The Concentration of a Friday Morning

This blog entry from the CBO Director presents a good challenge to define the advocacy of the article. The basic statement that flexibility in the Tax Cost of any carbon emissions limitation would be more valuable in terms of economic performance, than would be high emissions costs from either a Carbon Tax or Caps; I disagree with that position, by the way, thinking that flexibility would increase Abatement Costs, increase Carbon emissions through a distortion of Investment schedules, and subsidize the heaviest Polluters. The Reader should remember this assessment comes from myself, who has scant belief in Carbon emissions abatement in the first place. I enjoy the discussion far more because of the potential source of Tax revenues for a malfunctioning Governmental Cash flow, than I do for poor science success in environmental protection.

Serious Readers may be interested in this trash talk, which is a basic discussion of the responsibility expressed by institutional mismanagement in the late, great financial crisis. All can agree that some banking systems were diligent in their efforts to protect Investor assets, and some were not. All agreed that All should have expressed due diligence, and that the failures should be held to account. The problem comes in the fact that the Offenders were of such magnitude as to drag down the success of the Virtuous. I love the general trend of the Report, which is a finessed repetition of the old ‘He did it!’ I, on the other hand, would define it differently; something on the order that there was too much Cash out there coming from untaxed Business Profits, and financial instruments had to take a bath, simply to restore relative value to a bloated system. People do not like restored value, of course, because they cannot play at being high-Rollers any more.

I have great faith in Paul Krugman as an Economist, but less trust in his political commentary. Hillary’s greatest Selling Point is that Bill will be back in the White House, if she doesn’t divorce him prior to Inauguration, and most People trust Bill to provide a successful administration–even Republicans–through the operative function of Consegulaire. Let’s face it, they have worked well together ever since Arkansas, and it will wind up a good team. Obama has too many unknowns, and McCain would carry the mantra of the Bush years. This is definitely not my support of any Candidate, simply a Statement that in the absence of Anyone electing me President, you get what you get. We may get the great flowering of American Civilization, or a descent into the new Dark Ages; of course, it is much more likely to define the political flair of an Eisenhower or Coolidge. lgl