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Showing posts with label Kyoto. Show all posts
Showing posts with label Kyoto. Show all posts

Thursday, June 20, 2013

Obama's new obsession with the global warming myth

Posted on 10:50 PM by Unknown
Barack Obama was visiting Berlin and at the Brandenburg Gate (which looked so ordinary to me a few years ago – relatively to my childhood – because no one is waiting there to shoot you anymore), he gave a speech urging the world to reduce nuclear weapons and... to combat climate change.



Our leaders before 1989 would surely be jealous if they saw how enthusiastically and uncritically the attendants of the rally were waving their parade sticks. But the reasons behind the difference are understandable: Obama is more charismatic and he probably more genuinely believes some of these left-wing delusions than our leaders in the years of late socialism did.

Nuclear reduction treaties are being signed often but the repetitive speeches suggest that they don't really mean much.

More seriously, the deluded anti-carbon policies may cripple the world economy. When we already thought that everyone agreed that this is a lost cause – there hasn't been any significant global warming for about 20 years and everyone seemed to agree that the plans to reduce carbon emissions have costs that beat any hypothetical benefits by many orders of magnitude (moreover the "benefits" are extremely likely to be negative by themselves) and that even climate alarmists have shifted from thinking about "mitigation" to plans of "adaptation", we see crackpots who happen to be top politicians at the same moment and who repeat the old debunked misconceptions again.




Obama boasts that the U.S. has doubled the production of power from "renewable" sources. It's fun but a detail to notice is that the U.S. has indeed done much more than typical large countries that have signed to the Kyoto protocol. America has increased the power from "renewable" sources and improved the fuel efficiency despite its absence from any major global anti-carbon hooray campaign. The increased efficiency wasn't the only goal or the main goal but the invisible hand of the free markets simply works – it is even more able to improve certain quantities than the (partially) planned economies can, including quantities that the (partially) planned economies are obsessed with.

Moreover, there are countries such as mine that have quintupled the production of power from "renewable" sources during the same period and that are producing many cars that are more fuel-efficient. And I could even boast the reduction of CO2 emissions relatively to the late 1980s – but that would be a demagogy because everyone should know that this decrease had nothing to do with our "good will" to fight global warming and everything to do with the inefficiency of communism that ended in 1989.

At the same moment, we have also acquired a much deeper understanding for the fact that this campaign was a major mistake. Even Al Gore now admits that the support for the biofuels was a major mistake but it will take some more time for everyone to agree that the subsidies for all ludicrous sources of energy have been a mistake. Our lawmakers are already eliminating subsidies for all of them – especially the photovoltaic plants, in our case. They are – as much as other laws and treaties allow them – trying to retroactively impose extra fees on those who have been making an undeserved and undeservedly guaranteed profit from these deeply uneconomic and misled policies.




What will the crackpot Barack Obama actually try to do if he wants to walk the dangerous walk and not just talk the stupid talk (about the harsher planet expecting his grandchildren blah blah blah)?

The Christian Science Monitor and many other outlets talk about his desire to shut down "hundreds of existing coal plants". These media discuss the need to convince whole regions of the U.S. that depend on coal plants to behave suicidally and allow the Feds to literally destroy a crucial segment of their economies. CS Monitor advises Obama to visit the states between Wyoming and Kentucky, act as a messiah, and this will guarantee that Democratic and perhaps even Republican lawmakers will back the recommended suicidal policies. The worst fact about this plan is that it could actually work.

That's one side of the equation. The other side of the equation are the consumers of the electricity. I can't understand how the U.S. may do well if hundreds of power plants are abruptly shut down. We're told that in whole regions, coal produces 1/2 of the energy.

In Europe, we have many countries and one of them may suddenly get a little bit crazy and shut down the power plants of some kind. Even if a large country such as Germany does such a thing, it doesn't really destroy the system because the existing grid is marginally enough for Germany to import the bulk of the electricity it needs from other countries that didn't get crazy at the same moment. For example, Czechia is an energy exporter most of the time. It may export much more than it was exporting in the past if that's necessary. There are other neighbors that would probably behave rationally if Germany began to behave truly irrationally so the whole region would be doing mostly fine.

But if the U.S. really wants to shut down an important fraction of its power plants, where will it import the power from? If I don't count places like Canada ;-), the U.S. occupies a large fraction of North America. There are no Czechias hiding in the corners that could inject the badly needed power (and common sense) when the whole America (starting from the White House) gets crazy.

To a large extent, it is paradoxical that Barack Obama gave the speech in Berlin because despite the occasional anti-global-warming talk we hear from Germany, Germans remain mostly rational. The Daily Mail has told us that some German government officials demanded other EU countries to loosen their requirements for CO2 car emissions (allow higher CO2 emissions). If the countries won't start to eliminate this heritage from the worst years of the climate hysteria, Germany may stop the expansion of the German carmakers' car production in those countries and maybe reduce the existing one, too. This suggests that at least in some respects, countries like the U.K., France, and Italy have gotten more carbon-hysterical than Germany.

You may see that at least in individual industries, people are starting to realize that the plan to regulate CO2 emissions is a pernicious idea that should be abandoned. But the transportation doesn't offer just a negligible fraction of the man-made CO2 emissions; it is responsible for about a fifth. Other industries that produce CO2 are doing so for a good reason, too.

In different countries, regions, and industries, different processes that lead to the CO2 emissions are differently represented. Any attempt to impose carbon fees or carbon taxes or any other genre of carbon harassment asymmetrically will lead to increasingly violent clashes between the nations, between the regions, between the industries and companies, between all the people. Everyone can feel that carbon regulation is a very harmful policy when it comes to the activities that he won't be allowed to do freely anymore, activities that are important for his or her own well-being. Everyone can be less sensitive when it comes to the other people's interests. But the former cases should be enough for everyone to agree that all CO2 regulation should be abandoned.

And that's the memo.
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Posted in climate, Kyoto, politics | No comments

Sunday, December 9, 2012

Snow covers Europe

Posted on 12:36 PM by Unknown
Hundreds of countries signed an extension to the Kyoto protocol – it will annoy and steal from Europe and others (while bringing no benefits whatsoever) – until the year 2020.

Nature has seen how well-behaved all of us have been and it immediately rewarded us with a continental snowfall which replaced the temperatures going up to –30 °C at various places of Czechia (and Switzerland and other countries) in recent days.



For example, we think of Croatia as one of the Czech tourists' most typical summer destinations. It's warm over there because the Forefather Croat wasn't as lazy and stupid as Forefather Czech when he was walking to the South with his entourage. There's been no Forefather Croat but I hope you don't care because they do have some version of the Czech-Lech[-Rus] legend, too. ;-)




Zagreb accumulated 40 centimeters of snow today, the maximum since 1955.

In Pilsen, we received something like 10 cm of snow which is not overwhelming but the it's no longer a symbolic coating full of holes. Solid layers of snow may be found everywhere, cars are "raking" through it, and so on. Seven Czechs died today because of the snowfall.

Of course, there's nothing unusual about snow on December 9th. Nevertheless, when you compare various predictions such as Snowfalls are now just a thing of the past in 2000 with the reality of recent 10 years, you must agree that those predictions have already failed miserably.



Snow in Europe today, with some relaxing music

There are many new things happening in the world – and many processes and events are bad and becoming worse – but the weather isn't one of them. It's doing what it's been doing for millions or billions of years.
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Posted in climate, Europe, everyday life, Kyoto, weather records | No comments

Wednesday, October 24, 2012

Czech police uncovers a $20 million carbon credit fraud

Posted on 9:40 AM by Unknown
A day later, it also foils a $100 million solar fraud

The most straightforward way to learn what's going on with carbon trading in my country is... to read e-mails from a well-informed Malaysian American at Harvard. ;-)



The CZK 1,000 banknote was chosen as the World's Best New Banknote in 2008 by the Association of Currency Affairs.

Willie Soon sent me this URL:
Police suspect two of carbon credit fraud worth CZK 378m (Prague Monitor)

News in Czech
One U.S. dollar is worth 19 Czech crowns (CZK) so the amount these two men earned was nice, $20 million. Some real estate worth half a million dollars was already blocked.

The "trick" wasn't too difficult. They bought and sent some carbon indulgences. Officially, they pretended that both transactions occurred within Czechia. As payers of the 20% or so value-added-tax (VAT), they would buy the carbon permits for an increased price with the VAT tax included, i.e. 120% of the "tax-free price", and they would sell it for a price including VAT, too. They would pay the 20% VAT as the difference between the 20% VAT they received for the sale and the 20% VAT they had to pay during the purchase.

(All the "VAT payers" – usually companies except for tiny ones – get all the VAT they pay back. The only folks who don't get the VAT back and who "really" pay it are the regular consumers etc. who are paradoxically called "VAT non-payers", and that's why the government ultimately gets some money from the VAT game.)

Under normal circumstances, a VAT payer (I had to become a VAT payer as well, due to some small amounts and crazy EU laws) would sell it for the same amount as the price for which he bought it. That would include the tax and our IRS would return nothing if both transactions involved the same amount of money. No profit, no loss. VAT is about the "added value" and nothing is added if you just buy and sell for the same price. However...




However, in reality, they actually bought the carbon credits outside the Czech Republic, in another EU member state. It means that they didn't actually pay any VAT – although they later requested that the Czech IRS de facto "returns them" this tax they haven't paid. They had to "reclassify" the purchase as an internal Czech transaction.

This is probably particularly simple in the case of carbon credits because their actual value (which is a completely artificial construct) is something that no one really understands, especially if you start to move the credits from one country to another. I am pretty confident that our Pilsner IRS officers who sometimes harass ordinary people because of a few crowns wouldn't dare to question similar transactions because it's over their heads. Fortunately, the anti-corruption police in Prague knows better.

The men face up to 10 years in prison. However, due to the messiness and irrationality of this "carbon market", there may exist lots of people with similar nice profits who will never be caught.



A solar fraud for $100 million

You may think that the two men above are just bad apples and exceptions. Well, one day after the information about $20 million carbon fraud above, we were told about another success in the Czech anti-corruption police's campaign against assorted environmental and renewable fraudsters that was celebrated just one day later, namely three hours ago.
Anti-corruption police accused 9 people, foiled a $100 million solar fraud (Czech radio, automatic translation)
Among the 9 accused people, three are pretty interesting because they're employees of the National Energy Market Regulation Office which supervises the photovoltaic industry in my country.

In 2010, the fraudsters managed to get stamps on all the paperwork proving that two solar power plants in Northern Bohemia began operation. The advantage was that this achievement guaranteed subsidies – well, guaranteed much-higher-than-market price for the produced electricity to be purchased by the state – for the next 20 years. The subsidies for power plants started after 2010 have already been substantially lower.

There was only one problem with these two solar power plants in 2010: they didn't exist in the reality yet. You may agree that it's irresistible to acquire all the paperwork that is needed to get insanely high subsidies for nothing. If you could build 100 solar power plants (on the paper or, perhaps in the future when you're rich, in the reality as well) with a guaranteed profit for 20 years, you would want to do it.

The profit of the "group of nine little Czech Al Gores" (stolen subsidies that shouldn't have been paid) was quantified as $100 million (two billion Czech crowns) – comparable to one American Al Gore's net worth. The police has ordered the court to arrest the three bureaucrats. In America, Al Gore remains at large.

Incidentally, the Czech government decided today to significantly shrink the subsidies for the renewable sources once again – which is good. However, the rules of the game are such that the government will indirectly force the consumers to pay these subsidies instead – which is bad. The latter fact will make the electricity 2-4 percent more expensive since 2013. See Electricity price will jump again; due to the premium for green energy (automatic translation).

At the same moment, companies' mandatory fee for renewable energy should jump from CZK 419 to CZK 613 since January 2013. A coalition of Czech industrialists sent a complaint (autom. translation) to the government against the liquidating ransom in which they warned against coming losses, bankruptcies, and tens of thousands of new unemployed people.

Especially the Northeastern region of North Moravia near Ostrava – which is rather poor and has depended on coal and steel to make living for quite some time – has been switched to a revolutionary mood (autom. translation). If you're an advocate of the global warming hysteria, renewable energy, and similar pathological concepts, I recommend you not to travel to Ostrava because your mouth could be reshaped in the way that no one has dared to reshape your mouth yet even though it should have been done for many years.
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Posted in climate, Kyoto, markets | No comments

Saturday, September 29, 2012

Gore's investment firm: no green investments

Posted on 10:27 AM by Unknown
Al Gore has repeatedly said that he was putting his money where his mouth is. However, it was just revealed that in the real world, Al Gore is stealing the money where almost every green criminal steals them, and he is putting them where almost every rich person or investor puts them. Be sure that these two places are very different from one another.



WND.com just published a very interesting text with the title:
Al Gore bails from green energy investment
Bill Gunderson, the president of Gunderson Capital Management, has looked at the portfolio of Al Gore's investment management firm, Generation Investment Management. In fact, you can look at the list yourself; it's at the SEC website:
SEC about Gore's firm
What firms will you see there?




You may check every individual company listed over there – I haven't done so but Gunderson claims that none of them is concerned with carbon reduction or alternative energy sources. In particular, none of the companies produces solar panels, wind turbines, or biofuels. Instead, what you find are mundane commercial real estate, biotech, and healthcare companies, aside from Amazon, Procter and Gamble, Colgate Palmolive, Polypore (whose stocks they doubled: production of membranes for batteries and filters), and others.

In general, the green companies were never promising or profitable by themselves. They have always relied on subsidies and distortions of the markets guaranteed by corrupt or just plain stupid politicians controlled by special groups such as the group around Al Gore. But even the subsidies are dropping and Al Gore, or at least people in his company, know it very well.

So the climate is the place where Al Gore earns his money starting from nothing – for insane speaking fees, from sponsors, printed carbon indulgences by himself, and so on. But once he has already stolen all these millions, he can't afford to throw them to the trash bin known as the green economy because it was so hard for him to steal all these funds by decades of lying and fraud! He invests them just like everyone else.

I wonder whether during one of the future "climate reality days" that Gore organizes, he will reveal the reality of the climate's absence in his investments.
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Posted in climate, Kyoto, markets, politics | No comments

Monday, September 24, 2012

EU carbon market will be saved by a new boom of coal

Posted on 2:07 AM by Unknown
An hour ago, I saw a fascinating article on Patria.CZ, a Czech server for investors, which revealed a highly paradoxical, nearly comical plan.

Analysts at UBS are predicting that by 2015, energy giants such as E.ON and RWE will build lots of new coal power plants – in fact, their capacity will be 6 times greater than the capacity of previously preferred gas-based alternatives. That may send the price of carbon permits up by 73% by 2013. Note that the U.N.-based carbon indulgences' price, CER, dropped by 80 percent in the most recent year.




The new boom that is expected both in Western Europe as well as the post-socialist Europe is the only sensible way how the carbon market may be saved. Isn't it ironic? ;-) For the climate alarmists to preserve their institutionalized bare skin, they must do everything they can to force people to build new coal power plants. Such paradoxical events occur everywhere where planning trumpets the market. The plans – indefensible irrational arbitrary guesses – are almost never right or realistic which is why their champions often have to do many things, including things that manifestly make things worse, to preserve their face.

Note that Europe is already burning coal at the highest rate since 2006 which is great news for the U.S. coal exporters such as Arch Coal Inc.

Joe Romm actually informed us about a closely related insanity. You may now actually earn carbon credits in the "Clean Development Mechanism" if you build new coal power plants! ;-) It's enough for your new power plant to be "supercritical" which really means just some 10% increase of the efficiency. Note that the previous methods to earn the carbon credits were to murder farmers in Honduras and thousands of people in Uganda. So the United Nations support truly "humanitarian" causes.

All these insane games redirect billions of dollars, reduce the efficiency of the markets, and a part of these billions always ends up in the pockets of de facto criminals. Needless to say, the impact on the CO2 emissions is non-existent, not that I would care in one way or another. In fact, the United States that haven't been a party to any carbon credit trading have seen the greatest decrease of CO2 emissions in the world.

Capitalism is an engine that works. Caps, plans, carbon markets, and climate alarmists are dirty sand in between the wheels that tries to stop the engine.

And that's the memo.
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Posted in Europe, Kyoto, markets, politics | No comments
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