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Another Carbon abatement Ponzi scheme on the verge of collapse
I have been a bit under the weather over the last few days, in fact I have had a sort of flu like symptoms for the last week, you know with a sinus headache and a general feeling of utter lethargy. On top of that joyous present from my son I have been having a rather bad patch with my back. that has seen my doctor prescribe me some even stronger pain medication and to be honest it makes be feel like I’m a bit “off with the fairies” sometimes. In fact my interest in politics has been a bit subdued lately. Oh I have been fighting the good fight a bit in Latte land and now I think its time to offer a new post here to the loyal readers of the Sandpit. So without further adieu I’m going to consider the viability of the UN sponsored “global carbon trading scheme”. The Guardian is of course one of the most partisan and pro AGW papers on the planet so lets have a look at the report in the latest edition:
What I am struck by upon reading this article is an inescapable feeling that the whole UN scheme is, like the Gillard monstrosity just another Ponzi scheme where its all about creating “confidence” but because that confidence is predicated on false expectations and and eternally growing pool of “investors” the whole thing is bound to fail sooner rather than later:
Governments have a last chance to restore confidence in the system when they meet in Qatar this December to discuss climate change. But few participants hold out any hope that they will agree to toughen their 2020 emissions targets, which are scarcely even on the agenda. Instead, governments are focusing on drawing up a new climate change treaty by the end of 2015, which would stipulate emissions cuts for the period after 2020.
As I have been saying for ages if the response to AGW can not be made to happen at a truly global level then any efforts from a minority of the global emitters is at best pointless and futile.At worst it will be an expensive exercise in climate piety that is of no value what so ever. There is only one answer to the AGW question that is to do nothing, wait and see if any of the dire prognostications come to pass and if they do then we deal with each problem as it actually presents itself rather than spending huge amounts of effort and treasure trying to forestall things that may never happen.
Farce is actually too mild a term to describe this symbolic bunch of fools
The latest body blow to Labor’s “clean energy future” should be enough for the voters to see what a huge and pointless folly the whole tax on carbon enterprise is, was and will for ever be. Firstly they had to throw out their floor price and now they have given up on the idea of buying out cola fired generation to “reduce pollution”. Farce is actually too mild a term to describe this symbolic bunch of fools who currently hold the treasury benches in the house.
Talk about incompetent! So now Labor will be obliged to take this Ponzi scheme to the next election with it not even appearing to be at all functional as its designers claimed it would be . What a disaster for Labor! Oh I expect that they will produce lots of rhetoric about “evil big Coal” conspiring to wreck the planet but the reality is that its Gillard who is the wrecker here. She and this hopeless Ponzi scheme are wasting government resources at such a rate of knots that it just about beggars belief. All the while we are repeatedly told that the government is short of a quid. Yesterday thanks to may friend Matt Hayden’s tweet I read a most illuminating essay in the online version of Quadrant which posited the notion that we are on the tail end of the politics of reform and that essay was mercilessly critical of Gillard’s Carbon and mining taxes:
We live in an age of bureaucratic capitalism, driven by grants from government boondoggle money-pools like Australia’s $10 billion Clean Energy Finance Corporation. The charms of such state capitalism are irresistible for some but its business models are dismal. In this, as in so much else, the time of the Gillard government in office proved to be a kind of bad Hegelian comedy. The consequence of so many of its policies was the direct inverse of what the government intended. It couldn’t take a trick. As all children understand, that is the essence of clowning. One of the many ways the Gillard government managed to slip on its own banana peel was to promise to turn vast swathes of the seas that are under Australian jurisdiction into marine parks. This was a stunt designed to curry favour at the 2012 Rio talkfest, one of those innumerable, interminable ecological rent-seeking lobby events loved by the frequent-flying global bureaucratic activist class. The stunt presupposed that fishing is not allowed in marine parks. Strike one for marine conservation, then? No. Australia imports 70 per cent of its fish. That percentage will only rise when more fishing is outlawed in restricted zones. The perverse effect of this is that Australia will then simply import additional fish from countries that “strip mine” their own fishing jurisdictions. Strike one for green ideology; strike out for the fish.
As green ideologies have flourished in the past twenty years, self-defeating actions of this kind have multiplied. Green creeds fill the space that socialism and social liberalism once occupied. In their wake they have induced a global industry of professional moralism, pseudo-religion, cod-mysticism, political pandering, bureaucratic pocket-lining, and media pretentiousness. It is impossible to overstate the silliness of the whole show. If you took the dumbest things that management, science, and religion ever said, and spliced them together, you would end up with ecological social “thought”.
So rather than the collapse of communism leading to the end of ideology, instead we got the rise and rise of junk ideologies, especially preening green thinking. Green ideology was an effusive, fatuous kitsch mix of pseudo-science, New Age spirituality and officious morality that aligned perfectly with bureaucratic sloganeering and rent-seeking businesses. Green policy offers a vaguely plausible surround filled with piffle. So it is no surprise that the Gillard government’s carbon dioxide tax was a manifesto of silliness. It was not just wrong or questionable—it was harebrained. Even many of the ministers in Gillard’s government looked embarrassed by it.
In the long history of silly taxes, the tax on carbon dioxide was a world-beater. In 2012 when Australia made its unique contribution to the genial history of comic government lunacy and enacted this tax on a harmless gas, carbon dioxide, it culminated twenty years of the global green lobby insisting that the end of the world was nigh because the planet was warming. The problem with their argument was that the planet was not warming (it hadn’t since 1998) and even if it had been the net global effect of that warming would have been beneficial, and even if warming was a bad thing (which it is not) reducing carbon dioxide emissions by taxing Australia’s emitting industries would have zero effect or (at most) an infinitesimal effect on planetary temperatures. The tax on industries that emit carbon dioxide into the atmosphere will raise at least $24 billion over three years. The tax will drive up industry costs (energy costs in particular) in the order of billions of dollars. Yet it will have no beneficial effect whatsoever. The principal negative effect of the tax will be felt most by low-income groups, the traditional constituency of the Labor Party.
How it is that the least well-off are slugged by a Labor government is easy to explain. Today Labor policies are designed by high-income moralists. This group came to dominate all left-of-centre parties after the ideology of socialism collapsed. The moralising class of affluent tertiary-educated activists, bureaucrats and rent-seekers stitched together post-industrial “values” with welfare economics. Under their watchful eye, regulatory green tape expanded along with entitlement claims. In the global semi-boom years of the 1990s and 2000s, the fictitious wealth of the era made the wonky alliance of industrial and post-industrial statist policies vaguely serviceable. After 2008, the alliance was rendered kaput by economic reality. So then began a new comedy. The Gillard government enacted a mining tax in order to find the money to subsidise low-income families for cost-of-living rises driven by the functionally useless but ideologically imperative carbon dioxide tax.
Its a sobering picture for we conservatives who have been horrified by the desire of minions of the left to constantly tinker with just about every aspect of society and culture even when the things that they want to change are actually functioning reasonably well, You could find no better example of this then the so called Gonski “reforms” to education. Its clear to me that what Gillard is seeking to do is to do a “carbon tax” number on Eduction, making huge and far reaching changes that may well have perverse outcomes that make the eduction of our young people qualitatively worse while increasing the size of academia to produce those ” more qualified teachers”, teachers who will have “benefited ” from the indoctrination from those dinosaur lefties currently in our universities. We need to face the fact that the aspiration that every young person should find a place in tertiary education is madness. All that it does in so many cases is delay the entry of so many young people into grown up society where they can contribute to the future for themselves and the country.
Now there are some rumblings suggesting that Gillard might try to go early to the polls probably with the vain hope that her fine sounding promises on education and disability insurance might shine a favourable light on her administration. Well they might just do that but it won’t be enough to dispel the shadows of her clear failures in just about every other policy that has been introduced by this terribly incompetent government.
- Death Zone inescapable for Labor under Gillard as the party shows evidence of terminal hypoxia (iainhall.wordpress.com)
- Poll position: Gillard arms Labor for early election with new committee (smh.com.au)
- Sam Fielding: Australia’s Green Ideological Disaster (junkscience.com)
- Newspoll catastrophic for ALP- Libs (bigpondnews.com)
- Australia kicks off carbon [dioxide] tax, PM’s future in doubt – large composite posting (junkscience.com)
- Rinehart Decries Australian Costs With Africans Earning $2 a Day (bloomberg.com)
- Green dementia on display: Carbon tax will create green jobs: Milne (junkscience.com)
- Ponzi-style scheme use to defraud investors (radionz.co.nz)
Death Zone inescapable for Labor under Gillard as the party shows evidence of terminal hypoxia
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?
- Abbott won’t dump carbon tax: Gillard
- Australia kicks off carbon [dioxide] tax, PM’s future in doubt – large composite posting
- Tony Abbott says carbon tax just bad socialism
- Lenore Taylor: Poll reveals hostility to carbon plans
- Carbon tax judgment day
- Australian PM campaigns to sell unpopular carbon tax
- Carbon tax dislike ‘can be turned around’
Juliar and Bob’s ponzi wealth prospects look bleak
To run a successful ponzi scheme you need a couple of things working for you. in the first instance you need to have a large pool of the foolish who will believe your spin about investing in your scheme and you need to be able to demonstrate that those “in on the ground floor” are getting the magical returns that you claim in your prospectus. When your Ponzi scheme is all about “carbon credits” you need to demonstrate that the units that you are selling at a fixed price are a ” Good deal” there in lays the problem for the Labor/Greens Carbon tax/trading scheme:
Sadly for the nation in general and anyone in business in particular the architects of this already discredited scheme are so committed to it (and they have already spent the expected revenue) that they no longer care that it is destined to be a terrible burden upon the Australian people and one of the reasons that Labor will have a very long term booking at the wilderness Hilton
- John Elway Bilked In Ponzi Scheme [Fraud]
- Allen Stanford guilty of setting up $7bn Ponzi scheme
- British Investor Jailed for Country’s Largest Ponzi Scheme
- The next exciting episode in the Carbon Tax saga, Or Clive Palmer puts a cat among the Green pigeons
- Ponzi Scheme or Not, Social Security Can’t Keep Up the Pace
- Stanford Convicted In $7 Billion Ponzi Scheme
- Conman behind UK’s biggest Ponzi scheme jailed