Mangled Thoughts

No! Golly gosh, is it true? It is entirely credible, given ACTU thugs are behind the plans of Rudd and Wong to raze Australians into the Stone Age.

A strong rumour is doing the rounds in Melbourne that at least one Union is siphoning super funds it runs into ‘alternative energy’ frauds. Their justification is Rudd will transfer billions into ‘alternative energy companies’ and this will constitute the earnings return to funds. Not that, if true, it is at all surprising. The ACTU has supported magic instead of science for a long time, and bunk instead of economics. The grey matter jogged -

Windpower, union stupidity and green lies

Recently, a minor union official complained about the impact of the financial markets’ gyrations. I appreciate not all union officials are thugs. Some are well intentioned and decent, though misguided - as in supporting measures that sees many given a 100% pay cut in the form of unemployment, by forcing effective minimum pay rates above market rates. The subject complained the market staggers is slicing the nominal value off his savings.

Assuming politicians were not bent on economic destruction via Co2 taxes and other tax and kill capital measures, over time the share market builds savings into a nest egg worth retiring on. Savers don’t have to be high income earners to achieve this at all. The current value of that official’s super holdings, therefore, is trivial, unless he wishes good stocks cashed in and to take a real loss.

He further complained, it is wrong retirement funds should be built out of investment in capital. He opined, ‘why can’t we go back to the old tried and true way of prescribed pensions’. This was when the official totally lost me. He clearly does not realise that there cannot be a ‘prescribed pension’ without capital and, crucially, capital accumulation.

Due to the ruthless immorality of anti-market labour pricing measures, worries over nest eggs is solved for the compulsorily made destitute. Their immediate worry is to obtain paying work, and then they can worry over accumulating a nest egg and its future value.

The lucky few with paying jobs, who are members of Unions, and have their savings policies with their unions, won’t have to worry about their nest eggs either. As reported, the Union heavies are wiping them out by throwing it down the black hole of ‘alternative energy’ frauds.

It does beg the question of lawfulness of these actions against fund members. Have the ACTU heavies told members they are plundering their modest savings to enrich their pals in Government and in extortion rackets called ‘alternative energy companies’?

Consider a new start up, genuine free market proposition. Super funds do not and cannot direct funds held in trust into supplying start up capital in ventures that may or may not succeed. Policy holders must approve such allocations and that means, being in funds that enable them to approve it, on evaluation of the risks should they, it is usually an insignificant consideration which won’t damage fund performance). Otherwise, individuals pushing some little amount, and those who engage in large venture capital raising and allocation do the work.

‘Alternative Energy companies’ are not free market capital formations. We can tell; they are subsidised to the hilt. They were set up only because Governments transferred tremendous sums to their ‘principals’. Funds stolen from real taxpayers and their genuine capital investments. They have no market value.

If what they were doing was valuable, investors would volitionally supply them capital. None have and, miracle of miracles - denied by the likes of Union thugs, Mark Vaile, Jeff Kennett, David Kemp, Penny Wong and Kevin Rudd, they plan long term and act rationally. They have seen the future in ‘alternative energy’; it does not exist. Therefore, they concluded, it is suicidal to extend capital to it, unless there is a genuine loony out there who reckons wiping out their own little all is a brilliant way to build a nest egg.

What many investors will not do, because they are neither suicidal nor loonies, the bosses of at least one union will do. Those bosses believe they can defy economics, the markets and, in the case of ‘alternative energy’, science.

‘Science…’ this must be qualified. Some things, windmills, solar panels, and ethanol are of course sound in science and engineering as such. However, they are not sound in science for the function, energy generation.

Solar panels and windmills, for example, cannot generate sufficient energy to power a room in a tiny house, and this is before economically efficient production. There is no scientific and thus engineering basis on which to achieve economically efficient production. By definition, therefore, to allocate capital into those schemes is to destroy it. Here’s a case study:

1. In America in 1991, LUZ, a solar-electricity generating company, went into bankruptcy. LUZ is interesting because it had been asserted by zealous solar power supporters (especially in the media) that the company’s technology had made solar power an economic alternative to nuclear. Even Fortune magazine waded in with support. LUZ had built its plant in the New Mexico desert to take advantage of the highly favourable conditions. But even there they could not make their 354 MW operation pay, which brings us right back to Suzy Freeman-Greene.

What is also crucial about the LUZ collapse is, ‘alternative energy schemes’ (they are schemes not free market, capital investments) are heavily subsidised. To follow the ACTU bosses, the collapse should not have occurred because LUZ was a major beneficiary of large subsidies. The ACTU are not only economic illiterates, they are also financial ignoramuses.

Financials is about capital. Financial profit is capital accumulation. So, why did Luz collapse?

The price of capital, of shares in a firm, is the sum of the present value of expected future earnings. The allocation of capital into a firm that produces nothing valued has no future earnings. It can only finish in bankruptcy. Here we are talking about earnings before whether a firm is justified. There are enough who sink their savings into loss makers, but no one volitionally sinks their savings into something for which earnings are not possible or are so trivial as to be as good as zero. Subsidies are not real earnings.

Profit: there is no single rate for all companies to justify their capital allocations. One company might require a gross of 12% another 30%. Why 30% but to leap the hurdles of taxes including regulations in order to yield its owners a return justifying their backing, the net return. Governments wipe out advantages in various investments because of the savage burdens they impose. The destruction of the former multi-billion petro-chemical production companies in Australia typifies that force.

A firm in profit means capital accumulation, which is applied to maintaining capital in existing production, expansion, and for new investments. Loss making signals capital extinction is occurring and the question is, can it be remedied or must it be shut down to stop further liquidation of capital. Subsidies over-ride these very important signals for action. They create the chimera of success when capital locked up in failing firms is being consumed. It gives the appearance capital is being maintained when it is being consumed.

Subsidies to alternative energy companies is not papering over loss making. It is deliberate fraud concealing funds sunk into them is instant capital destruction. There is nothing there. They are shells for the commission of larceny - private property seized to only make the politicians, a few bureaucrats, and con men pretending to be businessmen wealthy.

If the rumour is true, and it is a very strong rumour that has now been broadcast over the airwaves, then the ACTU are defrauding their members! Subsidisation is the mechanism to be used to conceal from fund members the ACTU is wiping out their modest savings. They are doing this in anticipation of Rudd transferring tremendous sums into the hollow schemes called alternative energy.

It follows, and it is a very strong rumour, do not grounds for criminal investigation exist – in common law and, interestingly, under all the Acts the Federal government has put through covering such actions? Will the ATO also investigate the ACTU? The ATO launches investigations on reasons feebler than a strong rumour against others who, for example, are merely trying to preserve their own private property against confiscation by Government and, the ATO has them thrown into jail for it.

After all, if a non-Union fund were to do what the strong rumour lifts out as above, just now broadcasted by 3AW, its officers would not only have broken trust. They would be convicted of a long list of criminal and lesser charges, thrown into prison and their own assets would be seized - to compensate their victims.

To reinforce the above, follow up points and reading matter:

The duplicity of Citipower solar panel experiment:

Citipower’s panels generated a maximum… miserable 83 watts… a wretched 8 per cent efficiency (for the total price to make and install it) of $A25, 000…

If the family “saved” a hypothetical $A100 a quarter in electricity bills that would have worked out at $A400 p.a.. This means that it would take this ‘investment’ 62 years and 6 months to break even. But when we discount the return (as we must because a present dollar is worth more than a future dollar) by, say, 10 per cent this ‘investment’ will never pay for itself. It wouldn’t even repay the family’s $A5000 investment. Then of course we have depreciation. If this is set at 10 per cent, for example, then the installation last for 10 years. Even if you run it till it falls to pieces, it still cannot pay for itself at these prices. This is what is called a lousy investment. It’s also lousy science and lousy PR.

Government MPs plan to rip millions off in subsidies for ethanol producers [Which they promptly did]

How the Bracks’ Government will cut Victorians’ living standards [And Victorians are yet to discover how deep the bottom of the pit is]

Erwin Jackson of the Australian Conservation Foundation, [Stalinist Green’s front and is subsidised to boot - Watermelon Red former Ministers pretending to be genuine Liberals also happily threw very large sums at those treacherous, Islamo-fascist - Hugo Chavez supporting, diseased bastards] railed:

… unless an Australian government throws buckets of dollars at that green fantasy called solar energy we will all be “rooned” (The Age, It’s clean and it’s green, but Howard isn’t interested in it, 26 September 2006).

And what does our intrepid investigative reporter throw up as evidence? The fact that other governments subsidise solar energy. And that’s the key — subsidies. If solar energy was superior to centralised electricity generation subsidies would not be necessary.

Green economic illiteracy, money-grubbing CEOs and windmills

Advocates of capital destruction and fraud and larceny to prop up ‘alternative energy - because they reckon razing Australians to the Stone Age is the way forward - reside in/associated with the Centre of Independent Studies. This lot pretends to be genuine free market economists. Genuine Liberals cringe, diseased leftists split their sides laughing (as they do over the IPA and the HR Nicholls Society - David Kemp boasted The HR Nich. Soc. is feared by the Left in Parliament - I cracked up laughing when I read that speech to his fellow HR Nich. Clubmen)

Jason Soon is one of them and, darn, is that guy shallow and callow and callous. Such types have to be callous, because no one decent contemplates wiping out millions of Australians using a pack of lies to justify totalitarian, criminal action on a massive scale. And so,

“To suggest, as Jason did, that we should implement a carbon tax because this will somehow force science to eventually find a better solution is not only naïve it is utterly reckless. Jason’s logic leads us to conclude that to find a decent substitute for petrol the government need only raise the excise to a prohibitive level.”

The boy is as hot as his stable- (play) mate John Humphreys, and these are only two of Greg Lindsay’s gunmen:

No one rumbles with his No.1. hitman, Professor Saunders, because they can’t stop giggling to bother with him. Truly, I’ve tested this by mentioning his name around the city, to heavyweights, and they all burst out laughing.

Dr. Jack Wheeler, To The Point News, set out:

Ethanol has only 2/3 the energy of regular gas, so you get 1/3 less energy per gallon, which means it adds 33 percent to the gas-per-mile cost of driving. But there’s also the cost of ethanol transport, which is by truckload or railroad, much higher than by oil pipeline (which ethanol can’t use because it can’t handle any water seepage like oil can).

The argument that ethanol reduces emissions is a fraud. With a modern car engine’s oxygen sensors and computer-controlled fuel injection, there’s no difference in CO (carbon monoxide) coming out your tailpipe with regular gas or ethanol.

Hell hath no fury than folks threatened with the elimination of their government subsidy. The question to ask the corn farmers is: if ethanol is so great, how come you don’t run your tractors with it and use (far more economical) diesel instead?

One qualification is in order: ethanol emissions pump carcinogens into the air.

Next to being a fraud, ethanol production, which Andrew Bolt advocates as the way to go, is destroying the lattice of food production worldwide with horrendous famines now a real danger. Tim Blair refuses to attack his guru, Bolt, over this fraud, and his other pals in the CIS and IPA and HR. Nich. Soc.

Greens are the enemies of liberty

Economic growth is under attack by greens

Shockingly, they are winning what is a ‘war’. This is due to the unprincipled illiterates who have wrecked the Liberal Party. This lot, when in States’ and Federal Parliaments imposed many measures the Stalinist Greens and their hard Left allies in the ALP demand. This ‘achievement’ was ably assisted by the cretins in the CIS, the IPA and the HR. Nich. Soc. They served the treacherous Left and not Australians - and they are too stupid to realise this is exactly what they did and continue to do - ditto Blair and Bolt.