Our nation's debt is literally indenturing our children to our international debt holders, but most Americans don't care because they are more concerned about the latest saga involving Snooki on Jersey Shore rather than what really matters, our country’s future.

Thursday, June 25, 2009

Cap and Trade Will Destroy the Middle Class and the Small Business Person

As I am sure you are aware the House will be voting on the Cap and Trade bill tomorrow. This bill will not decrease pollution or solve climate change( if there is such a thing, check out this study on the accuracy of our temperature records http://www.surfacestations.org/ ) but rather is simply another tax on hardworking Americans.

As James Pethokoukis noted in this March 2009 blog on U.S News & World Report:

"The 1% decrease in emissions is projected to cost the average taxpayer an additional $1437 a year by 2015 alone with significant increases projected from that point forward. electricity costs will increase by between 5 -15%natural gas will increase by between 12- 50%gasoline will increase by between 9-145%"http://tiny.cc/HOVZa

As if higher costs for energy weren't bad enough the whole scam behind this bill is carbon trading. A recent study by Duke University's Nicholas Institute for Environmental Policy Solutions ( http://tiny.cc/UVe92 ) anticipates that the law will result in derivatives trades that will exceed the market for allowances. Some of the same big players that brought us the mortgage backed securities market, JP Morgan, Morgan Stanley and Goldman, already have active carbon trading desks and are salivating over this legislation (by the way ENRON was a huge supporter of Cap and Trade and we all remember how honest they were). If this market careens out of control because of Wall Street greed, which based on past examples how can we expect it not to, this will result in another huge financial bubble. The Cap and Trade derivatives marketplace has the potential to make the mortgage backed securities mess look like a simple market correction. The current plan is to buy carbon credits from Third World nations so industrialized nations can continue to pollute. Yes, that's right the same Third World countries that steal their own countries wealth are going to be dealing with Wall Street, who steals our country's wealth (sounds like a match made in Hell).

It appears that most of the Republicans are going to be voting against this legislation if for no other reason then its Obama's pet project. While I wish they weren't supporting it on principal, rather than being contraries, I will have to live with the result. There are still many Democrats are on the fence right now and I urge you to call you Representative and let them know your feelings on the matter. My wife and I have already called our Representative.

If this bill passes businesses like my father-in-law's, plastic manufacturers, will lose out big time. Currently small businesses like his have to compete with both larger U.S manufacturers and the Asian tigers for market share. If this legislation passes his cost for both raw materials and the electricity he needs to run his machines will increase substantially thereby driving up the costs for his goods. He currently employs over 100 hard working Americans. We have already lost most of our manufactoring in this country because of cheaper labor can we really stand to lose anymore. The last thing we need right now is higher unemployment take action before its too late.

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