Posted by: graemebird | November 24, 2007

Graeme Bird: The Cheap Energy Candidate.

I won’t be putting up even so much as a token candidacy this time around. But these are my election demands from last time. Brought to the front August 2010.

Watching with horror I see that our Greens have been picking up a lot of extra votes. This is the result of people not standing up and calling the global warming racket out for the delusional fraud that it is. Its farcical in theory. Its proven wrong insofar as the empirical evidence is concerned. And yet almost no one will point this out.

This is serious because it takes years to put up coal liquification and nuclear plants and when we finally come to our senses with an oil price of 120USD per barell and rising……. When we finally come to our senses we will still have to go for years if not decades with seriously expensive energy.

I am the cheap energy candidate for the next election. And now that the voting in NSW seems to have closed down I am at liberty to repost my DEMANDS. You see I didn’t want to jeopardise Terje Petersons chances for the Senate. So I took my radical proposals off the net a while back. Now that the votes are in I can put them back:

The following list of demands are non-negotiable.


 Immediate sackings of any civilian defense department members who can be identified as having opposed the purchase of the Raptor Stealth Fighter. The steady replacement also of anyone who was working beneath them at the time and anyone closely associated with these miscreants.

 Likewise with the recent warship purchases. Any civilian in the defense department who pushed for the choice of the Spanish over the superior American warship must be sacked immediately. And anyone thought to be closely associated with such lunatics should be sacked over time.


 For the Australian parliament to declare the current hysteria about Industrial-CO2-Release, to be an obvious scientific hoax. And for any measures taken on the basis of this obvious hoax to be immediately abandoned and reversed.


 For all (non-banking and finance) corporate welfare to be ended at once, and replaced with sunsetted tax exemptions. By sunsetted tax exemptions I mean that the corporation formerly receiving the corporate welfare…. be exempted from paying the corporate income tax AND AS WELL THEIR EMPLOYEES be exempted from paying the personal income tax from wages and salaries paid to them by this corporation, and as well any subcontractors, be exempted from any taxes relating to income paid to them by this corporation.

 By “CORPORATE WELFARE” I mean any subsidies and tax rebates that the company now gets for any reason. But I do not include tax deductions under “Corporate Welfare.”


 For the banks to be taken out of the welfare system through the immediate adoption and implementation of a planned phase-out of any such welfare. Bank welfarism includes the ability to borrow from the Reserve Bank, the ability to practice fractional reserve banking, the taking on of debt by government authorities (State, Federal or Local) and most of the current banking regulation.

 Wresting banks from out of their state of chronic welfarism must be done via a phase-out rather then a straight abandonment of such welfare. This is due to complicated matters relating to the esoteric subject of monetary economics.

As in the case of ending other corporate-welfare, the banks ought to be given a tax exemption taking them and their employees totally out of the income tax system, for a sunsetted period, as described in my 3rd non-negotiable demand.


(a)Rental income on living and working space(b) taxes on interest earnings (c)stamp duties on the buying and selling of realestate and (d) payroll taxes   …………

 These four taxes are to be abandoned immediately. The first is a federal tax. That ought to be abandoned in order to encourage high-rise building. Only land value tax has a plausible enough excuse to be retained in this regard. All other taxes getting in the way of vertical development must be abandoned. The other three taxes are State taxes. But they are taxes that the State governments had undertaken to cut when they were given the GST. 

They have reneged on this sacred understanding. This is a most grievous offense, and the Feds have wiped their hands of this matter.

 But in considering the situation it must be understood that all these entities are rampant thieves, and they ought to be considered part of the same unbelievable racket.


It must be recognised by the Australian parliament that height restrictions on buildings are always and everywhere an anti-social and unacceptable act and that steps ought to be taken, where possible, to make such loathsome restrictions illegal.

Whilst restrictions to horizontal development can sometimes be plausibly argued for, we should look to getting rid of most of them as well. Out of some sort of regard for our fellow man and for a concern for the health of our economy and society.

But its the height restrictions that are an anti-social abomination. Clearly wicked and against the interests of man and nature.


 That the CSIRO must be disbanded immediately, both to reduce the robbery that government spending represents, and as well as punishment in their role of spreading the industrial-CO2-release science-hoax.

 Independent scientific research companies and institutes may properly be taken out of the tax system for a sunsetted period in order that scientific research within Australia be maintained and enhanced after the CSIRO is abolished.


That all aquaculture be taken out of the tax system in the way described above. This measure is mandatory  from a commercial and environmental-sustainability point of view, as a way of relieving the stress placed on the worlds fisheries. It is also a good way of helping bring down the basic costs of food for our fellow man. Out of my non-negotiable demands so far this one relates most directly to the electorate of Dobell.


 That Diesel excise duties be immediately abolished and that the abolishment of any tax on diesel be guaranteed for at least 50 years. That this guarantee also apply to liquified-coal.

This is also mandatory from the view of ecnomic sustainability since as the known oil-wells become more depleted we find that the oil left is of a heavier sort more condusive to the seperation of diesel then petrol.

On top of that whereas the daily production of oil from traditional sources has peaked, we have very large supplies of coal to hand and liquified-coal can readily be used as fuel for diesel engines.


 That property rights rules be so clarified as to make it a practical fact that no community, protestors, or branch of government, have any say whatsoever as to the placement of energy-generation facilities INCLUDING NUCLEAR ELECTRICITY GENERATION.


 That all energy production activities be taken out of the tax system entirely in the way described in the above demands….. the taking of extraction-royalties alone excepted.


That all taxation be recognised as robbery, thievery and stealing, regardless of any belief or feeling that some small fraction of the current unacceptable level of stealing be necessary, in either in the long run, or more plausibly the short run.


Its always stealing justified or not. To say otherwise is quite obviously to lie.


 That as a consequence of the fact that taxation is blatant robbery, that those citizens, neither in the Police or armed forces, nor themselves directly elected, whose incomes are gained as a result of this stealing…….. that none of these citizens (old age pensioners alone excepted) should be allowed to vote.


That we move quickly to a situation of unilateral free trade AND AT THE SAME TIME that we chart a course to be typically running strong trade surpluses in peacetime.


That the Reserve Bank stops this irrational targeting of interest rates, consumer-price-inflation and GDP growth… and instead concentrate on the metrics of “Gross Domestic Revenue” and “Productive Expenditure.” Its mighty silly if you cannot even get the metrics you are supposed to be targeting right.



  1. This is quite frankly one of the most enlightened election platforms I’ve ever read. Well done, Graeme!

  2. Its pretty frightening that not much progress has been made on the energy front. The oil price coming down isn’t evidence of much of a former bubble since the inventories were not high enough to assume that. And it isn’t evidence that we haven’t reached a decadal peak in traditional oil production since the production figures don’t show it.

    What its evidence for is that Gross Domestic Revenue can fall much faster than Gross Domestic Product. GDP growth has most likely slowed to a crawl in many countries around the world. But gross domestic revenue is likely to have falled right back.

    If so the oil price will recover quickly as soon as GDR does in places like China and the US.

  3. The Spanish make warships!!!!!


    Could be a winner. It might help if you actually get out there and do something next time. Just sayin’.

  4. Well I don’t know whether I will or not. We’ll have to see at the time. For the moment I won’t be with the LDP. I’ll wait until they have a program I can support without reservation. It must be CO2-bedwetting free.

    The other thing is they’ll have a thread saying “who predicted the credit crunch” and I’ll point out that for three years I’ve been likening our monetary system to an elephant balancing on its trunk. And even that won’t get through. So I cannot actively support these guys for the moment.

  5. Here is something word-perfect from Cambria:

    “I truly can’t believe how these people think, SRL.

    Almost every western country is basically on it’s knees totally fucked up with debt trying to pay off a welfare state they can’t afford and these economic illiterates are suggesting we could “easily” go to $300 billion in debt without much problem.

    The west shouldn’t really be our measuring stick any longer. How about Singapore?”

    So fucking marvelous its poetry. Which kind of begs the question doesn’t it?

    Why the fucking boot nigger hasn’t admitted that I was right and he was wrong.

  6. What do you plan to do if your non-negotiable demands are not met?

    • They’re non-negotiable, you stupid twat. That’s the whole point. They have to meet these demands, or else.

  7. They will be met, young philosopher.

    They will be met in the fullness of time, good Doctor.

    For they are non-negotiable.

  8. By the way we don’t want this.
    ” For the Australian parliament to declare the current hysteria about Industrial-CO2-Release, to be an obvious scientific hoax. And for any measures taken on the basis of this obvious hoax to be immediately abandoned and reversed.”

    Do you really want scientific issues to be formally decided by a bunch of party hacks with PhDs in Branch stacking? Even if they were right on this issue its a bad precedent.


  9. See you haven’t actually followed your training grasshopper.

    Its a hoax. And if you should follow all that you have learned. then this will confirm that this is a hoax.

    Follow the PROCESS young Doctor. Follow the METHODOLOGY.

    And by following the scientific process, you will see ……… that this is a hoax.

    Its really as simple as that Steven.

    Do you think that I copped all this abuse, for the last three years and more, and I was just mucking about?

  10. What is your current position regarding AGW – besides it being a hoax?

    you used to say what is wrong with a a bit of extra heat during a brutal and pulverising ice age?

    Is this still your attitude or do you think that CO2 is not materially effecting global climate?

  11. Listen. You picked it up pretty clearly not long after I had to change my position.

    So you tell me what my position was:

    1. Before

    2. After.

    You picked it up at the time. The time I was forced to change my position, within a few months you noticed the change. So you tell me.

  12. Use the force steven. Use all your powers and your training. Use the force.

    How would you use all our training to separate the fraud from the non-fraud?

    Listen to what you’ve been taught.

  13. Look I have a pretty good memory but its far from perfect. I think before you believed.

    A bit of extra heat during a brutal and pulverising ice age was a good thing. And CO2 was plant food.

    Now I think that you believe Solar cooling will overwhelm any effect that CO2 might have.

  14. Well yes. Of course a bit of extra heat during a brutal and pulverising ice age is a good thing? Why wouldn’t it be?

    And yes the sun will dominate over anything thats happening with CO2. These are not contradictory facts. Since there isn’t empirical evidence for a CO2 warming effect it must be a tiny effect. Else it would have been picked up.

    I don’t suppose you could ask the brainless Birdlab what scoop he thinks he has?

    Oh dear. Bird’s not going to like this:

    “For the first time, physicists have confirmed that certain subatomic particles have mass …….”

    You know I was pretty sure this was old news. A proton is a subatomic particle is it not? Its hard to fathom the lack of education of someone like Birdlab. Did they not have schools and books where he came from?

    I’m baffled as to what he believes has been shown here.

  15. Mr Bird

    Don’t you think it a little premature to restore Mr Edney’s doctorate? What true evidence has he demonstrated of rational thinking on his part?

  16. Bird its a badly written newspaper article.

    Yes subatomic particles are known to have mass. The article though it talking specifically about Neutrinos, although it doens’t really seem to be news either. There has been a long standing belief backed by some experimental data that they likely had mass. I think this is just more confirmation.

  17. He’s such a moron this Birdlab. Where was the scoop?

  18. “But if they have no mass, they cannot oscillate between muon and tau forms. The fact that they do oscillate indicates that they have mass and that the fundamentals of the Standard Model need some reworking, at the very least.”

    People imagine that these guys are doing valid work, with valid reasoning. What they are really doing is winging it, and wasting a great deal of money.

  19. Partilcle physics is stamp collecting.

  20. Particle Physics is Hebrew Physics.

  21. hebrew is as hebrew does, Mr Hanson

  22. There is some legal alchemist over at unleashed who reckons that the blockade is illegal. He bases it on a manual. Not on a treaty but on a manual. His argument is that the blockade is causing dire harm. I couldn’t see that he had evidence for this. But it seems that the Israelis are blocking cement. So the dire effects are from the lack of cement?

    It would sure be a nuisance if we couldn’t get hold of cement. I’ll grant you that. But it can sure seem like these lawyers are running amok.

  23. probably a hebrew mr Bird. they all are,

  24. This one is a bit of a Judas Goat I feel. The answer is surely to have less-lethal weapons as well as lead-delivery. If the Israelis had seen our blokes at Metal Storm they could have bought a light clip-on shotgun to their normal rifles. This clip-on shotgun can shoot less-lethal ordnance at a very fast rate. Good for disarming these people and sending them to the hospital, whilst hopefully not killing them.

  25. you referring to Ben Saul, Graeme? I recall he was in my year at Law School.

    Yes, ‘Saul is a Jewish surname. der

    • Was he a real dummy back then as well?

      • dude, the guy is now a law professor. he’s a smart guy.

      • Come on. He’s no smart guy. He’s a dummy. Your conclusion doesn’t match your premise. He’s got things ass-backwards. He’s made the claim that the blockade is illegal based on a manual! Not a treaty, but a book. Bizzare.

        What year were blockades made illegal? Actually his argument is that its illegal since its hurting the civilians unduly. That would be okay if he could find evidence for it. But its a bit of a non-starter if its really only cement and weapons that are being blocked

  26. So there you have it – Monty Python once again (tragically) remixed for the 21st century. The best-trained special forces in the world just wanted to “talk” and were attacked by a bunch of knife-wielding terrorists in a Turkish boat carrying tons of aid – medicine, building materials, school equipment, food, water purifiers, toys – for the 1.5 million Gazans who have been slowly dying under an Israeli blockade for the past three years, ever since they democratically elected a government by Hamas.

    Debka even laments that the Israel Defense Forces (IDF) – “famous for its innovative electronic warfare capabilities” – did not bother to jam the signals and images coming from the flotilla, so the whole world wouldn’t see a thing. They also lament the attack was in international waters; “the blockade zone is 20 nautical miles deep from Gaza. An Israeli raid at that limit would have been easier to justify”. Obviously, they ignore the fact that Israel has no legal international claim to the (illegally occupied) Gaza coast.

    We’re such a suffering lot. No one excels in post-Orwellian, war-is-peace newspeak as Israel. Not only the Israeli commandos are being spun as the victims; the world is being subjected to a complete Israeli-orchestrated news blackout. Nobody really knows how many civilians were killed (nine, 19,20? Mostly Turkish? Maybe two Algerians? Any Americans or Europeans?) Nobody really knows if they were carrying “weapons”. Nobody really knows at what point the commandos freaked out (eyewitnesses tell of people being killed in their sleep).

    All the several hundred passengers on the flotilla – Muslims, Christians, diplomats, non-governmental organization officials, journalists – have been de facto kidnapped by Israel. Nobody knows where they are being held. Radio static rules. Only myriad Israeli “spokespeople” control the word.

  27. Its better to keep a recording of it. So that if your guys don’t act properly you can take remedial action. It also makes it harder for people to make stuff up. I don’t really see a better way to fight this thing that doesn’t involve killing. Blocking cement would get to be a nuisance after awhile one supposes.

  28. “I don’t really see a better way to fight this thing that doesn’t involve killing. ”

    This thing being bringing food and other essential goods to starving impoverished blockaded people like those in the Warsaw Ghetto?

  29. Israel allows 15,000 tons of humanitarian aid into Gaza per week, a fourth of what the UN says is needed.

    • But those two statements don’t mean much if Israel is letting all the food through. Supposing they aren’t letting all the food through? Where is that food ending up?

  30. No one in the world will believe that Israel attacked ships in international waters carrying Israeli citizens, a Nobel Laureate, elected politicians, and noted humanitarians bringing medicines and building materials to Palestinians in Gaza, who have been living in the rubble of their homes without repairs or medicines since January 2009, without first clearing the crime with its American protector. Without America’s protection, Israel, a totally artificial state, could not exist. No one in the world will believe that America’s spy apparatus did not detect the movement of the Israeli attack force toward the aid ships in international waters in an act of piracy, killing 20, wounding 50, and kidnapping the rest. Obama’s pretense at ignorance confirms his complicity.

  31. If they were blockading food that could kill as many people as nuclear weapons. Blocking food is therefore a very serious war measure.

    But if they are just blocking weapons and cement, then thats another matter.

  32. Extermination of the Palestinian people is Israel’s goal. There is nothing else one can deduce from its actions against these poor people. This latest act is a war crime. The Israeli gov’t leadership should be brought before an international war crimes tribunal.

    The only righteous thing for us to do, individuals and governments, institutions and corporations, is to impose economic boycotts, sanctions and divestment against this rampaging murderous out-of-control apartheid state.

  33. They are not doing a real good job of this extermination. It appears to be that the Palestinians have gone through a population explosion since this goal has supposed to have been in effect.

  34. Aboriginal communities likewise, but it is not an indicator of physical health in fact the opposite is generally true.

  35. Nature is interesting that day. Plants that are under duress through drought, disease, etc can grow, flower or fruit profusely in a way they have never managed to do so before. It’s a biological defence mechanism.

  36. Graeme, collective punishment of civilians which is known and documented to lead to a lack of decent and adequate food, medicine, building materials for sanitary, adequate housing and shelter, etc. is illegal under human rights legislation including the Geneva Convention.

  37. If Iran or North Korea had done what Israel did with this flotilla and its occupants, would you have a different response. And if so why?

    The principles remain the same regardless of the perpetrators. If you say otherwise then the rule of law goes out the window entirely and that way lies chaos and brutality on an unthinkable scale internationally.

  38. What I’d want is evidence that they are denying the Palestinians food, or that the blockade is such a hassle its seriously hurting the economy. The lack of cement will cause trouble if its blocked long enough. But is that what this all hinges on?


    All the relevant humanitarian agencies have been appealing for urgent funds based on their own on-the-ground investigations to help feed, clothe, house and provide basic medicines for the people of Gaza. Orgs such as Oxfam, Save the Children Fund, the International Committee of the Red Cross, Medecins Sans Frontières etc.

    • If true that doesn’t tell us what Israel is blocking.

  40. Graeme, sorry to go way off-topic but there’s a book I’d like to recommend to you, a novel. A book to sink into and savour when you’ve got time, perhaps when travelling or in a blog-free zone. You could read it over a couple of weekends. I think you’d enjoy it. It is deliriously and deliciously good. Definitely one of the funniest, deepest, most astonishing books I’ve ever read. The protagonist and narrator Charles Arrowby is a total joy and in some ways very like you. It’s by Iris Murdoch. “The Sea, the Sea”.

  41. Okay I’ll look out for it.

  42. I’ve read this book a couple of times but the most recent occasion was very memorable. My older sister and her two teenage daughters and I drove up into Cape York for the Laura Aboriginal Dance Festival where we camped and sat in the dust with around 1000 people, performers from all over Australia and the Torres Strait Islands and observers for four days beneath towering gums, beside a river with crocodiles and caves above us with ancient rock art. Amazing country and culture.

    Anyways on the way back we decided to camp overnight at Port Douglas. What a dump after Cape York. Crap beaches. No surf.

    It rained and rained as we were trying to pitch camp so we up and left and decided after having been on the road or camping for almost 2 weeks to hightail it back to Brisbane tout de suite The girls were bored stiff and wanted to get home more than all else natch and we were all talked out and getting on each other’s nerves so I suggested we read in turns out loud Iris Murdoch’s “The Sea, the Sea” which I’d brought with me.

    It was incredible. We read in turns, laughing our heads off, totally enthralled and enchanted, stopping only for petrol and food, racing back to the car to pick up the story. The girls loved the book too (to my great relief). Apart from all else it made what would have otherwise been a long tedious, even dispirited journey home, a joy.

    This book works wonders. Trust me in this.

  43. Graeme, did you read what I wrote or am I wasting my time here?

  44. It certainly sounds like it must be something if you can use it to entertain a group of people like this. It reminds me of a friend who was going up in a car for schoolies week. From Melbourne to the gold coast. She was going up there with all her girlfriends. So I recommended and lent her this book by Ovid as well as Fear and Loathing in Las Vegas. And that seemed to do the trick.

    Thats about the only problem I have with North Queensland. The lack of good waves. So its good to hear that the waves kick in again at Cape York.

  45. You are so gorgeous.

  46. Supposing you get to be in a position to issue debt-free money. Money that is created debt-free. Those people who become a clear and present danger to effect such a project see their life expectancy reduced to months, rather than years. All Presidents who have tried this on have been subject to assassination attempts. Or so it seems.

    “In 1881, Garfield said, “Whoever controls the volume of money in our country is absolute master of all industry and commerce…and when you realize that the entire system is very easily controlled, one way or another, by a few powerful men at the top, you will not have to be told how periods of inflation and depression originate.”

    Garfield didn’t last even one month after saying this. Two weeks later he was shot.

  47. You would think that there would be these compensatory benefits for living beyond our means. What with the government borrowing hundreds of millions every week, one might imagine that we would have some easing of cost pressures.

    But this is not the case. There is no upside for borrowing all this money. Our living standards are reduced by it, both now and in the future. The borrowing of this money inhibits the ability of the economy to adapt. One of the adaptions that the economy would naturally go in for would be to allow us to pay our way as far as exports were concerned.

    No relief on the cost of living has been effected by all this borrowing. Rather the extra spending means extra living cost rises.

    “After promising to reduce the cost of living, since Labor was elected:
    Electricity prices have gone up 34%
    Water prices have gone up 29%
    Gas prices have gone up 26%
    Overall, utility bills have gone up 31%
    To compare Labor against the Coalition on an annual basis (and correcting for inflation):
    Electricity prices are going up 9.3% a year under Labor. They went up 0.5% a year under the Coalition.
    Water prices are going up 7.6% a year under Labor. They went up 1.2% a year under the Coalition.
    Gas prices are going up 6.5% a year under Labor. They went up 1.3% a year under the Coalition.
    Overall, utility prices are going up 8.2% a year under Labor. They went up 0.8% a year under the Coalition.”

  48. We cannot force wages at the bottom end up. But what we can do is bring costs down. In fact pretty much all of good policy can be seen as finding ways to bring costs and high incomes down. High incomes that have been enhanced by rigging the labor market. High costs that are high partly due to rigged labor markets, government and bank parasitism, and the failure to accumulate capital which would naturally cause prices to fall.

    The goal ought to be to have our Australian wages but with living costs that are almost as low as (lets say) Chiang Mai for example. And while me may not be able to get all the way to that point there is so much we can do to get part of the way there.

    With Australian wages and Chiang Mai costs, even the lowest paid full-time worker would be able to live very well indeed.

  49. The Catallaxians have done a useless job in resisting the global resurgence of crude-Keynesianism. Each one of them in turn, with only a couple of exceptions, has reiterated his irrational belief in the Keynesian spending multiplier.

    So hopeless have they been that the claim that the government spending 52 billion dollars on rubbish “saved the economy” is now going virtually unchallenged.

    Here is the well-known idiot Ben Eltham parroting this point of view:

    “In a bizarre post-Budget interview with Laurie Oakes in May, Hockey said “the best way to help the poorest people in the community is to have a government delivering surpluses.” Wrong again.”

    If the Catallaxians were patriotic types they would all show up and abuse the fool Eltham for his economic ignorance. I decided to reply to this moron:

    No Eltham. You are wrong and Hockey is quite correct. The goal to run surpluses puts out a filter on wasteful spending. The surpluses are used to pay off debt, and then much of those resources liberated will be added to the capital stock.

    “This is the kind of economic thinking that is seeing thousands of public sector workers laid off by US states trying to balance their budgets.”

    Yes exactly. You see we cannot rightly cut aged welfare, for example, without imposing great privations on people. The obvious economic gains to be made are from mass-sackings in the public sector. None of those high-paid public servants, sacked in this way are going to starve or be left in squalor.

    It is non-defense spending cuts, particularly the shedding of public sector jobs, that can lead to private sector revival. The whole idea is to reduce government and banking parasitism. But you don’t seem to have gotten beyond Economics 101 Keynesian propaganda.

  50. The CO2-fraud, allegedly traced to Germany 1986:

    “The original impulse to take action had come from the German Physics Society, which in January 1986 published a “Warning of an Impending Climate Catastrophe.”

    Just over six months later, in August, the newsweekly Der Spiegel popularized the German physicists’ “warning” in a spectacular cover story headlined “The Climate Catastrophe.” The image on the cover of the magazine depicted Cologne’s historic cathedral surrounded by the waters of the Atlantic Ocean: a consequence of the melting of the polar ice caps, as was explained on the inside of the issue.

    Thus was the “global warming” scare born. In Germany, in 1986.”

  51. Various responses on the unleashed thread:

    “Hockey’s statements suggest he simply doesn’t understand the concept of aggregate demand.”

    Unfortunately Ben, you don’t understand the concept of aggregate demand. Or you would not have left that link lying around. Aggregate demand is NOT merely GDP. Aggregate demand is a far greater spending figure than GDP. GDP gets rid of almost all business spending. Rerouting spending, from business spending, to consumer and government spending, does not increase aggregate demand. It merely makes the spending less productive. Rerouting spending in this way DOES increase nominal GDP. It throws people out of work, and increases nominal GDP. But so what? Nominal GDP is not aggregate demand, nor any rational proxy for economic activity. The stimulus was indeed a failure. That it stopped GDP from falling is neither here nor there.

    1. A lot of them are in trouble.
    2. If they use debt as unwisely as governments do then they go out of business.

    There is no need nor any excuse for governments to go into debt. It adds no new resources and it tends to lead to wasteful budgets. What is the excuse for it?

    GDP = C+ (net)I + G + X -M

    Obviously spending more on C and G pumps up the GDP metric. It also diverts spending from Gross investment … which is spending not covered by the GDP metric.

    Are we saying it was wonderful policy to divert money from gross investment, to C and G simply to pump up the GDP metric? How is this helpful? Wages and salaries are paid out of business spending. It ought to be obvious to anyone who has read a lot of income statements that wages and salaries are a business expense. Therefore the stimulus directly threw thousands of people out of work. And all this to make the GDP figures artificially look good.

    Great job Kevin and Julia. These people get to mess everything up and then retire on hundreds of thousands of dollars a year.


    We don’t need to re-run history to know what the effects of policy would have been. Had they run surpluses, via massive non-defense spending reductions, then less people would have been thrown out of work. We would almost definitely gone into “official recession.” But this is neither here nor there. Since its only the flawed GDP metric we are talking about.

    We need to move to total business revenues as a better metric then GDP. No one metric is perfect. But Gross Domestic revenue is a far better measure of aggregate demand and economic activity then GDP.

    Actually we ought to use many metrics and not just one or two. Our economists are handicapped by the cult of the one best metric. But they cannot even get that right.


    It really doesn’t matter what McKibbin says. McKibbon doesn’t know what he is talking about.

    Its only monetary policy that can increase total nominal business revenues. Not fiscal policy. But when I say “monetary policy” bear in mind that I don’t mean these outrageous subsidies to the banking sector that pass for monetary policy today.

    The only serious monetary policy is debt retirement via new cash creation (for stimulus) and increasing the reserve asset ratio (for contraction or to make sure that the stimulus doesn’t overshoot.)

    These are the only two measures that ought to even be legal for the reserve bank to use to increase, decrease or flatten aggregate demand. That they use interest rate subsidies is morally outrageous and an imposition on the market.


    There is no excuse for any debt in government. Comparisons between now and sometime in the past … and comparisons between us and countries overseas …. these are all irrelevant comparisons. The fact is that the government blew 52 billion on rubbish. Thats economic vandalism. They didn’t save anything or anyone. They wrecked many peoples lives and threw people out of work with their ridiculous spending.

    The debt is not minimal. Minimal as compared to what? Comparisons with overseas mismanagement and comparisons with former mismanagement are irrelevant. The fact is that they spent 52 billion on rubbish. Don’t hide behind a report. Make the argument yourself. If you spend 52 billion on rubbish thats a lot of resources wasted. In fact you are not merely hiding behind a report. You are hiding behind the ridiculous lie of the Keynesian multiplier.

    If you think flushing other peoples money down the toilet is a good thing then clearly you are going to vote for Julia Gillard. She is the flushing money down the toilet candidate. If your belief in the economics of Keynes is that virulent, then flushing money down the toilet is what you will be voting for.

  52. Interesting diagram of the overlap of species. A hard one to reconcile with mainstream views of evolution.

  53. It strikes me that if we were to base our defense strategy, substantially around these fast-firing technologies like with metal storm, or the AA12 shotgun, that we would then need to find a fast mechanized way of reloading. Take this video for example. There is no problem with firepower once you are all loaded. But reloading in the field would take a great deal of time.

  54. Posts from ABC Unleashed.

    Graeme Bird :
    08 Aug 2010 7:47:35am
    “so, a climate skeptic. most people here on the drum tend to accept global scientific consensus…”

    Its pretty bad news when a young Australian starts off by parroting lies. You know full well that there is no scientific consensus on climate. What there is though, is scientific evidence: All of it showing that extra CO2 is good for the biosphere.

    “furthermore…where’s your degree in economics?”

    I happen to have a degree in economics. I can tell you right now that there is no Keynesian multiplier and that Keynes himself was ignorant of economics. The mistake in thinking that wasting 52 billion dollars helped the economy, comes from the mistake of using GDP as a metric for aggregate demand, and as a proxy for economic activity. GDP is only a subset of aggregate demand. The totality of business revenues is a far better measure of aggregate demand.

    Blowing the money getting consumers and government to spend more did indeed lift GDP. Fiscal policy has no effect on aggregate demand. It merely re-routes spending from business spending, to consumer and government spending. Thus allowing the spending to be picked up by the GDP metric.

    Reply Alert moderator

    Graeme Bird :
    08 Aug 2010 8:07:10am
    “alas, another person caught up in the strength of a coalition scare campaign. thank goodness the minds of my generation aren’t so easily swayed.”

    HAHAHAHAHAHA. Your generation is the most mindless group of uncritical believers ever to goose-step its way out of the Australian schools. None of you seem to be able to think for yourselves. Note that, in a single post, you have confessed to have fallen for two wrong paradigms ….. The idea that tiny increases in CO2 concentration warms anything by more than a negligible amount …. and the Keynesian paradigm.

    If you are true to form as a young Australian, there will not be a single centre-left paradigm that you will not believe, without question or analysis, on the basis of alleged authority alone.

    If you ever wanted to wake up from zombie-town you would have to determine that its understanding that counts, and not merely believing. You ought not have taken it on faith that blowing 52 billion on rubbish saved any jobs. Since you don’t understand how it could possibly have done so. You don’t understand the Keynesian multiplier. You ought not have merely believed in it.

    Reply Alert moderator

  55. Motherless fractional reservist Bastards.

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