From a politically-expedient imposition of a cap and trade carbon market system in America.  Potential Costs to America From Cap-and-Trade

“If you’re not at the negotiating table, you’re on the menu”

If you think energy is expensive now, just wait until our next president, working with a Democratic-majority Congress, implements cap-and-trade rules tailored for the greatest possible gain for special interests and the highest possible costs to consumers and taxpayers.

The CEO of the Chicago climate exchange gave an interview in which he gave us a glimpse into the cap and trade carbon market in the US, even though it isn’t officially mandated  yet.  When asked who is participating in carbon trading, he said “17% of the Dow Jones…IBM, Intel, DuPont, United Technologies.  In addition to that, 11% of the Fortune top 100…Ford, International Paper, Safeway.  20% of the top power companies…AEP, Detroit Edison, Alliant, Reliant.”

Why are they participating, and trading credits now?

“Some of them have a hidden asset.  They’ve already made cuts. They can sell them on our exchange and make a lot of money…. Others are there because they want to gain a competitive lead….  Others want to be there for the political debate.  We have an expression at the Chicago Climate Exchange: ‘If you’re not at the negotiating table, you’re on the menu.’”

Europe’s experience with cap and trade:

Dr. Winegarden notes that “Cap-and-trade has been such a dramatic failure in Europe,  including forcing even “green” factories to fire workers. When asked whether America could learn enough from Europe’s mistakes that we could implement a cap-and-trade system that made sense; Winegarden’s answer was a resounding “no”.  “Cap-and-trade is the politically expedient solution – it has great political merit but no economic merit. We’ll be revisiting this because, like Sarbanes-Oxley, it will create more problems than it will solve”, not least of which will be dramatically increased volatility of energy prices.

Costs to America:

The potential costs to America from cap-and-trade are enormous. The Department of Energy estimates that S. 2191, the Warner-Lieberman cap-and-trade proposal, will increase the cost of coal for power generation by between 161% and 413%. DOE estimates GDP losses (see chart)  over the 21-year period they forecast, at between $444 billion and $1.308 trillion, with particular damage to the manufacturing sector. (This gives some hope that organized labor will, in a rare occurrence, oppose Democratic leaders on this issue.) Winegarden estimates that this bill could increase unemployment by 2.7% or about 4 million jobs. In fact, companies are already preparing to avoid increased level and volatility of American energy prices by setting up factories and partnerships in countries which won’t be subject to cap-and-trade restrictions…proving with real-world behavior of producers that no carbon-limiting regulation can succeed if it is not universal.

Lambs to the slaughter:

As Americans are kept in the dark by gullible mainstream media, industry and special interests are ensuing that cap-and-trade, when it arrives, will either be as damaging as possible to consumers, will accomplish none of its stated goals, or, most likely, both. We taxpayers and consumers are “on the menu” indeed.

H/T Gateway Pundit

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