The thing about Ponzi schemes is that they all eventually collapse as the market runs out of idiots who believe the over inflated claims about their efficacy and their ability to give their promised returns. Its the same with government sponsored “carbon trading” regimes which function on trying to create a “market based mechanism” to control the emissions from the burning of fossil fuel. Even if I were a believer in the AGW theory I would be baulking at schemes such as these because they are just too vague and abstract and they carry the clear potential to do nothing about emissions and worse still to enrich the undeserving Spivs and Shonks who just love them. After all what these schemes are is another derivatives market that is entirely disconnected from any real or objective commodity. Its the perfect vehicle for making a quick and very large profit.
Here in Oz we have the much hated Carbon dioxide tax that is due to morph into an expensive trading scheme in 2014 its creators have predicated their scheme upon a cost per tonne that has essentially been plucked from the air however the market value of this ah hem, “commodity” is significantly below the AUD$23 per tonne that the Gillard scheme has as its starting point:
The European experience should tell us something important here and that is the expensive futility of such indirect mechanisms to “control” the emission of CO2 by our industry. The only bright spot in this rather hazy and gloomy picture is the fact that the Coalition offers a definitive undertaking to dismantle the whole thing when they gain the lodge. It won’t be easy and we can already hear the screams and protestations of the Green unwashed. But it will be done, all that is needed to make the death of Gillard’s Climatechoices even more palatable would be if the oppositions so called alternative emissions reduction scheme was to likewise be consigned to the dustbin of history. Its clearly better than the Ponzi scheme envisioned by Labor and the Greens but that is only because the things they propose may have some benefit to the environment in other ways like improving soil quality and tree cover. Saving the money by not jumping into more futile attempts to mitigate emissions would also make it easier to retain some of the over generous “compensation” like the laudable rise in the tax free threshold or increases in pensions.
Gillard has counted on the bribes she has offered to the voters to make her bitter scheme palatable but the polls are clearly showing that the voters are unimpressed . Team Labor are definitely in the death zone here and who is really surprised?They are burdened with a leader who is too stubborn to admit that her gamble that the Carbon Tax would be accepted by the public has not and will not give her a pay off and now her stake on the table is too small for her to possibly win the next round of the game, The odds have become so bad that even going to another leader won’t save Team Labor.In any event who among their number would want to go down in history for leading them to their worst defeat in the history of the party?
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