That was the promise candidate Barack Obama made. He claimed that wasn’t the case during the Bush administration and under his leadership, science would be ascendent. They’d just let the chips fall where they may.
Well, except maybe in the EPA when a key to an ideological agenda item – declaring CO2 a pollutant – didn’t have the science available to support the desired result. Read the executive summary of this suppressed report. It outlines why the science doesn’t support the desired agenda item of declaring CO2 a pollutant. Of course without such a declaration, legislation for pollution standards for autos as well as this abomination of a cap-and-trade bill before the House today are without basis.
Michelle Malkin is all over this and it’s ironic that what occurred sounds exactly like what the left accused the Bush administration of doing:
The EPA now justifies the suppression of the study because economist Carlin (a 35-year veteran of the agency who also holds a B.S. in physics) “is an individual who is not a scientist.” Neither is Al Gore. Nor is environmental czar Carol Browner. Nor is cap-and-trade shepherd Nancy Pelosi. Carlin’s analysis incorporated peer-reviewed studies and, as he informed his colleagues, “significant new research” related to the proposed endangerment finding. According to those who have seen his study, it spotlights EPA’s reliance on out-of-date research, uncritical recycling of United Nations data, and omission of new developments, including a continued decline in global temperatures and a new consensus that future hurricane behavior won’t be different than in the past.
It appears, at least in this case, that science isn’t of interest to the ideologues on the left any more than it was to the ideologues on the right. That may be an “inconvenient truth”, but there it is. Again we find what was promised by Obama during the campaign, just like transparency and fiscal responsibility, were “just words”.
Apparently it will according to some who have actually beaten their way through the entire bill and read the contents:
The Ways and Means Committee’s proposed bill language (pdf) would virtually require that the president impose an import tariff on any country that fails to clamp down on greenhouse gas emissions.
Of course in this full bore onslaught of major life changing legislation which the Democrats seem determined to push through the Congress as quickly as they can (citing the imminent crisis it will foment if they don’t), this issue seems to be lost in the shuffle:
“This is a sleeper issue that lawmakers have not been paying enough attention to,” said Jake Colvin, vice president for global trade issues at the National Foreign Trade Council, which represents multinational corporations like Boeing Co. and Microsoft Corp. advocating for an open international trading system.
“The danger is, you focus so much on leveling the playing field for U.S. firms, that you neglect the potentially serious consequences that this could have on the international trading system,” Colvin said.
Nancy Peolosi is aiming for a vote in the House this Friday, before the July 4th recess. That obviously will mean very, very limited debate, if any. As NRO notes:
Not content to tempt political fate by imposing huge carbon taxes on the American middle class, Democrats have added a provision which imposes stiff tariffs on our trading partners if they don’t adopt aggressive carbon restrictions of their own.
You heard correctly: progressives have authored a bill that earns the mortal enmity of domestic energy consumers and our most crucial trading partners at the same time. Economy-killing climate policies and a trade war — together at last!
The devil is in the details:
Leaks from Hill offices indicate that the president would now be forced to impose the carbon tariffs — and could only opt out of doing so with permission from both chambers of Congress. Carbon-intensive imports would be subject to penalties at the border unless the country of origin requires emission reduction measures at least 80 percent as costly as ours. (The original Waxman-Markey bill had a threshold of 60 percent.)
Brilliant. Of course, some are going to argue that such measures surely will not be in the Senate version and not survive the reconciliation process when the two versions are merged. With this Congress I wouldn’t bet the farm on that.
There’s some talk that the blue dogs are going to oppose this bill. Obviously you would expect the GOP to oppose it as well. Are there enough other Dems to oppose so as to defeat it? Pelosi may not be the sharpest knife in the drawer when it comes to many things, but over the years she has learned to count votes I’m sure.
Bottom line: this bill is an economy killer, plain and simple. But it is also a progressive wet-dream shared by Pelosi. She is going to do everything in her power to push it through the House.
After a lot of partisan “happy talk” about how the Obama administration is handling the economic crisis here, Paul Krugman goes on record saying the world is doomed to suffer Japan’s lost economic decade on a global scale.
The thing about Japan, as with all of these cases, is how much people claim to know what happened, without having any evidence. What we do know is that recessions normally end everywhere because the monetary authority cuts interest rates a lot, and that gets things moving. And what we know in Japan was that eventually they cut their interest rates to zero and that wasn’t enough. And, so far, although we made the cuts faster than they did and cut them all the way to zero, it isn’t enough. We’ve hit that lower bound the same as they did. Now, everything after that is more or less speculation.
For example, were the problems with the Japanese banks the core problem? There are some stories about credit rationing, but they are not overwhelming. Certainly, when we look at the Japanese recovery, there was not a great surge of business investment. There was primarily a surge of exports. But was fixing the banks central to export growth?
In their case, the problems had a lot to do with demography. That made them a natural capital exporter, from older savers, and also made it harder for them to have enough demand. They also had one hell of a bubble in the 1980s and the wreckage left behind by that bubble – in their case a highly leveraged corporate sector – was and is a drag on the economy.
The size of the shock to our systems is going to be much bigger than what happened to Japan in the 1990s. They never had a freefall in their economy – a period when GDP declined by 3%, 4%. It is by no means clear that the underlying differences in the structure of the situation are significant. What we do know is that the zero bound is real. We know that there are situations in which ordinary monetary policy loses all traction. And we know that we’re in one now.
Shorter Krugman, “we’re in new territory in terms of the size of the problem, but it is all eerily similar to what happened to Japan”. Unfortunately our reaction has been eerily similar to what Japan did as well.
Krugman’s bottom line:
WH: So, one way to think about it is that self-reinforcing financial crises rooted in overstretched, overborrowed companies and governments in less developed countries – like those in Argentina and Indonesia, which were amazingly destructive in the 1990s and 2000s, but localised – are now playing out in the developed world?
PK: There are really two stories. One is the Japan-type story where you run out of room to cut interest rates. And the other is the Indonesia- and Argentina-type story where everything falls apart because of balance-sheet problems.
WH: So in a nutshell your story is …
PK: The “Nipponisation” of the world economy with a bunch of “Argentinafications” playing a role in the acute crisis. But even after those are over, we have the Nipponisation of the world economy. And that’s really something.
And of course, implicit in the “Nipponisation” of the world economy is the “Nipponisation” of the US economy – something we’ve been talking about for some time. Now, add “cap and trade” and “health care reform” into the mix.
What will we be wishing we were suffering when that all kicks in, should it pass? Nipponisation, of course. As bad as lost decade or two might be, it would be heaven compared to the economic carnage those big tax and spend programs will inflict on a very weak economy here in the US. And that, of course, will ensure the “Nipponisation” of the world economy.
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]
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.
Martin Feldstein, a professor of economics at Harvard University, president emeritus of the nonprofit National Bureau of Economic Research, and former chairman of the Council of Economic Advisers from 1982 to 1984 has concluded that the Waxman/Markey cap-and-trade legislation is a bad idea. He comes to that conclusion for a number of reasons.
First, his understanding of the legislation and its economic impact:
The leading legislative proposal, the Waxman-Markey bill that was recently passed out of the House Energy and Commerce Committee, would reduce allowable CO2 emissions to 83 percent of the 2005 level by 2020, then gradually decrease the amount further. Under the cap-and-trade system, the federal government would limit the total volume of CO2 that U.S. companies can emit each year and would issue permits that companies would be required to have for each ton of CO2 emitted. Once issued, these permits would be tradable and could be bought and sold, establishing a market price reflecting the targeted CO2 reduction, with a tougher CO2 standard and fewer available permits leading to higher prices.
Companies would buy permits from each other as long as it is cheaper to do that than to make the technological changes needed to eliminate an equivalent amount of CO2 emissions. Companies would also pass along the cost of the permits in their prices, pushing up the relative price of CO2-intensive goods and services such as gasoline, electricity and a range of industrial products. Consumers would respond by cutting back on consumption of CO2-intensive products in favor of other goods and services. This pass-through of the permit cost in higher consumer prices is the primary way the cap-and-trade system would reduce the production of CO2 in the United States.
Note that he doesn’t play any games when talking about where the cost of such permits will end up – passed through to consumers. He prefers the CBO’s lower estimate of the impact per family of about $1,600 per “typical” family to some of the higher estimates in the $3,000 t0 $4,000. But they’re all estimates and they all say, even at the low end, that the impact is going to be significant.
Feldstein then looks at the possible payoff and challenges Americans to ask a very pertinent question. He also calls the plan exactly what it is – a tax:
Americans should ask themselves whether this annual tax of $1,600-plus per family is justified by the very small resulting decline in global CO2. Since the U.S. share of global CO2 production is now less than 25 percent (and is projected to decline as China and other developing nations grow), a 15 percent fall in U.S. CO2 output would lower global CO2 output by less than 4 percent. Its impact on global warming would be virtually unnoticeable.
But its impact on the American economy? Well, you don’t have to be a Harvard economist to figure that out. And a quick glance at Europe and how quickly most of the countries there figured out a way to ignore Kyoto should tell you the rest of the story.
Feldstein may or may not believe the theory that says CO2 is a pollutant and the cause of “global climate change”. But what is clear is he certainly doesn’t believe our seeming desire to strap ourselves economically without the big emitters (China and India) doing the same is a) worth it economically and b) make a bit of difference in real terms. Doing it without those two and all others included is about as smart as committing to unilateral nuclear disarmarment.
Feldstein goes on to attack the pending cap-and-trade legislation for other reasons as well – mostly on a revenue and impact basis (and how revenue can soften the impact – yeah, subsidy – at the “payee” end – i.e. consumers. Of course, only a certain class of consumers would most likely be eligable and it will be up to the more well-to-do to pay their “fair share”). But the two big points of his criticism are the most important in my thinking.
1. It will, regardless of how it is structured, have a negative economic impact on every American household and thus our economy.
2. It won’t make a bit of real difference unless everyone is involved in such reductions. Exclusion of the big emitters makes our “economic sacrifice” literally worthless in terms of the supposed overall goal of cutting CO2 worldwide.
Because of those two points alone, we should demand that such legislation be voted down. I think the focus on CO2 is a load of unscientific nonsense, but politically that has no legs at this time. But what does have legs is the argument summed up in those two points and opponents of cap-and-trade should use them (and Feldstein’s name) to make the argument against the pending legislation.
You really can’t blame her for trying to put – excuse the expression since it seems to have become cliche – lipstick on a pig, but Nancy Peolsi’s attempt to change China’s mind concerning curbing its CO2 seems to have been an abject failure.
Pelosi called them “hopeful”. That’s diplo-speak for “absolutely nothing substantial changed from the previously held position”. The fact that they even saw her would be deemed as “hopeful” but certainly not substantive.
Rep. James Sensenbrenner (R-WI) sums up the trip:
“It’s business as usual for China,” said Mr. Sensenbrenner, the ranking Republican on the House Select Committee for Energy Independence and Global Warming. “The message that I received was that China was going to do it their way regardless of what the rest of the world negotiates in Copenhagen.”
“Their way” consists of giving lip service to curbs while demanding the “rich nations” pay the freight for curbing such emissions in China (and the rest of the “emerging nations”). China refuses to jeopardize its economic growth for something it obviously believes is much less of a threat than others do. And why should they when it appears the upcoming conference plans on exempting them anyway?
We, on the other hand, seem bound and determined to try to do what would be tantamount to the task of cleaning up the ocean up by putting economy wrecking filters only on our shore line. Little or no effect. China and India share similar philosophies on this question and are emerging as the number one and two emitters on the planet. I think they’re right. The threat, if there is one, is minimal at best. Wrecking one’s economy to hopefully make a less that one degree Celsius change at some distant point in the future (maybe) seems to me to be the height of folly.
But that’s certainly where our politicians seem to be headed. And, to compound the problem, they’ve adopted a “damn the torpedoes, full speed ahead” philosophy, ignoring the 10 year cooling trend torpedo as well as the “China and India” aren’t going to play along” torpedo.
No one wants dirty air or dirty water – no one. But this hysterical reaction to what seems to be a natural earth cycle and the human hubris which claims we both effect and can change that cycle is going to put us all in the poor house unless some sanity (like in China) prevails.
The food police are interested in changing your diet – all in the name of climate change:
A government-sponsored study into greenhouse gases found that producing 2.2lb of lamb released the equivalent of 37lb of carbon dioxide.
The problem is because sheep burp so much methane, a potent greenhouse gas. Cows are only slightly better behaved. The production of 2.2lb of beef releases methane equivalent to 35lb of CO2 Tomatoes, most of which are grown in heated glasshouses, are the most “carbon-intensive” vegetable, each 2.2lb generating more than 20lb of CO2. Potatoes, in contrast, release only about 1lb of CO2 for each 2.2lb of food. The figures are similar for most other native fruit and vegetables.
Funny how that works in a carbon based eco system, wouldn’t you say? But don’t concern yourself, it’s all for your own good:
“We are not saying that everyone should become vegetarian or give up drinking but moving towards less carbon intensive foods will reduce greenhouse gas emissions and improve health,” said Kennedy.
Because everyone knows that potatoes are much healthier than tomatoes. Hashbrowns for all.
Oh, and barley and hops? FAIL!
Alcoholic drinks are another significant contributory factor, with the growing and processing of crops such as hops and malt into beer and whisky helping to generate 1.5% of the nation’s greenhouse gases.
My goodness, just look at what is happening to us.
The Heritage Foundation breaks ‘cap and trade’ down to 10 points you may want to consider:
1. Cap and Trade Is a Massive Energy Tax
2. It Will Not Make a Substantive Impact on the Environment
3. It Will Kill Jobs
4. It Will Cause Electricity Bills and Gas Prices to Sharply Increase
5. It Will Outsource Manufacturing Jobs and Hurt Free Trade
6. It Will Make You Choose Between Energy, Groceries, Clothing, and Haircuts
7. It Will Be Highly Susceptible to Fraud and Corruption
8. It Will Hurt Senior Citizens, the Poor, and the Unemployed the Worst
9. It Will Cost American Families Over $3,000 a Year
10. President Obama Admitted “Electricity Rates Would Necessarily Skyrocket” Under a Cap-and-Trade Program (January 2008)
So, what can you expect when they realize that number 8 makes it a very regressive tax?
That’s right, a subsidy will somehow become part of the arrangement. And who pays subsidies? What those who they arbitrarily determine can “afford” them.
Therefore, in addition to this:
Be prepared to actually pay more than that for those who can’t “afford” it (8), unless, of course, cap and trade has helped you achieve number 3.