#climatechange

Staring at the dictator – redux

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In Feb 2017, CM wrote a piece titled ‘Staring at the Dictator’ which highlighted that winning hearts and minds comes from sensible and reasonable dialogue. Not from widespread activism where the sole purpose is to shut down debate. Hasn’t the left learnt that physically and verbally bullying people senseless and mocking them for their supposed ignorance doesn’t work? Yet they still keep screaming the same hypo-ventilated bile, as Robert Reich has below. Nothing would make CM happier if democracy does its job in any country. If we believe he speaks for the majority, he has absolutely nothing to fear. No need for protests of any kind. Yet he shouldn’t blame the constituents for overthrowing bad governments who believe in divine incumbency. Blame bad policy.

If Democrats hadn’t treated the last election as a coronation then perhaps Hillary Clinton may have got her wish. Things had obviously become so bad at the grass roots level that the establishment was rejected. Even after all of the p*ssy grabbing allegations had been brought to light, Trump still won. His vulgarity was on the ballot. His “no one respects women more than I do” lie after this revelation in the 2nd debate was broadcast to 100s of millions. It was also on the ticket. Despite his supposed racist demagoguery, he got a higher proportion of black and Hispanic voters than either McCain or Romney. Don’t hate the player, hate the game. These are facts, as much as we may not like what they portend.

The #whitelash arguments don’t rub either because the same people voted a black man in twice. Clinton didn’t lose because she was a woman. She lost in part because she ran on the basis she was a woman. Surveys may show that Republican voters don’t want a female president however should Ambassador to the UN Nikki Haley run in 2024 she would win their support on the basis of her strength, not her gender or her Native American/Sikh heritage. Ability should be all that matters. Clinton’s constant griping 18 months after her loss shows just how poor a president she would have made. It is so bad even Rasmussen reports that a majority of Democrats don’t think she would have been any better than Trump. Take that!

If Trump loses legitimately (assuming he runs) in 2020 then so be it. In the last 1.5 years in office, American citizens have had plenty of time to weigh him in their own minds, regardless of the media’s relentless onslaught of over-the-top sensationalist click-baiting. If citizens feel he has delivered in areas that affected them on a personal level, they’re probably on balance willing to vote for the same again unless the alternative offers something better. At the same time they have had plenty of time to weigh the Democrats. They’ve seen first hand the bitterness at the State of the Union plastered on the faces of Pelosi et al. They’ve heard Maxine Waters call to her supporters to gang up on the staff in the current administration. They’ve seen countless Hollywood celebrities chant vile hate from celebrating the decapitation of the President, calling Ivanka a “feckless c*nt” to hoping 12yo Barron is ripped from Melania’s arms and caged with pedophiles. Democrat supporters have gone so far as to shoot GOP politicians. CM is quite sure that however horrid the President may be, these are hardly the types of antics that will sway opinion of the swing voters to join the self-appointed ‘righteous’ like Reich. And no, not all Democrats think like this much like many Republicans don’t endorse stupidity from their own. It lets down both sides.

Republicans or swing voters do not respond well to being called intolerant, cruel, racist, misogynist, xenophobic or climate sceptics without fact or basis. Since when does one consciously vote for others over their own needs? It isn’t selfish. If one is buried under onerous tax legislation, red tape or financial destitution do they vote to put the interests of others above their own? No. As a long term Liberal Party (aka conservatives) voter in Australia, the current party has ‘left’ me. I didn’t leave them. They did not win my vote last election. It must be earned. They don’t represent my values. It didn’t take tribal beltings to force me to a conclusion. Nor negative media to discover it. Yet somehow the activists believe that constant bleating will cause me to change my mind.

What would be nice is to see properly supported factual (not subjective rhetorical) evidence that 63mn Trump supporters are as one when it comes to all the claims they make. I would love to see the arguments in all their gore should they exist. Not a one off event. Happy to see where my own arguments hold deep flaws.  Many Trump voters detest him on a moralistic level yet are happy to champion his achievements if they feel they get a direct benefit from them. So often claims are made to undermine his followers. Every time (and often) these assertions prove to be baseless, the journey to sway the other side to see reason gets thwarted even further. Time magazine issuing a confession over the photo-shopped cover of last week ended up at the bottom of a long article. It just shows just how unapologetic they are. Kathy Griffin was sorry until she wasn’t again. Talk about self serving.

To the comments made by Robert Reich today:

“My friends, this is a dark hour. Intolerance, cruelty, racism, misogyny, xenophobia, and environmental destruction have been let loose across the land.

Trump controls the Republican Party, the Republican Party controls the House and Senate, and the Senate and Trump will soon control the Supreme Court.

Republicans also control both chambers in 32 states (33 if you count Nebraska) and 33 governorships. And in many of these states they are entrenching their power by gerrymandering and arranging to suppress votes.

Yet only 27 percent of Americans are Republican, and the vast majority of Americans disapprove of Trump. The GOP itself is now little more than Trump, Fox News, a handful of billionaire funders, and evangelicals who oppose a woman’s right to choose, gay marriage, and the Constitution’s separation of church and state.

So what are we – the majority — to do?

First and most importantly, do not give up. That’s what they want us to do. Then they’d have no opposition at all.

Second, in the short term, if you are represented by a Republican senator, do whatever you can to get him or her to reject Trump’s Supreme Court nominee, or, at the least, postpone consideration until after the midterm elections. Urge others to join with you. 202-224-3121

Third, make a ruckus. Demonstrate. Engage in non-violent civil disobedience. Fight lies with truth. Join the resistance. Participate in http://www.indivisible.org and https://swingleft.org.

Fourth, vote this November 6 for people who will stand up to all this outrage. Mobilize and organize others to do so. Contact friends and relations in “red” states, and urge them to do the same.

Fifth, help lay the groundwork for the 2020 presidential election, so that even if Trump survives Mueller and impeachment he will not be reelected.

Finally, know that this fight will be long and hard. It will require our patience, our courage, and our resolve. The stakes could not be higher.”

Perhaps what Reich fails to get is that he is almost backhanding his own supporters in his rant. It is more than likely that a majority of Republican (and no doubt many centrist Democrat) voters want the liberal left to give up because it has become nothing but white noise. The more they protest the more tuned out they become. Control of the Supreme Court? I encourage you to read the cake shop transcript where Associate Justice Sotomayor shows without a doubt she is a political activist, not a judge. It is embarrassingly obvious. The Supreme Court is only supposed to apply impartiality around current laws (or those at the time of the legal action), not make a song and dance about wish lists and try to piece a verdict around how nice it would be if things were different. She was trying to argue 2018 laws around a 2012 issue. One doesn’t have to be a lawyer to work that one out.

To the assertion that a handful of billionaire funders lean the GOPs way, he should reflect that most of the billionaires in America reside in blue states. In today’s world, the big corporations win more by backing Democrats because more onerous regulation benefits their ability to squeeze out the smaller competition thanks to red tape. Laissez faire? You’ve got to be kidding.

Perhaps in closing, the most compelling argument Reich makes is the one which stands out above all others – “we, the majority.” If he wants to stop Trump, he just needs the majority to vote on the shared basis of his beliefs – case closed. No need for protests. After all he says that Trump’s base is so small. If almost 3 years of negative spin on the sitting POTUS has failed to convince the majority, nothing will. Screaming in public may seem therapeutic to the masses but should the GOP win the mid-terms then Reich will prove just as out of touch as he was prior to the election.

Silence is golden. Let democracy take its course. Let us see whether the Russians consolidate their pick in the mid-terms…Putin has even more reason to ensure America sees more “red.”

How would you like to save the planet?

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Climate alarmists are an interesting mob. E&E Research cites that moving North Koreans toward basic necessities you and I take for granted (e.g. electricity) might necessitate coal fired power stations being erected. That would lead to a growth in emissions as the country is rich in coal reserves. This must be stopped immediately.

E&E’s Daniel Kish said, “North Koreans reduce carbon dioxide emissions by eating, rather than burning, twigs. That’s what central control always ends up doing,

So it would seem that keeping North Koreans in the dark and encouraging its dicactor to keep developing nukes and oppressing the population is preferable in order to stop global warming. Why not keep all developing nations from jumping on the grid? Why not sacrifice their people for the greater good of the world. How can E&E continue its work if sacrifices aren’t made elsewhere?!.

Saving the planet is a grand idea…but how? Is it any wonder climate skeptics keep questioning the science….?

If you ever wanted proof of Australia’s stupid energy policy look no further

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Here is a cracker from Jo Nova on proof of how retarded the thinking is with our federal and state governments when it comes to energy policy. The free market makes a compelling case for taking the opposite view of the regulators. The real danger is if more businesses move off the grid (like the Chinese Bitcoin miners) to their own affordable power the cost of electricity to the “rest of us” will soar. It doesn’t take a rocket scientist to work that out. Joe and Joanne Public will be forced to rely on an already unstable energy source with fewer people to cover ever rising network costs. As long as we look as we are doing something about climate change, that will be enough. Nuts!

Never let the facts get in the way of a story

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This story was run yesterday by two US news outlets, NY Times and CNN, based on a study from James Cook University (JCU) which actively sought to muzzle and fire a fellow professor, Peter Ridd, who criticized their poor standards of peer review.  While JCU was adamant in the quality of its study that  Great Barrier Reef (GBR) coral had fallen 15% due to “global warming, Ridd said the data showed 10% growth.

Ridd was summarily threatened by his colleagues who trawled his emails looking for dirt. Instead of being proud of the level of research that would simply prove the study of bleaching coral with data driven fact and rigour, silencing dissenters was simpler. Surely scientists would be proud to rest on the laurels of integrity and quality of analysis. One can only surmise that when agendas are at stake, facts should never get in the way of a good story.

Ridd’s blog notes,

In mid 2017, Ridd contributed a chapter in the book “Climate Change: The facts 2017” where he argued that thermal bleaching from climate change was a very unlikely threat to the GBR. He also made the point that much of the science that claims damage to the reef has been insufficiently checked, tested or replicated. He pointed out that there is a widely acknowledged “Replication Crisis” in science in general where replication tests are finding around half of the recent important scientific literature has serious flaws.”

In the day and age of Google, surely CNN and NY Times might have used their own journalistic integrity to fact check what they publish. Then again they’re climate alarmists too so best just publish anything that fits a narrative than report the truth,

Apathy the true enemy of climate alarmists

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Cold is the enemy of the climate alarmists in more ways than one. The unseasonably cold weather is not only messing with their cause, it would seem that apathy  is the more worrying symptom. As you can see in the Melbourne “March for Science”  protest, the participants are clearly cold enough to wear fur lined hooded jackets. Sydney didn’t look much different in terms of indifference.

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Indeed the “biggest threat to the planet” is their own lack of conviction. Telling. Even with the full support of the climate alarmist state media giving free plugs for the event proved to have little impact. Wouldn’t the very statistics they always espouse demand protestors in the 10s of 1000s? Given the Aussie Green Party is announcing they will run an election platform of a $20,000 universal basic income without having to work and legalized cannabis it would seem a far better pay-off staying home getting stoned.

Waking up to a horror of our own creation

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Some will say I am a pessimist. I’d prefer to be called an optimist with experience. At only age 16 (in 1987) I realized the destructive power financial markets had on the family home. Those memories were etched permanently. We weren’t homeless or singing for our supper but things sure weren’t like they use to be. It taught me much about risk and thinking all points of view rather than blindly following the crowd. That just because you were told something by authority it didn’t mean it was necessarily true. It was to critically assess everthing without question.

In 1999, as an industrials analyst in Europe during the raging tech bubble, we were as popular as a kick in the teeth. We were ignored for being old economy. That our stocks deserved to trade at deep discounts to the ‘new economy’ tech companies, no thanks to our relatively poor asset turnover and tepid growth rates. The truest sign of the impending collapse of the tech bubble actually came from sell-side tech analysts quitting their grossly overpaid investment bank salaries for optically eye-watering stock options at the very tech corporations they rated. So engrossed in the untold riches that awaited them they abandoned their judgement and ended up holding worthless scrip. Just like the people who bought a house at the peak of the bubble telling others at a dinner party how they got in ‘early’ and the boom was ahead of them, not behind.

It was so blindingly obvious that the tech bubble would collapse. Every five seconds a 21 year old with a computer had somehow found some internet miracle for a service we never knew we needed. The IPO gravy train was insane. One of my biggest clients said that he was seeing 5 new IPO opportunities every single day for months on end. Mobile phone retailers like Hikari Tsushin in Japan were trading at such ridiculous valuations that the CEO at the time lost himself in the euphoria and printed gold coin chocolates with ‘Target market cap: Y100 trillion.’ The train wreck was inevitable. Greed was a forgone conclusion.

So the tech bubble collapsed under the weight of reality which started the most reckless central bank policy prescriptions ever. Supposedly learning from the mistakes of the post bubble collapse in Japan, then Fed Chairman Alan Greenspan turned on the free money spigots. Instead of allowing the free market to adjust and cauterize the systemic imbalances, he threw caution to the wind and poured gasoline on a raging fire. Programs like ‘Keep America Rolling’ which tried to reboot the auto industry meant cheaper and longer lease loans kept sucking consumption forward. That has been the problem. We’ve been living at the expense of the future for nigh on two decades.

Back in 2001, many laughed me out of court for arguing Greenspan would go down in history as one of the most hated central bankers. At the time prevailing sentiment indeed made me look completely stupid. How could I, a stockbroker, know more than Alan Greenspan? It was not a matter of relative educations between me and the Fed Chairman, rather seeing clearly he was playing god with financial markets.  The Congressional Banking Committee hung off his every word like giddy teenagers with a crush on a pop idol. Ron Paul once set on Greenspan during one of the testimonies only to have the rest of the committee turn on him for embarrassing the newly knighted ‘Maestro.’ It was nauseating to watch. Times seemed too good so how dare Paul question a central bank chief who openly said, “I know you think you understand what you thought I said but I’m not sure you realize that what you heard is not what I meant.”

We all remember the horrors of the collapse of Lehman Brothers and the ensuing Global Financial Crisis (GFC) in September 2008. The nuclear implosions in credit markets had already begun well before this as mortgage defaults screamed. The 7 years of binge investment since the tech bubble collapse meant we never cleansed the wounds. We would undoubtedly be in far better shape had we taken the pain. Yet confusing products like CDOs and CDSs wound their way into the investment portfolios of local country towns in Australia. The punch bowl had duped even local hicks to think they were with the times as any other savvy investor. To turn that on its head, such was the snow job that people who had no business being involved in such investment products were dealing in it.

So Wall St was bailed out by Main St. Yet instead of learning the lessons of the tech bubble collapse and GFC our authorities doubled down on the madness that led to these problems in the first place. Central banks launched QE programs to buy toxic garbage and lower interest rates to get us dragging forward even more consumption. The printing presses were on full speed. Yet what have we bought?

Now we have exchange traded funds (ETFs). Super simple to understand products. While one needed a Field’s Medal in Mathematics to understand the calculations of a CDO or CDS, the ETF is child’s play. Sadly that will only create complacency. We have not really had a chance to see how robots trade in a proper downturn. ETFs follow markets, not lead them. So if the market sells off, the ETF is rapidly trying to keep up. Studies done on ETFs (especially leveraged products) in bear markets shows how they amplify market reactions not mitigate them. So expect to see robots add to the calamity.

Since GFC we’ve had the worst post recession recovery in history. We have asset bubbles in bonds, stocks and property. The Obama Administration doubled the debt pile of the previous 43 presidents in 8 years. Much of it was raised on a short term basis. This year alone, $1.5 trillion must be refinanced.  A total of $8.4 trillion must be refinanced inside the next 4 years. That excludes the funding required for current budget deficits which are growing despite a ‘growing economy’. That excludes the corporate refinancing schedule. Many companies went out of their way to laden the balance sheet in cheap debt. In the process the average corporate credit rating is at its worst levels in a decade. Which means in a market where credit markets are starting to price risk accordingly we also face a Fed openly saying it is tapering its balance sheet and the Chinese and Japanese looking to cut back on US Treasury purchases. Bond spreads like Libor-OIS are already reflecting that pain.

Then there is the tapped out consumer. Unemployment maybe at record lows, yet real wage growth does not appear to be keeping up. The number of people holding down more than one job continues to rebound. The quality of employment is terrible. Poverty continues to remain stubbornly high. There are still three times as many people on food stamps in the US than a decade ago – 41 million people. Public pension unfunded liabilities total $9 trillion. Credit card delinquencies at the sub prime end of town are  back at pre-crisis levels. We could go on and on. Things are terrible out there. Should we be in the least bit surprised that Trump won? Such is the plight of the silent majority, still delinquent after a decade. No wonder Roseanne appeals to so many.

A funny comment was sent by a dyed-in-the-wool Democrat, lambasting Trump on his trade policies. He criticized the fact that America had sold its soul for offshoring for decades. Indeed it had but queried that maybe he should be praising Trump for trying to reverse that tide, despite being so late to the party. Where were the other administrations trying to defend America all this time? Stunned silence.

Yet the trends are ominous. If we go back to the tech bubble IPO-a-thon example. We now have crowd funding and crypto currencies. To date we had 190 odd currencies to trade. Of that maybe a handful were liquid – $US, GBP, JPY, $A, Euro etc – yet we are presented with 1,000s of crypto currency choices. Apart from the numerous breaches, blow ups and cyber thefts to date, more and more of these ‘coins’ are awaiting the next fool to gamble away more in the hope of making a quick buck. Cryptos are backed by nothing other than greed. Yet it sort of proves that more believe that they are falling behind enough such they’re prepared to gamble on the biggest lottery in town. One crypto used Wikipedia as a source for its prospectus.

Yet the media remains engrossed on trying to prove whether the president had sex with a porn star a decade ago, genderless bathrooms, bashing the NRA, pushing for laws to curtail free speech, promoting climate change and covering up crime rather than look at reporting on what truly matters – the biggest financial collapse facing us in 90 years.

There is no ‘told you so’ in any of this. The same feelings in the bones of some 30 years ago are back as they were at the time of Greenspan and Lehman. This time can’t be avoided. We have borrowed too much, saved too little and all the while blissfully ignored the warning signs. The faith and confidence in authorities is evaporating. The failed experiment started by Greenspan is coming home to roost. This will be far worse than 1929. Take that to the bank, if it is still in operation because you won’t be concerned about the return on your money but the return of it!

Hot Air

Canadian Conservative politician, Robert Sopuck, tried to get the Minister for Environment, Catherine McKenna, to answer a simple question on how much the $50/ton carbon tax would lower CO2 emissions by. In true leftist ideological fashion, she rattled on about the pressing need to save the planet. He asked again – just wanting a number – which again fell on deaf ears. Surely had Trudeau’s cabinet properly assessed the financial and social impact it’d gladly be able to champion the ‘impact’ it was making on saving us. That ‘number’ would at least sound more convincing that there was method to the madness, rather than empty taxation with no benefit on limiting global warming. Talk about hot air.