233 years, children, since the Declaration of Independence. 222 years since the ratification of the US Constitution. A noble experiment at representative democracy. It was a nice run.
But it all ended on June 26, 2009.
The Constitution gives Congress the power to declare war. On June 26, 2009, Congress declared war on the American people.
June 26, 2009 is the day the US House of Representatives passed cap-and-trade. Warren Buffett says "it's a huge tax and there's no sense calling it anything else. I mean, it is a tax. So it -- and it's a fairly regressive tax." Rep. John Boehner calls it a "pile of shit." But it is far worse than that.
Like I said Thursday, cap-and-trade is the most vile piece of legislation ever considered by Congress. With its passage on Friday, it has become a declaration of war by Congress on the American people.
Boehner had this to say after the vote:
"Today, in what will be remembered as the defining vote of the 111th Congress, House Democrats passed a 1,500-page national energy tax bill that no one even had the chance to read. The American people have the right to know what is in this legislation and, more importantly, what impact it will have on middle-class families and small businesses. In just an hour, we raised serious questions about the true consequences of this legislation for Americans' jobs and all of our economy.But that's not all:
"Speaker Pelosi's national energy tax is a bureaucratic nightmare that will cost families more than ever for electricity, gasoline, food, and other products, and cost millions of American workers their jobs. This is a tax on anyone who drives a car, buys an American-made product, or flips on a light switch. It will drive up energy costs, send millions of jobs overseas to countries like China and India, and place an especially heavy burden on rural America. Republicans believe there is a better way. Our American Energy Act is the fastest route to a cleaner, more reliable energy future. By increasing environmentally-safe energy production, promoting alternatives like nuclear and clean-coal technologies, and encouraging increased efficiency, this alternative legislation will create more jobs, lower energy costs, and clean up our air and water.
"There's a big difference between the heartland and San Francisco when it comes to Speaker Pelosi's national energy tax. Today, House Democrats made the decision to stand with left-wing special interests rather than with families and small businesses in their districts that will lose so much because of this national energy tax. The American people will not forget this vote."
In the hours before passage, Rep. Geoff Davis, a Republican from Kentucky, said the cap-and-trade bill represented the "economic colonization of the heartland" by New York and California. Rep. Devin Nunes (R-Calif.) called the bill a "scam" that would do nothing but satisfy "the twisted desires of radical environmentalists." Rep. James Sensenbrenner (R-Wisc.) called it a "massive transfer of wealth" from the United States to foreign countries.So what will this POS do?
America’s biggest oil companies will probably cope with U.S. carbon legislation by closing fuel plants, cutting capital spending and increasing imports.The Heritage Foundation had this to say:
Under the Waxman-Markey climate bill that may be voted on today by the U.S. House, refiners would have to buy allowances for carbon dioxide spewed from their plants and from vehicles when motorists burn their fuel. Imports would need permits only for the latter, which ConocoPhillips Chief Executive Officer Jim Mulva said would create a competitive imbalance.
“It will lead to the opportunity for foreign sources to bring in transportation fuels at a lower cost, which will have an adverse impact to our industry, potential shutdown of refineries and investment and, ultimately, employment,” Mulva said in a June 16 interview in Detroit. Houston-based ConocoPhillips has the second-largest U.S. refining capacity.
The same amount of gasoline that would have $1 in carbon costs imposed if it were domestic would have 10 cents less added if it were imported, according to energy consulting firm Wood Mackenzie in Houston. Contrary to President Barack Obama’s goal of reducing dependence on overseas energy suppliers, the bill would incent U.S. refiners to import more fuel, said Clayton Mahaffey, an analyst at RedChip Cos. in Maitland, Florida.
“They’ll be searching the globe for refined products that don’t carry the same level of carbon costs,” said Mahaffey, a former Exxon Corp. refinery manager.
Prices Seen Rising
The equivalent of one in six U.S. refineries probably would close by 2020 as the cost of carbon allowances erases profits, according to the American Petroleum Institute, a Washington trade group known as API. Carbon permits would add 77 cents a gallon to the price of gasoline, said Russell Jones, the API’s senior economic adviser.
“Because it’s going to be more expensive to produce the stuff, refiners will slow down production and cut back on inventories to squeeze every penny of profit they can from the system,” said Geoffrey Styles, founder of GSW Strategy Group LLC in Vienna, Virginia. “We will end up with less domestic product on the market and a greater reliance on imports, all of which means higher, more volatile prices.”
U.S. motorists, already facing the steepest jump in gasoline prices in 18 years, would bear the brunt as refiners pass on added costs, Exxon Mobil Corp. Chief Executive Officer Rex Tillerson told reporters after a May 27 meeting in Dallas.
Democrats in the House plan to bring the climate bill to a vote as soon as today. House Speaker Nancy Pelosi, a California Democrat, stopped short of predicting victory at a press conference yesterday, saying she was making progress in building support for the bill.
Carbon Allowances
“U.S. refineries get 2 percent of allowances to cover any increases in costs they may incur,” said Drew Hammill, a spokesman for Pelosi.
Drivers, airlines and trucking companies would pay an additional $178 billion annually, or about $560 for each man, woman and child in the U.S., according to the API, whose 400 members include Irving, Texas-based Exxon Mobil and the U.S. unit of Royal Dutch Shell Plc, Europe’s largest oil company.
“That kind of price impact would significantly hurt the competitiveness of U.S. refiners versus importers,” said Glenn McGinnis, chief executive officer at Arizona Clean Fuels Yuma, a Phoenix-based company that’s attempting to build the nation’s first new refinery in three decades.
Such estimates and talk of rising imports are scare tactics that oil companies are using to wheedle concessions from lawmakers, said John Coequyt, the Sierra Club’s chief lobbyist in Washington. Refiners are trying to gain relief on carbon- permit costs that’s meant for manufacturers such as steelmakers that are threatened by foreign competition, he said.
‘Saber Rattling’
“It’s definitely saber rattling, and it’s a hell of a threat,” Coequyt said. “The strategic value of this is pretty obvious. They want to qualify for rebates under the competitiveness test, which of course they do not.”
GSW’s Styles, a former Texaco Inc. refinery and trading manager, said the risks are real. Plants unable to turn a profit under the new rules would be closed, he said.
The permit-cost imbalance would open the door for overseas refiners, such as India’s Reliance Industries Ltd., owner of the world’s largest crude-processing complex, to ship more fuel to U.S. oil companies, said Bill Holbrook, spokesman for the National Petrochemical and Refiners Association in Washington.
“It’s going to give domestic refiners a distinct disadvantage,” said Holbrook, whose trade group represents such fuel makers as Chevron Corp. and Valero Energy Corp.
Acquisitions Possible
Companies such as San Antonio-based Valero, the biggest U.S. refiner, will respond by stepping up efforts to acquire overseas plants that can ship fuel to their home market, said Brian Youngberg, an analyst at Edward Jones & Co. in Des Peres, Missouri. Valero said last week that it will continue to seek acquisition opportunities after Total SA bought the stake it had agreed to purchase in a Netherlands refining venture.
Carbon costs will stress fuel makers already coping with slumping fuel demand and higher costs to meet a federal mandate for increased ethanol use, said Roger Ihne, an energy client portfolio leader at Deloitte Consulting in Houston. Stricter mileage standards that take effect in 2011 will squeeze demand further, he said.
About 2 million barrels of daily U.S. refining capacity will shut down because carbon costs will be several times the operating profits for some plants, Ihne said. That’s equivalent to 12 percent of the nation’s fuel-making capacity. Jones, the API economist, said there could be as much as 3 million barrels of idled processing capacity.
Plants at Risk
“There’s no question there are some marginal refiners that probably will not survive,” said Exxon Mobil’s Tillerson, whose company has the largest worldwide refining capacity. “They may go out of business.” Exxon Mobil derived 18 percent to 24 percent of its profit from refining in the past five years.
Neither Tillerson, 57, nor ConocoPhillips CEO Mulva, 63, said how their companies would respond to climate rules like those in the Waxman-Markey bill. The legislation would cap emissions and create trading of allowances that polluters would need to meet their requirements.
Chevron CEO David O’Reilly, 62, said in a June 11 speech that the bill is “unnecessarily complex” and would be more damaging and less transparent than a carbon tax.
Chevron, based in San Ramon, California, fell 92 cents to $65.95 in New York Stock Exchange composite trading and has dropped 11 percent this year. Exxon Mobil, down 14 percent for the year, slid 83 cents to $69.05. ConocoPhillips fell 14 cents to $41.62, extending its year-to-date decline to 20 percent. Valero is down 24 percent for the year after dropping 21 cents to $16.48.
Reliance on Imports
Refiners and brokers already import 3.12 million barrels of gasoline, diesel and other fuels each day, enough to supply every car, truck, train, airplane, boat and oil-burning power plant in Africa, U.S. Energy Department figures showed.
Those cargoes are in addition to the 9.76 million barrels of raw crude delivered to U.S. ports daily to supply refineries and chemicals plants. Foreign shipments of crude, gasoline and other fuels provide 66 percent of the petroleum burned in the world’s largest economy, according to the Energy Department.
Carbon prices will soar as U.S. refiners compete with each other and other industrial companies for a limited number of allowances, said Bill Durbin, head of carbon research and global energy markets at Wood Mackenzie.
Durbin, a former policy official in the Energy Department during the George H.W. Bush administration, said permit prices may top $100 a ton. Oil companies and their products emit more than 2 billion tons of carbon dioxide a year in the U.S., according to the Energy Department.
“If you can import fuels without the same carbon costs as domestic refiners, you will have an advantage,” Durbin said. “Does that open the door for offshore refiners? I think it does.”
It is clear that cap-and-trade is very expensive and amounts to nothing more than an energy tax in disguise. After all, when you sweep aside all the complexities of how cap and trade operates--and make no mistake, this is the most convoluted attempt at economic central planning this nation has ever attempted--the bottom line is that cap and trade works by raising the cost of energy high enough so that individuals and businesses are forced to use less of it. Inflicting economic pain is what this is all about. That is how the ever-tightening emissions targets will be met.Boehner tries to simplify this new slavery legislation, as much as it can be simplified:
The only entities directly regulated by Waxman-Markey would be the electric utilities, oil refiners, natural gas producers, and some manufacturers that produce energy on site. So, the good news for the rest of us--homeowners, car owners, small-business owners, farmers--is that we won't be directly regulated under this bill. The bad news is that nearly all the costs will get passed on to us anyway.
What are those costs? According to the analysis we conducted at The Heritage Foundation, which is attached to my written statement, the higher energy costs kick in as soon as the bill's provisions take effect in 2012. For a household of four, energy costs go up $436 that year, and they eventually reach $1,241 in 2035 and average $829 annually over that span. Electricity costs go up 90 percent by 2035, gasoline by 58 percent, and natural gas by 55 percent by 2035. The cumulative higher energy costs for a family of four by then will be nearly $20,000.
But direct energy costs are only part of the consumer impact. Nearly everything goes up, since higher energy costs raise production costs. If you look at the total cost of Waxman-Markey, it works out to an average of $2,979 annually from 2012-2035 for a household of four. By 2035 alone, the total cost is over $4,600.
Beyond the cost impact on individuals and households, Waxman-Markey also affects employment, and especially employment in the manufacturing sector. We estimate job losses averaging 1,145,000 at any given time from 2012-2035. And note that those are net job losses, after the much-hyped green jobs are taken into account. Some of the lost jobs will be destroyed entirely, while others will be outsourced to nations like China and India that have repeatedly stated that they'll never hamper their own economic growth with energy-cost boosting global warming measures like Waxman-Markey.
Since farming is energy intensive, that sector will be particularly hard-hit. Higher gasoline and diesel fuel costs, higher electricity costs, and higher natural gas-derived fertilizer costs all erode farm profits, which are expected to drop by 28 percent in 2012 and average 57 percent lower through 2035. As with American manufacturers, Waxman-Markey also puts American farmers at a global disadvantage, as other food-exporting nations would have no comparable energy-price raising measures in place.
Overall, Waxman-Markey reduces gross domestic product by an average of $393 billion annually between 2012 and 2035, and cumulatively by $9.4 trillion. In other words, the nation will be $9.4 trillion poorer with Waxman-Markey than without it.
It should also be noted that the costs are not distributed evenly. Low-income households spend a disproportionate share of their incomes on energy, and thus would be hit harder than average by Waxman-Markey. Of course, the bill has provisions to give back some revenues to low-income households, but it is likely that these rebates will amount only to some portion of each dollar that was taken away from them in the first place in the form of higher energy costs and higher costs for other goods and services. Waxman-Markey also disproportionately burdens those states, especially in the Midwest and South, that still have a substantial number of manufacturing jobs to lose, as well as those that rely more heavily than others on coal for electric generation. In addition, because the bill raises energy costs, it hurts rural America much more than urban America. Rural Americans, farmers and non-farmers, spend an average of 58 percent more on energy as a percentage of income than their urban counterparts, and those costs would go up.
In conclusion, it's not surprising that support for Waxman-Markey is heaviest in those parts of the country, the urban centers in the West Coast and Northeast, that are least harmed by it. Even there, the economic damage would be bad enough, but the citizens in the rest of the country and their representatives should really be asking many tough questions about the economic impact of cap and trade.

And all as the "science" behind global warming ... er, "climate change" is proving to be even more fraudulent than Barack Obama's election by ACORN, so fraudulent that the EPA has had to silence analyses that rip the "climate change" theory to pieces.
Which explains the rush to pass cap-and-trade:
As the U.S. House of Representatives prepares to pass a climate-change bill, the Australian Parliament is preparing to kill its own country's carbon-emissions scheme. Why? A growing number of Australian politicians, scientists and citizens once again doubt the science of human-caused global warming.Power Line puts it more succinctly:
Among the many reasons President Barack Obama and the Democratic majority are so intent on quickly jamming a cap-and-trade system through Congress is because the global warming tide is again shifting. It turns out Al Gore and the United Nations (with an assist from the media), did a little too vociferous a job smearing anyone who disagreed with them as "deniers." The backlash has brought the scientific debate roaring back to life in Australia, Europe, Japan and even, if less reported, the U.S.
In April, the Polish Academy of Sciences published a document challenging man-made global warming. In the Czech Republic, where President Vaclav Klaus remains a leading skeptic, today only 11% of the population believes humans play a role. In France, President Nicolas Sarkozy wants to tap Claude Allegre to lead the country's new ministry of industry and innovation. Twenty years ago Mr. Allegre was among the first to trill about man-made global warming, but the geochemist has since recanted. New Zealand last year elected a new government, which immediately suspended the country's weeks-old cap-and-trade program.
The number of skeptics, far from shrinking, is swelling. Oklahoma Sen. Jim Inhofe now counts more than 700 scientists who disagree with the U.N. -- 13 times the number who authored the U.N.'s 2007 climate summary for policymakers. Joanne Simpson, the world's first woman to receive a Ph.D. in meteorology, expressed relief upon her retirement last year that she was finally free to speak "frankly" of her nonbelief. Dr. Kiminori Itoh, a Japanese environmental physical chemist who contributed to a U.N. climate report, dubs man-made warming "the worst scientific scandal in history." Norway's Ivar Giaever, Nobel Prize winner for physics, decries it as the "new religion." A group of 54 noted physicists, led by Princeton's Will Happer, is demanding the American Physical Society revise its position that the science is settled. (Both Nature and Science magazines have refused to run the physicists' open letter.)
The collapse of the "consensus" has been driven by reality. The inconvenient truth is that the earth's temperatures have flat-lined since 2001, despite growing concentrations of C02. Peer-reviewed research has debunked doomsday scenarios about the polar ice caps, hurricanes, malaria, extinctions, rising oceans. A global financial crisis has politicians taking a harder look at the science that would require them to hamstring their economies to rein in carbon.
Credit for Australia's own era of renewed enlightenment goes to Dr. Ian Plimer, a well-known Australian geologist. Earlier this year he published "Heaven and Earth," a damning critique of the "evidence" underpinning man-made global warming. The book is already in its fifth printing. So compelling is it that Paul Sheehan, a noted Australian columnist -- and ardent global warming believer -- in April humbly pronounced it "an evidence-based attack on conformity and orthodoxy, including my own, and a reminder to respect informed dissent and beware of ideology subverting evidence." Australian polls have shown a sharp uptick in public skepticism; the press is back to questioning scientific dogma; blogs are having a field day.
The rise in skepticism also came as Prime Minister Kevin Rudd, elected like Mr. Obama on promises to combat global warming, was attempting his own emissions-reduction scheme. His administration was forced to delay the implementation of the program until at least 2011, just to get the legislation through Australia's House. The Senate was not so easily swayed.
Mr. Fielding, a crucial vote on the bill, was so alarmed by the renewed science debate that he made a fact-finding trip to the U.S., attending the Heartland Institute's annual conference for climate skeptics. He also visited with Joseph Aldy, Mr. Obama's special assistant on energy and the environment, where he challenged the Obama team to address his doubts. They apparently didn't.
This week Mr. Fielding issued a statement: He would not be voting for the bill. He would not risk job losses on "unconvincing green science." The bill is set to founder as the Australian parliament breaks for the winter.
Global warming zealots are a bit like Iran's mullahs. They are fanatically devoted to a series of false propositions. Unable to win an open scientific debate, they consistently resort to bullying and brute force to suppress their opposition. Once again, we see the Obama administration taking the lead in this regard, putting political ideology above scientific truth and demanding that all others do likewise.Stephen Green paraphrases Churchill to put it even more succinctly: Never Have So Few Stolen So Much From So Many to Achieve So Little.
And yet, though cap-and-trade will impoverish the American people -- but not lawmakers in Congress -- and is based on fraudulent science, Barack Obama, Nancy Pelosi and Henry Waxman are insistent on ramming this down our throats. And these people are supposed to be looking out for you? Supposed to protect you? Not now. They are no different from the Iranian mullahs, using the force of arms of the state to impose a religion on you, in this case, radical environaziism.
This is a declaration of war on the American people by Congress. By cap-and-trade, Congress and the White House now seek to hurt you, reduce your standard of living, to make your life much more difficult. And for what? Environaziism.
So now we must fight back.
RedState identifies Democrats now thought vulnerable because of their vote on cap-and-trade, many of whom should have known better. So, too, should these eight Republicans who voted for cap-and-trade:

So, let's be clear on this, children. By cap-and-trade, Congress has declared war on you, the American people. Time to invoke Darth Sidious:
Every single lawmaker who supports cap and trade is an enemy of the Republic.
Do what must be done. Do not hesitate. Show no mercy.


