Mangled Thoughts

Silly question.

Their front page lead report is sterling cringe causing matter. They confidently declared “though the stimulus has resulted in some mild growth, because of the RBA’s interest rate rise yesterday it should be withdrawn.”

It has not, evidently, occurred to them that if the consumption fallacy were true, another economic ignoramus, Treasurer Wayne Swann, could just as confidently say the Fin Review is very much mistaken. Put it this way, Greece should not be on the brink of collapse; they should be vibrant and becoming even wealthier by the year. If the fallacy were true, France, Germany and Britain shouldn’t be fast approaching what the Greeks now face. In fact -

Forget Europe. Forget Swann and Kevin Rudd. Under States’ Cabinets, all Australians should be doing spiffing well. Who can omit Uber Economist of the World, Peter Costello? How Costello increased Government’s consumption and managed to record a surplus is swiflty explained below ⁽¹⁾. Darn, there’s his rival for the Mr. Universe Award, Paul Keating, even the poorest Australian should be a millionaire.

Why, all this ’stimulus”, a man has “gotta” know all Australians must be mega-billionaires. So, why are so many destitute, or facing the high life sleeping under park benches?

It has not occurred to the Financial Review, obviously, the so-called “stimulus” actually erodes capital, arresting what is really needed, its accumulation. They failed to spot the glaring obvious, and let’s step this through:

Inflation, that is monetary expansion by central banks, besides constituting tremendous wealth confiscation and transferring it into the hands of the lucky few, including Treasurers, creates the impression real savings are higher than they are. This dissembling is due to what inflation does, distorts the price signal of interest rates. ⁽²⁾

There are real market rates of interest rates. Economic laws are real, they can only be ignored at great peril and cannot be defied forever. It has not occurred to the Financial Review that savings may be far, far lower than appears to be the case. Indeed, when Jackson pointed out that an over-valued dollar could be hollowing out Australia’s production structure, in his article showing Professor Sinclair Davidson had got things very wrong on manufacturing, I sat their stunned and transfixed:

Is monetary policy destroying the country’s manufacturing base?

This leaves the possibility the RBA’s rate raise still leaves rates below real market rates and, chillingly, very likely far below. This entails the implication, even though it is a rate rise, the RBA’s rate is still inflationary. To illuminate:

In December last year, Neil Mitchell attacked the head of Westpac, Mr. Peter Hanlon, on radio station 3 AW, over Westpac’s announcement it was raising interest rates independently of the RBA. Neil Mitchell accused Westpac of, to use the pejorative, profiteering, which is funny.

All those whining about profiteering of course themselves seek to profit. Scratch hard leftists, a Tim Costello or a Clive Hamilton and you find a profiteer but these types don’t earn their profits, unlike modest Australians grinding away in production. But I digress.

Mr. Hanlon defended Westpac’s position live on 3 AW in a tense exchange with Neil Mitchell. Hanlon made a singular error. Mitchell re-stated his accusation and Hanlon entered a long explanation, though true, including cost of funds (Westpac’s explanation is here), instead of nailing the falsehood in Mitchell’s accusation. Mind, he nearly did when he stated:

‘There is a great shortage in savings and rates have to be raised to build capital finds. The bank has to do this so modest Australians will do this.’

Just consider this statement alone. This is a banker who stated savings are far lower than assumed and this can only be corrected by rapid accumulation of funds. He did not use the expression, ‘capital funds’, but it is the problem they are struggling with. We know they are struggling with it through other evidence, the sheer number of firms trying to raise them.

Neil Mitchell accidentally drew one correct conclusion. It entails a shift from consumption to savings. Neil Mitchell drew the erroneous conclusion, this hurts consumers. Oh, it does. The pain is real, higher rates on housing loans for instance. This is short term pain. But it is false in the long run because only savings raises living standards. But this misses the real pain:

Malinvestments induced by inflation are being wiped out, on top of strangulation of firms by regulation and taxes and if all this is not enough, further eroded by “stimulus spending”. All will be wiped out with carbon taxes and related measures. Joy in the morning.

Anyway, what Mr. Hanlon should have said to Mr. Neil Mitchell is this:

“Mr. Mitchell, you are calling modest Australians, many whom don’t earn what I earn, nor what you are paid, venal “profiteers” because they rightly expect to earn market rates in return for building savings.

“What you are telling me is this: I should cheat our customers out of their just returns to subsidise the consumption of others.

“To cap it all off, Mr. Mitchell, you are telling me I should impoverish Australians by ensuring the only thing that raises living standards cannot occur, capital accumulation.”

To finish Mitchell off, he need only have added:

“Look Mr. Mitchell, I’m not responsible for this indeed very nasty situation. I do, though, have to correct you severely because you clearly do not understand the matter, and misconceptions are very damaging. Errors means causes won’t be rectified and this has even greater serious force.

“I acknowledge your genuine concern we all share but you are in grave error on the reason for the concern. It is very damaging to mislead Australians on these serious affairs. It’s wrong for anyone in the media to do this and, and, frankly, I’m appalled at the rubbish poured out by what are supposed to be expert commentators in the media.

“I wish everyone was far, far wealthier than they are. It’s due to the RBA and its criminal monetary policies that they are not. They should be hauled over the coals. In the meant-time, let’s tell listeners what you have stated:

“They, modest Asutralians, some of whom happen to be our customers, are vicious because they expect just compensation for building savings which is now urgently needed and the situation is dire.

“You have told Australians, as the head of Westpac I should make it policy to cheat modest Australians. This is offensive. I would be ashamed to even contemplate it. It would never occur to me to do this to mums and dads and youngsters, to anyone.”

If Hanlon had said that, Mitchell would have crumbled and properly, humbly, apologised and, to be sure, Mitchell does do this when he blunders. Unfortunately, with the likes of the Financial Review and the rest of the media commentariat, and the likes of the Institute for Public Affairs, Mitchell has no reason to realise he was nastily wrong.

Unfortunately, bankers don’t have the advisers they need because they have bloody keynesians as their ‘economics experts’ instead. Indeed Westpac’s postion and Hanlon’s reply was framed on the consumption fallacy. Yet, even the reduction absurdum of the fallacy has not even registered inside their skulls, ‘we save in order to spend our way into… what?’

Talk about suicidal, it was suicide committed long ago using keynesians.

“Stimulus”, bah! This is what a stimulus is:

A three year old attaches one end of a wire to the exposed muscle of a dead frog, the other end to a battery, and watches it twitch.

The protean scientist is sound, not the ‘adults’. What separates the Fin Review from the other rags? Price. Being far more expensive than the others, it must be really serious. Which is why I stopped buying it a few weeks after I first bought it back in the early 1980’s. It has maintained its standards ever since. You can tell:

It also promotes the lie of human emissions causes global warming, carbon taxation is necessary, “alternative energy” scams and “government spending sprees are “sound investments:” This is a newspaper for investors and entrepreneurs? They can cut the price by simply producing a 5 page rag -

P.1 The Dick and Dora headline - “look, Jane, see Dick run.” Pp.2-5, The list of yesterday’s stock market results.

It’s hot stuff.

Damned hot. I’m going back into business. I’m going to slay the Fin Review with the 5 page elite bumper newspaper at five cents a copy - Bargain!

I shouldn’t do this – I’m ruddy well not about killing my fledgling newspaper empire but, here’s an antidote to the Fin Review, and the rest of the media:

The US recession and the myth of 1937

Why the US economy could suffer another contraction

Does it make sense to resurrect the Glass-Steagall Act?

The US economy: Why the surge in GDP does not herald a recovery

Footnotes

(1) Peter Costello’s famous surplus

peter Costello increased in real terms Government consumption by a large factor in each of his budgets. According to keynesianism, Australia should be No.1 prosperity land. We should all be so wealthy that, why, all should be luxuriating in the Bahamas.

He could do it and record ’surpluses’ because of monetary expansion. This finally does raise nominal prices, which results in real rises in tax revenues to Treasury, because most taxes are indexed. So long as his increases in Cabinet’s consumption plans were less than the stealth increases in tax, he could record surpluses. So, readers, you can see the problem with a house of a cards.

Costello, Malcolm Turnbull and the rest of the “Opposition” attacked Swann for what the RBA caused, recession. Secondly, the danger of deficit (before the impact of debt-driven spending of Rudd and Swann).

The man was as all Treasurers are, no more than a book-keeper. A bally clerk, who affixed his moniker to budget papers handed him by Treasury. This makes him the Greatest Economist of the Entire Universe! Careful, Peter, the other claimant, Keating, knows how to bury snivellers.

If he was as brainy as some believe he is, he would have taken on the likes fo Mr. Jackson and Dr. Shostak and confronted the heads of the RBA head on, publicly, and driven for the only cure, a return to sound money. Instead, he sat there, sometimes he stood, with that smug grin on his face and poured out more destructive bilge.

(2) Interest Rates

Interest rates are not ‘prices of money’. The price of sound money is given in its basis, a commodity such as gold. A valued good exchangeable for other goods, its properties rendering it suitable for use as money. Real money is generated out of production. It has been interesting to observe those shifting into not only gold but also oil as a defence against debasment of money by central banks.

Interest rates, as Jackson carefully explained in, The nature of interest rates and why it’s dangerous to manipulate them, are the prices of time, given in preferences for present goods and savings. Böhm-Bawerk killed false explanations of interest and founded the theory of interest - the time preference of theory.

“Keynes just could not grasp that interest exists because people value present goods more than future goods (time preference). And so interest determines the supply of and demand for capital goods.”

The rate of interest is established by:

“… the marginal efficiency of capital [expected rate of return] is the rate of interest. This is the natural rate of interest and a price on the time market.”

The rate of interest not only equates supply of capital with demand for it. It is a process that occurs with time, capital goods are allocated over time. Keynes’ account of interest and money totally debases both, reducing them to mere “monetary phenomenon” of “supply and demand for money”.

Credit expansion distorts the natural market rate of interest signal informing entrepreneurs in establishing capital allocation priorities, based on the marginal productivity of capital. Every entrepreneur in planning capital allocation, while not working from economic theory, does exactly this through financial analysis.

Thus, to make explicit, interest rates balances production and consumption with time.

(Ah, what follows departs from the subject. Just couldn’t help it. The IPA’s glory, The Entire History of the West, by Regius Professor, New Gnius College, IPA, Chris Berg, deserves fulsome acknowledgment for the achievement it is. Honour unstintingly heaped upon the brain behind it, as aided by his assistants Andrew “Andy Pandy” Kemp and Professor Sinclair “Sinkers” Davidson.

We will be resuming normal posting today, might even manage a Festchrift but first a break, it’s rare that such a stupendous achievement brings a tear to the eye. The Right are the cause of many, everyday, but at this early hour!)

An Over-valued currency: As the Laffer Curve, Professor Sinclair Davidson…

Spots something or, rather, trips right over it. It was a jumble of arms and legs, leaving the editor of the IPA’s Review confused. Chris Berg, was heading for greatness. Chris Berg, after all, only re-wrote the history of economics, philosophy and, though he was unaware of it, theology too. Now he is following it up with the entire un-expurgated history of the West. Why stop at economics when you can trivialise on a wet afternoon the whole lot?

Yes, readers, it is entirely wrong, according to Berg, the standard account, which holds it is strictly Hellenic-Judaeo-Christian-Western. Berg has made important archaeological discoveries, while conversing with an obscure Muslim and editor of an equally obscure newspaper in Turkey.

Berg commenced with a thesis:

Could it be the settled accounts of history are wrong?

His discoveries suggested this. The IPA sent Berg on a dangerous dig held at least once a week, “knock off” time, noon Friday, for lunch with the help and “Andy Pandy” and any of the rest of the gang buzzing round like blow flies on the scent of a bad smell or a free lunch at donors’ expense.

(Are these guys really sure they want to keep on hectoring those who work in firms about “slacking it” and why they should work harder for savage pay cuts the Right is all for inflicting on modest Australians? Some might call it bravery. Not me, I call it suicidal insouciance.)

It’s all due to some mad Muslim. It’s a wonder Berg didn’t make a right stunning advance and out with it, the entire trajectory from the 5th century BC to the present is all due to that asinine butcher called Mohammad. Mind, I’m surprised the hard, treacherous Left have not awarded Berg a few gongs, and his joint IPA David Kemp-Michael Kroger Professor of Greatness, Andrew “Andy Pandy” Kemp. Perhaps it’s envy and resentment, Berg got in first.

There are, though, some outstanding questions Berg has yet to resolve and, without question, he will. How did the  Muslims from Mohammad to the ’scholastics’ solve simultaneously the doctrines of Christ and Trinity,  infiltrate every Council examining these questions from Niceae to Chalcedon to Trent and convince Bishops and Emperors? In this achievement, how did they simultaneously manage establishing the Arianist foundations of Eastern Orthodoxy? Was splitting the Church a tactical manouvre, preparing for the conquest of the West with their intellectual greatness?

Was it the opposite, a fine scheme to deliver peace but somehow, from Rome to Byzantium, everyone, “ingrates”, cocked it right up? Noting that the settlement of the doctrines of Christ and Trinity were developed, roughly put, in tandem over centuries, is this in fact wrong? Did, as Berg suggests, Mohammad solve them right back in the last years of the 6th century? In which case, why was it lost to the Church and therefore had to be won the hard way, a right old booze up in Constantine’s gin palace? Was the West, in fact, Schismatic?

That, for instance, the Council of Chalcedon was in 451, is a mere chronological error committed by Western annalists. In fact, all Councils from the 1st of Niceae (325) to Trent (16^th c.) were held at the same time, 611 and a 1/4 A.D. Mohammad was a very busy man. Between subjugating infidels, massacring Jews, pillaging and rampaging, it’s amazing how he found the time to fit them all in at once, and write all the theological tracts from the New Testament, through all the schools to the scholastics, in which he hammered out everything.

Folks, I haven’t yet even begun on the history of theology. Then there is the rest of history to go. Perhaps a few more questions might be in order.

What was really going on in the period which lead to the Renaissance? One is looking forward to Berg’s masterly dissertation on this. While ‘orthodox’ historians are blinded by their closed loop of working within Western history, thus ever perplexed by contrary facts and how to explain them away, Berg broke through and recognised the amazing, stimulating, vibrant, witty circles of desert Arabs.

Pierce the clunker-camel bound, sand-fly eaten, primitive, ‘male chauvinist’ plagued world with no plumbing and loo paper, you see deeply penetrating ladies and gentlemen steeped in learning of profound depth and breadth - you know, in what that “yobbo” from the urbs, Mohammad, told ‘em to do and unto others and they continue to make the same sterling contribution.  Why the army should be fighting them, instead of sitting at the feet of Osama bin Laden is, frankly, a frightful mystery.

The accepted “orthodoxy” is” Modern musical notation was invented by the Italian Benedictine monk, Guido d’Arezzo (991-1033) as a means of training brothers in choir. This made possible polyphony , symphony and opera. The liturgy of the Church instilled the discipline of composition. This is all wrong.

It was the 3rd plus 3/18th century famous composer, ivory banger, violinist and tenor, Ibn Askenaben, who also composed the entire oeuvre of  Verdi, Wagner and Debilius. He ghost-composed for Vaughan Williams. Ibn Askenaben realised the need for notation to train “screechers” wailing out to the local population the call to come to the mosque or else you know what.

It was the 10th century poet, Mustafa bin Kipplinaden, who wrote the Charge of the Light Brigade. Before then, in the 6th and 9/1000th century, the chemist Losama Pasremada formulated germ theory, and discovered vaccination and pastuerisation. His 19th century namesake, Louis Pasteur, was actually an obscure but excellent copyist of the Koran and  Pasremada’s notes. Pasteur, realising what he had inherited from his famous ancestor, Frenchifed his name in the Arbois dialect and  emerged from the hole of obscurity in which his real talent lay buried, some were of the opinion properly buried. The Greens hold he should have remained buried.

He took to the stage. He enjoyed living in at the University of Strasbourg, thanks to his wife who was a Muslim fifth columnist too. He loved the camera and signing autographs. He dined out and died in bed.

I have to stop here, I’m overcome as, unquestionably, you are too readers. Overwhelmed, by the brilliance of Chris Berg, Regius Professor, New Gnius College, IPA University on Collins Street, his mastery of all learning. His seminal contributions all made in a single working day’s post lunch nap.

It must be awkward for Professor Sinclair Davidson, who must reconcile himself to the lowly lot of Professor in tat at RMIT, and as All Fellows College Scholar, IPA. Ray Evans, Des Moore, Hugh Morgan, Michael Kroger, the Kemps David, Rod and “Andy Pandy”. Tom Switzer, Ken Phillips… a shining host all dimmed by a genius who makes Einstein look like a right old retarded clown.

All those egos, their heroic thirst for the camera spotlight, the agony and the ecstasy of beating the others to grabbing it first… Ah vanity, all is vanity. Either that or a plague of dunces who, having paid the $20 entrance charge to enjoy an early proto-type of Des Moore’s  soiree franchise many, many decades ago. As undergraduates really. Managed to lobotomise themselves with toothpicks. Des Moore realised he’d made a mistake; supplying toothpicks bumped the costs up, cutting the profits.

Obama is the United State’s Hugo Chavez. And an ignorant, oily, blowhard who had only two things going for him. He appealed to the treacherous, Castro and Islamo fascist hugging Leftists in the Democrats Party. He is going to reduce Americans to a living nightmare and this is all too transparent in his ‘policies’.

If anyone else did what he and the lying club of socialist cultists are perpetrating, they’d  be thrown into prison. And, if anyone else has done what central banks have perpetrated, and what successive Victorian Cabinets have committed, and what Rudd, Swann and Penny Wong are bringing down, they’d be thrown into a prison cell and the key thrown away down the sewer, lost forever. Sadly, in Australia, the Right has done much to advance criminal ‘policies’.

I  cannot but laugh each time I hear Costello boast of how he and his fellow Liberal Party wreckers have fought for Liberty. The joke is funnier when recollecting Costello’s and Michael Kroger’s account of their heroic actions as undergraduates against the hard left. ‘Airbrushing’ isn’t a good look for these two slimes. Let’s recount the historical facts, just for a jolly good belly laugh; it’s Friday after all.

When Peter was an undergraduate, he started out as a member of the Monash University ALP club. He was no Liberal then, and he is no Liberal today. Other ALP members of the club called him names, because, at a good estimation, Peter couldn’t get his way. This was unfortunate, because he and his pal Kroger inflicted themselves on the Liberal Party.

Peter cried crocodile tears and complained to ALP machine heavies, and demanded they spank the Party poopers. The gown-ups  gave him a hanky and told him to nick off. He did. At a boozey ’stooodent ooonion’ barbecue of a piss up, the ALP club members gave Costello and Kroger what for, for being a pair of whining cretins who couldn’t get their own way and then ratting. The Liberal ’stoodent ooonion’ Party welcomed them because, no doubt, they recognised in these two brats types just like themselves, and its been that way ever since.

So, Costello and Kroger airbrushed what did transpire. Every Leftist heavy knows it and rolls about laughing each time it is told; an oldie but it’s still one of their favourite jokes.

The Costello-Kroger version is that they were not only engaged in hard intellectual war against the Left, but they risked life and limb. It was real, old fashioned physical violence. They were the equal to someone who literally risked his life against genuinely violent, hard Left thugs, B.A. Santamaria.

Not to be outshone, The HR Nicholls Society held a dinner commemorating the fall of the Berlin Wall, how they destroyed it all by themselves. Oh, darn, Kroger and Costello are founding members of that club of buffoons. Yet, there is genuine competition between them. Unbelievable. Oh, competition in what? The heroism stakes, that’s what:

In a speech to the HR Nicholls Society - why do they bother, they all blather the same rubbish. Oh, I know, each likes to be a star and outshine Lord Olivier or Sir John Gielgud. What are two great Shakespearean actors against the poise and dramatic voices of The Village Idiots Vaudeville Troupe?

Ah yes, in said speech, David Kemp praised the heroism of his fellow, ‘gung-ho’, battle hardened combat warriors but managing to point himself up as the best of them. He is outstanding. Here it is, readers, in black and white:

Tenth Anniversary Conference, The Occasional Address, David Kemp

I am honoured to have been invited by Ray Evans to speak to this tenth anniversary dinner of the H.R. Nicholls Society…

It has been a particularly satisfying Society to belong to, not merely because it has had such remarkable success with its agenda of reform—though some here may think that success has so far been inadequate—but because it creates such consternation among one’s political opponents when they discover that you are a member of the H.R. Nicholls Society.

In the Parliament it still causes that frisson of fear to ripple around the Labor benches.

It gives me the same thrill as barracking for Carlton in the Collingwood stand at Victoria Park.

It is hard to believe that the Society is an organisation which holds peaceful seminars and publishes papers.

After all, no seminar group could have the apparent influence, and blanch so effectively the face of any ACTU Executive member as the H.R. Nicholls Society did. And still does today. It gives me great delight to wear my H.R. Nicholls Society tie into the House of Representatives, and wave it at poor old Martin Ferguson and Simon Crean…

It has been the awareness of that response by those who have defended the system of privilege and elite power supported by the ACTU that has made the H.R. Nicholls Society such a fearsome and feared opponent. But even a debate where victory for one side may be written in the stars cannot be won without champions, and it has been the courage of those who founded this Society and pressed ahead with the case for freedom in the workplace, who rightly receive our praise at this tenth anniversary conference.

That, readers, is only one of many reasons why the hard Left call the Right “pompous asses” and on this count let’s finish Kemp off properly. In the speech he boasted of millions of Australians are reverently and eternally grateful to them, and for representing them. Yes, so successful and so respected, and the “silent majority” such obedient serfs to this lot that they picked up their pitchforks and booted them out of office in 2007.

The Left not only roll about laughing at this lot, they send them up to their faces. Kemp believes hard leftists tremble at his approach, and sweat fear when they see the HR Nicholls Society’s badge of courage pinned to his chest. Now, as every jester knows only too well, the thing to do to conceited, humourless, dim-witted clowns whose bravery consists of holding an office by which they can freely intimidate others is to ham it up.

Jesters approach such types mimicking all the signs of fear Kemp claims to see in Leftist heavies. You know the trick:

The jester drops/tightens the jaw; squints the eyes, trembles the lips, and drops a knee to effect the cowed and beaten look.

Naturally, timing is everything. It is essential to launch it on a stage with a large audience present; this requisite is guaranteed in Parliament House. It definitely works, I vouchsafe it because I’ve pulled it myself: the pompous ass in question was deaf to the titters and laughter of an appreciative audience.

Now, it’s horrible to do this, to relate the bare, cold truth. However, and the duty pains me, it is time to disabuse Kemp of his heroic fantasies. Ditto, his brother Robert Kemp, who would during the Howard years, with a Coalition majority in the Senate, swagger in, sneer and make ad hominem cracks against the Left’s Senators. This was Senator Robert Kemp’s notion of fighting the Left, argument and debate. Otherwise his speeches were typical of the Right, numbingly vacuous.

When it was clear the Liberal Party was gone, and it was plain by 2005 they were defeated in the 2007 election, there was a happy note to the disaster caused by that lot. I took a bet on:

On the first day of the new, Left dominated Senate with an ALP President, Robert Kemp would swagger in as usual, throw out his usual loud-mouthed sneers, cheap cracks and general abuse and, the ALP would joyfully commence humiliating him, roused on by a chorus of hilarity.

He delivered in good form and they did. The President let Kemp sling a few lines and then told him to shut up and sit down. When Kemp opened his gob again, the Senator gave him another bollocking. It took the wind right of Kemp, and his smug smile fell faster than led and he couldn’t hide deep in the leather fast enough from  the ALP senators  rolling about in their seats laughing uncontrollably.

Gad it was hilarious and, best of all folks, the Right that hold all Victorian seats in the Senate give the Left a good laugh each day it sits, a belly-aching laugh. It is  hilarious listening to that lot because they really believe they are inflicting pain. Ah, they are, laughter can be painful. Helen Kroger excels at inflicting pain:

“Can the Minister guarantee the armed forces will receive their slouch hats this year?”

Now, I was crumpled up as it was but then I caught a snatch of this genius saying:

“And undies.”

It’s very difficult, readers, listening when the listener is drowning out the speaker. But I caught another word, “socks”.  Some readers can recollect that in relating how the Kroger gang did the routine (Helen’s ‘candidacy’ for the seat was rubber stamped by the branch selection committee), I stated with certainty that in the Senate she would leave the script she’s told to parrot and, believing herself formidable, open her mouth and the House would collapse in a gale.

The retarded cretin is so dense that as one no-nonsense, restrained silver-back said, “When she enters a room, the heating has to be turned up.” I dispute the gentleman’s claim. It is, uncommonly unfair of him to the lady and her talent. Chivalry demands she be praised fulsomely, to the hilt of her gifts. Helen Kroger ices polar ice caps and plunges the tundra into the winter freeze.

Wall Street Journal slams the diseased Democrats and “Hugo” Obama “Chavez”.

The article:

The Cap and Tax Fiction

Democrats off-loading economics to pass climate change bill

WSJ,  26/06/09

Change a few names and it could be the WSJ knifing the CIS and Greg Lindsay.

There is one problem in the article that blunts the proper evisceration of carbon taxes:

The hit to GDP is the real threat in this bill…

The consumption fallacy. There is no consumption before production. Concern over how much it will cost consumers not only understates by a tremendous factor the cost of carbon taxes but misses the essential point.  Business spending is 2/3 of total spending, this is the crucial figure and it squares with what should be obvious. Before consumption can occur, consumption goods have to be produced, and before this can be done, capital goods have to be produced and this is not a single stage matter either -

Capital goods to produce capital goods. Capital goods for capital goods to produce raw materials to be converted into materials needed for fabrication of capital goods.

Carbon taxes destroys this complex production structure. Once this is destroyed, where on earth are consumption goods to be obtained, from elves?

It should be transparent. After all, companies work with this every day but what do we see palmed off as sound economics in the mainstream? Nothing about capital. It, apparently, just exists. Accordingly, economic activity is at best two phased - final capital goods and consumption goods, and yet even this silliness begs the question.

It is the  garbage the Right and the CIS and IPA have pumped out in the name of economic theory and analysis. Making it funnier is when the IPA’s and CIS’ claim to be free market think tanks and warriors because the claim means capitalism and these two clunker tanks are blanks.

Best of all, the CIS claims to be expert s on Hayek, but this means Austrians school economists. It means Austrian school capital theory and they don’t have a clue about it at all. Their scribblings vividly demonstrates this fact, sharpened by the sheer infantile, unadulterated muck their ‘output’ is. They are on the same planet as the HR Nicholls Society, the planet of organ grinder monkeys.

The WSJ committed a bad mistake in an otherwise good article. It lets those who are about to wreak great carnage off the hook. On the Australian scene, it is one of many reasons why the hard Left are on top, and why the Greens are beginning to eclipse the Liberal Party as a major Party - certainly in Victoria. That is the rotten, hard fact of the matter; the Greens can be destroyed on the count of capital theory alone and what do we see from the Right

1. Stupidity reinforced by ignorance and half wits pretending to be economists. No bloody clue at all.

2. The Right supports the Greens cult and carbon taxes. Two of their starlets are Malcolm Turnbull and and one of Kroger young tyro toadies, Greg Hunt, as the rubbish they spout makes very plain. Liberals, defenders of the Free Market… lying thugs need to corrupt language.

This is what pretends to be warriors for Liberal causes, for the free market cause. And now we have Greg Lindsay and his CIS baboons and monkeys campaigning for carbon taxes. Oh yes, Lindsay, the questions over the reasons for this treachery are doing the rounds. Donors cutting off the ‘philanthropy’ is a pretty a good indication of how irritated various types are becoming.

The not  trivial matter of GDP aside, the rest of the article is not bad, and this paragraph nails an error by correcting it:

The reality is that cost estimates for climate legislation are as unreliable as the models predicting climate change. What comes out of the computer is a function of what politicians type in. A better indicator might be what other countries are already experiencing. Britain’s Taxpayer Alliance estimates the average family there is paying nearly $1,300 a year in green taxes for carbon-cutting programs in effect only a few years.

Cost estimates, as ‘climate modeling’ and, indeed, ‘economic’ modeling, is a futile exercise. The only predictor of what can unfold is solid economic theory. To repeat, Mr. Jackson of Brookesnews has laid it out from within an elegant, solid, impregnable body of theory the economic force of carbon taxation. He has not asserted estimates of costs and this is the correct thing. The evidence rolling in confirms the explanatory power and conclusions from sound theory. That evidence shows:

1. Carbon taxes have already caused tremendous destruction of capital

2. From 1, very many around the world are being made poorer, forced destitution is erupting as employees are thrown out of paying jobs because companies have been destroyed by carbon taxation.

3. The destruction of capital is compounding, unsurprisingly, as politicians persist with this savage crime against millions of firms and people. That, even without Obama imposing by totalitarian decree even more savage carbon taxes, unless stopped, many face a nightmare of a future. But Obama, and Kevin Rudd, Wayne Swann, Penny Wong, Peter Garrett, Bob Brown, Malcolm Turnbull, Greg Hunt, and the rest of the Green Cult worshiping Right are bent on ramming down carbon taxers. Not to overlook their record:

4. The Left and the Right in Victoria have already rammed down carbon taxation and they are causing real damage.

5. In Federal Parliament, the Right imposed carbon taxes in the form of ‘alternative energy’ frauds. One of these frauds, ethanol production, is destroying agricultural production in other countries.

6. The Right, and not only the Left, want to expand ethanol production. This means  stealing vast amounts of capital from Australians and destroying food production in Australia. The Costello-Kroger trumpeter, Andrew Bolt abuses his employer the Herald Sun and it’s readers by running propaganda for this starvation causing carbon tax - a violent criminal action is what it is.

Greg Lindsay and the Right spin the lie, subsidised entities are real businesses. A business is a market formation for the production of goods demanded. Entities set up on subsidies are not market formations at all. They are scams. The alternative energy schemes are not only scams. They are also carbon taxes destroying real capital in real firms that are economically efficient producers of energy, food, capital goods and all sorts of consumer goods.

7. The Right and the CIS have joined in the aim to destroy sound firms. David Kemp was one of the Right-wing Ministers who did much to bring this savagery about, as Minister of Voodoo the Environment:

8. David Kemp imposed extensive measures demanded by diseased Leftists and the fanatical, violent Greens. This idiot has the nerve and the gall to declare in public that he has fought the hard, diseased Left, and that he is the terror of the Left.

The Left do not merely laugh at this stupid bastard. The Left also acknowledge how well David Kemp served them as a Minister.

David Kemp’s record as a Liberal Party Minister reduces to:

- He’s betrayed the Liberal Party and helped his pals wreck it. The Victorian Division is finished, kaput, doesn’t exist, shot stone cold dead and buried some years ago by the Right. This is besides the work they did in preparing to usurp the inalienable Rights and backed Bracks and Brumby on completing this and this is only a couple of items of their thuggery in Victoria.

- With his HR Nicholls Society mates, Kemp is also culpable for the destruction of the campaign for free labour markets.

- They blew the Liberal Party out of the 2007 election waters and not in 2007. This success was complete by 2005!

- A Minister who never served modest Australians but, with his pals, the Right and the clunker tanks, has regarded modest Australians with undisguised contempt:

Smelly serfs to be abused and dictated to, taxed, punished.

This bastard has the hide to boast of how he has defended Liberty. And, this is what is the current President of the Victorian Division of the Liberal Party.

It is no longer the Victorian Liberal Party. It is the Right-wing clique, Toorak Brahman - Doctors’ wives Party,  headed by Clique Party boss Michael Kroger. That’s why the real membership has plummeted from around 30,000 to at best 1,000.

Choke on all of the above, Greg Lindsay, you treacherous, craven, gutless shit shoveler. The good news is, Greg Lindsay wears an attachment. It is an irremovable growth on his neck.

It is a monkey. It is Lindsay’s pet. It is paid for by Ron Manners. Its name is Bongo Drongo. Bongo Drongo is ape-speak for, John Humphreys. For the first time in my life I’ve enjoyed visiting a zoo and hadn’t realised it is a real zoo, and in Sydney! It is the CIS. Bonga, Bonga! Oo, oo, ooo!

Here is more on how destructive Obama’s carbon taxes will be:

Waxman-Markey: Man-Made Disaster, Investor’s Business Daily, 25/6/09

Fiscal Policy: The House of Representatives is preparing to vote on an anti-stimulus package that in the name of saving the earth will destroy the American economy. Smoot-Hawley will seem like a speed bump…

The 1,000-plus-page American Clean Energy and Security Act (H.R. 2454)…

The damage is due to the same cause as for the water crisis in Australia. Meddling, ignorant politicians and their advisers willing to sacrifice Australians in the name of the cult of environmentalism and its offshoot, ’stop climate change’.

This is false: ‘whom the gods wish to destroy they first render mad.’ The gods don’t have to do a thing. Australia’s politicians are not mad, they are stark raving, psychopathically mad without any help.

Victoria faces no water shortage. It faces a catastrophe because of those determined to stop building massive dams on the Mitchell River and the Otways. It’s not for the lack of water Victoria faces disaster. Not only the Left but the sclerotic Right too is cupable for what amounts to a criminal action against Victorian. Likewise on energy.

Speculation is rife as to whether current production capacity is adequate to meet electricity demand during this hot week. The problem is, when he was Premier, Steve Bracks imposed a cap on firms scaling up capacity, which includes building in spare capacity above long run demand; they do this to ensure supply under any conditions. All this, Steve Bracks and his fellow gang of thugs, ably supported by the stumped Right, eliminated. 

Oh, and widespread blackouts, over long time periods have been a regular event since Bracks and the Right scuppered the coal based companies. Between what has been done to firms in Victoria and Federal carbon taxes, they have struggled to engage in mainetenance level investment, as related last year - thus the blackouts of increasing frequency and duration.

Carbon taxation compounded the damage, the companies are now starved of capital. This is besides another abuse of the firms: the State Government treats them, and the water companies as their private slush funds and sacks capital funds to prop up its massive spending spree (1). Needless to say, the Right in Victoria, as reflected in both State and Federal Politicians, happily support the economic sabotage perpetrated in the name of the above two cults.

Malcom Turnbull must be advised by the CIS. He’s convinced ‘alternative energy’ can be ‘economic’. Greg Hunt’s (Federal Shadow Environment Minister) pet ‘project’ is “wave energy”. As with “wind power”, the dis-economies of scale of ‘wave energy’ are so abysmal that, if they were consistent and demanded an immediate total transfer to ‘alternative energy’, they would be as guilty as Rudd, Wong, and Garret of destroying Australia (direct carbon taxes will do this anyway), immiserating millions of Australians in the time it takes to bat an eyelid.

Here’s the shock. Victorians, already saddled with the fraud of wind power, are also burdened with ‘wave power’. The location is Portland. The ‘plant’ is nominally rated with a capacity of 29 megawatts. To put this in perspective:

Current capacity for Melbourne is roughly 10 gigawatts daily capacity, and this is not adequate, as blackouts magnifies.  The Portland ‘wave power’ plant, therefore, is worse than trivial. As of windmill energy, it can be regarded economically as zero output.

Notional capacity only because, as windmills, wave power plants achieve only a fraction of  claimed capacity. Even funnier, wave plants cost 6 times (- minimum) more to build and maintain than bloody windmills. These are costs before counting in the tremendous economic losses caused. They also have to be replaced, frequently. Storms destroy them.

What we have in Victoria is politicians, the Right as well as the Left, who are deliberately cutting the efficient production of energy by coal based companies, while stealing from Victorians to prop up ‘alternative energy’ frauds, further damaging production of energy.

Malcolm Turnbull and Greg Hunt are economic ignoramuses, as well as scientific oafs. Turnbull believes forcing prices up induces consumers to use electricity and water efficiently. The opposite is the truth. 

Victorians are being forced to pay higher prices as supply is deliberately cut and diced by politicians. As for companies, bluntly put, coercion is used to force them into loss making levels of production. This is, though, OK, because the Right find real production as aesthetically offensive as the Chardonnay guzzling, “Intemperate Left” do. Lawyers and tax collectors are real enterprises, according to the Right; so, they will be plugged into the power grid ?

There it is. It is not simply the Greens and diseased Leftists. It is politicians and their advisers,  Right as well as Left, who are guilty. To illuminate this:

Tasmania is the bastion of the Greens and yet the Tasmanian Goverment built a massive dam on the Meander River. It seems in Feral Land, Tasmanian politicians will only indulge Green fanaticism  to the point where the danger of being electorally slaughtered by angry serfs is incurred. Not on the mainland. Serfs should know their place and die without complaint.

John Brumby has established an Electricity Police Unit

The Water Usage Police was mentioned in, Water company tells Victorians to ’sod off’:

“An office of some sort has been set up, stuffed with peas for brains dribblers, whose “job” is to annoy the dickens out of Victorians, ringing them up and at any sodding hour of the day or night, and telling their victims:

“We are here to help you save water. We are here to discuss with you how you can save more water…”

“The friend must be very polite to have let them get that far. She cut in, “Yes, I have something to discuss and need your help with: I want to increase my water consumption. You can sort this out for me.”

“They are squawking buzzards, for she heard multiple gasps over the phone. The slimes went into shock. Understandable, I mean to say, she had a nerve defying Deah Leadah and his goons.”

Tuesday evening, last week, 7 o’clock, about to sit down to dinner, and the telephone rang.  It was the Electricity Usage Police. The goon rpomptly and pompously declared, “The State Government has announced a new electricity usage initiative. I am here to discuss with you how to cut your usage…”

To avoid letting loose, I cut in with a curt: “You lot have done enough damge already.  We are being forced to pay sprialling prices for the privilege of the government deliberately eradicating supply, sweltering in summer, and freezing in winter. We have been forced to do too much already by you lot. Goodbye.”

CIS and the  Peony Company

Satiating the Greens’ god of death requires,  as the Right as well as the Left happily aknowledges and thirst to ram down, totalitarian measures. People, individuals, their real rights, can get stuffed, and all in the name of a cult devised by diseased, fanatical Leftists. The following article indicates something else:

China dams reveal flaws in climate-change weapon

I draw attention to, the mention of the involvement of foreign ‘companies’. One such company is the Peony Company. One of its directors is also a director of the CIS, Peter Yates. His brother, Oliver, is head of MacQuarie Bank’s ‘alternative energy investment division’. The CIS is lobbying for carbon tax destruction day and alternative energy scams.

The conflicts of interests, as the two names indicates, means Greg Lindsay has a much to explain to genuine Liberal members of the Liberal Party( since their fees and so party funds have been siphoned off into the coffers of the CIS, and to shareholders of companies that have funded the CIS will be smashed by ‘alternative energy’ and direct carbon taxes.  

He also owes an explanation to all those millions of modest Australians who will be ruined because of all this. Go on Lindsay, have the guts to defend what you advocate, before modest Australians, face them directly and tell them what fun it will be. What a great deal it is for them to be immiserated while spivs get rich through scams set up only by coercive government or, rather, idiot politicians asserting coercive power against Australians.

Go on, Lindsay, it’s your CIS, it’s the position of this anti-free market clunker tank, your fat super fund. Defend what you support, the fraudulent claims mounted in the lobby paper. Go on, Lindsay, tell modest Australians how destitution is an innovation and the good life. Tell the serfs, now being thrown out of paying work thanks to the RBA and politicians, why permanent misery is fine, fine fine.

 (1) Which is the reason for ‘privatisation’ ( as opposed to rebasing those firms as genuine free market enterprises) as Kennett proudly explained last year. This is what the Right, with their advisers inclusive of the CIS and IPA did to Victorians - set up Vic. Inc., which paved the way for Brackistan.

I know why Chris Berg insists on being called “ESS”. He is the masked crusader and this jogged the old grey cells. In dress he is Miss Piggy. There was a news full sized photo of this super hero, in the gay Mardis Gras. It figures, it’s Chris Berg ‘to a t’.

“ESS”, as the masked one likes to be known as, is understandably upset but there’s no getting around it, I’m not publishing a photo of him in alter ego, it would be bad for the indigestion.

Insistent on, he’s not Berg, he’s rather emphatic, is more than a tad suspicious. It takes a petulant adolescent to bang on as ESS does. His whine is on the same level as the cranks who apply for the James Randi million dollar challenge, when the time comes for them to show their amazing powers. They first try to wriggle out of the commitment and when that doesn’t work they come out smearing. Oh, and another of their tactics shows up, like many of them, ESS, alias Chris Berg. pretends to find some condtion which is unjust to him, not fair he cries.

What on earth are you on about ESS? It’s you who made the claim, the free market cause does not need Jackson. It’s you who committed yourself to writing a searing paper on why so. I offered to publsih it, and you rejected this, because you consider my site “inconsequential”. You declared you wish to to be published on Brookesnews, and I agree that that is an admirable decision, though why you couldn’t have contacted Jackson long before you started throwing tantrums, is beyond me.

I mean, does the chump realise how silly he looks in public? Of course he doesn’t, or else he would simply submit his paper, to Brookesnews. I am happy to publish it entire but, it really is more honest for “ESS” to confront the man directly.  Bye the bye, what, ESS is this supposed to mean?

ESS wrote:

Is that a yes? or a no? just say it “Douglas”.

You have to contact Jackson in order to have it published on Brookesnews. Of, course, if that is what you mean, you will contact Jackson, then yes, go ahead, all my blessings and what not on top. How hard can it be? I mean to say, it has a contact button that pops up the email form immediately. Readers are impatient, they want to see you deliver on your promise, that you can demonstrate in searing style why Jackson is not needed. Lookl at Cicero, he has given you a right good working over for what are some pretty good reasons. Bye the bye, you’re not gutless Chris Berg?

 It is a minor note, but it might have serious force. ESS wrote,

“While the blogosphere quickly determined that Dr Sharon Gould was really Katherine Wilson, I regret to inform that I am not Chris Berg.”

A very odd comparison to make because Wilson perpetrated a hoax, managing to get published a bogus paper in Quadrant, and Quadrant didn’t pick it up! that’s the funny bit The point to it is it’s a Leftist ‘tactic’ they call “culture jamming”, pretending a hoax is a serious position in order to attack oh, let’s see, free markets -oh let’s cut it short, all that the Left wishes to destroy. They needn’t bother, the Right are doing a splendid job in destroying grave causes that must be won against the diseased Left.

 Now, I’d never compare anyone on the Right to Wilson and co. The Right is a standing joke in their own right, a rather black one. The material they publish is not a hoax, they do purvey their rubbish as the truth on serious matters. Accusing this lot of intellectual fraud, it assumes they have the intelligence to draw the distinction.

What the Right and their clunker tanks fear is exposure and the risk of being cut off company funding. Here’s the rub “ESS”, I engage in my own ‘activism’. I work on company diurectors and executives, to get them to read not only my site, but also Brookesnews and this is why I do it:

CIS, IPA and HR Nicholls Society have caused tremendous damage that has to be rectified, before the diseased Left can be pulped. Companies need soudn advice, it is urgent because, even if they don’t fully appreciate it, they are now in an ‘ideological’ war in which their very survivial and Australia’s is at stake. It’s not a game, as what carbon taxation will do demonstrates. It means demonstrating to them what that lot really are. It is also crucial to direct them to sound, solid economists engaged in defending free markets. It means getting them to the point where they will stop wasting shareholders’ funds on a pack of ignorant, gutless fishwives who give a damn for one thing only, themselves. Steve Edwards’ reaction to my articles on the STO and OPA, same in tone as “ESS” shows what a stupid and callous but self centred, naval gazing cowards this lot truly are. In short, it is as a genuine Liberal, out of principle, I do this.

Contrary to ESS, it has never occurred to me to do what the CIS and IPA do, knock on company doors, begging for money, and I would cringe inshame if I even dared contemplate it. I’m not out after money at all, not one cent, ESS . Jackson’s site is self -unded. He doesn’t beg, as his site makes plain, unlike those of the IPA and CIS, with begging bowls proudly displayed on their home pages.

It’s principle that drives me, ESS. Any who read Jackson can readily observe it drives him to. It’s plain to see, principle and real concern shows through his articles.  How dare, you ESS, insinuate to the contrary. Just because your chums are parasitical bums, not all Australians are, and you spit on all genuine, free market Australians also concerned to fight.

Septuagenarian Des Moore still remains an adolescent locked up in an elderly gent’s body. So, what hope for the rest of the tantrum throwing Right? This is their typical response to challenges. This lot believe they do not have to defend what they propose. They believe they should not be held responsible for real damage they have caused, as their singularly infantile footstamping response to the expose on the STO and OPA showed rather well.

So, here we have ESS, stamping his little feet, trying to smear Jackson on MT through slimey insinuations and now continues to prattle on in a very lame attempt to weasel out of his commitment to write a paper demonstrating his claim. Chris Berg in action. ESS reflects the calibre of the CIS and IPA.

Now, be a man ESS, contact Jackson. I look forward to reading your paper on Brookesnews. It’s up to you ESS to put up.

Now, this second item of the day is it for the week. I’ve been called away, unfortunately. I will be back in the saddle Tuesday, 20/1/09. Unfortunate, because roasting toads is fun but, hey, it is something to look forward to, coming back and picking up the cudgels again.

That is what ‘Industry Policy’ is, and it destroyed, thankfully, the Soviet regime.

Reagan, though, did give it a ruddy good shove over the cliff with the arms build up - the expense of keeping up with the Might of the United States finished off the rubble that diseased Leftists hailed as the miracle economy. Yet this only agrees with the rule, central planning, besides involving increasing absolutism, has only one conclusion, economic annihilation.

Last week, Senator Abetz, leading the Liberal Party, believed he had Kim “Il” Carr’s number over the contraction in manufacturing. Not one of them, Abetz, Turnbull, Bishop, the CIS and IPA, can connect it to keynesian arsenic and this is damnable as it is. They seem to believe the decline in manufacturing only commenced under Rudd, Swann and Carr, in the last few weeks.

Abetz accused Carr of poor industry policy, driven by even lousier advice, and called upon him to implement stronger measures. Needless to say, Carr thanked Abetz for his question, profusely and then observed, a year in Office only is hardly sufficient time for his policies to bite, and that, since it is his first term as ‘industry’ minister, some early errors are natural. He will perfect, he continued, industry policy. He then went on the offensive, stating and with an element of stinging truth to it that the Coalition had 12 years in Office to do something about manufacturing. I will be posting the text of the exchange from Hansard, but for now this summary of it suffices.

Some readers will spot the trouble, unlike Abetz. Abetz only witlessly called for far more exhaustive Soviet style central planning and to be implemented quicker than perhaps Kim “Il” Carr feels brave enough to stomach (electorally). One thing is clear, how ignorant and thick the “Right” is has not yet been plumbed, the bottom of the ocean of stupidity is not yet in sight. Carr, naturally, was delighted with such a coperative question.

It’s not simply the arrogance of “Rightwing” MPs and their staff advisers. It’s also the advice they receive from the think tanks that is not only destroying major, grave, causes and their is non greater than the fight for free markets - by definition, capitalism. The HR Nicholls Society, the Institute of Public Affairs, and the Centre for Independent Studies, have each caused grave dmamge and carnage and to cap it off, they do not give a stuff about the impact of it on Australians. The CIS amplifies the contempt in its lobbying for economic destruction day through Co2 taxes.

We have to turn to them, the clunker tanks, in order to explain Abetz’s stupidity. It is they who paved the way for Soviet style central planning under Rudd and Kim “Il” Carr.

A matter of months in office only and the Cabinet was already making it plain they are out to destroy free markets and impose central planning. What did the “Right” have to say? Nothing then and nothing now. It is clear why they don’t see anything wrong with it because they are economic voids. Indeed, under Howard the “Right” within Cabinet, and their clunker tanks had pushed much prepared the way for what Rudd and Carr about to do, immiserate millions of Australians by central planning. Now we see Abetz demanding it be imposed rapidly and exhaustively!

The Opposition’s position is not accidental. Though illiterates, they have great ‘intellectless’ support and here is the telling paper, by Professor Sinclair Davidson and Chris Berg:

Thumping the Table: Key Questions for the Labor Party’s ‘Industry Policy’ (IPA).

The paper is badly written, soporific, immature, superficial, and also calls for carbon tax destruction day. These two geniuses, Davidson and Berg, effectively demanded Kim “Il” Carr impose “Industry Policy”. In the process, to remind readers again, they dismissed production as nothing more than a trivial home cottage knitting needle exercise that won’t be missed if it is wiped out. When I showed it to heavy-weights in industry their reaction was automatic - shock, disgust, and more than a mild dose of irritation.

Due to the seriousness of what Davidson and Berg put, Jackson criticised the paper, as he mentions in the beginning of a devestating article:

Is monetary policy destroying the country’s manufacturing base?

To repeat some of my previous remarks on Jackson’s paper:

1. The clear concern in the paper is not simply the damage money creation (which is inflation) does. The concern is also the capital structure in Australia might be less than is assumed.

2. Secondly, it is plain that Jackson is working within a framework of relative prices. Davidson does not; he works from aggregates. Monetary expansion disrupts the framework of prices which informs and guides entrepreneurs and thus this does the damage.

3. In launching into the paper, Professor (economics) Sinclair Davidson did not consider the inverse of the J Curve. The J Curve is true, so its inverse must be true. Jackson raised the inverse as a consideration in his paper and that, ladies and gentleman turned the paper, already a solid demolition of the Davidson-Berg Paper, into a devestating, shocking exposure of what those two clowns set out.

Consider it, there are those who are saying the recession will follow the J curve. Ohers are coming up with novelties such as v curves - heck, why not a w but let’s pass over this nonsense. With none I’ve listened to so far has it gelled that the inverse of the J curve is a possibility. To repeat, when I mentioned it to a CEO, his jaw dropped.

Well, we now face an imminent danger from the Rudd Cabinet, before carbon taxes, on the strength of central planning, through Kim “Il” Carr. It’s due to the “Right”:

That Davidson and Berg did not nail the contraction in manufacturing to keynesian snakeoil is not a failure on their part. To say so is to assume they made an effort to come to grips with the cause, and this assumes some level of intellectual activity occurs within whatever resides in their craniums. No, there is nothing there, and so there can be no economic grip, as their fascile dismissal of manufacturing makes plain. They don’t have a clue about what they pontificated on.

In failing to nail the problem, they showed the complement, not even a hint of what the cure for arsenic poisoning is. Keep this in plain view - the work of recessions is to wipe out malinvestments. It means good capital wasted, and unemployment, but it’s part of the cure (the RBA and its officers have a lot to answer for). What do these two geniuses make of it all? They play games, “footsies”, with the concerns of adults.

In their stupidity, missing the nail that would seal a coffin, they compounded their grotesque errors by proceeding to call for “Industry Policy”, again bereft of any suggestion of a clue as to what it means, the destruction of capital and immiseration of Australians. Given the response of these two buffoons to Jackson’s paper, they also exhibited the “Right’s” contempt for Australians. The “Right” do not give a fig about the impact on Australians of rotten measures, the carnage they cause.

Thus, Kim “Il” Carr knows it is safe for Rudd and him to proceed with the imposition of Soviet style central planning. Abetz made it plain it is safe for them to proceed, because Abetz and the other idle bludgers occupying
precious Liberal seats are ignorant and kept in ignorance because they are briefed on economics by the clunker tanks. Abetz’s performance is a fitting tribute to his tutors, Professor Sinclair Davidson and Chris Berg.

Berg’s and Andrew “Andy Pandy”Kemp’s development was arrested in infancy. It pains me to agree with a diseased Lefist, it is very painful, but on this I cannot fault John Quiggin who has observed Professor Sinclair Davidson is as nearly retarded as those two kids. I mean to say, Davidson is so hot he couldn’t even identify the point to the Laffer Curve, which Rudd and Swann, and States’ Cabinets are busily defying to the ruination of millions of Australians.

It was put as a question in the article, Centre for Independent Studies are lobbyists? (20/8/08).

The evidence is incontrovertible but, because of the implications, it was proper to give Greg Lindsay to say to the contrary.
Centre for Independent Studies and the Institute of Public Affairs are treated as charities and thus protected against taxation. This treatment also means they are free to make profit in certain types of investments at a very small percentage of a tax rate, if any tax. This a nasty irony since they wish to wipe out the capital entirely of many companies via Co2 taxation. Naturally, donors enjoy full tax deductibility for their contributions. The amusing thing is, the Lobby business is a business, and so not tax sheltered at all.

The inference is stark naked. Both the CIS and donors, on whose behalf they are lobbying for the imposition of Co2 taxes, are in breech of the tax regime. It follows that an ATO criminal investigation into all of them is a prospect Lindsay and those ‘donors’ now face.

This item, curiously enough, does a kindness to Greg Lindsay. Doing the CIS a kindness is not even in my vocabulary. Ah! the twists and turns of outrageous misfortune. If, after all, one can draw such inferences, so can the Australian Tax Office.

The Australian tax regime, and how it is enforced is hideous, with real entrepreneurs running real firms being targeted and then treated as the most dangerous criminals in Australia by ATO, and Judges who no longer give a stuff about their real duties to Australians. The ATO spies into affairs none of its bleeding business long before the victims find out (when they are suddenly on the receiving of stasi-land, pseudo-criminal charges and a gang of heavies shoving their fists into their victims’ faces). However, an ATO investigation into the CIS and the interests it serves by lobbying for Co2 taxation is an exception: it won’t disturb me, unlike ATO’s persecution of genuinely productive enterprises, their owners and entrepreneurs driving them.

This is what Gregg Lindsay gets for taking on cretins as his guns, and then lobbying for the economic destruction of millions of Australians for the benefit of a very few larcenous parasites:

A heap of trouble Lindsay was blind to and is still blind to, and it shows. If he were brighter than he is, he would not have crossed the line. Now he has to look over his shoulder to spot whether the ATO is running after him with a hatchet.

There isn’t much point in him turning to the interests he’s lobbying for. These treacherous, larcenous bastards don’t give a stuff about him either. Besides, now that the penny is dropping, they will soon enough, if they are not already, be trying to hide from the ATO too.

PS. It occurred to me long before that there are real problems and did publish indirect warnings on this site. Not only the CIS, but interests behind the horrendous, criminal Co2 tax scam obviously chose to ignore them. How stupid are they? Since they are still diving to the bottom of the ocean, it is impossible to tell.

It was predictable. Capital in the coal based energy firms is being extinguished. Victorians face blackout. The CIS, and their pals, all otherwise busy wrecking the Liberal Party, also have a lot to answer for.

Rotting Yallourn power station infrastructure threatens supply

The firms are starved of capital, just for maintenance , before increasing capacity.

“Industry sources say years of under-investment in Victoria’s electricity infrastructure…”

Infrastructure infraschmuckture. It is investment in capital goods for energy production at stake. The firms are not starved of capital; they are dying from hunger. The existing capital is being extinguished, as a nasty twist makes plain:

“ENGINEERS at Yallourn power station built a barrier of shipping containers in front of a giant turbine in case its cracked blades flew off.”

Minus the sheer brutality, here we have an echo of the communist Russian - Soviet Union regimes. Though, far worse, the Soviet factories were as good as the gulags, and death traps, reflected in the high death and maiming tolls. Here we are, in Brackistan; employees face grave dangers because the firms cannot raise capital. Somehow they have to maintain production of energy.

Luke van der Meulen, Victorian district president CFMEU in Latrobe, is in error in saying:

“These power stations are old and, if things were normal, there would be new stations built if the place wasn’t privatised.”

Not ‘privatised’, but if genuine free market enterprises, and if Co2 taxes were not axes over their heads, capital raising, capital maintenance scheduling, and increase in capacity, would have proceeded. It’s called long-term planning, something ‘governments’ are incapable of. There are several problems involved that need to be re-iterated, and are greatly compounded by Co2 taxes:

1. The Kennett administration split electricity supply into producers and retailers. This isolates producers from consumers, reinforced by regulations. This serves one of the aims of ‘privatisation’; the producers are treated by State ‘government’ and local councils as their slush funds. Revenue extraction and its impact is concealed from the immediate gaze of the public. This is the basis for what Bracks and Brumby then went on to do.

Bracks imposed a per tonne tax on mined coal. On top of this, the production companies and the networks are required, under another “Act” to hand over a percentage of their revenues to the windmill scam. The scam is a Co2 tax as well as a criminal fraud. This is not a complete list of the burdens that have been imposed on capital.

Capital required to maintain existing capacity, and also building in greater capacity than is currently required in the short term. The second takes care of any irregular spikes in demand and long run estimates of demand. This is long term planning. That is what the Victorian coal fired electricity producers were planning to do, when Bracks stopped in.

Steve Bracks, when Premier, capped how much they could invest for maintenance. The cap was far less than they required. It was easy for him to do this, because as privatised entities they are under effective control of the Executive. ‘Privatisation’, not genuine free market establishment, was what Kennett, Stockdale, and their advisers in the IPA and CIS did to the firms and to all Victorians.

It meant the destruction of capital for the very reason, failing to meet the capitalisation requirements of maintenance. In the first instance the Executive has been bleeding them of revenues they need to retain as capital. What Bracks decreed compounded this. At the time, when Bracks imposed his particular carbon tax - this was the reason for his decree, I predicted we would notice it in power blackouts and it has proven out.

2. When Rudd first announced he would impose Carbon taxes, by March this year, the market wrote down coal based firms by $40b dollars, and still falling.

3. To repeat other cases:

In the face of the Japanese Govt’s. determination to impose a carbon tax, Toshiba and Orix abandoned their plans to build a large scale - a massive scale, coal powered plant. The reason, the Japanese Govt’s. proposed taxes meant the liquidation of the capital.

Investors in energy companies face ’sovereign risk’: govts. slashing their savings by carbon tax. What we are seeing is not only capital in those companies being consumed, but also investors in increasing numbers not supplying new capital. What would be the point?

Dixon of Qantas, and Caltex both attacked Rudd’s carbon taxes because it would wipe out the capital in both companies.

5. Other cases cited include:

“Soaring gas prices will lead to 7,000 layoffs in plastics sector

BRITAIN’s plastics manufacturers, which make goods as varied as toys, bottles, artificial hips and car bumpers, will this week warn energy minister Malcolm Wicks that 7,000 jobs are at risk in the industry because of crippling energy costs.”

Tony Blair and Gordon Brown assumed a Carbon tax need not cause carnage. Wrong.

Carbon taxation wipes out electricity production in Britain and Gordon is eager to ram down something nasty on top

Carbon taxation has compounded the impact of Kennett-Stockdale’s conversion of the firms not into genuine free market companies but as pseudo-market entities with all the bad features of the old State monopoly, a slush fund to prop up squander by the Executive. Bracks and Brumby have compounded the damage with their carbon taxes. Rudd then knocked the stuffing right out of them by announcing his Great Leap Back to the stone-age carbon tax plan.

What other effects:

Electricity to firms as factor input finished. What about consumers? Lives of Victorians are also in danger. The smashing of energy production will do this, kill Victorians.

Britains are already becoming familiar with the real dangers smashing energy productions entails. It is not simply ‘government’ but: What stupid, cretinous politicians and their advisers are culpable of is criminal. These bastards are busily palying merry hell with Australians, their prosperity and their lives. This is a litote:

The CIS and John Humphreys made a major blunder, before they published their call for carbon taxes

The Centre for Independent Studies

They didn’t, as it emerged, blunder. They have deliberately deceived some donors - not all as it turns out as below. They have damaged the solid and thus highly moral cause for free markets. They have done their bit to wreck the Liberal Party and decieve Liberal Party members, and Australians in general. Best of all, they are serving interests who hope to make billions out of larceny through the type of carbon tax called ‘cap and trade’. The conflict of interest is direct.

a. Mr Peter Yates, a Director of CIS
and a Director of the Peking based Peony club, set up to ferret billions - where? In Swiss bank accounts? I’d like a Swiss bank account, but not by their rotten way.

b. His brother, Mr. Oliver Yates is “global head of climate change products, Macquarie Bank”. Another figure who has a conflict of interest is Alan Stockdale, head of MacQuarie Bank’s “Infrastructure Group” (MIG), and is the current Federal President of the Liberal Party.

‘Alternative energy’ schemes are not market - customer-serving formations. Macquarie Bank’s main major activity is in countries in which - surprise, surprise, Governments are engaged in large-scale larceny to set up and prop up ‘alternative energy schemes’. Namely, Britain, Europe, Canada and the United States.

If they were investments entrepreneurs and investors would have volitionally established real, profit earning companies. That is, real capital.

Investors in markets have said the future in ‘alternative energy’ does not exist. They are only ‘get quick rich and sod the peasantry’ schemes for principals behind the scams, and those who set them up -politicians, bureaucrats, and their advisers. An axis of destroyers of investors’ capital - grab it and smash it.

Here’s a laugh

The CIS argues as the Greens do:

If you tax and so destroy capital, this will make it economic for ‘alternatives’, make them competitive and bring them on quickly. Here we are in Brackistan and capital in coal based firms is being liquidated and, there is nothing to replace them.

Oh, nuclear energy. Well, some of their pals are all for this. Nuclear energy is not competitive, not in Australia, nor Japan. Australia has an absolute advantage in coal based production. Nuclear based energy requires, in Australia, large subsidies, billions of dollars. This, taken with the destruction of clean (and they are clean), efficient coal based production instantly means falling pay to Australians.

Hugh Morgan, as one of their friends in the HR Nicholls Society, hopes to clean up by this Co2 tax act of larceny. With his mate Ron. Ron is familar with larceny, in the form of the Grand Prix, the Commonwealth Games, and the subsidisation of The “Spencer Street Soviet” Age, courtesy of Bracks and Brumby. Morgan collected a hefty packet for destroying a multi-billion dollar company. It is understandable why they’ve locked onto the latest wheeze. Their expertise in ‘entrepreneurship’ is demolition of efficient firms in favour of shelter workshops for cretins like them.

How many more associated with the CIS, IPA and HR Nicholls Socviety hope to clean up by larceny on the back of the driver, the perpetration of what is a massive crime called CO2 taxation and Kyoto compliance?

Contrary to these parasites, being wiped out by Co2 taxation means no future at all. It’s just that it will be many Australians who will be wiped out before this lot feels pain - but this is typically so of the mendacious ignoramuses of the scrofulous “Right”, and not only the treacherous Left.

Andrew Bolt

How could anyone forget Mr. Andrew “Ethanol Man” Bolt?

The ethanol fraud is another Co2 tax, which is destroying capital in the lattice of food production. What has Mr. Bolt made of this? August 11, 2006, he published his propaganda masterpiece, which reads as so many of his items do, a Parrot good at dictation :

Reap the good oil

…is the Federal Government doing enough to develop it as a cheap substitute to petrol, Andrew Bolt asks.

…All those crops, right to the horizon. See all that? Mulch it and ferment it and you have a sea of ethanol…

About 12 years ago, it was carefully explained to Bolt what the economic force of ethanol production is. He decided to ignore the advice. It is crystal clear why he did.

He is pushing the interests of the parasites behind the swindle. This is apart from when Kennett was still in office and, with his National Party chums, was trying to perpetrate the ethanol swindle. He failed but his Federal pals, David Kemp, Peter Costello, Ian Campbell, and Malcolm Turnbull didn’t. They also rammed down more ‘watermelon red’ measures and began planning greater co2 taxes for good measure. Rudd is building on their destructive efforts.

At the beginning of May, 2008, Bolt derided the compounding food crisis, due to the food production destroying ethanol fraud. He declared on radio, the cutting of supplies in Britain is due to Indians prospering and consequently eating more. No mention of food riots and ever spiralling prices in other countries. It would be nice to believe he merely ignored the truth, Indians are eating because the Indian Government has not and will not commit the ethanol fraud.

In India, food production has been scaled up. Indians eat more because a part of income is major gains in increasing food production through capital investment. Whereas, in the West capital in food production is being smashed to smithereens.

The above is apart from the callous sneering at real deprivations faced by those going without food. Bolt hasn’t observed either that food prices are spiralling in Australia, for the same reason. Consumers are complaining weekly. In one fortnight period alone, prices increased up to 40%.

Caught red-handed, he tried in May this year to cover his deceptions and backside the light and trite way:

The Wall Street Journal editorialises on the biofuels backlash

Even the environmental Left, which pushed ethanol for decades as an alternative to gasoline, is coming clean.
record 12million hectares the US will devote to ethanol production this year will consume almost one-third of America’s corn crop while yielding fuel amounting to less than 3per cent of petroleum consumption.

I love this line -

All we can say is, welcome aboard.

He finished another piece of drivel with this and without any sense of irony (if he hit a brick wall the wall would crumble),

A hypocrite is better than a wrecker, after all. Unless, of course, you really, really think another…

As that last linked item shows, he doesn’t have a clue about the scientific arguments and the economic arguments against the Greens’ Great Lie, Co2 emissions causes climate change, and the economic arguments for attack. Parroting his lines and, typical of the a-neural “Right”, pontificating ex-Cathedra, not putting forward real guns as opposed to his pals in the IPA, CIS, and Kroger and Costello, he has done his bit to wreck labour market reform, the Liberal Party and now the fight against Co2 taxation.

Wrecking hypocrite - the diseased Left laugh loudly.

CIS, IPA, HR Nicholls Society, and their completely stupid ‘Right’
fan club

Ha! Mega Professor and Uber Nobel Prize winning economist Peter Costello, thicker than a dead toad on inflation, labour markets and Co2 taxation. After all, he was the Treasurer who presided over Vaile, David Kemp, Turnbull, and Ian Campbell proceeding with their own carbon taxes. Oh, and Julie Bishop the former ministeress of dumbing down Education, realised there is no need for science - “what’s that… is it a skill?”

Rudd and his Cabinet of fascists are in office because of this bloody lot. Due to them, energy firms in Victoria are crumbling. Due to them, what they and Bracks and Brumby have done will be perpetrated federally. Well, right now it is joy in the morning for Victorians:

-Facing havoc causing blackout

-No water because instead of a free market firm building massive dams and planning new capital for future expansion, Bracks and Brumby are stealing billions and blowing it on a useless de-Sal plant.

What has been noteable is the full support of the cleptomaniacal, nepotistic “Right” for what is nothing less than perpetration of large-scale, destructive crimes. Their objections have been only a mere, ‘it should be here and not there’. The reason is, they don’t want their backyard views spoiled. Bung it where it hurts the grotty peasants.

Now, as we see of the CIS, to make the peasants really know their place, it is important to thoroughly destroy them economically.

It will make very interesting reading the forthcoming CIS Paper:

Why carbon taxes are good

With the follow up:

Capital destruction is not occurring.

Well, Greg Lindsay, where are they!

As for Bolt, he’s a joke. Not credible. He’s blown out of the water, so there is no point on counting on him to continue flying cover for your CIS, the IPA, the HR Nicholls Society, Costello et al. Not that he ever could, he is transparently stupid at it. Not a shred of credibility left.

Oh, and Bolt - another Kroger and Costello lackey-toad expecting to be flung by the two mobsters into a good Liberal Party seat.

Victorian and Federal Liberal Parliamentary seats are nigh wall to wall cretins, thanks to Kroger, Costello, and Kemp. These three must really hate genuine Liberals and the Party they are strangling to death.

I can’t wait to see the Senate newbies chewn up and spat out, as an early morning prandial. It will be ghastly watching a pulped Senator Helen Kroger, the pulp will stain the carpet.

This week, Hunt compared Kevin Rudd and ‘Water and Climate Minister’ (really, mystic beings were a jolly good joke to the classical Greeks) Penny Wong to Saddam Hussein.

Kevin Rudd and Penny Wong like Saddam Hussein - Greg Hunt

He’s sticking to it;

Hunt stands by Wong-Saddam comment

It is difficult to exceed the efforts of the HR Nicholls Society clubmen, the Kemp family’s IPA professional begging cap, and the Greg Lindsay please see that I won’t be condemned to a modest pension super Superannuation policy the Centre of Indolence Independent Studies, with attachments called Michael Kroger, Peter Costello, Senator Nick Minchin, David Kemp, and philanthropist to wealthy dole bludgers and a diseased Leftist called Tim Costello brother of Peter Mr Bob Day. Mr. Greg Hunt MP has achieved an alpha +++. Outstanding!

Needless to say, Rudd and his Cabinet of cruds are having a fine time bashing Hunt’s and the Liberal Party’s heads in.

The reason for his stern, fist-shaking defiance and attack is, bogs and swamps. Not yet re-bogged and swamped by the rains, they are still drying out. Oh, I forget, it is a criminal offence to use nouns that are offensive to the death cult of nature. Stinking bogs and swamps are ‘wetlands’, while savage jungles are ‘rainforests’.

“Penny Wong and prime minister (Kevin) Rudd are set to join Saddam Hussein and the Ba’athists of Baghdad as only the second government in the world to have presided over the destruction of a RAMSAR-listed wetland,” he told ABC Television.

Mr Hunt accused the Australian government of “an act of monumental environmental vandalism without precedent in Australian history”.

Let’s see:

Hussein was a mass murderer. He drained marshes in order to exterminate the marsh Arabs. I heard someone else, from the sick “Right”, who bears a striking resemblance to a bozo who has done great damage - I can’t say because of the problem I didn’t hear his name. This congenital idiot described Hussein as a sainted aunt and not the Stalinistic butcher and armourer of Islamic terrorists that he was.

Mind, in the “Right” there is a disturbing number who hope Islamic-fascists will destroy Israel and exterminate the Jews. Why expect anything more of the one man Liberal Party bulldozer? It was plain what script he was parroting, the lies spewed out by The Spencer Street Soviet Age. He declared, the real criminals are the Allies for going to war against Hussein and the butchers he tormented not only Iraqis with.

Hunt is a watermelon red cultist. He believes in the death god Nature. He believes in the lie Co2 emissions causes climate change. He believes in capital destroying ‘war’ against climate change. He gave a reason for why he believes all this, and demands economic destruction:

He stated on radio that he ‘did work’ while at University on the subject. He didn’t explain, gave no reasons for his vicious and nazi echoing worship of nature. He merely ‘knows’. How does he ‘know’? He studied law! Lawyers in the Liberal Party are:

Nobel economists
Nobel scientists
Pulizer theologians
Pulitzer philosophers
The greatest professors in history Cambridge ever produced.

They are, however, modest. They have not boasted of being the most brilliant neuro-scientists and surgeons in the whole world. The reason is, anything to do with brains in the Liberal Party is as good as leprosy.

From his own pr blurb:

1990graduated Melbourne University, in Law, winning an award for the best final year law thesis.
Fulbright Scholarship for the class called a Masters degree, and in a pseudo subject, International Relations; at Yale ( yes greg, Yale is in the US and anyone who isn’t a vegetable or a swamp knows this.

While at university, Greg captained the Australian Universities Debating Team, was runner-up at the World Universities Debating Championships and won the Edinburgh International Debating Tournament. [Wow, all these captaincies. Roll over General Petreus, here’s a real commander and his name is Captain Courageous personified - ah, this is why he could call Rudd Australia’s very own Saddam.]

After university and a year spent as an articled clerk with Mallesons Stephen Jaques. [ Yes, profiting out of enforcing ‘regulation’ as opposed to out of upholding the rule of common law in, well in his case, muttering about cases so senior counsel can clean up on rule 222 bloody de 3333.]

Greg became an Associate to the Chief Justice of the Federal Court [Clueless in the finest tradition of law, common law, what on earth could this mean? He cooed in the C.J’s. shell like ear to soothe his precious nerves from the strain of his cocooned position as C.J.?]

He was next an “intern” with the United Nations Centre for Human Rights in Geneva. [Oh, he is is a distinguished Jurist. We can tell. Bootlicking a pack of totalitarianism bent parasites is the the sort of background only diseased Leftist jurists in common law aspire to - and statist, dumbed down Rightists - and there are rather a lot of these in the Tory Party too.]

Between 1994 and 1998, Greg worked as a senior adviser to the then Minister for Foreign Affairs, Alexander Downer… [Damn, this is why David Hicks wasn’t given his just desserts, the wrong side of a firing squad. With his hefty experience in the paradise for socialist bastards, the UN, he could advise Downer, ‘Why Lexy baby - oh, ok can I call you Lex? Islamo-fascist terrorists have to be given a common law trial and need only to be rehabilitated back into the com-moooooonity- we are all animals together.]

Damning stuff.

Hunt is typical of what Micahel Kroger and Peter Costello have doen to the Victorian Liberal Party, with Federal and State positions and seats, aided and abetted by thir gutless comrades in:

HR Nicholls Society, The Centre for Independent Studies, and the Institute of Public Affairs

Stuffed it and them with cretins, while suppressing the rabble called genuine Liberal Party members.

Greg Hunt’s branch have a clear mission, dump this parasitical ignoramus and find a genuine Liberal equipped with brains and principles. The ‘man’ is another Kroger-Costello scandal.

Greg Hunt, MP, has done Australians a great service

He’s another one of many who have done the same, opened a very large window into the wallowing Right for all to see how completely stupid they are.

The ACTU claims increases in the dictated minimum wage won’t fuel inflation. They are correct - inflation is what no one is advised by their barrister to do at home, ‘money creation’. No, it can do something else, give many Australians a large pay cut to a 100% pay cut, it’s called unemployment.

Unemployment, according to reports, is already climbing. “The Fair Pay Commission” is to prescribe today an increase in the minimum rate. As I write this, it has been handed down, $20 per week. The ACTU pushed for a $26 increase (some) employers for $10-13 (it sounds like the 1970’s all over again). What is the problem?

So long as the minimum pay rate is no greater than the market rate, unemployment does not ensue. Prescribed minimums higher than market rates, while the lucky ‘protected’ few might be given the increase, it cannot increase total payroll. Instead, it entails an instant, 100% pay cut for many and it is called unemployment.

Even before the current rise in unemployment, real unemployment has been running higher than official figures. Those working far fewer hours than they seek is unemployment. ‘Make work’ schemes is unemployment, as are many university courses - as a means of disguising unemployment (Hawke and Keating hit upon this wheeze in the early 1980’s - ’see, low youth unemployment’).

Has The Fair Pay Commission sent rising employment exponential?

It must be stressed that the only basis on which real pay rates can by increased is capital accumulation. While the ACTU asserted the falsehoods of indeterminacy and monopsonistic ‘power of employers over employees’, they steered clear of touching upon the work capital accumulation does in raising pay.

It is the ratio of labour to capital that sets how much a job in a particular firm is paid. It’s the difference between using hand and fingernails to turn over a field to grow spuds or using a large, air conditioned tractor with PTO powered ploughs and seeding and cropping machines. This contrast illustrates who will be paid the most.

Who, really, is responsible for a new epoch of squalor?

The labour market debacle is about to be shown out with appalling force. This is the wash up of the stupidity of the HR Nicholls Society and its ‘heroes’ Senator Minchin, David Kemp, Michael Kroger, Peter Costello, Des Moore and Ray Evans. Then there were the immediate advisers to former Liberal ministers such as Mr. Jamie Briggs. How bad were they?

They ran the falsehoods the ACTU also relied on to attack freeing labour markets. They ACTU could not believe their luck. Hugh Morgan added his novel contribution to stupidity with his novel notion of “the ratio of the minimum wage to the median wage and when it is too high mass unemployment ensues”.

They, as the Centre for Independent Studies, are also a vacuum on the theory of capital in basic truths. The Cabinet swallowed their line that in free labour markets production increases without capital accumulation. The rot involved is illuminated by pressing it to the reductio ad absurdum that does follow from that notion, stone age man was as productive as capital working man, using his bare hands labour should produce more than the machine driving spudman.

The destruction of the campaign for labour market reform, otherwise a throughly sound and thus highly moral case, by those illiterates and with it the Liberal Party, was predicted by Mr. Jackson before the reform was launched, and so in 2005 he couold write,

Liberal Party labour market reform founders on ineptitude

Ignorance and illiteracy gave oxygen to the likes of The ACTU’s hired guns, Belchamber and Godfrey, and that devotee of Stalinists Kenneth Davidson. Davidson used an appallingly bad New Zealand Government paper as ’solid evidence’ against free labour markets. Mr. Jackson also read it and, evidently, found it very bad and, based on his article, for the same reasons I did:

Liberal Government and labour market reform: more fallacious attacks

As the false campaign unravelled in 2005, the HR Nicholls clubmen ran for cover and left the Ministers responsible for running the Cabinet’s reform hanging. Panicking, Cabinet sought to rescue itself by raising the substitute for the old IRC, “The Fair Pay Commission” and imposing the “Fairness Test”. Who was responsible for this final collapse? One Jamie Briggs, adviser to Prime Minister Howard, as Landeryou documents here.

Seeking Alexander Downer’s blue ribbon seat, Briggs tried to paper over his spineless and overall incompetence as a adviser to Prime Minister Howard in an interview:

In effect we declared that in May last year when we introduced the fairness test which was the key issue with WorkChoices

There is no “We” about it. It was Briggs, Minchin, Kemp, Costello, Evans, Korger, Morgan and Moore who totally failed in their duty to Cabinet, Parliament, Australians and the Liberal Party, and completely wrecked the campaign, and blew the Liberal Party out of office with it.

So the day has arrived for the final immiseration of Australians. “Professor” Ian Harper, Chairman of the Fair Pay Commission declared today, the increase he ordered willl:

1. Deliver a real pay increase to all “workers”
2. Will increase total payroll.

Harper has no justification at all for both claims. At a time of already rising unemployment, the indication is that Harper has consigned even more Australians to the abyss. This is not what Rudd and the ACTU are guilty of. It is what the “Right”, who wrecked labour reform and the Liberal Party are guilty of. By their ignorance, venality, hubris and thuggery, they brought this about.

It is genuine abuse of many Australians and on two counts. They cannot enjoy higher pay without capital accumulation. Many will be delivered a real pay cut.

Rudd muddied things further by bestowing on top bureaucrats a staggering 18% increase this week. The ACTU, for obvious reasons, latched onto this act of larceny for its emotional impact on the public. Mind, what will it matter, since Rudd will annihilate Australiansthrough carbon taxation - thanks, again, to the duplicity of the “Right”.

P.S.

1. “The Right” still blame Howard for what they did, wrecked labour market reform. I remind readers of the disgusting antics of Moore and Evans, when they smeared both Howard and Cardinal Pell before a hearing of the Fair Pay commission, asserting they had been captured by neo Marxists. This was their ‘expert economic submission’.

Moore’s outstanding heroism was followed by the IPA’s “let’s blame Howard for our errors” bumper issue. These deeds were preceded by his greatest ‘daring do’ in 2005 - he smeared Howard ‘out in the open’ in The Spencer Street Soviet Age, Gutless reform dash Liberal hopes

2. It is interesting to note Hugh Morgan and the Business Council of Australia pushes for large increases in immigration. They also hold the fallacy consumption drives economic growth, instead of capital accumulation.

What they are totally blind to is, besides the very nasty implications of mass, unrestricted immigration, without capital accumulation the increase they are pushing will drive down pay rates. Unfortunately, Rudd is about to oblige them with this desire to impoverish modest Australians. That the BCA are worse than economic illiterates is shown in, for example:

Lopping the Root and Branch Tax Review Cuts Opportunity
26 June 2008, by BCA President Greig Gailey

So, Greig, why not argue for a 100% tax rate? A major assumption is the fallacy of consumption drives economic growth, instead of savings.

Well, it’s understandable with such economic geniuses as members and former board members, eg. Hugh Morgan, whose notion of business is Government transferring billions his way viz the Morgan-Walker “Nuke the coal firms Power Plant” and destroying genuine enterprises such as WMC, larceny must be the definition of economic growth.

Australia’s Emissions Trading Scheme: An Opportunity – Speech by BCA President Greig Gailey

As the CIS, Greig and the BCA run the lie of “costless carbon taxation”. The Victorian equivalent of the BCA, the Victorian Employer’s Chamber of Commerce and Industry are no more literate in economics but even they have twigged onto, carbon taxation is capital annihilation.