Best of the Week
Most Popular
1.Stock Market Continues Defying Gravity, Dow New All Time High - Nadeem_Walayat
2.America Superpower 2016 - Ian Bremmer
3.The US Dollar and the Precious Metals Complex - Rambus_Chartology
4.UK Immigration Crisis Could Prompt BREXIT, Propelling Britain Out of EU Despite German Factor - Nadeem_Walayat
5.The “Real Flash Crash” Will Scare You to Death - Shah Gilani
6.Gold Price Trend Forecast - Bob_Louka
7.UK Deflation Warning - Bank of England Economic Propaganda to Print and Inflate Debt - Nadeem_Walayat
8.Gold Lifeboat to Global Economies “Titanic Problem” Warn HSBC - GoldCore
9.Will Interest Rates Ever Rise? - BATR
10.Who’s Killing the Stock Market? - Shah Gilani
Last 5 days
Stock Markets Buy and Hold is Back! - 28th May 15
We're Now Frighteningly Vulnerable to a Bond Market Crash - 28th May 15
Austerity, Economics and Religion - 28th May 15
National Holidays London and the Magic of Legoland UK Review - 27th May 15
Imminent Stocks Bear Market Signaled by Dow Theory ... - 27th May 15
Gold Price Has Bottomed – More Evidence - 27th May 15
Three Reasons You Shouldn’t Try to Invest Like Warren Buffett - 27th May 15
Gold Is “100% Guarantee from Legal and Political Risks” States Russian Central Bank - 27th May 15
Don't Drown in the Sea of Global Debt - 27th May 15
Three Reasons Why Carl Icahn Is Wrong About Apple Stock - 27th May 15
Crude Oil Price Stochastic Signals - 26th May 15
Why the Stock Market Will Crash - 26th May 15
GDP, Inflation, Employment Economic Statistics: It’s All a Lie - 26th May 15
Introduction to Peak Food - 26th May 15
Should We Dump the Euro? - 26th May 15
A Geopolitical Net Assessment of Europe - 26th May 15
Stock Market Top in Place? - 26th May 15
Best Cash ISA SBI 2.3% - 2.8 Year Fix, UK Interest Rates 2016 - 26th May 15
China Sets Up Gold Bullion Fund For Central Banks - 25th May 15
Is The Silver Trade Getting Crowded? - 25th May 15
Money Murder Mystery: Who Killed the Stock Market? - 25th May 15
Why Do We Celebrate Rising U.S. House Prices? - 24th May 15
Mario Draghi’s Slippery Downward Slope - 24th May 15
Gold : Truth is Stranger than Fiction - 24th May 15
Facebook Stock Price Forecast - 24th May 15
Make a Killing on the Coming Energy "Debt Bubble" - 24th May 15
Stock Market SPX Uptrend Inflection Point - 23rd May 15
What You Know for Certain - Huge Demand for Gold And Silver - 23rd May 15
Are We in Another Credit Bubble? And Is It Different than Before? - 23rd May 15
The “Real Flash Crash” Will Scare You to Death - 23rd May 15
Venezuela: No Rule of Law, Bad Money - 23rd May 15
Robots That Can Beat the Market by 100% - 23rd May 15
Why Shake Shack Stock Is a Bad Investment - 23rd May 15
Gold Price Primary Driver Bullish - 23rd May 15
Time To Get Real About China - 22nd May 15
Gold Lifeboat to Global Economies “Titanic Problem” Warn HSBC - 22nd May 15
One Investment Could Save Two Generations' Retirements - 22nd May 15
Investing is About Identifying Gifted and Talented Camps - 22nd May 15
One of Europe's Latest Debt Nightmares - 22nd May 15
UK Immigration Crisis Could Prompt BREXIT, Propelling Britain Out of EU Despite German Factor - 22nd May 15

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Biggest Debt Bomb in History

Beating The Retreat From Global Warming

Politics / Climate Change Sep 15, 2013 - 07:37 PM GMT

By: Andrew_McKillop

Politics

AUSTRALIA SCRAPS THE LOT
When Tony Abbott swept to power, September 7, the defeat of preceding prime minister Kevin Rudd was politely described as “not a rout” by climate-correct media outlets such as Britain's 'Guardian', but Abbot lost no time in taking down and trashing the mix-and-mingle of climate policies and programs thrown together by Rudd's Labour Party. Labour ran a negative campaign alleging that Abbott would bring in European-style austerity via budget spending cuts. Abbott parried this by targeting cuts in the swath of costly-but-ineffective anti-global warming and pro-low carbon programs, created by Labour, as one of his first moves if he won power.


Under the Rudd-appointed Climate Change Commission headed by Rudd's longtime ally, Ross Garnault, Australia had veered to extremes of climate correct. The Garnault proposals, including cap and trade and ever-rising carbon taxes were lauded by the self-appointed global guardians of climate-correct and taxing everybody to “mitigate” supposed climate change, such as Britain's 'Guardian', and of course the iconic Nobel Peace prizewinner duo of Al Gore and Rajendra Pachauri.

During a heated election run-up TV debate, in which Abbott called carbon taxes and emissions trading “absolute crap”, he also said: "This is not a true market. Just ask yourself what an emissions trading scheme is all about," adding: "It's a so-called market for the non-delivery of an invisible substance to no-one”.

Australia's CO2 credits trading scheme, modeled on Europe's flailing ETS, with no surprise, will be the very first to be dumped. On 8 September, flush from victory at the polls, Abbott announced: “Obviously, a very early item of government business is scrapping the carbon tax”. His party's analysts estimate the scheme had ballooned into a $6 billion-a-year boondoggle, since its start in 2008 following Garnault's report on the claimed climate crisis facing Australia.

Speaking to ABC News in July, Abbott's future Environment minister Greg Hunt called the scheme a 'classic Rudd government con' saying: "This is a classic Kevin Rudd con, because whether it's called a carbon tax or whether it's called an ETS, it's still a carbon tax and it's still intended to go up to $38”, by or before 2020.  Garnault's commission of 2008 include recommendations of constantly raising carbon taxes to finally reach $100 (1 Australian dollar is 92 US cents) per tonne of CO2, the amount emitted by burning about 2.5 barrel of oil.

This would be equal to adding a new tax of around $40 on every single barrel of oil, or oil equivalent fossil energy used in Australia.

ECONOMIC SUICIDE
For the banksters, brokers and traders playing carbon markets – where they exist – we can be sure that the bigger the tax paid by users and consumers of energy, the richer the picking are for them. Like any other “asset play” greed got in the way, forcing the pace of bankster pressure on the crony political elite to constantly increase carbon taxes “to save the planet”. Shutting down businesses and throwing people of work is “saving the planet”.

In the European case, its corruption-riddled ETS (Emissions Trading Scheme), which started in 2005, has since late 2012 been on life support – due to wanton over emission, or issue, of emissions credits.

European bureaucrats, pressured by the so-called “financial community”, led by the major banks milking ETS – Barclays, Deutsche Bank and Societe Generale – issued so many tradable credits, that their unit value collapsed. They became worthless chaff, like Russian pre-revolutionary bonds and warrants – handy for making lampshades and nothing else.

Since early 2013, European bureaucrats, national governments and the “financial community” have been scrambling to “rescue ETS”, but over-issuance of credits, declining or stagnant use of energy, the delocalization of European industry outside Europe, to not pay emissions credits, the growth of green energy, and energy efficiency improvements have converged to destroy the credibility of ETS.

Australia's copycat ETS, which had a five-year total lifespan of 2008-2013, was merely a bad copy of ETS at the wrong time – due to the same factors.

So-called “monetizing carbon” is the goal of setting carbon taxes, tradable credits, cap-and-trade regimes - and anything else banksters and traders can play with, and gouge profits from, but it always has an economic cost. The pretence that carbon taxes will reduce “carbon effluent in the atmosphere”, and play a high-level environment responsible role for the future, was always contradicted by what it meant in the real world. Forcing everybody to pay more for energy – so that a few can profit from driving energy prices always higher. In several countries – including European countries such as the UK and Germany – one direct result of “carbon correct” is to force power producers to import more coal or burn more locally produced coal. This is simply to stay in business, because coal energy is the cheapest of all, made even more competitive because emissions credits are nearly worthless, and do not raise coal-based power prices to anywhere near the price of power from other fuels. In 2012, European coal-based power increased at rates as high as 15% depending on country.

HYPOCRISY DEMOCRACY
With no surprise, the global warming debate has morphed into a heretic-hunting, propagandized illiberal environment. For a long while it was blasphemy for anyone to dare questioning the IPCC's Hockey Stick version of climate science. Building from the early 2000's, climate-correct was forced through all mainstream media outlets – in the developed countries, only - as the elite policy consensus to “decarbonize the economy” sailed along on a magic carpet of hype. Politicians who seemed not to understand their clownishness and pomposity, like Australia's Mr. Rudd even claimed that climate change was “the great moral challenge of our times”. To be sure, their fat cat salaries and perks shielded their precious selves from energy costs gouged ever upward in the real world, feeding off their hypocritical, pompous, and lying propaganda, but the economic damage was impossible to ignore.

When the end comes for climate-correct, there is no trace of the Climate Crazies with paint on their faces who danced and gurgled at those multi-million-dollar UN conferences on the climate “crisis”, while their heroes like Kevin Rudd primped and preened in front of a dangled microphone.

In Australia's case, Tony Abbott had on many occasions attacked the insane absurdity of “fighting” the emission of greenhouse gases by taxing anybody at all who uses energy. Cap and trade, he said, was economic pain with no environmental gain, for a nation that accounts for 1.4% of world emissions of greenhouse gases. Now that Australia has come to its senses, Japan and Canada have abandoned carbon taxes, and Europe's ETS is on life support, this only leaves Mr Barack Obama's attempts to breathe some hot air back into the cold corpse of climate correct among the Western developed countries. Since the effort is led by Obama himself – this will help seal his fate as one of the worst and weakest US presidents in decades – even compared to George W. Bush !

By Andrew McKillop

Contact: xtran9@gmail.com

Former chief policy analyst, Division A Policy, DG XVII Energy, European Commission. Andrew McKillop Biographic Highlights

Co-author 'The Doomsday Machine', Palgrave Macmillan USA, 2012

Andrew McKillop has more than 30 years experience in the energy, economic and finance domains. Trained at London UK’s University College, he has had specially long experience of energy policy, project administration and the development and financing of alternate energy. This included his role of in-house Expert on Policy and Programming at the DG XVII-Energy of the European Commission, Director of Information of the OAPEC technology transfer subsidiary, AREC and researcher for UN agencies including the ILO.

© 2013 Copyright Andrew McKillop - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisor.

Andrew McKillop Archive

© 2005-2015 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

Biggest Debt Bomb in History