A wake up call from Maurice Newman. The gravy train of bigger and bigger government is grinding to its inevitable halt, and Greece is the destination the Western Express is headed for. Those who promised that big-government could solve everything have bought votes, while using schools and universities to train a generation to hate free market competition. Young people were raised to blame the system and demand the handout, rather than take responsibility. The soft-west has gone too far left. The weak right has rolled over and tries to be a mini-left, settling for being the team B of “progressivism”. Newman’s best line is that the conservatives apologize where they should demand apologies. So true.
To illustrate dismal standards in science and the media, Newman cites joannenova.com.au (thanks Maurice), and thousands more Australians find out a small part of the scandalous failure of academia (specifically, Lewandowsky at UWA) and the ABC. The stories he refers too are: “Lewandowsky peer reviewed study includes someone 32,757 years old” and the “ABC got it wrong, BOM not concerned with Australian public being misinformed“. Ken Stewart at Kenskingdom deserves credit for catching out the ABC and BOM. Readers, when you want to throw your shoe [...]
Guest post by Eric Worrall
How can we predict the climate, when we can’t even predict financial markets?
US Subprime House Price Crash
Financial markets are a high stakes battle between teams of skilled traders, armed with powerful computers. [In a perfect market] The factors that affect market prices are well known, and for mathematicians, surprisingly simple to describe. Yet with all this underlying simplicity, traders don’t attempt to predict the future, because they know from bitter experience that predicting the future is futile. Instead, they use their models to gain a deeper understanding of the present.
Say you are trading financial options. Options are a right to buy or sell an underlying commodity (gold, shares in a company, tons of beef, whatever) at a future point in time, for an agreed price. The exact rules vary in different places, but essentially – your option gives you the right to buy an ounce of gold in one month, say, for $1000.
If so, and the price of gold is $1,200 per ounce, then your option is worth $200, right?
Wrong. In one month, the price of gold might be $800, in which case your option is worthless – [...]
In the past, David and I have written about how money supply is rampantly expanding, and how this benefits the spenders and the speculators while punishing the producers and the savers (in a relative sense of course). We’ve been called conspiracy theorists for pointing out systematic problems with paper currencies.
Today in The Australian we find some more people who agree with us: Rupert Murdoch, Veteran Reserve Bank economist Peter Jonson, Warwick McKibbin (former Reserve Bank Board), and Bob Gregory (Professor of economics at ANU and another former Reserve Bank Board member). It’s good to see this issue make the front page. Shame it wasn’t there 15 years ago.
“Rupert Murdoch had warned G20 finance ministers that money printing by central banks had exacerbated inequality…”
“Mr Murdoch is saying what a lot of people including central bankers are saying in private and increasingly in public,” said Warwick McKibbin
Here’s the latest US money base* graph. The massive injections started in August 2008, the numbers ran right off the old graph scale. It was a temporary liquidity injection to tide us over difficult times. It took 90 years to grow the US base money to $800 billion. Now six years later [...]
The Climate Police are coming.
In order to cool the global climate, the European Commission has decided, with infinite wisdom, that companies shall no longer be allowed to make or import vacuums with motors above 1600 watts — which is more than half of the vacuums on the market. These are climate-dangerous machines. They couldn’t just put a health warning with pics of drowning polar bears on the 2200W ones. They must be Verboten! The new rules start on September 1st. I’m sure if they could, they’d arrange a buy-back and amnesty program for high powered vacuums too.
In EUspeak, vacuums are about to get better! Apparently, they will use less energy, save money and pick up more dust too, all that was needed was regulation. (Why didn’t they think of it before?)
Consumers warned to “act quickly” before top-rated powerful vacuum cleaners sell out forever
The European Commission claims that its new rules, which are intended to help tackle climate change by cutting Europe’s energy usage, will mean consumers “get better vacuum cleaners than ever before”.
The first vacuum was made in 1860. So after 150 years of fine tuning vacuum motors, at last the gifted bureaucrat [...]
Who’s the Number One enemy of people who thrive on big-government dependence? Charles Koch. He’s the archetypal threat to their prestige and power. Not only does he have the money to actually fund programs to promote free markets, self reliance, and free speech, he could be a bit of a poster boy for the independent free-market way of life. There’s the danger more people might start to aspire to stand on their own two feet, to create 60,000 jobs while producing products other free citizens value. To take pride in their achievements, and to eschew hand-outs. Therefore it’s imperative that only moguls who toe the collectivist line be allowed to be seen to be “good” people.
..more government means less liberty…
Here he explains what he’s fighting for. What’s not to applaud? — Jo
Hat tip to The HockeySchtick.
Instead of welcoming free debate, collectivists engage in character assassination.
An Op-Ed in the Wall St Journal
By Charles G. Koch April 2, 2014 7:47 p.m. ET
I have devoted most of my life to understanding the principles that enable people to improve their lives. It is those principles—the principles of a free society—that [...]
How much is that company worth? You can look at its PE, debt, market spread, sovereign risk, and discounted cash flow, but in the end, it’s the Ben Factor (BF) which dominates all companies, metal prices, and sovereign currencies in the West.
The Ben hath spoken, and said that in future, if the economy is looking better, he might slow the printing of $85 billion US dollars a month, some indefinite non-specified day. All that was … obvious. But, world-wide investors and traders hang off the words, trying to second-guess what the BF banality implies. No one will say it, but everyone knows that it the rate of the flow of easy cash so much as slows, all hell will break loose. Balanced on this thin veneer of pretense, stocks, metals and whole national currencies change direction within minutes.
The Ben has spoken.
What hath changed since yesterday? Not much. But global paroxysm ensues.
Bernanke taper talk sends markets into a tailspin
Closing Bell: S&P 500 posts biggest fall since November 2011 on Fed’s stimulus plan
EMERGING MARKETS-Latin American stocks tumble to four-year low
China, Fed frenzy send Aust stocks tumbling [...]
Climate Analytics say that developed nations have paid $35.9 billion dollars into the UN Aid program called FastStart. This was the project rescued from the aftermath of the 2009 Copenhagen climate convention. Somehow $3 billion of private finance has been tossed in as well, making it nearly $39 billion since late 2009.
As usual, when other-people’s-money is spent on the poorest of the poor, the poor seem to get no say, and not much use out of it either.
[Bloomberg] “Seventy-one percent of the total finance went to emission-reduction ventures rather than adaptation projects such as water conservation or flood defense, today’s report shows.”
Sooner or later, the aid-recipients are going to suffer through a flood or a drought (thanks to climate-sameness). But two thirds of this aid money won’t add up to a dime’s worth of protection. Seventy percent of the funds were used to stop emissions of a fertilizing trace gas instead of preparing people against the ravages of the weather. Indeed most of the money was spent reducing something that would be considered an asset if not for the decree of climate models that we already know are wrong.
Hey, but it’s only $27 billion or so [...]
UPDATE: Cash is being flown to British Troops in Cyprus. The banks will stay shut til Thursday. The finance minister has resigned. [SkyNews]
Remember how the EU was supposed to promote stability?
Sooner or later a central fund managed by central bureaucrats is going to fail in a “central” way. This isn’t it, but we are getting closer to the center.
Without competition between states on currency, Europe left itself open to be a case study in centralized stupidity. The bureaucrats needed to stop the waste of public spending, they needed to halt the corruption, increase competition. And their answer? Steal 10% of depositor’s funds from everyone in Cyprus. It seemed like a good idea at the time.
We are now in new territory. In previous bank bailouts, if anyone took any losses it was the shareholders and the bond holders, and the depositors did not lose any money. In the Cyprus bail out, the bondholders and shareholders lose nothing but the depositors lose about 10%. (Any chance the bondholders of the Cyprus banks include the ECB or IMF?)
Where is the natural law that makes sense in this decision? Don’t punish the shareholders, or the bondholders, [...]
A video that ought to be shown to all students in every school. A concept that I don’t remember being mentioned during my education.
I like his clean uncluttered style, the snappy irreverent wit. …
Thanks Topher, and thanks to all the people who supported him to make this possible (like The Australian Taxpayers Alliance).
Note the first ever First Australian Libertarian Conference will be held in Sydney on April 6 and 7. Now that would be fun.
Send this video around
There is an economic crisis out there, but it isn’t the Fiscal Cliff.
The best summary of the economics I’ve seen comes from Mark Steyn.
The bipartisan Super Committee of Super Friends was supposed to find $1.2 trillion dollars of deficit reduction by last Thanksgiving, or plucky little America would wind up trussed like a turkey and carved up by “automatic sequestration.”
Sequestration sounds like castration, only more so: It would chop off everything in sight. It would be so savage in its dismemberment of poor helpless America that the Congressional Budget Office estimates that over the course of a decade the sequestration cuts would reduce the federal debt by $153 billion. Sorry, I meant to put on my Dr. Evil voice for that: ONE HUNDRED AND FIFTY THREE BILLION DOLLARS!!! Which is about what the United States government currently borrows every month. No sane person could willingly countenance brutally saving a month’s worth of debt over the course of a decade.
I suppose it’s possible to take this recurring melodrama seriously, but there’s no reason to. The problem facing the United States government is that it spends over a trillion dollars a year that it doesn’t have.
I never [...]
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