Canada

This can only end in tears

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As Sweden’s economy slows to the worst economic growth rate in 5 years under a negative interest rate policy, one would think the Swedish Central Bank (Riksbank) would be seeking to prudently manage its asset book on the basis of appropriate risk/reward as opposed to lecturing Australia and Canada on their respective carbon footprints. What we are witnessing is yet another discrete move by authorities to manipulate markets based on fantasy rather than fact.  The hypocrisy is extreme as we shall discover.

While the Riksbank should have complete freedom in how it wishes to deploy capital, we should view this is a pathetic sop to the cabal at the European Central Bank (ECB). Since when did central bankers become experts on climate change? The RBA is no better. Deputy Governor, Guy Debelle, gave a speech in March 2019 on the risks posed by climate change which based prophecies on the data accident-prone IPCC and Bureau of Meteorology. Why not seek balance? Easier to fold to group think so as not to be outed as a pariah. Utterly gutless. Our own APRA is also pushing this ridiculous agenda on climate change reporting. It is willful negligence.

While it is true that on a per capita basis, Australia and Canada’s emissions are higher than the global average, why doesn’t the Riksbank give us credit for lowering that amount 11.4% since 2000? Even Canada has reduced its carbon emissions by 7.3% over the last 18 years. Admittedly Sweden’s emissions per capita have fallen 21.9% according to the IEA. Greta will be happy.

Why hasn’t the Riksbank taken China or India to task for their 169.9% or 94.7% growth in CO2 emissions respectively? There are plenty of oil-producing nations – Qatar, UAE, Bahrain, Saudi Arabia and Oman that have worse per capita outcomes than Australia or Canada. Do these countries get special dispensation from the wrath of the Riksbank? Clearly.

The US has pulled out of the Paris Climate Accord. If the US has marginally lower emissions per capita (15.74t/CO2-e) than Australia (16.45t/CO2-e), isn’t a double standard to write,

The conditions for active climate consideration are slightly better in our work with the foreign exchange reserves. To ensure that the foreign exchange reserves fulfil their purpose, they need to consist of assets that can be rapidly converted to money even when the markets are not functioning properly. Our assessment is that the foreign exchange reserves best correspond to this need if they consist of 75 per cent US government bonds, 20 per cent German and 5 per cent British, Danish and Norwegian government bonds.

Essentially Riksbank commitment to climate change is conditional. The US which is responsible for 13.8% of global emissions can be 75% of holdings. Australia at 1.3% can’t. No doubt sacrificing Queensland Treasury Corp, WA Treasury Corp and Albertan bonds from a Riksbank balance sheet perspective will have little impact on the total. In short, it looks to be pure tokenism. The Riksbank has invested around 8% of its foreign exchange reserves in Australian and Canadian central and federal government bonds. So perhaps at the moment, it is nothing but substitution from state to federal. Why not punish NSW TCorp for being part of a state that has 85%+ coal-fired power generation?

At the very least the Riksbank admits its own hypocrisy.

The Riksbank needs to develop its work on how to take climate change into consideration in asset management. For instance, we need a broader and deeper analysis of the issuers’ climate footprint. At the same time, one must remember that the foreign exchange reserves are unavoidably dominated by US and German government bonds. The Riksbank’s contribution to a better development of the climate will, therefore, remain small. This is entirely natural. The important decisions on how climate change should be counteracted in Sweden are political and should be taken by the government and the Riksdag (parliament).

Still, what hope have we got when Benoît Cœuré, member of the Executive Board of the ECB, lecturing those on “Scaling up Green Finance: The Role of Central Banks.” He noted,

2018 has seen one of the hottest summers in Europe since weather records began. Increasing weather extremes, rising sea levels and the Arctic melting are now clearly visible consequences of human-induced warming. Climate change is not a theory. It is a fact.

Reading more of this report only confirms the commitment of the ECB to follow the UN’s lead and deliberately look to misallocate capital based on unfounded claims of falling crop yields and rising prices (the opposite is occurring) and rising hurricane and drought activity (claims that even the IPCC has admitted there is little or no evidence by climate change). Sweden is merely being a well-behaved schoolboy.

Cœuré made the explicit claim, “The ECB, together with other national central banks of the Eurosystem, is actively supporting the European Commission’s sustainable finance agenda.

CM thinks the biggest problem with this “agenda” is that it risks even further misallocation of capital within global markets already drowning in poorly directed investment. It isn’t hard to see what is going on here. It is nothing short of deliberate market manipulation by trying to increase the cost of funding to conventional energy using farcical concocted “climate risks” to regulate them out of existence.

Cœuré made this clear in his speech,

once markets and credit risk agencies price climate risks properly, the amount of collateralised borrowing counterparties can obtain from the ECB will be adjusted accordingly.

What do you know? On cue, Seeking Alpha notes,

Cutting €2bn of yearly investments, the European Union will stop funding oil, natural gas and coal projects at the end of 2021 as it aims to become the first climate-neutral continent.

All CM will say is best of luck with this decision. Just watch how this kneeling at the altar of the pagan god of climate change will completely ruin the EU economy. The long term ramifications are already being felt. The EU can’t escape the fact that 118mn of its citizens (up from 78m in 2007) are below the poverty line. That is 22% of the population. So why then does Cœuré mention, in spite of such alarming poverty, that taking actions (that will likely increase unemployment) will be helped by “migration [which] has contributed to dampening wage growth…in recent years, thereby further complicating our efforts to bring inflation back to levels closer to 2%.

Closer to home, the National Australia Bank (NAB) has joined in the groupthink by looking to phase out lending to thermal coal companies by 2035. The $760 million exposure will be cut in half by 2028. If climate change is such a huge issue why not look to end it ASAP? This is terrible governance.

Why not assess thermal coal companies on the merits of the industry’s future rather than have the acting-CEO Philip Chronican make a limp-wristed excuse that it is merely getting in line with the government commitment to Paris? If lending to thermal coal is good for shareholders in 2036, who cares what our emissions targets are (which continue to fall per capita)? Maybe this is industry and regulator working hand-in-hand?

The market has always been the best weighing mechanism for risk. Unfortunately, for the last two decades, global central bank policy has gone out of its way to prevent the market from clearing. Now it seems that the authorities are taking actions that look like collusion to bully the ratings agencies into marking down legitimate businesses that are being punished for heresy.

This will ironically only make them even better investments down the track when reality dawns, just as CM pointed out with anti-ESG stocks. Just expect the entry points to these stocks to be exceedingly cheap. Buy what the market hates. It looks as though the bureaucrats are set to make fossil fuel companies penny stocks.

Trolling Trudeau

After it was revealed that ecomentalist Canadian PM Justin Trudeau was using two aircraft (one for him and the media entourage and the other for his luggage) on his campaign trail, opposition leader Andrew Scheer trolled him brilliantly. Hopefully those removal vans are already booked.

SBS impartiality & Amanda McKenzie’s colossal clumsiness

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Good to see the SBS has made sure it has an impartial position on topics such as climate change remains steadfastly in line with its charter. It not only avoided enlargening the font in bold of certain choice words spoken by Climate Council CEO Amanda McKenzie but it also refrained from putting a picture of the broadcaster’s ultimate boss holding a lump of coal. The irony is that the Climate Council guru’s facts were, unfortunately, wrong.

PM Scott Morrison’s facts were by and large correct. Never mind that they disagreed with McKenzie’s narrative. Good to see that SBS followed up with a rigorous line of questioning to get her to point out exactly where the PM was out of line. Sadly, that was a bridge too far for the alarmist journalists.

Presumably “colossal bullshit” should have been evidence enough. The Climate Council did release a statement but instead of countering fact, it just produced its own interpretation of what it wanted to hear, rather than point out where Morrison had blatantly told porky pies.

For instance the Climate Council stated:

Morrison statement: “Australia is responsible for just 1.3 per cent of global emissions. Australia is doing our bit on climate change and we reject any suggestion to the contrary.”

Fact-check: Australia is the 17th largest polluter in the world, bigger than 175 countries.  We are the third-largest exporter of fossil fuels in the world. 

CM: It is irrelevant. Australia’s GHG as measured by the IPCC, IEA and Eurostat are 1.3% of human-made CO2. It is the truth from sources that align with the Climate Council. It only shows that the previous 16 countries absolutely dwarf us by comparison. China is 29.3% on its own.

Furthermore to make statements that our coal exports should be counted in our emissions number is the same argument as saying that every imported passenger car, transport truck and commercial jet should have emissions docked against America, Japan, Korea and the EU.  That would be consistent

Morrison statement: “And our Great Barrier Reef remains one of the world’s most pristine areas of natural beauty. Feel free to visit it. Our reef is vibrant and resilient and protected under the world’s most comprehensive reef management plan.”

Fact-check: In 2016 and 2017, the Great Barrier Reef was severely damaged through back-to-back bleaching events which killed half of all corals on the planet’s largest living structure. Australia’s current goal, if followed by other countries, would sign the death warrant of the Great Barrier Reef. 

CM: Maybe she should speak to Professor Peter Ridd and question why the James Cook University faculty lost (although still not completely settled due to an appeal) all aspects of the unfair dismissal case against it for Ridd’s refusal to buckle to the cabal’s orthodoxy. The reef is not dying. It is thriving. So much so that Greenpeace needed to use a picture of bleached coral in The Philippines to distort the truth because the GBR presented no such photographic opportunities.

Morrison statement: “Our latest estimates show both emissions per person and the emissions intensity of the economy are at their lowest levels in 29 years.”

Fact-check:  Australia has the highest emissions per capita in the developed world. It is true that Australia’s emissions per capita have fallen more than most countries [is that colossal bullshit?], but this is from an extraordinarily high baseline [so what?] and has largely been driven by rapid population growth. Even with this drop, we still have the highest per capita emissions in the developed world. Our emissions per capita are higher than Saudi Arabia, a country not known for its action on climate change. Ultimately, our international targets are not based on per capita emissions. 

CM: Australia’s CO2 emissions per unit of GDP since 1990 have fallen 33.9%. Wrong Amanda, Canada has higher emissions per capita at 16.85 vs our 16.45. Unless under Justin Trudeau Canada has lost developed nation status which is highly possible! Saudi Arabia is 19.39. So, in fact, your comments are incorrect.

We could go on. So if Amanda McKenzie wants to throw the PM under the bus with profanity it helps if she actually provided accurate figures.

Perhaps the most colossal bullshit to come from McKenzie was this,

Over the winter we saw bushfires burning across Australia while the Amazon rainforest and the Arctic were on fire. A major new report shows that suburbs in Sydney, Perth and Melbourne could experience serious sea level disasters every year on our current trajectory.

It would appear that the Australian seaside property prices aren’t at (excuse the pun) fire-sale prices and that the bushfires in the Amazon, Australia and the Arctic are not related to climate change. The truth is that the acreage lost to bushfires have fallen 24% over the last 18 years. Unless NASA is lying.  Maybe the Climate Council has been channelling the Sierra Club CEO Aaron Mair?

 

100 days, 100 fails

A novel advertising campaign launched by the Conservative Party of Canada which lists 100 fails of Canadian PM Justin Trudeau and his team. Jordan Peterson summed him up best.

73 days to drop fossil fuels

73 days? CM thought we had 12 years. If that’s the outcome then it’s time to party hard. Well 73 days actually equates to the upcoming national election in Canada although Canadian Green’s leader Elizabeth May has made the bold prediction that unless Canada transitions off fossil fuels by the election date it faces unsafe levels of heat and a climate catastrophe.

Will Canadians be so afraid of heat that they’ll vote in such lunacy given the overwhelming drubbings handed out to parties with a “carbon” agenda in provinces like Alberta and Ontario?

The only hot air Canadians need worry about is that coming from her mouth.

Perhaps you shouldn’t be a pilot

A Canadian pilot is trying to claim the Boeing 737MAX has caused career damage, emotional and mental stress. He claims Boeing demonstrated “reckless indifference and conscious disregard for the flying public” in the development of the plane.

Presumably he migrated from the 737 Next Gen to the 737MAX meaning gaining type certification of the outgoing model would not be a stretch meaning career damage would be limited, especially given that Boeing forecasts the need for 790,000 new pilots out to 2037.

The lawsuit also contends the FAA and Boeing colluded in “an unprecedented cover-up of the known design flaws of the MAX

It should be quite disconcerting for a pilot to claim mental stress in this way given the role requires nerves of steel at important times. This is not to criticize those with legitimate mental health issues but this class action seems more like The Simpsons episode where everybody ends up suing everybody.

The stress from flying domestic routes in Canada is not the same as the stress of flying a cargo plane out of Bagram Air Force base where insurgents fire surface to air missiles.

Is it realistic to think the 400 pilots who supposedly intend to join the class action have all suffered from the same trauma?

More hypocrisy with the Climate Emergency, this time in Canada

What a joke.

Canadians are not for carbon taxes. The landslides against the Trudeau Liberals in the provincial elections of Ontario & Alberta (and the recent by-election in Nova Scotia yesterday) have all used the key platform policies of rescinding carbon taxes. 

Steve Craig and the Progressive Conservatives handed the Nova Scotia New Democrats their first loss in the constituency of Sackville-Cobequid in 34 years at the by-election. Craig won the election with 2,655 votes. Liberal candidate Michel Hindlet was a distant third with 658 votes, just ahead of Green Party candidate Anthony Edmonds who received 488 votes. Why? Because Canadians want sustainable work where they have a competitive advantage. Not to be punished with punitive taxation with policies driven by a completely incompetent government.

Candian PM Justin Trudeau and Environment Minister Catherine ‘Climate Barbie’ McKenna have essentially copied the example set by the Irish government with respect to its announced ‘Climate Emergency.’ It is pure posturing not backed up by action. The pipeline fiasco has been so incompetently handled.

The Canadian Liberal government paid $4.5bn for a 60yr old pipeline that was sold a decade ago to Kinder Morgan for $377m for an asset RBC valued at $2.5bn. Last year, Kinder Morgan threatened to cancel the project altogether. Desperate to keep it alive – and the most transparent example of how much the Canadian govt depends on oil  – Trudeau nationalised it. Another $7.5bn will be spent to “create jobs” with this pipeline.

Apart from Canadian tax dollars going to fund a US company’s ability to expand and compete against Canadian suppliers, the real truth of Trudeau’s intentions probably doesn’t become any clearer when examining the sponsored summer jobs programme (where businesses could only get greenlighted if they shared “his” values). Yes, taxpayer dollars were approved by Trudeau to help activists protest a pipeline he’s just bought. This was an ad posted by Dogwood:

“As an organizing assistant through the Canada Summer Jobs program, you will work directly with a Dogwood Provincial Organizer and the field organizing team to help our organizing network stop the Kinder Morgan pipeline and tanker project, as well as help us strengthen the public call for stronger, more accountable and transparent democracy.”

Now, Trudeau’s party has declared a climate emergency and approved the expansion of the Trans Mountain Expansion (formerly owned by Kinder Morgan) straight after.

McKenna has made so many gaffes on her carbon tax. This video shows just how little idea they have about what they wish to introduce. She also said that not only would she refuse to debate with those that disagree with her on climate change but that Canadians have a $30 trillion (yes you read right) opportunity by 2020 because of the Liberal’s carbon tax and associated environmental policies. Who wouldn’t vote for a party that can 20-bag an economy in 2 years?

More leftist lunacy. Bleat about dedication to the environment, squeal about how we face imminent death if we don’t do something and then don’t back it up with actual deeds.