Posts Tagged ‘kyoto treaty’

Americans Wake Up to Obama’s Carbon Emission Scam

March 7, 2009

We reported previously that the U.S. Climate Action Partnership’s (USCAP’s) members include some of the country’s worst-managed corporations, as demonstrated by their need for government bailouts. These include former USCAP members AIG and Lehman Brothers, as well as government-dependent entities like General Motors and Chrysler. Our position is that companies that need government mandates to force people to buy their products or services contribute nothing to society, and they should not be in business. If General Electric, for example, cannot engineer cost-effective wind turbines and solar panels, and must instead get the government to require businesses and utilities to buy its products, it is a liability to the country and should not be in business. This message comes across clearly in Kimberley Strassel’s “If the Cap Fits,” from the Wall Street Journal.

    GE makes all the solar equipment and wind turbines (at $2 million a pop) that utilities would have to buy under a climate regime. GE’s revenue from environmental products long ago passed the $10 billion mark, and it doesn’t take much “ecomagination” to see why Mr. Immelt is leading the pack of climate profiteers.

Americans are fortunately waking up to Barack Obama’s plans to raise prices for consumers and knife the unions and workers who helped elect him by imposing carbon taxes that would enrich special interests (USCAP members) while driving energy-intensive businesses offshore. (more…)

Why General Electric is Heading South: Climate Action Partnership says it all

September 25, 2008

“GE slashes earnings view for 2008, but shares gain” by Marketwatch shows that General Electric is off about 38% from its high of about 42 only a year ago. Furthermore, “GE currently makes about 45% of its earnings from the financial unit, called GE Capital.”

From where we sit, General Electric’s problems are the direct result of a management belief, as exemplified by the company’s membership in the Climate Action Partnership, that the company does not have to create genuine value to earn a profit. As described by Kimberly Strassel’s “If the Cap Fits: Why our CEOs are warming to Kyoto,”

    Finally, there’s General Electric, whose CEO Jeffrey Immelt these days spends as much time in Washington as Connecticut. GE makes all the solar equipment and wind turbines (at $2 million a pop) that utilities would have to buy under a climate regime. GE’s revenue from environmental products long ago passed the $10 billion mark, and it doesn’t take much “ecomagination” to see why Mr. Immelt is leading the pack of climate profiteers.

In other words, instead of looking for ways to get the cost of solar panels and wind turbines down to where utilities and even homeowners will prefer them over traditional electricity sources (also known as “making money the old fashioned way, by earning it”), GE apparently wants the government to pass laws to compel utilities to buy his company’s products. This attitude, as well as a shift in resources from GE’s traditional manufacturing strategy to financial services, probably explains a good part of the company’s troubles.

On another note, another Climate Action Partnership member wanted the government to impose carbon emission caps, and a cap and trade regime, so it could make money by taking commissions on carbon credit trades. Its name was Lehman Brothers.

“Carbon Credit Bookmakers” and “Corporate Welfare Seekers”

December 12, 2007

Physicians for Civil Defense’s “Money and Power” (November 2007) has an outstanding perspective on cap-and-trade proposals for carbon emissions, and other greenhouse gas regulations.

Under a cap and trade scheme, success will depend on skill in predicting or manipulating government policy. Bookmakers such as Morgan Stanley and Goldman Sachs would broker the carbon credit trading they support, making money from the forced purchases and sales, whatever the market did. Placing big bets are the 10 corporate welfare seekers that formed the Climate Action Partnership (USCAP). These include Duke Energy, PG&E, FPL, PNM Resources, Alcoa, BP, Caterpillar, Dupont, General Electric, PepsiCo, and others (see www.us-cap.org), hoping for $1.3 trillion in free money.

We encourage anyone who owns stock in any of these companies to introduce a stockholder resolution, in accordance with SEC requirements, that denounces carbon emission trading and emission caps as a scam from which the company should disassociate itself (while encouraging energy efficiencies that reduce costs for consumers while increasing company profits).

Royal Philips Electric, which is seeking legislation to force people to buy its compact fluorescent lights (we buy CFLs, but not from Philips) is yet another problem, and it was a sponsor of the Live Earth Concert.