Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Eiro-group Review –The power of trading education - 4th Dec 20
Early Investors set to win big as FDA fast-tracks this ancient medicine - 3rd Dec 20
New PC System Switch On, Where's Windows 10 Licence Key? Overclockers UK OEM Review (5) - 3rd Dec 20
Poundland Budget Christmas Decorations Shopping 2020 to Beat the Corona Economic Depression - 3rd Dec 20
What is the right type of insurance for you, and how do you find it? - 3rd Dec 20
What Are the 3 Stocks That Will Benefit from Covid-19? - 3rd Dec 20
Gold & the USDX: Correlations - 2nd Dec 20
How An Ancient Medicine Is Taking On The $16 Trillion Pharmaceutical Industry - 2nd Dec 20
Amazon Black Friday vs Prime Day vs Cyber Monday, Which are Real or Fake Sales - 1st Dec 20
The No.1 Biotech Stock for 2021 - 1st Dec 20
Stocks Bears Last Chance Before Market Rally To SPX 4200 In 2021 - 1st Dec 20
Globalists Poised for a “Great Reset” – Any Role for Gold? - 1st Dec 20
How to Get FREE REAL Christmas Tree 2020! Easy DIY Money Saving - 1st Dec 20
The Truth About “6G” - 30th Nov 20
Ancient Aztec Secret Could Lead To A $6.9 Billion Biotech Breakthrough - 30th Nov 20
AMD Ryzen Zen 3 NO UK MSRP Stock - 5600x, 5800x, 5900x 5950x Selling at DOUBLE FAKE MSRP Prices - 29th Nov 20
Stock Market Short-term Decision Time - 29th Nov 20
Look at These 2 Big Warning Signs for the U.S. Economy - 29th Nov 20
Dow Stock Market Short-term and Long-term Trend Analysis - 28th Nov 20
How To Spot The End Of An Excess Market Trend Phase – Part II - 28th Nov 20
BLOCKCHAIN INVESTMENT PRIMER - 28th Nov 20
The Gold Stocks Correction is Maturing - 28th Nov 20
Biden and Yellen Pushed Gold Price Down to $1,800 - 28th Nov 20
Sheffield Christmas Lights 2020 - Peace Gardens vs 2019 and 2018 - 28th Nov 20
MUST WATCH Before You Waste Money on Buying A New PC Computer System - 27th Nov 20
Gold: Insurance for Prudent Investors, Precious Metals Reduce Risk & Preserve Wealth - 27th Nov 20
How To Spot The End Of An Excess Market Trend Phase - 27th Nov 20
Snow Falling Effect Christmas Lights Outdoor Projector Amazon Review - 27th Nov 20
4 Reasons Why You Shouldn't Put off Your Roof Repairs - 27th Nov 20
Further Clues Reveal Gold’s Weakness - 26th Nov 20
Fun Things to Do this Christmas - 26th Nov 20
Industries that Require Secure Messaging Apps - 26th Nov 20
Dow Stock Market Trend Analysis - 25th Nov 20
Amazon Black Friday Dell 32 Inch S3220DGF VA Curved Screen Gaming Monitor Bargain Deal! - 25th Nov 20
Biden the Silver Bull - 25th Nov 20
Inflation Warning to the Fed: Be Careful What You Wish For - 25th Nov 20
Financial Stocks Sector ETF Shows Unique Island Setup – What Next? - 25th Nov 20
Herd Immunity or Herd Insolvency: Which Will Affect Gold More? - 25th Nov 20
Stock Market SEASONAL TREND and ELECTION CYCLE - 24th Nov 20
Amazon Black Friday - Karcher K7 FC Pressure Washer Assembly and 1st Use - Is it Any Good? - 24th Nov 20
I Dislike Shallow People And Shallow Market Pullbacks - 24th Nov 20
Small Traders vs. Large Traders vs. Commercials: Who Is Right Most Often? - 24th Nov 20
10 Reasons You Should Trade With a Regulated Broker In UK - 24th Nov 20
Stock Market Elliott Wave Analysis - 23rd Nov 20
Evolution of the Fed - 23rd Nov 20
Gold and Silver Now and Then - A Comparison - 23rd Nov 20
Nasdaq NQ Has Stalled Above a 1.382 Fibonacci Expansion Range Three Times - 23rd Nov 20
Learn How To Trade Forex Successfully - 23rd Nov 20
Market 2020 vs 2016 and 2012 - 22nd Nov 20
Gold & Silver - Adapting Dynamic Learning Shows Possible Upside Price Rally - 22nd Nov 20
Stock Market Short-term Correction - 22nd Nov 20
Stock Market SPY/SPX Island Setups Warn Of A Potential Reversal In This Uptrend - 21st Nov 20
Why Budgies Make Great Pets for Kids - 21st Nov 20
How To Find The Best Dry Dog Food For Your Furry Best Friend?  - 21st Nov 20
The Key to a Successful LGBT Relationship is Matching by Preferences - 21st Nov 20
Stock Market Dow Long-term Trend Analysis - 20th Nov 20
Margin: How Stock Market Investors Are "Reaching for the Stars" - 20th Nov 20
World’s Largest Free-Trade Pact Inspiration for Global Economic Recovery - 20th Nov 20
Dating Sites Break all the Stereotypes About Distance - 20th Nov 20

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

Democrats Abandon the Environment

Politics / Climate Change Jul 16, 2009 - 09:10 AM GMT

By: Global_Research

Politics

Best Financial Markets Analysis ArticleShamus Cooke writes: “As a banker, I also welcome the fact that the 'cap-and-trade' system is becoming the dominant methodology for [carbon dioxide] control.”Simon Linnett, Executive Vice Chairman of Rothschild Bank.


Can the looming environmental catastrophe be solved by environmentalists working side by side with Wall Street Bankers? Such a question doesn’t deserve a serious answer. The Democrats, however, are attempting to address the issue of global warming by developing a “partnership” between those who love the earth, and those who love only profits.

Such a marriage must surely end in divorce. But the Obama administration is enjoying maximum political gain from the blissful honeymoon period, while in reality the honest environmentalists have already left in disgust, even those previously committed to supporting the Democrats: Greenpeace, Friends of the Earth, Public Citizen, etc. They rightfully feel betrayed and point to the Democrats’ “Cap-and-Trade” environmental bill as proof the same bill that Obama and the media claim to be a “historic” step forward.

Cap-and-Trade is itself an absurdity of logic, for it assumes that the economic mechanisms responsible for the destruction of the environment, capitalism, should be the centerpiece of any potential solution. Any solution to global warming that isn't market-based (capitalistic) has been explicitly rejected by the two-party system.

But this immediately presents a new problem: how to create a “profitable market” out of pollution reduction? Such a question can only expect blank stares in return, but the titans of Wall Street are well known for sleight of hand tricks that conjure up billions.

When it comes to Cap-and-Trade, the government has become Wall Street’s vehicle for quick cash. What will be “traded” in Cap-and-Trade is the ability to pollute, called “allowances,” a commodity that promises to be sold and speculated by the really big banks — Goldman Sachs, JP Morgan Chase, Morgan Stanley, etc — who already have eco-trading houses in the U.S., and are simply waiting for the Senate to pass them a tidal wave of cash. And although Obama originally promised that corporations would bid for these allowances from the government, the bill passed by the House demands that only 15 percent be bought, while the rest is given away at taxpayer expense.

The bill also sets a pollution limit or “cap” on designated types of pollutants, with the companies that exceed the cap having to buy more “allowances,” while those that easily meet the cap may sell their allowances to the more polluting company. Thus, the intention is for the worst polluters to have a financial incentive to “go green.”

In reality, however, giant corporations dominate not only the market, but Congressmen, exerting maximum influence at the slightest chance their profits might be threatened. Cap-and-Trade was therefore inbuilt with easily exploitable loopholes, to the great benefit of Wall Street and polluters.

The more obvious loopholes are three-fold: the generous size of the pollution cap, the gigantic amount of free allowances, and the obscure concept of the “offset” — companies may skirt the already-generous cap by being “green” elsewhere, such as by starting a coke bottle recycling program in San Diego or simply purchasing offsets from elsewhere. The ability to regulate this offset loophole is all but impossible, and Wall Street has big plans to trade and speculate the device (commodity) for heavy profit.

Here's what Greenpeace says about the above loopholes: "[Cap-and-Trade] sets emission reduction targets far lower than science demands, then undermines even those targets with massive offsets. The giveaways and preferences in the bill will actually spur a new generation of nuclear and coal-fired power plants to the detriment of real energy solutions."

The key beneficiaries to these loop holes are the especially polluting corporations, such as the giant agri-corporations, big coal, big oil, and nuclear power. If you combine the billions in allowance giveaways with the low cap, you have A LOT of extra allowances to sell on the market, while also having a free-lease to continue polluting for years.

And the pollution may be initially worse than what exists currently, since the new law dismantles portions of the Clean Air Act, specifically the EPA's ability to regulate carbon emissions. A company, therefore, with a heavy allotment of allowances and offsets could legally pollute worse than they could today.

Perhaps the biggest danger the bill presents is the illusion of progress. The scientific consensus around global warming is extremely clear: either we make far-reaching changes in our environmental policy now or face incredible environmental and social devastation in the not-too-distant future.

This means not simply “moving away” from the use of fossil fuels and stricter regulation, but immediately building an alternative energy infrastructure — the mass production of solar panels, windmills, high speed trains, electric buses and cars, bikes, etc. An amazing opportunity to accomplish this was missed with the bankruptcy of General Motors. Instead of using GM's many factories to build for the future while saving jobs, the Democrats opted for the same broken system, building gas-guzzling individual cars, while many factories are to be demolished and the machinery sold for scrap.

This path was chosen because of the threat that the commonsense, environmental option posed: the status quo represented by the ultra-rich do not like actual change (which is why many of them endorsed Barack Obama). Instead, they would like society to stay exactly as it is, since they benefit enormously from it. If there are immense profits to be made in heavy polluting industries, this money will remain a much higher priority than the environment ever will under the two-party system. Loopholes, exceptions, allowances, and offsets will thus maul any attempt to address environmental issues.

To actually address the daunting issue of the environment, a wider perspective is needed, one that transcends both political parties and the broken economic system they are slavishly dedicated to. If society's resources are not used for the betterment of society, the search for profits is destined to destroy the planet.

Shamus Cooke is a social service worker, trade unionist, and writer for Workers Action (www.workerscompass.org).  He can be reached at shamuscook@yahoo.com

Shamus Cooke is a frequent contributor to Global Research.  Global Research Articles by Shamus Cooke

© Copyright Shamus Cooke , Global Research, 2009

Disclaimer: The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of the Centre for Research on Globalization. The contents of this article are of sole responsibility of the author(s). The Centre for Research on Globalization will not be responsible or liable for any inaccurate or incorrect statements contained in this article.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules