EU

She might be the 2nd but by far the worst

Theresa May will resign. Finally. Utter disaster in the top job. No conviction. No moral authority. No judgment. Little support from her colleagues. No respect for the referendum. Destroyer of the Conservatives. Duplicitous EU supporter. Prepared to propose a deal to submit the British people which might as well have been an unconditional surrender to Brussels. No-one will miss her vacuous leadership. Probably the worst PM in UK history.

She may like to think that she was “the second female prime minister, but certainly not the last” but what has gender got to do with it? 17.4mn Brits would have been happy to have a transgender PM if ze could have executed Brexit. Identity politics was the last thing on their minds.

When the next female PM graces 10 Downing St it is likely she’ll seek inspiration from Maggie not May.

Keep calm and move along.

Brexit Party’s want to change politics for good

Doctors, lawyers, entrepreneurs, housewives, fishers etc. Ordinary people fed up with the duplicitous House of Commons which has failed to deliver on Brexit. Very sensible campaign and is there any wonder why in the space of a few months, the Brexit Party is polling at more than Labour and the Tories combined. Forget incumbency. If only Australia had a credible third option to shake the orthodoxy. It will eventually come because neither party has got the people at heart.

Actually, vote on the political emergency

No surprise to see The Guardian parrot on about a climate emergency. The editorial completely misses out on the political emergency we face. The economic climate is a massive issue facing Australia. When Bill Shorten tells us that he “will change the nation forever” we shouldn’t view that positively. It is probably the honest thing he has said. Labor’s policy suite is the worst possible collection one could assemble to tackle what economic headwinds lie ahead. Our complacency is deeply disconcerting.

First let’s debunk the climate noise in The Guardian.

The math on the climate emergency is simple. Australia contributes 0.0000156% of global carbon emissions. No matter what we do our impact is zip. If we sell it as 560 million tonnes it sounds huge but the percentage term is all that is relevant. Even Dr Finkel, our climate science guru, agrees. What that number means is that Australia could emit 65,000x what it does now in order to get to a 1% global impact. So even if our emissions rise at a diminishing rate with the population, they remain minuscule.

Bill Shorten often tells us the cost of doing nothing on climate change is immeasurable. He’s right, only in that “it is too insignificant” should be the words he’s searching for.

Perhaps the saddest part of the Guardian editorial was to say that the Green New Deal proposed by Alexandria Ocasio Cortez was gaining traction in the US. It has been such a catastrophic failure that she lost an unsolicited vote on the Senate floor 57-0 because Democrats were too embarrassed to show up and support it. Nancy Pelosi dismissed it as a “green dream.” At $97 trillion to implement, no wonder AOC says feelings are more important than facts.

With the 12-year time limit to act before we reach the moving feast known as the tipping point, it gets confusing for climate sceptics. Extinction Rebellion wants things done in only 6 years. The UK House of Commons still can’t get a Brexit deal done inside 3 years but can act instantaneously to call a “climate emergency” after meeting a brainwashed teenager from Sweden. It speaks volumes of the desperation and lack of execution to have to search for political distractions like this.

The ultimate irony in the recent celebration of no coal-fired power in the UK for one week was fossil fuel power substituted all of it – 93% to be exact. Despite the energy market operator telling Brits that zero carbon emissions were possible by 2025 (40% of the current generation capacity is fossil fuel), it forgot that 85% of British homes heat with gas. Presumably, they’d need to pop on down to Dixon’s or Curry’s to buy new electric heaters which would then rely on a grid which will junk 40% of its reliable power…good luck sorting that out without sending prices sky high. Why become beholden to other countries to provide the back-up? It is irrational.

Are people aware that the German electricity regulator noted that 330,000 households (not people) were living in energy poverty? At 2 people per household, that is 1% of the population having their electricity supply cut off because they can’t afford to pay it. That’s what expensive renewables do. If the 330,000 could elect cheap electricity to warm their homes or go without for the sake of the climate, which would they choose? 100% cheap, reliable power. Yet Shorten’s plan can only push more into climate poverty which currently stands at 42,000 homes. This is before the economy has started to tank!

If one looks across Europe, it is no surprise to see the countries with the highest level of fossil fuel power generation (Hungary, Lithuania & Bulgaria) have the lowest electricity prices. Those with more renewables (Denmark, Germany & Belgium), the highest. That is Australia’s experience too. South Australia and Victoria have already revealed their awful track record with going renewable. Why did Coca-Cola and other industries move out of SA after decades? They couldn’t make money with such an unreliable

Ahh, but we must protect our children and grandchildren’s futures. So low have the left’s tactics sunk that using kids as human shields in the fight for climate change wards off conservatives calling out the truth because it is not cool to bully brainwashed kids. We should close all our universities. As the father of two teenagers, CM knows they know everything already so there is little requirement for tertiary education!

The Guardian mentioned, “But in Australia, the Coalition appears deaf to the rising clamour from the electorate [on climate change].” Really?

CM has often held that human consumption patterns dictate true feelings about climate change. Climate alarmist Independent candidate Zali Steggall drives a large SUV and has no solar panels on her roof! Her battleground in the wealthy seat of Warringah is probably 70%+ SUV so slapping a Zali bumper sticker does nothing but add to the hypocrisy.

Why do we ignore IATA forecasts that project air travel will double by 2030? Qantas has the largest carbon offset program in the world yet only 2% elect to pay the self-imposed tax. Isn’t that telling? That is the problem. So many climate alarmists expect others to do the heavy lifting.

SUVs make up 43% of all new car sales in Australia. In 2007 it was 19%. Hardly the activity of a population fretting about rising sea levels. In Warringah, waterfront property sales remain buoyant and any bank that feared waves lapping the rooves of Burran Avenue would not take such portfolio risk, much less an insurance company.

Shorten’s EV plan is such a dud that there is a reason he can’t cost it. Following Norway is great in theory but the costs of installing EV infrastructure is prohibitively expensive. It will be NBN Mark II. Will we spend millions to trench 480V connectors along the Stuart Highway?

Norway state enterprise, Enova, said it would install fast chargers every 50km of 7,500km worth of main road/highway. Australia has 234,820km of highways/main roads. Fast chargers at every 50km like the Norwegians would require a minimum of 4,700 charging stations across Australia. Norway commits to a minimum of 2 fast chargers and 2 standard chargers per station.

The problem is our plan for 570,000 cars per annum is 10x the number of EVs sold in Norway, requiring 10x the infrastructure. That would cost closer to $14bn, or the equivalent of half the education budget.

The Guardian griped that “Scott Morrison’s dismissive response to a UN report finding that the world is sleepwalking towards an extinction crisis, and his parliamentary stunt of fondling a lump of coal”

Well, he might doubt the UN which has been embroiled in more scandals related to climate change than can be counted. Most won’t be aware that an internal UN survey revealed the dismay of unqualified people being asked for input for the sake of diversity and inclusion as opposed to choosing those with proper scientific qualifications. The UN has climbed down from most of its alarmist predictions, often citing no or little confidence of the original scare.

Yet this election is truly about the cost of living, not climate or immigration. The biggest emergency is to prepare for the numbers we can properly set policy against.

We have household debt at a record 180% of GDP. We have had 27 years of untrammelled economic growth. Unfortunately, we have traded ourselves into a position of too much complacency. Our major 4 banks are headed for a lot of trouble. Forget meaningless stress tests. APRA is too busy twiddling its thumbs over climate change compliance. While the Royal Commission may reign in loose lending, a slowing global economy with multiple asset bubbles including houses will come crumbling down. These banks rely 40% on wholesale markets to fund growth. A sharp slowdown will mean a weaker dollar which will only exacerbate the problem.

We have yet to see bond markets price risk correctly. Our banks are horribly exposed. They have too little equity and a mortgage debt problem that dwarfs Japan in the late 1980s. Part/whole nationalization is a reality. The leverage is worse than US banks at the time of the Lehman collapse.

We have yet to see 10% unemployment rates. We managed to escape GFC with a peak of 6% but this time we don’t have a buoyant China to rescue us. Consumers are tapped out and any upward pressure on rates (to account for risk) will pop the housing bubble. Not to worry, Shadow Treasurer Chris Bowen assures people not to panic if their home falls into negative equity! This is the level of economic nous on the catastrophe that awaits. It is insanely out of touch.

Are our politicians aware that the US has to refinance US$8.4 trillion in US Treasuries in the next 3 years? That amount of money will crowd out a corporate bond market which has more than 50% of companies rated BBB or less. This will be compounded by the sharp rise in inventories we are witnessing on top of the sharp slowdown in trade (that isn’t just related to the trade war) which is at GFC lows. The 3.2% US economic growth last quarter was dominated by “intellectual property”, not consumption or durable goods.

China car sales have been on a steep double-digit decline trajectory for the last 9 months. China smartphone shipments dwindle at 6 year lows. In just the first four months of 2019, Chinese companies defaulted on $5.8 billion of domestic bonds, c.3.4x the total for the same period of 2018. The pace is over triple that of 2016.

Europe is in the dumps. Germany has had some of the worst industrial production numbers since 2008. German GDP is set to hit 0.5% for 2019. France 1.25% and Italy 0.25%. Note that in 2007, there were 78mn Europeans living in poverty. In the following decade, it hit 118mn or 23.5% of the population.

Global bellwether Parker Hannifin, which is one of the best lead indicators of global industrial growth, reported weaker orders and a soft outlook which suggests the outlook for global growth is not promising.

This election on Saturday is a choice between the lesser of two evils. The LNP has hardly made a strong case for reelection given the shambolic leadership changes. Take it to the bank that neither will be able to achieve surpluses with the backdrop we are headed into. Yet when it comes to economic stewardship, it is clear Labor are out of their depth in this election. Costings are wildly inaccurate but they are based on optimistic growth scenarios that simply don’t exist. We cannot tax our way to prosperity when global growth dives.

Hiking taxes, robbing self-managed super fund retirees and slamming the property market might play well with the classes of envy but they will be the biggest victims of any slowdown. Australia has run out of runway to keep economic growth on a positive footing.

We will do well to learn from our arrogance which has spurned foreign investment like Adani. We miscalculate the damage done to the national brand. Adani has been 8 years in the making. We have tied the deal up in so much onerous red tape, that we have done nothing more than treating our foreign investors with contempt. Those memories will not be forgotten.

There will come a point in years to come where we end up begging for foreigners to invest at home but we will only have ourselves to blame.

The editorial closes with,

However you choose to exercise your democratic decision-making on Saturday, please consider your candidate’s position on climate and the rapidly shrinking timeframe for action. We have endured mindless scare campaigns and half-baked policy for too many decades. We don’t have three more years to waste.

This is the only sensible quote in the entire article. The time for action is rapidly shrinking. However, that only applies to the political and economic climate. One can be absolutely sure that when the slowdown hits, saving the planet will be furthest removed from Aussie voters’ minds.

Paying someone to quit smoking on your behalf

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Jo Nova has put together an excellent piece on the Labor government’s plan to buy carbon credits overseas to atone for our CO2 sins. Buying air we can’t breathe is essentially like paying someone else to quit smoking on our behalf. How do we benefit?!?

Labor leader Bill Shorten may argue that the cost of doing nothing on climate change is a “charlatan’s argument” but CM costed it yesterday. Our CO2 emissions are equivalent to 0.000016% of the global total. No matter what we do our impact is nothing. What does tokenism get us? Zero. Zip. Nada.

Jo Nova wrote,

The 35 billion dollars we will spend on these useless, fraud-prone certificates is $35 billion we are taking out of the Australian labor market, or not spending on medicine, books or holidays in Bali. Angus Taylor, Minister for Energy, has noticed that this means $10b less tax will be paid too, which means less money for hospitals and schools.

There’s nothing wrong with payments to foreigners for real goods and services. But carbon credits buy us 0.0001C of theoretical cooling we don’t need and won’t be able to measure 100 years from now. It’s the dumbest deal Australia has ever made. Fraudsters and bankers will love it.”

Carbon credit markets have had a sketchy past. Hackers broke into poorly protected government and corporate carbon registries and swindled €3.7mn. So the credits we might buy to virtue signal may end up being fraudulent.

Carbon trading is a complete scam. As Jo Nova added,

“Independent modelling suggests the 45% emissions target of the Labor party will cost at least $264bn and as high as $542bn by 2030. The Liberal Party will “only” waste  $50 – $80b.”

All for absolutely nothing. When the economy tanks our politicians can brag about achieving lower emissions targets quicker because our climate policies will have accelerated the death of industry.

Vox

While the Spanish PSOE Socialists won the most seats in the third general election held in four years, it was the anti-immigration VOX Party which had the biggest percentage gain from 0 seats to 24, (0.2% to 10.3%) of the vote. 2.67mn Spaniards voted for them.

Vox recently won 12 seats in the Andalusian parliament in December 2018, making it the first time a far-right party gained regional representation since Franco’s fascist dictatorship ended in 1975. So populism in Spain is on the rise. Vox was formed in 2013.

While PSOE won an extra 38 seats to 123 (28.7%, +6.1%) it wasn’t a win in its own right. The scandal ridden conservative PP lost 69 seats to finish with 66 (16.7%, -15.9%). The centre-right Ciudadanos Party gained 25 seats to 57 (15.9%, +2.9%). Left wing Podemos lost 29 seats to 42 (14.3%, -6.9%).

No forming of a coalition would conceivably grant PSOE a majority so it looks like Spain will have another hung parliament.

Although PSOE’s Pedro Sánchez has done a commendable job post the no confidence motion which ousted PP leader Rajoy from the top job, perhaps the EU should pay attention to yet another member state starting to show fangs of discord.

Could the message be any clearer for Theresa May?

The latest YouGov opinion poll has Nigel Farage’s Brexit Party at 28%, Labour at 22% and the Tories at 13%. Interestingly YouGov polled 5x as many people as usual. Very damning indictment on Theresa May’s lack of decisive leadership. The PM has had no authority from the beginning of this process and remaining (no pun intended) in the top job is toxic for the Conservatives.

Populist Finns Party set to more than double number of seats

The nationalist, anti-immigrant and eurosceptic Finns Party is set to grow seats from 17 in 2015 to 38 in today’s election, or represent around 17% of parliament. The party election video is an interesting one to say the least.

Whatever one’s personal views on populism, in Europe it is the fastest growing segment in politics. With 118m Europeans below the poverty line, 50% higher than 2007 is it any wonder the citizens of many member states have had enough of EU control. Finland has only 15.7% (up from 12.6% in 2007) poverty as a percentage vs 22.4% (16% in 2007) in the EU-28 but that is enough to trigger the ice cold welfare state to revolt.

Mrs May, do you understand more EU members don’t want to be held captive by Brussels?