Archive for the ‘economics’ Category

The ABC on how to destroy our wealth

June 16, 2011

How the ABC slaughters our Australian industries

An interesting letter has been circulating about the ABC Four Corners programme on our live beef export trade to Indonesia. Not content with the normal political bias, Four Corners did a disgracefully biased demolition job that, with the ensuing Gillard government’s mindless and destructive decision to stop all exports, will create an enormous amount of damage to the beef industry in both Australian and Indonesia. But these ABC employees have no regard for consequences.

I am writing to you after the Monday program to say that although I abhor the treatment of the animals shown in the video, your one sided approach to the subject and the possible effect of that of a ban on live exports is too big a price to pay for a report based on the evidence of an organization that’s charter is to shut us down. I have the following points to make. I would like to have the same time as those who denigrated my life to show you the other side of our industry. To show you what is really going on. In Australia there used to be thing about “A fair Go”. You have gone with images provided by one person followed up by your investigative journalist who spent a week in Indonesia. Your report makes out that close to 100% of Australian cattle are treated as was shown on TV.

Another feather in the hapless ABC’s hat. The worst is that I am sure the Four Corners’ producers are thrilled at their destructive power.

Gillard continues to waste our money

January 25, 2011

How to make electricity eight times more expensive

Alan Moran explains how the government is able to convert a $300m sow’s ear that would produce electricity for a cost that is eightfold its value into a silk purse by waving a magic wand four times. By doing this, it is happy to destabilise the commerciality of the electricity supply industry.

He explains that this squandering of taxpayer resources serves to illustrate just how inured we have all become to misused government spending. Looking at the ABC’s reporting of this waste, you would conclude, like most other ABC reports on renewable energy, that it was all good news and positive benefit.


More Green waste

December 11, 2010

What freezing weather?


More in the litany of waste, expense, taxes and ineffectual action on climate change from Christopher Booker of the UK Telegraph. We can only pray that Australian doesn’t go further down this destructive road.

Back in Britain we had the latest report of the Climate Change Committee, set up under the Climate Change Act, chaired by Lord (Adair) Turner. This bunch of academics now proposes that Britain should lead the world by cutting its carbon emissions by 60 per cent in the next 20 years. One of the chief ways to do this, says Lord Turner, will be to ensure that there are 11 million electric cars on Britain’s roads by 2030. Quite how 11 million motorists will be persuaded to pay more than £20,000 a time for these vehicles when, for little more than half that, they could buy a Ford Focus, Lord Turner does not say.

The warminists never cease to impress on us how hot the last decade has been, how this summer will be another killer, or how dry winter was going to be. So it is fair to remind them, as Booker does,  that in England, the “last week of November and the first of December was the coldest ever recorded since the measurements began in 1659”. Or that in Scotland, the army was called out because the “country ground to a halt in up to three feet of snow.” Or that at Cancun, where the experts were saving the Earth, “six days running, local temperatures also fell to their lowest, for the date, since records began 100 years ago”.

Doesn’t matter. They don’t take any notice. Lord Stern wants to “raise an extra £15 billion a year in ‘green taxes’” to give to the third world for them to build wind turbines. Read all about this destructive folly.

UPDATE.

Too late it seems.

Gillard is frittering another $599 million to seem green.

Faine and economic ignorance of the Left

December 9, 2010

Water tanks would cost nearly 200 times more…

Jon Faine, spruiking Green policies on the ABC yet again this week, promotes the mandating of rain tanks for Melburnians. This desire of his underlines the economic and mathematical illiteracy of the Left. They can’t do sums, and have no idea of real costs to real people, most of whom can simply not afford the luxuries they indulge in themselves.

From my reckoning [figures from official government websites]:

The average total cost of a 5,000 litre tank is around $3,137.

For a Melbourne population of 4,644,950, there are 1,667,687 households. Therefore, the total price for mandating rain tanks would be approximately $5 billion and they would store a potential 8,330 ML of water.

The dam that Labor has refused to build, the Mitchell Dam, would have had a capacity of 500,000 ML. That is, one dam, costing around $1.5 billion — that is a third of the cost of rain tanks and equivalent to just three years of operation of the $5 billion desal plant — would have stored 62 times more water. This is, dollar for dollar, nearly 200 times more water for the money spent. Or to put it another way, Faine’s planned mandated water tanks, if they were to do what this one dam could do for $1.5 billion, would cost individuals the equivalent of $180 billion.

In addition, the proposed mandated rain water tanks would, in a drought, last an average household — at 155 litres per person — only two or three weeks.   The one extra dam would supply water to Melbourne, at the same rate — for around two years.

Maybe households in Fitzroy can afford this nonsense but it would either hurt the poor, or if subsidized, overwhelm the taxpayer. Either way, it is crazy economics and utterly stupid as a way of waterproofing a city like Melbourne. But do the fanatical greens care at all ?

The Flaky Greens

November 29, 2010

Greens turning a dirty grey

At last, the Greens seem to be getting it in the neck. It is not just the outcome of the Victorian election but analysis of their policies and who they represent. The commentators are moving in and exposing them as the dangerous extremists that they are. A serious analysis of the policies and the allegiances reveal something less pure than saving trees and saving the planet.

Many are now suggesting that Julia Gillard take urgent action to distance herself from the Greens and their toxic policies. Janet Albrechtsen suggests

Labor can expose the Greens as a party with a BANANA agenda (build absolutely nothing anywhere near anything).

A couple of weeks ago Greg Sheridan likened the reverential welcome the ABC extends to Bob Brown as if he were an Anglican Bishop from 50 years ago. He analysed their website and was scathing about their policies.

However, a cursory stroll through the Greens website shows just how extreme and destructive their ideology is. It’s built on a hatred of modern Western society and as such is the logical successor to the Communist Party, just as many Greens were former communist activists or their progeny.

The latest wrap from Paul Sheehan in the Sydney Morning Herald, talks of the Greens flakiness with their kickbacks, union funding, voodoo economics, allegiances with Israel loathing activists.

The Greens are a fraudulent brand. There are not enough letters of the alphabet to encompass the image fraud this party is perpetrating on the electorate. It is simply not a party preoccupied with the environment.

Sheehan takes us letter by letter through the sins of the Greens. It is a wonderful summary.  People are indeed starting to understand that the love of nature can have impurities.

Britain’s Trillion Pound Horror Story

November 22, 2010

Martin Durkin does it again

We all remember Martin Durkin and his wonderful documentary, The Great Global Warming Swindle, that so thoroughly upset and embarrassed the ABC a couple of years ago. The ABC Collective was so outraged that, from memory, it was the first time they had issued a formal disclaimer that the documentary in no way reflected the views of the ABC …  ahem … as if the ABC has a particular view in the first place.

Anyway, Durkin has produced a new and timely documentary on Britain’s financial woes, Britain’s Trillion Pound Horror Story. According to James Delingpole in the Spectator, it is the most important programme to have appeared on British television this year. It has not, to my knowledge, been reviewed or discussed anywhere in Australia.

From what I have gleaned from the British press reviews and seen from the promos, it is quite a confronting piece, just as his Swindle was for believers in global warming. Whilst most of us know about debt and the shake up from the GFC, there is still much disquiet. In our hearts, most of us don’t really believe that it is all over, or that our leaders have much of a clue. Delingpole recons that unless David Cameron actually does something to reduce government spending, rather than just cutting the rate of increase of government spending, Britain will end up like Honecker’s East Germany.

Last year our government spent more in benefits than it raised in income tax. One third of households in Britain now receive more than half their income in state benefits. Yet our national debt now stands at £4.8 trillion — a figure so large it’s hard even to imagine. If you stacked that figure up in £50 notes, you’d have a pile reaching 6,500 miles into space. If you sold every single house and flat in Britain to try to pay off the debt, you’d still be £1 trillion short …

‘Ah,’ goes up the bien-pensant cry. ‘But if we cut government spending too drastically front-line services will suffer.’ Oh, really? Of the £700 billion-plus of our money currently being squandered every year by the government, only around £200 billion goes on doctors, teachers, police and other ‘key workers’. Most of it simply goes on administration, on diversity-outreach consultants, on climate-change advisers, on entirely pointless government ‘initiatives’ such as the various ones devised to cope with our failing education system: the Numeracy Task Force, the National Skills Academy, Early Learning Partnerships, Excellence Hubs, Learning Outside the Classroom, Parenting Early Intervention Pathfinders, The Framework for Personal and Learning Skills.

I wonder if our ABC intends to show this doco, even forgetting their bad experience with Durkin. The problem for them is that whilst Australia is at the moment in a more fortunate place than Britain, it will remind viewers very much of the Rudd/Gillard profligacy that Mr Swann, the Independents and almost all the commentariat are helping to justify, especially with their obstinacy over the NBN.

What Durkin, and many other international commentators like Niall Furguson are reminding us, is that our politicians, including Obama and the Fed in the US, just don’t seem to know what they are doing.

A lesson in economics and optimism

November 10, 2010

On what principle is it, that when we see nothing but improvement  behind us, we are to expect nothing but deterioration before us?

Thomas Macaulay

I have just reviewed an outstanding book that I consider the perfect foil for the pessimism of the Left, and an ideal primer for the economically illiterate. It would be an inspiring Christmas present for anyone floundering with notions of economic progress, who doubts man’s ability to respond to environmental problems, or for those worried by peak oil or climate change. It is the perfect response to silly books like Affluenza by Clive Hamilton,  or irresponsible alarmism Australian of the Year Tim Flannery, who so confidently predicted water shortages for Australian cities. But don’t expect this book being discussed in a literary festival or a “dangerous ideas’ talkfest. It is far too dangerous…

Sensible questions on Labor’s incompetence

October 27, 2010

Labor in Purgatory

LABOR is in purgatory. Purgatory, the place between heaven and hell; the place where souls remain until they have expiated their sins and can go to heaven. Julia Gillard knows Labor’s sins. Appalling profligacy, phony revolutions, phony targets, phony committees and phony commitments. Mounting electricity and water prices extend the suffering. Can she expiate them?

Gary Johns, in his inimitable and stylish way, sums up the dilemma’s for the Australian Labor Party. A minister in the Keating government, he understands the Labor illness better than most. With real tax reform in mind, Johns wonders whether Gillard will actually get around to governing in the broad national interest.

National hysteria on carbon warms up

September 16, 2010

BHP lemmings over the cliff, or self interest?

There seems to be an urgent rush towards the cliff of righteousness with everyone and his drover’s dog wanting to pay carbon taxes. Or is it clever strategic deals being made in the name of stupidity. Alan Moran looks closely at BHP Billiton’s Marius Kloppers’ intentions and crunches some numbers.

In seeking a price on carbon for Australia, Kloppers presumably is not advocating that BHP start to pay it immediately on the 103 million tonnes of coal a year it sells. If so, even with a tax set as low as $25 a tonne of CO2, he is advocating a payment from his shareholders of $5 billion a year.

NBN more than entire defense budget

August 12, 2010

Another extravagant waste of money

Having commented on Kerry O’Brien’s disgraceful gotcha moment with Tony Abbott on the NBN, it is nevertheless disappointing that the Opposition can’t go on the attack as succinctly as some of the economists and opinion writers in our newspapers about just how wasteful, dangerous and fraudulent the Labor proposition is.


Henry Ergas has done it again, this time on the ABC
as reported by Australian Conservative.

I think the real issue is whether the $43 billion was ever justified. Here you had $43 billion which is a staggering amount – $43 billion being invested, committed without a business case, without a cost-benefit appraisal, shifting enormous risk onto taxpayers in a program that costs five to 10 times more than what is being done anywhere else in the world.


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