From Housing to Carbon: Special Interests Rule
By Dave Funk, Congressional Candidate Iowa-03 and Steve Schultz, Political Consultant
It really is that simple. Right now President Obama and Senate Democrats plan to fix the environment via cap and trade (C&T). Well, C&T is not nearly as “honorable” as the left makes it out to be.
The economic crises we are now experiencing is largely due to the irresponsible use of mortgage-backed securities. These securities were in fact highly regulated and we know how well the hokey pokey between Wall Street and Washington worked out.
Well now we move on to Carbon, or frankly, ANY emission’s exchange. There is a Chicago based company called the Chicago Climate Exchange, Inc. This company was originally funded by seed capital from the city’s Joyce Foundation where President Obama was a board member of at the time of its funding. Now, the Chicago Climate Exchange is trading about $10 billion a month worldwide according to an interview by its founder (and patent holder) Richard Sandor. Former Chief of Goldman Sachs, Hank Paulsen was also key in the founding of this company and exchange.
Rewind two years from the time their patent was approved and our very own Fannie Mae received approval for their patent of a residential emission exchange. Which, by the way, was approved the same day the political right sealed their fate, November 7th, 2006.
Richard Sandor claims this exchange will be global and will become a $10 trillion market. So the question is what cunning schemes Washington and other global leaders devise to create a market that will have artificial value? In an interview with Bloomberg Sandor said that there is no risk of the emissions market ever crashing because it’s “regulated” and not open like mortgage-backed securities. Mortgage-backed securities WERE highly regulated. So you likely understand my concern with the SEC regulating an industry that according to Sandor doesn’t have the “opaque” value mortgage-backed securities had when that same agency doesn’t have a stellar record when it comes to securities trading.
Furthemore, Goldman Sachs, a favorite of President Obama and many other Democrats in Congress, just happens to own 19% of the parent company of this Chicago based emissions exchange company called Climate Exchange Plc.
Barbara Hollingsworth described it best saying,
“But passage of the legislation would create an artificial, government-mandated, trillion-dollar carbon trading market that would drive up the price of energy, indirectly making housing more expensive.
“If the proprietary emissions trading system functions like other exchanges such as the New York Stock Exchange, which makes most of its revenue on listing and trading fees, its owners could see extremely generous profits, especially with a patent that keeps out competition for two decades.”
Not to scream conspiracy or anything but here are our concerns.
What special interests are behind the actual language and writing of current energy policies and C&T that will be debated? After seeing the corruption and special interest slant behind the stimulus package, healthcare bill and current financial reform bill Obama wants to debate, we’re curious to see what other sweetheart deals Fannie Mae is going to walk away with. Will there be some sort of residential carbon tax? Will C&T just be another Ponzi scheme created to give special interests more power?
They are essentially creating an enormous emissions exchange that will make all involved rich, really quick. That is Chicago politics at its best. Create a law that will make special interests even more money. We saw the housing bubble burst; imagine a $10 trillion market crash and its impact on the world. Based on the distrust that the actions of those in Congress have built with the American people I can only imagine how long it would take for this Ponzi scheme to meltdown. After all, an artificial market with artificial value could only last so long.
As Dave has said for years, find the money and you’ll find the motive.