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matt taibbi explains goldman sachs' global warming scam

Posted by txcup 
matt taibbi explains goldman sachs' global warming scam
November 03, 2012 07:44AM
taibbi filets goldman on several issues

and NO, it is not a romney/obama issue. goldman owns and contributes to both colors of the party

[www.silverbearcafe.com]

Bubble #6 - Global Warming

Fast-Forward to today. It's early June in Washington, D.C. Barack Obama, a popular young politician whose leading private campaign donor was an investment bank called Goldman Sachs - its employees paid some $981,000 to his campaign - sits in the White House. Having seamlessly navigated the political minefield of the bailout era, Goldman is once again back to its old business, scouting out loopholes in a new government-created market with the aid of a new set of alumni occupying key government jobs.

As Envisioned by Goldman, the Fight to Stop Global Warming will Become a "Carbon Market" Worth $1 Trillion a Year

Gone are Hank Paulson and Neel Kashkari; in their place are Treasury chief of staff Mark Patterson and CFTC chief Gary Gensler, both former Goldmanites. (Gensler was the firm's co-head of finance) 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 it 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. Goldman won't even have to rig the game. It will be rigged in advance.

Here's how it works: If the bill passes; there will be limits for coal plants, utilities, natural-gas distributors and numerous other industries on the amount of carbon emissions (a.k.a. greenhouse gases) they can produce per year. If the companies go over their allotment, they will be able to buy "allocations" or credits from other companies that have managed to produce fewer emissions. President Obama conservatively estimates that about $646 billions worth of carbon credits will be auctioned in the first seven years; one of his top economic aides speculates that the real number might be twice or even three times that amount.

The feature of this plan that has special appeal to speculators is that the "cap" on carbon will be continually lowered by the government, which means that carbon credits will become more and more scarce with each passing year. Which means that this is a brand-new commodities market where the main commodity to be traded is guaranteed to rise in price over time. The volume of this new market will be upwards of a trillion dollars annually; for comparison's sake, the annual combined revenues of an electricity suppliers in the U.S. total $320 billion.

Goldman wants this bill. The plan is (1) to get in on the ground floor of paradigm-shifting legislation, (2) make sure that they're the profit-making slice of that paradigm and (3) make sure the slice is a big slice. Goldman started pushing hard for cap-and-trade long ago, but things really ramped up last year when the firm spent $3.5 million to lobby climate issues. (One of their lobbyists at the time was none other than Patterson, now Treasury chief of staff.)

Back in 2005, when Hank Paulson was chief of Goldman, he personally helped author the bank's environmental policy, a document that contains some surprising elements for a firm that in all other areas has been consistently opposed to any sort of government regulation. Paulson's report argued that "voluntary action alone cannot solve the climate-change problem." A few years later, the bank's carbon chief, Ken Newcombe, insisted that cap-and-trade alone won't be enough to fix the climate problem and called for further public investments in research and development.

Which is convenient, considering that 'Goldman made early investments in wind power (it bought a subsidiary called Horizon Wind Energy), renewable diesel (it is an investor in a firm called Changing World Technologies) and solar power (it partnered with BP Solar), exactly the kind of deals that will prosper if the government forces energy producers to use cleaner energy. As Paulson said at the time, "We're not making those investments to lose money."

The bank owns a 10 percent stake in the Chicago Climate Exchange, where the carbon credits will be traded. Moreover, Goldman owns a minority stake in Blue Source LLC, a Utah-based firm that sells carbon credits of the type that will be in great demand if the bill passes. Nobel Prize winner Al Gore, who is intimately involved with the planning of cap-and-trade, started up a company called Generation Investment Management with three former bigwigs from Goldman Sachs Asset Management, David Blood, Mark Ferguson and Peter Harris. Their business? Investing in carbon offsets.

There's also a $500 million Green Growth Fund set up by a Goldmanite to invest in green-tech ... the list goes on and on. Goldman is ahead of the headlines again, just waiting for someone to make it rain in the right spot. Will this market be bigger than the energy-futures market?

"Oh, it'll dwarf it," says a former staffer on the House energy committee. ....

"If it's going to be a tax, I would prefer that Washington set the tax and collect it," says Michael Masters, the hedge fund director who spoke out against oil-futures speculation. "But we're saying that Wall Street can set the tax, and Wall Street can collect the tax. That's the last thing in the world I want. It's just asinine."

Cap-and-trade is going to happen. Or, if it doesn't, something like it will. The moral is the same as for all the other bubbles that Goldman helped create, from 1929 to 2009. In almost every case, the very same bank that behaved recklessly for years, weighing down the system with toxic loans and predatory debt, and accomplishing nothing but massive bonuses for a few bosses, has been rewarded with mountains of virtually free money and government guarantees - while the actual victims in this mess, ordinary taxpayers, are the ones paying for it.

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"The masses... do not conceive any ideas, sound or unsound. They only choose between the ideologies developed by the intellectual leaders of mankind. But their choice is final and determines the course of events. If they prefer bad doctrines, nothing can prevent disaster."
Re: matt taibbi explains goldman sachs' global warming scam
November 03, 2012 08:11AM
Good as disinformation goes.

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"Every gun that is made, every warship launched, every rocket fired, signifies in the final sense a theft from those who hunger and are not fed, those who are cold and are not clothed."

President Eisenhower
Re: matt taibbi explains goldman sachs' global warming scam
November 03, 2012 08:20AM
stop being played for a fool

the global banks created the whole thing - they have that much horsepower

of course the answer is derivatives -- that alone should set off alarms for anyone that can fog a mirror

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"The masses... do not conceive any ideas, sound or unsound. They only choose between the ideologies developed by the intellectual leaders of mankind. But their choice is final and determines the course of events. If they prefer bad doctrines, nothing can prevent disaster."
Re: matt taibbi explains goldman sachs' global warming scam
November 03, 2012 12:22PM
There is no need for mutual exclusivity here: It is entirely possible for climate change to be a legitimate issue and for cap and trade to be a scam.

Bin Laden and Al Qeada were a serious threat.

Iraq and the 'War on Terror' was a scam.

These people profit from disaster -- both genuine (Katrina) and man-made (lots).

Thanks for posting, txcup.
Re: matt taibbi explains goldman sachs' global warming scam
November 03, 2012 12:28PM
Know this, Kairos: They intended to f*ck progressives, and they are f*cking progressives, with Obama, and cuts to Social Security and the 'fiscal cliff' and even Obamacare (which I support under threat of death).

They literally sit down for months and months and years and figure out how to market this sh*t to the people they intend to screw. The more real the problem is, the easier it is for them to screw people with it.

They began disamantling Social Security and progressives cheered.

Remember that.
Re: matt taibbi explains goldman sachs' global warming scam
November 03, 2012 04:56PM
Cap and trade is not a scam and could never be a scam. it is a vital tool and, given the American with what it thinks is freedom, is the only practical way that a price can be put on carbon in the USA. Imagine any authority trying to use the word tax as an alternative in America.

It can be abused, though, and, that is not unlikely in America where regulation is an equally dirty word.

At the Scopes Monkey Trial, Clarence Darrow gave a brilliant speech, but the cynical journalist H.L. Mencken told him "You may as well have shouted it up a waterspout in Outer Mongolia for all the effect it will have on your listeners ..

Ditto here.
Re: matt taibbi explains goldman sachs' global warming scam
November 03, 2012 05:06PM
goldman advises supreme court against causing them losses

[www.reuters.com]

Reuters) - Goldman Sachs Group Inc (GS.N) has urged the U.S. Supreme Court to throw out a mortgage securities class-action lawsuit that it said could cost Wall Street tens of billions of dollars.

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"The masses... do not conceive any ideas, sound or unsound. They only choose between the ideologies developed by the intellectual leaders of mankind. But their choice is final and determines the course of events. If they prefer bad doctrines, nothing can prevent disaster."
Re: matt taibbi explains goldman sachs' global warming scam
November 03, 2012 05:30PM
"Cap and trade is not a scam and could never be a scam. it is a vital tool and, given the American with what it thinks is freedom, is the only practical way that a price can be put on carbon in the USA." -int

"Any tool is a weapon if you hold it right." -Ani Defranco

"I hate it when people compare Dick Cheney to Darth Vader. Vader never avoided military service." -John Fugelsang
Re: matt taibbi explains goldman sachs' global warming scam
November 04, 2012 12:40AM
globalist warming minions -- move on already

the new banker scare tactic is water shortages (even though the earth is covered with the stuff)

still, many are buying the hype, just like globalist warming eye popping smiley

change your stripes...or get left behind

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"The masses... do not conceive any ideas, sound or unsound. They only choose between the ideologies developed by the intellectual leaders of mankind. But their choice is final and determines the course of events. If they prefer bad doctrines, nothing can prevent disaster."
Re: matt taibbi explains goldman sachs' global warming scam
November 04, 2012 01:03AM
Why do you never research something before opening your mouth,tx? Within another two or three decades there will be water shortages so extreme and in such volatile areas that here is the potential for war on a scale never witnessed. And, between three nuclear powers.

If you care to find out about this for yourself instead of simply repeating the idiocy from some coal owners' friends, then there will be something to discuss. Global warming makes this shortage inevitable. It is already widespread but just has not yet seriously affected large population areas or developed countries.

At the Scopes Monkey Trial, Clarence Darrow gave a brilliant speech, but the cynical journalist H.L. Mencken told him "You may as well have shouted it up a waterspout in Outer Mongolia for all the effect it will have on your listeners ..

Ditto here.
Re: matt taibbi explains goldman sachs' global warming scam
November 04, 2012 01:43AM
good job interested

i was hoping you would move on

just don't tell anyone that earth's water circulates in a closed loop system - water moves around, but doesn't disappear

you won't be very popular at your meetings if you mention this little water shortage detail

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"The masses... do not conceive any ideas, sound or unsound. They only choose between the ideologies developed by the intellectual leaders of mankind. But their choice is final and determines the course of events. If they prefer bad doctrines, nothing can prevent disaster."
Anonymous User
Re: matt taibbi explains goldman sachs' global warming scam
November 04, 2012 07:58AM
Is it not curious that among developed antions it is only the USA that questions global warming, abortion, gay rights ( most anyway do not) and universal medical care. Then of course the demented right in this nation are not even aware of other nations
Re: matt taibbi explains goldman sachs' global warming scam
November 04, 2012 05:00PM
"just don't tell anyone that earth's water circulates in a closed loop system - water moves around, but doesn't disappear" -tx

But it can be poisoned beyond use.

"I hate it when people compare Dick Cheney to Darth Vader. Vader never avoided military service." -John Fugelsang
Re: matt taibbi explains goldman sachs' global warming scam
November 04, 2012 11:54PM
Yea guys, there's plenty of water in the oceans; we can just drink that. No "shortage", silly alarmist sheeple.

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Tax the rich & raise minimum wage.
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