All Scientists are Sceptics ~Professor Bob Carter

Whenever someone asserts that a scientific question is “settled,” they tell me immediately that they don’t understand the first thing about science. Science is never settled. Dr David Deming

Perhaps the most frustrating aspect of the science of climate change is the lack of any real substance in attempts to justify the hypothesis ~Professor Stewart Franks

A lie told often enough becomes the truth.
-- Vladimir Ilyich Lenin - See more at: http://thepeoplescube.com/lenin/lenin-s-own-20-monster-quotes-t185.html#sthash.aTrSI3tG.dpuf
A lie told often enough becomes the truth.
-- Vladimir Ilyich Lenin - See more at: http://thepeoplescube.com/lenin/lenin-s-own-20-monster-quotes-t185.html#sthash.aTrSI3tG.dpuf
A lie told often enough becomes the truth.
-- Vladimir Ilyich Lenin - See more at: http://thepeoplescube.com/lenin/lenin-s-own-20-monster-quotes-t185.html#sthash.aTrSI3tG.dpuf

Saturday, 18 October 2014

Poverty is the aim; sell fossil-fuel stocks for largest price.

From Real Clear Markets on the fossil-fuel sector:
The fossil-fuel sector is huge---about $5 trillion in market capitalization---because other sectors demand energy, and fossil fuels overwhelmingly are the most efficient forms with which to provide it. So if investment in fossil-fuel sectors engenders some sort of moral quandary, does the same principle apply to investment in industries that use energy? After all, they are responsible for the very existence of the energy producers; will the divestment campaign expand to agriculture, manufacturing, transportation, retailing, the household sector, and all the rest? Is investment in government bonds the only moral course? Well, no: Government too uses vast amounts of energy.
In the item Benjamin Zycher  writes that over 175 institutions, local governments, and individuals, with a total of over $50 billion in assets, as of last month have pledged to sell their investments in fossil-fuel industries. Benjamin notes that for "sell" they use the curious term "divest."

How far down the chain will these divesting bodies go:

So if investment in fossil-fuel sectors engenders some sort of moral quandary, does the same principle apply to investment in industries that use energy? After all, they are responsible for the very existence of the energy producers; will the divestment campaign expand to agriculture, manufacturing, transportation, retailing, the household sector, and all the rest? Is investment in government bonds the only moral course? Well, no: Government too uses vast amounts of energy.
Is the aim poverty?
And let us not stop there: Precisely why do all sectors demand energy? Obviously, it is because people demand the goods and services made affordable by fossil fuels. Notice that the correlation between energy consumption and household income is high, and rises as income increases; for the bottom three U.S. income quintiles, the respective correlations are 0.75, 0.85, and 0.91. If fossil fuels are evil, so are rising incomes, as the latter drive up the demand for the former. So let us be very clear that one central implication of the divestment campaign---remember, it is a moral imperative---is the desirability of poverty as a tool with which to dampen energy demands and thus incentives to invest in fossil-fuel sectors. This is separate from the impoverishing effect of a substitution of expensive energy in place of conventional energy produced with fossil fuels. 
Poverty for the people not the institutions and governments:
"Divest" is a curious term; a simpler verb is "sell," and it is a source of some interest that the divesting institutions and individuals are pledging to do so within three to five years. Why not just give the assets away immediately on a first-come/first-serve basis? The obvious answer is that those divesting---selling---the fossil-fuel assets prefer to get the highest prices that they can, an objective not obviously consistent with the purported moral imperative underlying a shift out of fossil fuels and toward the "new energy economy," about which more below. 
Read more at Real Clear Markets.



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