Interesting post here explaining carbon trading derivatives and how they will be created from July 1 this year and NOT from 2015 as the government lies.
"There are many who want you to think that the scheme to “put a price on carbon” is safe; that the government’s implementation of a “carbon price” is careful, methodical, and prudent. A “fixed price” on carbon dioxide for 3 years. And only after 3 years, a transition from a fixed price to a “floating price” emissions trading scheme.
But there is something very important that they are not telling you.
There is a Ticking Time Bomb Hidden In The Carbon Tax.
It is called “derivatives”.
Carefully buried in 1,000+ pages of legislation, just 2 tiny, opaque clauses (109A and 110) have been included that allow the banks to immediately begin creating and trading unlimited quantities of unmonitored, unregulated carbon “securities” (another term for “derivatives”).
Almost everyone incorrectly believes that no trading will happen until 2015. But the truth is, the banks can begin creating and trading in carbon derivatives from Day 1. Even though the scheme is supposed to be a “fixed price” scheme for the 3 years up to 2015.
Those 2 little clauses I mentioned earlier (109A and 110), are the reason why trading will begin from Day 1. Trading in carbon derivatives, that is.
They are opaque, easy-to-overlook clauses stating that the Clean Energy Future legislation does not prevent the creation of and trade in carbon “securities”.
The designers of the legislation (no, not the politicians), know full well that the banking industry can and does create and trade derivatives on everything.
Including the date of your death. That’s right. We have previously documented how banks are trading in Death Derivatives.
All that is needed, is for there to be a “price” put on some thing, effectively making that thing a “commodity”.
Once there is an underlying price, then banks can create a derivative.
Provided there is no law specifically preventing them from doing so.
It is that simple.
And that is why the Clean Energy Future scheme has those two little clauses buried inside. As Explanatory Memorandum 3.36 confirms, they are “included for the avoidance of doubt” that the government does NOT wish to prevent the banks creating carbon derivatives.
That is also why, just 3 days after the government released its draft legislation for “putting a price on carbon”, it was reported that:
Australian banks are eyeing opportunities to cash in on the proposed carbon tax by developing new financial products and services that capitalise on a market seen to be worth billions of dollars annually, according to a report by the Australian Financial Review.
Australian financial firms that have experience in European carbon markets, such as Macquarie Group Ltd, Westpac Banking Corp Ltd and ANZ Banking Group Ltd are particularly keen to establish their presence in the Australian market….
ANZ’s head of energy trading said the value of the derivatives carbon market would dwarf the $10 billion initially raised by the government, according to the AFR."
