Gillard can butt out

31 05 2012

Julia Gillard says that mining companies don’t own the minerals – Australians do. One small problem… they actually do. From WA mining act:

Subject to this Act and to any conditions to which the mining lease is subject, the lessee of a mining lease … owns all minerals lawfully mined from the land under the mining lease.

Secondly the minerals are owned by states, not all Australians. Victorians have no claim on WA minerals by law. One would think a former lawyer should be across such stuff.

If Australians really think they own this stuff they can get shovels and go dig the minerals out themselves, refine them themselves, sell them to Chinese and so on. No problems. I am fine with that. If CFMU boys think it is such a doddle to make huge profits in mining why are they wasting time fighting the miners, they could just run a rival mega profitable business for the benefit of their union. Or… why not nationalise the industry and make this “our ownership” official?

How to cook the goose that lays golden eggs

13 03 2012

The tax is not even in yet but it is already working exactly the way I said it would. No government is exempt from the laws of economics any more than they exempt from gravity…

AUSTRALIA’S global share of the capital raised for mining projects has sunk from 21 per cent to 15 per cent since 2008 as other countries such as Russia, India and China attracted tens of billions of dollars in additional funding…

The figures, which were compiled by research firm Intierra and the Association of Mining and Exploration Companies, show that the value of capital raisings in Australia increased slightly from $4.3 billion to $4.5bn between 2008 and 2011.

But in the same period, the value of capital raisings rose strongly in Africa (up 26 per cent), Canada (up 31 per cent), South America (up 59 per cent) and the rest of the world (up 78 per cent)…

AMEC national policy manager Graham Short said the data proved federal and state governments had to recognise Australia must become more competitive in attracting investment…

“We have extreme concerns with things like the mining tax and carbon tax.”

It’s not going to happen until we vote the most economically illiterate government of modern times out of the office.

If windmills were so good, combustion engines would’ve never taken off

6 03 2012

To the nearest whole number, the percentage of the world’s energy that comes from wind turbines today is: zero. Despite the regressive subsidy (pushing pensioners into fuel poverty while improving the wine cellars of grand estates), despite tearing rural communities apart, killing jobs, despoiling views, erecting pylons, felling forests, killing bats and eagles, causing industrial accidents, clogging motorways, polluting lakes in Inner Mongolia with the toxic and radioactive tailings from refining neodymium, a ton of which is in the average turbine — despite all this, the total energy generated each day by wind has yet to reach half a per cent worldwide. 

If wind power was going to work, it would have done so by now…

In a wish to be seen as modern, (politicians) will embrace all manner of fashionable causes. When this sets in — groupthink grips political parties, and the media therefore decide there is no debate — the gravest of errors can take root. The subsidising of useless wind turbines was born of a deep intellectual error, one incubated by failure to challenge conventional wisdom.

It is precisely this consensus-worshipping, heretic-hunting environment where the greatest errors can be made. There are some 3,500 wind turbines in Britain, with hundreds more under construction. It would be a shame for them all to be dismantled. The biggest one should remain, like a crane on an abandoned quay, for future generations to marvel at. They will never be an efficient way to generate power. But there can be no better monument to the folly of mankind.

Calculus for ALP members

16 02 2012

I said it once and I will say it again. Why are ALP types so hopelessly bad at math? via Andrew Bolt:

Reader K, a chartered accountant, writes:

I note Health Minister Tanya Plibersek is claiming the ALP’s Health Insurance Reforms stop people earning $50K subsidising the health insurance of people earning $250K.

You might be interested to know that a person earning $50K pa pays $5,400 pa including Medicare levy. A person earning $250K pa pays $89,800 pa including Medicare levy. That’s 16.6 times more tax despite only earning 5 times as much income.

Does Tanya Plibersek seriously think people earning $250K spend 16.6 times more time in hospitals? Indeed on a related topic does she think $250K people have 16.6 times more children being educated by the Government? The suggestion that someone who has paid $89,800 in tax might at best get about $1500 back in a rebate for health insurance is some how bludging off the person paying only $5,400 is so utterly preposterous that one wonders how absurdly innumerate Plibersek is to have arrived at this conclusion.

Struggling to count our money

14 02 2012

Some brilliant news for the workers in a struggling industry:

GM Holden has agreed to an extraordinary wage deal that will lift the income of 4000 employees by up to 22 per cent by 2014, despite the carmaker seeking a taxpayer-funded assistance package from the Gillard government. In a deal hailed by union leaders as “spectacular”, workers will receive a “guaranteed” 18.3 per cent increase over the next three years, with some workers to receive up to 22.3 per cent.

Even better:

The Australian has obtained full details of the agreement, which the union said contained no productivity trade-offs… Federal Liberal MP Jamie Briggs yesterday questioned pay rises previously awarded to Holden employees, saying recent enterprise agreements did not appear to be delivering productivity and efficiency gains. Mr Briggs said if taxpayers are “handing over large wads of cash”, they would expect that companies receiving support would make improvements to their operations.

This is absolutely shameful. In a modern Australian context, or should I say in ALP/union Orwellian double-speak, a “struggling industry” means an industry that rewards its unproductive workers with money extorted from the taxpayer. Furthermore it feels entitled to reward its workforce over and above of what the taxpaying suckers can expect themselves.

This a brilliant new economy that Gillard government is building.

Aussies are backward!!!

21 10 2011

Aussies are always a few years behind times:

The European Union is for the first time clearly questioning whether it should press ahead with long-term plans to cut greenhouse-gas emissions if other countries don’t follow suit, in what could herald a significant policy shift for a region that has been at the forefront of advocating action to combat climate change. The document is unambiguous about the risks if Europe acts alone. “It has to be seen clearly that there are risks associated to unilateral EU action,” the commission says in its draft. “There is a trade-off between climate-change policies and competitiveness. Europe cannot act alone in an effort to achieve global decarbonization,” the paper says.


Japan is reconsidering plans to cut carbon-dioxide emissions by 25% by 2020 due to a rethinking of its energy future, and the country is worried that it is spending too much on carbon-credit programs, a senior government official said on Wednesday. “Japan’s wealth has been draining out” due to buying carbon credits from East European countries and China, Mr. Nobutani said.  METI estimates Japan has paid as much as ¥800 billion ($10.4 billion) to buy 400 million metric tons of carbon credits.

But ALP says it will be all sweet and the Treasury has models that prove that the logic, reason and reality are wrong!

via Andrew Bolt

The Folly of Social Democracy

21 07 2011

We live in so-called social democracy where the weak and uncompetitive are entitled to other people’s money. None of us in our daily lives go to the market and buy things based on the needs of the seller. We don’t think "gee this guys onions are twice the price but he has four kids" or "this lady sells stale bread but she has a lisp or a minority background". We want to buy good quality at he lowest price.

Yet we expect our society to be organised in exactly the opposite way where some people get supported by others. The miners are making too much money – let’s take it off them and give it to car makers or farmers and so on.

If something makes no sense to us on the individual level, it should make no sense on the collective level either. Government edicts cannot overturn the laws of economics any more than they can overturn gravity. The results of this folly is now plain to see in places like Greece, Iceland, Ireland, UK and USA.