Posted by: graemebird | May 30, 2008

The Very THOUGHT Of Carbon Taxes Already Creating Malinvestment

http://www.theaustralian.news.com.au/story/0,25197,23770381-5014047,00.html 

This an article Mathew Warren. And despite the tone I’m going to be taking I don’t really want to shoot the messenger. Mathew is afterall  only communicating the shabby and disastrous reality of whats going on. So if my venom appears to spill onto the author he’s not really what I’m complaining about.

“A KEY piece of the emissions-trading jigsaw has fallen into place.

Yesterday’s announcement of privately funded gas-fired baseload electricity in NSW sets a floor price for carbon under the impending emissions-trading scheme of $20 a tonne….” 

Just try and consider how ass-backwards the above is. These guys are making an unprofitable investment. A MALINVESTMENT. An investment that is uneconomic. 

So what Mathew is saying here is that CRONYTOWN DEALS DRIVE THE POLICY AT MAURICE ARTHUR DALEY LEMMAS PLACE.

Since this is a malinvestment it needs a whacking great punishment on everyone else to make it profitable. And Mathew is saying that this punishment has to be $20 dollars per tonne of carbon. But in fact this is ridiculous soothsaying by dumb-economists. They cannot possibly determine that gas will stay in the same price relation with regards to coal. In fact we can be absolutely certain that gas prices will rise in relation to coal. More about that later. 

Lets look at what other crazed and brainless investments are going ahead. And what good investments are being vandalised and trashed.

“The Iemma Government’s announcement also unofficially signals there will almost certainly be no more conventional coal-fired power stations built in Australia.”

Economic vandalism that could only be justified if nuclear breeder-reactors were being commissioned as we speak.

“If there is a new coal baseload station, it will be built using clean-coal technology; at $20 a tonne for emissions, conventional coal-fired stations will be too expensive.” 

VANDALISM. ANTI-ECONOMIC IDIOCY. 

“Gas industry sources have privately calculated $20 a tonne is the minimum price needed under an emissions-trading scheme to invest in new baseload power stations.”

Yeah well what the hell would they know? And what about the future? Bear in mind that this is an industry that participated in the disgraceful giveaway of gas to the Chinese just prior to the gas price going right up. They have no idea because they do not understand where Gas stands in the current crisis. We need the gas to liquify the hydrocarbon solids. And this is another example of these boneheads pissing away this incredibly valuable resource. Are these captains of industry? Or are they corporate eunuchs lickballing the politicians? The latter I sez. Or so it seems. 

“At that price, Queensland Gas’s new combined-cycle power station will be able to compete with the existing stock of cheaper coal-fired plants. Any lower and they will not be able to proceed.” 

Right. An absolute statement of proof that this is a malinvestment and that coal-electricity is cheaper. Its bad enough having to use coal because we aren’t allowed the nuclear. But having to use gas, because the coal is being fined and punished for no reason at all, is just too much.

“The same $20-a-tonne price was forecast in economic modelling for the power industry last year.”

Nothing is more useless than economists with computer models. Don’t ever be taken in by these people. The computers are only there to hide their stupid assumptions.

“Last week, major gas player AGL signalled its intentions when it agreed to trade 10,000 tonnes of carbon permits to Westpac in 2012 for $19 a tonne.”

Oh go and get fucked you useless assclowns. You house-niggers. You couldn’t even stand up to the environmentalists and the politicians and tell them that you aint going to be pushed around by anti-science-JIVE!!!!!!!! 

Those suits you are wearing are really just small childrens pajamas. You were supposed to be men but you couldn’t put the moxie together. You are not businessmen. You ought to be working in some girlyman song and dance troupe in Southern Thailand. What the fuck would you clowns be doing getting in first to participate in this humiliation and farce? 

You are not entrepreneurs you are gutless whores.

“A $20-a-tonne price on emissions from 2010 is what major emitters call a soft start to emissions trading. A soft start translates to a $200-a-year rise in household power bills and a 5.6c-a-litre jump in petrol. It would negate the removal of the GST on fuel excise being flagged by the Rudd Government.” 

It will do a lot worse than that. You see the $20 wouldn’t be enough. These whores are getting involved in this malinvestment because they are hoping to make a killing on anti-carbon-Nazism. Where the price starts at 20 then goes to 40 then the Nazis get really encouraged and they squeeze it up to 60 and the malinvestment gets continually worse driving more and more people to third-world conditions.

“Given the political heat in rising petrol prices, it’s increasingly hard to imagine Kevin Rudd designing a scheme that would push the price of emissions any higher.”

An admission that any price is hurting us. Any carbon tax is doing us harm.

“The Government’s emissions-trading rollout strategy is being framed by the limited options available. By 2010, the world carbon price is expected to be about $50 a tonne. To date, the only accepted way to protect the Australian market is to cap the domestic price.” 

Do you see what these assholes now have in store for you? They bring in the $20, already causing cost escalation and malinvestment, and its only a wedge to bring in an economy destroying $50 deal because we allegedly have to fall in behind foreigners. We cannot make decisions for ourselves now. 

One outfit is building an 850 million dollar gas pipe which is a malinvestment, in order to build a big gas-electricity generator, another malinvestment. All the countries precious investment resources getting pissed away on idiocy.

“The Prime Minister will accept higher prices and deeper greenhouse gas emissions cuts only when a comprehensive global scheme is in place, but almost certainly not before the middle of next decade.” 

As we have seen EVEN THE THOUGHT OF THE HIGHER CARBON TAXES PRODUCES THE MALINVESTMENT

“But there’s a hitch. This soft start will mean the Government’s mandatory renewable energy target of 20per cent by 2020 will drive most of the new energy investment in Australia.”

See that? The story is we will need to start at $50 per tonne or we face these assholes stealing off us all over again to subsidise other malinvestments.

“Without it, new wind power and other renewables would need a carbon price of $40 a tonne to enter the market. With it they will crowd out many of the new gas power stations and, according to Ross Garnaut and the Productivity Commission, push up power bills even further.”

They don’t need anyone to be punished to enter the market. They just need to be left alone to become economic in their own good time. And they need good policy elsewhere. Encouraging homesteading for the purpose of aquacultural farming will help with the beginnnings of sea-based wind and wave energy generation.

But what we have here is Pigouvian Extremism Pushed To Gestapo Levels Of Fervour And Millenarianism.

I’m a bit embarrassed about it all. Because I took Pigou seriously. In the right hands and in moderation this sort of tax-substitution could be helpful. But we face a situation where our Australian Economists have turned into Pigouvian Extremists of the most callous and anti-economic variety.

Where is a country going when all its economists have turned bad?

 

 

More Later.

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Responses

  1. No lying on this site Jason. Try again. They aint businessmen. They is house-niggers. Seeing reality in your Asiatic view is just lickballing the emporer. Telling the man what he wants to hear. We cannot get to a free society with these miserable curs posing as Captains Of Industry.

  2. No lying here. You know full well I’m not anti-business.

    I’m anti-carbon tax. And against the incredible gutlessness and stupidity that these corporate eunuchs are showing here.

  3. Bird when do you sign up for one nation? I know you have been talking to david oldfield.

  4. Well its interesting what you say. Because though there are many of the older guys I have regard for in the LDP I’ve come to the point of view that the LDP is likely to pervert the concepts of freedom that I’m pretty serious about because of the young blokes. Particularly the LDP’s founder.

    So it might be better if I was trying to push the National party or Family First in a more liberty-oriented direction. Rather than knock my head against the wall with the younger guys in the LDP dogging my every step.

    So yeah your instincts aren’t too bad on that score. I don’t really know where One Nation is at these days. But I’m a bit of a fan of David Oldfield even though he’s anti-free-trade whereas I’m for unilateral free trade.

    Still I don’t believe David Oldfield is in One Nation any more. So I don’t know. If they kicked him out then they would have to be a bit suspect. I might try and see what Family First is like. Convince them that sunsetted tax exemptions are always better than spending programs. Try and convince them that we can and should develop relentless surplus balances of trade and we can do this without recourse to tariffs or restrictions on outsourcing.

  5. […] This an article Mathew Warren. And despite thehttps://graemebird.wordpress.com/2008/05/30/carbon-lies-already-creating-malinvestmentsloppy-economic…Petrol fuels political woes for Rudd TVNZRising petrol prices have ended Australian Prime Minister […]

  6. These young fellas see libertarianism as a bit of rebellion cuz. its not the authentic stuff

  7. Graeme,

    You’re citing govt policy sounding out re reducing emmissions. There is NO mention of a Carbon Tax except by yourself,. They’re talking about carbon trading schemes. Attempt to be coherant.

  8. Its still a carbon tax. Just a less effective one that costs more with more overhead and more deadweight loss.

    So if they are quoting a price of 20 AUD per tonne you can load in another 50% in damage. The fucking thing doesn’t even raise any compensatory revenue.

    It would be better if they took all these businessmen out and flogged them. At least it wouldn’t be spreading all the pain to the rest of us. Between this stupidity and the stupidity of the Reserve Bank there are going to be an ocean of tears and a lot of shouting matches in the households of the non-millionaire families.

  9. is JC that old?

    guess I should cut him some slack? must be going senile, the poor bastard

  10. Yeah. Well Saint Thomas Aquinas only lived to be 49 years old. And I thought that JC was really quite smart until just a few months ago.

    That leaves us with the uncomfortable idea that Aquinas could have become soft-headed if he’d have lived a couple more years.

  11. Now Mark Hill has come on and lied again. He has written an entire screed and the premise is that there is something dreadfully wrong with industrial-CO2-release. Thats two for two here. He knows he’s lying.

    There is something very fucked about Australian Universities.

    Mark. You are not allowed to lie on my blog.

  12. Mark you are a fucking idiot. Why would you steal off people to practice iron seeding? For what purpose you fucking communist? You are a fucking idiot. What would you hope to achieve by this mindless theft and idiocy?

  13. “Graeme,

    Have a look at some of what I’ve written on catallaxy. The solution is boreal sequestration, not taxing energy.”

    The solution to WHAT????????????????????????????????/ you fucking lying moron!!!!

  14. “It is possible that a carbon abatement scheme could be funded by purely voluntary means. Although you would oppose it, this would mean, as you call it, an “energy deprivation crusade” could not be launched.”

    It would mean no such thing. It would deny CO2 to the biosphere. It is not voluntary as you lied and claimed. And you are a prick and don’t tell lies on my blog.


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