RSS
 


The Next Banker Casino: Moving from RMBS Fraud to Cap and Trade Fraud…

24 May

In this eye opening report from Washington’s Blog we see that once again the big players in financial manipulation are happy to shift their focus to play in another arena: Carbon Credits and Cap and Trade.

When all the major environmental groups, scientists, Bloomberg and huge lists of others point out that Cap and Trade will simply move carbon production and in fact, earlier models have already proven this sort of thing actually increases carbon production globally…

When the economists who came up with the idea of carbon trading say Cap and Trade will not work to control global carbon emissions… well, you can see once again that the bankers and financiers will simply use the entire thing as a way to make the rich even richer.

Seems like we might want to reconsider this idea – or scrap it altogether.

Cap and Trade: A Gigantic Scam

from Washington’s Blog by George Washington

1 person liked this

As I pointed out in December:

James Hansen – the world’s leading climate scientist fighting against global warming – told Amy Goodman this morning that cap and trade not only won’t reduce emissions, it may actually increase them:

The problem is that the emissions just go someplace else. That’s what happened after Kyoto, and that’s what would happen again, if—as long as fossil fuels are the cheapest energy, they will be burned someplace. You know, the Europeans thought they actually reduced their emissions after Kyoto, but what happened was the products that had been made in their countries began to be made in other countries, which were burning the cheapest form of fossil fuel, so the total emissions actually increased…

See also this and this.

Environmental groups such as Friends of the Earth and Greenpeace are also against cap and trade (and see this and this), as is the head of California’s cap and trade program for the EPA.

Hansen also told Goodman that (notwithstanding Paul Krugman’s assertions) most economists say that cap and trade won’t work:

I’ve talked with many economists, and the majority of them agree that the cap and trade with offsets is not the way to address the problem.

As I have previously pointed out:

  • The economists who invented cap-and-trade say that it won’t work for global warming
  • European criminal investigators have determined that there is a tremendous amount of fraud occurring in the carbon trading market. Indeed, organized crime has largely taken over the European cap and trade market.
  • Former U.S. Undersecretary of Commerce for Economic Affairs Robert Shapiro says that the proposed cap and trade law “has no provisions to prevent insider trading by utilities and energy companies or a financial meltdown from speculators trading frantically in the permits and their derivatives.”
  • Our bailout buddies over at Goldman Sachs, JP Morgan, Morgan Stanley, Citigroup and the other Wall Street behemoths are buying heavily into carbon trading (see this, this, this, this, this, this and this). As University of Maryland professor economics professor and former Chief Economist at the U.S. International Trade Commission Peter Morici writes:

    Obama must ensure that the banks use the trillions of dollars in federal bailout assistance to renegotiate mortgages and make new loans to worthy homebuyers and businesses. Obama must make certain that banks do not continue to squander federal largess by padding executive bonuses, acquiring other banks and pursuing new high-return, high-risk lines of businesses in merger activity, carbon trading and complex derivatives. Industry leaders like Citigroup have announced plans to move in those directions. Many of these bankers enjoyed influence in and contributed generously to the Obama campaign. Now it remains to be seen if a President Obama can stand up to these same bankers and persuade or compel them to act responsibly.

    In other words, the same companies that made billions off of derivatives and other scams and are now getting bailed out on your dime are going to make billions from carbon trading.

One the largest boosters for cap and trade invented credit default swaps – which were supposed to increase financial stability, but instead were a large part of the reason that the world economy crashed last year

Jeanne Roberts provides an update at environmental website Celsius:

The E.U. carbon emissions trading fraud is huge, but perhaps nothing compared to the potential for cheating that will become available in the United States once Waxman-Markey, or some similar scheme for reducing carbon emissions, emerges from the Senate to become law.

***

As Bloomberg notes, a carbon trading market organized around derivatives (sometimes known as credit default swaps, or CDS) is “open to manipulation,” in the words of billionaire hedge fund investor George Soros.

In fact, some old-school environmentalists see the whole carbon trading scheme as not a way to curb climate change, but merely a way to make the rich even richer at the expense of the rest of us. As Larry Lohmann, the founding member of the Durban Group for Climate Justice, says, “Dishonesty is rife throughout the carbon offset market.”

In January, investigators from Belgium said that in some E.U. countries, 90 percent of the market volume in carbon trading was based on criminal activities.

 
No Comments

Posted in Blog

 

Tags: , , , , , , ,

Leave a Reply