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China


Iran Ready To Build Nuclear Bomb?

That’s what the UK Times is reporting:

Iran has perfected the technology to create and detonate a nuclear warhead and is merely awaiting the word from its Supreme Leader, Ayatollah Ali Khamenei, to produce its first bomb, Western intelligence sources have told The Times.

The sources said that Iran completed a research programme to create weaponised uranium in the summer of 2003 and that it could feasibly make a bomb within a year of an order from its Supreme Leader.

Of course, what we don’t know about Iran’s capability could fill a book. We’ve seen it variously reported that they a year away to ten years away – a good indicator that for the most part intelligence agencies haven’t a clue in reality.

However, as we know, nuclear bombs are old technology. The genie has been out of the bottle way too long to believe that Iran can’t build a bomb if it dedicates the time and resources to do so. And it certainly seems to have done both.

So now what?

That’s the salient question now. Let’s assume Iran has a bomb by this time next year – then what?

Well here’s the apparent game plan:

If Iran’s leader does decide to build a bomb, he will have two choices, intelligence sources said. One would be to take the high-risk approach of kicking out the international inspectors and making a sprint to complete Iran’s first bomb, as the country weathered international sanctions or possible air strikes in the ensuing crisis. The other would be to covertly develop the materials needed for an arsenal in secret desert facilities.

Last week, during a series of high-level US visits to Israel, officials outlined Washington’s plans to step up sanctions on Iran, should Tehran fail to agree on talks. Robert Gates, the Defence Secretary, and General James Jones, the National Security Adviser, said that Iran had until the end of next month, when the UN General Assembly is to meet, to make a positive move towards engagement.

If Tehran fails to respond, Washington aims to build a tough international coalition to impose harsh sanctions focusing on petroleum products — an area where Iran is particularly vulnerable because it sends almost all of its crude abroad for refinement.

The feeling, of course, is if these sorts of sanctions can be imposed, it will hurt the regime even further by adding more unrest among a population already not happy with the election outcome. And, per the Times, hit directly at the Revolutionary Guards Council, which is the main exporter of terrorism through its surrogates in various parts of the world.

Of course what isn’t mentioned by the Times is the one big fly in the ointment of getting this done – China. No China, no sanctions. And China has developed a pretty close relationship with Iran based on petroleum trade. In 2004 it signed two huge oil and gas deals with Iran. Presently 45% of China’s crude imports come from the Middle East and that’s expected to rise to 70% by 2015. In 2008, China finalized a $70 billion deal to develop Iran’s Yadavaran oil field in exchange for the supply of liquefied natural gas. And much, much more.

So China is not going to be keen to cripple a nation which it has invested so much time and money in developing a relationship with – especially if it wants to maintain its own economy (and keep its own internal unrest to a simmer) during recessionary times.

Bottom line? My guess is a lot of tough talk and fist shaking at Iran, but in the end, nothing much happens and Iran ends up with its nuke. The play will be made in the UN where China has a seat on the Security Council and I’d almost bet the house that nothing comes out of that organization with any teeth whatsoever or China won’t vote for it.

Bottom bottom line – Israel, who we seem bound and determined to have worse relations with, is probably going to have to find a way to destroy the capability on their own. Militarily they’ve been quietly developing the strike capability for some time. And Saudi Arabia, which is very worried about an Iranian nuke and what it would do to the balance of power in the region, has given Israel a subtle nod that it would turn its back should the Israelis fly over their territory to strike Iran – unprecedented in the history of the region and an indication of the depth of fear the Saudis harbor.

But reliance on the UN and “sanctions”? I just don’t see that happening.

~McQ


Cap-And-Trade And Paying For China Too

Who are these people?

I’m obviously mistaken if I think they’re in office to represent the citizens of the United States of America.  Apparently, instead, they represent the Chinese:

“It’s important that those who consume the products being made all around the world to the benefit of America — and it’s our own consumption activity that’s causing the emission of greenhouse gases, then quite frankly Americans need to pay for that,” Commerce Secretary Gary Locke told the American Chamber of Commerce in Shanghai.

That’s United States Secretary of Commerce Gary Locke, folks.

Of course, after Locke shoots off his mouth and forgets for whom he works,  the Joe Biden treatment comes into play. Behold, the official disclaimer that makes it all officially okeydokey:

“Secretary Locke has been very clear on emphasizing the importance of fair trade as a part of the United States’ relationship with China. He believes U.S. companies should not be disadvantaged by Chinese imports not bound by responsible policies to reduce carbon emissions. China and the US must work together to ensure a level playing field and reduce our carbon footprints. The Secretary’s trip to China demonstrated his commitment to fair trade and his belief that both the United States and China can benefit from shared investments and cooperation in clean energy that will lead to commercial and environmental benefits for both countries.”

In other words, he didn’t say what he said and we say so.  Orwell would be freakin’ proud.

I swear – sometimes words just fail me when I watch the absolute travesty our government has become.  And no, not just since January.  But they sure have caused the process to speed up.

~McQ


BlogTalk Radio – 8pm (EST) UPDATED

Call in number: (718) 664-9614

Yes, friends, it is a call-in show, so do call in.

Subject(s): Honduras/China, pending legislation on the environment (cap-and-trade) and health care and some of the “nuggets” to be found in there, the question of another stimulus and Obama’s claim this one is working just fine – and anything else we feel like talking about.

UPDATE [Dale]: Health care, too.


The EPA Says Cap-And-Trade Will Have No Effect Without China

But Energy Secretary Chu, when asked if he agreed with an EPA chart which depicted that, said, without explanation, that he did not:

During a hearing today in the Senate Environment and Public Works Committee, EPA Administrator Jackson confirmed an EPA analysis showing that unilateral U.S. action to reduce greenhouse gas emissions would have no effect on climate. Moreover, when presented with an EPA chart depicting that outcome, Energy Secretary Steven Chu said he disagreed with EPA’s analysis.

“I believe the central parts of the [EPA] chart are that U.S. action alone will not impact world CO2 levels,” Administrator Jackson said.

Sen. James Inhofe (R-Okla.) presented the chart to both Jackson and Secretary Chu, which shows that meaningful emissions reductions cannot occur without aggressive action by China, India, and other developing countries. “I am encouraged that Administrator Jackson agrees that unilateral action by the U.S. will be all cost for no climate gain,” Sen. Inhofe said. “With China and India recently issuing statements of defiant opposition to mandatory emissions controls, acting alone through the job-killing Waxman-Markey bill would impose severe economic burdens on American consumers, businesses, and families, all without any impact on climate.”

You can watch Jackson confirm it and Chu deny it here:

Click through at the first link to see the chart – it’s rather hard to read, but the EPA analysis depicted on it essentially says what Inhofe points out – that without China and India and other developing countries, cap-and-trade will have no beneficial effect on the overall reduction of CO2 emissions.

Of course what’s most interesting is to watch “Mr. Science”, Secretary Chu, reject the EPA’s analysis without offering a single justification for such rejection.

Science over ideology, or so it was promised. It sure isn’t evident in Chu’s one word answer to the question posed to him.

~McQ


The White House Reacts To The Violence In China

Well, not exactly “reacts”. Instead it issues a statement when asked for a reaction:

We are deeply concerned over reports of many deaths and injuries from violence in Urumqi in western China. Reports, so far, are unclear about the circumstances surrounding the deaths and injuries, so it would be premature to comment or speculate further. We call on all in Xinjiang to exercise restraint.

Wasn’t this the same basic message candidate Obama issued concerning Georgia – You boys quite fighting now, you hear?

Here, let me finish the statement for them:

Because, you know, freedom isn’t worth fighting for, and besides Hillary made it clear we weren’t going to be bothering the Chicoms about human rights anymore – so you’re on your own.

Meanwhile an Amber alert has been issued for Hillary who has apparently gone missing in the State Department (although it is being reported that she’s going to meet with former Honduran president Mel Zelaya later this week).

Previous post on the situation that the White House seems not to know much about here.

~McQ


Deadly Clashes in China

I assume, since China is a totalitarian state, that the US won’t have anything to say about the violence there for at least 10 days:

The official death toll in riots in China’s northwestern Xinjiang region rose sharply Monday, with the government saying that 140 had been killed in what appears to be one of the deadliest episodes of unrest in China in decades.

Police said at least 828 other people were injured in violence that began Sunday in Urumqi, Xinjiang’s capital. Witnesses said the conflicts pitted security forces against demonstrators, and members of the region’s Turkic-speaking Uighur ethnic group against members of the country’s Han Chinese majority. Many among the predominantly Muslim Uighurs have chafed at Chinese government rule.

[...]

As evening fell in Urumqi Monday, witnesses said that paramilitary troops of the People’s Armed Police, backed by armored personnel carriers, were patrolling largely calm city streets. Many businesses remained shuttered and gates of the city’s central bazaar, which was the scene of unrest Sunday night, were closed.

Police said they were still searching for dozens of people suspected of fanning the violence. Several hundred people have already been arrested in connection with the riot, police said, and the government said it was bringing “ethnic officials” from nearby areas to help with interrogations.

Of course the reason given by the Chinese government is much the same as that given by the Iranian government concerning the problems there -

The government blamed the unrest on a prominent exiled Uighur leader, Rebiya Kadeer, president of the World Uyghur Congress, an activist group. Sunday’s demonstration was “instigated and directed from abroad,” according to a government statement cited by Xinhua.

Given that statement, you can expect silence from the Obama administration as they’ll want to ensure they’re not seen as “meddling” in China’s internal affairs. And I can promise you that the Uighur dissidents being rounded up by China’s police forces will not be offered a vacation in Bermuda.

Apparently the only country in which the “no meddling” policy is waved is Honduras.

~McQ


Climate Change Update – Falling Dominoes

For the American taxpayer, under the shadow of the recently passed House cap-and-trade (Waxman-Markey) bill, the news continues to be grim. However for the traitorous “deniers”, aka skeptics, who believe the whole climate change hysteria to be an economy killing farce, things are looking better.

For instance India has announced it will not participate in the Western world’s attempts to kill their own economies:

India said it will reject any new treaty to limit global warming that makes the country reduce greenhouse-gas emissions because that will undermine its energy consumption, transportation and food security.

Cutting back on climate-warming gases is a measure that instead must be taken by industrialized countries, and India is mobilizing developing nations to push that case, Environment Minister Jairam Ramesh told the media today in New Delhi.

“India will not accept any emission-reduction target — period,” Ramesh said. “This is a non-negotiable stand.”

Heh … fairly blunt and straight foward wouldn’t you say? Of course, China took the same stand a couple of weeks ago. I call that good news because it is another country which has decided to put its economy first and this nonsense second. When two countries which are or expected to be very soon the two leading emitters of CO2 say “no”, it makes it rather ridiculous for the rest of the world to say “yes” given the consequences vs. payoff, doesn’t it?

And the US cap-and-trade legislation? Well India sees that as a “no-go” as well:

But last week, the US House of Representatives backed a “border adjustment tax” to equalise carbon emissions charges between domestic production and imports from states that do not cap emissions. The legislation is likely to face tough opposition in the Senate.

Mr Ramesh denounced as “pernicious” US efforts to impose “trade penalties” on countries that do not match its carbon reduction moves.

Meanwhile in the EU:

The European Union risks driving industry out of the region if it continues to push for deeper cuts in carbon dioxide emissions than other economies, according to the chief executive of Eon, one of the world’s biggest renewable energy companies.

Wulf Bernotat, Eon’s chief executive, told the Financial Times that the EU was imposing higher energy costs on its industry than competing regions, and criticised the US for doing “basically nothing” to cut its carbon dioxide emissions.

He added that if there were no international deal to cut emissions agreed at the Copenhagen meeting at the end of the year, the EU would have to rethink its plans to take a lead in fighting the threat of climate change.

“It is a European political issue whether the European Union can continue to lead the policy process if the rest of the world is not joining in,” he said.

“We are adding additional costs to our industries, and if other countries don’t follow, then those industries will move to lower-cost regions.”

Yeah, like India or China … or Mexico. That’s the irony of this nonsense. We have a president and Congress who’ve made a cottage industry of demonizing corporations who “outsource” jobs while they pass legislation that encourages corporations to outsource jobs.

And for those who worship at the feet of Al Gore, another inconvenient truth is to be found in a recently published paper from the Journal of Atmospheric and Solar-Terrestrial Physics:

The Abstract states:

Daily temperature and pressure series from 55 European meteorological stations covering the 20th century are analyzed. The overall temperature mean displays a sharp minimum near 1940 and a step-like jump near 1987. We evaluate the evolution of disturbances of these series using mean squared inter-annual variations and “lifetimes”. The decadal to secular evolutions of solar activity and temperature disturbances display similar signatures over the 20th century. Because of heterogeneity of the climate system response to solar forcing, regional and seasonal approaches are key to successful identification of these signatures. Most of the solar response is governed by the winter months, as best seen near the Atlantic Ocean. Intensities of disturbances vary by factors in excess of 2, underlining a role for the Sun as a significant forcing factor of European atmospheric variations. We speculate about the possible origin of these solar signatures. The last figure of the paper exemplifies its main results.

The paper concludes:

In concluding, we find increasingly strong evidence of a clear solar signature in a number of climatic indicators in Europe, strengthening the earlier conclusions of a study that included stations from the United States (Le Mouël et al., 2008). With the recent downturn of both solar activity and global temperatures, the debated correlations we suggested in Le Mouël et al. (2005), which appeared to stop in the 1980s, actually might extend to the present. The role of the Sun in global and regional climate change should be re-assessed and reasonable physical mechanisms are in sight.

Shorter conclusion?

“It’s the sun, stupid”.

~McQ


Krugman Endorses “Carbon Tariff”

Paul Krugman came out today for “border adjustments” (tariffs) on goods from countries who aren’t participating in economy killing CO2 emissions control taxation.

His argument:

If you only impose restrictions on greenhouse gas emissions from domestic sources, you give consumers no incentive to avoid purchasing products that cause emissions in other countries; as a result, you have an inefficient outcome even from a world point of view. So border adjustments here are entirely legitimate in terms of basic economics.

Actually they’re “entirely legitimate” if you swallow the premise Krugman is pushing here, namely that CO2 is a “pollutant” and its restriction is a “legitimate” reason for imposing taxes on both your own economy and the goods coming from another economy which doesn’t agree with the premise. And, of course, this ignores the probable reaction countries hit with this tariff might have.

Krugman then attempts to justify such a “border adjustment” by claiming such a move is probably legal under “international law”:

The WTO has looked at the issue, and suggests that carbon tariffs may be viewed the same way as border adjustments associated with value-added taxes. It has long been accepted that a VAT is essentially a sales tax — a tax on consumers — which for administrative reasons is collected from producers. Because it’s essentially a tax on consumers, it’s legal, and also economically efficient, to collect it on imported goods as well as domestic production; it’s a matter of leveling the playing field, not protectionism.

And the same would be true of carbon tariffs.

What he sort of dances around when he claims this will “level the playing field” is all products, regardless of their origin, will see dramatically increased pricing. The point of the tax is to hopefully steer consumers to domestically produced products which are produced under government approved conditions rather than those from countries like China and India which aren’t playing the game the US wants them to play. Not only will the consumer here be asked to pay for the CO2 offsets imposed on domestic industry, but they will have to pay for offsets for foreign producers as well when the VAT cost is passed on in the price of the goods.

The thinking, obviously, is that if prices are the same, US consumers will buy US goods instead of, say, Chinese goods. The problem, of course, is much of what we consume isn’t made here anymore. So the result would be the US consumer would end up paying higher prices for goods produced in China with no change in behavior by China.

Additionally, China will view this as a protectionist measure, whether the WTO thinks it is “legal” or not. China will simply claim that the US, as a rich country and large “polluter”, should be doing more than they are doing in terms of emissions control, and impose its own “WTO legal” VAT in response. Same with any other country targeted by the US for a tariff.

This is, frankly, an invitation to a trade war. Krugman can wrap his protectionist argument in whatever legality he’d like, but the fact remains most countries effected will view it as an attempt to limit trade and react accordingly. And, of course, by Krugman’s own admission, it is you who will be paying the tariff cost for China and India if this is ever passed into law.

~McQ


Will Waxman-Markey Inspire A Trade War?

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.

Ya think?

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.

~McQ

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