Carbon Credits = Catholic Indulgence

What a catchy title! I am sure that alone will throw a few people to read this blog. So I have been trying to figure out just how to go about explaining to someone what in the world these carbon credit thingys are. Well, after long thought (about 20 minutes) I figured it out! Catholic Indulgences! I know, someone will probably condemn me to the firey pitts of hell for this one, oh well, it's a great comparison I think!

Remember all those history (or even Bible *gasp* classes) where you heard about the famed Martin Luther (the white one) and his 95 Theses? Well, Martin Luther was a wee bit upset about the fact that the catholic church (aka the Pope) were selling indulgences. Now just what is an indulgence? In Monopoly terms it is a "get out of jail" card or in the churches case a "get out of hell" card, the only difference between the church term and the monopoly term is that you could buy it from the church where in monopoly it is the luck of the draw. So get this, you could buy an indulgence, go murder someone (make it someone worthwhile though) and you would not go to hell--so long as you have purchased your indulgence. Purchase enough of these things and the possibilities of "sins" you can commit and be free from the firey pitts of hades are endless! Indulgences--coming to a walmart near you (catchy ad yea?)!

Now, I know you are waiting for my connection between carbon credits and indulgences!

Using our example above I draw this conclusion and example, substitute the word "indulgence" with "carbon credit" and boom--we have our example:

Under this new bill "energy bill" our make-believe company General Motors is granted 12 indulgences over the course of a year (1 indulgence a month). Over the course of a year, if GM commits 20 "sins" than they will need to purchase 8 more indulgences from the government. Do you think GM will fit the bill for those extra 8 indulgences? NO! Who will?

Let's bring it to a more personal level. If your local energy company, say Georgia Power, is given 24 indulgences over the course of a year (2 each month) and we will fictitiously say that in one month they have used 4 indulgences, they will need to purchase 2 more indulgences. Now, here is the question, will Georgia Power pay for those 2 extra indulgences or will they pass that expense on to their customers? Aww, yes my friends, and this is where the new cap and trade bill becomes the LARGEST tax increase in the history of this country! Yet if I recall a campaign promise from president Obama (president purposely lowercased as he is a weak president), he said he would not raise taxes on families earning less than $250,000/year. Well, last time I checked, even the people who are living in apartments have to pay an electric or gas bill and probably have a car as well (though hopefully they went with a Honda or Toyota and not some American made junk).

Hmm, simple enough I think!