Renewable Energy Tax Credits Get Another Life In Bailout Bill

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09:48:43 am on October 1, 2008

Last night, the Senate included the tax credits for renewable energies to the bailout bill, which is expected to be voted on by the Senate tonight and should pass easily.  The key is the House vote later on the week.  It’s a bold move to include the renewable energy tax credits to a bill that is already standing on shaky legs but this most likely allows the tax credit extension to sneak on through because the headline is “saving the financial system”.  If it’s shot down again, there is most likely to be a huge backlash especially considering it now includes provisions for “green energy” .  Both the House and the Senate agree that the renewable energy tax credits need to be extended but disagree on exactly how to pay for it… I think the bickering over that falls by the wayside by including it in such an important bill.  The stakes just a got a whole lot higher. 

Solar companies which would stand to benefit most from the bill are up modestly this morning.

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Don’t take legistlation that bad for the sake of the good.

I wouldn’t be surprised if the recent overhaul of bankruptcy legislation was designed for this economic situation; it turns human debtors into indentured servants. And that is necessary for the following reason:

The ’sssssss’ we are noticing with this credit crunch is just the leak before the big burst. This credit bubble has been inflated by a logorithmic base 10 scale of dollar creation.
The practice of using 90% of ‘real’ wealth for lending that can then be invested and re-deposited for recycling again and again for more and more credit probably has the same effect of simply printing more money. The difference between those two ways of creating wealth is that creating money by credit inflation redistributes wealth for the benefit of financiers. And printed money is real; not fake.

This credit bubble burst should, then, be creating a shortage of money. And the cure may be as simple as the government printing more money. The only problem with that scheme is that there would not be another bubble to burst to correct for over-inflation. Printed dollars don’t evaporate away like the ones the financiers are trying to sell taxpayers now.

And that is why those who have engineered this bubble need those new draconian bankruptcy laws. Only wage earners can turn this fake money into real wealth. And that is why the Bush administration and other supporters of the great bailout plan are adamantly against giving bankruptcy judges the right to restructure debt according to who is most responsible for making bad loans.

Bryant Arms

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