Cap and trade will increase the price of all commodity trades for the benefit of Goldman Sachs, a tentacle-like presence in elected government such as the Congress, through White House appointments, as well as some less transparent areas like the Fed and the Treasury Department. Cap and Trade is structured as a private tax, such that the government will never see the revenues, they will go straight from the carbon-producing into the hands of the non-producing.
And instead of credit derivatives or oil futures or mortgage-backed CDOs, the new game in town, the next bubble, is in carbon credits – a booming trillion- dollar market that barely even exists yet, but will if the Democratic Party that [Goldman Sachs] gave $4,452,585 to in the last election manages to push into existence a groundbreaking new commodities bubble, disguised as an “environmental plan,” called cap-and-trade. The new carbon-credit market is a virtual repeat of the commodities-market casino that’s been kind to Goldman, except it has one delicious new wrinkle: If the plan goes forward as expected, the rise in prices will be government-mandated.
The readership of BMG should take a closer look at this program before endorsing it in the name of environmentalism. If it passes it would be in the service of mega-billionaires to the detriment of the middle class, and the middle class is the last defender of the freedoms that we hope to preserve. We have been misled to attack the drivers of SUVs and the guy mowing his lawn, while financial overlords use their influence to get massive amounts of tax money transferred to them in the form of bailouts, covering one bubble after another.