Sen. Vitter on Failing Climate Bill

This piece of curious legislation is on its way to a natural death. I have no doubt it was meant to fail but to provide a fig leaf of cover for those politicians wanting to maintain green credentials.

The real climate bill will be the one that establishes a national power grid combined with an aggressive power plant build out with windmills and geothermal and solar. It will even generate major employment while it replaces our rolling stock with electric vehicles.

This sucker was more of a trial balloon to discover who cared and to measure real support.

The senator has pointed out the two key issues. Cap and trade and the lack of international cooperation are areas of new law with a lot of issues. Cap and Trade is a flat royalty on the US economy and such form of taxation can only depress the economy however traded. It also inevitably swings open the door to special exemptions and save the jobs subsidies. Thus it is simple in conception and likely impossible to administrate fairly.
Also, governments avoid royalty style taxes because they are a direct drag on economic growth and are usually imposed after the golden goose is in the nest and laying. This will tax a newly minted coal mine and actually prevent it from been built.

And then there is the issue of China and India, or rather the issue of no international framework to regulate the problem. If India and China joined in the program, then the offending factories would spring up elsewhere.

There are other methods, but cap and trade looks more and more a bad solution.

Vitter: Global warming bill will fall short in Senate vote

http://www.2theadvocate.com/news/politics/51067097.html?showAll=y&c=y

U.S. Sen. David Vitter denounced a U.S. House-passed global warming bill Friday and predicted it will fail in the Senate.

“I don’t think there is anything salvageable in this bill,” said Vitter, R-La.

The Republican spoke to about 180 ExxonMobil Chemical Co. employees and fielded several questions, mostly on energy policies.

Vitter spent most of his time blasting “cap and trade” legislation that won narrow House approval last month with heavy backing from President Barack Obama.

Backers said the measure would offer the first enforceable limits on global warming pollution and create millions of clean energy jobs.

The legislation is supposed to reduce the heat-trapping gases building up in the atmosphere and gradually move America to cleaner sources of energy.

Vitter said the proposal would ignite a huge energy tax increase — $846 billion by one estimate — and damage Louisiana’s economy.

He said the measure also stems from a false premise on how much humans contribute to global warming.
“I don’t think it is clear and settled, the extent of the human impact on temperature trends,” Vitter said afterward.

The bill includes mandatory reduction of emissions that would raise the cost of energy from coal, oil and natural gas. Other provisions are designed to protect consumers.

The nonpartisan Congressional Budget Office said the bill would cost the average household $175 a year in 2020. Others dispute that estimate.

Vitter said the bill faces opposition from most of the Senate’s 40 GOP members and some of the chamber’s 60 Democrats. Bills in the Senate need 60 votes to get around opponents and fatal delaying tactics.

“It will really come down to getting 60 votes in the Senate,” he said.

Vitter also said that, without similar action by China and India, sweeping steps by the U.S. on global warming will mean little.

“It means we won’t have made any impact,” he said.

Vitter said the bill will get its first look in a Senate committee where he is a member come September. He said he plans to offer at least 300 amendments.

“I am going to be very, very active in that committee,” he said.

Vitter told reporters later that he believes “it is always important to try to improve a bad bill.”

All seven members of the Louisiana delegation voted “no” on the bill when it passed the House on June 26.

China Revises to #3

The Chinese economic expansion is entering a much needed consolidation as occurred among the early adopters such as Japan and others twenty years ago. This phase should be characterized by strong domestic and government investment in both new infrastructure and reconstruction. This time, build the schools properly and show that the lives and health of the people is respected.

China can now implement necessary labor market reforms and proper health and educational services. The economy is rich enough to accommodate what is after all an investment in future government revenues.

China has shown that it can mobilize its resources to achieve it goals in a very proficient manner, although there is the usual nit picking and cheap shots. When there are government resources and lolly to distribute, you can count on a corruption loss. I am still waiting for an apology to the American people for the unseemly free for all that we saw in Iraq under US management.

At least the Chinese shoot a few from time to time to encourage honesty among the rest. Otherwise they would need to sharply increase their police force.

We all can see things in China that needs to be improved. Fortunately, so do the Chinese and they know the solutions as well as we do. I suspect we only need to come back in five tears to see the problems abate.

China revises figures, 'becomes world's number three economy'

by Staff Writers

Beijing (AFP) Jan 14, 2009

China revised upwards its 2007 growth figures Wednesday, indicating the Asian giant overtook Germany as the world's third largest economy, analysts said.

China's economy expanded by 13.0 percent in 2007, up from a previous calculation of 11.9 percent, the National Bureau of Statistics said.

"At market exchange rates, China in 2007 was the third largest behind the US and Japan," Vivek Arora, senior resident representative with the IMF in Beijing, told Dow Jones Newswires.

The economy was worth 25.7 trillion yuan in 2007, the statistics bureau said, or about 3.5 trillion dollars based on the exchange rate at the end of that year.

"It indicates the speed of economic growth in the year was beyond what people previously imagined. The economy was overheated beyond what people estimated," said Ren Xianfang, a Beijing-based analyst with Global Insight.

"The figures here mean China has surpassed Germany," she said, citing World Bank estimates. "Germany's economy was 3.3 trillion dollars in 2007 while China's economy was much bigger than that."

China is now only behind the United States, whose economy was worth 13.8 trillion in 2007, and Japan, at 4.4 trillion, according to World Bank figures.

"It reflects the remarkable success of a strategy that links China up with the world," said David Zweig, a political scientist at the Hong Kong University of Science and Technology.

"But it also means a lot of the growth in China is based on that global linkage and that makes China more vulnerable to global fluctuations in the economy," he said.

China became the fourth largest economy in 2005, when it grew 10.4 percent, speeding past France, Britain and Italy.

The revision put the 2007 economic growth second only to the 13.1 percent growth seen in 1994, Ren said.

But the revised figures could serve only to make the slowdown between 2007 and 2008 appear sharper, economists said.

"The change in GDP estimates for two years ago will not alter the economy's near-term outlook," said Sherman Chan, an economist with Moody's Economy.com.

"The only effect is perhaps negative, as a stronger 2007 would make the 2008 slowdown more upsetting," she wrote in a research note.

China is expected to release its full-year economic figures for 2008 next week.

The Chinese economy grew by nine percent in the third quarter, the lowest rate in more than five years, and the World Bank has forecast 2008 growth of 7.5 percent, a level not seen since 1990.

"For 2009, a further slowdown is projected, as the global economy remains in a dismal state, hurting China's export-related businesses, which have been the bread winner for the country," Chan said.

The bureau said this was the final revision for 2007 economic numbers, after reporting in January last year that growth was 11.4 percent, then upgrading it to 11.9 percent in April.