Matt Taibbi on another improvised explosive device buried in bank deregulation – one that could lead to the biggest bang yet:
Banks aren’t just buying stuff, they’re buying whole industrial processes. They’re buying oil that’s still in the ground, the tankers that move it across the sea, the refineries that turn it into fuel, and the pipelines that bring it to your home. Then, just for kicks, they’re also betting on the timing and efficiency of these same industrial processes in the financial markets – buying and selling oil stocks on the stock exchange, oil futures on the futures market, swaps on the swaps market, etc.
Allowing one company to control the supply of crucial physical commodities, and also trade in the financial products that might be related to those markets, is an open invitation to commit mass manipulation. It’s something akin to letting casino owners who take book on NFL games during the week also coach all the teams on Sundays….
The irony was incredible. After fucking up so badly that the government had to give them federal bank charters and bottomless wells of free cash to save their necks, the feds gave Goldman Sachs and Morgan Stanley hall passes to become cross-species monopolistic powers with almost limitless reach into any sectors of the economy.
Read more here.
Worldwide subsidies for fossil fuels amount to a whopping $500 billion annually, according to a new report from London-based Overseas Development Institute:
They are subsidizing the very activities that are pushing the world towards dangerous climate change, and creating barriers to investment in low-carbon development.
Read about another tilted playing field here.
Wanting to preserve the centralized electric power system and guaranteed returns of 10%, the nation’s electric utilities are ramping up to quash the threat posed by rooftop solar panels, writes Diane Caldwell in the New York Times:
For years, power companies have watched warily as solar panels have sprouted across the nation’s rooftops. Now, in almost panicked tones, they are fighting hard to slow the spread.
Read more here.
Senator Bernie Sanders (Ind-VT) writes on winners and losers in U.S. energy policy:
It is not about whether government is picking winners and losers, because clearly government has been doing just that for years, with the fossil fuel and nuclear industries being the big winners. What is necessary to reverse global warming and create jobs is that we pick the right winners – the technologies that will transform our energy system and protect the environment.
Read his take here.
Bill McKibben breaks down the “new math” of global warming:
We have five times as much oil and coal and gas on the books as climate scientists think is safe to burn….
Yes, this coal and gas and oil is still technically in the soil. But it’s already economically aboveground – it’s figured into share prices, companies are borrowing money against it, nations are basing their budgets on the presumed returns from their patrimony. It explains why the big fossil-fuel companies have fought so hard to prevent the regulation of carbon dioxide – those reserves are their primary asset, the holding that gives their companies their value. It’s why they’ve worked so hard these past years to figure out how to unlock the oil in Canada’s tar sands, or how to drill miles beneath the sea, or how to frack the Appalachians.
Read it here.
In 2010, Pittsburgh’s City Council voted unanimously to ban hydraulic fracturing for natural gas extraction within city limits. Now the Pennsylvania legislature is moving to deny local governments the right to protect the local environment:
We don’t have a fracking problem. We have a democracy problem.
Read about it here.
This short cartoon from www.capanddividend.org lays out how a cap-and-dividend climate policy would work:
Source: Cap’n Dividend.