Leveraging Global Warming

Leveraging Global Warming

by Jon Rappoport

December 30, 2009 

I’m offering an experimental hypothesis here, based on how markets work.  I’m talking about trading markets—stocks, commodities.

As you know, the (false) science of climate change is a lever for a new type of market; trading “permits” or “offsets” in carbon.

First a permitted ceiling for the total burning of carbon is set.  Then, people and companies can trade the right to burn it.  Those who burn a great deal can buy permits from those who burn a little, and of course, millions of investors can speculate, as they do in other markets.

However, there is another benefit for investors—as long as the market in carbon lasts.  Holding permits can function as collateral in leveraging loans.

Right now, if I hold stock in corporations, I can use it to borrow money.  It’s the same with carbon permits.

In these times, when loans can be hard to come by, any collateral is good and useful, even if it is based on the most preposterous science.

I believe that is a hidden factor behind the initiating of this carbon-trading scheme.  Private companies, individuals, and most definitely, governments want the juice to float huge loans.

Right now, the US government is borrowing from itself in various ways to pump up the impression that it is solvent.  This scam extends to the Fed, which appears to be part of the government but really isn’t.

The US government is desperately looking for “legitimate” collateral.  Therefore, we can expect, if climate legislation capping carbon emissions passes through Congress, the federal and state governments will jump hard into the carbon-trading markets.  And THEN, they will use their market position to float loans.

Yes, it’s musical chairs, and it’s bubble making, and the crash would be as severe as what happened in the housing-mortgage market, but the government doesn’t care.  Their sand castles are crumbling in the waves, and they’re doing whatever they can, right now, to shore them up.

“Oh, you’re flush in the carbon market?  Wow, that’s very hip and very now. Everybody wants to reduce global warming.  What?  You want to borrow money against your emission permits?  Sure, we can do that for you.  Terrific.”

Yes, terrific, for a little while.

One might say the whole global warming scam was projected, so that a carbon market would emerge AND become a source for obtaining loans.  Because, after all, the credit game (the loan game) is the biggest money game in the world, and has been for some time.

The Matrix Revealed

(To read about Jon’s mega-collection, The Matrix Revealed, click here.)

Jon Rappoport

The author of three explosive collections, THE MATRIX REVEALED, EXIT FROM THE MATRIX, and POWER OUTSIDE THE MATRIX, Jon was a candidate for a US Congressional seat in the 29th District of California. He maintains a consulting practice for private clients, the purpose of which is the expansion of personal creative power. Nominated for a Pulitzer Prize, he has worked as an investigative reporter for 30 years, writing articles on politics, medicine, and health for CBS Healthwatch, LA Weekly, Spin Magazine, Stern, and other newspapers and magazines in the US and Europe. Jon has delivered lectures and seminars on global politics, health, logic, and creative power to audiences around the world. You can sign up for his free NoMoreFakeNews emails here or his free OutsideTheRealityMachine emails here.

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