Danny Newton

Is Inflation a Fact… Or Just an Opinion? Part II

I am trying to imagine what will happen when the government gives away Cap and Trade allowances and then begins selling them after an auction finally determines the real price. If you didn't give away part of the bank to all the players, you could not play Monopoly.

Lets say the allowances were Confederate Money and suddenly they became worth something. The money supply should suddenly spike after the auctions. I think this would be a good time to get into the carbon sequestration business. Selling allowances would be a great business if you were set up in Mexico or China where buying the allowances was not required. A utility with a fresh pile of free allowances might consider going out of business just to liquidate the allowances after they have an established value and turn them into real money. Maybe Obama will make executives take their bonuses as Cap and Trade Allowances?