Archive for the ‘Soviet Style Economics’ Category

1.To the Post Below:

September 13, 2006

A number of economic bills are before the Houses of Federal Parliament, mind, there’s nothing novel in the fondness of even Liberal Politicians for Socialist Central Economic Planning and Control.  I’d attempted to paste some of the crucial articles and terms of the bills, Trade Practices bill and cognate bills and Petroleum Retail Repeal Bill. An orwellian sounding Oil Code is to be introduced later.

The Petrlm. Repeal Bill is due, to the Act to be repealed is useless due to the entry of supermarket chains into petrol retailing .

The crutches of such economic measures are, the subject of posts 2. and 3. :

2. Perfect Competition

3. “Trust busting”.

Oil is not ” running out “. Production will rise, Prices will fall: Don’t worry about your petrol guzzler, it’s o.k.

September 6, 2006

Politicians are prone to pretending a crisis exists, as an excuse for interventionism, raising taxes again, price controls, subsidies to loss makers and generally to show how much they are” saving the little people from…” well, what? The bogeyman?  As I wrote, a major oil discovery, which is no new discovery, has been discovered by politicians and dah media, after the fact.

Castro was about to make himself even richer than he already is, a mega-billionaire, by drilling and selling oil form the Gulf of Mexico. In short, it had been demonstrated some time ago the Gulf held below oceans of oil. As I wrote, the Whitehouse would not stand by and let that mass murdering bastard make profit  when, Westerners can cut him right out of it. Presto, today the headlines screamed, major oil reserves discovered in the Gulf of Mexico.

Through it all, the Greens in America, Britain and Australia have been oddly silent. Why they been slient is simple.  The original paymaster of the ‘Greens’ was the KGB.

As long as it was Fidel Castro and his gang of commie murderers who were about to launch the new oil fields, that was o.k. It will come as no surprise that, now the Greens will vent their spleen against putting the field into production. After all:mass murdering communists, and Islamo nazis, good; U.S., Australian and U.K. oil companies that will be developing the fields, and evil, capitalisto marketeer consumer Westerners, bad. 

The greens will, of course, emphasise,Western investors and consumers are nasty rapists, violating that evil bitch Mudder nature. The left dominated media will remain, as it has been all along, silent on the lie that follows from:

The greens don’t mind one jot Castro getting his hands on the fields, if he can get away with it.

Well, he won’t get away with it. This will hit not only Fidel but  his brother Raul; they will weep for years on end. So will their pals, the Greens, ABC, SBS, The Age aka the Spencer Street Soviet, the Bracks Junta… and so will the  Federal Politicians in  Canberra, wringing their hands and crying, ” What shall we do?Australia.

Both the major parties, ALP, and Lib-Nats Coalition, have abused what one has considered right from the beginning was a trivial matter, the current ‘oil crisis’. Chipping in are the Dems and Pol Pot’s fan club the Greens. Why the Liberals is simple enough. The cult of Mudder Nature, the ethanol scam and, now, the latest excuse to impose more burdens, fully supported by the even worse usurious socialist idiots of the other parties, subsidising of conversion of cars to gas fuelling of engines, at $2,000 to each who accepts this act of extortion and corruption. Swindlers, liars, thieves, politicians are recidivists.

I’m not dismissing at all the burden of the run of high fuel prices but, it has to be kept in perspective: it is the market functioning; and, it is short lived. The Federal Cabinet could have lightened considerably, however, the height of fuel prices in Australia. It could have done so by eliminating the fraud of the ‘parity pricing tax’ and the at the pump road tax, imposed by Hawke and Keating, using the excuse it would be used to build roads ( it was rubbish then, and it remains so, since all taxes just go into the one consolidated revenue ).

Fuel could sell at far lower prices if it were not for venal, craven, lying socialist thugs called politicians. As it is, before today’s announcement the barrel price and retail fuel prices have been falling. The retail prices have fallen 10 cents to 12 cents the litre of petrol during the last three weeks. Today’s announcement will see the prices driven down in oil as the futures markets lad in the recalculations of reserves, to be swiftly followed by large percentage drops in in final consumption price.

Let’s be clear about this, the current “oil crisis” is, or should be, at an end. This is, unfortunately, only a speculative type assumption, because it ignores the whole pack of jackals called politicians, who, addicted to imposing Leviathan, might find the reality not to their liking. After all, they are relying on the lie that there is a crisis, for that is how they and bureaucrats get wealthy, by stealing from tax real taxpayers using fairy-tales to justify their larceny.

Today’s announcment is still a drop in the large oceans of oil not discovered, as opoosed to those which exist.  Reserves of oil the editors has to reiterate, because polticians are so dense, are only that wehich has been economically developed to date. To illustrate, I repeat, from a converstation form someone on the inside:

The truth is, the reserves in the Middle East are underestimated by a large factor.

Spot the point: The gentleman was conveying to me the reserves in the Middle East, not new discovered fields, and stated, the estimates are false, they lie by a major factor below what is emerging to be the case. Readers will now have spotted another amusing point.

The notion of ‘pique oil’, which applies only to fields in production. The Middle East fields have been asserted to be a textbook demonstration of what many assert to be theory, and not even merely an hypothesis, ‘peak oil’. Not merely a demonstration of that claim but, those fields were, supposedly, the first demonstration of it. Well, it turns out, far from ‘peaking’, those fields are still producing oil in economically low cost to extract volumes. Will they peak is a Brechtoltian question,” Waiting for Godot”: it is a good question for fools and spivs but not rational, civilised men and women; it is apt Brecht fathomed that play, for he was a nasty biit of commie work.

Two lines intersect:

Oil, on economic grounds:

Gerard Jackson has explained again and again why oil will not run out. For reasons indicated above, one suspects the reason the sound case he has put is ignonred is, it does not suit the national socialist aims of apparatchiks and politicans of both major parties and bureaucrats – they prefer voodoo, magic, supersitition, and lies to the truth. They “can’t handle the truth”, because truths shows them up to be damned liars, craven, venal, usurers, and socialist thugs.

Jackson’s latest is, ” Why the world  won’t run out of oil “. As also, here, against Katelsky.

This should also give the greenies, and they include their converts, for no motive more than venal gain, the Liberal National Socialist spivs, Federal and lesser, as Brookesnews regular, Humberto Fontavo, the gutsy enemy to the mass butcher brothers the Castros, explains.

The second argument is from physics. The Gas Resources Corporation explains why oil is produced cehmically, deep below the mantle in abundance, and is not a ‘fossil fuel’. Indeed, the G.R.C. only illminates what, when carefully considered, stands as nothing less than dum beleif in magic, oil is a product of fossils.

Bye the bye, there is an outstanding challenge to fossil generated oil boosters with a modest cash prize attached, which prize they can claim, if they can demonstrate it from science, and not from flim flam.

The G.R.C. also supplies other material, inclusve of economics, which sets out why oil prices are on a long term downward slope ( if one assumes idiot, socialist thugs called politicians don’t exist ).

Physics and economics intersect and so it should. Economic action is physics manifest. Man is physics made manifest, economics is human action.[ This does not constitute a tautology; for one  imagines readily some leftist or dumbed down type resorting to this,  by quotation, to take a stab at moi – I’ll turn the tables in anticipation and ask them to explain why it is not a tautology-  Grobscorp, Quiggin, Colebatch and et al will be confused and so will be, ufortunately, Costello, McRann, Woods, Kroger, Ted the Wimp Baillieu and et al – forget Bracks, he is a moron such that he doesn’t cut it as village idiot claibre along with so many of his Cabinet (1).]

I have a view to revealing the name of the Bracks Cabinet Minister of whom a Permanent Secretary disclosed within my hearing  has the IQ of a dolphin. Now, many believe dolphins are bright. No, they are not, a goldfish has a more intricate brain, which is like comparing  cows to slugs and slugs are faster on the uptake than cows. The Ministah does like sporting against his equals, slugs.

Readers, apologies for light  postings but, I have been researching a number of things , to be posted. A number of them need further investigation. I can’t disclose anything yet but, when ready, you will have the truth laid bare. for the cynical, no I am not alluding to the KKR, on which, in any case, I have more juice in stpre.

Expansion on a point per Illustration

August 29, 2006

“Regulation is a number of things: It is a tax. It compels firms to cash in capital to comply. It cripples the capacity of entrepreneurs to run firms to markets.” From, the item below “ Central Planning : Soviet Style GozPlan Telephone Set – string attached to tin can“.

A case illustration. I refer, again, to the case of a light processing firm. To recapitulate, it is the firm which washes and packages into cellophane bags salads for sale in supermarket chains. It is in N.S.W.

Each year the firm has to expend $500,000 on meeting alone O.H.&S. complaince renewal, without which the goon squad of the N.S.W. govt. will shut it down. The $500,000 per annum expenditure on compliance renewal does not, of course, per product unit cost of applying OH&S in actual production.

For the firm to increase scale, in order to increase volume of output, the firm would by force of Govt. diktat in O.H. & S., have to incur higher annual renewal costs and then higher production costs. This would entail the firm would shift from profitable to loss making.

The upshot is, the owners, while they would like to increase scale, they won’t increase capital. Another upshot is, as the owners declared increasing capital, would increase the number of full time employees required. Needless to say, those potential jobs won’t be opened.

 Further, there are no economic profits to induce scaling up. No free enterprise can extort or force consumers to pay higher prices. Next, the frim cannot reduce prices further to increase demand because of the imposed cost burdens, of which O. H. and S. is but one.

The case, because of its simplicity, makes plain the point, regulation constricts production, it sacks capital, it cripples markets, it ensures shortages. It cripples the capacity of entrepenuers to work capital, and to accumulate capital. Indeed, as this case makes plain, it pays entrpeneurs  halt expansion up to a level internal for that firm which would see the burden of regulation compounded for that firm.

Peter Costello, and fellow KKR Puppet Master to Michael Kroger, believes ‘regualtion’ is the Rule of Law. Not it is not, it is the rule of dictators and their goon squads. regulation serves nothing at all but the desire of politicians and bureaucrats to enslave many to the yoke of National socialist tyranny, or, in realty, to themselves the real beneficiaries of ‘regulation’. Regulation serves neither firms, investors, employees, consumers. Adds not one jot to successful production. To the contrary, it imposes losses on those victims of venal, craven, power hungry, empire building socialist spivs called politicians and bureaucrats. That is all. 

Regulation wreaks economic carnage, and it is a lever for the overthrow of the Rule of Common Law in favour of the rule of thugs.