Socialism

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.

Greta, the poster child for a dysfunctional education system

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You have to hand it to the left. They truly have indoctrination down pat. While there is a sense of awe at the sheer number of kids who attended Friday’s protests around the world at the expense of school (in some cases even exams), 16yo Swedish teenager Greta Thunberg, the poster child for ‘climate change’, has exposed how dysfunctional our educational system has become. Forget discipline. Dismiss reasoned discussion. Conform and get rewarded for it.

CM has always felt sorry for Greta’s exploitation. She typifies the style of propaganda used over generations. The way that the UN, EU or World Economic Forum hang off her every word. It is deeply embarrassing. Made worse by the hypocrisy of 1,500 private jets used to fly to hear her speak in Davos.

Many teachers and parents of these kids are no better. Often espousing patronizing and sanctimonious sermons about the intelligence of the youth today. Not to worry, Extinction Rebellion has even published a piece on hypocrisy. Thomas Sinclair wrote,

Someone who doesn’t know the evidence might perhaps be persuaded to review it. But someone who thinks I’m a hypocrite may suppose that I’ve reviewed the evidence and am acting on it — so she can skip the review herself and take my actions as her guide.” Take that!

He goes on,

However, XR can do better than the standard response. The most important point is this. There is no hypocrisyDriving to XR protests, or using vinyl banners, or eating a Pret sandwich at an XR roadblock — these are not hypocritical actions. Hypocrisy is a matter of preaching one thing but practising another. But what XR preaches is a radical change of the system within which we must make our choices, not of the choices we make within the system as it stands.

What infallible logic! How could we be so obtuse? Those kids CM found eating McDonald’s before the climate strike were completely aware of their actions. They were “highlighting” the problem of the fast-food chain’s utter disdain for the planet to serve food in single-use plastics and paper packaging. It was a cry to get McDonald’s to change its wicked ways. Or was it they were just oblivious to the fact that, while gorging on hamburgers, fries and thick shakes, were unable to fathom their own double standards. Lucky for them, Sinclair has a get out of jail free card. Who knew?

It wasn’t so long ago that a CIS study in Australia revealed that 58% of millennials had a favourable view of socialism. Unfortunately, 51% did not know who Chairman Mao was. Another 32% did not know Stalin and 42% hadn’t heard of Lenin. If we combine with “know but not familiar” with “don’t know” we see almost 80%, 66% and 74% respectively. Oh, how wonderful to learn in school about three men whose social policies led to the deaths of 10s of millions. Unbeknownst to them, many of their teachers follow the same Marxist mindset.

What more proof do you need when an RMIT senior lecturer tweeted he’d award full marks for 5% of the course for those that attended provided they sent in a selfie. Presumably, those that didn’t submit a selfie would be secretly docked marks. RMIT made a glib response to the professor’s tweet which went along the lines of defending the indefensible. Pathetic. He should be severely reprimanded or sacked for completely unprofessional conduct.

Corporations often complain about the difficulty in hiring the skills they need to grow. Shouldn’t they now be extra wary that the degrees awarded to those they are looking to hire have been issues on the basis of aligned participation, not academic effort? Qantas CEO Alan Joyce and Virgin Australia CEO Paul Scurrah might make noise about having to be big on social justice to attract the next generation but if they attend schools which openly support activism quite frankly they are all theirs! CM would prefer investing in companies that hire kids who got their education that cost $2.50 in late charges at the public library.

CM has written before on the slipping standards in Aussie education. Is it any wonder when a growing number of teachers are radical activists. Our education system needs a massive overhaul. Our ranks in maths, science and literacy have all been heading south. We aren’t teaching our kids that the real world out there is a touch place. Wrapping them in cotton wool will not serve them at all in later life. That will ironically be the real impact of chasing climate change agendas and the misguided policy that was enacted due to weak-willed authorities.

Although don’t get too excited about a sea change in thinking to fix this awful course. The latest 2019 OECD report has been captured by the warming cult, justifying worsening trends in education on shifts in society, even going so far as to quote (p.16) Decca Records rejecting The Beatles back in 1962 as evidence of how we can get it wrong.

Justifying – although not admitting – the slip (denoted as a “shift”) in education standards on climate change is insane in the extreme. Lucky for us there is a summary version written by the OECD. The full report is here. 479 pages of blather.

There are too many examples of schools around the globe folding to this Marxist nonsense. In the past, student bodies embracing Marxism as a fad were par for the course. Now the university faculties are the drivers. For example:

Posters from the University of San Francisco (uSF) point at white students so they appropriately check their privilege. Karl Marx may have recently turned 200 but his legacy lives and breathes in California. So much for universities being the cradle of free and open thinking.

The Inclusive Communications Task Force at the Colorado State University has introduced an appropriate language guide and it has deemed the words “America” and “Americans” might prove offensive to some and have discouraged their use on campus.

The University of Texas launched, “MasculinUT”, a program which was organized by the school’s counselling staff with a poster series encouraging students to develop a “healthy model of masculinity.” The program is built around “restrictive masculinity” and tries to encourage men to drop traditional gender roles to “act like a man”, be “successful” or “the breadwinner.”

Dr. Aaron Brough of Utah State University conducted a study to see if there is a correlation between toxic masculinity and climate change. His assumptions ran the line that men see environmentalism as more feminine and get triggered if forced to make ecological choices if they feel threatened.

The University of Melbourne allowed an artistic performance that required “paying” white customers access on the basis of signing an acknowledgement of white privilege. The $600mn+ taxpayer-funded University of Melbourne’s motto is Postera Cescam Laude, which is Latin for “We shall grow in the esteem of future generations.” It is not clear whether the founders of the UoM had Marxist theories at the forefront of their minds in 1853. Growing the esteem of future generations was not to come by cutting down those whose passions as individuals cause them to strive for greatness. Yet the radical leftists believe esteem comes, not from effort, but allocation.

Don’t think that the indoctrination begins in secondary or tertiary education. From tender ages, in the Democratic People’s Republic of Victoria, some educational apparatchiks believe a grandparent kissing their grandchild can violate them and can be considered assault. In what world does a grandparent showing affection to their own flesh and blood have incest on their minds? Most likely never.

It would seem to CM that the most important Royal Commission to be conducted is on our education system. From Safe School programs to universities, Australia’s long term future is being seriously impacted by utterly valueless indoctrination. We will not be the lucky country for much longer because this garbage is already seeping into corporate board rooms.

Note CM in no way thinks Greta Thunberg is associated with Nazis.

Jacinda’s popularity slides

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NZ PM Jacinda Ardern’s popularity has slid from 51% at the time of the Christchurch terror attack to 41% today according to a TVNZ Colmar Brunton poll. The National Party remains more popular than Ardern’s Labour Party. Ardern remains preferred PM. Her counterpart across the ditch, PM Scott Morrison is now polling at 51%, up 5 points.

Lisa Wilkinson, perhaps Jacinda ought to be getting some tips from ScoMo? Afterall 570,000 Kiwis living in Australia is a far cry from the 39,000 Aussies living in NZ. Perhaps they know something? By the Wellness Budget is less generous per capita than Australia.

 

Actions have repercussions. Good

Good. An Extinction Rebellion (XR) protestor copped a $61,000 fine for blocking a coal train for 5 hours by cementing her arm to a 500kg barrel laid on the tracks. Her stunt likely cost the company multiples of this.

Protesting is one thing. Inconveniencing businesses and everyday people is an entirely different issue. Trespassing is breaking the law. Good to see her pay the penalty. These XR people behave if they are a law unto themselves. They should know they’re not.

Animal Rebellion – why you should eat steak tonight

The loony left has really lost the plot. Now it’s the Animal Rebellion (AR) which is really just an activist group spin off of the Extinction Rebellion (XR) for vegans. At states,:

We believe in a world where all individuals of all species can flourish, free from exploitation and the worst threats of the climate emergency, where we work consciously to ensure no being is seen as a commodity. As such, we believe we need a political system rooted in collective decision-making made with and alongside our multispecies kin, where creativity and compassion are prioritized, and where the diversity of gifts among all species are recognized and celebrated.”

There we have it. Just like XR it is all about central control and no doubt self selected “collective decision making.” Without question the lunatics that AR and XR want to appoint to these councils don’t believe in democracy or anything other than exerting their will on others.

AR state openly it wishes to

In partnership with Extinction Rebellion, Animal Rebellion will mobilise 10,000 animal advocates for a two-week Rebellion in London, beginning October 7th...”

Then the truth really comes comes out:

Government must tell the truth by declaring a climate and ecological emergency, working with other institutions to communicate the urgency for change.” Animal Rebellion understands this demand will not be met unless telling the truth includes the government declaring that the industries of animal farming and fishing are leading contributors to climate breakdown and ecosystem collapse, and communicating the urgent need to transition to a sustainable and just plant-based food system, alongside other key issues.

Government must act now to halt biodiversity loss and reduce greenhouse gas emissions to net zero by 2025. Animal Rebellion understands this demand will not be met unless government action includes ending the industries of animal farming and fishing and leading a transition to a sustainable and just plant-based food system, alongside other important measures.

Government must create and be led by the decisions of a Citizens’ Assembly on climate and ecological justice.Animal Rebellion understands this demand will not be met unless the Citizens Assembly has the mandate to discuss and power to legislate for the transition to a sustainable and just plant-based food system alongside other key topics.

So never mind the tens of thousands of farmers, fishers and restaurants that will be put out of business if these fools ever got their way.

The sad thing is they truly believe in this rubbish as if it is normal.

CM implores all readers to have a steak dinner tonight and tell these ARseholes that their veganism is a choice for them.

These cultural Marxists need to learn about democracy. If they want these changes then an election is the best way to achieve it.

Economic growth is an unnecessary evil, Jacinda Ardern is right to deprioritise it

This was the headline of an article CM spotted today. Of course CM wouldn’t dream of writing something that daft. To think social wellness can be achieved, let alone sustained without attention to economic growth. Magic pixie dust perhaps? Even though CM debunked the relative aspects of the Wellness Budget being considerably inferior to Australia, the left were quick to lavish praise on the the new matriarch of the woke. She is like the Obama of the Southern Hemisphere. Even regressives are progressive in the eyes of the left.

Note the NZ budget forecasts a 25% lift in tax revenues out to 2023. Income tax will rise 29.9% over the same period. Indirect taxes will jump 28.3%. That on a slowing economy and a rising unemployment rate will mean incremental taxes sting at the margin. Their data, not CMs.

Of course if the idea is to de-prioritize the economy, it can only mean that taxes as a % of GDP rise. Indeed they do from 30.6% this year to 31.1% by 2023. Compare that to 25.2% falling to 25.0% in Australia over the same period.

Effectively Australia gets way more bang for the buck on providing wellness initiatives with lower burdens on the taxpayer because that’s what happens when the economy IS prioritized. Spending on social wellbeing rises as the economy expands.

If unemployment rises (as forecast by the NZ budget) over coming years, one can imagine that wellbeing by its strictest definition should fall. One loses a job, household income falls and wellbeing declines with it, unless welfare is on a par.

Presumably if Ardern’s deprioritized economic growth leads to worse economic outcomes, she can be guaranteed that wellbeing won’t be sustainable without more shared misery in terms of debt (rising) and deficits.

As Friedrich von Hayek once said, “if socialists understood economics they wouldn’t be socialists.”

Such is the madness of the left that they believe yet again that feelings are more important than facts. Even though as “woke” as many paint Ardern, her neighbour across the ditch is already there and expected to continue to outperform. That’s because economic growth is the priority. Yet don’t expect Scott Morrison to receive any praise. He is the wrong gender, skin colour and religious affiliation for starters.

Ardern is unlikely to stop the 35,000 odd Kiwis that migrated to Australia last year but she maybe lucky in doubling the 40 (yes, forty) Aussies who left the land down under to live in NZ in 2018.