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Emissions Trading 101
The Great Big Money-Go-Round...
Power Co.
“We keep your lights on”
Industry Inc.
 “We make things”
Retailer Inc.
  “We sell things”
Government Is Here
  “The Public Trough”
You Are Here
 “Conned Citizens”
At a high-powered
Government meeting
 with Big Business...
Industry Inc.
 “We make things”




                     Power Co.
                    “We keep your lights on”
Department of Climate Change
                                  Higher Taxes - Strategic Planning Division



             ...
Department of Climate Change
         Higher Taxes - Strategic Planning Division


            You get a share in the mone...
First, we’re going to
                                                   declare that carbon dioxide
                     ...
Second, we’ll put a “cap” on
                          how many tonnes of
                      “Carbon Pollution” the nat...
Department of Climate Change
                               Higher Taxes - Strategic Planning Division



                ...
Department of Climate Change
                                         Higher Taxes - Strategic Planning Division



      ...
Next, we’re going to create
                        lots of bits of paper, called
                            “Carbon Cred...
These carbon credits will have a
                       starting value... kind of like a share
                      in a ...
And we’re going to give each of
                                                     you guys a heap of them




         ...
Sounds great! So how many
 “Carbon Credits” will my
      industry get?

                                                 ...
And you know something?
                             Your question brings me to a great
                                ex...
Department of Climate Change
                     Higher Taxes - Strategic Planning Division



                          ...
Ok, so basically you’re
      going to give us a pile of
       “free” shares in your
              scheme...



         ...
Sure can! And you know something,
                                                  two wise guys named Dave Blood and
   ...
Department of Climate Change
                 Higher Taxes - Strategic Planning Division


                           Here...
Department of Climate Change
                              Higher Taxes - Strategic Planning Division



 OK, but there’s ...
Department of Climate Change
                          Higher Taxes - Strategic Planning Division




And if we emit less ...
Department of Climate Change
      Higher Taxes - Strategic Planning Division



  Now, since we’ve promised to cut the nu...
Department of Climate Change
                                         Higher Taxes - Strategic Planning Division


But, co...
Department of Climate Change
                                          Higher Taxes - Strategic Planning Division

Ok, gre...
Department of Climate Change
                                             Higher Taxes - Strategic Planning Division



We...
Of course, administration for all
                                                                   this new stuff ... no...
No problem. We’ll spin it
                                            as a great thing for
                               ...
Meanwhile, in the offices
   of Big Banking...
TBTF
  International Bank                        Pon Z
            of New York                   of London
       “Big Bub...
TBTF
International Bank                    Pon Z
      of New York                   of London
  “Big Bubbles No Troubles”...
TBTF
International Bank                     Pon Z
      of New York                    of London
  “Big Bubbles No Trouble...
TBTF
                                                    Pon Z
       International Bank
                 of New York     ...
TBTF
                                                Pon Z
International Bank
      of New York                           ...
TBTF
                                         Pon Z
International Bank
      of New York                      of London
  ...
TBTF
                                               Pon Z
International Bank
      of New York                            ...
TBTF
                                                       Pon Z
International Bank
        of New York                  ...
TBTF
                                                  Pon Z
International Bank
       of New York                        ...
TBTF
                                              Pon Z
International Bank
        of New York                         of...
Government gives Big Business a
    seat at the Public Trough.
 Electricity companies, and other
     CO2 emissions-intens...
Naturally, we always have a seat at
the government table. After all, no
   “market-based” solution can
 operate without th...
And the Retail industry gets a seat
   too. They’re actually vital to the
           whole scheme.


                     ...
First, the Government sets up
a bureaucracy for handing out
        Carbon Credits...


                                  ...
And more bureaucracy
    to hand out
  compensation ...



                                              Bankster Inc.
   ...
And there you have it! The Great
 Big Money-Go-Round, all set to
        start turning ...


                             ...
The Great Big Money-Go-Round
Power Co.
“We keep your lights on”
Industry Inc.
 “We make things”
Retailer Inc.
  “We sell things”
Government Is Here
  “The Public Trough”
You Are Here
 “Conned Citizens”
Industry Inc.
                      “We make things”




Retailer Inc.                                                    ...
Industry Inc.
                      “We make things”




                        Carbon Credits



Retailer Inc.          ...
Power Co.
                               “We keep your lights on”




                           “Woo Hoo!”


Carbon Credi...
Industry Inc.
                        “We make things”




           “Woo Hoo!”




        CC = $$




Carbon Credits
Retail Inc.
 “We sell things”




                    “D’oh!”




                              Carbon Credits
Carbon Credits




                 [ ... whistling... ]




You Are Here
 “Conned Citizens”
Industry Inc.
                       “We make things”




                     Bigger Government
Retailer Inc.          “B...
Power Co.
                       “We keep your lights on”




                   “Woo Hoo!”


Compensation

              ...
Industry Inc.
                       “We make things”




          “Woo Hoo!”




  $$$$$$$$



Compensation
Retail Inc.
 “We sell things”




                    “D’oh!”




                              Compensation
Compensation




                   “Thank you Fairy Ruddfather”


$




    You Are Here
       “Conned Citizens”
“Time to collect some
                                    free, easy money... to crank up our new
                        ...
Power Co.
                                           “We keep your lights on”
“Fees & Commissions! ...
      Woo Hoo!”

  ...
Industry Inc.
                                                         “We make things”



                               ...
Retail Inc.
 “We sell things”




             “#%$&!* parasites!”


                                   “Wheeeeeeeee!...”
...
“Wheeeeeeeee!...”


                           Bankster Inc.




                                     “#%$&!* parasites!”
...
Bankster Inc.
                                 Carbon Credits

“The cost of those extra
Carbon Credits is killing
our bott...
Industry Inc.
               “We make things”




            WTF!?!




   $$$$$



Power Co.
Retail Inc.
 “We sell things”




             WTF!?!



                           Power Co.
                    $$$$
Power Co.




                                 WTF!?!



      $$$$



            You Are Here
             “Conned Citiz...
Power Co.
                 “We keep your lights on”



                 “That’ll help cover
                  our extra co...
Bankster Inc.
     Carbon Credits
                                                “These electricity price
               ...
Retail Inc.
 “We sell things”




               “#%$&!* our suppliers
             prices have really gone up”




      ...
Industry Inc.




                 [ ... whistling... ]




You Are Here
 “Conned Citizens”
Power Co.
                     “We keep your lights on”



                    “#%$&!* our suppliers
                  pri...
Industry Inc.
                         “We make things”



           “That’ll help cover
            our extra costs”



...
Bankster Inc.
     Carbon Credits



                                Compensation



Power Co.                         Ind...
Retail Inc.




                                   WTF!?!



        $$$$



              You Are Here
               “Co...
Power Co.
              “We keep your lights on”


Retail Inc.
                   [ ... whistling... ]
Industry Inc.
                    “We make things”



              [ ... whistling... ]




Retail Inc.
Retail Inc.
 “We sell things”




             “That’ll help cover
              our extra costs”




                    ...
TBTF
                                           Pon Z
International Bank
        of New York                      of Londo...
TBTF
                                                      Pon Z
International Bank
          of New York                 ...
TBTF
                                              Pon Z
International Bank
      of New York                           of...
TBTF
                                               Pon Z
International Bank
        of New York                          ...
TBTF
                                      Pon Z
International Bank
      of New York                   of London
  “Big B...
TBTF
                                                           Pon Z
International Bank
      of New York                ...
TBTF
                                                 Pon Z
International Bank
      of New York                          ...
Retail Inc.




                                   WTF!?!



        $$$$



              You Are Here
               “Co...
“ Woo Hoo! ...
More tax revenue!”

                                           Bankster Inc.
                          Carb...
Power Co.




                                 WTF!?!
    $$$$


            You Are Here
             “Conned Citizens”
“Woo Hoo! ...
MORE tax revenue!”

                                              Industry Inc.
                            ...
TBTF
                                                           Pon Z
International Bank
      of New York                ...
TBTF
                                                          Pon Z
International Bank
      of New York                 ...
Big Bankrupt Government
   “The Bankster’s Bailout”




                                                     WTF!?!
      ...
The End




Copyright © 2010 The Blissful Ignoramus All rights reserved
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Emissions Trading 101

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A simple explanation of how emissions trading really works.

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Emissions Trading 101

  1. 1. Emissions Trading 101
  2. 2. The Great Big Money-Go-Round...
  3. 3. Power Co. “We keep your lights on”
  4. 4. Industry Inc. “We make things”
  5. 5. Retailer Inc. “We sell things”
  6. 6. Government Is Here “The Public Trough”
  7. 7. You Are Here “Conned Citizens”
  8. 8. At a high-powered Government meeting with Big Business...
  9. 9. Industry Inc. “We make things” Power Co. “We keep your lights on”
  10. 10. Department of Climate Change Higher Taxes - Strategic Planning Division Well boys, we’ve found a way to put a tax on thin air Yeah so... what’s in it for us?
  11. 11. Department of Climate Change Higher Taxes - Strategic Planning Division You get a share in the money-go-round Eeeexcellent! Here’s how it will work...
  12. 12. First, we’re going to declare that carbon dioxide is pollution... Carbon Pollution! But isn’t CO2 a clear, odourless gas... harmless plant food... essential for life on earth? DENIER!!
  13. 13. Second, we’ll put a “cap” on how many tonnes of “Carbon Pollution” the nation can emit each year... Carbon Pollution! Then we’ll take that total number of tonnes allowed for the nation, and divide it up...
  14. 14. Department of Climate Change Higher Taxes - Strategic Planning Division We’ll decide how many tonnes of CO2 each different industry is allowed to emit each year But isn’t that “picking winners”?
  15. 15. Department of Climate Change Higher Taxes - Strategic Planning Division Of course it is! Why do you reckon we called you in here?! Riiiiight... so, all cheques still payable to your Cayman’s retirement account?
  16. 16. Next, we’re going to create lots of bits of paper, called “Carbon Credits”... Right to Emit Carbon Credit Each carbon credit will be equal to one tonne of CO2... One tonne of CO2
  17. 17. These carbon credits will have a starting value... kind of like a share in a company, when it gets listed on the Stock Exchange... Right to Emit Carbon Credit One tonne of CO2
  18. 18. And we’re going to give each of you guys a heap of them Carbon Credits Eeeexcellent! Carbon Credits
  19. 19. Sounds great! So how many “Carbon Credits” will my industry get? Mate, let me just say this... we’re all about competition here. This is all about a Carbon Credits “market-driven” solution to the Greatest Moral Challenge of Our Time - our the threat of global warming... Carbon Credits
  20. 20. And you know something? Your question brings me to a great example of how a fair dinkum competition-based policy works... Carbon Credits Carbon Credits
  21. 21. Department of Climate Change Higher Taxes - Strategic Planning Division Can you write more zeros on your cheque than he can write on his? That’s competition for you...
  22. 22. Ok, so basically you’re going to give us a pile of “free” shares in your scheme... “Carbon Credits”... Carbon Credits you got it! And we can trade them for real money, like on the stock market? Carbon Credits
  23. 23. Sure can! And you know something, two wise guys named Dave Blood and Al Gore have already set up a trading market - the Chicago Carbon Exchange. Carbon Credits Ha ha ha ha ha! ... Blood and Gore!?! You’re killing me! Carbon Credits
  24. 24. Department of Climate Change Higher Taxes - Strategic Planning Division Here’s the best part though. We’re going to reduce the total number of shares carbon credits over time... which means that yours will be practically government-guaranteed to go up in value Eeeeexcellent!
  25. 25. Department of Climate Change Higher Taxes - Strategic Planning Division OK, but there’s one thing I don’t understand ... how will any of this reduce emissions of CO2? Well, let’s say we give you 10,000 carbon credits. That means you can emit 10,000 tonnes of CO2. If you emit more, you’ll have to buy more credits.
  26. 26. Department of Climate Change Higher Taxes - Strategic Planning Division And if we emit less than 10,000 tonnes? Can we sell our extra credits? You sure can!
  27. 27. Department of Climate Change Higher Taxes - Strategic Planning Division Now, since we’ve promised to cut the number of credits over time, eventually you’ll have to think about cutting your emissions. Otherwise, you’ll have an extra cost in your business. There won’t be enough credits to go around. So you’d need to start buying extra.
  28. 28. Department of Climate Change Higher Taxes - Strategic Planning Division But, couldn’t we just pass the cost of buying extra credits on to our customers, and not bother reducing our emissions at all? Sure! Eeeexcellent!
  29. 29. Department of Climate Change Higher Taxes - Strategic Planning Division Ok, great. But if you’re going to impose this new cost of doing business on us, we want some compensation. You know, to No problem. How help us “adjust” to the new much “compensation” “carbon economy” do you want? (wink wink, nudge nudge) Eeeexcellent!
  30. 30. Department of Climate Change Higher Taxes - Strategic Planning Division Well, you’ve gotta make it worth our while. After all, we could just sack our workers, close up shop, and go set up Yeah, we figured you might say that. again in a “developing” country Just give me a number, boys - the taxpayer’s footing the bill Eeeeexcellent!
  31. 31. Of course, administration for all this new stuff ... not to mention policing it ... means we’re going to need a much bigger Government bureaucracy... Carbon Credits Carbon Credits But won’t some people think this smells like an excuse for Socialist, Big Government, bureaucratic empire building?
  32. 32. No problem. We’ll spin it as a great thing for unemployment and the economy - lots of new “Green Jobs”! Carbon Credits Compensation Compensation Carbon Credits
  33. 33. Meanwhile, in the offices of Big Banking...
  34. 34. TBTF International Bank Pon Z of New York of London “Big Bubbles No Troubles” “The Giza of Fund Management” I told you our muppets in government would deliver for us! We’ll be raking in gazillions from Emissions Trading soon
  35. 35. TBTF International Bank Pon Z of New York of London “Big Bubbles No Troubles” “The Giza of Fund Management” I hope so, old chap. That Subprime Bubble was simply brilliant... while it lasted.
  36. 36. TBTF International Bank Pon Z of New York of London “Big Bubbles No Troubles” “The Giza of Fund Management” But now we really need to get your Great Carbon Bubble going ... or my investors are going to start asking awkward questions
  37. 37. TBTF Pon Z International Bank of New York of London “Big Bubbles No Troubles” “The Giza of Fund Management” Don’t worry, we’ll be able to start pumping up our biggest bubble ever real soon now Can we go over how it works again.. for us, I mean? Sure!
  38. 38. TBTF Pon Z International Bank of New York of London “Big Bubbles No Troubles” “The Giza of Fund Management” Since our housing bubble went bust, we need a new way to make money using our fancy derivatives systems
  39. 39. TBTF Pon Z International Bank of New York of London “Big Bubbles No Troubles” “The Giza of Fund Management” But aren’t these “exotic” financial instruments what got us all into this GFC mess?
  40. 40. TBTF Pon Z International Bank of New York of London “Big Bubbles No Troubles” “The Giza of Fund Management” Sure! But who gives a #%$&!* We made a killing while it lasted. Heck, I bought a new 80m yacht just last month
  41. 41. TBTF Pon Z International Bank of New York of London “Big Bubbles No Troubles” “The Giza of Fund Management” And since the taxpayers’ have bailed us out anyway, it’s all good. We knew that subprime would implode some day... that’s why we’ve been sponsoring the Global Warming scam.
  42. 42. TBTF Pon Z International Bank of New York of London “Big Bubbles No Troubles” “The Giza of Fund Management” We knew that after our dot com, housing, and commodities bubbles, we would need a new “paper tiger” to make huge leveraged bets on. Carbon Credits, right? You got it!
  43. 43. TBTF Pon Z International Bank of New York of London “Big Bubbles No Troubles” “The Giza of Fund Management” That’s why we’ve spent years getting our “Old Boys” into government. We need politicians to do our dirty work for us. They have to set up our Cap and Trade... legislative framework “Emissions Trading”... ? Yup! The Great Big Money-Go-Round Here’s how it works ...
  44. 44. Government gives Big Business a seat at the Public Trough. Electricity companies, and other CO2 emissions-intensive Industry ... manufacturing, mining, and the like ... all get a seat on the Money-Go-Round. Government “The Public Trough” Power Co. Industry Inc.
  45. 45. Naturally, we always have a seat at the government table. After all, no “market-based” solution can operate without the banking and finance sector ... Bankster Inc. Government “The Public Trough” Power Co. Industry Inc. Indeed. They don’t call us the “Masters of the Universe” for nothing, ha ha ha ha!
  46. 46. And the Retail industry gets a seat too. They’re actually vital to the whole scheme. Bankster Inc. How so? Government “The Public Trough” Power Co. Industry Co. Retailers are going to be, sort of like our own army of tax collectors ... in disguise! Retail Inc.
  47. 47. First, the Government sets up a bureaucracy for handing out Carbon Credits... Bankster Inc. Carbon Credits Power Co. Industry Inc. Carbon Credits Retail Inc.
  48. 48. And more bureaucracy to hand out compensation ... Bankster Inc. Carbon Credits So these are all spokes in the wheel of the new Big Government Money-Go-Round? Compensation Power Co. Industry Inc. Compensation Carbon Credits Yup... Retail Inc.
  49. 49. And there you have it! The Great Big Money-Go-Round, all set to start turning ... Bankster Inc. Carbon Credits You mean.. churning? Compensation Power Co. Industry Inc. Compensation Carbon Credits Now you’ve got it! Watch and learn ... Retail Inc.
  50. 50. The Great Big Money-Go-Round
  51. 51. Power Co. “We keep your lights on”
  52. 52. Industry Inc. “We make things”
  53. 53. Retailer Inc. “We sell things”
  54. 54. Government Is Here “The Public Trough”
  55. 55. You Are Here “Conned Citizens”
  56. 56. Industry Inc. “We make things” Retailer Inc. Power Co. “We sell things” Government Is Here “We keep your lights on” “The Public Trough” You Are Here “Conned Citizens”
  57. 57. Industry Inc. “We make things” Carbon Credits Retailer Inc. Big Government Power Co. “We sell things” “We keep your lights on” “Big Public Trough” Carbon Credits You Are Here “Conned Citizens”
  58. 58. Power Co. “We keep your lights on” “Woo Hoo!” Carbon Credits CC = $$
  59. 59. Industry Inc. “We make things” “Woo Hoo!” CC = $$ Carbon Credits
  60. 60. Retail Inc. “We sell things” “D’oh!” Carbon Credits
  61. 61. Carbon Credits [ ... whistling... ] You Are Here “Conned Citizens”
  62. 62. Industry Inc. “We make things” Bigger Government Retailer Inc. “BIG Public Trough” Compensation Power Co. “We sell things” “We keep your lights on” Compensation You Are Here “Conned Citizens”
  63. 63. Power Co. “We keep your lights on” “Woo Hoo!” Compensation $$$$$$$$
  64. 64. Industry Inc. “We make things” “Woo Hoo!” $$$$$$$$ Compensation
  65. 65. Retail Inc. “We sell things” “D’oh!” Compensation
  66. 66. Compensation “Thank you Fairy Ruddfather” $ You Are Here “Conned Citizens”
  67. 67. “Time to collect some free, easy money... to crank up our new carbon derivatives casino!” Bankster Inc. Carbon Credits Compensation Power Co. Industry Co. Carbon Credits Compensation Retail Inc.
  68. 68. Power Co. “We keep your lights on” “Fees & Commissions! ... Woo Hoo!” “I need to buy / sell some carbon credits please” Bankster Inc. CC = $$
  69. 69. Industry Inc. “We make things” “I need to buy / sell some carbon credits please” CC = $$ “MORE Fees & Commissions! ... Woo Hoo!” Bankster Inc.
  70. 70. Retail Inc. “We sell things” “#%$&!* parasites!” “Wheeeeeeeee!...” Bankster Inc.
  71. 71. “Wheeeeeeeee!...” Bankster Inc. “#%$&!* parasites!” You Are Here “Conned Citizens”
  72. 72. Bankster Inc. Carbon Credits “The cost of those extra Carbon Credits is killing our bottom line. Time to pass on our extra costs Compensation to the suckers customers” Power Co. Industry Co. Carbon Credits Compensation Retail Inc.
  73. 73. Industry Inc. “We make things” WTF!?! $$$$$ Power Co.
  74. 74. Retail Inc. “We sell things” WTF!?! Power Co. $$$$
  75. 75. Power Co. WTF!?! $$$$ You Are Here “Conned Citizens”
  76. 76. Power Co. “We keep your lights on” “That’ll help cover our extra costs” Power Co. $$$$$$$$
  77. 77. Bankster Inc. Carbon Credits “These electricity price increases are killing our bottom line. Time to pass on our extra costs Compensation to the suckers customers” Power Co. Industry Co. Carbon Credits Compensation Retail Inc.
  78. 78. Retail Inc. “We sell things” “#%$&!* our suppliers prices have really gone up” Industry Co. $$$$
  79. 79. Industry Inc. [ ... whistling... ] You Are Here “Conned Citizens”
  80. 80. Power Co. “We keep your lights on” “#%$&!* our suppliers prices have really gone up” Industry Inc. $$$$
  81. 81. Industry Inc. “We make things” “That’ll help cover our extra costs” $$$$$$$$ Industry Inc.
  82. 82. Bankster Inc. Carbon Credits Compensation Power Co. Industry Co. Carbon Credits Compensation Retail Inc. “All these electricity price increases, and industry price increases.. they’re killing our bottom line. Time to pass on our extra costs to the suckers customers”
  83. 83. Retail Inc. WTF!?! $$$$ You Are Here “Conned Citizens”
  84. 84. Power Co. “We keep your lights on” Retail Inc. [ ... whistling... ]
  85. 85. Industry Inc. “We make things” [ ... whistling... ] Retail Inc.
  86. 86. Retail Inc. “We sell things” “That’ll help cover our extra costs” $$$$ Retail Inc.
  87. 87. TBTF Pon Z International Bank of New York of London “Big Bubbles No Troubles” “The Giza of Fund Management” There you have it... the biggest money churn ever! And we make money every time a carbon credit is traded? Fees and Commissions baby!
  88. 88. TBTF Pon Z International Bank of New York of London “Big Bubbles No Troubles” “The Giza of Fund Management” But fees are nothing. The real money is in the trillions of derivatives we’ll create, so we can bet big on fluctuations in the carbon price
  89. 89. TBTF Pon Z International Bank of New York of London “Big Bubbles No Troubles” “The Giza of Fund Management” But won’t volatility in the price of carbon credits screw all the industries that have to buy and sell them?
  90. 90. TBTF Pon Z International Bank of New York of London “Big Bubbles No Troubles” “The Giza of Fund Management” Who gives a #%$&!*? We make money when the market goes up or down. It’s those big swings in the markets that maximise our profits. OK ... but one thing I still don’t understand...
  91. 91. TBTF Pon Z International Bank of New York of London “Big Bubbles No Troubles” “The Giza of Fund Management” Where does all the money come from?
  92. 92. TBTF Pon Z International Bank of New York of London “Big Bubbles No Troubles” “The Giza of Fund Management” You mean... to pay for all the compensation... and the big government bureaucracy... and for the extra carbon credits that Power Co. and Industry Inc. will have to buy... through our Carbon Exchange casino?
  93. 93. TBTF Pon Z International Bank of New York of London “Big Bubbles No Troubles” “The Giza of Fund Management” Exactly. All this money churning around ... and around ... and around. It has to come from somewhere... right? Sure! From the same place it always comes from...
  94. 94. Retail Inc. WTF!?! $$$$ You Are Here “Conned Citizens”
  95. 95. “ Woo Hoo! ... More tax revenue!” Bankster Inc. Carbon Credits Compensation Power Co. Industry Co. Carbon Credits Compensation Retail Inc.
  96. 96. Power Co. WTF!?! $$$$ You Are Here “Conned Citizens”
  97. 97. “Woo Hoo! ... MORE tax revenue!” Industry Inc. Compensation Carbon Credits Bankster Inc. Retail Inc. Compensation Carbon Credits Power Co.
  98. 98. TBTF Pon Z International Bank of New York of London “Big Bubbles No Troubles” “The Giza of Fund Management” So... Emissions Trading is really just a huge Socialist wealth redistribution scam?! Redistributed to us... yeah!
  99. 99. TBTF Pon Z International Bank of New York of London “Big Bubbles No Troubles” “The Giza of Fund Management” Brilliant! But what’s the plan for when our Great Big Carbon Bubble implodes... there is a plan, right? Sure! It’s the same plan that’s worked so well for us every time...
  100. 100. Big Bankrupt Government “The Bankster’s Bailout” WTF!?! $$$$$$ You Are Here “Bankrupt Citizens”
  101. 101. The End Copyright © 2010 The Blissful Ignoramus All rights reserved

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