubris. The whole idea behind making CO2 a commodity was to make it expensive and thus reduce the amount produced, which would (they hoped) reduce the effect of anthropogenic (man-made) global warming, or ‘climate change’ as it’s now commonly referred to.

There was only one massive problem with this equation- there has been no global warming since 1998. So despite the hundreds of millions, perhaps billions spent on research and computer models addressing this possibility, no scientist or body has been able to show that man’s CO2 contribution has had any effect on the global temperature. Another massive blind spot for climatists is their almost religious denial that the sun might have any effect on the earth’s climate (studies show that it does, of course)- a major sore spot in any debate on global warming.

So, there you have it. Another scam exposed. And like Humpty-Dumpty, "all the king's horses and all the king's men," after having gone to great lengths to make this rotten egg, still "could not put Humpty-Dumpty together again."

But it's not dead yet. There are rumors out of Washington that one of the reasons U.S. House Speaker Nancy Pelosi wants to hold a lame-duck session after the election is to pass a cap-and-trade bill while that Congress is not politically accountable. We need to be alert, to ensure that such a bill never passes.

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