Leveraging Global Warming

by Jon Rappoport

I’m offering an experimental hypothesis here, based on how markets work. I’m talking about trading markets—stocks, commodities.

As you know, the (false) science of climate change is a lever for a new type of market; trading “permits” or “offsets” in carbon.

First a permitted ceiling for the total burning of carbon is set. Then, people and companies can trade the right to burn it. Those who burn a great deal can buy permits from those who burn a little, and of course, millions of investors can speculate, as they do in other markets.

However, there is another benefit for investors—as long as the market in carbon lasts. Holding permits can function as collateral in leveraging loans.

Right now, if I hold stock in corporations, I can use it to borrow money. It’s the same with carbon permits.

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