Obama's Green Dream Will Be America's Next Nightmare

EIKE has a piece today called Super Expensive Energy. It perhaps could serve as a reminder for President Obama, who thinks passing cap & trade and stopping reliance on fossil fuels will somehow plug the hole. My feeling is that Obama is using the oil disaster as a political instrument to drive through a dangerous cap & trade law.

Cap & trade means subsidising industries. Governments can do this as long as they can afford it. But that’s rarely the case. Most often they cannot. Europe is a prime example for Obama to look at.

Take a look at socialist Spain, for example. Driven by a green ideology, and all the promises it brings, Spain went ahead and subsidised wind and solar energy with unbridled abandon, thinking it could create thousands of new green jobs and usher in the next economic wonder.

Well, it has. But not the kind of wonder a sane person welcomes. Today Spain is bankrupt and unemployment is at (twenty) 20%. Spain has since been forced to drastically cut its subsidies, and the solar bubble has popped. Spain is now begging other countries for a bailout.

Even in a country that has abundant sunshine, like Spain, solar energy still cannot compete on the free market without generous subsidies. Consumers prefer reliable and inexpensive energy.

You’d think that with solar energy being completely uncompetitive in a country where sunshine is plentiful, leaders in other countries with gray, rainy climates would avoid such a source of energy. Not Germany. Even with its gray dismal climate, leaders went full throttle ahead in subsidising solar panels and energy. They simply forced the power companies to buy up green power from people who have solar panels on their roofs at exorbitant prices.

The power companies of course simply pass the higher costs on to the consumers. Industry is among the consumers of power. Companies that have energy-intensive processes are moving operations, and the jobs that go with them, out to countries that have much lower pollution standards.

Cooking your own goose

State-guaranteed price for solar power in Germany is far above the actual sales price to the market. Such a method was used in former communist East Germany (the country that built a wall to keep its people from running away). For example, a person there could sell a goose they had raised in his backyard to the local markets at the state-guaranteed price of 30 East German Marks. A few hours later the same seller could go back to the market and buy the same goose for only 15 Marks, slaughtered and ready to cook. Today it’s the same with green power producers. They sell their power for 43 cents/kwh, and then buy it back for 22 cents. Does that make sense?

Only if you want to send the economy to hell in a handbasket, and quickly.

In Germany green laws have been passed that will cost hundreds of billions of euros over the next 15 years, all based on the bogus claim they protect the climate. According to EIKE:

These billions burden the economy in 2 ways: 1) They lead to higher electricity rates for producers, meaning their products become more expensive, and 2) lead higher energy bills for consumers, and thus less buying power. Eventually this will choke the German economy and its growth, which eventually will hit already strapped governments fiscally. Absolute foolery.

5 responses to “Obama's Green Dream Will Be America's Next Nightmare”

  1. Ed Caryl

    The only way this foolishness will stop is for the powers that be to admit they are insane, and that will never happen. We must educate the voters.

  2. René Brioul

    Time to release the more than 60 years suppressed zero point energy.
    No footprint, no co2 whatsoever…
    No more BigOil, no more nucleair plants, no more electricity plants, just a simple device that runs your house and car free of any cost.
    That time is NOW!!!

  3. Athelstan

    Yes you are of course absolutely correct Pierre, Obarmy is politicking and it is scurrilous abuse of the USA electorates’ trust, they voted for a new clean break away from the secret deals, lies and duplicity and what did they receive?…..why just more of the same from a cynical operator.
    Sad to say (as you are no doubt aware)- the idiots (politicians) in Britain are going down the same rocky road of self destruction.
    By encouraging and implementing the German model of ‘feed in tariffs’ and mad/bonkers subsidisation of Wind Turbines, which are absolutely useless -‘white elephants’, we will have major power cuts in Britain soon and with the Northern Hemisphere going into a cold phase it is late in the day to be pushing these idiot schemes…….which we cannot afford (anyway – the country of Britain is flat broke)…this is lunacy.
    In Britain we are desperate for ‘new build’ and traditional technology, electrical power stations but….. all we hear is AGW crap from our loony politicians (why are they so blind?/what is it that they hear and we do not?/what is in it for them?).

    I hope the Americans are more wise and don’t fall for Obama’s crafty, spurious arguments and poorly set trap.

  4. julia

    Obama is trying to crash the U.S. economy. He is backed by rich [-snip] such as George Soros who makes his money by betting against the currencies of nations such as Spain and the U.K. Soros has decided that the U.S. dollar should no longer be the currency of trade and has begun a chain reaction which will eventually bring the country to its knees. Both Obama and Clinton (Hillary) are Soro’s pride and joy, Alinskyites poised and ready to destroy the economy. We will become the next Mexico – a dictatorship masquerading as a democracy. Cheers!

    This is quite a theory you have – loaded with quite a bit of fantasy. I don’t think it’s as bad as you believe. But there seems to be a rogue class of elites who want to decide the direction of the world, who seem not to have faith in direct democracy. Read my posts about Deutsche Welle.

  5. Brian H

    Government may be the art of persuading the population to do patently stupid things to its own detriment.

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