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Following the climate change money trail

I've already blogged a couple of times about the connection between climate change hysteria and global social justice, specifically the apparent intent of progressives to justify their goal of redistributing wealth "fairly" around the world by convincing us that such a wealth redistribution scheme is now the only way to "save the planet" from the certain doom of global warming.

But progressives have been very reluctant to discuss the enormous financial engine that their savvy business class has developed for the purpose of carrying out this gargantuan redistribution scheme.

Over at Pajamas Media, Charlie Martin has written a nice summary of the "big picture" surrounding global warming and Climategate. He discusses, in depth, the climate change money trail -- and guess whose coffers get filled first:

There is a financial empire being built on top of AGW, one that we've already begun to discuss on PJM. The basics are simple. If you accept that CO2 is the problem, then steps need to be taken to reduce CO2 emissions, which many developed countries have attempted using "cap and trade" schemes. In cap and trade, you use the law to require companies in developed countries to reduce their CO2 emissions, or to buy carbon offsets if they can't.

... It is, of course, purely a coincidence that this market, which simply doesn't exist without the legal requirement that companies reduce carbon emissions, is closely connected with the politically connected people who are pushing for carbon restrictions by law and treaty.

... But now consider what would have happened if Copenhagen had gone through and the agreement had been made. The carbon markets would continue, of course, but now nearly every industrial operation in nearly every developed or under-developed or undeveloped country -- for all practical purposes, all manufacturing, power generation, or transportation -- would need to establish its carbon impact, and buy or sell the appropriate carbon credits. Every one of which would result in paying fees and commissions to the carbon exchanges, as well as the governments involved and the UN.

The owners of the carbon exchanges wouldn't be as rich as Croesus -- they would be so rich they could hire Croesus as a houseboy.

Of course the most famous public figure with deep financial ties to the climate change money machine is Al Gore. During the last ten years, he has increased his personal fortune a hundredfold, from "between $1 million and $2 milion" (from his 2000 Presidential candidacy disclosures) to over $100 million in 2007. Gore and former Goldman Sachs executive David Blood founded Generation Investment Management (GIM), a venture capital firm that invests in "green" businesses. GIM is a member of the Chicago Carbon Exchange (CCX) which is the commodity trading market created to facilitate the sale of carbon credits.

"Chicago" ... Where have we heard that city mentioned before?

The blog ProPatria provided more details about the relationship between GIM and CXX in an excellent post on the "Big Green Money Trail" a few years ago:

Since GIM is a member of CCX, but isn't actually a carbon emitting entity in itself, we can assume that they are an aggregator (small entities cannot trade on their own and have to go through an aggregator if they deal in less than 10,000 tons of carbon). This is further evidenced by the fact that Al Gore buys his own carbon credits through GIM. Since GIM has no transparency in its business, it's hard to say how much they deal in carbon, but we can bet it's significant. Also of interest is the fact that Goldman Sachs owns 9.31% of CCX's parent company, and 3 out of 6 founding partners of Generation have ties to Goldman Sachs.

And would it surprise anyone that the second largest corporate contributor to Barack Obama's 2008 Presidential campaign was ... Goldman Sachs?

Even if progressive idealists are completely committed to the notion of climate change because they are so deeply emotionally invested in their commitment to social justice and the global redistribution of wealth, it seems to me that they should still find the idea of such massive profiteering offensive and revolting. After all, doesn't progressivism (and its parent economic theory, Marxism) consider profit to be a sinful tool used by the wealthy to leverage power and keep the masses poor and suffering? Isn't profit the driving force behind the most axiomatic progressive belief about capitalism -- "the rich get richer while the poor get poorer"?

Or have progressives sold out and resigned themselves to notion that carbon trade profiteering is simply a necessary evil in order for their dream of (mostly) equal world-wide distribution of wealth and political power to be realized?

Regardless of their feelings toward the subject, progressives -- particularly journalists -- owe us a serious, in-depth look at the huge financial machine that will drive the carbon trading industry. If "Big Oil" has become today's uber-villain due the ubiquitous nature of fossil fuels as an energy source, how can we expect "Big Green," which will profit from the regulation of carbon dioxide, to magically be any more virtuous?

ADDED: You will also enjoy this fascinating (though lengthy and very detailed) look at the North Pole ice caps, and the melt/refreeze cycle that we have been observing at the North Pole for nearly 200 years. In short, deep ocean currents (which are essentially immune to atmospheric effects) under the polar ice caps create a system that slowly oscillates from warmer to cooler temperatures, thus resulting in more or less polar ice. The author of the piece also quite sensibly notes, "Since ice sea displaces its own weight in sea water, thickening or thinning of sea ice has a zero effect on sea level."


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Comments (12)

In the futures trade its ca... (Below threshold)

In the futures trade its called talking your position, when you want the market to go up you talk about all the bad stuff happening. They only difference for Al Gore the Global Warming Whore is that he was talking a big position and using the government to make him right in it. Now that the data is crumbling what are they gonna do? Also does anyone have proof of their offsetting process? For all the talk about carbon offset, has anyone got empirical proof that GIM actually offsets carbon anywhere or is it just a big bag with a cat in it somewhere instead of a pig? mpw

mpw280: "has anyone got ... (Below threshold)

mpw280: "has anyone got empirical proof that GIM actually offsets carbon anywhere..."

Well we DID have that proof...but the data got, um, lost. You're just gonna have to trust us (and give us more money for better backup disks).

As far as 'redistribution o... (Below threshold)

As far as 'redistribution of wealth' goes, I'm reminded of an experiment made in Mexico many years ago. A large landowner was bought out, his farm broken up and the land given to the peons who'd previously worked for the landowner. In a followup 10 years later, the peons were back at work for the landowner, having sold "their land" back to him. Some people are willing to take a risk, others are just as willing to accept a paycheck. Neither goes anywhere without the other.

The first time I heard a li... (Below threshold)

The first time I heard a lib talk about social justice in connection with global warming I knew beyond a reasonable doubt it was a political scam.

"increased his perso... (Below threshold)

"increased his personal fortune a hundredfold, from 'between $1 million and $2 milion' "

No. He has increased his personal fortune 100%.

If he had increased is personal fortune a hundredfold, he would be worth $100 million.

Rance does math like a true... (Below threshold)

Rance does math like a true GW acolyte.

Looks like Rance has the re... (Below threshold)

Looks like Rance has the reading skillz of a three-year old. Read the whole friggin' sentence fragment:

"between $1 million and $2 milion" (from his 2000 Presidential candidacy disclosures) to over $100 million in 2007."

Good grief.

actually, alGore's net wort... (Below threshold)

actually, alGore's net worth is estimated to within striking distance of one BILLION dollars! (or may have already exceeded that)

but Massah alGore he be lubbin' every one of us peons

My mistake.My meds h... (Below threshold)

My mistake.
My meds haven't kicked in for the day.

If money wasnt involved you... (Below threshold)

If money wasnt involved you wouldnt be hearing a thing about GLOBAL WARMING its all about MONEY & POWER of the eco-nazis and AL GORE and the evil greens

GarandFan's #3 tells of a M... (Below threshold)

GarandFan's #3 tells of a Mexican experiment in the "redistribution" of looted wealth.

Not long ago, also, in the Soviet Union, more than 90% of all of the produce sold in the Moscow, Leningrad (Saint Petersburg) and Stalingrad (Volgograd) markets was gotten to market by 'free enterprisers,' essentially as passengers' luggage on public transport, especially trains, after being grown by the same 'free enterprisers' on less than 1% of the Evil Empire's arable land.

Just follow the money and t... (Below threshold)

Just follow the money and the global warming scam can be explained http://wizbangblog.com/content/2010/02/20/following-the-climate-change-money-trail-1.php






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