And China is making no bones about it:
China will not make a binding commitment to reduce carbon emissions, putting in jeopardy the prospects for a global pact on climate change.
Officials from Beijing told a UN conference in Bonn yesterday that China would increase its emissions to develop its economy rather than sign up to mandatory cuts.
Not only no cuts, but an increase in its emissions.
And Japan – where the Kyoto accord was signed – isn’t very enthused about cuts either:
Hopes that Copenhagen might deliver tougher carbon reduction targets were dashed further when Japan failed to make a significant commitment to reduce emissions.
Instead of the hoped for 15% cut, Japan said it would try for 2%.
The Bush Administration had insisted that it would not agree to mandatory cuts as long as developing nations increased emissions. The Obama Administration has taken a softer line, accepting that China and India could not be expected to make equal commitments to developed economies. However, Mr Stern recently said: “They do need to take significant national actions that they commit to internationally, that they quantify and that are ambitious.”
Well we now know how that “soft line” works, don’t we? China bows up and not only refuses to play but says it is going to increase its admission. And Japan felt confident enough to lower its target from 15 to 2. Not that I blame them or don’t think we should blow this whole thing off too.
But that’s the probem – the US will probably continue to pursue cap and trade because that’s been the left’s wet dream here for years. You see we use too much energy and we need to be punished – punished I tell you! And we’ll commit ourselves to the equivalent of bailing the ocean with a teaspoon while our economy strangles.
Ironic – in the real world “little green shoots” would thrive in increased CO2.
Nothing makes it clearer than a real world examples. From socialized Canada:
The Lower Mainland’s health authorities will have to dig more than $4 million a year out of their already stretched budgets to pay B.C.’s carbon tax and offset their carbon footprints.
Critics say the payments mean the government’s strategy to fight climate change will further exacerbate a crisis in health funding.
“You have public hospitals cutting services to pay a tax that goes to another 100 per cent government-owned agency,” NDP health critic Adrian Dix said.
“That just doesn’t make sense.”
Heh … it would really be funny if it wasn’t so absurd or headed in our direction like a runaway freight train.
Enjoy those “little green shoots” of growth, because they’re going to be as dead as the Mojave desert if “health care reform” and “cap and tax trade” are passed.
And don’t even try to throw the “these people have your best interest at heart” canard out there either:
Dix warned that some of the potential cuts – such as closing the ER at Mission Memorial Hospital – would actually increase carbon emissions by sending patients further afield.
“Obviously when you shut down regional centres it makes people travel farther to get to their health care facility,” he said.
Vancouver Coastal chief financial officer Duncan Campbell said his health authority believes the payments are appropriate and isn’t asking for any exemption from Victoria.
“For us to go back and ask for an exemption wouldn’t fit in well with our green care plans,” he said.
IOW, your health is secondary to their sacred green mission.
Freakin’ amazing. And yes, it is entirely possible you’d be treated the same way here when government controls health care and is collecting on “cap and trade”. Remember, it was Obama who said he didn’t believe in cap and trade exemptions.
[HT: Wm Teach, RWN]
Two nuts apparently equal vindication of the Department of Homeland Security report on “right-wing extremists”. And Paul Krugman, like many of his ilk, ignores the dearth of statistical support his premise has to make this claim:
But with the murder of Dr. George Tiller by an anti-abortion fanatic, closely followed by a shooting by a white supremacist at the United States Holocaust Memorial Museum, the analysis looks prescient.
There is, however, one important thing that the D.H.S. report didn’t say: Today, as in the early years of the Clinton administration but to an even greater extent, right-wing extremism is being systematically fed by the conservative media and political establishment.
I noticed that one of our more asinine and logic-challenged commenters has picked up these talking points now that they’ve been published. Big surprise.
Noticably missing from the Krugman litany of right-wing extremists is the converted muslim and black man who shot and killed a soldier outside a recruiting station in Little Rock, Arkansas. Using the Krugman statistical model I assume I can interpolate that into a rise in “muslim extremist violence” in the US. In fact, one could certainly credibly argue that it is a 100% increase in such violence.
But of course, people would laugh and point at me and say how utterly stupid it is to use one whacked out nut-job to try and brand a whole religion through implication.
Well, friends, that’s precisely what Mr. Krugman and the rest of the moonbats on the left are attempting with their nonsense. Michael warned you about it and here it is. Nevermind that the right-wing Weekly Standard was apparently on the “right-wing” whack job’s hit list. Facts only get in the way of an unsubstantiated rant.
It may be hard to believe [/snark], but it appears when Democrats speak of “fairness” they define it in their own special interest kind of way.
Take the talk about taxing your private health care benefits (something adamantly opposed by Obama during the campaign).
Originally it was going to be everyone. But other Democrats complained mightily to Senate Democrats who were considering such a tax to pay for the conservatively estimated 1.5 trillion necessary to pay for “health care reform” (PAYGO? HA!). So they modified it a bit – tax the “rich” – those who had the best of coverage. Always a popular populist fallback, Sen. Dems were sure that would work.
Alas it was soon discovered that a huge number of those holding “Cadillac” health care policies were unions. Yes, the special interest group in the pocket of the Dems (and vice versa) would be heavily hit by such a tax. As you might imagine, they were not happy.
Solution – drop this bad idea?
Of course not. Instead exempt the unions, you silly person:
Mr. Baucus officially floated his plans for a tax this week, only with a surprising twist: His levy will not apply to union plans, at least for the duration of existing contracts. In other words, Mr. Baucus intends to tax the health-care benefits only of those who didn’t spend a fortune electing Democrats to office. Sen. Ted Kennedy, who is circulating his own health-care reform, has also included provisions that will exempt unions from certain provisions.
The union carve-out is designed to allay the fears of many Democrats who remain outright hostile to a tax on health-care benefits, whether out of principle, political fear or union solidarity.
This is not your grandfather’s America. Pay czars who arbitrarily set arbitrary pay limits based on what they “think” (according to presidential spokesperson Robert Gibbs) is “fair”, a government appointed CEO for an auto company who admits he knows nothing about cars and the government hijacking of health care.
If you’re not concerned, you’re not paying attention.
It appears that could be the case. Kathy Shaidle:
The anti-semitism of von Brunn is the first thing one notices when visiting these bizarre websites. However, like those of most “white supremacists”, many of von Brunn’s political views track “Left” rather than “Right.” Clearly, a re-evaluation of these obsolete definitions is long overdue.
For example, he unleashed his hatred of both Presidents Bush and other “neo-conservatives” in online essays. As even some “progressives” such as the influential Adbusters magazine publicly admit, “neoconservative” is often used as a derogatory code word for “Jews”. As well, even a cursory glance at “white supremacist” writings reveals a hatred of, say, big corporations that is virtually indistinguishable from that of anti-globalization activists.
Shaidle’s point is valid (as is her point about the “obsolete definitons”). This guy wasn’t a product of “right-wing” or “left-wing” views, this guy was a hater of all things that even hinted of Jews, right or left. He was an anti-semite to the core and, frankly, a nut.
Trying to score political points with this tragedy seems badly strained at best and truly an example of how low our political discourse has fallen. Instead of talking about the tragedy of the loss of the security guard to a lunatic, the first thing some want to do is play politics, point fingers and stereotype. That says more about them (you know, the tolerant and non-judgmental types?) than those to whom they’re pointing.
At least that’s what the macro model I built says. It has some very sophisticated algorithms.
According to the model, the associated bandwidth cost for this post was enough to keep the blog hosting gang going and because of that, they kept making payments on all the computer equipment, power and rent/lease obligations they have associated with their hosting site, which in turn kept a computer retailer/power company/real estate firm from laying off folks while also paying those down the line from them today and having the same effect.
Go ahead – prove me wrong.
Is definitely worth a thousand words.
Or a chart.
Arthur Laffer is not amused:
Here we stand more than a year into a grave economic crisis with a projected budget deficit of 13% of GDP. That’s more than twice the size of the next largest deficit since World War II. And this projected deficit is the culmination of a year when the federal government, at taxpayers’ expense, acquired enormous stakes in the banking, auto, mortgage, health-care and insurance industries.
With the crisis, the ill-conceived government reactions, and the ensuing economic downturn, the unfunded liabilities of federal programs — such as Social Security, civil-service and military pensions, the Pension Benefit Guarantee Corporation, Medicare and Medicaid — are over the $100 trillion mark. With U.S. GDP and federal tax receipts at about $14 trillion and $2.4 trillion respectively, such a debt all but guarantees higher interest rates, massive tax increases, and partial default on government promises.
But as bad as the fiscal picture is, panic-driven monetary policies portend to have even more dire consequences. We can expect rapidly rising prices and much, much higher interest rates over the next four or five years, and a concomitant deleterious impact on output and employment not unlike the late 1970s.
And what have those “panic-driven monetary policies” brought us? Well, first the picture:
The chart is certainly no laffer.
Remember, we’re being told by “experts” (*cough* Krugman *cough*) that we’ll be able to handle this with no problem, really, if we just manage it properly. A tweak here, a tweak there and bingo – no inflation.
Hmmm … let’s get a little context here, shall we?
The percentage increase in the monetary base is the largest increase in the past 50 years by a factor of 10 (see chart nearby). It is so far outside the realm of our prior experiential base that historical comparisons are rendered difficult if not meaningless. The currency-in-circulation component of the monetary base — which prior to the expansion had comprised 95% of the monetary base — has risen by a little less than 10%, while bank reserves have increased almost 20-fold. Now the currency-in-circulation component of the monetary base is a smidgen less than 50% of the monetary base.
So that means that what? Well Laffer goes into a good explanation of bank reserves and how they function, etc. etc. – bottom line, banks are going to be loaning a bunch of money, thereby injecting liquidity into the marketplace.
With the present size of the monetary base, and …
With an increased trust in the overall banking system, the panic demand for money has begun to and should continue to recede. The dramatic drop in output and employment in the U.S. economy will also reduce the demand for money. Reduced demand for money combined with rapid growth in money is a surefire recipe for inflation and higher interest rates. The higher interest rates themselves will also further reduce the demand for money, thereby exacerbating inflationary pressures. It’s a catch-22.
And what does that mean could happen? Well again, we’re in uncharted territory, but the last time we had anything even similar, eh, not so good:
It’s difficult to estimate the magnitude of the inflationary and interest-rate consequences of the Fed’s actions because, frankly, we haven’t ever seen anything like this in the U.S. To date what’s happened is potentially far more inflationary than were the monetary policies of the 1970s, when the prime interest rate peaked at 21.5% and inflation peaked in the low double digits. Gold prices went from $35 per ounce to $850 per ounce, and the dollar collapsed on the foreign exchanges. It wasn’t a pretty picture.
Yeah. I remember it well. And here we are again – on steriods. So now what?
Per Laffer, the Fed must contract the money supply back to where it was plus a little increase for economic expansion. And if it can’t do that, it should increase the reserve requirement on banks to soak up the excess.
But Laffer doubts that can or will be done:
Alas, I doubt very much that the Fed will do what is necessary to guard against future inflation and higher interest rates. If the Fed were to reduce the monetary base by $1 trillion, it would need to sell a net $1 trillion in bonds. This would put the Fed in direct competition with Treasury’s planned issuance of about $2 trillion worth of bonds over the coming 12 months. Failed auctions would become the norm and bond prices would tumble, reflecting a massive oversupply of government bonds.
In addition, a rapid contraction of the monetary base as I propose would cause a contraction in bank lending, or at best limited expansion. This is exactly what happened in 2000 and 2001 when the Fed contracted the monetary base the last time. The economy quickly dipped into recession. While the short-term pain of a deepened recession is quite sharp, the long-term consequences of double-digit inflation are devastating. For Fed Chairman Ben Bernanke it’s a Hobson’s choice. For me the issue is how to protect assets for my grandchildren.
Yes friends – we’re in the best of hands. I’m just wondering how the present administration is going to attempt the blame shifting when the inevitable happens.
That was a question put to Americans in a poll:
The question flummoxes most Americans, a USA TODAY/Gallup Poll finds, which is among the reasons for the party’s sagging state and uncertain direction.
A 52% majority of those surveyed couldn’t come up with a name when asked to specify “the main person” who speaks for Republicans today.
Frankly, given the current crop of GOP “leaders” that’s probably a good thing.
It comes from James Delingpole of the UK Telegraph:
Modern China cares about as much about “anthropogenic global warming” as Chairman Mao did about providing his population with five-course steak dinners. AGW’s only use, as far as the Chinese are concerned, is as an ingenious device to suck up money and power from the gullible west.
There is the truth that “must not be spoken”. That is the bottom line and anyone who has followed this “debate” and hasn’t been able to discern precisely what Delingpole states as the truth hasn’t been paying attention.
China is not, let me repeat that – not – going to jeopardize its economic growth over something it flat doesn’t believe to be a problem. But it will seize every opportunity to “negotiate” free money and technology from the west – if we’ll pay for it, they’ll take it.
And the naive bunch we have running the show now, despite unheard of deficit spending, are more than willing to do precisely that – just watch.
They’re worse than a star-struck 16 year old girl screaming her lungs out on a rope line when it comes to Barack Obama. From Chris Matthews “thrill up my leg” to Newsweek editor Evan Thomas’s “he’s sort of God”, they’ve been so deep in the tank they’d have to undergo decompression to surface.
Some within the “journalistic community” are beginning to notice. Phil Bronstein points out “according to a new Pew Research Center poll, we are behaving…like fans”
It has been pathetic.
A recent and ongoing example of this continuing problem is the fictitious job “created and saved” claims the president has been making recently.
Any grade-school science student knows that non-falsifiable claims have no validity. Period. There is no metric through which “saved” jobs can be measured. None.
I mean, even a Democratic politician has figured it out:
The administration is playing a shell game with its “saved or created” job claims. Sen. Max Baucus, D-Mont., chairman of the Senate Finance Committee, said as much to the tax-challenged Timothy Geithner at a March hearing.
“You created a situation where you cannot be wrong,” Baucus told Geithner. “If the economy loses 2 million jobs over the next few years, you can say yes, but it would’ve lost 5.5 million jobs.”
So how has the media handled this? By faithfully parroting the numbers with absolutely no scrutiny. They report these non-falsifiable numbers as having validity. With 9.4% unemployment, the highest in 25 years, Obama’s 150,000 “saved or created” jobs sailed through the media without challenge.
The Wall Street Journal is one of the few media outlets that is questioning the validity of the president’s numbers. And it also points out the obvious over and above that:
It’s true that almost any government spending will create some jobs and save others. But as Milton Friedman once pointed out, that doesn’t tell you much: The government, after all, can create jobs by hiring people to dig holes and fill them in.
The Journal quotes Tony Fratto, a former official of the Bush administration, about the MIA MSM:
“You would think that any self-respecting White House press corps would show some of the same skepticism toward President Obama’s jobs claims that they did toward President Bush’s tax cuts,” says Mr. Fratto. “But I’m still waiting.”
Well, don’t hold your breath Mr. Fratto – I certainly don’t think we’re going to see the decompression chamber in use any time soon.
IBD clues us in on some other numbers floating around out there:
Monday’s announcement of a new and improved stimulus is just old wine in new bottles. In the first 100 days of the stimulus, some $44 billion was spent as jobs continued to hemorrhage. Now we’re asked to do more of the same and expect different results.
Obama’s 600,000 figure includes 125,000 temporary summer youth jobs and is based on economic projections, not an actual count. The only thing you can accurately count is the number of Americans working — and that’s going down fast.
You can just imagine how this will be reported. My guess is just as the White House press release frames it.