Free Markets, Free People

Environment


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


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


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


“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


With Hat In Hand …

Pretty sad when you have the Secretary of State soliciting funds for debt instruments:

US Secretary of State Hillary Clinton has urged China to keep buying US debt as she wrapped up her first overseas trip, during which she agreed to work closely with Beijing on the financial crisis.

Ms Clinton made the plea shortly before leaving China, the final stop on a four-nation Asian tour that also took her to Japan, Indonesia and South Korea, where she worked the crowds to try to restore America’s standing abroad.

In Beijing, she called on authorities in Beijing to continue buying US Treasury bonds, saying it would help jumpstart the flagging US economy and stimulate imports of Chinese goods.

“By continuing to support American Treasury instruments the Chinese are recognising our interconnection. We are truly going to rise or fall together,” Ms Clinton said at the US embassy here. 

Of course, its absolutely necessary that China (and the rest of the world) continue to buy these bonds and fund this spending debacle or taxes will have to be raised dramatically (and not just on the ‘rich’) and/or more money will have to be printed. That’s not to say that both of those won’t be done anyway whether China continues to buy or not.  My guess is it’s only a matter of time. Don’t forget, health care reform legislation and environmental legislation are yet to come. Both may end up taking even more out of the private side of the economy than the so-called “stimulus” did.

~McQ


Ah, Chu

Yup, nothing like the best qualified for the job:

Energy Secretary Steven Chu may be a Nobel laureate Ph.D. in physics, but his first forays into energy policy suggest he’s a neophyte when it comes to the ways of Washington.

At a forum with reporters on Thursday, the head of the department that has traditionally taken the lead on global oil-market policy, was asked what message the Obama administration had for the Organization of Petroleum Exporting Countries at its meeting next month.

“I’m not the administration,” the Cabinet secretary replied. “I will be speaking and learning more about this in order to figure out what the U.S. position should be and what the president’s position is.”

Chu, who is still without a deputy, said he feels “like I’ve been dumped into the deep end of the pool” on oil policy.

He may be a Nobel laureate, but it is obvious that he isn’t at all prepared for the job of Energy Secretary. How, given his obvious lack of knowledge about oil, can he put a comprehensive energy plan together for the US? Well, he wasn’t brought in to consider oil – he’s going to be the “green guy”. Oil, coal and other Neanderthal energy sources aren’t really something he’s concerned himself with. But now, he is the man.

Makes you feel all warm and fuzzy, huh? Knowing all of that certainly reassures you that his priorities are going to be what is best for the US and not best for the agenda, doesn’t it?

~McQ


AGW – Settled Science? Hardly…

It seems like everyday more and more is discovered that affects the climate and it is clear those touting the “science” of AGW being settled were clueless about it. For instance:

Whether devastating faults, dank caves or mud cracks on a drying desert plain, Earth’s surface is riddled with fractures.

Now a new study had found that the cracks exhale large quantities of gas, perhaps enough to affect global warming.

Now, I’m not saying this overturns their arguments, but one thing I can say without contradiction is this isn’t modeled in their climate models. And, while at this point there is still not enough information to determine if it is indeed enough to affect global warming, its obvious the AGW crowd didn’t even know this problem existed.

Here’s what scientists found:

Noam Weisbrod of Ben Gurion University of the Negev and a team of researchers monitored a crack about 2 meters long (6.5 feet) and 1 meter (3.3 feet) deep for two years in the Negev Desert is Israel. Each night, they watched as warm air in the crack drew water vapor out of the surrounding rock, and lifted it into the cold evening air.

If air in the crack is just 7 degrees warmer than the ambient temperature, it is buoyant enough to rise out of any crack in the ground bigger than 1 centimeter (0.4 inch) across, bringing with it any gases that leak out of the surrounding soil or rock.

But the team was surprised to find that the crack they studied gave off water vapor up to 200 times faster than areas without fractures.

The next time one of the AGW crowd tries the “settled science” canard, remind them of this little beauty and ask them how it affects the theory. I hope you enjoy the sound of crickets chirping.

~McQ


How Not To Handle A Recession, Yet Take Advantage Of A “Crisis”

Unproven science is apparently going to drive an administrative (instead of legislative) push to regulate carbon dioxide. In the middle of a “crisis” which President Obama calls the worst since the 1930s, the EPA is apparently going to drastically raise the cost to do business in critical sectors:

The Environmental Protection Agency is expected to act for the first time to regulate carbon dioxide and other greenhouse gases that scientists blame for the warming of the planet, according to top Obama administration officials.

The decision, which most likely would play out in stages over a period of months, would have a profound impact on transportation, manufacturing costs and how utilities generate power. It could accelerate the progress of energy and climate change legislation in Congress and form a basis for the United States’ negotiating position at United Nations climate talks set for December in Copenhagen.

Note that none of the “change” appears to be good for the US or its consumers. Instead, we’re likely to see it put even further stress on families on the margin and drive more layoffs and higher unemployment.  But the world will love us, or at least the UN.

I don’t think there’s any question at the moment as to whether Obama is going to govern as a centrist or liberal, is there?

~McQ


Beef Consumption – The Hummer Of Food

Nice biased environmentalist metaphor, isn’t it?

You know we see these sorts of stories all the time, and because they’re just people using causes to attempt to change our behavior, we don’t pay them the attention they deserve. But, if any of the things associated with what you’re about to read were to become law, suddenly choices and amounts of beef could easily be rationed to “save the planet”. Add a little health care legislation and it’s a lock.

When it comes to global warming, hamburgers are the Hummers of food, scientists say.

Simply switching from steak to salad could cut as much carbon as leaving the car at home a couple days a week.

The "Hummer" of food

The "Hummer" of food

That’s because beef is such an incredibly inefficient food to produce and cows release so much harmful methane into the atmosphere, said Nathan Pelletier of Dalhousie University in Canada.

Pelletier is one of a growing number of scientists studying the environmental costs of food from field to plate.

By looking at everything from how much grain a cow eats before it is ready for slaughter to the emissions released by manure, they are getting a clearer idea of the true costs of food.

The livestock sector is estimated to account for 18 percent of global greenhouse gas emissions and beef is the biggest culprit.

Even though beef only accounts for 30 percent of meat consumption in the developed world it’s responsible for 78 percent of the emissions, Pelletier said Sunday at a meeting of the American Association for the Advancement of Science.

That’s because a single kilogram of beef produces 16 kilograms carbon dioxide equivalent emissions: four times higher than pork and more than ten times as much as a kilogram of poultry, Pelletier said.

If people were to simply switch from beef to chicken, emissions would be cut by 70 percent, Pelletier said.

Another part of the problem is people are eating far more meat than they need to.

“Meat once was a luxury in our diet,” Pelletier said. “We used to eat it once a week. Now we eat it every day.”

If meat consumption in the developed world was cut from the current level of about 90 kilograms a year to the recommended level of 53 kilograms a year, livestock related emissions would fall by 44 percent.

The way things are going it wouldn’t surprise me one day to see PSAs like the Chik-fil-A commercials saying, “Eat More Chikin” and cut emissions by 70% – it’s the law!

~McQ