Thursday, May 7, 2009

Cap and Trade AFFECTS US ALL!

The term cap and trade may not be familiar to many average Americans but trust me it is a term that everyone needs to understand. If most Americans realized just how much these three little words are going to cost them, they would not only be familiar with it but they would probably become activist for the first time in their lives.


What is Cap and Trade? It is basically a government imposed system of regulating the amount of carbon emissions. This regulation is done in an attempt to reduce pollution, this is known as the "cap." The government then issues credits that are equal to the sum of the target emissions annual goal. Companies then must then have enough "credits," which are used to burn fossil fuels, to maintain their operations. If a company exceeds it's number of credits, or burns too much fossil fuels, it then will be forced to "trade" for more credits from a company that has not used all of it's credits. This is the "trade" part of Cap and Trade.


Now, if you listen to the libeal media and Al Gore, you might think that this is a great idea, after all it is saving the planet. But when you examine the real intention behind this movement you will see the impact that it will have on energy consumers. This system will eventually lead to a decrease in the amount of energy consumed, it is basically a govt. controlled rationing system. Once the amount of energy consumption decreases the price of energy will skyrocket, this is common knowledge and is based on the laws of supply and demand.


This plan has several cons and very few pros. For example those with enough money will not have a problem purchasing the extra credits needed to use more energy. While the average American sits at home in the dark, the Al Gores of the world will be flying around on their lear jets burning the fuel that we can't afford to buy, but remember what they are doing is not to be called pollution, they simply will be able to afford the energy that you and I can't. Another con of Cap and Trade is that it will severely hurt the Coal Industry and it will have a major impact in the coalfields employment rate. By creating a big corporate payoff. Companies that have already invested heavily in low CO2 (read: less efficient) energy sources will finally get bailed out of their bad investments. Companies like Google and Microsoft, who have limited emissions, will actually profit by selling their "credits" to other sources that need them.


This sysetem of Cap and Trade does not solve the phony global warming problem nor does it create wealth, but it does re-distribute and transfer wealth among corporations. If this sounds familiar it should, not only is wealth being re-distributed among the citizenry but now it will be done so among corporations. In an interesting note, one of the largest supporters of this movement is General Electric, who just happens to sell some of the most energy efficient products on the market today. When the price of energy goes up 65 to 70 percent, everyone will be trying to cut corners by purchasing more energy efficient products and guess who is going to profit? Thats right GE!


Finally, the bottom line question about Cap and trade comes down to this, how much or what will it cost you financially? At this time no specific dollar amount has been affixed to this proposal, however it will result in a rather large TAX on the average American family. Some estimates have it at around $1,500 annually to as high as $3,800, I imagine that it will be somewhere in between. Now there will be some that will argue as to how this is going to passed on to the consumer, the response is simple. When have you ever heard of a large coporation NOT PASSING it's financial burdon onto it's customers. Mark it down "we the people" will pay for Cap and Trade and we will pay heavily.

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