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Cap and trade betrays American workers

On May 14, 2008, then-candidate Barack Obama made a campaign stop at a Chrysler stamping plant in Michigan.  His theme: fighting to retain America's manufacturing jobs.  Said the candidate:
We'll revive and strengthen all of American manufacturing. These have been a disastrous eight years for our manufacturers. We've lost nearly 4 million good-paying jobs, including hundreds of thousands in Michigan, and more than 36,000 manufacturers have closed their doors. We can't afford to continue down this path. Manufacturing supports one in six American jobs - jobs that pay more and offer better benefits than other jobs - and we all have a stake in saving them.
That was then.  But now as President, Mr. Obama intends to implement policies that will have the opposite effect.  For this will be the unfortunate result of implementing the so-called "market-based cap on carbon pollution" that the President called for in his first Presidential address to both houses of Congress.
 
How so?
 
Well it helps to understand how manufacturing is done.  Generally speaking, in the United States, there are very few, if any, manufacturing facilities that do not use significant automation.  Gone are the days where an assembly line consisted of a row of craftsmen assembling parts using hand tools.  Today's manufacturing worker spends his or her days working in huge, largely mechanized facilities, in many cases essentially overseeing the automated processes that crank out everything from toasters to automobiles.  And what do these facilities all have in common?
 
Power.  They use lots and lots of power.  Power that is today supplied largely by electricity generated from coal and/or natural gas fired generators.
 
And the President is determined to make that power cost a whole lot more.
 
We already massively subsidize solar and wind power, and yet only 1.1 % of all of the electricity produced over the past twelve months came from solar and wind generators.  The main reason for this is cost.  Electricity can be produced at an average cost of $.03 per kilowatt/hour using conventional coal and natural gas production methods.  Producing electricity from renewables like solar and wind, however, costs on average $0.15 per kilowatt/hour.  In other words, "renewable" energy costs five times as much as energy produced from hydrocarbons.
 
Now, most American's care about the environment a great deal.  But few of us can afford to pay five times as much to heat our homes in the winter, or to drive to work five times a week.  So we buy our fuel as cheaply as we can. 
 
That is where "cap and trade" comes in.  By charging massive taxes on carbon dioxide emissions, Obama means to make renewable energy cost the same as carbon-based fuels.  But not by lowering costs on renewables; Obama wants to do it by raising the prices on everything else.  And that spells disaster for consumers.

According to a study cited on the Powerline blog

We find that a mitigation path consistent with Lieberman-Warner's provisions is equivalent to a permanent tax increase for the average American household. This increase is projected to amount to an additional $1100 in taxes in 2008. Moreover, this cap-and-trade "tax" increases over time in real terms from about $1400 to $2000 during 2015-2030 and approximately $2000 to $3000 in 2030-2050. The de facto tax increase becomes quite significant when one considers the average American household spends about $2500 on food annually....

Cap-and-trade will burden households with higher gasoline prices. Table 8 shows the percent difference between the baseline gasoline price and the cap-and-trade adjusted price. All models and scenarios demonstrate that Lieberman-Warner will increase the price of gasoline above the reference scenario price but with large amounts of variation. The CRA predicts that gas prices rise 145% above the reference scenario in 2015. ...

The assumptions driving the price of carbon allowances also affect employment. A higher predicted carbon allowance price gives producers a tighter margin and they are forced to shed jobs to maintain profit levels. The estimates of job losses range from hundreds of thousands to millions.

Now, back to manufacturing.  Why will this positively kill manufacturing in the U.S.?  Well, when someone is looking to open up a factory somewhere, there are basically three costs they will need to consider:  capital equipment, labor, and operating costs.  In broad terms, equipment costs roughly the same no matter where you put it.  So that factor is largely a wash.  And the U.S. is already at a comparative disadvantage relative to other countries, in that wages in the U.S. are the highest in the world. 
 
That leaves operating costs.  For companies operating lots of machinery, those largely take the form of energy bills.  If the cost to power the machinery on an assembly line multiplies, as it will under a cap and trade regime, it will become far less attractive to open a new factory, or maintain existing ones, here in the U.S.
 
We already see in the U.S. the results of such disincentives.
With some of the highest electricity prices in the country, California and New York have hemorrhaged manufacturing jobs. California-based Google houses its massive server farms in states like North Carolina and Oregon, which have lower electricity costs.
Already the U.S. is losing manufacturing jobs at an alarming rate.  As Obama himself noted:  "Since 2000, America has lost 3.7 million manufacturing jobs, a 21 percent decline."  Frankly, there isn't a lot we can do about it.  There are hundreds of thousands of Chinese, Singaporean, Malaysian and other workers who can and will run machinery for a mere fraction of what a U.S. worker earns.  That disadvantage alone will lead to a continued exodus of manufacturing jobs.
 
But if we now heap on a colossal added disadvantage relative to our Chinese and other Asian competitors, all of whom reject the notion of taxing carbon, we will create yet another incentive for manufacturing companies to make their wares, and take their jobs, elsewhere.
 
In a bitter irony, manufacturing remains one of the labor unions' last bastions.  Is this the change that those hard-working Americans were looking for when they voted in overwhelming numbers for this President?
 
 
 
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feel better now?

 

Whew. Glad that’s over. President Obama yesterday pronounced that the stock market is set to rebound:

On the other hand, what you're now seeing is profit and earning ratios are starting to get to the point where buying stocks is a potentially good deal if you've got a long-term perspective on it.

Of course, he is referring to P/E ratio.

One problem: P/E ratio means price/earnings ratio not profit/earnings ratio. Even Anna Kournikova knows that profit and earnings are the same thing. 

Does this guy even invest in the stock market?
 
If Bush said this, Keith Olbermann would be calling him the Stupidest Person in History, or something like that.
Tags: economy  
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oppose the stimulus

The $819 billion (and growing*) so-called stimulus package rests on the notion that American consumers are not spending enough money now, so the Federal government is going to do the spending for us. Call me a cynic, but I believe that if the Feds would just let us keep more of our own money, more than a few of us would be willing to make the necessary sacrifice, and buy some things.

Don’t be duped, like the taxpayers were when we were sold on the $700B bank bailout, a package that was supposed to relieve banks of “troubled assets,” but which instead resulted in government ownership of most of the country’s largest banks.

Visit the site below and sign the petition opposing the so-called stimulus.

You can fight back today by visiting www.NoStimulus.com and joining the growing army of taxpayers saying NO by signing Americans for Prosperity’s petition to stop this disastrous trillion-dollar debt scheme, known as the “Stimulus Package.”

It is critical that we send a loud and clear message to DC politicians that ordinary citizens simply cannot afford the crushing burden and devastating consequences of this initiative.

Please act now to make your voice heard -- and encourage your friends and family to do the same -- by signing AFP’s petition at www.NoStimulus.com.

* $819B equals more than $2,500.00 per man, woman and child in this country. It equals $5,500.00 per taxpayer. What could you do with $5,500.00?

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Doc, it hurts when I do this...

Pat Buchanan is one of America's most respected conservative columnists.  But we all have our blind spots.  Mr. Buchanan's is in the Israeli-Palestinian conflict.
 
Buchanan today opined about the recently concluded hostilities in Gaza.  In his column, he notes of Israeli Prime Minister Ehud Olmert:
Olmert had concluded, late in life, that it is either land for peace, with all its risks, or endless war for Israel.
 
"In the end, we will have to withdraw from the lion's share of the territories, and for the territories we leave in our hands, we will have to give compensation in the form of territories within the state of Israel at a ratio that is more or less 1:1."
Now, in the wake of recent hostilities, Buchanan is mystified that Olmert has abandoned his stated policy: 
Yet, after that interview, he launched the December blitz and invaded Gaza, killing and wounding 5,000 Palestinians, making of the Strip a zone of permanent hatred and making Hamas, whom he sought to dethrone and undeniably wounded, even stronger.
Gee, did anything else happen since Olmert announced his land-for-peace strategy? 
 
What Buchanan doesn't mention is that Olmert didn't just talk about the strategy.  He implemented it, unilaterally pulling out troops from Gaza in 2005.  And how did the strategy work?  Not well:
 
 File:Qasam graph2002-2007.svg
 Graph showing the number of Qassam rockets shot from Gaza into israel by month. years 2002 - 2007. 
 
 
One would think that results like these would lead a statesman to conclude that his policy wasn't working. 
 
But to Buchanan, all of that is simply flushed down Orwell's famous memory hole.  It's as if the past several years didn't happen.  Israel's strategy was working like a charm, but suddenly Olmert just elected to change it, and now the world hates Israel again.  Those darned Jews just don't know what's good for them.

I guess then, Mr. Buchanan, you are probably in favor of the Keynesian solution to the economic crisis our liberal friends espouse. After all, just because a policy has a track record of failure, that is no reason to abandon it.
 
 
 
 
 
 
 
 
 
Tags: Israel  
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Deniers take center stage

 
 
http://www.redstate.com/kyle8/2009/01/15/the-wheels-continue-to-come-off-of-the-global-warming-hoax/

Here are some interesting excerpts from the Senate report.

“I am a skeptic…Global warming has become a new religion.” - Nobel Prize Winner for Physics, Ivar Giaever.

“Since I am no longer affiliated with any organization nor receiving any funding, I can speak quite frankly….As a scientist I remain skeptical.” - Atmospheric Scientist Dr. Joanne Simpson, the first woman in the world to receive a PhD in meteorology and formerly of NASA who has authored more than 190 studies and has been called “among the most preeminent scientists of the last 100 years.”

Warming fears are the “worst scientific scandal in the history…When people come to know what the truth is, they will feel deceived by science and scientists.” - UN IPCC Japanese Scientist Dr. Kiminori Itoh, an award-winning PhD environmental physical chemist.

“The IPCC has actually become a closed circuit; it doesn’t listen to others. It doesn’t have open minds… I am really amazed that the Nobel Peace Prize has been given on scientifically incorrect conclusions by people who are not geologists,” - Indian geologist Dr. Arun D. Ahluwalia at Punjab University and a board member of the UN-supported International Year of the Planet.

“The models and forecasts of the UN IPCC “are incorrect because they only are based on mathematical models and presented results at scenarios that do not include, for example, solar activity.” - Victor Manuel Velasco Herrera, a researcher at the Institute of Geophysics of the National Autonomous University of Mexico

“It is a blatant lie put forth in the media that makes it seem there is only a fringe of scientists who don’t buy into anthropogenic global warming.” - U.S Government Atmospheric Scientist Stanley B. Goldenberg of the Hurricane Research Division of NOAA.

“Even doubling or tripling the amount of carbon dioxide will virtually have little impact, as water vapour and water condensed on particles as clouds dominate the worldwide scene and always will.” – . Geoffrey G. Duffy, a professor in the Department of Chemical and Materials Engineering of the University of Auckland, NZ.

“After reading [UN IPCC chairman] Pachauri’s asinine comment [comparing skeptics to] Flat Earthers, it’s hard to remain quiet.” - Climate statistician Dr. William M. Briggs, who specializes in the statistics of forecast evaluation, serves on the American Meteorological Society’s Probability and Statistics Committee and is an Associate Editor of Monthly Weather Review.

“For how many years must the planet cool before we begin to understand that the planet is not warming? For how many years must cooling go on?” - Geologist Dr. David Gee the chairman of the science committee of the 2008 International Geological Congress who has authored 130 plus peer reviewed papers, and is currently at Uppsala University in Sweden.

“Gore prompted me to start delving into the science again and I quickly found myself solidly in the skeptic camp…Climate models can at best be useful for explaining climate changes after the fact.” - Meteorologist Hajo Smit of Holland, who reversed his belief in man-made warming to become a skeptic, is a former member of the Dutch UN IPCC committee.

“Many [scientists] are now searching for a way to back out quietly (from promoting warming fears), without having their professional careers ruined.” - Atmospheric physicist James A. Peden, formerly of the Space Research and Coordination Center in Pittsburgh.

“Creating an ideology pegged to carbon dioxide is a dangerous nonsense…The present alarm on climate change is an instrument of social control, a pretext for major businesses and political battle. It became an ideology, which is concerning.” - Environmental Scientist Professor Delgado Domingos of Portugal, the founder of the Numerical Weather Forecast group, has more than 150 published articles.

“CO2 emissions make absolutely no difference one way or another….Every scientist knows this, but it doesn’t pay to say so…Global warming, as a political vehicle, keeps Europeans in the driver’s seat and developing nations walking barefoot.” - Dr. Takeda Kunihiko, vice-chancellor of the Institute of Science and Technology Research at Chubu University in Japan.

“The [global warming] scaremongering has its justification in the fact that it is something that generates funds.” - Award-winning Paleontologist Dr. Eduardo Tonni, of the Committee for Scientific Research in Buenos Aires and head of the Paleontology Department at the University of La Plata. # #

In addition, the report will feature new peer-reviewed scientific studies and analyses refuting man-made warming fears and a heavy dose of inconvenient climate developments. (See Below: Study: Half of warming due to Sun! –Sea Levels Fail to Rise? - Warming Fears in ‘Dustbin of History’)

The Senate Minority Report is an update of 2007’s blockbuster U.S. Senate Minority Report of over 400 dissenting scientists. See here: This new report will contain the names, quotes and analyses of literally hundreds of additional international scientists who publicly dissented from man-made climate fears in just 2008 alone.

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Newsweek was right (back in the Seventies)

The Earth is warming inexhorably due to mankind's relentless combustion of carbon-based fuels, and unless mankind abruptly alters this behavior, the planet will warm to the point where life as we know it will cease.  Such is the "scientific consensus," we are told.
 
The last time the West's intelligentsia held such overwhelming scientific consensus about anything, Christopher Columbus proved them all wrong by sailing over the horizon.  Before that, Copernicus was derided as a heretic for doubting that the planet was the center of the universe.  And yet now, in the midst of a second consecutive "coldest winter in memory," one which is already on pace to equal last year's near-record-setting (most since 1966) snowfalls, we are expected to believe in the infallability of the supposed "scientific consensus" that mankind is not only capable of affecting the climate on this vast planet, but that we must rapidly deindustrialize in order to prevent catastrophic global warming.
 
Running hard against this consensus is a recent report from Russian scientist Gregory Fegel that states that:
Changes in global CO2 levels lag behind global temperature changes by about eight hundred years. What that indicates is that global temperatures precede or cause global CO2 changes, and not the reverse. (1)
Can it be true that the Great Consensus is wrong?  Can it be that climate alarmists have causation entirely wrong, after all these years, and after some $50B in research?
 
It appears so.
 
I had previously posted an article by David Evans, the former rocket scientist who developed Australia's carbon accounting program.  In that article, Evans noted that:

Each possible cause of global warming has a different pattern of where in the planet the warming occurs first and the most. The signature of an increased greenhouse effect is a hot spot about 10km up in the atmosphere over the tropics. We have been measuring the atmosphere for decades using radiosondes: weather balloons with thermometers that radio back the temperature as the balloon ascends through the atmosphere. They show no hot spot. Whatsoever.

If there is no hot spot then an increased greenhouse effect is not the cause of global warming. (2)

Evans, formerly a member in good standing of the Great Consensus, showed quite conclusively that increasing levels of carbon dioxide in the atmosphere as a result of human combustion of carbon-based fuels could not be the cause of the recent observed warming of the planet.  So what, then, is the cause?
 
The Fegel article (see link below) observes that there are several long-term variations that occur in the Earth's orbit (the tilt of the earth, the shape of it's orbit, and the Earth's 'wobble' upon it's axis).  These three variations, known collectively as the Milankovich Cycles, occur over different time frames, with them "intersecting" at regular time frames.  (Think of the hands of a watch, with each hand moving at different speeds.  It is predictable that all three hands will align regularly at 12:00, 1:05:05, 2:10:10, and so on.) 
 
These "intersections" hold the key to understanding the Earth's climate cycle.  Because each of these variations in the Earth's orbit has an impact in the level of solar radiation that can reach the Earth.  But only when all three are "aligned" is the planet warm enough for life as we know it.
 
What does this mean for the planet's climate?
 
Geologists have long been aware that the planet has, for hundreds of centuries at a time, been almost entirely covered by ice.  In fact:
 Ice cores, ocean sediment cores, the geologic record, and studies of ancient plant and animal populations all demonstrate a regular cyclic pattern of Ice Age glacial maximums which each last about 100,000 years, separated by intervening warm interglacials, each lasting about 12,000 years. (1)
Clearly few would argue that we are currently in an Ice Age.  But:
Within that natural cycle, about every 110,000 years global temperatures, followed by global CO2 levels, have peaked at approximately the same levels which they are at today. (1)
So we are apparently at a crossroads, as observational data seems to indicate a cooling trend began in 2003.  Many climate alarmists have busied themselves notifying us that this, too is a symptom of global warming.  And some have changed their rhetoric, referring to "climate change" rather than global warming, and proscribing the same solution to the "climate change" as they proffered towards "global warming:"  Always, the answer is a reduction in living standards in the West, with slower economic growth, and transfers of what wealth we do create to the innocent poor in the developing world.
 
Fegel has a different conclusion:
Today we are again at the peak, and near to the end, of a warm interglacial, and the earth is now due to enter the next Ice Age. If we are lucky, we may have a few years to prepare for it. The Ice Age will return, as it always has, in its regular and natural cycle, with or without any influence from the effects of AGW. (1)
And when it does, who will be hurt the most?  The "golden billion" who already live in developed countries, with electricity, and heating, and infrastructure?  Or the 5 billion others who would have benefitted from the economic growth that we willingly curtailed in order to indulge liberal fantasies about mankind's omnipotence?
 
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"we know for sure that carbon emissions are not a significant cause of the global warming."

As conservatives continue to stave off economy-killing cap-and-trade schemes plotted by liberals to uselessly reduce CO2 emissions, the fabled “consensus” around global warming continues to unravel.  Here a prominent Australian scientist, literally the rocket scientist who wrote the carbon accounting modelused by the Australian government, sets out the reasons for his conversion to the dark side.

A clean environment is important.  But CO2 is not a pollutant, and reducing CO2 won’t help the environment.  If we want to help “save the world” we should spend money on clean water, eradicating disease like malaria and AIDS, and promoting development.  We shouldn’t be wasting money on liberal flights of fancy like regulation of cow flatulence or lawnmower emissions.

http://www.theaustralian.news.com.au/story/0,25197,24036736-7583,00.html

David Evans | July 18, 2008

I DEVOTED six years to carbon accounting, building models for the Australian Greenhouse Office. I am the rocket scientist who wrote the carbon accounting model (FullCAM) that measures Australia's compliance with the Kyoto Protocol, in the land use change and forestry sector.

FullCAM models carbon flows in plants, mulch, debris, soils and agricultural products, using inputs such as climate data, plant physiology and satellite data. I've been following the global warming debate closely for years.

When I started that job in 1999 the evidence that carbon emissions caused global warming seemed pretty good: CO2 is a greenhouse gas, the old ice core data, no other suspects.

The evidence was not conclusive, but why wait until we were certain when it appeared we needed to act quickly? Soon government and the scientific community were working together and lots of science research jobs were created. We scientists had political support, the ear of government, big budgets, and we felt fairly important and useful (well, I did anyway). It was great. We were working to save the planet.

But since 1999 new evidence has seriously weakened the case that carbon emissions are the main cause of global warming, and by 2007 the evidence was pretty conclusive that carbon played only a minor role and was not the main cause of the recent global warming. As Lord Keynes famously said, "When the facts change, I change my mind. What do you do, sir?"

There has not been a public debate about the causes of global warming and most of the public and our decision makers are not aware of the most basic salient facts:

1. The greenhouse signature is missing. We have been looking and measuring for years, and cannot find it.

Each possible cause of global warming has a different pattern of where in the planet the warming occurs first and the most. The signature of an increased greenhouse effect is a hot spot about 10km up in the atmosphere over the tropics. We have been measuring the atmosphere for decades using radiosondes: weather balloons with thermometers that radio back the temperature as the balloon ascends through the atmosphere. They show no hot spot. Whatsoever.

If there is no hot spot then an increased greenhouse effect is not the cause of global warming. So we know for sure that carbon emissions are not a significant cause of the global warming. If we had found the greenhouse signature then I would be an alarmist again.

When the signature was found to be missing in 2007 (after the latest IPCC report), alarmists objected that maybe the readings of the radiosonde thermometers might not be accurate and maybe the hot spot was there but had gone undetected. Yet hundreds of radiosondes have given the same answer, so statistically it is not possible that they missed the hot spot.

Recently the alarmists have suggested we ignore the radiosonde thermometers, but instead take the radiosonde wind measurements, apply a theory about wind shear, and run the results through their computers to estimate the temperatures. They then say that the results show that we cannot rule out the presence of a hot spot. If you believe that you'd believe anything.

2. There is no evidence to support the idea that carbon emissions cause significant global warming. None. There is plenty of evidence that global warming has occurred, and theory suggests that carbon emissions should raise temperatures (though by how much is hotly disputed) but there are no observations by anyone that implicate carbon emissions as a significant cause of the recent global warming.

3. The satellites that measure the world's temperature all say that the warming trend ended in 2001, and that the temperature has dropped about 0.6C in the past year (to the temperature of 1980). Land-based temperature readings are corrupted by the "urban heat island" effect: urban areas encroaching on thermometer stations warm the micro-climate around the thermometer, due to vegetation changes, concrete, cars, houses. Satellite data is the only temperature data we can trust, but it only goes back to 1979. NASA reports only land-based data, and reports a modest warming trend and recent cooling. The other three global temperature records use a mix of satellite and land measurements, or satellite only, and they all show no warming since 2001 and a recent cooling.

4. The new ice cores show that in the past six global warmings over the past half a million years, the temperature rises occurred on average 800 years before the accompanying rise in atmospheric carbon. Which says something important about which was cause and which was effect.

None of these points are controversial. The alarmist scientists agree with them, though they would dispute their relevance.

The last point was known and past dispute by 2003, yet Al Gore made his movie in 2005 and presented the ice cores as the sole reason for believing that carbon emissions cause global warming. In any other political context our cynical and experienced press corps would surely have called this dishonest and widely questioned the politician's assertion.

Until now the global warming debate has merely been an academic matter of little interest. Now that it matters, we should debate the causes of global warming.

So far that debate has just consisted of a simple sleight of hand: show evidence of global warming, and while the audience is stunned at the implications, simply assert that it is due to carbon emissions.

In the minds of the audience, the evidence that global warming has occurred becomes conflated with the alleged cause, and the audience hasn't noticed that the cause was merely asserted, not proved.

If there really was any evidence that carbon emissions caused global warming, don't you think we would have heard all about it ad nauseam by now?

The world has spent $50 billion on global warming since 1990, and we have not found any actual evidence that carbon emissions cause global warming. Evidence consists of observations made by someone at some time that supports the idea that carbon emissions cause global warming. Computer models and theoretical calculations are not evidence, they are just theory.

What is going to happen over the next decade as global temperatures continue not to rise? The Labor Government is about to deliberately wreck the economy in order to reduce carbon emissions. If the reasons later turn out to be bogus, the electorate is not going to re-elect a Labor government for a long time. When it comes to light that the carbon scare was known to be bogus in 2008, the ALP is going to be regarded as criminally negligent or ideologically stupid for not having seen through it. And if the Liberals support the general thrust of their actions, they will be seen likewise.

The onus should be on those who want to change things to provide evidence for why the changes are necessary. The Australian public is eventually going to have to be told the evidence anyway, so it might as well be told before wrecking the economy.

Dr David Evans was a consultant to the Australian Greenhouse Office from 1999 to 2005.

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