Sunday, July 6, 2014

Negative Effects of Carbon Cap Tariffs Could Cause Panic And Depression Worse Than The Great Depression

Negative Effects of Carbon Cap Tariffs Could Have the Same Negative Effects as the Tariffs Passed by Congress that Caused the Great Depression Lex Loeb Network . I did the research and found that a lot of the rhetoric in the present election concerning capping green house gases and carbon based fuel consumption is dangerously familiar when one realizes it amounts to exactly the same thing as a tariff imposed on foreign producers. The equivalence is should be a warning sign to voters who have some historic perspective. It really does not matter if the oil production/ coal production is national or far away in a place like China. The problem is also that the economy in the United States has not yet fully depreciated the mechanical equipment that runs on petroleum based products. It means the entire economy would need to be re-capitalized. That essentially means that the system has become insolvent. Tariffs cause international trade inefficiency which can lead to job loses on more than one continent. Worse is the mis-allocation of resources into unproductive means of production. The Great Depression was prolonged and precipitated by the passage of anti free trade legislation. Market declines first showed up overseas and then spread to the US market. The 1920s boom in the US was in a large way funded by the British making easy credit available in the states in a vain attempt to get their gold reserves back, Mercantilism was a more powerful force than today at the time instead of the free trade mantra most economists now believe is the best economic pathway foreword. Instead of a Marshall Plan the Victorious Allies after world war I were hitting Germany and its ex-allies with major reparation debts. The Marshall plan was essentially an artificial trade deficit because it sent wealth bearing US currency overseas for free goods and services from the US. The plan had the exact equivalence of the OPEC countries and China having a huge trade surplus with the US now except that the US expected to get no oil or manufactured goods or services back in exchange for cash payments. The Marshall Plan's success totally destroyed the scientific theory that Mercantilism was the better approach over free trade and it proved conclusively that trade deficits are beneficial to all parties chance supply will stay up and demand will languish as the price climbs to prevent carbon use. Water water everywhere and not a drop to drink is one possible out come. Oil ,oil, natural gas and not a gallon of gas could become the near term problem. Some economist argue that demand for gasoline and fuel is inelastic. That just got disproved as expected when the financial news media started calling the recent drop in demand "demand destruction." What that means is that it is not so inelastic. Truckers can go out of business to rail road hauling in a flash with carbon caps in place and a hole lot of machines that power our economy can become a lot more expensive to run. It is one thing to phase out the gasoline engine over time and another to cut a reasonable supply of fuel to the machines that have capital invested in them for a reasonable life span. The carbon cap nonsense could quickly spiral out of control in the economy causing economic catastrophe. In the great depression the highest rate of unemployment was only a bit over 20 percent. Compared to much of central and Latin America where unemployment levels often remain between 40 and 80 percent the US depression was not nearly as bad as it could get. Before instituting any carbon legislation the science behind green house global warming theology should be checked and re-checked for absolute proof and not the maybe if we don't start doing something now something bad will happen mentality that got Al Gore his Nobel peace prize. It is instructive to note that Al Gore received the prize poets and politicians get and not a prize for climatology research. No one got a prize for discovering green house gas effect. Some of the scientists who originally published the theory have even since defected from it. The Carbon hysteria looks, feels, tastes and smells just like the pseudo science that gave us the spotted owl catastrophe that is still ongoing. After years of wasted money, in the billions and destruction of private property rights, on these owls it turns out they never were a separate species and that they do live in non old growth forests and that they are under attack from a species relative the barred owl and the common barn owl. The news media fails to tell the public that they interbreed which is one reason the spotted characteristics disappear from the population of owls. Those lies were never science and have gone on too long and too far with no net gain in spotted owl populations. An entrenched spotted owl bureaucracy still lobbies Washington for more and more funding . The hole program is fraud worse than Enron because it is our public money that could be doing real good elsewhere. The carbon hysteria looks like it is pure pseudo science too. When the US supreme court sided with the EPA saying that carbon dioxide is a pollutant I almost stopped exhaling because that is we all exhale and so do our farm animals. When lawyers and politicians become expert scientists like this watch out. Because the carbon hysteria has been prepackaged and manufactured to allow environmental kook groups to gain political power the way they used the spotted owl nonsense for leverage in the courts and the congress, we are looking at a complete state of unreality. The cause of polar melt down cannot be statistically tied to more CO2 in the atmosphere because a thousand and two thousand years ago the exact same thing happened and worse and there were no SUVs or fossil fuels being used. involved though there may be a lag time for all to benefit. The Carbon tariff legislation now proposed and apparently supported by both presidential candidates in some form is looming as a threat that is potentially more destructive than tariff legislation put in place in the late 1920s. The reason why is that no only does the carbon cap taxes hit foreign producers it hits positive net cash flow companies here at home. The negative compounding effect in the 1920s led to deflation and that actually could happen again. Home prices falling at the moment is a sign of a major deflation and we see it here and overseas now. If carbon caps go into effects there is a good At the moment there is no experiment and no statistical proof that higher levels of co2 in the atmosphere are anything other than a coincidence. Watch out for statistics. We often want to believe what we read but are not always thinking. Once in a while a newspaper publishes a piece about a "Cancer Cluster" five or ten people have two or three types of cancer in an area What the newspapers don't tell you is that the area has 50,000 to 200.000 people so the cluster of 15 maybe higher than the national or regional average but there are 49,985 out of 50,000 dint have cancer in the cluster area and 199,985 out of 200,000 don't have cancer in another cluster area. The exposure to harmful environmental toxins may not actually be the cause of the clusters but the newspapers have successfully created the hysterical they intended to. Carbon cap tariffs look like they could lead to a major economic disaster. The first thing to worry about is $8-$10 a gallon gasoline. It does not mater if Europe can live with it. The effect in the USA after years of a relatively free market economy to most of the world for gasoline would make that a bigger catastrophe here. Wait and see. Maybe we first have to go into the catatonic economic realm before we learn our lesson? Al Gore is working behind the scenes to force carbon caps on us sooner or later. Just beware. . Close

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