Cap-and-Trade Is Back

On Wednesday, Senators John Kerry (D-MA) and Joe Lieberman (I-CT) plan to introduce legislation designed to inflate the cost of energy, strain family budgets, and decimate America's manufacturing sector -- all in the name of supposedly saving the climate.

Kerry and Lieberman have been revamping legislation that narrowly passed the House of Representatives last year. The House bill imposes oppressive limits on carbon dioxide (CO2) emissions and establishes a complex cap-and-trade scheme in which the federal government determines how much CO2 a business may emit. If a business exceeds its allowance, it may purchase additional "carbon credits" from an exchange, where the credits will be traded like a commodity. Rules for the exchange of carbon credits, including the trading of carbon derivatives, are addressed in the House bill, and my sources tell me that the Senate version will include these same stratagems.

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