Posted by: graemebird | February 19, 2009

The Magic Pudding Bankruptcy.

(Stutchbury Gone Native. Costello Was Right. Communists. Communists. Communists.)

Dubai port ownership raised nothing like these sorts of issues. But we ought not be selling our own ports off until we have sorted out a property-rights situation which ensures an oversupply of these ports.

How many men at arms in the United Arab Emirates armed forces? How much soft power can the UAE project at Washington politicians? Are they a nuclear power? Can Dubhai focus massive schmoozing combined with a nuclear velvet glove at Washington? 

It would be unacceptable for Saudi Arabia to own US ports at this point. The Sauds have outsized influence in Washington and the Chinese have way too much influence in Canberra already. Avoiding Australia becoming even more of a Chinese satrapy must be a national obsession to anyone interested in liberty and obviously so. This amounts to a thing of most dire urgency.

Go back to Catallaxy and admit you are wrong. It is possible for you to admit you are wrong you know. You have allowed yourself to be caught short on definitional accuracy and also you have been lazy and indulged your default tendency to sail along on the same breeze as your dysfunctional colleagues in Australian economics.

No one big company gets to rewrite our laws on the fly.  Well maybe they do but its not capitalism and they ought not be able to either literally or as a practical matter. Thats just Mexico-Slim all over again. This amountst to a situation exactly analogous to a corrupt deal where the developer gets an unjust capital gain from rezoning. 

 

The capitalist way would be to drop all zoning througout an entire council. If not Statewide. If not nationwide. Or if there is zoning it might be to do with drugs and whores being kept away from schools. That sort of thing. We ought to drop zoning but all at a time without any crony in mind at all.  Suddenly finding religion to do with property-rights when a bigshot is in difficulties is in no way capitalism. This is crony-socialism. 

Boris is sound on this one but understates his case. Think of what will happen if only Australians can bid for the leases. Or Australians and individual independent foreign millionaires.

Marvelous outcomes.

Rio goes under, and all these cheap resources funnel out at bargain basement prices to Aussie small-caps. Small operators who have their shareholders onside can issue new shares to buy some of these bargains. Bigshot million dollar salaries in Rio are all history and a big company splits up for once. Great. Thats capitalism. The big company being given an arbitrary capital gain by its Canberra mates is crony-socialism.

Currently the leasing arrangements are designed to funnel up resources to bigshoteria. So its a marvellous thing when we appear to be on the verge of a capitalistic reversal. But look yonder! There is the Chinese communists to negate this market-based restructuring. Nothing could be more heart-breaking if you have an affinity for our small-cap adventurers and for the spirit of liberty and quintessentially embodied in the fellow who goes out to the wilderness to homestead his claim. 

Costello is right and Stutchbury has gone native. Stutchbury thinks we need the communists to alter our debt equity balance. Wrong wrong wrong despite his usual good sense. 

BANKRUPTCY IS THE IDEAL ROAD TO DEBT FORGIVENESS. A NO-LOSE SITUATION FOR THE COUNTRY. 

The best way to sort of a debt equity balance is to escape the debt via bankruptcy. There is nothing more beautiful then debt forgiven via bankruptcy and the destruction of a mighty big fatcat corporation. Thats capitalism.

WE LOSE THE FOREIGN DEBT BUT GET TO KEEP ALL THE RESOURCES…….. THE MAGIC PUDDING THAT IS FATCAT BANKRUPTCY. 

Think about it? We lose the debt and keep the resources if only Rio will die and go under!  Bear in mind that Australia is a massive debtor nation.  But one with perfectly fair bankruptcy laws. If Rio is allowed to fail it will take its debts with it to debt-heaven. Thats our gain and some foreign banks loss.  Better still if Rio went under and took one of our banks with it then a massive amount of our debts are written off and yet our small-cap heroes pick up the assets for a song. 

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Responses

  1. Talking of communists, communists and communists….. Get a load of this shabby coterie of conspiring dropkicks:

    “Yesterday I attended a lunchtime seminar hosted at the Centre for Independent Studies and organised by John Humphreys on climate change policy focusing in particular on the need to think more carefully before jumping into the government’s proposed Carbon Pollution Reduction Scheme (CPRS).

    John spoke on why he thought carbon taxes were a lesser evil than emissions trading. This was followed by a fascinating presentation by Warwick McKibbin on his preferred ‘hybrid’ approach to addressing climate change which drew on his MONETARY POLICY EXPERTISE and involved the issuing of long-term permits for trade and a central bank like institution capping the price of carbon.

    Last but not least and for the first time ever, Richard Dennis of The Australia Institute entered the lion’s den of right wing inquity and delivered a very stirring criticism of the poor design features of the government’s ETS including the high administrative costs relative to the reductions that would actually be achieved, and its vulnerability to rent-seeking.

    Meanwhile it seems that the government has decided to call off its inquiry into the ETS:

    Wayne Swan last night abruptly cancelled a House of Representatives inquiry into the merits of emissions trading, which he called just last week and amended yesterday morning, because it was being interpreted as an indication the Government was having second thoughts.”

    Jason you must be the most naieve person in Sydney. Since when has some CO2-Bedwetting commie from Brookings ever discovered his inner monetary policy expertise?

    The guys a fucking moron. Even one step more deranged then Humphreys who at least knows what the second-worst policy is.

    Did any of these three Mousekateers of trace-gas-hysteria come up with a REASON to be concerned about industrial-CO2-release? Or was this completely fucking out of bounds?

  2. Typical of Cambria as of late. He asserts what he thinks, then goes to give an explanation but when you read it he barely makes any case for the assertion but merely chatters away.

    “I says let them in. Here’s why. If they think they can manipulate the commodity markets by minority ownership in one of the large firms they will be sadly mistaken and will only suffer disappointment. If they are buying into the firm for another more likely reason I think it would be fine.

    The dudes have 1.5 trillion in US dollar reserves. They know they are going to get totally screwed by the Americans because the US will inflate the value away from them and currency appreciation of the Yuan will also make it worth less over a period of time.

    Eg:
    Over a 10 year time frame the value of those reserves in today’s prices could be worth 60/80% less if you take inflation and currency appreciation into account as the correctly perceive it, the US has only one way to go with it currency and monetary policy.

    I actually think the Chinese government is trying as best it can to diversify out of the US dollar. It doesn’t want to buy gold just yet for some reason as their gold reserves are still far too low for a nation of that size and they want to own something that they believe will hold value and will be much in demand over the next 20 years as they project their own demand out to then.

    To them this investment is better than buying gold or anything else as they acquiring the assets at distressed prices while gold is on a tear. When the market settles down commodities could skyrocket.

    This is just a passive investment away from the US dollar. They’re not about to manipulate anything because they can’t. I reckon we should let them. In fact we should welcome it.”

  3. “This is what they’ve done….. I reckon.

    They’ve estimated that the PV loss on those reserves could amount to 7% a year over the next decade. That’s a reasonable estimate too by the way as US inflation and long term Yuan appreciation could easily amount to that or higher.

    Pv’ing that the loss is about almost 1/2 at 7% a year.

    They’re currently screwed. They’re panicked to death about holding US dollars and they can’t buy gold because if the market caught a whiff of that it would cause the price to skyrocket.

    So the only game in town for them is to diversify into strategic one of a kind assets that will hold value… that’s how they perceive it…..Buying these assets at distressed prices gives them an additional opportunity.

    Here’s where its good for us.

    We’re going to find it really hard covering our current account over the next few years without the potential of a large currency depreciation. This one deal would cover our current account for the next year or so and allows pressure to ease off the currency.

    We really don’t need to Aussie to drop hard simply because we can’t find financing. Not only that, but it allows is to import with a currency rate that doesn’t have to be discounted because of funding issues as others may only want to buy in when the aussie is much lower.

    This is a fantastic deal for us. In fact we should invite more and thank them. I says take it and ask for more.”

    JC WILL YOU CONCENTRATE YOU SENILE OLD TWIT.

    WHAT IS IN IT FOR US?

  4. Still no argument as to why Communist control over Australia’s resources is a good thing?

    The Chinese government is trying to nationalise an Australian company, and the Catallaxy crowd think this is “free trade”.

  5. You just never know what the ABC is going to publish:

    “Peter. Does the phrase CAPITAL ACCUMULATION mean anything to you?

    You are a disgrace mate. As far as philosophers go. How can you be involved in philosophy for the length of time you are and have no idea about economics?

    All this time in philosophy and you are still a lock-step leftist. Your plan to ration energy would murder all these people you are affecting to want to help.

    Peter does not know how to end poverty. HIs global governance ideas would lead to mass human eradication. And he has never shown any inclination to learn how poverty can be beaten.

    We are talking a real idiot-savante here. And something of an embarrassment when all is said and done.”

  6. I agree that strategic resources and infrastructure should be kept in national hands for obvious independence reasons, even if it is economically less advantageous.

    I must however say that your line of argument falls completely flat. Foreign ownership of our strategic resources and infrastructure (in particular our ports) makes absolutely no sense regardless of who the potential buyer is. I wouldn’t want the US to own them either.

  7. Well yes Liam for the forseeable future I certainly agree with the above. This is a situation where a lot of caveats must be made. All strategic resources ought to be Australian-Owned. But I was envisioning a situation where Ports were no longer a strategic resource. Where we had gotten to a situation where Ports were o powerfully well supplied that they were like any other capital good.

    Notice the leftist reversal Jason was trying on me lyam!!!! He advocates lefty policies. Calling giving special priviledges to cronytown to make selloffs to the communists FREE ENTERPRISE or FREE TRADE…… and then he’s likely to make out its me who is the left-winger for not wanting our ports in foreign hands.

    Well he might not have tried this on on this particular thread. But you wait for it.

    Basically I agree with you. The deal with the Ports is sort of futuristic and to do with discussions I’ve had with ways to structure non-free-hold property rights so as to have a powerful private infrastructure market. Rather then the current setup which hovers between pure socialist and crony-socialist.

    But I’ve found this sort of theoretical discussion virtually impossible to get off the ground with our court economists. When you start talking about this sort of thing they show their imbecility by wanting to auction off the roads to the Chinese communists making us all prisoners in our own country.

  8. “This idiocy doesn’t even compare to Bird’s martian bullshit. It’s a 100 times worse.”

    He’s a fucking dumb cunt this bootnigger. Listen here Cambria. You want to put forward your argument lets have it then?

    What is your claim about those picture? Let us put your paradigm against other possibilities and see if it stacks up.

    I’m getting fucking sick of your pretensions to occult-woggy-knowledge. If you cannot justify whatever your opinion is through reasoned argument you ought to not make a nuisance out of yourself.

  9. When a government buys a company, we usually call it “nationalisation”. But when Communists take over our resources, it’s called “free trade”.

    Let me know when you can work that one out.

  10. Yes thats precisely right. Jason Soon is pushing the nationalisation of our resources. Cambria and Jason Soon are calling for the nationalisation of resources. They are to be nationalised and centralised under government control.

    The only thing is that it won’t be our government. It will be the government of the Chinese Communists. Our only serious strategic threat.

    You don’t get more leftist than that.

  11. Alan Keyes on Obama:

    “Obama is a radical communist and I think it is becoming clear. That is what I told people in Illinois and now everybody realizes it is coming true. He is going to destroy this country and we are either going to stop him or the United States of America is going to cease to exist,” said Keyes.

    http://new.khastv.com/modules/news/article.php?storyid=16300

  12. People ought to listen to Alan Keyes. Its a bit like the Mars thing. It seems like a daft idea and yet all the evidence so far points that way. Its not OK for people to put a radical marxist in the White House, without even having the guts to ask for his birth certificate, and hope that this fellow changes his stripes on the fly.

    How would he cut loose from his radical Muslim backers and leftist friends after all this time? His behaviour in Kenya tells us that he won’t. Since his behaviour might have been expected to lose him the Presidency the explanation of it was to signal to his backers that he wouldn’t let them down. Money can buy votes in elections with a candidate capable of plausible presentation. So you can think of your backers as being the people or as being the moneymen. He made his choice as to who he is most loyal to when he went to Kenya. Since this was a case when he could not satisfy both. There are too many ways for his backers to discredit him. He couldn’t cut loose from that crowd under any circumstances and would not be inclined to.

  13. Obama’s highly compromised past is precisely why he is so valuable to his backers – if he doesn’t carry out their agenda they could destroy him in 5 minutes. So he’ll play with a straight bat as far as they are concerned.

  14. We have a loyalty test for Obama. Now is it 760 overseas bases the Americans have? A ruthless look at their defense interests would probably mean closing between 700 and 740 of these one supposes. Meeting Ron Paul most of the way but not all the way. Beefing up the remaining so that they are unassailable.

    Obama wants to increase resources largely being pissed away in Afghanistan. It could be drawing away some marginal strength off jihadism as a global movement one supposes. Paying 1000 dollars of for every dollar of positive effect. And senselessly killing primitive herdsmen who are really only responding to Saudi money no doubt. You could also look at the entire project as bleeding the Americans. Our guys ought to be brought home just as quickly as we can successfully pull them out.

    But there is a decision Obama has to make on the other side of things. There is simply no doubt that closing down production of the Raptor will be an act of utter bastardry and treason in 2009. Total command of the air means the ability to close down the opposing force with a reasonably low body count. The Raptor cost is now down to 150 million per unit. If that sonofa commie bitch fails his country in this respect, and at the same time increases economy-wrecking spending more generally, well it further confirms what we pretty much already know.

    http://lexingtoninstitute.org/1375.shtml

  15. I think we all know what path Obama will take – he’ll elect to keep all of the frivolous bases in Europe, which are there in order to put down any native revolts against the EU, while escallating the no-win war in Afghanistan. At least 700 foreign bases will stay. In addition, the Obama administration intends to reduce border security and allow as many illegal aliens as possible to stream over the border. The idea is to lose their best men on the battlefield and get indebted as much as possible, while rubbing out American sovereignty at home.

  16. Yes that sounds about right. He’ll get rid of missile-defense so as to allow the intimidation or actuality of nuclear missiles bearing down on American cities. And unless there is a serious backlash in the wind there is a good chance he will abandon the Raptor or somehow let it peter out early.

  17. […] Laing Homes declares bankruptcy How do I know I need to file bankruptcy? : Bankruptcy Law Network The Magic Pudding Bankruptcy. « A Better World: Graeme Bird For Hi.. Saab bankruptcy | KALIDASCOPE NEWS Cram Down Debated Bankrupt Ideas for Changing Bankruptcy « […]

  18. Birdy, Micheal

    You are priceless about Obama.

    Thanks for the laugh 🙂

    WHAT DO YOU MEAN BY THAT? WHAT PART OF IT ARE YOU DOUBTING?

  19. STOP LYING. WHAT IS IT ABOUT WHAT EITHER OF US SAID THAT YOU DISAGREE WITH DUMMY?

    WHAT SPECIFIC THING?

    HE’S ALREADY ATTACKED MISSILE DEFENSE SO IT CANNOT BE THAT. HE’S ALREADY MOVED TO MASSIVELY INCREASE SPENDING SO IT CANNOT BE THAT EITHER.

    SO HEY THERE DUMMY. WHAT CASE ARE YOU ATTEMPTING TO MAKE?

  20. I answered all your questions already.

    NO YOU ARE LYING. NOW WHAT FACT OF REALITY LEADS YOU TO DISAGREE WITH THE ANALYSIS. HAVE YOU INFORMATION ANYWHERE THAT WOULD LEAD US TO BELIEVE THAT BARRY HAS RENOUNCED MARXISM FOR EXAMPLE? THAT HE WAS NOT LOYAL TO FOREIGN AND MUSLIM BACKERS? THAT HE WAS BORN IN SOMEWHERE OTHER THAN THE COAST PROVIDENCE HOSPITAL IN MOMBASSA KENYA? THAT THERE IS NOT ANYTHING TO HIDE ON HIS BIRTH CERTIFICATE?

  21. SO YOU’VE PROVEN YOU DON’T HAVE AN ARGUMENT, ARE FULL OF SHIT, YOU HAVE NOTHING TO OFFER, AND YOU ARE RUNNING AWAY.

    THIS IS THE PRO-BARRY SOETORO CONTINGENT HERE. THE STUPID SIDE OF TOWN.


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