Posted by: graemebird | September 16, 2011

Nick Greiner Fails Public Finance.

The iron law of privatization is that:

“Public assets must NEVER be sold with the motive of raising money.”

But there is an old has-been out there who thinks differently:

“INFRASTRUCTURE NSW chairman Nick Greiner has declared that further privatisation will be “absolutely” unavoidable in NSW to tap funds for new projects, while urging the community to “get real” about the role of congestion charges, asset sales and other unpopular policies.

Mr Greiner, a former NSW premier, said that to fix the state’s infrastructure woes, “you’ve got to get money from somewhere” and that politicians, bureaucrats and the wider community “need to get real about all this”.

“I think asset sales are an absolutely unavoidable part, an absolutely essential part if, in fact, the government wants to increase infrastructure spending by a step function,” Mr Greiner said.

The comments signal the growing pressure that the O’Farrell government is likely to come under to broaden its privatisation program.

Potentially attractive assets could include the buses, parts of the rail network such as station management, Forests NSW, Macquarie Generation and some of Delta Electricity’s assets.

But most attention is focused on the electricity poles and wires and transmission network, which lobby group Infrastructure Partnerships Australia has claimed would unlock tens of billions of dollars.”

Clearly this is all the talk of an imbecile.   Lets go through this step by step.

INFRASTRUCTURE NSW chairman Nick Greiner has declared that further privatisation will be “absolutely” unavoidable in NSW to tap funds for new projects,”

Completely untrue. We can get funds from spending cuts, increasing royalties to get the loot before the Feds grasp it, and if a trend starts ………  from defaulting to Northern Hemisphere banks on prior debt.  But the reality is that government spending ought to come from taxation. Consider the vicious circle the Nick Greiner is implying.

He wants us to sell what we built in the past to bigshots.  Then we are to build something with the funds.  Then the logic can only be that we sell what we just built to bigshots. What is missing from this imbecilic approach to public finance?:

1. Cutting spending through department closures.

2. Developing the conditions wherein these infrastructure goods will be built by the private sector.

So the twin problems will never get solved under the approach of fools and bank-butt-lickers. The private sector will never get the environment they need to expand our infrastructure. The government will never get the good budgeting it needs to pay for such infrastructure as they are unable to get the private sector to make.

But its much worse than that.  The key to privatization and the public financing of infrastructure is the following:

Public assets must NEVER be sold with the motive of raising money.  To sell public assets which such a motive is to destroy utterly the possibility of a functioning industry post-sale.

How can we make sense of the Greiner stupidity on this matter?  Well politicians and consultants are conditioned to work under the implicit rules, that everything ought to be done in such a way as to enrich bankers.  Everything within the banks, nothing outside the banks, nothing against the banks.

Public assets must NEVER be sold with the motive of raising money.

The State government announced a little while back that they were thinking of selling the States second biggest port for two billion dollars.

Supposing I’m Premier, and I do everything I can to make it easy for the private sector to build many ports? Question: How much would I then get if I decided to sell this port? Answer: Much less than 2 billion dollars. Because the new owner would then be buying into a business that was destined to quickly become cutthroat competitive. And with a 2 billion debt around his neck he wouldn’t be able to compete.

We can see clearly now that the entire privatisation period has been a disgrace.  Because during this time we haven’t done the hard yards to get the rules and incentives right so that the private sector would now be swimming in infrastructure, that was swamping the government stuff, that the government ought to have held onto.

The government value of their assets ought to have reduced as a percentage of infrastructure. But not by privatisation. Rather the value of these assets ought to have been competed into the floor. And any attempt to sell more of this stuff off is locking in the dysfunction, that is stopping the reform, needed to get the private stuff built.

In fact a private market for infrastructure is about the hardest thing for economic science to effect. Its not something that people have done much work on.  I tried to do some theoretical work on this matter, but I gave up because all the economists I talked to were too dim to understand where I was coming from. What is difficult is to imagine how we are to get the rules right so that the market will not become cronyist. All people wanting to sell off our gear right now are gunning for a cronyist market, since they refuse to say why the private sector ought not develop its own infrastructure, and how to go about making this dream a reality.

Now there is another thing. Since it will take a long time to get the private infrastructure market humming and non-cronyist, the safest thing to do for the meantime is to hold onto the government assets. That way you have a government sector still there as a way of keeping the industry “honest” and reasonably competitive, supposing you don’t “get matters right” immediately.

Later on you’d sell of these assets at a pretty feeble price just to get a problem off your hands. There is simply no way to use asset sales as a means of finance without fucking the future of the nation up.

Now its not merely enough to note that Nick Greiner is being an idiot and has no clue of which he speaks.  Because its a more sinister matter then the mere stupidity of economists and ex-Premiers.  You see the bankers always get their way.


Look at the NBN.  Consultant Paul Budde had a good idea BEFORE  Telecom got sold. And that was to think of the underground, and infrastructural properties of Telecom, as the roads, and the business of telecom as the trucking company. And it made no sense to sell off the roads to the trucking company if we wanted a functioning industry. We had to keep the two businesses separate and we were safer to hang onto the “roads” as it were, until we had some sort of a clue as to what we were doing.

But he wasn’t listened to.  So the people who thought that the idea of privatisation was to raise funds won out. The market was permanently buggered AND THE BANKERS WON.

Now then comes along the idea of the NBN.  A good enough idea, but the idea was perverted, AND THE BANKERS WON.  But the bankers always win. Their gain comes from finding anything that is a good thing and attaching debt to it. The NBN was a good idea that became a terrible reality and this is because the bankers are always winning and will continue to do so until we start seeing them as our enemy.  Well at least the Northern Hemisphere bankers have to be regarded this way.

So when it comes to privatisation we always screw it up. A moratorium on asset sales AND governments borrowing is therefore essential.  All privatisations are being done to benefit the bankers. Thats why the former head of Macquarie bank used to pay himself 5000 bucks an hour. Thats why Rothschilds and Merryl-Lynch worm-tongues, managed to get the Queensland Premier, to sell off the rail and trains AS ONE BIG BLOCK making sure that this states rail transport can never develop until such time as a banker rebellion takes off.

Always these guys will fuck up our privatisations because they only like attaching debt to sure things. And sure things are not assets in a screamingly competitive market.

Now how can you doubt me on this matter when we have the following quote above?:

“But most attention is focused on the electricity poles and wires and transmission network, which lobby group Infrastructure Partnerships Australia has claimed would unlock tens of billions of dollars.”

You see the insanity of it? We don’t have any capacity for private sector operators to compete by setting up a parallel network. So they want to sell off, what will be for all relevant purposes, A PROTECTED MONOPOLY.

Public assets must NEVER be sold with the motive of raising money.

NEVER NEVER NEVER NEVER NEVER.  And let me tell you straight. Any company that indulgences themselves by buying assets in such a corrupted situation has to expect that they will be taken back off them at a considerable discount. Fuck you assholes. You don’t deserve a protected monopoly. You are just asking for trouble.

Build your own fucking network you cunts.  And if you cannot do that, you ought not be bribing stupid and corrupt politicians to sell you ours.



  1. “Glenn Reynolds takes the opportunity to revisit uncontested claims of oddly girlfriend-averse Barack Barack Obama doing drugs before receiving a blow job from Larry Sinclair.

    This may seem like a bit of a joke, but three gay men in Obama’s church were murdered while he was running for the Presidency. So its no laughing matter at all.

  2. Like a child, Jason Soon displays a touching faith in Wikipedia’s pronouncements on politically-incorrect thinkers.

  3. Mr B

    What happened to the New Policy? Just asking. I don’t like being teased!

  4. The public overwhelmingly doesn’t support privatisation. They know it means taxpayer rip-off and higher prices. Unfortunately, we’re stuck with the O’Farrell govt for 4 years and a lot of damage can be done, but they’ll pay for it electorally, politically and industrially and it won’t solve their problems. The state still ends up paying because that’s how privatisation works in a myriad of ways. And of course we pay, big time with less bang for our bucks.

    And privatisation is not counterposed to sacking public servants. These things are tied. And again, privatisation is also code for eliminating or ignoring many services communities need and simply giving $ to big business e.g. as in the huge subsidies/handouts in the recent NSW budget to the big coal mining and coal seam gas companies who are already making a squillion at the expense of lots of programs from health to education to scientific research e.g. in fisheries and biodiversity.

  5. Its a complete misunderstanding of how the world works to think that privatization means less debt and more infrastructure. It means more debt and less infrastructure, unless its done in the way I have described.

  6. Its hard to not see infidel tiger as a petulant little bitch. He seemed to like proceedings when I was taking a shot at a lefty who had for too long been able to operate far above his station. Now he’s gotten all shirty because I applied such undeniable realities like force, mass, and acceleration, to the false flag of 9/11.

    What a stupid little wimp. We expect the women to take some time to adjust to the reality of these things. But the blokes ought to be able to recover from the shock of the reality of what happened, being presented to them…… They ought to be able to recover quickly, or else how can we think of them as even being men?

  7. Here’s a very good interview with Kevin MacDonald:

  8. I’ve got to correct TAYA about something:

    “Or to convert that statement (using the Says law tautology) into words directed at Keynesians:-

    “recessions can never be casually explained by a general lack of demand”.”

    No you have to drill down more specifically than that:

    Recessions can CAUSALLY be explained by general lack of demand …. as one of the causes.

    Says law rather implies that recessions can never be causally explained by a lack of demand FOR CONSUMER GOODS.

    Now it may be that JB Say and James Mill stated things in a way closer to how you’ve put it. But JB Say was writing before the California Gold Rush, after the Napoleonic wars, and therefore in a time and place where fractional reserve-based monetary collapse was not a factor or barely a factor.

    Its true that Says Law, even in the current context, implies very strongly that recessions cannot possibly come from a lack of demand for finished goods. A recession can however develop out of a collapse of total demand for all types of goods.

  9. But if Jews control both the government _and_ the banks, what difference does privatisation make?

    • I don’t really see the evidence that Jews run everything. So for example in the US the Rockefeller family seems pretty influential. And old John D Rockefeller was a Southern Baptist. But then I wouldn’t know who the most influential people in the shadow government are. The 9/11 mass-murder proves once and for all that there is a shadow government. It doesn’t tell us who the most powerful people in that network are.

  10. Here is a documentary about how you had some people, with ethno-centric motives, going hell for leather to undermine American culture. A cultural war aimed at dispossessing white, protestant Americans. Now something akin to this must be going on with our economists. They are determined that we must sell everything and borrow as much as possible. Suppose I ask them the following:

    “When we sell all our mines, all our farmland, our shares, borrow as much as we can, and lose our manufacturing, on what basis do we then have to build wealth.”

    I’ve asked this question a number of times and Sinclair Davidson will not, and cannot, answer the question. Yet he and other economists continue to propagate this erroneous, and indeed inverted, idea of what comparative advantage is about. But comparative advantage has nothing to say recommending that we tolerate the financial imbalances, which will lead us to borrow too much, sell everything off, lose our manufacturing, and become impoverished. The theory of comparative advantage shows that everyone can gain from trade. Not that Australians must lose everything through trade.

    So yeah something parallel to the treason portrayed in this video is going on.


  11. The list of total disasters in crony-socialist science is a long one. Not only the global warming racket, the special relativity idiocy, the total embarrassment of the big bang, the terminal stupidity of the idea that comets are snowballs …..

    Here we have the disaster and unscience of the AIDS affair:

  12. The scientific evidence tells us that AIDS is a disease caused by long-term chemical and drug exposure. Yet the medical quacks tell us that the disease comes from a virus. Hundreds of thousands of people have died because of this bad information. Billions of dollars would have been dumped in shadow government bank accounts because of this lie.

    Here is Mullins talking about the Rockefellers attempt to change the nature of the health industry. This has to be why the medical profession has become akin to a medical maffia.



      • No, it’s caused by a virus Graeme.





      • What you’ve got to understand is that science is not about belief. Its about evidence. You didn’t seem to understand this reality when it came to the Keynesian multiplier, and so of course your colleagues continue ruining the economy. This matter isn’t understood where AIDS is concerned, so the medical profession keeps killing people. All because they put belief ahead of evidence.



  13. Nick Greiner IS a banker. Talk about putting a fox in charge of the hen house.

    This man has as much credibility as Sinclair Davidson on the board of a super fund or working for Treasury.

    • Right. I didn’t know what he’d been up to. But clearly his take on things is a banker-enrichment scheme.

  14. Nick Greiner also gets kickbacks from the coal industry. He’s nothing but a shill for the big dirty polluters.

    • What does coal have to do with pollution?

      Coal cannot pollute.

      Nick Greiner should get the Public Service Medal for promoting the burning of coal.

      You are a real fucking dummy, mate. A real dummy.

      Pollution comes from Cosmopolitans and International Wandering Crony Capitalists and Hollywood types polluting young minds with never ending sequels to Sex and the City.

      That’s real pollution. Moral pollution. I’d rather stick my head in a coal furnace than watch a Sarah Jessica Parker movie.

  15. “Some even believe we (the Rockefeller family) are part of a secret cabal working against the best interests of the United States, characterizing my family and me as ‘internationalists’ and of conspiring with others around the world to build a more integrated global political and economic structure – one world, if you will. If that’s the charge, I stand guilty, and I am proud of it.”
    – David Rockefeller, Memoirs, page 405

  16. Cancer is not a virus and AIDS has more in common with cancer than it does with the flu. So Graeme is correct.

    • Bullshit

  17. The likeliest explanation is that HIV-AIDS was manufactured by the US military as a biological weapon.

  18. Hmmm. Well the thing is it cannot be all that much of a biological weapon.

  19. Even Florence Nightingale talked about iatrogenic disease. But the seminal book on this was “Medical Nemesis” by Ivan Illich. You’d love it. All his work is brilliant.

  20. “Union-run and Obama sanctioned ‘Occupy’ Crashes Rose Parade: Attacks ‘Corporate Greed’ With 70-Foot Nazi-Era Octopus Depicting Global Jewish Conspiracy

    Expect to see Occupantists goose stepping in the parade.
    Heil Occupy!”

    Well they got the octopus side of things right? Would Catallaxy be any happier, any happier, if they made the octopus an Anglo-Saxon Octopus? Would it be right to blame Anglo-Saxon-Romano-Celts for all things?

    See how easily you people can be stooged by these banksters? Here we have the greatest and most brazen stealing-spree in all history. And no-one at catallaxy seems to so much as have noticed it. Yet you are totally stooged by the apparent ethnicity of a make-believe octopus.

    Does the existence of a make-believe octopus, make the crime, or the consequences of that crime go away.

    Catallaxy must do better. Lest they become an albatross around our necks.

  21. Albatross Around Our Necks:

  22. Really sweet song by The Lady Gaga. I haven’t been keeping up with the kids music. So I don’t know whether this is a lost treasure, or a thrashed-single and old hat:

  23. The Republican big shots are now preparing to rig the elections in Iowa. We know this since the ruling Oligarchy simply cannot afford a Ron Paul victory. Ron Paul means the end of runaway banker subsidy. So trillions of dollars in subsidy are at stake. So we had to suspect that they would rig Iowa, with Ron Paul a massively clear front-runner.

    So what has happened is the Republicans have come up with a last minute venue change for the counting of the vote. Its an absolutely panic move with no plausible deniability. Since their excuse has been that the counting could be disrupted by occupy Wall Street types!!!!!!!!!!!!! These aren’t the smartest people in the world and this indicates, that they were taken by surprise. Since given enough time they could have thought of an excuse less utterly ridiculous then the one they seem to have settled on, in what obviously is a panic.

  24. Perth Mint is selling 10 ounce silver bars for only $308.20. This is a fabulous price, and very close to spot. And spot itself will wind up a lot higher than this once the market has found its way around the MF-Global/JP Morgan heist.

  25. Iowa Caucus. Ludicrous spectacle of vote-rigging. And you turn it on, and straight away its confirmed that there is to be no recount, nor any oversight to the voting. Just another lie. And ridiculous too. Since they are selecting this virtual unknown, and completely unpopular Rick Santorum as the front-runner. Just lawlessness, and cheating as a way of life in the Republican party leadership.

  26. Exit polling had Ron Paul a clear lead in the field at 29% with Santorum only at 17%. So its just a dog and pony show with vote-counting held at a secret undisclosed location and no prospect for oversight or recounting. What a fucking disgrace. Now we have a new artificial candidate. Santorum. Up goes Perry, then Cain, the Gingrich. All bullshit media-driven fireworks rockets that come right down again. Now there is Santorum. Just a ridiculous farce.

  27. These people are absolutely fucking shameless:

    “If the results of the Iowa cau­cuses are too close to call, they’ll stay that way. Iowa state GOP offi­cial Doug Heye said Tues­day there will be no recount, even if Rick San­to­rum and Mitt Rom­ney are excep­tion­ally close when the vote count is finished.

    Heye said votes were counted under the super­vi­sion of cam­paign rep­re­sen­ta­tives, who cer­ti­fied the totals. He said the num­bers were double-checked when they were reported to state offi­cials, and there is no rea­son to check them again……”

  28. More evidence of vote-rigging shamelessness:

    “For all of their years of claims that mas­sive voter fraud is going on at the polling place, such that Photo ID restric­tions are required to ensure the integrity of the vote, you’d think that when Repub­li­cans have a chance to run their own elec­tions, they’d be sure to want it to be as “fraud” free as possible.

    Nonethe­less, despite oner­ous polling place Photo ID require­ments now passed into law in about a dozen states where the GOP con­trols both the leg­isla­tive and exec­u­tive branches, vot­ers will be able to cast their bal­lot in next Tuesday’s “First-in-the-Nation” Repub­li­can Iowa Cau­cuses with­out both­er­ing to show a Photo ID — even though the Repub­li­can Party itself sets their own rules for vot­ing there.”


  30. You have to get used to it in your country. Your country is a shit-hole of corruption now. So that now your country has become akin to Cook county and surrounding suburbs. And corruption in Cook County isn’t thought of as “A conspiracy”. Its just the normal operating practice.

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