Free Markets, Free People

Bruce McQuain

To The Left – Don’t Get Too Giddy

A lot of high-fives on the left concerning a portion of the budget dealing with energy.  The Center For American Progress, in a post entitled “Energy Budget Is Sunlight After Eight Years of Darkness” says:

The most significant energy proposal in this budget is the inclusion of revenue in 2012 from the auction of all greenhouse gas emission allowances to major polluters under a cap-and-trade system. The budget assumes that this program will raise $646 billion between 2012 and 2019. Some of these funds would create jobs via a $120 billion investment in clean energy technologies over the same period. The auction revenue would pay for a “global warming tax cut” for working families with $526 billion. It would fund Making Work Pay, which provides a refundable income-tax credit for low-income working families. Any remaining funds would go to other families and businesses to offset higher energy prices.

In other words, CAP believes that adding huge additional costs onto the already high cost of producing goods, services and energy will “create jobs” to offset those lost apparently. And the money collected will be redistributed to make things fair.

As so-called members of the “reality based community”, you have to wonder if they’ve ever bothered taking off the rose colored glasses and glanced around the real world.

Alan Wood in Australia asks:

CAN the Senate save Kevin Rudd and Penny Wong from their global warming folly? It can, and it might, if it rejects the Government’s attempts to prematurely lock Australia into a flawed carbon trading scheme. Ask yourself, do you believe that the worst global recession since the Depression, with job losses accelerating, is the time for Australia to introduce a carbon trading scheme that will squeeze growth, jobs and investment? Business certainly doesn’t.

Is there anyone in the Congress who can do the same for Barack Obama? Probably not.  Do they understand that the carbon trading schemes in place around the world are literally melting down?  Again, probably not.

And jobs?  Well right here at home we can learn from the impact of the draconian regulations and resultant costs imposed on industry by such schemes  and what that means.  California, as usual, provides the case study:

California regulators Thursday adopted the world’s first mandatory measures to control highly potent greenhouse gases emitted by the computer manufacturing industry. “The financial impact is going to be severe,” Gus Ballis, a spokesman for chip maker NEC Electronics America Inc., a subsidiary of NEC Electronics Corp. in Japan, told the board. Ballis warned, “We’re potentially on the chopping block — whether they are going to keep us or pull our production back to Japan.” 

And elsewhere:

The painful loss of 1850 jobs at Pacific Brands in NSW, Victoria and Queensland is more than a byproduct of the global recession. The main reason for shifting to China, chief executive Sue Morphet said on Wednesday, is that manufacturing in Australia “is no longer a competitive advantage” to the company. The Prime Minister owes it to businesses large and small, as well as to Labor’s core constituency, workers, to re-evaluate the impact on employment of his emissions trading scheme, especially in mining, where Australia has such a strong comparative advantage.

Biofuels? Fail:

The German biofuels industry is facing bankruptcy according to their industry association, despite millions of state-sponsored subsidies in recent years. “It is five to twelve, but few politicians understand,” said the chairman of the Association of German Biofuel Industry (VDB), Kurt Stoffel. “The biodiesel market for trucks has come to a complete halt,” said Stoffel.

Reality? Dawning:

Britain said on Thursday it backed the building of new coal plants and would make a decision soon on whether these must have expensive, climate-friendly technologies fitted called carbon capture and storage (CCS). “We will need new fossil fuel plants including coal if we are going to maintain diversity in energy mix and energy security….”,

Yet here we are getting ready to implement a scheme that is already seen to be worsening the economic conditions around the world (and being abandoned by those realing the losses).  Unsurprisingly our implementation would most likely occur just as we are beginning to see an end to the recession.

The administration certainly seems to be aware of the cost of such legislation but still plans on pursuing it:

Steven Chu, President Barack Obama’s new Secretary of Energy, told The New York Times earlier this month that reaching agreement on emissions trading legislation would be difficult in the present recession because any scheme to regulate greenhouse gas emissions would probably cause energy prices to rise and drive manufacturing jobs to countries where energy was cheaper.

Yet, with blinders fully in place, and giddy at the prospect of sticking it to evil corporations while redistributing their ill-gotten gains, the left applauds a plan which will cripple our economy for decades to come.

If ever there were budget proposals poised to send us into darkness, it is this plan put forward by the Obama administration.

~McQ

Who Is “We” Mr. Broder?

In the Washington Post, David Broder ends his op-ed with:

When we elected Obama, we didn’t know what a gambler we were getting.

Is he kidding? Certainly for most of the campaign, we didn’t have the fiscal calamity hanging over our heads, but if Broder thinks that anything that has come out of the Obama administration to this point is a surprise or represents a gamble, I have to wonder what he actually expected.

Obama signalled everything he’s been doing and planed to do for two years, for heaven sake. Where was Broder during all of that?  This isn’t a “gamble”, it’s an agenda.

Health care? Check. Tax increases on the rich? Check. Education “reform”? Check. Green tech/cap-and-trade? Check. Infrastructure “investment” (the fiscal mess just gave him the appropriate excuse for huge deficit spending)? Check. Gitmo, Iraq and A’stan? Check, check, check.

The fact that the Obama administration is moving on all fronts at once is ambitious, no question, but surprising or a gamble? Well only to those who somehow missed what he was saying and projected onto the “hope and change” mantra what they expected instead.

Seems Broder, and much of the MSM, can raise their hands and nod yes to that.

~McQ

Here’s A Bit Of A Surprise

Eric Holder talked about reviving the assault gun ban. But he’s meeting opposition from unexpected quarters.

Senate Majority Leader Harry Reid will join Speaker Nancy Pelosi (D-Calif.) in opposing any effort to revive the 1994 assault weapons ban, putting them on the opposite side of the Obama administration.

Reid spokesman Jim Manley said the Nevada Democrat will preserve his traditional pro-gun rights voting record.

“Senator Reid would oppose an effort (to) reinstate the ban if the Senate were to vote on it in the future,” Manley told The Hill in an e-mail late Thursday night.

There’s a pretty political explanation for the opposition.

A) gun bills are always losers for Democrats. It seems that Pelosi and Reid have finally figured out (at least in this case) that it is rather stupid to hand your opposition ammo (no pun intended).

B) unpopular legislation like this wastes time and goodwill. They have a much more ambitious plan to sell us down the river than piddling stuff like this, and they don’t want to be distracted by something that will be virtually ineffective the second it is signed into law (but put the pro-gun lobby front and center for a while).

C) Reality.

A number of House Democrats lost their seats after being targeted by the National Rifle Association for voting for the 1994 ban.

And finally, it is a way to make sure the Obama administration knows that it is Congress they must coordinate these things with before they go shooting their mouths off. Eric Holder said, without such coordination, that he planned on trying to reinstate the assault weapons ban. Pelosi and Reid used the opportunity to send a message.

That said, be aware that Holder certainly appears to have an anti-gun agenda, or, at least, so it seems.

~McQ

Budget Voodoo

Barack Obama is about to submit his first budget to Congress.

Finally, because we’re also suffering from a deficit of trust, I am committed to restoring a sense of honesty and accountability to our budget.  – President Barack Obama to a joint session of Congress, Feb 24, 2009

That’s the promise.  The reality, as the Washington Post observes, isn’t quite in keeping with the promise:

President Obama’s spending plan is built on the assumption that lawmakers can resolve some hugely contentious issues — and it relies on a few well-worn budget tricks.

The tricks?  The usual stuff – calling something what it isn’t and inflating future spending numbers to make the future real numbers appear to be “savings”.  For instance:

And though Obama told Congress on Tuesday that his budget team has “already identified $2 trillion in savings” to help tame record budget deficits, about half of those “savings” are actually tax increases, administration officials said. A big chunk of the rest of the savings comes from measuring Obama’s plans against an unrealistic scenario in which the Iraq war continues to suck up $170 billion a year forever.

The tax increases, of course, include an increase in taxes on the top 2%.  And further savings are based on pretending that the Bush administration planned on spending $170 billion (seems like a small number when compared to the numbers being thrown around these days, doesn’t it?) beyond 2011 when it planned on pulling the bulk of the troops out of the country.

“It’s a hollow number,” said Sen. Judd Gregg (R-N.H.), the senior Republican on the Senate Budget Committee, who recently withdrew as Obama’s nominee to head the Commerce Department. “You’re not getting savings if you’re assuming spending that isn’t actually going to occur.”

What accounts for the other major source of income?

 But to pay for it, the president counts on a big infusion of cash from a politically controversial cap-and-trade system, which would force companies to buy allowances to exceed pollution limits. 

The promise that energy costs are going to skyrocket seems one promise he’s bent on keeping.  That of course will require more spending to offset the consequences (but don’t figure on being in on the subsidy, you probably won’t qualify).  And then there’s the redistributionist “spread the wealth” bonus to be realized from cap-and-trade:

Obama also wants to use the money to cover the cost of extending his signature Making Work Pay tax credit, worth up to $800 a year for working families. That credit, which will cost $66 billion next year, was enacted in the stimulus package, but is set to expire at the end of 2010.

Cover the cost is a way of saying, making the program permanent.

Then there’s the deficit promise.  Obama has set a goal of cutting the deficit in half by the end of his first term.   As observers say, there’s absolutely nothing difficult about reaching that goal:

This year’s budget deficit is bloated by spending on the stimulus package and various financial-sector bailouts, expenses unlikely to be repeated in future years. The nonpartisan Congressional Budget Office recently predicted that the deficit could be halved by 2013 merely by winding down the war in Iraq and allowing some of the tax cuts enacted during the Bush administration to expire in 2011, as Obama has proposed. That alone would cut the deficit to $715 billion, according to the CBO.

Notice that final number, folks.  That’s “half” of the deficit.  In other words he’s going to be running a deficit north of $700 billion dollars and trying to convince you how well he’s done.  In fact, all he’ll have done is add several trillions to the debt with several trillions more to come if reelected.

The era of big deficit financed government isn’t just back, it’s back on steroids sitting in a rocket sled pointed at economic  hell.

~McQ

Healthcare: A 634 Billion Dollar “Downpayment?”

The Washington Post tells us:

President Obama is proposing to begin a vast expansion of the U.S. health-care system by creating a $634 billion reserve fund over the next decade, launching an overhaul that most experts project will ultimately cost at least $1 trillion.

I put those words in bold so you would understand that even the WaPo considers his plan to be “a vast expansion”.

Now, a question for you – when is the last time you remember “experts” who projected anything to do with the cost of a government program coming anywhere close to the ultimate cost? Or overestimating the cost?

So what can we really expect the true “ultimate” cost to be? Well if history is any guide somewhere around 2 to 3 times what they’re “projecting.”

And how will he pay for this?  Why the same way Medicare has – by shifting costs to patients with private insurance and letting them pick up the slack:

Obama aims to make a “very substantial down payment” toward universal coverage by trimming tax breaks for the wealthy[tax increases – ed.] and squeezing payments to insurers, hospitals, doctors and drug manufacturers, a senior administration official said yesterday.

 BOHICA

Of course, understand that when the cost of your private health insurance benefit goes up because of all the “squeezing” (i.e. cost shifting) going on, your company will either cut benefits, raise your insurance premium or both.  And you shouldn’t at all be surprised that if given the option of dropping health care insurance for a government run system or continuing to pay through the nose for a private one, your company takes the first option.  That is also part of this plan, although unstated.

~McQ

AGW: Not Impressed In Nippon

 A Japanese scientific report breaks with the “consensus”:

Scientists in the Land of the Rising Sun have concluded that it is the sun itself that is the major cause of Global Warming, not man.

It has been the sun for millions, if not billions of years previous to this warming trend. I have no idea, other than Al Gore, why we should believe this one is different.

Japanese scientists have made a dramatic break with the UN and Western-backed hypothesis of climate change in a new report from its Energy Commission.

Three of the five researchers disagree with the UN’s IPCC view that recent warming is primarily the consequence of man-made industrial emissions of greenhouse gases. Remarkably, the subtle and nuanced language typical in such reports has been set aside.

One of the five contributors compares computer climate modelling to ancient astrology. Others castigate the paucity of the US ground temperature data set used to support the hypothesis, and declare that the unambiguous warming trend from the mid-part of the 20th Century has ceased.

The report by Japan Society of Energy and Resources (JSER) is astonishing rebuke to international pressure, and a vote of confidence in Japan’s native marine and astronomical research. Publicly-funded science in the West uniformly backs the hypothesis that industrial influence is primarily responsible for climate change, although fissures have appeared recently. Only one of the five top Japanese scientists commissioned here concurs with the man-made global warming hypothesis.

Note the bold – that is precisely why this one is different. In previous warming trends, government funded scientists weren’t trying to prove it was man who was warming the earth. I also loved the bit about the models and ancient astrology.

~McQ

This Is Definitely Not The Thing To Do

I‘m a big booster of the military (yeah, yeah, I know, big surprise) but when it or members of the military do dumb, stupid or illegal things, I call them out.  This is one of those times:

A U.S. soldier on active duty in Iraq has called President Obama an “impostor” in a statement in which he affirmed plans to join as plaintiff in a challenge to Obama’s eligibility to be commander in chief.

The statement was publicized by California attorney Orly Taitz who, along with her DefendOurFreedom.us Foundation, is working on a series of legal cases seeking to uncover Obama’s birth records and other documents that would reveal whether he meets the requirements of the U.S. Constitution.

“As an active-duty officer in the United States Army, I have grave concerns about the constitutional eligibility of Barack Hussein Obama to hold the office of president of the United States,” wrote Scott Easterling in a “to-whom-it-may-concern” letter.

As Neptunus Lex says, “this is a guy way out of his swim lane”.  Lex mirrors my reaction exactly:

I’m no particular fan of the president’s agenda, but this smells too like the actions of those refuseniks who insisted that the 2000 presidential election was invalid because the result failed to conform to their preferences. Only this is worse, because the individual in question is an active duty officer serving in a combat zone. It’s going to create a huge headache for both his soldiers and their chain of command, all of whom have much better things to do with their lives – like preserve them – than to coddle the whimsies of a rogue 2LT.

He swore an oath to support and defend the Constitution of the United States. This is mere vanity.

And it is utter stupidity. I don’t support this LT any more than I supported the LT who refused to deploy because he had decided that the Iraq war was “illegal”. They need to get this guy out of Iraq where his divided attention might end up getting someone killed. Then they should help him quickly learn to reassimilate into civilian life again (where he will surely become the darling of a few far-right fringe groups).

~McQ

Schumer – Take It Or Leave It

Sen. Chuck Schumer has decided he, not the Constitution, should be final arbiter as to whether states take the stimulus money or not:

“No one would dispute that these governors should be given the choice as to whether to accept the funds or not. But it should not be multiple choice.”

So he sent a letter to the OMB Director, Peter Orszag in which he said:

As you know, Section 1607(a) of the economic recovery legislation provides that the Governor of each state must certify a request for stimulus funds before any money can flow. No language in this provision, however, permits the governor to selectively adopt some components of the bill while rejecting others. To allow such picking and choosing would, in effect, empower the governors with a line-item veto authority that President Obama himself did not possess at the time he signed the legislation.

Well, Chuckie, no language in there says they must accept it all either. And, btw, many governors do enjoy line item vetoes.

And then there’s that pesky 10th amendment.

~McQ

“Climate Change” And The Obama Administration – Huge Power Grab In The Offing

No doubt this will somehow end up being blamed on “global warming”:

A rocket carrying a NASA global warming satellite has landed in the ocean near Antarctica after an early morning launch failure.

The mishap occurred Tuesday after the Taurus XL rocket carrying the Orbiting Carbon Observatory blasted off into the pre-dawn sky from California’s Vandenberg Air Force Base.

“Orbiting Carbon Observatory”? It is apparently now the “Submerged Carbon Observatory”.

In other climate change news, it seems the new “Climate Czar” is ready to rock and roll on the question of carbon regulation:

President Barack Obama’s climate czar said Sunday the Environmental Protection Agency will soon issue a rule on the regulation of carbon dioxide, finding that it represents a danger to the public.

The White House is pressing Congress to draft and pass legislation that would cut greenhouse gases by 80% of 1990 levels by 2050, threatening to use authority under the Clean Air Act if legislators don’t move fast enough or create strong enough provisions.

Note that last line – certainly what one would expect an unelected “czar” to do, wouldn’t you say? Note also that the EPA intends to declare CO2 a “danger to the public”. Yes friends, the gas you exhale as a part of your respiration, the one that plants use in photosynthesis, is suddenly going to be a “danger to the public”.

Officially recognizing that carbon dioxide is a danger to the public would trigger regulation of the greenhouse gas emissions from coal-fired power plants, refineries, chemical plants, cement firms, vehicles and any other emitting sectors across the economy.

All those economic sectors and industries which are supposedly going to be engaged in our recovery via infrastructure improvement, providing critical power and fuel or on the list to be rescued by bailout funds. Does that make any sense at all?

Critics of putting an expensive premium on carbon say that such a schedule may be overly optimistic given the global financial crisis and the ramifications that putting a cap on greenhouse gases would have across nearly every sector of the economy. Tough action too fast, they say, not only could curb manufacturing and create an energy crisis by halting new power plant construction, but also could force a rapid migration of businesses overseas to cheaper energy climes.

But zealots don’t really care about such things – I mean, this is about “saving the planet” you know? And this isn’t just about Browner. She has some powerful backing:

Specifically, Obama wants an economy-wide law – instead of just some major emitting sectors – and to auction off 100% of the emission credits, which analysts say could exponentially increase the cost of emitting, as well as the pay-off for low-carbon projects.

So, given this, does anyone still doubt that we’re going to be in this recession for quite some time once the Czar throws the lever on this little power play (no pun intended)?

Wait, there’s more.  If you’re at all concerned with the expanded power this gives the federal government, you ain’t seen nothin’ yet:

Separately, Browner said the administration was also going to create an inter- agency task force to site a new national electricity transmission grid to meet both growing demand and the President’s planned renewable energy expansion. Siting has been a major bottleneck to renewable growth, and lawmakers and administration officials have said they’re likely to seek greater federal powers that would give expanded eminent domain authorities.

Hope and change.

~McQ