The Swindle Solution


Oh look "centrist" must be corrupt and stupid because "Cap and Trade" is the centrist solution. Let's get this straight, cap and trade is a monetary swindle, it is like banks printing paper money and promising to back it with gold that they don't have in the old days.

Carbon is money. We live in the era of black gold money, and must move to the era of white air. Cap and trade already is a swindle that is swindling billions, and all this would do is put it into practice. It creates a rent where by the people who pollute now, and are causing the damage now get to determine who gets into the economic system, and a black hole to "cap and trade" with entities that don't cap. In short it puts people who made the mess in charge of fixing it, and gives them enormous profits while doing it. The historical track record of robber barrons ending highway robbery, is not good.

Unlike cap and trade of specific pollutants, it is virtually impossible to do anything without generating carbon. You tell me you want to build a wind farm? I can tell you how much carbon emission it takes to put it up. And while you are doing that, someone else will build a crushed coal plant in china, generate fake credits to filter it a little bit, and get electricity for 1 cent over tariff, while you are paying triple the going rate for the US wind farm. But who has credits? Why people who are already making things and are thus rich. Congress ladels out rents, and private entities collect them. That is what this is.

Mr. And Mrs. Public, this is a naked attempt to rob you blind, legally. If this passes you will never, ever, ever, ever, ever be free again, but will be slaves of the carbon monopoly.

Let's go over this straight up, unlike previous "cap and trade" deals, carbon is not avoidable. You can't drive to the store and buy a loaf of bread without generating carbon - the street is carbon intensive, the store is, the bread is, your car is. Carbon spewed into the air at every step. Previous cap and trade targets were pollutants that were incidental to economic activity, the question was merely how to most efficiently trade off the expense for scrubbing them or avoiding them - and then to give incentives to research. In some cases it was found that avoiding the pollutant was cheaper. In short there was no barrier to entry, because new technology did not suffer from the defects of the old anyway.

Carbon is different. And cap and trade of carbon is the past stealing the future. Stealing. Stealing. Stealing. The word steal is the correct one. This is because the damage of global warming falls on every one. The right to make money by spewing carbon is, then, one that should be determined, not by a rent handed out to people who are already doing it, but by a monetary system which builds the cost of carbon into every step and starts charging them for it. But they don't want to pay the cost of the spewing they are doing, they want to charge you to stop doing it. This is the same deal that a violent mugger offers - he won't beat you to a pulp, rape your girlfriend and then shoot you both, if you give him all your money and go over to that nice shiney atm and max out all your withdrawals. Maybe. But he has the gun.

Cap and trade has another black hole - simple trade with countries that don't cap. China for example. You have a factory in Germany, tell the cap and trade system you traded with a factory in China for it to buy from a cleaner coal plant. The crushed coal plant isn't shut down mind you, it keeps chugging along, and in fact, it lights the homes of the people who work in the factory, instead of the factory. Net carbon reduction? Negative, the Chinese use their part of the swindle to pave a bigger road to the factory.

These games should be familiar to anyone who studies monetary history. Whenever there is a shift in the organic basis of the economy, those who profitted from the old one try to simply declare that the new economic basis belongs to them, because, well, everything belongs to them anyway. It doesn't work, because the solutions to new economic problems will not be found by the people who created them.

One of these examples is the conversion from a coal and rail based economy to a petroleum based economy. In the US, the holders of key rail rights could borrow gold money, and use it to speculate, knowing that, at the end of the day, they had the right to extract gold money from everyone who wanted to move. Absent a road system capable of competing with rail, there was no choice. If you wanted to move, you had to use water, which was slow and cumbersome, or rail.

What changed this was, first electricity and the telephone - allowing organization without using transportation. And then, the road system. Suddenly the barrier to entry was a cheap, personally affordable, piece of capital. Trucks are in many ways less efficient than rail, but anyone can buy a truck. The suggestions to nationalize the rail system died, because the solution was to end run it.

The same thing is true here, the people who own the chokehold want, in effect, trillions of dollars of free money - that is not having to pay for the damage of global warming that is happening now and will accelerate. They want to charge you for every bit of ammelioration done.

Make the poor pay, it is the battle cry of the neoconservative age. And we must end it if we are ever to be free again. America is a progressive America now because the poor can't pay any more, they have been robbed into the grave. To be a liberal America again, we have to pry the future out of the dead hands of the past.


Stirling Newberry April 6, 2007 - 8:31am
( categories: Miscellany )

I don't understand the actual trade. Can you link to something where the proposed trade is shown with numbers, so I can see what the scam is?

I see the import of your position but I'd like to see some nuts and bolts.

http://mauberly.blogspot.com/

mauberly April 6, 2007 - 10:04am

start here, with an earlier post by stirling

colorless green... April 7, 2007 - 12:42am

New market systems, such as the carbon cap and trade, have always been designed by the entrenched economic powerholders, in attempt to perpetuate their own dominance.

Our best hope now is that information technology can enable people like us to subvert the old pattern. Grassroots, bottom-up organizers can teach and inform like never before. But so can the corporate interests, who have professional experts and lawyers hammering out new systems for themselves.

How can we interrupt the conversation among the corporate interests, in a constructive way, to help design a market system in our own (miriad different) interests?

quigleydoor April 6, 2007 - 1:17pm

means getting fucked in the ass.

The opposition to the present system will start to be effective when it stops playing kajira.

The solution is to change the monetary system and tax carbon at the top, not the bottom. The problem in political economy is "how to tax the oilarchies", a monetary system can do that, because they need to buy things.

Stirling Newberry April 7, 2007 - 1:17am

means widespread violence, suffering, and destruction of wealth. A radical solution, such as a new monetary system, can only be imposed after a time of crisis. Do you agree or are you envisioning something less radical?

You want to move away from oil money, but to what instead? To a Keynesian bancor or something?

Aside from your talk about changing the monetary system (which I'd like to learn more about), actually I think your position is similar to Martin Wolf. He wants a global carbon tax, with no exemptions:

1. The world will reduce carbon emissions efficiently only if the marginal cost of doing so is the same in all activities. That is what a common world price would ensure. But it is hard to agree common taxes across the world. For that reason emissions trading (ideally, with auctionable permits) will also be part of the picture. In some cases, aviation being one, emissions trading seems the only way to proceed.

2. Large investments will be needed in new energy technologies and, particularly, in carbon-capture and storage. Providing those technologies to developing countries on generous terms (ideally free) would be one way of persuading the latter to participate in curbing emissions.

3. Furthermore, given the urgency of changing everybody’s behaviour, regulatory standards need to “turbo-charge” the price mechanism.

4. Above all, the big developing countries must participate. One way to achieve this, discussed in the report, is for the developed countries to take responsibility for financing reductions in energy intensity in developing countries. Jagdish Bhagwati, has proposed the creation of a “superfund” financed by taxation in the developed countries, including carbon taxes, with the proceeds used for research and for subsidising purchase of relevant technologies by developing countries.

5. Finally, the world must have a long-term global framework that provides incentives for changes in behaviour. Without that, the private sector will be unable to adapt and innovate as effectively as it needs to.

Source: "Curbs on emissions will take a change of political climate", by Martin Wolf, Financial Times, November 7, 2006, http://www.ft.com/cms/s/cb25e5a4-6e7f-11db-b5c4-0000779e2340.html

quigleydoor April 7, 2007 - 3:45pm

down at the state level?

lots of states are considering carbon emissions legislation, most prominently the western states that have recently allied with together to begin a regional trading bloc under california's "cap and trade" system.

we obviously (?) can't do anything about the monetery system down at the state level. we could enact a carbon tax as a first step--if it were politically feasible--beyond that i am bereft of ideas.

colorless green... April 6, 2007 - 2:52pm

1. Change electricity laws, which are state laws, so as to end favorable treatment for carbon intensiveness.

2. Roll back most deregulation, it hasn't worked, and won't work - it will be easier to reform a consolidated electrical system.

3. Remove barriers to non-carbon production.

4. Change zoning laws.

5. Institute inner city residential development, buy up dead property at fair market rates and convert to higher density living.

6. Telecommuting and teleducation. I could list this 5 times.

Stirling Newberry April 7, 2007 - 1:21am

http://www.ucsusa.org/publications/catalyst/page.jsp?itemID=27226959

I don't see how fraud is built into the above example. You've built that into your analysis with the hypothesis of fraud in China. Then you say that the people who are trading the credits are rich.

"But who has credits? Why people who are already making things and are thus rich."

No; they could be in debt and have negative equity in their business.

However, if you build systemic fraud into it, what you're saying is true:

"It creates a rent where by the people who pollute now, and are causing the damage now get to determine who gets into the economic system, and a black hole to "cap and trade" with entities that don't cap."

You create a reason, with the assumption of Chinese fraud, to reject the system out of hand. Everyone with some money will get himself a Chinese partner who has a factory that creates the black hole of which you speak.

If your point is that there is no way to police the fraud, then a cap and trade system won't work. But no system works with fraud.

Now as to the oil companies. They may very well need to be taxed on other grounds, but as long you have large sovereigns which have no interest in curbing their own pollution and which soon will be producing as much soot as the West, you have little leverage to work with, as I see it.

There is also a theoretical problem here, to wit, looking at carbon as a kind of absolute. If an alternative to the rails were the roads and electricity, you do not see one to carbon, just as Marx did not see one to capital and so could see only the 1848 Paris revolts as an answer.

So in essence you conclude the have-nots need to take the carbon.

"To be a liberal America again, we have to pry the future out of the dead hands of the past."

You need to prepare for a long revolutionary struggle.

http://mauberly.blogspot.com/

mauberly April 7, 2007 - 12:03pm

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.