JoNova

A science presenter, writer, speaker & former TV host; author of The Skeptic's Handbook (over 200,000 copies distributed & available in 15 languages).


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What Brexit market disaster?

For five days headlines have told us the markets are being “Pounded”, with “Turmoil”, like a “Wild Ride” with “bloodletting“. I thought I’d graph the horror of the last week on the FTSE100, DAX, the CAC40 and the Euronext.  Naturally big-government fans in the media have no interest in overselling the disaster that is Brexit.

Spot the crisis?

The last five years of the FTSE 100. See the carnage of the last week:

5 Year FTSE graph   TradingEconomics.com

More shocking routs on the continent. Here’s the last twelve months of the EURONEXT:

[...]

Brexit reporting — nobody mention “Switzerland” or “Norway”

Both sides of Brexit were shocked — the Remainers because they have never met a Brexiteer nor bothered to read their arguments. And The Brexiters were a bit shocked too — amazed that despite the big-media bias, puffed up economic scare and the blanket of institutional warnings, the public can still fight off big-gov with their votes in a bloodless coup. It’s a rare win.

Who wants to be tied to an economic basketcase?

Under the media shock and warnings of  the recession coming almost no one mentioned “Switzerland”, or “Norway“. Here’s the GDP growth graph from the World Bank showing just how well the EU fares compared to the non-EU countries of Australia, New Zealand, Canada, The US, Switzerland and Norway. Note the success of the EU red line which in nearly every year is outdone by nearly everyone else. The economic disaster that the UK faces is better GDP growth.

EU GDP Growth 2008 – 2015, World Bank, compared to non-EU nations, Switzerland, NZ, US

The reasons to leave the EU were so compelling the amazing thing is that 48% of the public still voted to stay. Chalk that “success” up to the media, and on an [...]

Countdown to Brexit — Britain’s Independence Day?

Best wishes to our UK friends on this important day. UPDATE: Polls shut at 10pm on Thursday UK time (7am Friday AEST). Final Tally: “breakfast time” Friday in the UK ( which is  4- 6pm on the East Coast of Australia).

“… it’s the last chance most of us are ever going to get in our lifetime to vote for an outcome which is genuinely in the interest of us the people – the demos – rather than that of the increasingly powerful, ever-more-deeply-entrenched elite.”

– James Delingpole

The British Isles Invented Freedom

“… the people of what is now called Great Britain created something entirely different from the closed and centralized regimes that have been the norm in most of human history. They produced a society where rulers were subject to the law and the law belonged to the people, where collective will did not trump individual right, and where free citizens were permitted to create and keep their own wealth. These principles have transformed the world: “The miracles of the past three and a half centuries—the unprecedented improvements in democracy, in longevity, in freedom, in literacy, in calorie intake, in infant survival rates, [...]

Children win Climate Change legal case: lose future economy

Children Win Another Climate Change Legal Case In Mass Supreme Court

[Forbes] This case is one of several similar cases in federal district courts in Oregon and Washington, and in the state courts of North Carolina, New Mexico, Pennsylvania and Colorado. All of these legal cases are supported by Our Children’s Trust, that seeks the legal right of our youth to a healthy atmosphere and stable climate in the future.

How about the legal right of our youth to live in a sustainable civilization? What if a stable climate costs more than a stable economy can afford?

Other parents might hope their children have the right to inherit a stable currency, and a government without trillions in debt.

Championed by Professor Mary Christina Wood in the Law School at the University of Oregon under the idea of Atmospheric Trust Litigation, these lawsuits claim that a government elected by the people and for the people has a duty to protect the natural systems required for the people’s survival.

So if the government is elected by the people to make these kinds of decisions, why is a court deciding public policy? The children of Massachusetts are free to [...]

Turnbull is already saying climate policies are “not set in stone”. Beware the emissions trading scheme.

It’s only been a week, and already the door is open to the emissions trading monster.  The Nationals may have got Turnbull to agree in writing last Tuesday that he would not change the Abbott policies, but writing things on paper is not enough, apparently it needs to be carved in stone.

If the member for Goldman Sachs still wants the fake “free” market solution — the one he threw away his leadership for in 2009  — he can keep the current coalition plan but use foreign credits to meet the targets. The global carbon market is the $2 Trillion dollar scheme to enrich financial houses, crooks and bureaucrats. It’s a whole fiat currency, ready-to-corrupt. The vested interests in this are knocking at every door. They’d be mad not too. But what kind of world do we want to live in? We don’t have to reward the do-nothing unproductive sector and the corrupt.

A carbon tax is a pointless waste, and the worst kind of carbon tax is a global trading scheme.

If Australians don’t want to be sold out in Paris, they need to protest now. I suggest writing to The Nationals, Libs, Nick Xenophon and media outlets.

Six [...]

The Emissions Trading Scheme monster idea is back – but the conversation is booby-trapped with fake words

It’s a tax that’s “not a tax” and a “free market” that isn’t free.

Joy. An emission trading scheme (ETS) is on the agenda again in Australia. Here’s why the first priority is to clean up a crooked conversation. If we can just talk straight, the stupid will sort itself out.

The national debate is a straight faced parody — it could be a script from “Yes Minister”, except no one would believe it. Bill Shorten argues that the Labor Party can control the world’s weather with something that exactly fits the definition of a tax, yet he calls it a “free market” because apparently he has no idea what a free market really is. (What union rep would?) It’s like our opposition leader is a wannabe entrepreneur building a  Kmart that controls the clouds. Look out Batman, Billman is coming. When is a forced market a free market? When you want to be PM.

The vandals are at the gates of both English and economics, and we can’t even have a straight conversation. The Labor Party is in flat out denial of dictionary definitions — is that because they can’t read dictionaries, or because they don’t want an honest [...]

Carbon tax and Sydney Uni economics, both slugs on the economy

Michael Harris,  Senior Fellow in the School of Economics at University of Sydney, has the impossible job of defending the monstrously ineffective carbon tax against the pointless-but-efficient “Direct Action” program. The carbon tax cost $15b, and cut emissions by 12 million tonnes. The Direct Action plan cost $660m, and is projected to save 47 million tonnes.

Having no numbers remotely on his side, Harris goes quantum semantic. Watch the leap. A tax is not a cost, only a transfer. That makes your tax bill so much easier to pay:

There is also a difference between costs to the economy, and transfers within it. The amount of revenue raised through any tax is not a cost; it is simply a transfer from one “pocket” to “another”. The money has not been destroyed, and it remains available to be spent on something.

Now it seems to me that if I buy a beer, it’s a transfer from one “pocket” to another pocket and if that money is destroyed in the process, that would be the end of the bottle shop. The world of economics rather depends on that money not being vaporised and being available for the shop owner [...]

Financial system on the rocks. Repo spike suggests derivative bomb is triggered

Here’s a monster number lurking under an invisibility cloak. It’s the Quadrillion dollar bomb, and either the fuse has been lit, or it’s already going off in a slow motion big-bang. I first mentioned it way back when I talked about the danger of Carbon credits as another fiat Currency (my 12th post). Hang on for the ride.

The Repo action is now much worse than in the GFC (check out that graph below –  the “GFC” was a speed bump). The volcano bubbling at the end suggests that the Derivatives Bomb probably started a slow motion explosion early last year.  The US Federal Reserve are trying to contain it.

Derivatives* are often used for insurance or hedging, but are mainly highly leveraged bets.They are so much larger than the actual market, it’s better described as a global casino. World GDP is around US$60 trillion but there are at least US$600 trillion of derivative contracts, perhaps as much as US$1.5 quadrillion, as measured by face value, according to the Bank of International Settlements (the “central bank of central banks”). The problem is that all the bank debt or “all the money in the world” is less than US250 trillion.

On the [...]

The German electricity crisis – twice the price, but everyone’s going broke

When the Germans mess something up, they do it properly

Germany — is aiming for a 40% cut in carbon by 2020, and have “led the way” with solar and wind power. Electricity bills are now twice the price of those in North America, and some 800,000 poor people had their power cut off because they can’t pay their bills.  Despite the high prices, gas power has become uneconomic, even though it is one the best methods for dealing with the erratic energy delivered from wind and solar. Nuclear can’t save them, they will have none after 2022 when the last reactor turns off.

The pain is pointless. For all the money spent, they aren’t saving much CO2, and aren’t changing the weather.  They end up importing many of the goods which need energy, so the emissions occur in other countries without emissions controls. The German manufacturing sector can’t compete and struggles by on subsidies. Consumers pay more for goods or pay more through tax for the subsidies. Meanwhile, in the EU politicians seem to have realized that biofuels won’t work, but they don’t have the courage to kill them off and face the backlash — instead they fund it just [...]

The simple trick to solve the impasse in the climate debate — have one (Tell the Australian govt).

For the last twenty years, the IPCC and co. have spared no expense in inundating us with full gloss, swanky adverts and catchy bumper stickers. The Rudd government spent $13.9 million on one advertising campaign “Think Climate, Think Change”. Yet the number of skeptics is growing — fully 53% of Australians are skeptical. The debate is more polarised than ever, and the “deniers” are often blamed for slowing action. So resolving the impasse, the stalemate, ought be the highest priority for the planet, right? But more advertising won’t change the trend, the issue has been marketed to death. What hasn’t been tried is the old fashioned, hard but honest way to resolve an issue — real public debate.

Tony Abbott could be the most forward-thinking scientifically-advanced world leader. He could be the first to take the bull by the horns and really tackle the climate stalemate. He might break the impasse. For the planet’s sake, we can’t afford to wait. Right?

The Australian Federal Government is seeking public consultation 

What should the Greenhouse Gas Target be? The Federal Government is seeking your input for the UNFCCC meeting in Paris, COP 21 (see ABC news). The government also wants to know [...]