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Guest Post: Federal Reserve Carbon Footprint And The End Of Cheap Coal

Tyler Durden's picture


Submitted by Joaquin Ferrer Benat of Qmunty

Federal Reserve Carbon Footprint And The End Of Cheap Coal

When analyzing the Federal Reserve
monetary expansions, pundits only assess economic issues like inflation,
balance sheets, bubbles or public debt. Significant as they are, it
will be very useful that all this smart people were added to the camp of
those who want to “save the planet”. Let me to try pin down it.

On January 27 OTC Derivatives Supervisors Group (ODSG) and major market participants met at the Federal Reserve Bank of New York
to discuss how to improve infrastructures and reduce risks in
derivatives markets, supporting G20 objectives. They agreed to set out
those plans in a letter to the ODSG by March 31.

We will continue to focus on increasing
standarization and transparency, as well as the further development and
innovation of central clearing facilities to reduce counterparty credit
risk. We must continue to advocate for solutions that will extend
central clearing benefits to a broader set of participants in a safe and
sound manner.

These are the words of Mr. William
Dudley of the New York Fed. But before the letter reaches its
destination, the President sould take a look at this charts.

Direct relationship between OTC market
growth, foreign purchases of US debt and China’s coal consumption is
obvious. And of course also between the disorderly monetary expansion
cheered by the Fed, american deficits, global imbalances and Asian
country CO2 emissions. This chart is enough.

We are in luck, because ODSG wants to support “G20 objectives” and we can read the notes of an attendee
of the 2010 G20 meeting. According to the documents, the delegates
concluded that a process of fiscal consolidation would be the key
solution to the crisis, involving country-specific ideas with central
coordination. Although the delegates evidently discussed the need to
address the sovereign debt crisis “through cutting expenses and not
through increased taxes”, that statement is immediately followed in this
attendee’s notes by the idea of introducing carbon taxes.

I have never bought “save the planet”
lema, because to save something we need first to find the culprit and
the fault. And in this case the matter is really subjective. But now I
like it so much, because to reduce carbon footprint G20 wants to tax
everybody. But brother, is necessary to see first financial institutions
practising what they preach and began to grab the taxes where the root
is. OTC markets are the key to reduce carbon emissions and we need more
“fiscal consolidation” and “increased transparency” indeed to do it.
Otherwise they were watching the straw in the eyes of others, but not
the beam in them.

If someone wants to audit the Fed, what
will need first is to change the moto and search something banks seems
to understand very well: the carbon footprint. And this is a really
pretty one:


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Sun, 02/27/2011 - 22:03 | 1002704 GeneMarchbanks
GeneMarchbanks's picture

first. go green by shorting China and... uhhh... how do you short the Fed? Buy_____(fill in the blank)

Sun, 02/27/2011 - 22:13 | 1002740 Clockwork Orange
Clockwork Orange's picture


Sun, 02/27/2011 - 23:09 | 1002876 G-R-U-N-T
G-R-U-N-T's picture

It would appear that these ACO2CC looting frauds thinks the worlds masses are their bitchez!

Mon, 02/28/2011 - 00:33 | 1003045 DoChenRollingBearing
DoChenRollingBearing's picture

Just what I was going to say!

Sun, 02/27/2011 - 22:37 | 1002813 mynhair
mynhair's picture

TBT.  Easier to trade than gold.

Sun, 02/27/2011 - 23:32 | 1002927 rocker
rocker's picture


Sun, 02/27/2011 - 22:04 | 1002711 DirtySouth
DirtySouth's picture

Agenda 21

Sun, 02/27/2011 - 22:48 | 1002836 Atomizer
Atomizer's picture


Bring on $5-7 dollar gas prices, watch their revenue stream come to a halt. The Government Motors Volt deserves an award. Best in class for 100% coal power vehicle with little interest @ $40K drive away cost. Watch for new TV commercials to offer added taxpayer subsidies. Dealerships are panicking to unload product. Keeping the car charged for peasant test drives was an unforeseeable dealership expense.


Sun, 02/27/2011 - 22:59 | 1002855 spekulatn
spekulatn's picture

Well said, Atomizer.

Sun, 02/27/2011 - 23:04 | 1002866 Long-John-Silver
Long-John-Silver's picture

Take down your pictures of the FORD Edsel and replace them with the Chevy Volt.

Mon, 02/28/2011 - 01:48 | 1003203 Michael
Michael's picture

Save the bees, save the trees, save the whales, save the snails.

Sun, 02/27/2011 - 22:07 | 1002725 flacon
flacon's picture

Solution to all the world's problems: "We need to tax the people more. "

Sun, 02/27/2011 - 22:09 | 1002729 Ray1968
Ray1968's picture

Solution for the people: "Bring back the Guillotine."

Sun, 02/27/2011 - 23:45 | 1002949 Milestones
Milestones's picture

I like the way you think.      Milestones

Mon, 02/28/2011 - 01:45 | 1003198 searcher68
searcher68's picture


Sun, 02/27/2011 - 22:19 | 1002762 zaknick
zaknick's picture

There are nefarious interests behind "climate change".

Sun, 02/27/2011 - 22:37 | 1002814 Michael
Michael's picture

You mean man-made climate change as the climate is always changing.

The battle is already won on this issue.

I spent 18 months on Watts Up With That killing the carbon tax deal.

Sun, 02/27/2011 - 22:20 | 1002764 disabledvet
disabledvet's picture

what i find fascinating is that our current supply of oil was created when the planet heated up so much that the ice caps melted and turned the oceans into oceans of death that "reduced carbon based units to carbon based units."  how ironic!  "we've unleashed the beast" called oil which will "kill us all by turning us into the next proven reserve"! and then "the next carbon based life form can rinse and repeat." i don't know why i find that funny but i do.  i really do.  and to think "we're ready to kill for the stuff, too"!  icing on the "cake of death."  how's that for DOOOOOMMMMMMMM.  does anyone really know if humans existed before humans?  maybe we've around a lot longer than we realize but we keep killing ourselves off so quickly we haven't figured it out yet.

Sun, 02/27/2011 - 22:37 | 1002811 topcallingtroll
topcallingtroll's picture

People should google and read ocean anoxic event. It is a little scary that our oil supply is from a planet-wide ecological catastrophe.

Sun, 02/27/2011 - 23:37 | 1002937 Caviar Emptor
Caviar Emptor's picture

Ashes to ashes, flesh to oil

Sun, 02/27/2011 - 22:20 | 1002765 buzzsaw99
buzzsaw99's picture

Hey bernank, go jump in the Yellow River.

Sun, 02/27/2011 - 22:24 | 1002770 mynhair
mynhair's picture

Save the Planet!  Snuff a Lib.

(Sorry, couldn't resist.)

What have Libs ever done for the Planet: ethanol?

Mon, 02/28/2011 - 03:35 | 1003317 Confused
Confused's picture

I junked you. But only because I can't make it through any article without you making a statement like this.


At least youre consistent.  

Mon, 02/28/2011 - 08:45 | 1003449 weinerdog43
weinerdog43's picture

"What have Libs ever done for the Planet"

Oh, gee, I don't about the National Parks.  And from, gasp...a Progressive. 

Heh, indeed.


Sun, 02/27/2011 - 22:25 | 1002771 Mercury
Mercury's picture

I'm not even sure what the thesis is of this poorly written piece. But if this guy thinks developing Asian countries are going to willingly retard their growth by paying a carbon tax to some sort of (Western, let's face it) "world" government he's smoking crack.

Sun, 02/27/2011 - 22:25 | 1002784 mynhair
mynhair's picture

You so misread the piece.  You pay the carbon tax so China can grow!

And continue polluting their rivers, cuz that ain't carbon.

Algore sez so, so it shall be done.

Sun, 02/27/2011 - 22:33 | 1002801 topcallingtroll
topcallingtroll's picture

You both misunderstand.

You tax and regulate the growth of otc derivatives and you get to keep bankers on a short leash, gain some revenue, and slow china growth and carbon output.

According to this thesis at least, which is partly tongue in cheek.

Sun, 02/27/2011 - 22:40 | 1002817 mynhair
mynhair's picture

I need some of that yer taking, Troll.  Heaven on Earth.

Ooops, I just farted!

"John Spartan, that is 10 credits"

Sun, 02/27/2011 - 22:27 | 1002786 PulauHantu29
PulauHantu29's picture

Carbon Tax will really spur economic growth.NOT!.

Senator Cornyn, from Texas, says the carbon credit tax will cost Texas alone over 60,000 jobs.

Sun, 02/27/2011 - 22:28 | 1002791 topcallingtroll
topcallingtroll's picture

I am all for anything that could put china into a recession. The decreased resource utilization and resultant commodity and energy deflation would take the pressure off, and.we could run a loose monetary policy a lot longer.

If we can just get the world temporarily to deflate a little while we inflate we win!

Sun, 02/27/2011 - 22:30 | 1002797 mynhair
mynhair's picture

'world temporarily to deflate'

Hence Billary as SoS.

Mon, 02/28/2011 - 10:09 | 1003572 falak pema
falak pema's picture

Wishful thinking, if you think that you will reflate anything except hyper inflated assets with QE3. China's economy is on a trajectory that may become decoupled with that of USA in the next five years. That's the time frame for a 'reflation strategy' available to USA in the best of conditions. But it must be complemented by a mega fiscal/govt. bud. red. policy to make it even 'ball park' compatible.

Sun, 02/27/2011 - 22:32 | 1002800 lynnybee
lynnybee's picture

it's the end of cheap EVERYTHING !  ........... except houses, of course . 

Sun, 02/27/2011 - 22:41 | 1002824 mynhair
mynhair's picture

You mean horses?

Sun, 02/27/2011 - 22:32 | 1002804 Misean
Misean's picture

Go Green! Erin Go Bragh!

Sun, 02/27/2011 - 22:35 | 1002809 spanish inquisition
spanish inquisition's picture

Geez, of course you have to have carbon tax credits. What else can you base the next derivative platform on? The latest tech bubble is about to blow up with twitter and faceweb and you need a replacement. It's all about pipeline product management.

Sun, 02/27/2011 - 22:43 | 1002830 mynhair
mynhair's picture

Funny how that Chinee graph exploded after Algore came up with the now defunct 'global warming' carbon credit fund, the name of which always escapes me, as Algore invented it.

Sun, 02/27/2011 - 22:46 | 1002833 mynhair
mynhair's picture

Geez, Libs.


(trolling for junks)

Sun, 02/27/2011 - 23:29 | 1002916 Crumbles
Crumbles's picture

Just another boring Sunday night in the big shitty ...

Nothing on the tube

Guess I'll waste some time on ZH

So it goes


Sun, 02/27/2011 - 22:50 | 1002840 mynhair
mynhair's picture

The 'World Carbon Emissions' graph is from Reuters, no other source.  Guess it is more believable than an AP graph.

Sun, 02/27/2011 - 22:55 | 1002847 Yen Cross
Yen Cross's picture

My ocean view home Registered 37F last night. Check out John Coleman. He co- founded the Weather Channel.

Sun, 02/27/2011 - 23:01 | 1002859 mynhair
mynhair's picture

Human Gullibility

75% |                                                        ^

        |                                                      /     \

        |                                                    /

        |                                                  /

60% |                                                /

        |                                             -

        |                                           /


                         2007    2008    2009    2010    2011

(source:  mynhair)        


Sun, 02/27/2011 - 23:11 | 1002879 Cpl Hicks
Cpl Hicks's picture

Nice work, but US voter gullibility peaked in November of 2008.

Sun, 02/27/2011 - 23:17 | 1002888 mynhair
mynhair's picture

Well, not really.  Had to extrapolate the uptrend until early 2010.

Sun, 02/27/2011 - 23:04 | 1002862 G-R-U-N-T
G-R-U-N-T's picture

I can't believe this ACO2GW nature worshiping looting the world fraud has come this far....Good lord.



Sun, 02/27/2011 - 23:11 | 1002878 Stuck on Zero
Stuck on Zero's picture

High labor rates driven higher by Government rules and regulations accelerate the consumption of energy.  When labor rates go sky high economic forces push companies to burn more energy and higher fewer people.  I have watched many businesses dump equipment, scrap useful materials, and abandon works because the cost of labor was so high it wasn't worth fixing.  When they built a high-rise in Chicago recently they used Chinese steel.  It was made from scrap steel exported from the U.S. to China, fabricated there using coal from Australia, shipped across the Pacific and railed from Seattle to Chicago.  This was cheaper than buying the steel from Gary using iron ore from Wisconsin.  Just remember this ... high labor rates mean wasting energy.

Sun, 02/27/2011 - 23:19 | 1002894 gwar5
gwar5's picture

Audit the Fed. Stiff the Fed. Short the Fed. End the Fed.

Mon, 02/28/2011 - 00:42 | 1003055 DoChenRollingBearing
DoChenRollingBearing's picture

As Michael asked earlier today, I preach again:


Show us our Gold!   FED delenda est!

Show us our Gold!   FED delenda est!

Show us our Gold!   FED delenda est!

Show us our Gold!   FED delenda est!

Show us our Gold!   FED delenda est!

Show us our Gold!   FED delenda est!

Show us our Gold!   FED delenda est!

Show us our Gold!   FED delenda est!


Sun, 02/27/2011 - 23:20 | 1002895 Oh regional Indian
Oh regional Indian's picture

Well, thanks for answering my question with such a fascinating correlation.

I'd asked yesterday, on the marc faber peice:

prognostications such as these (Faber's) always make me think about finance and technology as quite a chicken and egg thing. Who birthed the run-away metastasis that is current technology and current finance. Their mutually parasitic and beneficial relationships should be clear enough to one and all.

Hu made who?

And what will take it down? A butlerian jihad or a proletariat jihad?

Because it's all going down, for sure.

It's quite obvious now, the correlation. Technology and "finance" have dovetailed and tail-winded each others metastasis.





Mon, 02/28/2011 - 01:42 | 1003188 piceridu
piceridu's picture

Thanks for the links...

Sun, 02/27/2011 - 23:35 | 1002931 Twindrives
Twindrives's picture

Light a fire under Bernanke's ass.

Sun, 02/27/2011 - 23:36 | 1002935 mynhair
mynhair's picture

Save the Planet!  Burn water!

Sun, 02/27/2011 - 23:51 | 1002962 Caviar Emptor
Caviar Emptor's picture

We burn more and more  until we start running low, then we kill each other over what's left and start again at lower consumption. Rinse repeat. Until the last oil soldier slurps the last last drop and drops too. 

Mon, 02/28/2011 - 04:49 | 1003355 stopthenewworldorder
stopthenewworldorder's picture

plenty plenty cheap coal out there. 80% world's power comes from coal and 80% of that is uneconomic to mine but we know exactly where it is - most of which will be deployed using ucg-ctl (see linc energy) to create cleaner synthetic diesel fuels for transportation and power stations - at sub $50 a barrel.  right now there only is a real 'peak' in one thing - paranoid bullsh*zer !

Mon, 02/28/2011 - 08:37 | 1003437 ageofreason
ageofreason's picture

Rumor has it Great Britain plans to put a carbon tax on Iceland's an effort to help pay for new snow shovels...

Mon, 02/28/2011 - 08:41 | 1003440 overmedicatedun...
overmedicatedundersexed's picture

the mafia is modeled after the Governments of the world, except without the false pretense.

Taxes are extortion if you follow the premise.

Mon, 02/28/2011 - 08:46 | 1003453 Lone Mad Minute...
Lone Mad Minute Medic's picture

The problem is government. Their only job is to sit around and find ways to squeeze money out of people, so they can have the rich and famous life style and benifits. And if you think they give one rat's ass about you, outside of what they can take from you, then I got a bridge to sell you. You've got to keep the masses ignorant and gullible.

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