Obama moves for taxpayer bailout of future carbon trading

Potential future carbon trading is getting swept up into “too big to fail,” we report here for the first time.

Last week the Wall Street Journal editorial page broke the following news:

… J.P. Morgan’s recent trading loss and the resulting Washington blather about tighter regulation have grabbed headlines. Little noticed is that on Tuesday Team Obama took its first formal steps toward putting taxpayers behind Wall Street derivatives trading—not behind banks that might make mistakes in derivatives markets, but behind the trading itself. Yes, the same crew that rails against the dangers of derivatives is quietly positioning these financial instruments directly above the taxpayer safety net…

Specifically, the law authorizes the Federal Reserve to provide “discount and borrowing privileges” to clearinghouses in emergencies. Traditionally the ability to borrow from the Fed’s discount window was reserved for banks, but the new law made clear that a clearinghouse receiving assistance was not required to “be or become a bank or bank holding company.” To get help, they only needed to be deemed “systemically important” by the new Financial Stability Oversight Council chaired by the Treasury Secretary…

We’re told that the clearinghouses of Chicago’s CME Group and Atlanta-based IntercontinentalExchange were voted systemic this week… [Emphasis added]

Climate cognoscenti will recall that the now-defunct Chicago Climate Exchange — launched as the first U.S.-based platform for trading cap-and-trade-issued carbon emission permits — was purchased by the IntercontinentalExchange in early 2010.

So if cap-and-trade (or whatever its next iteration is labeled) ever returns, taxpayers will be guaranteeing the scam doesn’t fail.

11 thoughts on “Obama moves for taxpayer bailout of future carbon trading”

  1. Not to argue with your premise, but to explain, if the people accept something, all other considerations don’t matter.

  2. For the future of the USA as well as the rest of the western world, I call on the American people, please… get rid of Obama at this year’s election.

    Obama has clearly demonstrated he is on a determined path that can only end in seriously damaging the US economy, and the American way. His way will lead to decades of financial servitude. I can’t decide whether Obama is just dumb or incompetent or both. He is certainly not a leader. He is certainly a bullshit artist who is not acting in the best interests of the USA.

    What I can’t understand is this. To qualify to be the US President, the American Constitution requires a person’s parents to be natural born American citizens. So how did this Kenyan, whose father was not born in the USA, ever qualify to run for President, let alone become President?

  3. The carbon market in the EU has been full of well documented fraud. The Chicago Way, Obama, wants in on the fraud to make money for his supporters. Political corruption is driving cap and trade and the energy crisis we are about to run into.

  4. They’re going to milk every penny they can out of us.
    Imagine the UN with $20T
    All to feed their idea of Utopia.
    But, I have no problem with a One World Government.
    As long as I’m in charge.

  5. I’ve read that the estimated global carbon cap-and-trade market is as much as $20 trillion dollars a year. I also read that some of the same people that gave us the derivatives for the subprime market also created the carbon derivatives and are ready to go for some large banks.

    The last I heard, the total amount of derivatives in the world was an estimated $600 trillion dollars. (I can’t for the life of me understand how these could be 10x the total global GDP or why they are even needed. But this is a different topic).

    If a global cap-and-trade system ever comes into place (I believe it will since major banks back it and these same banks run our federal reserve), I wouldn’t be surprised if the total worth of carbon derivatives goes into the quadrilllions.

  6. Ice core study in Greenland shows cooling for some 10 years now. The International Space Station Russian segment head, Dr. Abdussamatov, a top astrophysics guy says to expect a “Little Ice Age” onset around 2014. That date pretty well jibes with the 5 year window predicted for onset of a 70,000 year glaciation cycle by “renowned Croatian physicist” and Ice Age expert Professor Vladimir Paar, announced by him around 2010. “The heaviest polar ice in more than a decade could postpone the start of offshore oil drilling in the Arctic Ocean” for Shell. Golly Gee Wally, think the Leftist sorts just want to play with crony capitalism (Fascist style) social engineering, and enable the crony gamblers to get richer, the participants covered at our expense so they can’t lose (but we can), on a very risky proposition? When it turns out the CO2 thing has been a big fraud, and disastrously cold climate sends a LOT of people into starvation with the attendant agricultural failures and people start getting sick and cold and a bunch die, I bet we can think of some great ways to deal with these Leftist social engineering creeps.

  7. As is usual, look at who leads the Intercontinental Exchange. It is also involved with European exchanges and commodity trading. When it entered the derivatives market I warned people but my voice is small.

  8. We’ve long known that Obama and his team have equal sophistication in economics and in actual environmental stewardship (zero=zero). Now the federal government will be helping to guarantee a charade of investment in a commodity having no value. It’ll be just as sound as Social Security.

  9. Eric, California is “too big to fail”, so it is going to get subsidized no matter what happens with Cap and Trade.

  10. Carbon trading is supposed to generate money for California, a state heading for bankruptcy. The carbon trade bailout would be a backdoor way of subsidizing California itself.

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