These are the important things to know.
1. Higher energy prices lead to recession.
2. In a recession, higher energy prices will lead to prolonged recession.
3. Because the price increase is in taxes, supply won't rise (suppliers are not seeing the upside of higher taxes, so they have no incentive to increase supply, on the contrary because demand will drop, they might decrease supply, pushing prices up further still.
4. The trade portion, refers to how firms can trade their excess credits to other firms for money. So if Plant A produces less pollution, they can sell a portion of their cap to Plant B. This will create a new derivatives market, almost like a secondary energy currency, that the banks will use as reserves. So basically, the banks will be the ones controlling the energy industry and with a new financial derivative market, at a time when everyone in the world should be terrified of derivatives.
Also, don't blame Obama. This Al Gore stuff has been the legislative agenda in Washington for nearly a decade. Btw, Al Gore has himself set up to make a lot of money off this.
McCain supported this as well. In fact,
a bunch of Republicans crossed the aisle to get this passed.
44 Democrats voted against.
Democrat and Republican are false distinctions. There is no left and right. They all vote for the same programs no matter who is in power.
