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The High Cost of Cap and Trade • DHS: Everyone’s a Threat • Pyramid Schemes Put in Perspective
                                                                                     May 11, 2009




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Vol. 25, No. 10                                           May 11, 2009
                                                                                10




                                                                                                                                         Design by Joseph W. Kelly; photo: ©iStockphoto.com
Cover Story
    TraNsaTlaNTic UNioN
10 Unattractive Union
    by James Perloff — It is now clear that European nations were
    deceived into joining an economic union that became a political
    union, yet our leaders still seek a similar economic union with the EU.



FeatureS                                                                        17                                    21
    ENErgy
17 The High cost of cap and Trade
    by Warren Mass — Cap-and-trade programs to control carbon-
    dioxide emissions will further damage the economy.




                                                                                                          AP Images




                                                                                                                                         AP Images
    EcoNoMy
21 cancerous growth of government
    by Alex Newman — The private sector struggles while big                     24
    government grows even larger.

    HoMElaNd sEcUriTy
24 Everyone’s a Threat
    by William F. Jasper — Obama’s Department of Homeland Security
    and federal-state “Fusion Centers” target millions of Americans.

    ProfilE
28 Pyramid schemes Put in Perspective



                                                                                                                                         AP Images
    by Charles Scaliger — Kreuger and Madoff were caught doing what
    governments do as a matter of course through central banking.

    HisTory — PasT aNd PErsPEcTiVE                                              28
34 lessons of the Weimar republic
    by Michael E. Telzrow — Hyperinflation easily leads to loss of liberty.

    THE lasT Word
44 obama’s counterproductive Plan
                                                                                                                                         AP Images




    by John F. McManus


                                                                                34
DepartmentS
                                                                                                                                         German Federal Archive




  5 letters to the Editor          32 The goodness of america
  6 inside Track                   40 Exercising the right
  9 QuickQuotes                    41 correction, Please!

                                                                              coVEr Design by Joseph W. Kelly; photo: ©iStockphoto.com
73013
LETTERS TO THE EDITOR
                    Publisher
                 John F. McManus

                      Editor                            construing the constitution                        reverted back to his true Northeastern
                    Gary Benoit                         In “Dangers of ‘Judicial Supremacy’ ”              thinking. The next week on ABC News, he
                   Senior Editor                        (March 2), Edwin Vieira, Jr. claims that ju-       agreed with Maxine Waters on “bank nation-
                  William F. Jasper                     dicial review — the power of the Supreme           alization.” Maxine and Graham represent
                                                        Court to strike down congressional and state       conservatives? Is Graham’s staff “laughing
                 Associate Editor
                  Kurt Williamsen                       laws it deems “unconstitutional” — is not          out loud” to think that The New AmericAN
                                                        only “legitimate,” but also a practical neces-     magazine put a conservative slant on him?
                   Contributors                         sity, as the court must often “construe” the          If you want to see “conservative” in
                Dennis J. Behreandt
              Christopher S. Bentley                    Constitution in the course of deciding what        thought and action, follow South Carolina’s
                 Steven J. DuBord                       the Constitution describes as “Cases” and          Senator Jim DeMint. He does well represent-
                   Selwyn Duke                          “Controversies” that come before it. How-          ing South Carolina and the Constitution.
                   Jodie Gilmore
                                                        ever, judicial review is neither stated nor im-                              ThomAs PlowdeN
             Gregory A. Hession, J.D.
                    Ed Hiserodt                         plied in the Constitution, but was simply as-                                  South Carolina
                  William P. Hoar                       sumed by the falsely brilliant John Marshall
                 R. Cort Kirkwood                       in the specious Marbury v. Madison case            The New AmericAN did not claim Lindsey
                   Warren Mass
             Llewellyn H. Rockwell, Jr.
                                                        (1803). The sole function of the appellate         Graham (R-S.C.) was either “conservative”
                    Alan Scholl                         jurisdiction of the Supreme Court is to ad-        or liberal. We merely repeated an interest-
                    Ann Shibler                         judicate on the basis of the laws in the case.     ing quote he made. We rate how every mem-
                   Liana Stanley                        The “construing” of the Constitution need          ber of the House and Senate votes on key
                 Michael E. Telzrow
               Joe Wolverton II, J.D.                   not and should not enter into it at all. Indeed,   issues in our “Freedom Index,” a congres-
                                                        judicial review has gradually led to the very      sional scorecard based on the Constitution.
               Editorial Assistant                      judicial supremacy Vieira impugns in his           Senator Graham’s cumulative FI rating for
               Denise L. Behreandt
                                                        article. This is the view of Thomas Higgins        the 110th Congress (2007-2008) was 53
                   Art Director                         in his classic Judicial Review Unmasked, as        percent. — Ed.
                  Joseph W. Kelly                       reviewed by the late Medford Evans (Ameri-
         Desktop Publishing Specialist                  can Opinion, November 1981).
               Steven J. DuBord                                                            Tim Keller      Proper Parlance
                     Research                                                   Watertown, New York        In a “Letter to the Editor” published in the
                  Brian T. Farmer                                                                          April 13 issue of The New AmericAN, Mr.
                  Bonnie M. Gillis                                                                         Losch objects to the reference of “America’s
                   Wayne Olson                          Political Posturing                                Judeo-Christian heritage.” Yes, America was
                     Marketing                          Many times I’ve had the urge to fire off a         established as a Christian nation, to which
                   Larry Greenley                       letter to the editor, but only once have I done    there is no argument from me. But to attempt
                 Public Relations                       so, until now. In the March 2 edition’s Quick      to discredit the Judeo-Christian heritage is
                    Bill Hahn                           Quotes, compiled by John F. McManus,               to be intelligently ignorant of those leaders
                                                        there is a picture and quote by South Caro-        who created our nation. History reminds us
             Advertising/Circulation
                 Julie DuFrane                          lina Senator Lindsey Graham. Criticizing           that these men were very well versed in the
                                                        Obama’s stimulus package, Graham says, “If         Old Testament. Therefore, the use of the
                                                        this is change we can believe in, America’s        phrase “Judeo-Christian” is very much in
                                                        best days are behind her.” Oh, is Graham           order in describing America’s heritage. The
                                                        suddenly a conservative?                           use of the Ten Commandments by our Chris-
                                                           Yes, we in South Carolina have read or          tian folks is another example of the Judeo
      Printed in the U.S.A. • ISSN 0885-6540            heard of Graham’s pontifications, but it was       background to our way of life, even though
       P.O. Box 8040 • Appleton, WI 54912
       920-749-3784 • 920-749-3785 (fax)                all a ploy by him to appeal to conservatives.      the Christian version changed the wording of
            www.thenewamerican.com                      McManus took the bait! The stimulus pack-          the sixth commandment to read, “Thou shalt
          editorial@thenewamerican.com
                                                        age already had the votes to pass, so there        not kill.” The Old Testament, Exodus 20:13,
   Rates are $39 per year (Hawaii and Canada,           was “no risk” to Graham taking the conser-         reads, “Thou shalt not murder.”
   add $9; foreign, add $27) or $22 for six months
   (Hawaii and Canada, add $4.50; foreign, add          vative view.                                                                  dAvid eiseNberg
   $13.50). Copyright ©2009 by American Opin-                                       Quickly, Graham                                    Tucson, Arizona
   ion Publishing, Inc. Periodicals postage paid at
   Appleton, WI and additional mailing offices. Post-
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   AmericAN, P.O. Box 8040, Appleton, WI 54912.
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                      The New AmericAN is pub-
                      lished biweekly by Ameri-                                 ➧ Additional copies of this issue of The New AmericAN are
                      can Opinion Publishing                                    available at quantity-discount prices. To place your order, visit
   Inc., a wholly owned subsidiary of The John
   Birch Society.
                                                                                www.shopjbs.org or see the card between pages 38-39.



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Inside Track
Piracy solution: letters of Marque and reprisal
Is there another alternative to paying tribute to Somali pirates,      are spending in the ongoing War on Terror. When dealing with
other than sending a huge naval expedition force to rout the pi-       elusive, non-state actors like pirates and terrorists, Ron Paul’s ap-
rates out of their lairs? Congressman Ron Paul (R-Texas) believes      proach would seem to make much more sense than current poli-
the Constitution’s long-neglected “marque and reprisal” provi-         cies. There are very likely plenty of Special Ops/Special Forces
sion may offer a viable option. Article I, Section 8 of the Consti-    operators who are ready, able, and willing to have a go at the
tution states: “The Congress shall have power … To define and          Somali pirates.
punish piracies and felonies committed on the high seas, … To
declare war, grant letters of marque and reprisal, and make rules                                The guided-missile destroyer USS Bainbridge
concerning captures on land and water.”                                                          tows the lifeboat from the Maersk Alabama to
   Throughout history, privateers have played an important role                                  the amphibious assault ship USS Boxer. Three
in combating piracy, and there’s good reason to think they could                                 Navy vessels were used in this rescue.
do so again. As in the early years of our nation, Congress could
issue letters of marque and reprisal authorizing private parties
— individuals or corporations — to go after pirates and/or terror-
ists. Rep. Paul made the same proposal in 2001, introducing the
“Marque and Reprisal Act of 2001” to target Osama bin Laden
and other terrorists involved in the 9/11 terror attacks.
   Placing bounties on the heads of villains would cost only a
few tens of millions of dollars, versus the hundreds of billions we    news.navy.mil




globalist Piracy solution: Empower the UN
Our globalist-minded policy elites have the solution for piracy:       option provided in the U.S. Constitution of granting letters of
more power for the United Nations. Ratification of the UN Law          marque and reprisal to private actors to pursue pirates.
of the Sea Treaty (LOST) is a “top priority” for the new Obama            The UN LOST would affect much more than our policies
administration, according to Secretary of State Hillary Clinton.       toward pirates. It would dangerously undermine national sover-
Articles 100-107 and Article 110 of the UN Law of the Sea Treaty       eignty and transfer vast new powers to the United Nations to
deal with piracy. However, ratification of LOST would greatly          control and/or regulate virtually all human activity on, over, or
hamper U.S. ability to deal with pirates, as it would restrict hot     under the oceans, including the seabed, coastal areas, and inland
pursuit in territorial waters, pursuit on land, and interdicting and   waterways (rivers, streams, and lakes) that empty into the oceans.
boarding pirate ships on the high seas, and it would prohibit the      (See “LOST: The Law of the Sea Treaty” in our March 2 issue.)




obama: Hero or Villain in Pirate rescue saga?
President Obama scored major political points for the successful          The critique, which claims to be based on conversations with
rescue of Captain Richard Phillips from his Somali pirate captors.     Navy SEALs, notes: “Philips threw himself off of his lifeboat
Media headlines hailed his “decisive leadership” in his baptism        prison, enabling Navy shooters onboard the destroyer a clear shot
under fire. However, scuttlebutt from the Navy community claims        at his captors — and none was taken. The guidance from National
that the rescue succeeded in spite of Obama’s indecisiveness and       Command Authority — the president of the United States, Ba-
interference, not because of his leadership. A harsh critique of       rack Obama — had been clear: a peaceful solution was the only
the standoff by an anonymous Navy veteran that is circulating          acceptable outcome to this standoff unless the hostage’s life was
widely claims that Team Obama attempted to micromanage the             in clear, extreme danger.” The critique cites a litany of specific
situation, overruling the on-scene commander and imposing ri-          interferences that allegedly prolonged the standoff for days and
diculous rules of engagement that repeatedly prevented the Navy        endangered the life of Capt. Phillips.
SEAL shooters from taking out the pirates.                                A Special Forces veteran contacted by The New AmericAN
   “What should have been a standoff lasting only hours — as           said he “couldn’t vouch for all the specifics in the critique,” but
long as it took the USS Bainbridge and its team of NSWC [Naval         that all the main points “appeared to be valid on the face of it.”
Surface Warfare Center] operators to steam to the location — be-       The most obvious fact, he noted, was that when Capt. Phillips
came an embarrassing four day and counting standoff between a          heroically jumped into the sea, “the SEALs would have shot
ragtag handful of criminals with rifles and a U.S. Navy warship,”      the pirates or the Bainbridge would have blown them out of the
the critique says.                                                     water,” except for being countermanded by Obama.


6                                                                                                     THE NEW AMERICAN • MAy 11, 2009
“Efficient” socialism is Not the answer
                                                                                          ficer … will work to streamline processes, cut costs, and find best
                                                                                          practices throughout our government”;
                                                                                             • Aneesh Chopra, who in his role “as America’s Chief Tech-
                                                                                          nology Officer … will promote technological innovation to help
                                                                                          achieve our most urgent priorities — from creating jobs and re-
                                                                                          ducing health care costs to keeping our nation secure”; and
                                                                                             • Vivek Kundra, who as Chief Information Officer “is respon-
                                                                                          sible for setting technology policy across the government, and
                                                                                          using technology to improve security, ensure transparency, and
                                                                                          lower costs.”
White House photo




                                                                                             But can these experts really help solve our fiscal and economic
                                                                                          woes? The fact that Obama himself has not demonstrated fiscal
                                                                                          frugality as either a senator or president does not give cause for
                                                                                          hope. In the U.S. Senate, for instance, he voted for creating the
                                                                                          $700 billion TARP fund, thereby helping to create the projected
                    President Barack Obama said in his April 18 weekly address that       deficit of over $1 trillion he inherited for the current fiscal year.
                    we can “get our deficits under control and move from recovery         Then as president he lobbied for the $787 billion “stimulus” leg-
                    to prosperity” by getting rid of “dozens of government programs       islation and proposed a budget forecasting a $1.75 trillion deficit
                    shown to be wasteful or ineffective” and, in general, making gov-     for the current fiscal year. His budget also called for spending
                    ernment more “efficient” and “accountable.” He also said that he      $3.9 trillion this fiscal year and spending $3.6 trillion next year
                    has “assembled a team of management, technology, and budget           as compared to $3.0 trillion for fiscal 2008.
                    experts to guide us in this work.”                                       President Obama is advocating more government, not less. He
                       Obama specifically pointed to the following experts:               wants to make the socialism he advocates more efficient, but ef-
                       • Jeffrey Zients, who “as the first ever Chief Performance Of-     ficient socialism is not the answer.




                    The EPa Proposes New regulations to control co2 Emissions
                    The Environmental Protection Agency on April 17 proposed              from automobiles and power plants is definitely on the regula-
                    new regulations to control carbon dioxide (CO2) and five other        tion block. The first step toward costly and far-reaching regula-
                    “greenhouse gases” as “pollutants” under section 202(a) of the        tions is that the EPA establish carbon dioxide as a regulatory
                    Clean Air Act. While not mentioning what aspects of carbon-           “pollutant,” even though all green plants need carbon dioxide
                    dioxide emissions will be regulated, the carbon dioxide emitted       for photosynthesis and all animals exhale carbon dioxide.




                    “Mexico as the ‘Pier,’ arizona as the ‘docks’ ”
                    “Mexico as the ‘pier,’ Arizona as the ‘docks’ ” — meaning that           Therein lies the rub. While Munger and ImagineArizona por-
                    Mexico serves as the initial port of entry while Arizona supplies     tray only the benefits increased international trade would bring to
                    the warehousing and transportation facilities — is the vision of      Arizona, they are not considering how the U.S. economy would
                    John Munger, chairman of the newly formed political action com-       be harmed by increasing the flood of cheaply made foreign prod-
                    mittee ImagineArizona.                                                ucts that no American company can afford to compete with. Also,
                       The Arizona Daily Star spoke with Munger and reported on           this close cooperation between Arizona and Mexico will only
                    April 10 that his goal is to have Arizona “encourage Mexico to        serve to strengthen the move toward hemispheric integration that
                    build a major deep-water port on the country’s northern west          President George W. Bush began with his Security and Prosperity
                    coast,” probably “near Guaymas, about 250 miles south of Ari-         Partnership agreement with Canada and Mexico.
                    zona in Sonora.” According to the Daily Star, Munger sees that
                    the “shipping ports in Los Angeles and San Diego are near ca-
                    pacity at a time of growing Asian markets.” The ImagineArizona
                    website calls this an “opportunity” for Arizona to “become a criti-
                    cally important and large part of a major international sea port
                    serving shipping from all parts of Asia, including China, Japan
                    and Korea.”


                     www.TheNewAmerican.com                                                                                                                  7
Inside Track
            Hundreds of Thousands attend Tax day Tea Parties
            On April 15, the deadline for U.S. taxpayers to mail their income
            tax returns, hundreds of thousands of Americans from coast to
            coast participated in approximately 2,000 nationally inspired but
            locally organized “Tea Party” protests. Fox News featured live
            TV broadcasts from four cities — San Antonio, Sacramento, At-
            lanta, and Washington, D.C. — featuring Fox personalities Glenn
            Beck, Neil Cavuto, Sean Hannity, and Greta Van Susteren.
               Tea Party participants and their signs reflected a variety of
            ideological outlooks ranging from constitutionalist and libertar-
            ian to populist and neoconservative. The New York Times reported
            that in downtown Houston, a crowd of 2,000 filled the Jesse H.
            Jones Plaza and that, among them, were some who wanted Texas
            to secede. The Times noted that the tax protesters were joined
            by “anti-abortion activists, Libertarians, and fiscally conservative




                                                                                                                                                       AP Images
            Republicans.” Amidst a sea of American flags, hand-painted signs
            bore messages such as: “Abolish the I.R.S.,” “Less Government          Washington, D.C.
            More Free Enterprise,” “We Miss Reagan,” and “Honk if You Are
            Upset About Your Tax Dollars Being Spent on Illegal Aliens.”           ous, with many finding out about and promoting various events
               The “Don’t Tread on Me” Revolutionary War-era flag was              through the Internet and social networking.
            prominent at a number of the Tea Party rallies (including the one         Newt Gingrich, who addressed a Tea Party rally in New York
            in Appleton, Wisconsin, where The New AmericAN is located),            City, was the most prominent big-name neoconservative politi-
            as were signs to end the Federal Reserve.                              cian who was heavily involved in promoting the April 15 events.
               The event generally credited with inspiring the Tea Party move-     The participation of establishment GOP politicians like Gingrich
            ment was a February 19, 2009 broadcast from the floor of the           in a movement that’s also populated by Ron Paul Republicans
            Chicago Mercantile Exchange by CNBC financial commentator              suggests that they view the movement as an opportunity to posi-
            Rick Santelli. During his broadcast, Santelli criticized the Obama     tion themselves as anti-big government, garner support, and (in
            administration’s plan to use federal funds to refinance troubled       general) further their political ambitions. It does not mean that
            mortgages as “promoting bad behavior,” and he suggested the            they are suddenly willing to abandon their neoconservatism in
            idea of staging a “Chicago Tea Party.” Almost immediately after-       favor of strict adherence to the Constitution.
            wards, websites began to spring up promoting the idea and a new           Veteran readers of The New AmericAN know about Gingrich’s
            movement began. The clip of Santelli’s impassioned outburst has        key role in placing the United States under the jurisdiction of
            been viewed on YouTube more than a million times.                      the World Trade Organization and NAFTA, among other inter-
               An excellent coordinated effort was provided to event organiz-      nationalist positions he has taken. However, the vast majority of
            ers through websites created by sponsoring organizations such          Americans who attended the Tax Day Tea Parties were undoubt-
            as TaxDayTeaParty.com, the American Family Association, Top            edly entirely innocent of such knowledge.
            Conservatives on Twitter (TCOT), Smart Girl Politics, and the             Nonetheless, the Tax Day Tea Parties provided a very welcome
            DontGo Movement. The new Glenn Beck 9-12 Project has also              venue for hundreds of thousands of Americans to register their
            promoted the Tax Day Tea Parties on its website. Yet once the          opposition to the trillion-dollar bailouts, corporate takeovers,
            movement took off, local events were more-or-less spontane-            stimulus packages, inflationary deficit spending, etc. n
AP Images




                                                                                                                                                       AP Images




            Lansing, Michigan                                                      Olympia, Washington


            8                                                                                                   THE NEW AMERICAN • MAy 11, 2009
QuickQuotes
                                     Ruth
                                     Ginsburg
                                                     one supreme court Justice likes the idea
                                                     of relying on foreign law
AP Images




                                                     “Why shouldn’t we look to the wisdom of a judge from abroad
                                                     with at least as much ease as we would read a law review article
                                                     written by a professor? I frankly don’t understand all the brou-
            haha lately from Congress and even from some of my colleagues about referring to foreign law.”
            Speaking at a symposium held at Ohio State University, Justice Ruth Bader Ginsburg responded in
            part to criticism of her view given by Justices Roberts, Thomas, Scalia, and Alito.

            chief Justice opposes Use of foreign law
            in rendering decisions
            “If we’re relying on a decision from a German judge about what our
            Constitution means, no president accountable to the people appointed
                                                                                            John
            that judge and no Senate accountable to the people confirmed that               Roberts
            judge. And yet he’s playing a role in shaping the law that binds the
            people in this country.”
            Having taken this position during his confirmation hearing, Chief Jus-




                                                                                                                          AP Images
            tice John Roberts has never backed away from his belief that foreign
            law should not be relied upon in issuing decisions.

            clever labeling Hides What something really is
            “There’s a great company called I Can’t Believe It’s Not Butter. At least they have the decency to tell
            you it’s not butter. Now we have something called ‘credit default swaps,’ because if they called it I Can’t
            Believe It’s Not Insurance, maybe nobody would buy it.”
            Congressman Gary Ackerman (D-N.Y.) made his point during hearings with financial regulators.

            scoffing at the reputed Worth of “Public opinion”
            “Public opinion may be defined as what people think other people are thinking.”
            In his inimitable way, columnist Joseph Sobran places little value on oft-cited public opinion.

            Bonuses for fannie and freddie Employees angers iowa senator
            “It’s an insult that these bonuses were made with an infusion of cash from the taxpayers. It’s hard to
            see any common sense in management decisions that award hundreds of millions in bonuses when their
            organizations lost more than $100 billion in a year.”
            Hoping to retain many employees, the quasi-government companies known as Fannie and Freddie are
            awarding 7,600 of their personnel with more than $210 million in bonuses after receiving a $15 billion
            bailout from the government. Senator Charles Grassley (R-Iowa) notes that four of the top executives
            of these firms will each receive at least $1 million in hopes of retaining them.

                                                      Treasury secretary Not Evasive about Taking over Banks
                                                      “If in the future, banks need exceptional assistance in order to
                                                      get through this, then we will make sure that assistance comes.
                                                      Where that requires a change in management and the board, then
                                    Timothy           we will do that.”
                                    Geithner          Interviewed on television, Secretary of the Treasury Timothy
                                                      Geithner cited the government’s action that has provided bail-
                                                      outs while forcing out the top executives of AIG, Fannie Mae, and
AP Images




                                                      Freddie Mac. He obviously does not believe that failing entities
                                                      should be allowed to fail.

            Professor Protests obama Presence at Notre dame commencement
            “The invitation to Mr. Obama is a deliberate thumbing of the collective nose at the Roman Catholic
            Church.”
            Philosophy professor Ralph McInerny, one of the more prominent instructors at Notre Dame, believes
            the school’s invitation to the president to deliver the commencement address and receive an honorary
            degree should be rescinded. n
                                                                              — comPiled by JohN F. mcmANus


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TransaTlanTic Union




Unattractive
               UNION

                                                                                           It is now clear that European
                                                                                           nations were deceived into joining
                                                                                           an economic union that became
                                                                                           a political union, yet our leaders
                                                                                           still seek a similar economic union
                                                                                           with the EU.




                by James Perloff                       ed States with Mexico and Canada. The        curity and Prosperity Partnership” (SPP)
                                                       foundation for such a union was initi-       that President George W. Bush, Mexican


T
       he New AmericAN has devoted                     ated with the North American Free Trade      President Vicente Fox, and Canadian
       extensive coverage to the risks of              Agreement, or NAFTA, which went into         Prime Minister Paul Martin launched at
       what critics have dubbed a North                effect on January 1, 1994. Like the older    their Waco, Texas, meeting on March 23,
American Union (NAU), in reference to                  European Common Market that eventu-          2005.*
the incremental integration of the Unit-               ally morphed into the EU, NAFTA, a sup-         Few Americans are aware of the SPP
                                                       posed “free trade” arrangement, provided
James Perloff is the author of The Shadows of Power:   the supranational architecture for future    * For background, see our special October 15, 2007
The Council on Foreign Relations and the American      integration.                                   “Merger in the Making” issue. The issue is avail-
Decline and Tornado in a Junkyard: The Relentless         This process of North American integra-     able online as a PDF: http://www.thenewamerican
Myth of Darwinism.                                     tion was later advanced through the “Se-       .com/files/MergerInTheMaking.pdf


10                                                                                                          THE NEW AMERICAN • MAy 11, 2009
coming together: In 2008, the leaders of Mexico, the United States, and Canada (Felipe Calderon, George W. Bush, and Stephen Harper)
               met to further empower the Security and Prosperity Partnership of North America (SPP). The SPP builds on the North American Free Trade
AP Images




               Agreement to integrate the three countries’ military and security functions, populations, and laws — similar to the EU.


            arrangement because the major media ig-        considered by many to have fathered the         These sentiments were quietly certified
            nored it — except for CNN’s Lou Dobbs,         concepts that resulted in the SPP. But in November of that year when the U.S.
            who said of the Waco meeting: “President       writing in the July/August 2008 issue of House of Representatives passed House
            Bush signed a formal agreement that will       Foreign Affairs (the CFR’s journal), Pastor Resolution 390, introduced by Nebraska
            end the United States as we know it, and       registered disappointment with its prog- Republican Doug Bereuter. The resolution
            he took the step without approval from ei-     ress. Though continuing to advocate conti- declared that the “United States and the
            ther the U.S. Congress or the people of the    nental unification, he lamented that “North European community are aware of their
            United States.”                                America’s experiment in integration has shared responsibility, not only to further
               It soon became apparent that the plan       stalled.... The April summit meeting [be- transatlantic security, but to address other
            would lead to eventual political consolida-    tween U.S., Mexican, and Canadian heads common interests such as environmental
            tion of the countries, modeled on the Euro-    of state] was probably the last hurrah for protection, poverty reduction, combating
            pean Union. It would destroy U.S. sover-       the SPP. The strategy of acting on techni- international crime and promoting human
            eignty, nullify the Constitution, flood our    cal issues in an incremental, bureaucratic rights, and to work together to meet those
            nation with cheap, job-destroying imports      way, and of keeping the issues away from transnational challenges which affect the
            via a NAFTA “Super Highway,” and allow         public view, has generated more suspicion well-being of all.” It further stated that
            uncontrolled immigration by erasing our        than accomplishments. The new president “the partnership should be expanded pro-
            border with Mexico.                            will probably discard the SPP.”               gressively from a transatlantic community
               Thanks to the vigilance of concerned           But like a running back who, about to of values to an effective transatlantic com-
            activists, the alarm bells reached the halls   be tackled, laterals the football to a team- munity of action.”
            of Congress, and in 2007 Rep. Virgil           mate, the establishment has at least for the    On the other side of the ocean, the Euro-
            Goode (R-Va.) introduced House Concur-         time being shifted to another scheme: ce- pean Parliament passed resolutions in May
            rent Resolution 40, which resolved that        menting the United States to the European 2004 and January 2005 advocating the es-
                                                           Union in what is called the “Transatlantic tablishment of a “transatlantic market.”
                 (1) the United States should not          Partnership.”                                   These intentions became actuated at a
              engage in the construction of a North           Early rumblings of this
              American Free Trade Agreement                partnership came in 2003
              (NAFTA) Superhighway System;                 when the U.S. Department             At a summit on April 30, 2007, President
              [and]                                        of Commerce stated in a
                 (2) the United States should not          press release: “Commerce
                                                                                                Bush announced the signing of a new
              allow the Security and Prosperity            Secretary Don Evans and              agreement whose expressed purpose is
              Partnership (SPP) to implement fur-          his European Union coun-
              ther regulations that would create a         terpart, Commissioner Erkki
                                                                                                to “strengthen transatlantic economic
              North American Union with Mexico             Liikanen, reaffirmed the im-         integration.” Without the consent of
              and Canada.                                  portance of the transatlantic
                                                                                                Congress or a mandate from the American
                                                           economic and commercial
            Robert Pastor of the ultra-establishment       partnership at a meeting last        people, this was an unconstitutional act.
            Council on Foreign Relations (CFR) is          night in Washington, D.C.”


            www.TheNewAmerican.com                                                                                                                 11
TransaTlanTic Union




            Progression of the plan: Former President George W. Bush went to a G20 Summit on Financial Markets and the World Economy in 2008.
AP Images




            Obama was at another G20 financial summit in April. Both presidents were in favor of a new global financial system. The meeting Obama
            attended ended with a tentative agreement to initiate such a system.



            White House summit on April 30, 2007.     Entirely aside from the fact that Presi-            dimentary world government in the form
            Standing beside Angela Merkel, president
                                                   dent Bush’s committing the United States               of the now-defunct League of Nations.
            of the European Council, and José Manuel
                                                   to this arrangement with the EU, without                  World government is the pathway to
            Barroso, president of the European Com-the consent of Congress or a mandate                   tyranny because, by eliminating the sov-
            mission, President Bush announced the  from the American people, was an uncon-                ereignty of nations, it would concentrate
            signing of a new agreement whose ex-   stitutional act, one must understand the               all of the world’s political power in a
                                                   background that has led to this develop-
            pressed purpose is to “strengthen transat-                                                    single regime — a frightening concept to
                                                   ment, which is only the latest in a series
            lantic economic integration.” Specifically,                                                   contemplate.
                                                   of events.
            the pact called for “joint work in the areas                                                     Because nation-states have tradition-
            of regulatory cooperation, financial mar- The governments of Europe and the                   ally, and rightfully, been suspicious of
                                                   United States are dominated by an “estab-
            kets, trade and transport security, innova-                                                   ceding themselves to a world government,
                                                   lishment” that intertwines multinational
            tion and technological development, intel-                                                    the establishment has adopted the tac-
                                                   corporations, think tanks, central banks,
            lectual property rights, energy, investment,                                                  tic of grouping countries under regional
            competition, services, and government  powerful foundations, and the major mass               governments as a steppingstone to global
                                                   media. In the United States, the Council on
            procurement,” as well as the “interopera-                                                     dominion. A Frenchman or German, in
                                                   Foreign Relations is the establishment’s
            bility of electronic health record systems,”                                                  other words, might feel more comfortable
                                                   chief bridge of influence to the federal
            “customs cooperation,” and other steps to-                                                    merged in a European federation than one
            ward economic integration.             government, having dominated the cabi-                 that included Asia or Africa.
                                                   nets of every president since Franklin D.                 Soviet dictator Joseph Stalin understood
            The Pattern                            Roosevelt. The CFR has counterpart or-                 this strategy well. He said: “Populations
            Some may ask: “What is wrong with eco- ganizations in countries throughout the                will more readily abandon their national
            nomic integration? What’s the big deal world. Coordination of policy between                  loyalties to a vague regional loyalty than
            about cooperation? Isn’t it xenophobic establishment figures from different coun-             they will for a world authority. Later, the
            paranoia to oppose it?”                tries has taken place through such venues              regionals can be brought all the way into a
                                                            as the annual Bildergberger con-              single world dictatorship.”
                                                            ferences, begun in 1954, and the                 In a modern context, Zbigniew Brze­
            The push for the Transatlantic                  meetings of the Trilateral Com-               zinski said: “We cannot leap into world
                                                            mission, founded in 1973 by                   government in one quick step. The precon-
            Partnership is a well-coordinated               Zbigniew Brzezinski and CFR                   dition for genuine globalization is progres-
            one. At the hub of this movement is             Chairman David Rockefeller. The               sive regionalization.” Both the European
                                                            goal of the CFR and its sister or-            Union and the incipient North American
            a powerful but largely unpublicized             ganizations is world government;              Union are, of course, regional bodies.
            institution called the Transatlantic            in fact, the CFR was founded for                 However, many nations have been re-
                                                            that express purpose in 1921 after            luctant even to join regional organizations.
            Policy Network (TPN), headquartered
                                                            the U.S. Senate failed to ratify the          The bait used to lure them in has been the
            in Washington and Brussels.                     Versailles Treaty, which would                alleged prosperity of trade treaties. These,
                                                            have committed us to joining a ru-            while initially disguised as economic ar-


            12                                                                                                   THE NEW AMERICAN • MAy 11, 2009
rangements, cast the die for inevitable po-   nated changes in laws. In Europe, laws         cans should begin considering formation
                      litical consolidation.                        are usually made by parliaments; thus the      of a continental parliament.” (Emphasis
                          The European Union is a case in point.    Common Market led to the formation of          added.)
                      The EU actually started in 1950 as the six-   the European Parliament in 1979, and the          This view was echoed by University of
                      nation European Coal and Steel Commu-         European Economic Community simply             Nevada economics professor Glen Atkin-
                      nity. In 1957, this evolved into the Com-     dropped the word “Economic” — which            son in his paper “Regional Integration in
                      mon Market, which was sold to Europeans       had only been a pretense — from its            the Emerging Global Economy: The Case
                      as a purely economic structure that would     name. Then came the European Union, in         of NAFTA,” published in the Social Sci-
                      enhance prosperity; its official name was     which sovereignties have been drowned:         ence Journal. He wrote, “The stage of
                      the European Economic Community.              national parliaments find themselves in-       economic union requires a high degree of
                          The chief architect of the Common         creasingly subservient to the dictates of      coordination or even unification of poli-
                      Market was the shadowy Jean Monnet,           the EU, as they see their laws, currencies,    cies. This sets the foundation for political
                      whom Time magazine called “the Father of      court systems, militaries, etc., gradually     union.” (Emphasis added.)
                      Europe.” Monnet’s deceptive strategy was      consolidated.
                      explained by British Conservative Adrian         The plans for a North American Union        Bridging the ocean
                      Hilton, who notes that Monnet believed        likewise got their start with an economic      Thus no one should be surprised that the
                                                                    arrangement: NAFTA. Although hyped as          latest thrust toward world government —
                        that Europe should become a federal         a path to “prosperity,” Americans lost mil-    the Transatlantic Partnership — is initially
                        superstate, into which all ancient          lions of jobs as cheap imports flooded the     being foisted on us as an “economic ar-
                        nations would be fused. ‘Fused’ is          country. And our trade deficit soared: in      rangement” (coupled, as was the Security
                        the word he used.... For this to be         1994 (the year we joined NAFTA) it was         and Prosperity Partnership, with assur-
                        achieved without the peoples of Eu-         $75 billion; in 2008 $673 billion. Our trade   ances that consolidation will also provide
                        rope realising what was happening,          deficit with Canada and Mexico went from       protection against terrorism).
                        the plan was to be accomplished in          $9 billion in 1993 to $98 billion by 2003.        As we have noted, President Bush’s
                        successive steps. Each was to be dis-          But adding constitutional insult to this    signed agreement with the EU’s leaders
                        guised as having an economic pur-           injury, NAFTA’s foremost purpose was to        pledged “transatlantic economic integra-
                        pose, but all, taken together, would        lay the groundwork for consolidation. An-      tion.” It established a permanent Trans-
                        inevitably and irreversibly lead to         drew Reding of the World Policy Institute      atlantic Economic Council. And most of
                        federation.                                 wrote: “NAFTA will signal the formation,       the agreement’s provisions — concerning
                                                                    however tentatively, of a new political unit   trade, investment, energy, etc. — are eco-
                      Once nations agree to complex trade           — North America. With economic integra-        nomic in nature.
                      agreements, conflicts naturally arise over    tion will come political integration. By          Based upon the pattern set by the Eu-
                      issues such as prices, tariffs, taxation,     whatever name, this is an incipient form       ropean Union and the SPP, however, it
                      product safety, union relations, etc. Reso-   of international government. Following         is quite logical to conclude that this eco-
                      lution of these conflicts requires coordi-    the lead of the Europeans, North Ameri-        nomic consolidation is only a prelude to
                                                                                                                   intended merger with the EU.
                                                                                                                      Just 12 days before President Bush
                                                                                                                   signed the agreement, British Prime Min-
                                                                                                                   ister Gordon Brown delivered a speech at
                                                                                                                   the John F. Kennedy Presidential Library
                                                                                                                   and Museum in Boston. Ironically, as he
                                                                                                                   stood only 12 miles from where the first
                                                                                                                   shots of the American Revolution were
                                                                                                                   fired, the Briton invoked this quote from
                                                                                                                   John F. Kennedy: “Today, Americans
                                                                                                                   must learn to think intercontinentally.”
                                                                                                                   Continuing, he gushed that “a global so-
                                                                                                                   ciety demands new global agreements and


                                                                                                                   integration by 2015: The EU’s members of
                                                                                                                   parliament voted in March to initiate a new
                                                                                                                   Transatlantic Policy Council “for systemic
European Parliament




                                                                                                                   high-level consultation and coordination in
                                                                                                                   respect of foreign and security policy” with the
                                                                                                                   United States. Its goal is to achieve “economic
                                                                                                                   integration” and a “unified transatlantic market
                                                                                                                   by 2015.”


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TransaTlanTic Union

                                                                                                            lations; the Center for Strategic and In-
                                                                                                            ternational Studies (CSIS); the Atlantic
                                                                                                            Council; the Aspen Institute; the Carnegie
                                                                                                            Endowment for International Peace; and
                                                                                                            the German Marshall Fund of the United
                                                                                                            States. The CFR’s role in advocating re-
                                                                                                            gional alliances and world government is
                                                                                                            well known to many readers of The New
                                                                                                            AmericAN. It is interesting to note the
                                                                                                            statements being made by others listed
                                                                                                            among the “Cooperating Institutions”
                                                                                                            that demonstrate they are moving lock
                                                                                                            step with TPN.
                                                                                                                For example, CSIS, which counts among
                                                                                                            its members such CFR heavyweights as
                                                                                                            Zbigniew Brzezinski, Felix Rohatyn, Har-
                                                                                                            old Brown, and Brent Scowcroft, released
                                                                                                            a report in 2007 called “Towards a Grand
            global cheerleader: U.K. Prime Minister Gordon Brown has been jetting around the world
AP Images




                                                                                                            Strategy for an Uncertain World: Renew-
            in a bid to convince countries to institute world regulations over financial institutions and   ing Transatlantic Partnership.” It said
            functions. The new regulations would be under the control of a global governing body.           that “our long-term vision is for a zone
                                                                                                            of common security and collective action
                                                                                                            from Finland to Alaska.”
            strengthened global institutions to protect          As Dennis Behreandt insightfully noted        In 2009, in its journal Internationale
            and safeguard essential global resources.”        in the May 12, 2008 issue of The New          Politik, the German Council on Foreign
            Phyllis Schlafly counted the word “glob-          AmericAN:                                     Relations published an article by Paul
            al” 69 times in Brown’s speech. Clearly,                                                        Hockenos entitled “Rethinking US-Eu-
            he was softening the American public for             The emphasis placed on “top down”          rope Relations.” It declared: “It must be
            President Bush’s transatlantic agreement.            is not insignificant. As typically used    a partnership of equals across the Atlan-
               Indeed, the push for the Transatlantic            by NGOs, that terminology usually          tic and this will require real compromis-
            Partnership is a well-coordinated one. At            implies that executive-level leaders       es from the United States as well as the
            the hub of this movement is a powerful but           will impose their desires on the citi-     Europeans.”
            largely unpublicized institution called the          zens of a nation, not the other way           In 2007, the U.S.-based Atlantic Council
            Transatlantic Policy Network (TPN), head-            around as envisioned, for instance, by     issued a 35-page report entitled Transatlan-
            quartered in Washington and Brussels.                America’s Founders.                        tic Leadership for a New Global Economy,
               In February 2007, just two months be-                                                        which advocated a “barrier-free ‘Enhanced
            fore the U.S.-EU Summit, TPN publishedIndeed, TPN’s website (www.tpnonline.                     Transatlantic Market.’ ” Among its many
            its white paper Completing the Transat-
                                                  org) lists as its business members a host of              specific recommendations: “The United
            lantic Market, which declared: “It is time
                                                  multinational corporations, such as AIG,                  States and the EU should launch a new,
            for a complementary, top down approachCitigroup, Time Warner, IBM, Merck, GE,                   jointly funded effort to develop future en-
            to transatlantic cooperation through a joint
                                                  and Coca-Cola. Peter Sutherland, the EU                   ergy technologies that will both improve
            commitment by the European Union and  honorary president of TPN, is chairman                    efficiency and reduce global warming, as
            the United States to a roadmap for achiev-
                                                  of both Goldman Sachs International and                   part of the development of a new, post-
            ing a Transatlantic Market by 2015.”  the British Petroleum Company, as well                    Kyoto international consensus.” It calls for
                                                               as former director of the sov-               transformation of the International Energy
                                                               ereignty-sapping World Trade                 Agency (IEA) into “the primary institution
            The once-powerful nations of Europe                Organization.                                for global energy governance,” and a merg-
                                                                  Among the “Cooperating                    er of the World Bank with the IMF. In short,
            are progressively finding themselves               Institutions” listed by TPN are              it wants broad consolidation of power.
            reduced to the status of mere provinces            what we might call a round-up                   The Atlantic Council is an old hand at
                                                               of “the usual suspects” who ad-              the transatlantic game. Officially founded
            of the EU. Should America unite with the           vocate world government over                 in 1961, it grew largely out of the older At-
            EU, we can expect to follow suit, finding          national sovereignty, such as:               lantic Union Committee, whose members
                                                               the Council on Foreign Rela-                 envisioned a U.S.-Europe merger which
            our Constitution scrapped and ourselves
                                                               tions (CFR); RIIA (the CFR’s                 they dubbed “Atlantica.” In the 1960s, the
            little more than a colony of Europe.               British counterpart); the Ger-               council’s lobbying resulted in resolutions
                                                               man Council on Foreign Re-                   being brought before Congress that would


            14                                                                                                     THE NEW AMERICAN • MAy 11, 2009
His mandate: Zbigniew
have laid the groundwork for this merger.                                                              Brzezinski cofounded the
The resolutions were consistently rejected                                                             Trilateral Commission with David
by Congress, but with the further wither-                                                              Rockefeller. The commission is
ing of national sovereignty, the council ap-                                                           dedicated to achieving global
pears ready to renew its merger crusade.                                                               stability through coordinated
                                                                                                       policies amongst developed
                                                                                                       nations. The commission is
Events Propel the Union forward
                                                                                                       regularly accused of undermining
Neither the advent of Barack Obama nor                                                                 individuals’ rights and freedoms
the current financial debacle will slow the                                                            to gain unanimity among the
Transatlantic Partnership, but can be ex-                                                              world’s governments.
pected to accelerate it. During his presi-
dential campaign, Obama named globalist
Zbigniew Brzezinski as one of his top for-
eign policy advisers, calling him “some-
body I have learned an immense amount
from.”
    Following the elections, Nicolas
Sarkozy, president of both France and the
European Council, said that “the European
Union sees in this election the promise of




                                                                                                                                                Newscom
a reinforced transatlantic partnership.”
    In the Spring 2009 issue of Internation-
ale Politik, the German Council on Foreign
Relations published an article called “A        the Transatlantic Partnership. The Brus-            Even the most affluent countries
New Transatlantic Partnership” that actu-       sels Forum — yet another internationalist        will confront shrinking resources.
ally complained of “the bruises that the        tentacle of the transatlantic network —          Each will have to redefine its national
transatlantic partnership suffered during the   recently declared: “Since the beginning          priorities. An international order will
Bush years” and opined that “if Europeans       of the financial crisis in the fall of 2008,     emerge if a system of compatible pri-
could have voted in the 2008 US presiden-       the world economy has deteriorated at an         orities comes into being....
tial election, they would have voted over-      alarming rate.... The U.S. and European             The alternative to a new interna-
whelmingly for Barack Obama.”                   governments must reassess the role of            tional order is chaos.
    Indeed, in April of this year — just a      the transatlantic partnership in the global
little more than two months after his inau-     economy and re-ignite it as the catalyst of    The coordinated voices of many global
guration — Obama traveled to Europe for         global economic recovery.”                     elites, speaking through mass media or-
a series of summit meetings with EU lead-          In the United States, Henry Kissinger       gans owned by the international establish-
ers. Canada is now joining the Transatlan-      has long epitomized the foreign policy es-     ment, give the public an illusion that there
tic Partnership. Canada’s daily Financial       tablishment. He once told Hamilton Fish        is a logical consensus for world govern-
Post reported on March 5, 2009:                 Armstrong, editor of the CFR journal For-      ment, with the Transatlantic Partnership as
                                                eign Affairs, “You invented me,” and be-       its newest cornerstone.
  Canada and the European Union                 fore serving as Richard Nixon’s Secretary         However, like NAFTA and the Europe-
  have agreed to begin free trade ne-           of State, he acted as chief foreign policy     an Union itself, there has never been any
  gotiations.... After months of “scop-         adviser to Nelson Rockefeller, whom he         mandate from the people of the nations for
  ing exercises,” the two parties have          called “the single most influential person     these globalist arrangements.
  come to an agreement on the areas             in my life.”                                      Experience has proven that if America
  they would like to negotiate, includ-            Still a dominant voice in foreign policy,   moves ahead with the Transatlantic Part-
  ing trade in goods, services and in-          Kissinger published an article in the Janu-    nership, the economic alliance will be
  vestment, and have now adjourned              ary 12, 2009 issue of the International        converted incrementally into a political
  to prepare their proposals to take            Herald Tribune entitled “The Chance for        merger. The once-powerful nations of Eu-
  to the negotiating table.... “At long         a New World Order.” He stated:                 rope are progressively finding themselves
  last, Canada is poised to realize the                                                        reduced to the status of mere provinces
  immense potential of a closer trans-            As the new U.S. administration pre-          of the European Union. Should America
  atlantic relationship,” said Thomas             pares to take office amid grave finan-       unite with the EU, we can expect to fol-
  d’Aquino, president of the Canadian             cial and international crises, it may        low suit, find our Constitution scrapped
  Council of Chief Executives.                    seem counterintuitive to argue that the      for international regulation, and ourselves
                                                  very unsettled nature of the interna-        — after over 200 years of the blessings of
The financial meltdown is being used              tional system generates a unique op-         independence — little more than a colony
as a stick to force us eat the “carrot” of        portunity for creative diplomacy....         of Europe. n


www.TheNewAmerican.com                                                                                                                     15
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EnErgy
AP Images




            The High Cost                                                                                futile cause? These protestors participating in
                                                                                                         a walk in South Burlington, Vermont, in 2006
                                                                                                         want humans to “Stop Global Warming.” What




            of cap and Trade
                                                                                                         they may not have considered is that variations
                                                                                                         in the Earth’s temperatures are a natural — not
                                                                                                         a man-made — phenomenon.


                                                                                                         have read any of several well-researched
            Cap-and-trade programs to control carbon-dioxide                                             books* disputing both the severity of glob-
                                                                                                         al warming and the theory that it is caused
            emissions are an unacceptably costly way to deal with the                                    by man’s activities, will not easily accept
            supposed problem of man-made global warming.                                                 the argument that a massive and costly
                                                                                                         government program is needed to prevent
                                                                                                         a catastrophic ecological event.
                          by Warren Mass                   ing to those limits, and then allow firms        To make an informed decision about
                                                           to trade the allowances.”                     whether a cap-and-trade program is advis-


            T
                     he term “cap and trade,” in terms        Aside from telling us how cap-and-trade    able, therefore, requires that several ques-
                     of a plan to reduce carbon-dioxide    programs might operate, the reference to      tions be answered.
                     emissions into the air, is one that   “tightening limits on emissions” gives away
            is heard widely of late as a proposed solu-    the ostensible purpose of these programs:     Is global warming real, or at least real
            tion for the supposed problem of global        to fight that supposed ominous scourge of     enough to be threatening?
            warming. It will be discussed with more        the 21st century, global warming.             This question is best dealt with by refer-
            frequency as cap-and-trade proposals that         Those who have accepted the widely         ring to our February 16 cover story or one
            failed to pass in the last Congress are re-    promulgated theory that the melting of the
            introduced this year. But many people          polar icecaps and rising of the seas is im-   * See, for example, Hot Talk, Cold Science, and Un-
            are still a little hazy about what “cap and    minent may believe that any economic cost       stoppable Global Warming Every 1500 Years, by
            trade” actually means. One succinct ex-        is worth enduring, if only global warm-         Dr. S. Fred Singer; The Politically Incorrect Guide
            planation appeared in an article on the        ing can be forestalled. However, regular        to Global Warming (and Environmentalism) and
            Congressional Budget Office website:           readers of The New AmericAN, especially         Red Hot Lies: How Global Warming Alarmists Use
            “The government would set gradually            those who have read our February 16, 2009       Threats, Fraud, and Deception to Keep You Misin-
            tightening limits on [CO2] emissions,          cover story entitled “Whatever Happened         formed by Christopher C. Horner; and Meltdown,
            issue rights (or allowances) correspond-       to Global Warming?” as well as those who        by Patrick Michaels.


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EnErgy

                                                                       about 95 percent of the earth’s   of the Earth. But the system isn’t so simple.
                                                                       natural greenhouse effect,        If the climate system worked this way, the
            David Sawyer of the Alabama Policy                         whereas carbon dioxide con-       Earth would have reached its maximum
            Institute warned that a cap-and-trade                      tributes most of the remaining    temperature eons ago, and stayed there:
                                                                       5 percent. Global warming         water vapor would have entered the air
            system could more than double electricity
                                                                       projections assume that water     when the oceans were heated by sunlight;
            and natural gas bills for residents.                       vapor will increase along with    the Earth would have warmed somewhat,
            Sawyer noted that putting “a chokehold                     any warming resulting from        leading to more water vapor entering the
                                                                       the increases in carbon diox-     air and more heating of the Earth, followed
            on our economy with the idea of saving                     ide concentrations.”              by more water vapor, and so on.
            the planet is a complete ruse.”                               Dr. Spencer points out
                                                                       that such assumptions are         What is the economic cost of reducing
                                                                       unproven, noting that “there      carbon-dioxide emissions, either by cap
            of the books cited in the footnote. Suffice remain substantial uncertainties in our          and trade or a direct tax?
            it to say that the issue is not as settled as understanding of how the climate system        Whether one accepts the claims that carbon
            many in the media portray it to be.           will respond to increasing concentrations      emissions contribute to global warming, or
                                                          of carbon dioxide and other greenhouse         prefers to give equal weight to contradic-
            What impact, if any, do man-made CO2 gases.” He observes that the natural                    tory evidence, there is no dispute that a cap-
            emissions have on global warming?             greenhouse effect that heats the Earth is      and-trade program would be costly. As to
            In the April 3 issue of the Wall Street Jour- offset by natural cooling processes. “In       how costly, we should consider the article
            nal, deputy editor George Melloan noted other words,” concluded Dr. Spencer,                 “Study the (scary) figures on cap and trade,”
            that, according to “serious scientists,” “the “the natural greenhouse effect cannot          by Rep. Joe Barton (R-Texas) in the Fort
            greenhouse gases are a fundamental part be considered in isolation as a process              Worth Star Telegram for April 11, 2009. In
            of the biosphere, necessary to all life, and warming the earth, without at the same          it Barton noted: “[Cap and trade] is being
            … industrial activity generates less than time accounting for cooling processes              sold as a way to save the planet by taxing
            5% of them, if that.”                         that actually keep the greenhouse effect       ‘emitters,’ but it will kill the economy and
               Furthermore, the theory that CO2 is the from scorching us all.”                           decimate your family’s budget.”
            prime culprit in so-called global warming       Theories on runaway global warming              Barton made the following predictions
            may also be flawed. In the compendium based on CO2 emissions postulate that                  of how cap and trade would affect the U.S.
            Earth Report 2000, Dr. Roy Spencer, se- increases in CO2 will cause some (minor)             economy, citing the National Association
            nior scientist for climate studies at NASA’s heating of the Earth that will in turn cause    of Manufacturers as his principal source:
            Marshall Space Flight Center, noted: “It more water vapor to enter the air from the             • Job losses: 1.8 to 7 million
            is estimated that water vapor accounts for oceans, thereby causing dangerous heating            • Family tax increase: $739 to $6,752
                                                                                                            • Electricity cost increases: 44 to 129
                                                                                                         percent
                                                                                                            • Gasoline price increases: 61 cents to
                                                                                                         $2.53 per gallon
                                                                                                            • Natural gas increases: 108 to 146
                                                                                                         percent
                                                                                                            He added: “While the exact cost in-
                                                                                                         creases may be debatable, experts — in-
                                                                                                         cluding those working at the White House
                                                                                                         — agree that prices will go up.”
                                                                                                            The Huntsville, Alabama, Times for

                                                                                                         sen. John Warner (R-Va.), left, accompanied
                                                                                                         by Sen. Joseph Lieberman (I-Conn.), center,
                                                                                                         and Sen. Barbara Boxer (D-Calif.), right, during
                                                                                                         a 2008 news conference on Capitol Hill to
                                                                                                         discuss the environment and climate change.
                                                                                                         When Lieberman and Warner introduced
                                                                                                         the America’s Climate Security Act of 2007
                                                                                                         (S. 2191) in the last Congress, the Heritage
                                                                                                         Foundation warned: “All such climate change
                                                                                                         measures warrant careful scrutiny, as they
AP Images




                                                                                                         would likely increase energy costs and do
                                                                                                         considerably more economic harm than
                                                                                                         environmental good.”


            18                                                                                                  THE NEW AMERICAN • MAy 11, 2009
House Energy and Commerce Commit-
                                                                                                             tee Chairman Henry A. Waxman (D-Calif.)
                                                                                                             and Rep. Edward J. Markey (D-Mass.),
                                                                                                             chairman of the Energy and Environment
                                                                                                             Subcommittee, released a draft climate
                                                                                                             bill in March that they hope to send to the
                                                                                                             full House by Memorial Day.
                                                                                                                Another bill containing a cap-and-trade
                                                                                                             provision has already been introduced in
                                                                                                             the House. H.R. 1759, the Emission Mi-
                                                                                                             gration Prevention with Long-term Output
                                                                                                             Yields Act, was introduced on March 26
                                                                                                             by representatives Jay Inslee (D-Wash.)
                                                                                                             and Michael Doyle (D-Pa.) and has been
                                                                                                             referred to the House Committee on En-
                                                                                                             ergy and Commerce.
                                                                                                                Perhaps to address concerns voiced by
                                                                                                             opponents of cap-and-trade plans that they




                                                                                                 AP Images
                                                                                                             will damage an already weak U.S. econo-
                                                                                                             my, Joseph Aldy, a special assistant to the
rep. Joe Barton (R-Texas), ranking Republican on the House Energy and Commerce                               president for energy and the environment,
Subcommittee, said that cap and trade “is being sold as a way to save the planet by taxing                   announced on April 8 that a portion of the
‘emitters,’ but it will kill the economy and decimate your family’s budget.”                                 revenue received from any cap-and-trade
                                                                                                             plan must go toward relieving those who
April 14, 2009 ran an article headlined           scrutiny, as they would likely increase en-                end up paying higher energy bills because
“Cap-and-trade will hurt economy, group           ergy costs and do considerably more eco-                   of the plan — an admission against in-
says,” that quoted Dr. John Hill, director        nomic harm than environmental good.”                       terest that energy costs are going to go
of research for the Birmingham-based Al-             The Heritage assessment cited a study                   up, just as critics claim. “There will be
abama Policy Institute (API). Dr. Hill cast       by Charles River Associates that put the                   those who are going to be vulnerable as
doubt on the idea that carbon emissions           cost (in terms of reduced household spend-                 we make this transition and … we need
have much impact on global warming.               ing per year) of S. 2191 at $800 to $1,300                 to actually target the allowance value and
   The article noted that, regardless of          per household by 2015, rising to $1,500 to                 revenues to those households, communi-
differences of opinion concerning global          $2,500 by 2050. Electricity prices could                   ties, and businesses,” Reuters news quoted
warming: “All sides agree that carbon di-         jump by 36 to 65 percent by 2015 and 80                    Aldy as saying at an Energy Information
oxide limits could raise the cost of elec-        to 125 percent by 2050. The study noted                    Administration forum.
tricity or heat generated using fossil fuels      that while no analysis has been done on                       Advocates of cap and trade are promot-
such as coal or natural gas. It also could        the impact of S. 2191 on gasoline prices,                  ing it as a way to prevent global warming.
raise costs for other industries that release     an Environmental Protection Agency                         But U.S. Representative Marsha Black-
carbon dioxide, such as cement plants.”           study of a less stringent cap-and-trade bill               burn (R-Tenn.) has another description
   The report also quoted API’s commu-            estimates impacts of 26 cents per gallon by                for it: “cap and tax.” Even New York City
nications director, David Sawyer, who             2030 and 68 cents by 2050.                                 Mayor Michael Bloomberg admitted that
warned that a cap-and-trade system could             And what benefit would ensue from                       cap and trade is a form of taxation when he
more than double electricity and natural-         these financial burdens? Again citing the                  told reporters at the UN Climate Change
gas bills for residents. “Since when was          Charles River study, Heritage noted that                   Conference in Bali, Indonesia, in 2007 that
carbon dioxide considered a poisonous             “even if the U.S. were a party to [the Kyoto               the growing cap-and-trade industry is vul-
pollutant?” Sawyer questioned. “To put a          Protocol] and the European nations and                     nerable to “special interests, corruption,
chokehold on our economy with the idea            other signatories were in full compliance                  inefficiencies,” and should be replaced by
of saving the planet is a complete ruse.”         … the treaty would reduce the Earth’s fu-                  straight carbon taxes.
                                                  ture temperature by an estimated 0.07 de-                     It makes little sense to impose a higher
And finally, does the benefit justify the         grees Celsius by 2050 — an amount too                      tax burden and another revenue-sharing
cost?                                             small even to verify. S. 2191 would at best                scheme on Americans already beaten
When Senators Joseph Lieberman (I-                do only a little more.”                                    down by the current recession, using the
Conn.) and John Warner (R-Va.) intro-                Despite the above findings, there is a                  prevention of “global warming” as a pre-
duced the America’s Climate Security Act          strong political movement in our nation                    text. Americans who think that the cost of
of 2007 (S. 2191) in the last Congress, the       determined to impose cap and trade or                      living is already high enough should share
Heritage Foundation warned, “All such             other forms of carbon taxes that will place                their concerns with their representatives in
climate change measures warrant careful           a further economic burden on Americans.                    Congress before it is too late. n


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Unattractive Union - The New American Magazine - May 11 - 2009.pdf

  • 1. The High Cost of Cap and Trade • DHS: Everyone’s a Threat • Pyramid Schemes Put in Perspective May 11, 2009 www.TheNewAmerican.com ThaT Freedom Shall NoT PeriSh $2.95 Unattractive UNION
  • 2. Connect with something big — from virtually anywhere. Be one of the many dedicated Americans working together to build a better world. Visit JBS.org and get connected.
  • 3. Scott Farm Founded 1880 ding Fee a Am eric office • 701-869-2446 facSimile • 701-869-2829 The John W. Scott Farm P.o. Box 186 GilBy, north Dakota 58235 John W. Scott • Jack Scott email • jwsfarm@polarcomm.com To what avail the plow or sail or land or life if freedom fail?
  • 4.
  • 5. Vol. 25, No. 10 May 11, 2009 10 Design by Joseph W. Kelly; photo: ©iStockphoto.com Cover Story TraNsaTlaNTic UNioN 10 Unattractive Union by James Perloff — It is now clear that European nations were deceived into joining an economic union that became a political union, yet our leaders still seek a similar economic union with the EU. FeatureS 17 21 ENErgy 17 The High cost of cap and Trade by Warren Mass — Cap-and-trade programs to control carbon- dioxide emissions will further damage the economy. AP Images AP Images EcoNoMy 21 cancerous growth of government by Alex Newman — The private sector struggles while big 24 government grows even larger. HoMElaNd sEcUriTy 24 Everyone’s a Threat by William F. Jasper — Obama’s Department of Homeland Security and federal-state “Fusion Centers” target millions of Americans. ProfilE 28 Pyramid schemes Put in Perspective AP Images by Charles Scaliger — Kreuger and Madoff were caught doing what governments do as a matter of course through central banking. HisTory — PasT aNd PErsPEcTiVE 28 34 lessons of the Weimar republic by Michael E. Telzrow — Hyperinflation easily leads to loss of liberty. THE lasT Word 44 obama’s counterproductive Plan AP Images by John F. McManus 34 DepartmentS German Federal Archive 5 letters to the Editor 32 The goodness of america 6 inside Track 40 Exercising the right 9 QuickQuotes 41 correction, Please! coVEr Design by Joseph W. Kelly; photo: ©iStockphoto.com
  • 7. LETTERS TO THE EDITOR Publisher John F. McManus Editor construing the constitution reverted back to his true Northeastern Gary Benoit In “Dangers of ‘Judicial Supremacy’ ” thinking. The next week on ABC News, he Senior Editor (March 2), Edwin Vieira, Jr. claims that ju- agreed with Maxine Waters on “bank nation- William F. Jasper dicial review — the power of the Supreme alization.” Maxine and Graham represent Court to strike down congressional and state conservatives? Is Graham’s staff “laughing Associate Editor Kurt Williamsen laws it deems “unconstitutional” — is not out loud” to think that The New AmericAN only “legitimate,” but also a practical neces- magazine put a conservative slant on him? Contributors sity, as the court must often “construe” the If you want to see “conservative” in Dennis J. Behreandt Christopher S. Bentley Constitution in the course of deciding what thought and action, follow South Carolina’s Steven J. DuBord the Constitution describes as “Cases” and Senator Jim DeMint. He does well represent- Selwyn Duke “Controversies” that come before it. How- ing South Carolina and the Constitution. Jodie Gilmore ever, judicial review is neither stated nor im- ThomAs PlowdeN Gregory A. Hession, J.D. Ed Hiserodt plied in the Constitution, but was simply as- South Carolina William P. Hoar sumed by the falsely brilliant John Marshall R. Cort Kirkwood in the specious Marbury v. Madison case The New AmericAN did not claim Lindsey Warren Mass Llewellyn H. Rockwell, Jr. (1803). The sole function of the appellate Graham (R-S.C.) was either “conservative” Alan Scholl jurisdiction of the Supreme Court is to ad- or liberal. We merely repeated an interest- Ann Shibler judicate on the basis of the laws in the case. ing quote he made. We rate how every mem- Liana Stanley The “construing” of the Constitution need ber of the House and Senate votes on key Michael E. Telzrow Joe Wolverton II, J.D. not and should not enter into it at all. Indeed, issues in our “Freedom Index,” a congres- judicial review has gradually led to the very sional scorecard based on the Constitution. Editorial Assistant judicial supremacy Vieira impugns in his Senator Graham’s cumulative FI rating for Denise L. Behreandt article. This is the view of Thomas Higgins the 110th Congress (2007-2008) was 53 Art Director in his classic Judicial Review Unmasked, as percent. — Ed. Joseph W. Kelly reviewed by the late Medford Evans (Ameri- Desktop Publishing Specialist can Opinion, November 1981). Steven J. DuBord Tim Keller Proper Parlance Research Watertown, New York In a “Letter to the Editor” published in the Brian T. Farmer April 13 issue of The New AmericAN, Mr. Bonnie M. Gillis Losch objects to the reference of “America’s Wayne Olson Political Posturing Judeo-Christian heritage.” Yes, America was Marketing Many times I’ve had the urge to fire off a established as a Christian nation, to which Larry Greenley letter to the editor, but only once have I done there is no argument from me. But to attempt Public Relations so, until now. In the March 2 edition’s Quick to discredit the Judeo-Christian heritage is Bill Hahn Quotes, compiled by John F. McManus, to be intelligently ignorant of those leaders there is a picture and quote by South Caro- who created our nation. History reminds us Advertising/Circulation Julie DuFrane lina Senator Lindsey Graham. Criticizing that these men were very well versed in the Obama’s stimulus package, Graham says, “If Old Testament. Therefore, the use of the this is change we can believe in, America’s phrase “Judeo-Christian” is very much in best days are behind her.” Oh, is Graham order in describing America’s heritage. The suddenly a conservative? use of the Ten Commandments by our Chris- Yes, we in South Carolina have read or tian folks is another example of the Judeo Printed in the U.S.A. • ISSN 0885-6540 heard of Graham’s pontifications, but it was background to our way of life, even though P.O. Box 8040 • Appleton, WI 54912 920-749-3784 • 920-749-3785 (fax) all a ploy by him to appeal to conservatives. the Christian version changed the wording of www.thenewamerican.com McManus took the bait! The stimulus pack- the sixth commandment to read, “Thou shalt editorial@thenewamerican.com age already had the votes to pass, so there not kill.” The Old Testament, Exodus 20:13, Rates are $39 per year (Hawaii and Canada, was “no risk” to Graham taking the conser- reads, “Thou shalt not murder.” add $9; foreign, add $27) or $22 for six months (Hawaii and Canada, add $4.50; foreign, add vative view. dAvid eiseNberg $13.50). Copyright ©2009 by American Opin- Quickly, Graham Tucson, Arizona ion Publishing, Inc. Periodicals postage paid at Appleton, WI and additional mailing offices. Post- master: Send any address changes to The New AmericAN, P.O. Box 8040, Appleton, WI 54912. EXTra coPiEs aVailaBlE The New AmericAN is pub- lished biweekly by Ameri- ➧ Additional copies of this issue of The New AmericAN are can Opinion Publishing available at quantity-discount prices. To place your order, visit Inc., a wholly owned subsidiary of The John Birch Society. www.shopjbs.org or see the card between pages 38-39. Call 1-800-727-TRUE to subscribe today! 5
  • 8. Inside Track Piracy solution: letters of Marque and reprisal Is there another alternative to paying tribute to Somali pirates, are spending in the ongoing War on Terror. When dealing with other than sending a huge naval expedition force to rout the pi- elusive, non-state actors like pirates and terrorists, Ron Paul’s ap- rates out of their lairs? Congressman Ron Paul (R-Texas) believes proach would seem to make much more sense than current poli- the Constitution’s long-neglected “marque and reprisal” provi- cies. There are very likely plenty of Special Ops/Special Forces sion may offer a viable option. Article I, Section 8 of the Consti- operators who are ready, able, and willing to have a go at the tution states: “The Congress shall have power … To define and Somali pirates. punish piracies and felonies committed on the high seas, … To declare war, grant letters of marque and reprisal, and make rules The guided-missile destroyer USS Bainbridge concerning captures on land and water.” tows the lifeboat from the Maersk Alabama to Throughout history, privateers have played an important role the amphibious assault ship USS Boxer. Three in combating piracy, and there’s good reason to think they could Navy vessels were used in this rescue. do so again. As in the early years of our nation, Congress could issue letters of marque and reprisal authorizing private parties — individuals or corporations — to go after pirates and/or terror- ists. Rep. Paul made the same proposal in 2001, introducing the “Marque and Reprisal Act of 2001” to target Osama bin Laden and other terrorists involved in the 9/11 terror attacks. Placing bounties on the heads of villains would cost only a few tens of millions of dollars, versus the hundreds of billions we news.navy.mil globalist Piracy solution: Empower the UN Our globalist-minded policy elites have the solution for piracy: option provided in the U.S. Constitution of granting letters of more power for the United Nations. Ratification of the UN Law marque and reprisal to private actors to pursue pirates. of the Sea Treaty (LOST) is a “top priority” for the new Obama The UN LOST would affect much more than our policies administration, according to Secretary of State Hillary Clinton. toward pirates. It would dangerously undermine national sover- Articles 100-107 and Article 110 of the UN Law of the Sea Treaty eignty and transfer vast new powers to the United Nations to deal with piracy. However, ratification of LOST would greatly control and/or regulate virtually all human activity on, over, or hamper U.S. ability to deal with pirates, as it would restrict hot under the oceans, including the seabed, coastal areas, and inland pursuit in territorial waters, pursuit on land, and interdicting and waterways (rivers, streams, and lakes) that empty into the oceans. boarding pirate ships on the high seas, and it would prohibit the (See “LOST: The Law of the Sea Treaty” in our March 2 issue.) obama: Hero or Villain in Pirate rescue saga? President Obama scored major political points for the successful The critique, which claims to be based on conversations with rescue of Captain Richard Phillips from his Somali pirate captors. Navy SEALs, notes: “Philips threw himself off of his lifeboat Media headlines hailed his “decisive leadership” in his baptism prison, enabling Navy shooters onboard the destroyer a clear shot under fire. However, scuttlebutt from the Navy community claims at his captors — and none was taken. The guidance from National that the rescue succeeded in spite of Obama’s indecisiveness and Command Authority — the president of the United States, Ba- interference, not because of his leadership. A harsh critique of rack Obama — had been clear: a peaceful solution was the only the standoff by an anonymous Navy veteran that is circulating acceptable outcome to this standoff unless the hostage’s life was widely claims that Team Obama attempted to micromanage the in clear, extreme danger.” The critique cites a litany of specific situation, overruling the on-scene commander and imposing ri- interferences that allegedly prolonged the standoff for days and diculous rules of engagement that repeatedly prevented the Navy endangered the life of Capt. Phillips. SEAL shooters from taking out the pirates. A Special Forces veteran contacted by The New AmericAN “What should have been a standoff lasting only hours — as said he “couldn’t vouch for all the specifics in the critique,” but long as it took the USS Bainbridge and its team of NSWC [Naval that all the main points “appeared to be valid on the face of it.” Surface Warfare Center] operators to steam to the location — be- The most obvious fact, he noted, was that when Capt. Phillips came an embarrassing four day and counting standoff between a heroically jumped into the sea, “the SEALs would have shot ragtag handful of criminals with rifles and a U.S. Navy warship,” the pirates or the Bainbridge would have blown them out of the the critique says. water,” except for being countermanded by Obama. 6 THE NEW AMERICAN • MAy 11, 2009
  • 9. “Efficient” socialism is Not the answer ficer … will work to streamline processes, cut costs, and find best practices throughout our government”; • Aneesh Chopra, who in his role “as America’s Chief Tech- nology Officer … will promote technological innovation to help achieve our most urgent priorities — from creating jobs and re- ducing health care costs to keeping our nation secure”; and • Vivek Kundra, who as Chief Information Officer “is respon- sible for setting technology policy across the government, and using technology to improve security, ensure transparency, and lower costs.” White House photo But can these experts really help solve our fiscal and economic woes? The fact that Obama himself has not demonstrated fiscal frugality as either a senator or president does not give cause for hope. In the U.S. Senate, for instance, he voted for creating the $700 billion TARP fund, thereby helping to create the projected President Barack Obama said in his April 18 weekly address that deficit of over $1 trillion he inherited for the current fiscal year. we can “get our deficits under control and move from recovery Then as president he lobbied for the $787 billion “stimulus” leg- to prosperity” by getting rid of “dozens of government programs islation and proposed a budget forecasting a $1.75 trillion deficit shown to be wasteful or ineffective” and, in general, making gov- for the current fiscal year. His budget also called for spending ernment more “efficient” and “accountable.” He also said that he $3.9 trillion this fiscal year and spending $3.6 trillion next year has “assembled a team of management, technology, and budget as compared to $3.0 trillion for fiscal 2008. experts to guide us in this work.” President Obama is advocating more government, not less. He Obama specifically pointed to the following experts: wants to make the socialism he advocates more efficient, but ef- • Jeffrey Zients, who “as the first ever Chief Performance Of- ficient socialism is not the answer. The EPa Proposes New regulations to control co2 Emissions The Environmental Protection Agency on April 17 proposed from automobiles and power plants is definitely on the regula- new regulations to control carbon dioxide (CO2) and five other tion block. The first step toward costly and far-reaching regula- “greenhouse gases” as “pollutants” under section 202(a) of the tions is that the EPA establish carbon dioxide as a regulatory Clean Air Act. While not mentioning what aspects of carbon- “pollutant,” even though all green plants need carbon dioxide dioxide emissions will be regulated, the carbon dioxide emitted for photosynthesis and all animals exhale carbon dioxide. “Mexico as the ‘Pier,’ arizona as the ‘docks’ ” “Mexico as the ‘pier,’ Arizona as the ‘docks’ ” — meaning that Therein lies the rub. While Munger and ImagineArizona por- Mexico serves as the initial port of entry while Arizona supplies tray only the benefits increased international trade would bring to the warehousing and transportation facilities — is the vision of Arizona, they are not considering how the U.S. economy would John Munger, chairman of the newly formed political action com- be harmed by increasing the flood of cheaply made foreign prod- mittee ImagineArizona. ucts that no American company can afford to compete with. Also, The Arizona Daily Star spoke with Munger and reported on this close cooperation between Arizona and Mexico will only April 10 that his goal is to have Arizona “encourage Mexico to serve to strengthen the move toward hemispheric integration that build a major deep-water port on the country’s northern west President George W. Bush began with his Security and Prosperity coast,” probably “near Guaymas, about 250 miles south of Ari- Partnership agreement with Canada and Mexico. zona in Sonora.” According to the Daily Star, Munger sees that the “shipping ports in Los Angeles and San Diego are near ca- pacity at a time of growing Asian markets.” The ImagineArizona website calls this an “opportunity” for Arizona to “become a criti- cally important and large part of a major international sea port serving shipping from all parts of Asia, including China, Japan and Korea.” www.TheNewAmerican.com 7
  • 10. Inside Track Hundreds of Thousands attend Tax day Tea Parties On April 15, the deadline for U.S. taxpayers to mail their income tax returns, hundreds of thousands of Americans from coast to coast participated in approximately 2,000 nationally inspired but locally organized “Tea Party” protests. Fox News featured live TV broadcasts from four cities — San Antonio, Sacramento, At- lanta, and Washington, D.C. — featuring Fox personalities Glenn Beck, Neil Cavuto, Sean Hannity, and Greta Van Susteren. Tea Party participants and their signs reflected a variety of ideological outlooks ranging from constitutionalist and libertar- ian to populist and neoconservative. The New York Times reported that in downtown Houston, a crowd of 2,000 filled the Jesse H. Jones Plaza and that, among them, were some who wanted Texas to secede. The Times noted that the tax protesters were joined by “anti-abortion activists, Libertarians, and fiscally conservative AP Images Republicans.” Amidst a sea of American flags, hand-painted signs bore messages such as: “Abolish the I.R.S.,” “Less Government Washington, D.C. More Free Enterprise,” “We Miss Reagan,” and “Honk if You Are Upset About Your Tax Dollars Being Spent on Illegal Aliens.” ous, with many finding out about and promoting various events The “Don’t Tread on Me” Revolutionary War-era flag was through the Internet and social networking. prominent at a number of the Tea Party rallies (including the one Newt Gingrich, who addressed a Tea Party rally in New York in Appleton, Wisconsin, where The New AmericAN is located), City, was the most prominent big-name neoconservative politi- as were signs to end the Federal Reserve. cian who was heavily involved in promoting the April 15 events. The event generally credited with inspiring the Tea Party move- The participation of establishment GOP politicians like Gingrich ment was a February 19, 2009 broadcast from the floor of the in a movement that’s also populated by Ron Paul Republicans Chicago Mercantile Exchange by CNBC financial commentator suggests that they view the movement as an opportunity to posi- Rick Santelli. During his broadcast, Santelli criticized the Obama tion themselves as anti-big government, garner support, and (in administration’s plan to use federal funds to refinance troubled general) further their political ambitions. It does not mean that mortgages as “promoting bad behavior,” and he suggested the they are suddenly willing to abandon their neoconservatism in idea of staging a “Chicago Tea Party.” Almost immediately after- favor of strict adherence to the Constitution. wards, websites began to spring up promoting the idea and a new Veteran readers of The New AmericAN know about Gingrich’s movement began. The clip of Santelli’s impassioned outburst has key role in placing the United States under the jurisdiction of been viewed on YouTube more than a million times. the World Trade Organization and NAFTA, among other inter- An excellent coordinated effort was provided to event organiz- nationalist positions he has taken. However, the vast majority of ers through websites created by sponsoring organizations such Americans who attended the Tax Day Tea Parties were undoubt- as TaxDayTeaParty.com, the American Family Association, Top edly entirely innocent of such knowledge. Conservatives on Twitter (TCOT), Smart Girl Politics, and the Nonetheless, the Tax Day Tea Parties provided a very welcome DontGo Movement. The new Glenn Beck 9-12 Project has also venue for hundreds of thousands of Americans to register their promoted the Tax Day Tea Parties on its website. Yet once the opposition to the trillion-dollar bailouts, corporate takeovers, movement took off, local events were more-or-less spontane- stimulus packages, inflationary deficit spending, etc. n AP Images AP Images Lansing, Michigan Olympia, Washington 8 THE NEW AMERICAN • MAy 11, 2009
  • 11. QuickQuotes Ruth Ginsburg one supreme court Justice likes the idea of relying on foreign law AP Images “Why shouldn’t we look to the wisdom of a judge from abroad with at least as much ease as we would read a law review article written by a professor? I frankly don’t understand all the brou- haha lately from Congress and even from some of my colleagues about referring to foreign law.” Speaking at a symposium held at Ohio State University, Justice Ruth Bader Ginsburg responded in part to criticism of her view given by Justices Roberts, Thomas, Scalia, and Alito. chief Justice opposes Use of foreign law in rendering decisions “If we’re relying on a decision from a German judge about what our Constitution means, no president accountable to the people appointed John that judge and no Senate accountable to the people confirmed that Roberts judge. And yet he’s playing a role in shaping the law that binds the people in this country.” Having taken this position during his confirmation hearing, Chief Jus- AP Images tice John Roberts has never backed away from his belief that foreign law should not be relied upon in issuing decisions. clever labeling Hides What something really is “There’s a great company called I Can’t Believe It’s Not Butter. At least they have the decency to tell you it’s not butter. Now we have something called ‘credit default swaps,’ because if they called it I Can’t Believe It’s Not Insurance, maybe nobody would buy it.” Congressman Gary Ackerman (D-N.Y.) made his point during hearings with financial regulators. scoffing at the reputed Worth of “Public opinion” “Public opinion may be defined as what people think other people are thinking.” In his inimitable way, columnist Joseph Sobran places little value on oft-cited public opinion. Bonuses for fannie and freddie Employees angers iowa senator “It’s an insult that these bonuses were made with an infusion of cash from the taxpayers. It’s hard to see any common sense in management decisions that award hundreds of millions in bonuses when their organizations lost more than $100 billion in a year.” Hoping to retain many employees, the quasi-government companies known as Fannie and Freddie are awarding 7,600 of their personnel with more than $210 million in bonuses after receiving a $15 billion bailout from the government. Senator Charles Grassley (R-Iowa) notes that four of the top executives of these firms will each receive at least $1 million in hopes of retaining them. Treasury secretary Not Evasive about Taking over Banks “If in the future, banks need exceptional assistance in order to get through this, then we will make sure that assistance comes. Where that requires a change in management and the board, then Timothy we will do that.” Geithner Interviewed on television, Secretary of the Treasury Timothy Geithner cited the government’s action that has provided bail- outs while forcing out the top executives of AIG, Fannie Mae, and AP Images Freddie Mac. He obviously does not believe that failing entities should be allowed to fail. Professor Protests obama Presence at Notre dame commencement “The invitation to Mr. Obama is a deliberate thumbing of the collective nose at the Roman Catholic Church.” Philosophy professor Ralph McInerny, one of the more prominent instructors at Notre Dame, believes the school’s invitation to the president to deliver the commencement address and receive an honorary degree should be rescinded. n — comPiled by JohN F. mcmANus Call 1-800-727-TRUE to subscribe today! 9
  • 12. TransaTlanTic Union Unattractive UNION It is now clear that European nations were deceived into joining an economic union that became a political union, yet our leaders still seek a similar economic union with the EU. by James Perloff ed States with Mexico and Canada. The curity and Prosperity Partnership” (SPP) foundation for such a union was initi- that President George W. Bush, Mexican T he New AmericAN has devoted ated with the North American Free Trade President Vicente Fox, and Canadian extensive coverage to the risks of Agreement, or NAFTA, which went into Prime Minister Paul Martin launched at what critics have dubbed a North effect on January 1, 1994. Like the older their Waco, Texas, meeting on March 23, American Union (NAU), in reference to European Common Market that eventu- 2005.* the incremental integration of the Unit- ally morphed into the EU, NAFTA, a sup- Few Americans are aware of the SPP posed “free trade” arrangement, provided James Perloff is the author of The Shadows of Power: the supranational architecture for future * For background, see our special October 15, 2007 The Council on Foreign Relations and the American integration. “Merger in the Making” issue. The issue is avail- Decline and Tornado in a Junkyard: The Relentless This process of North American integra- able online as a PDF: http://www.thenewamerican Myth of Darwinism. tion was later advanced through the “Se- .com/files/MergerInTheMaking.pdf 10 THE NEW AMERICAN • MAy 11, 2009
  • 13. coming together: In 2008, the leaders of Mexico, the United States, and Canada (Felipe Calderon, George W. Bush, and Stephen Harper) met to further empower the Security and Prosperity Partnership of North America (SPP). The SPP builds on the North American Free Trade AP Images Agreement to integrate the three countries’ military and security functions, populations, and laws — similar to the EU. arrangement because the major media ig- considered by many to have fathered the These sentiments were quietly certified nored it — except for CNN’s Lou Dobbs, concepts that resulted in the SPP. But in November of that year when the U.S. who said of the Waco meeting: “President writing in the July/August 2008 issue of House of Representatives passed House Bush signed a formal agreement that will Foreign Affairs (the CFR’s journal), Pastor Resolution 390, introduced by Nebraska end the United States as we know it, and registered disappointment with its prog- Republican Doug Bereuter. The resolution he took the step without approval from ei- ress. Though continuing to advocate conti- declared that the “United States and the ther the U.S. Congress or the people of the nental unification, he lamented that “North European community are aware of their United States.” America’s experiment in integration has shared responsibility, not only to further It soon became apparent that the plan stalled.... The April summit meeting [be- transatlantic security, but to address other would lead to eventual political consolida- tween U.S., Mexican, and Canadian heads common interests such as environmental tion of the countries, modeled on the Euro- of state] was probably the last hurrah for protection, poverty reduction, combating pean Union. It would destroy U.S. sover- the SPP. The strategy of acting on techni- international crime and promoting human eignty, nullify the Constitution, flood our cal issues in an incremental, bureaucratic rights, and to work together to meet those nation with cheap, job-destroying imports way, and of keeping the issues away from transnational challenges which affect the via a NAFTA “Super Highway,” and allow public view, has generated more suspicion well-being of all.” It further stated that uncontrolled immigration by erasing our than accomplishments. The new president “the partnership should be expanded pro- border with Mexico. will probably discard the SPP.” gressively from a transatlantic community Thanks to the vigilance of concerned But like a running back who, about to of values to an effective transatlantic com- activists, the alarm bells reached the halls be tackled, laterals the football to a team- munity of action.” of Congress, and in 2007 Rep. Virgil mate, the establishment has at least for the On the other side of the ocean, the Euro- Goode (R-Va.) introduced House Concur- time being shifted to another scheme: ce- pean Parliament passed resolutions in May rent Resolution 40, which resolved that menting the United States to the European 2004 and January 2005 advocating the es- Union in what is called the “Transatlantic tablishment of a “transatlantic market.” (1) the United States should not Partnership.” These intentions became actuated at a engage in the construction of a North Early rumblings of this American Free Trade Agreement partnership came in 2003 (NAFTA) Superhighway System; when the U.S. Department At a summit on April 30, 2007, President [and] of Commerce stated in a (2) the United States should not press release: “Commerce Bush announced the signing of a new allow the Security and Prosperity Secretary Don Evans and agreement whose expressed purpose is Partnership (SPP) to implement fur- his European Union coun- ther regulations that would create a terpart, Commissioner Erkki to “strengthen transatlantic economic North American Union with Mexico Liikanen, reaffirmed the im- integration.” Without the consent of and Canada. portance of the transatlantic Congress or a mandate from the American economic and commercial Robert Pastor of the ultra-establishment partnership at a meeting last people, this was an unconstitutional act. Council on Foreign Relations (CFR) is night in Washington, D.C.” www.TheNewAmerican.com 11
  • 14. TransaTlanTic Union Progression of the plan: Former President George W. Bush went to a G20 Summit on Financial Markets and the World Economy in 2008. AP Images Obama was at another G20 financial summit in April. Both presidents were in favor of a new global financial system. The meeting Obama attended ended with a tentative agreement to initiate such a system. White House summit on April 30, 2007. Entirely aside from the fact that Presi- dimentary world government in the form Standing beside Angela Merkel, president dent Bush’s committing the United States of the now-defunct League of Nations. of the European Council, and José Manuel to this arrangement with the EU, without World government is the pathway to Barroso, president of the European Com-the consent of Congress or a mandate tyranny because, by eliminating the sov- mission, President Bush announced the from the American people, was an uncon- ereignty of nations, it would concentrate signing of a new agreement whose ex- stitutional act, one must understand the all of the world’s political power in a background that has led to this develop- pressed purpose is to “strengthen transat- single regime — a frightening concept to ment, which is only the latest in a series lantic economic integration.” Specifically, contemplate. of events. the pact called for “joint work in the areas Because nation-states have tradition- of regulatory cooperation, financial mar- The governments of Europe and the ally, and rightfully, been suspicious of United States are dominated by an “estab- kets, trade and transport security, innova- ceding themselves to a world government, lishment” that intertwines multinational tion and technological development, intel- the establishment has adopted the tac- corporations, think tanks, central banks, lectual property rights, energy, investment, tic of grouping countries under regional competition, services, and government powerful foundations, and the major mass governments as a steppingstone to global media. In the United States, the Council on procurement,” as well as the “interopera- dominion. A Frenchman or German, in Foreign Relations is the establishment’s bility of electronic health record systems,” other words, might feel more comfortable chief bridge of influence to the federal “customs cooperation,” and other steps to- merged in a European federation than one ward economic integration. government, having dominated the cabi- that included Asia or Africa. nets of every president since Franklin D. Soviet dictator Joseph Stalin understood The Pattern Roosevelt. The CFR has counterpart or- this strategy well. He said: “Populations Some may ask: “What is wrong with eco- ganizations in countries throughout the will more readily abandon their national nomic integration? What’s the big deal world. Coordination of policy between loyalties to a vague regional loyalty than about cooperation? Isn’t it xenophobic establishment figures from different coun- they will for a world authority. Later, the paranoia to oppose it?” tries has taken place through such venues regionals can be brought all the way into a as the annual Bildergberger con- single world dictatorship.” ferences, begun in 1954, and the In a modern context, Zbigniew Brze­ The push for the Transatlantic meetings of the Trilateral Com- zinski said: “We cannot leap into world mission, founded in 1973 by government in one quick step. The precon- Partnership is a well-coordinated Zbigniew Brzezinski and CFR dition for genuine globalization is progres- one. At the hub of this movement is Chairman David Rockefeller. The sive regionalization.” Both the European goal of the CFR and its sister or- Union and the incipient North American a powerful but largely unpublicized ganizations is world government; Union are, of course, regional bodies. institution called the Transatlantic in fact, the CFR was founded for However, many nations have been re- that express purpose in 1921 after luctant even to join regional organizations. Policy Network (TPN), headquartered the U.S. Senate failed to ratify the The bait used to lure them in has been the in Washington and Brussels. Versailles Treaty, which would alleged prosperity of trade treaties. These, have committed us to joining a ru- while initially disguised as economic ar- 12 THE NEW AMERICAN • MAy 11, 2009
  • 15. rangements, cast the die for inevitable po- nated changes in laws. In Europe, laws cans should begin considering formation litical consolidation. are usually made by parliaments; thus the of a continental parliament.” (Emphasis The European Union is a case in point. Common Market led to the formation of added.) The EU actually started in 1950 as the six- the European Parliament in 1979, and the This view was echoed by University of nation European Coal and Steel Commu- European Economic Community simply Nevada economics professor Glen Atkin- nity. In 1957, this evolved into the Com- dropped the word “Economic” — which son in his paper “Regional Integration in mon Market, which was sold to Europeans had only been a pretense — from its the Emerging Global Economy: The Case as a purely economic structure that would name. Then came the European Union, in of NAFTA,” published in the Social Sci- enhance prosperity; its official name was which sovereignties have been drowned: ence Journal. He wrote, “The stage of the European Economic Community. national parliaments find themselves in- economic union requires a high degree of The chief architect of the Common creasingly subservient to the dictates of coordination or even unification of poli- Market was the shadowy Jean Monnet, the EU, as they see their laws, currencies, cies. This sets the foundation for political whom Time magazine called “the Father of court systems, militaries, etc., gradually union.” (Emphasis added.) Europe.” Monnet’s deceptive strategy was consolidated. explained by British Conservative Adrian The plans for a North American Union Bridging the ocean Hilton, who notes that Monnet believed likewise got their start with an economic Thus no one should be surprised that the arrangement: NAFTA. Although hyped as latest thrust toward world government — that Europe should become a federal a path to “prosperity,” Americans lost mil- the Transatlantic Partnership — is initially superstate, into which all ancient lions of jobs as cheap imports flooded the being foisted on us as an “economic ar- nations would be fused. ‘Fused’ is country. And our trade deficit soared: in rangement” (coupled, as was the Security the word he used.... For this to be 1994 (the year we joined NAFTA) it was and Prosperity Partnership, with assur- achieved without the peoples of Eu- $75 billion; in 2008 $673 billion. Our trade ances that consolidation will also provide rope realising what was happening, deficit with Canada and Mexico went from protection against terrorism). the plan was to be accomplished in $9 billion in 1993 to $98 billion by 2003. As we have noted, President Bush’s successive steps. Each was to be dis- But adding constitutional insult to this signed agreement with the EU’s leaders guised as having an economic pur- injury, NAFTA’s foremost purpose was to pledged “transatlantic economic integra- pose, but all, taken together, would lay the groundwork for consolidation. An- tion.” It established a permanent Trans- inevitably and irreversibly lead to drew Reding of the World Policy Institute atlantic Economic Council. And most of federation. wrote: “NAFTA will signal the formation, the agreement’s provisions — concerning however tentatively, of a new political unit trade, investment, energy, etc. — are eco- Once nations agree to complex trade — North America. With economic integra- nomic in nature. agreements, conflicts naturally arise over tion will come political integration. By Based upon the pattern set by the Eu- issues such as prices, tariffs, taxation, whatever name, this is an incipient form ropean Union and the SPP, however, it product safety, union relations, etc. Reso- of international government. Following is quite logical to conclude that this eco- lution of these conflicts requires coordi- the lead of the Europeans, North Ameri- nomic consolidation is only a prelude to intended merger with the EU. Just 12 days before President Bush signed the agreement, British Prime Min- ister Gordon Brown delivered a speech at the John F. Kennedy Presidential Library and Museum in Boston. Ironically, as he stood only 12 miles from where the first shots of the American Revolution were fired, the Briton invoked this quote from John F. Kennedy: “Today, Americans must learn to think intercontinentally.” Continuing, he gushed that “a global so- ciety demands new global agreements and integration by 2015: The EU’s members of parliament voted in March to initiate a new Transatlantic Policy Council “for systemic European Parliament high-level consultation and coordination in respect of foreign and security policy” with the United States. Its goal is to achieve “economic integration” and a “unified transatlantic market by 2015.” Call 1-800-727-TRUE to subscribe today! 13
  • 16. TransaTlanTic Union lations; the Center for Strategic and In- ternational Studies (CSIS); the Atlantic Council; the Aspen Institute; the Carnegie Endowment for International Peace; and the German Marshall Fund of the United States. The CFR’s role in advocating re- gional alliances and world government is well known to many readers of The New AmericAN. It is interesting to note the statements being made by others listed among the “Cooperating Institutions” that demonstrate they are moving lock step with TPN. For example, CSIS, which counts among its members such CFR heavyweights as Zbigniew Brzezinski, Felix Rohatyn, Har- old Brown, and Brent Scowcroft, released a report in 2007 called “Towards a Grand global cheerleader: U.K. Prime Minister Gordon Brown has been jetting around the world AP Images Strategy for an Uncertain World: Renew- in a bid to convince countries to institute world regulations over financial institutions and ing Transatlantic Partnership.” It said functions. The new regulations would be under the control of a global governing body. that “our long-term vision is for a zone of common security and collective action from Finland to Alaska.” strengthened global institutions to protect As Dennis Behreandt insightfully noted In 2009, in its journal Internationale and safeguard essential global resources.” in the May 12, 2008 issue of The New Politik, the German Council on Foreign Phyllis Schlafly counted the word “glob- AmericAN: Relations published an article by Paul al” 69 times in Brown’s speech. Clearly, Hockenos entitled “Rethinking US-Eu- he was softening the American public for The emphasis placed on “top down” rope Relations.” It declared: “It must be President Bush’s transatlantic agreement. is not insignificant. As typically used a partnership of equals across the Atlan- Indeed, the push for the Transatlantic by NGOs, that terminology usually tic and this will require real compromis- Partnership is a well-coordinated one. At implies that executive-level leaders es from the United States as well as the the hub of this movement is a powerful but will impose their desires on the citi- Europeans.” largely unpublicized institution called the zens of a nation, not the other way In 2007, the U.S.-based Atlantic Council Transatlantic Policy Network (TPN), head- around as envisioned, for instance, by issued a 35-page report entitled Transatlan- quartered in Washington and Brussels. America’s Founders. tic Leadership for a New Global Economy, In February 2007, just two months be- which advocated a “barrier-free ‘Enhanced fore the U.S.-EU Summit, TPN publishedIndeed, TPN’s website (www.tpnonline. Transatlantic Market.’ ” Among its many its white paper Completing the Transat- org) lists as its business members a host of specific recommendations: “The United lantic Market, which declared: “It is time multinational corporations, such as AIG, States and the EU should launch a new, for a complementary, top down approachCitigroup, Time Warner, IBM, Merck, GE, jointly funded effort to develop future en- to transatlantic cooperation through a joint and Coca-Cola. Peter Sutherland, the EU ergy technologies that will both improve commitment by the European Union and honorary president of TPN, is chairman efficiency and reduce global warming, as the United States to a roadmap for achiev- of both Goldman Sachs International and part of the development of a new, post- ing a Transatlantic Market by 2015.” the British Petroleum Company, as well Kyoto international consensus.” It calls for as former director of the sov- transformation of the International Energy ereignty-sapping World Trade Agency (IEA) into “the primary institution The once-powerful nations of Europe Organization. for global energy governance,” and a merg- Among the “Cooperating er of the World Bank with the IMF. In short, are progressively finding themselves Institutions” listed by TPN are it wants broad consolidation of power. reduced to the status of mere provinces what we might call a round-up The Atlantic Council is an old hand at of “the usual suspects” who ad- the transatlantic game. Officially founded of the EU. Should America unite with the vocate world government over in 1961, it grew largely out of the older At- EU, we can expect to follow suit, finding national sovereignty, such as: lantic Union Committee, whose members the Council on Foreign Rela- envisioned a U.S.-Europe merger which our Constitution scrapped and ourselves tions (CFR); RIIA (the CFR’s they dubbed “Atlantica.” In the 1960s, the little more than a colony of Europe. British counterpart); the Ger- council’s lobbying resulted in resolutions man Council on Foreign Re- being brought before Congress that would 14 THE NEW AMERICAN • MAy 11, 2009
  • 17. His mandate: Zbigniew have laid the groundwork for this merger. Brzezinski cofounded the The resolutions were consistently rejected Trilateral Commission with David by Congress, but with the further wither- Rockefeller. The commission is ing of national sovereignty, the council ap- dedicated to achieving global pears ready to renew its merger crusade. stability through coordinated policies amongst developed nations. The commission is Events Propel the Union forward regularly accused of undermining Neither the advent of Barack Obama nor individuals’ rights and freedoms the current financial debacle will slow the to gain unanimity among the Transatlantic Partnership, but can be ex- world’s governments. pected to accelerate it. During his presi- dential campaign, Obama named globalist Zbigniew Brzezinski as one of his top for- eign policy advisers, calling him “some- body I have learned an immense amount from.” Following the elections, Nicolas Sarkozy, president of both France and the European Council, said that “the European Union sees in this election the promise of Newscom a reinforced transatlantic partnership.” In the Spring 2009 issue of Internation- ale Politik, the German Council on Foreign Relations published an article called “A the Transatlantic Partnership. The Brus- Even the most affluent countries New Transatlantic Partnership” that actu- sels Forum — yet another internationalist will confront shrinking resources. ally complained of “the bruises that the tentacle of the transatlantic network — Each will have to redefine its national transatlantic partnership suffered during the recently declared: “Since the beginning priorities. An international order will Bush years” and opined that “if Europeans of the financial crisis in the fall of 2008, emerge if a system of compatible pri- could have voted in the 2008 US presiden- the world economy has deteriorated at an orities comes into being.... tial election, they would have voted over- alarming rate.... The U.S. and European The alternative to a new interna- whelmingly for Barack Obama.” governments must reassess the role of tional order is chaos. Indeed, in April of this year — just a the transatlantic partnership in the global little more than two months after his inau- economy and re-ignite it as the catalyst of The coordinated voices of many global guration — Obama traveled to Europe for global economic recovery.” elites, speaking through mass media or- a series of summit meetings with EU lead- In the United States, Henry Kissinger gans owned by the international establish- ers. Canada is now joining the Transatlan- has long epitomized the foreign policy es- ment, give the public an illusion that there tic Partnership. Canada’s daily Financial tablishment. He once told Hamilton Fish is a logical consensus for world govern- Post reported on March 5, 2009: Armstrong, editor of the CFR journal For- ment, with the Transatlantic Partnership as eign Affairs, “You invented me,” and be- its newest cornerstone. Canada and the European Union fore serving as Richard Nixon’s Secretary However, like NAFTA and the Europe- have agreed to begin free trade ne- of State, he acted as chief foreign policy an Union itself, there has never been any gotiations.... After months of “scop- adviser to Nelson Rockefeller, whom he mandate from the people of the nations for ing exercises,” the two parties have called “the single most influential person these globalist arrangements. come to an agreement on the areas in my life.” Experience has proven that if America they would like to negotiate, includ- Still a dominant voice in foreign policy, moves ahead with the Transatlantic Part- ing trade in goods, services and in- Kissinger published an article in the Janu- nership, the economic alliance will be vestment, and have now adjourned ary 12, 2009 issue of the International converted incrementally into a political to prepare their proposals to take Herald Tribune entitled “The Chance for merger. The once-powerful nations of Eu- to the negotiating table.... “At long a New World Order.” He stated: rope are progressively finding themselves last, Canada is poised to realize the reduced to the status of mere provinces immense potential of a closer trans- As the new U.S. administration pre- of the European Union. Should America atlantic relationship,” said Thomas pares to take office amid grave finan- unite with the EU, we can expect to fol- d’Aquino, president of the Canadian cial and international crises, it may low suit, find our Constitution scrapped Council of Chief Executives. seem counterintuitive to argue that the for international regulation, and ourselves very unsettled nature of the interna- — after over 200 years of the blessings of The financial meltdown is being used tional system generates a unique op- independence — little more than a colony as a stick to force us eat the “carrot” of portunity for creative diplomacy.... of Europe. n www.TheNewAmerican.com 15
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  • 19. EnErgy AP Images The High Cost futile cause? These protestors participating in a walk in South Burlington, Vermont, in 2006 want humans to “Stop Global Warming.” What of cap and Trade they may not have considered is that variations in the Earth’s temperatures are a natural — not a man-made — phenomenon. have read any of several well-researched Cap-and-trade programs to control carbon-dioxide books* disputing both the severity of glob- al warming and the theory that it is caused emissions are an unacceptably costly way to deal with the by man’s activities, will not easily accept supposed problem of man-made global warming. the argument that a massive and costly government program is needed to prevent a catastrophic ecological event. by Warren Mass ing to those limits, and then allow firms To make an informed decision about to trade the allowances.” whether a cap-and-trade program is advis- T he term “cap and trade,” in terms Aside from telling us how cap-and-trade able, therefore, requires that several ques- of a plan to reduce carbon-dioxide programs might operate, the reference to tions be answered. emissions into the air, is one that “tightening limits on emissions” gives away is heard widely of late as a proposed solu- the ostensible purpose of these programs: Is global warming real, or at least real tion for the supposed problem of global to fight that supposed ominous scourge of enough to be threatening? warming. It will be discussed with more the 21st century, global warming. This question is best dealt with by refer- frequency as cap-and-trade proposals that Those who have accepted the widely ring to our February 16 cover story or one failed to pass in the last Congress are re- promulgated theory that the melting of the introduced this year. But many people polar icecaps and rising of the seas is im- * See, for example, Hot Talk, Cold Science, and Un- are still a little hazy about what “cap and minent may believe that any economic cost stoppable Global Warming Every 1500 Years, by trade” actually means. One succinct ex- is worth enduring, if only global warm- Dr. S. Fred Singer; The Politically Incorrect Guide planation appeared in an article on the ing can be forestalled. However, regular to Global Warming (and Environmentalism) and Congressional Budget Office website: readers of The New AmericAN, especially Red Hot Lies: How Global Warming Alarmists Use “The government would set gradually those who have read our February 16, 2009 Threats, Fraud, and Deception to Keep You Misin- tightening limits on [CO2] emissions, cover story entitled “Whatever Happened formed by Christopher C. Horner; and Meltdown, issue rights (or allowances) correspond- to Global Warming?” as well as those who by Patrick Michaels. Call 1-800-727-TRUE to subscribe today! 17
  • 20. EnErgy about 95 percent of the earth’s of the Earth. But the system isn’t so simple. natural greenhouse effect, If the climate system worked this way, the David Sawyer of the Alabama Policy whereas carbon dioxide con- Earth would have reached its maximum Institute warned that a cap-and-trade tributes most of the remaining temperature eons ago, and stayed there: 5 percent. Global warming water vapor would have entered the air system could more than double electricity projections assume that water when the oceans were heated by sunlight; and natural gas bills for residents. vapor will increase along with the Earth would have warmed somewhat, Sawyer noted that putting “a chokehold any warming resulting from leading to more water vapor entering the the increases in carbon diox- air and more heating of the Earth, followed on our economy with the idea of saving ide concentrations.” by more water vapor, and so on. the planet is a complete ruse.” Dr. Spencer points out that such assumptions are What is the economic cost of reducing unproven, noting that “there carbon-dioxide emissions, either by cap of the books cited in the footnote. Suffice remain substantial uncertainties in our and trade or a direct tax? it to say that the issue is not as settled as understanding of how the climate system Whether one accepts the claims that carbon many in the media portray it to be. will respond to increasing concentrations emissions contribute to global warming, or of carbon dioxide and other greenhouse prefers to give equal weight to contradic- What impact, if any, do man-made CO2 gases.” He observes that the natural tory evidence, there is no dispute that a cap- emissions have on global warming? greenhouse effect that heats the Earth is and-trade program would be costly. As to In the April 3 issue of the Wall Street Jour- offset by natural cooling processes. “In how costly, we should consider the article nal, deputy editor George Melloan noted other words,” concluded Dr. Spencer, “Study the (scary) figures on cap and trade,” that, according to “serious scientists,” “the “the natural greenhouse effect cannot by Rep. Joe Barton (R-Texas) in the Fort greenhouse gases are a fundamental part be considered in isolation as a process Worth Star Telegram for April 11, 2009. In of the biosphere, necessary to all life, and warming the earth, without at the same it Barton noted: “[Cap and trade] is being … industrial activity generates less than time accounting for cooling processes sold as a way to save the planet by taxing 5% of them, if that.” that actually keep the greenhouse effect ‘emitters,’ but it will kill the economy and Furthermore, the theory that CO2 is the from scorching us all.” decimate your family’s budget.” prime culprit in so-called global warming Theories on runaway global warming Barton made the following predictions may also be flawed. In the compendium based on CO2 emissions postulate that of how cap and trade would affect the U.S. Earth Report 2000, Dr. Roy Spencer, se- increases in CO2 will cause some (minor) economy, citing the National Association nior scientist for climate studies at NASA’s heating of the Earth that will in turn cause of Manufacturers as his principal source: Marshall Space Flight Center, noted: “It more water vapor to enter the air from the • Job losses: 1.8 to 7 million is estimated that water vapor accounts for oceans, thereby causing dangerous heating • Family tax increase: $739 to $6,752 • Electricity cost increases: 44 to 129 percent • Gasoline price increases: 61 cents to $2.53 per gallon • Natural gas increases: 108 to 146 percent He added: “While the exact cost in- creases may be debatable, experts — in- cluding those working at the White House — agree that prices will go up.” The Huntsville, Alabama, Times for sen. John Warner (R-Va.), left, accompanied by Sen. Joseph Lieberman (I-Conn.), center, and Sen. Barbara Boxer (D-Calif.), right, during a 2008 news conference on Capitol Hill to discuss the environment and climate change. When Lieberman and Warner introduced the America’s Climate Security Act of 2007 (S. 2191) in the last Congress, the Heritage Foundation warned: “All such climate change measures warrant careful scrutiny, as they AP Images would likely increase energy costs and do considerably more economic harm than environmental good.” 18 THE NEW AMERICAN • MAy 11, 2009
  • 21. House Energy and Commerce Commit- tee Chairman Henry A. Waxman (D-Calif.) and Rep. Edward J. Markey (D-Mass.), chairman of the Energy and Environment Subcommittee, released a draft climate bill in March that they hope to send to the full House by Memorial Day. Another bill containing a cap-and-trade provision has already been introduced in the House. H.R. 1759, the Emission Mi- gration Prevention with Long-term Output Yields Act, was introduced on March 26 by representatives Jay Inslee (D-Wash.) and Michael Doyle (D-Pa.) and has been referred to the House Committee on En- ergy and Commerce. Perhaps to address concerns voiced by opponents of cap-and-trade plans that they AP Images will damage an already weak U.S. econo- my, Joseph Aldy, a special assistant to the rep. Joe Barton (R-Texas), ranking Republican on the House Energy and Commerce president for energy and the environment, Subcommittee, said that cap and trade “is being sold as a way to save the planet by taxing announced on April 8 that a portion of the ‘emitters,’ but it will kill the economy and decimate your family’s budget.” revenue received from any cap-and-trade plan must go toward relieving those who April 14, 2009 ran an article headlined scrutiny, as they would likely increase en- end up paying higher energy bills because “Cap-and-trade will hurt economy, group ergy costs and do considerably more eco- of the plan — an admission against in- says,” that quoted Dr. John Hill, director nomic harm than environmental good.” terest that energy costs are going to go of research for the Birmingham-based Al- The Heritage assessment cited a study up, just as critics claim. “There will be abama Policy Institute (API). Dr. Hill cast by Charles River Associates that put the those who are going to be vulnerable as doubt on the idea that carbon emissions cost (in terms of reduced household spend- we make this transition and … we need have much impact on global warming. ing per year) of S. 2191 at $800 to $1,300 to actually target the allowance value and The article noted that, regardless of per household by 2015, rising to $1,500 to revenues to those households, communi- differences of opinion concerning global $2,500 by 2050. Electricity prices could ties, and businesses,” Reuters news quoted warming: “All sides agree that carbon di- jump by 36 to 65 percent by 2015 and 80 Aldy as saying at an Energy Information oxide limits could raise the cost of elec- to 125 percent by 2050. The study noted Administration forum. tricity or heat generated using fossil fuels that while no analysis has been done on Advocates of cap and trade are promot- such as coal or natural gas. It also could the impact of S. 2191 on gasoline prices, ing it as a way to prevent global warming. raise costs for other industries that release an Environmental Protection Agency But U.S. Representative Marsha Black- carbon dioxide, such as cement plants.” study of a less stringent cap-and-trade bill burn (R-Tenn.) has another description The report also quoted API’s commu- estimates impacts of 26 cents per gallon by for it: “cap and tax.” Even New York City nications director, David Sawyer, who 2030 and 68 cents by 2050. Mayor Michael Bloomberg admitted that warned that a cap-and-trade system could And what benefit would ensue from cap and trade is a form of taxation when he more than double electricity and natural- these financial burdens? Again citing the told reporters at the UN Climate Change gas bills for residents. “Since when was Charles River study, Heritage noted that Conference in Bali, Indonesia, in 2007 that carbon dioxide considered a poisonous “even if the U.S. were a party to [the Kyoto the growing cap-and-trade industry is vul- pollutant?” Sawyer questioned. “To put a Protocol] and the European nations and nerable to “special interests, corruption, chokehold on our economy with the idea other signatories were in full compliance inefficiencies,” and should be replaced by of saving the planet is a complete ruse.” … the treaty would reduce the Earth’s fu- straight carbon taxes. ture temperature by an estimated 0.07 de- It makes little sense to impose a higher And finally, does the benefit justify the grees Celsius by 2050 — an amount too tax burden and another revenue-sharing cost? small even to verify. S. 2191 would at best scheme on Americans already beaten When Senators Joseph Lieberman (I- do only a little more.” down by the current recession, using the Conn.) and John Warner (R-Va.) intro- Despite the above findings, there is a prevention of “global warming” as a pre- duced the America’s Climate Security Act strong political movement in our nation text. Americans who think that the cost of of 2007 (S. 2191) in the last Congress, the determined to impose cap and trade or living is already high enough should share Heritage Foundation warned, “All such other forms of carbon taxes that will place their concerns with their representatives in climate change measures warrant careful a further economic burden on Americans. Congress before it is too late. n www.TheNewAmerican.com 19
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