Corruption and insider trading are guaranteed around the EU structures
According to Bloomberg and others, the European Union Parliament's environment committee backed a decision to make the "carbon caps" more stringent in the following years, i.e. to extract some carbon indulgences from the market.
The price of the permits for one ton of CO2 instantly jumped by 32 percent or so, from €7 to €10 or so. The committee which has 68 members may de facto change the worth of this trillion-euro industry by a third in a few minutes, just by raising their hand.
The financial transfers caused by raising the hand are equal to tens of billions of dollars per person. Now, try to convince me that these people are acting neutrally, without any external pressures and connections, but be prepared that I will hysterically laugh to your joke and the wind from my laughter could blow you to the Moon.
The presumption of innocence should be replaced by the presumption of guilt when it comes to outrageous gangster organizations such as the EU Parliament's Environment Committee. It is pretty much physically impossible for most of these people not to be corrupt criminals financially connected to the crooks who are selling and buying these despicable pieces of paper for billions of dollars.
It's not exactly explained whether the "markets" (which have nothing to do with free markets in this case) knew about the vote and its expected result in advance. In either case, the people who could either influence whether the vote would take place or whether the result would be Yes effectively had the potential to make hundreds of billions of dollars. Of course, a tiny fraction of a percent is enough for those folks to become superwealthy.
It's unthinkable that these people in the environment committee have never communicated with the holders of the carbon indulgences. They're almost certainly among the people whom they communicate most frequently with. So imagine that you're a holder of €10 billion in carbon indulgences who knows a guy who may organize such a vote that will increase the value of your holdings to €13 billion. You may make a profit of €3 billion so you surely want to convince your friend in the EU Parliament to organize the vote.
You may tell him that his wife who is a manager in a smaller company may suddenly see her salary triple, to €3 million a year. The money will flow from the carbon indulgences. Not a bad deal for either side. Here, I was assuming that it's almost guaranteed that the move would be backed by the committee of the 68 people.
If the Yes outcome is not guaranteed, the details will change but the fact that there is a potential for giant corruption – almost inevitable corruption – doesn't change. If the votes are uncertain, a sufficient number of them may be bought. Let's say that 25 committee members are guaranteed Yes-voters. You need just 10 more "undecided" to vote Yes. Again, if you know that your wealth will jump €3 billion as a result of the vote, you have a pretty good amount of money to influence 10 people how they should vote. Of course that 1,000 times less would be enough.
It's not necessary for every holder of the carbon indulgences to join this game. It's enough for some of them and millions of dollars are already revolving around every committee member. One may say that all the committee members who have earned at least €1 million because of the vote should get a life in prison and the remaining ones should be relocated to a psychiatric asylum.
These carbon "markets" are totally insane because the price may brutally change all the time and it de facto changes mainly because of votes like this. So it's a market but a couple of 68 parasitic corrupt bureaucrats is de facto determining the price they want, by adjusting the caps appropriately. The potential for corruption – using the algorithms above or others (ones that may include shorting) – is nearly infinite. If there were a problem with the greenhouse gases, and there isn't any, a straight tax or extra CO2 fee would surely be a more honest solution than this market-that-isn't-a-real-market.
And that's the memo.
Al Gore abandoning the AGW bandwagon
It seems that Al Gore is gradually admitting that he has been a big arse hole throughout his life so far, because of the climate alarmism etc. So he decided to become an even bigger one by adopting an amorphous concept of a sustainable capitalism.
The Wall Street Journal has published a meaningless article written by Blood and Gore: no kidding!