Donald Trump’s “carbon bubble” economy is bound to pop — the only question is how bad it will be.
Channel: Trump Breaking News Network
Date: 03/01/2017

Trump Breaking News Network - Donald Trump’s “carbon bubble” economy is bound to pop — the only question is how bad it will be.

Donald Trump’s “policies” don’t really exist in any conventional or coherent sense, but his promises, pledges and appointments so far tell us enough to know that he’s devoted to the kind of bubble economics that ultimately can only burst. First, there’s the “carbon bubble,” pursuing economic growth through fossil fuel investments that can never pay off because 80 percent of the fuel can never be burned. (Sean McElwee wrote about it here three years ago.)  Second, there’s Trump’s reliance on vastly accelerated economic growth to wave away budget concerns and other reality-based question about what he wants to do on multiple policy fronts. Third is a more fantastical bubble — the imagined resurgence of traditional working-class jobs in mining and manufacturing, at a time when even China is losing manufacturing jobs to cheaper labor markets.

Each of these bubbles just might expand for a while in the short run — which so-called balanced and objective journalists will report as signs that Trump’s policies are “working.” But they’ll have to join with Trump in denying reality in order to do so. Let’s examine each of these bubbles to see why.

The most troubling aspect is Trump’s commitment to the “carbon bubble,” a commitment to expanding the production of fossil fuels, despite the fact that 80 percent of existing reserves are unrecoverable or unusable —worth absolutely nothing — if we’re to survive as a civilization. Treating those reserves as if they will actually be used vastly overvalues them, creating a carbon asset bubble, just as multiple factors overvalued housing in the Bush years, in turn creating strong incentives for a wide range of foolish, destructive and even criminal acts.

The carbon bubble does exactly the same thing. It’s not just fossil fuel reserves that are overvalued by the bubble, but everything associated with the sector — pipelines, power plants, refineries, etc. — as well as assets at risk from climate change, such as waterfront property (see Miami Beach, still in deep denial).

Source: 

http://www.salon.com/2017/01/02/donald-trumps-carbon-bubble-economy-is-bound-to-pop-the-only-question-is-how-bad-it-will-be/

http://trumpbreakingnewsnetwork.net

Trump Breaking News Network - TBNN
https://www.youtube.com/channel/UC6KZqfNgPrGEJDRIUTHPwrQ

https://youtu.be/czY0CF4tl5Y

For the latest new about Donald Trump and his presidency. Stay tuned.
Share and like.

'Copyright Disclaimer Under Section 107 of the Copyright Act 1976, allowance is made for 'fair use' for purposes such as criticism, comment, news reporting, teaching, scholarship, and research. Fair use is a use permitted by copyright statute that might otherwise be infringing. Non-profit, educational or personal use tips the balance in favor of fair use'