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Friday, June 26, 2009

The Cap and Trade Revolution

The following post is a repeat of an earlier one that seems fitting as the House votes on Cap and Trade legislation today!
Members of the Democratic controlled congress cheer as the Senate narrowly passes Obama's plan for Cap and Trade. Environmentalist groups all over the country are elated at the prospect of cutting back on greenhouse gases (CO2). Countries throughout the world applaud the Obama administration and breath a sigh of relief that the oceans will stop rising and the world will be saved from certain destruction at the hands of industrial polluters. Almost everyone is euphoric. We have entered a new age. The new Cap and Trade legislation contains a provision to increase the federal gasoline tax to $1.13 per gallon, this addition revenue will be used to offset the anticipated rise in utility rates. Individual consumers of electricity will be given direct payments to make up the difference between the old rates and the new rates. The government says that the new tax on gasoline will cause us to use less and that people will use mass transit and car pool , and that the new energy efficient cars soon coming on the market will help consumers.

Six months after the passage of Cap and Trade, just as predicted by those in the energy department utility rates have jumped in most parts of the nation. With the rates in the northeast and many parts of the west having the biggest spikes. However, the checks are going out to those effected home owners to make up the difference. The situation with the increase in the price of gasoline is proving to be somewhat harder to control with complaints coming in from across the nation. Many individuals however, have made adjustments to the new conditions and are doing their part in the environment. Thing are not perfect, but the government continues to reassure the public that things are under control.

Nine months after installing the new Cap and Trade policies, prices on some consumer goods begin to rise sharply. At first these price increases are in goods that required large quantities of energy in there production. The price of plastic containers goes through the roof and with that increase comes a corresponding increase in those good packaged in plastic containers. These increases are quickly followed by sudden increases in the price of all metal objects. At the same time the price of commercial fertilizer increases by over 100%. Consumers are now beginning to feel the pain, not only at the prices at the malls, but the huge increase in grocery prices. Inflation in now increasing at double digit rate and rapidly approaching 25% . People are becoming desperate. The government is compelled to act.

Under the influence of the environment lobby and other left leaning groups the Obama administration will not resend the restrictions imposed by Cap and Trade. Instead they turn toward more draconian measures. First among these are stringent price controls. This, it is hoped, will calm the increasing outrage expressed by the public. The central government points the finger at big industry and large distributors as the source of all the current problems. And urges farmers to increase production to drive down food prices.

Four months into price controls, consumers begin to notice increasing shortages, especially in the grocery stores. Many items which use to be plentiful are now hard to find and in many cases cannot be found at all. The large farms have stopped producing as the cost of production is higher that what they can sell they commodities for. Shortages continue to increase and the public is becoming restless and lines are beginning to form outside of grocery stores waiting for the next meager arrival of goods. Reports of violence in the lines is increasing. The economic planners in Washington seem at a lost to come up with solutions that work.

Eight months into price controls riots are breaking out in the large metropolitan centers and the local authorities are having to call on the state to help restore order. These measures prove to be inadequate and the states turn to the now all powerful federal government to assist in the quickly escalating violence. The federal government sends troops to the worst areas, but they are unable to control the many outbreaks of violence which have now spread into the suburbs and even some rural areas. Things are now OUT OF CONTROL.

One year into price controls,the Obama administration sensing a congressional blood bath in the upcoming off year elections issues an executive order postponing those elections violence increases. The military feeling the full sting of the public unrest and violence and there futile efforts to control things acts. They quickly move against those they blame for the still deteriorating situation. Obama is forced to resign and a new government is installed. We have had a military coup.
by Ron R.

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6 comments:

Foxwood said...

Don't believe this is not a tax on those making under $250,000. Everything this bill touches will go down the FOOD chain. Gas, electricity, food, products and services. Everything will go up, but it's not a tax on you.

http://animal-farm.us/obama/public-service-announcement-1-488

Always On Watch said...

I'm not sure about the riots part, but maybe.

One thing is for sure: prices on everything, necessary and luxury, will SOAR. The rich may be able to soak up the new costs, but the rest of us can't.

Thomas said...

It's amazing how this administration and the congress is throwing gasoline on an economy that's already going down in flames. Any lunkhead knows you don't raise taxes in the middle of a recession.

Debbie said...

And again I ask, where are the Republicans. Why are they not shouting to the rooftops how wrong this is? It will be interesting to see what happens in the Senate. If this passes it will be a blight on all of us. They can say it's not a tax all day, doesn't change the fact that it is. The amount they are telling folks, $197.00 increase a year I think, is pure LIE.

Debbie Hamilton
Right Truth

Anonymous said...

Price controls and a military coup? You're pretty funny.
Let me tell you a little story: during World War II, the physicists working at Los Alamos on the atomic bomb would have a weekly bet, pool their pocket change and bet on events that would happen within the next week. The overall winner of these bets was a man named Enrico Fermi. What was his strategy? Fermi always bet that things would remain the same as they were.

Anonymous said...

Obviously, things do change sometimes, and Fermi was wrong twice.
I sure hope that we don't see any of the bad effects you are predicting, but with a 1200 page bill that nobody read all the way through, it's hard to know what to expect. More of the same, I suspect - this bill made so many compromises that it is not a real change.
I do know, whatever the consequences, things will not change so much that we will have price controls and a military coup.