#catefaehrmann

NSW to lose State of Origin 4 (Adani)

Who’d a thunk? The Queensland Labor Government is fighting for its life. If it means trading principle for expediency, they have chosen the latter path. Even throwing on last-minute ‘infrastructure taxes’ couldn’t halt progress. Adani has been approved.

Labor has spent 8 years obstructing Adani Carmichael from going ahead. After the unlosable election result handed to its federal colleagues, Premier Annastacia Palaszczuk saw the light. Political suicide was at stake. It won’t stop the inevitable, especially post QLD Treasurer Jackie Trad’s deeper deficits announced this week.

What Greens Senator DiNatale fails to understand (despite saying every election hereon will be a #ClimateElection) is that Queenslanders couldn’t give a hoot for Victorians complaining about their wish to have jobs. The reality is that Adani Carmichael will likely be open for decades to come. It will employ those working at the mines and the local economies that support them.

What evidence has DiNatale got for thousands of jobs being destroyed? It is that level of economic comprehension that means they will remain such a joke as a credible party. Not least helped by the eloquence of NSW MLC Cate Faehrmann who thinks encouraging a blockade in a neighbouring state seems fair game.

There are only supposed to be three games in the State of Origin.  Faehrmann is guaranteed to lose her suggested matchup, much like former Senator Bob Brown’s convoy pre-election warm-up game concluded. Queensland will run rings around the NSW attack, as always!

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Cate Faehrmann plays investor for a day

Investment managers have difficult jobs. They have to forecast a whole plethora of variables from global economic growth, currencies, commodity prices and micro level corporate industries. If governments can provide ironclad policy certainty, investment choices become relatively easier. Unfortunately, perfect information detracts from performance because things get priced almost instantaneously.

It might be nice that 415 funds all call for a ratification of Paris Climate Accord (which means nothing in practice as the US isn’t a signatory and its emissions have fallen while China is a signatory and emissions continue to rise) but truth be told,  it sounds what is commonly termed in financial circles as “talking one’s book.” NSW Greens MLC Cate Faehrmann pretends to understand finance in her latest piece.

While these 415 firms might represent $32 trillion in assets under management (AUM), the truth is not all of those funds are spoken for in terms of climate-related investments. Investment advisors by their very nature have very diverse client bases. They cover basic low-risk pension (i.e. stable income) funds all the way to riskier return profiles for clients that want more exposure to certain themes or countries. If clients aren’t interested in buying climate funds, the asset managers don’t gather fees. Pretty simple.

Much of the fund industry has focused on ESG (environment, social responsibility & governance) since its inception in 2005. ESG represents around $20 trillion of global AUM, or 25% of total professionally managed funds. Therefore the other 75% of monies are deployed without this in mind. In reality, this is done because investment managers must hunt for the best returns, not those which sacrifice profitability for virtue. If NAB offered you a 10% 1-yr deposit and no solar panels on the HQ roof and Westpac offered a 1% 1-yr deposit because it did, would you invest in the latter based on its ecomentalism?

Let’s take the world’s largest public pension fund (2 million members), California Public Employees’ Retirement System (CalPERS) which is a cosignatory to this demand for climate action. Apart from the fact that this $380bn fund has been so poorly managed (marked to market unfunded liabilities are c.US$1 trillion), its portfolio consists of widespread ownership of met coal, petroleum and other mining assets. It owns bonds in fossil-fuel producing nations such as Abu Dhabi, Qatar and Saudi Arabia as well as highly environmentally unfriendly aluminium smelters in the world’s biggest polluter, China. So there goes the rhetoric of “demanding” Paris is ratified, that we shift to a low carbon economy and we force companies to report their carbon commitments.

It is frightening that some members of our political class believe that investment managers which collaborate in groupthink are worthy of listening to. On the contrary, the performance of many must be sub par. It is a sad reality that 80% of large-cap fund managers fail to outperform the index on a regular basis. So praying for governments to backstop investments they deployed capital into shows more desperation than innovation.

Maybe we should think of Adani as a classic example of investment at work. While Annastacia Palaszczuk’s government is backflipping on the Adani Carmichael coal mine after the electoral drubbing handed out to federal colleagues, the voluntary infrastructure tax is a cynical way to try to make the project less financially viable. After 8 years of ridiculous and onerous environmental approvals, Adani probably think it only needs to wait til October 2020 when an election will wipe out Queensland Labor from government and the infrastructure tax will be repealed soon after.

CM has long held that the non-ESG names are the place to invest. Most of the auto-pilot, brain dead, virtue signalling group think money has been poured into ESG. All non-ESG companies care about is profitability, not focusing on all the soft cuddly things they do displayed on the corporate lobby TV screens on a loop. Sadly when markets inevitably implode, investors always seek safe havens to limit the damage. As so much money is collectively invested together, so the bigger the stampede to the relatively attractive values provided by the stocks that have been cast aside by “woke” investors.

Climate change to percolate coffee prices?

Climate change is such a force of nature. CM’s local newspaper said it affected household pets, a university study said it created toxic masculinity and now the Daily Mail reports that coffee prices could soar due to climate change! The thought our ritual cup of Joe in Australia could cost as much as $7! Torn asunder.

Never mind that coffee bean commodities trade at 1/3rd peak prices of 8 years ago. Bit of a buffer, wouldn’t you say? Ironically coffee retail prices have only crept higher in Sydney meaning that rent and wages have been a larger factor on our morning kick starter than the beans themselves.

The Mail reports,

Mark Dundon, 57, co-owns Seven Seeds cafe in Carlton, an inner-north suburb of Melbourne, and has been a part of the cafe scene for 18 years. 

He says climate change is making it harder for farmers in South America and South-East Asia to grow coffee and once they sell their product to major companies, the price they receive is often below the production costs.  

He believes prices could explode because producers are abandoning the industry for better work.”

He needn’t worry. The 16yo pig-tailed high priestess of the global climate emergency movement can lead worldwide protests to make sure her band of teenagers don’t acquire such a filtered caffeine habit. That way we poor adults won’t have excess demand pressures to keep us struggling through the day.

What will likely happen is a lot of consolidation driven by the majors like Nestle who will keep a lid on prices so we won’t need to sacrifice several cups a day habits.

Perhaps until Mr Dundon joins the “die-in” climate emergency protests in central Melbourne we can remain safely assured his business is doing ok, especially now that he has probably overheard his customers thinking of booking their ski trip to Falls Creek a month early due to the massive snow dumps!!

If worst comes to worst Baldrick can always find us substitutes.

Thanks to Simon F. for the flag on this story.

Cate Faehrmann angry only 5 support her climate emergency

6 out of 42 NSW Legislative Councilors voted in favour of a “climate emergency” and Greens MLC Cate Faehrmann is upset. Only goes to show that two election drubbings on said subject should leave an “as expected” result like this. She should be embarrassed to publish such a post. “This is how poorly we prosecute our case” is all it suggests.

Faehrmann must understand that the NSW LC is not The Guardian. An editor can compel the speech of journalists to declare “climate emergencies”. Best not pick the motion on such a bitterly cold day. Good to see the majority of parties didn’t fold like the British parliamentarians did after being visited by a pig-tailed 16yo.

Does apathy come before extinction?

NSW Greens politician Cate Faehrmann wrote of her disappointment at the low numbers attending the school climate strike today. CM wonders whether apathy is the penultimate stage to extinction?

CM finds it hard to reconcile how Faehrmann has only just started to realize there is a need to “develop new strategies.

She wrote,

Not a massive crowd at today’s Strike 4 Climate in Sydney and I’m sure our opponents will use that against us. However, it’s not surprising so close to a demoralising election result for us climate activists. It doesn’t mean we stop protesting. We have to keep going.

For now though, we take stock, recover and then get back to work on building support for urgent action to address the climate emergency upon us. That means absolutely continuing to campaign like we know how, because the hundreds of thousands of you who have been working for climate action have been bloody effective in raising the issue to the top of the national agenda. However, we also have to develop new strategies to reach new audiences to win. We need to build new alliances and develop a greater understanding of people’s motivations and values. We need to be prepared to work with everyone over the next few years because as long as we continue to frame this as a ‘fight’ on climate change against the conservatives, winning for the ‘right’ is stopping genuine action.

It’s going to be the toughest thing we’ve ever done but we have to broaden support beyond those who voted for climate action last weekend. Do you think it’s possible? How? I’d really love your thoughts on this.

Here’s a suggestion – try debating in open forums with facts not feelings. No hysteria. It will really help. Belittling skeptics by screaming through megaphones and brainwashing children aren’t activities that win over the majority of the public you wish to sway.

Will Bill Shorten declare a climate emergency?

Why is Greenpeace demanding PM Scott Morrison declare a ‘climate emergency’? Why not badger Bill Shorten? Labor has an uncosted climate change policy but gone one step short of declaring a full blown “climate emergency” despite the cost of doing nothing being so huge. Probably because climate change isn’t as big an election issue as made out and declaring catastrophe might wreck his chances to move into The Lodge.

Ironically Greenpeace just wrote about the success of Extinction Rebellion with respect to climate emergency. In the process revealing how useless it is at public advocacy to praise a rival playing in the same donation pool. Will these two leftist groups eat each other in months to come when they realize they’re fighting over the same funds?

Are the Greens expecting the Libs to hold onto power? Even if Morrison declared an emergency, not one Greens voter would put Liberal as their second preference.

What we do know is the Greens love law breakers. It is a $3,000 + GST per person fine to climb onto unauthorized parts of the Sydney Harbour Bridge. 15 of them. $45,000 for Premier Gladys Beijiklian. It doesn’t matter if they were experienced abseilers. They should be prosecuted.

Instead of condemning illegal activity the Greens, true to form, were applauding! NSW Greens politician, Cate Faehrmann, was quick to say,

BREAKING: Protesters have scaled the Sydney Harbour Bridge calling on Australia to declare a climate emergency! I applaud their actions 100%. Governments aren’t listening so more and more people are taking desperate action to be heard.”

Imagine if pro-Adani groups handed out leaflets on the benefits to jobs and the economy. The Greens would censure the activity as unconstitutional and demand they be arrested and jailed for heresy.

Why the Greens will never be taken seriously

NSW Greens MLC Cate Faehrmann proves why her party can never be taken seriously to post this sort of potty humour surrounding the school climate strike.

Clearly she would be prime for the education portfolio with wit like that were the Greens ever to take office. Presumably profanity passes as creative writing in Cate’s world. Hopefully the kids used recycled cardboard and non-acrylic marker pens.

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