An excess supply of economic illiteracy

Economic illiteracy is a common fault among our political classes. Two stories off the front page of The Australian this morning. First this: NBN chief Bill Morrow asks who will by [sic] the $49bn debt. As if you have to ask:

Australians face a stark choice in how to pay for the $49 billion National Broadband Network — it will either be funded by consumers who use the network or ultimately by the taxpayer via subsidies and writedowns.

NBN chief executive Bill Morrow, writing today in The Australian, raises fundamental questions about how to pay for the federal government-owned network.

He says a “land grab’’ by retailers as they try to gain market share while the NBN is rolled out has driven down internet plan prices to a level that may not reflect the costs consumers are willing to pay in a rational market. “We need to ask whether this is a faulty commercial model where cost recovery isn’t possible or is it an over-heated retail market with a price-centric marketing strategy that needs to change?’’

It’s all Labor except that our economically challenged PM also didn’t get it when he might have done something useful when he was Minister of Communications. And to go with that we now have this: Regulation needed to keep lid on power bills: Victorian report.

A damning review of Victoria’s privatised energy market has called for the reintroduction of price regulation to drive down household power bills and put a ceiling on spiralling electricity costs.

The eight-month independent review found that, after 15 years, market deregulation had failed Victorians and led to significantly higher household power bills.

Left out is the small matter of the Hazelwood power station closure. It shouldn’t be that hard to understand the supply half of supply and demand, but apparently it is.

No missile defences for Australia says the PM

What sense is this?

Mr Turnbull rejected a push for Australia to install a missile defence shield to protect against an attack, saying he had received advice that it would not be helpful against North Korea’s long range missiles.

OK, so if the Norks find it too hard to attack Japan or Guam which do have missile defences however leaky they may be, Sydney seems pretty good as a place for them to show they really mean it. Does Malcolm never get anything important right? And then there’s this:

Opposition leader Bill Shorten said it was the “bellicose and provocative actions” of the North Korean dictatorship, and not Mr Trump’s rhetoric, which was of “big concern”.

“I and the government share the same concerns and the same views, and Australians should be reassured that on this matter of North Korea and our national security, the politics of Labor and Liberal are working absolutely together,” the Opposition Leader said.

“What we all need to do is be concentrating on encouraging North Korea to de-escalate. I think there is an important role for China to play here and of course we rely upon leadership from the United States. There are other nations which are much more affected than Australia, including of course the Republic of Korea and Japan, and neighbouring nations to North Korea.”

Good sense for a change. If they came up with a credible policy on stopping the boats, how much difference would it make who took over after the next election?

AND FURTHERMORE: This is a further follow-up at The Oz and these are the top comments which do seem to follow a single theme, possibly because the article is titled, “North Korea crisis: Trump’s ‘fury’ leaves Beijing with few options”. It is via The WSJ.

If any country has been lacking leadership on this issue, it is China. They have been letting the rabid dog get bigger and more paranoid on its border, while blaming the US for this issue. Garbage. Beijing has never fully implemented sanctions, always kept its powder dry … but now reality is slapping Xu in the face. China, you can’t keep avoiding your responsibilities forever.

Joan 1 hour ago
The most frightening part about all this is Trump is not only trying to protect the world from NK, which has been allowed to build its arsenal by previous Governments who have appeased and looked the other way, but now instead of supporting him, the media are not prepared to offer any support. They need to decide if they support western democracy or not.

@Joan – Joan, I never thought I’d see the day when the US wouldn’t support their President in a time of grave danger. Despicable.

Karl 2 hours ago
What did Obama do to stop it? Obama did nothing and he therefore allowed for N/Korea to develop and expand their nuclear program. And now is somehow Trump’s fault? How?

@Karl Becuse Trump is right wing anglo saxon: of course it’s his fault.

Massive China could have dealt with puny North Korea years ago if it wanted to. It doesn’t want to – simple as that. It is enjoying seeing the USA squirm while it expands its territorial ambitions in what is euphemistically called the “South China Sea”.

I find some solace in the fact that China finds itself in a difficult, uncomfortable position. This is all of their own making and I am pretty sure it is going to get a whole lot more uncomfortable for them as Trump ratchets up the pressure.

The Chinese Communist Party (CCP) uses North Korea as a stalking horse and plays a perfidious role.

China is 100% responsible for this situation, maybe Trump will force them to take this seriously.

Until China provides proof that they are trying to curb the sabre-rattling of tyrant Kim instead of secretly egging him on to provoke the USA, we cannot trust China in this mixed international chess game. Come on China – show us that you are truly follow your creed of “harmony”. We know you have the means to put little Kim back in his box.

50+ years of diplomacy with NK did not achieve much. They are now more dangerous then ever and if we are to believe intelligence they have the capacity (or soon) to launch nuclear attacks. The last two countries/leaders who threatened the West were Saddam Hussein/Iraq and Muammar Gaddafi/Libya. Both leaders are now dead and their countries are in chaos. The same will happen to North Korea IF they continue their path of madness. It’s interesting how our media (especially the ABC again) seems to think that Trump is the real problem, not Kim Jong-Un. Have they really not learned anything from the disaster Obama?

For a decade China did next to nothing to curb North Korea, possibly enjoying Obama’s impotence while progressing their illegal annexation of the South China Sea. Now the unintended consequences of their short term policies have come home to roost. What good will more talking do given that the diplomatic process has resulted in North Korea successfully developing the nuclear and missile technology it aspired to? That particular horse has bolted. They say that violence is the last resort of the incompetent. It therefore necessarily follows that incompetence is the province of diplomats. History is replete with examples of the fact that sanctions do not work. Prime examples of failed sanctions are the League of Nations imposing sanctions against Italy to make it pull out of Abyssinia and the US imposed sanctions on Japan following the invasion of China. North Korea joins those two in the list of epic failures. All I can say is that now maybe China WILL do something. Otherwise they are thinking too much of status money and getting as much as they can from the world and other countries.

China had played just as much a role in the predicament we’re in today, as have the other world leaders. If they had done what they were supposed to do for all these years, we wouldn’t be in this mess now.

Hey China you hold all the cards with regard to North Korea and you have done nothing, you and you alone can bring down Kim and the world knows it, so stop this little old me crap and fix it, Trump has every right to say enough is enough, as North Korea has been pulling this stunt for to long and the US patience has run out

Where did the technology and expertise come from? Stonewalling is a cultural characteristic of the Chinese and Trump is bypassing it.

Trump has changed the game by not being seen as a patsy. China now sees North Korea as a risk to its influence in the area, so is motivated to manage Kim better, but struggling to do it. All strategies have risks, but a risk averse short term strategy can lead to the highest risk outcome. Trump recognises that, and seems to be playing the threatening Bad Guy whilst Tillerson works the Good Guy in the background. Seems a lot smarter to me than the Obama appeasement and let them build their bombs strategy.

China has always supported the NK administration. There is no wsy they could have obtained nuclear missile capability without the chinese. The wall street journal is disingenous to report chinese concerns about trump rhetoric when they know he does not want war. It is also trite to say vhina is more concerned about domestic issues when they have been purposely tramping on international law in the south china sea. North korea is merely following the chinese disdain for the international community.

Seems to me that China should have taken more seriously the threat by North Korea many years ago. They had the trade and diplomatic ties to have averted Kim from this course of action but appear to have done little. Perhaps they thought that the US would continue to be led by weak apologists like Obama and the Clintons. Now China faces the prospect of a radioactive cloud after North Korea is vaporised, or more likely, a long-term US presence on its doorstep.

I’m going to have to find a better class of fish wrap

There I was wrapping the fish when this column by Greg Sheridan caught my eye: All credit to Turnbull for trying to seal deal with a troubled Trump. I gave you my view a couple of days ago but this is surreal. So let me take you to the end of the DT-MT transcript:

MT: You can certainly say that it was not a deal that you would have done, but you are going to stick with it.

DT: I have no choice to say that about it. Malcolm, I am going to say that I have no choice but to honour my predecessor’s deal. I think it is a horrible deal, a disgusting deal that I would have never made. It is an embarrassment to the United States of America and you can say it just the way I said it. I will say it just that way. As far as I am concerned that is enough Malcolm. I have had it. I have been making these calls all day and this is the most unpleasant call all day. Putin was a pleasant call. This is ridiculous.

So what does Sheridan say about the significance of this first-ever phone call between the PM and the new president:

A sensible prime minister goes into a conversation with a US president with two objectives in mind: to build a relationship and to secure one or more specific outcomes.

The fact of the matter is that the Australian-American alliance is crucial to both countries. But if you think MT came away with anything other than the most comprehensive disdain from PDT you are as out of the picture as Greg Sheridan himself seems to be.

Australia’s infrastructure “woes” as seen from Canada

From the front page of today’s Globe and Mail: Infrastructure bank seeks to avoid woes of Australian peer.

Politics is a clear dividing line in Australia when it comes to infrastructure. Since 2013, Australia has been led by the Liberal Party of Australia, which is more conservative than the left-leaning Australian Labor Party, the country’s other main political party. Australia is divided into six states and two territories.

The Australian Liberal government brought in an incentive program in 2014 called asset recycling that provided a financial reward to state governments that privatized assets. State reaction to the incentive largely broke down along partisan lines, with likeminded New South Wales praising the program as the “secret sauce” of success, while some Labor-led states declined to participate. Australia cancelled the program in 2016. . . .

John Quiggin, an economics professor at the University of Queensland, said other privately financed projects such as a $4.8billion toll road tunnel to the Brisbane airport, led to “disastrous losses for investors” as the original consortium went into receivership. He said it would appear from Mr. Sohi’s Sydney itinerary that he would have received a one-sided view of Australia’s experience. Prof. Quiggin said there have been several recent examples of Australian governments moving in the opposite direction, expanding public ownership in areas such as power generation.

“Looking at the itinerary, the minister will have spoken almost exclusively to advocates of private infrastructure, who will have told a rosy tale,” he wrote in an e-mail. “The fact is that these guys have lost the debate, as witnessed by the sudden surge of new public enterprises.”

Jeff Kennett, a former Liberal premier of the state of Victoria who approved his state’s first private toll road in the 1990s, has said those types of deals don’t make sense for governments with healthy finances. The toll highway, known as CityLink, opened in 1999 at a cost of $1.8-billion. Australian newspaper The Age estimated that the private owner, Transurban, is on pace to collect more than $20-billion in revenue by 2034.

Beats me what the point is but was nice to see all the usual gang on the front page of the local paper.

Draining the sewer

This is such a frightening story and what may be the most frightening part is that almost no one is going to be frightened by it. From The New York Post. Remember the repulsive story about Trump in Russia that was supposedly “leaked” by a British agent? Turns out the entire story was concocted by a Democrat Party research firm but partly funded by the FBI.

The FBI received a copy of the Democrat-funded dossier in August, during the heat of the campaign, and is said to have contracted in October to pay Steele $50,000 to help corroborate the dirt on Trump — a relationship that “raises substantial questions about the independence” of the bureau in investigating Trump, warned Senate Judiciary Chairman Chuck Grassley, R-Iowa.

“Raises substantial questions” is so understating the issue that you can see the fear about the nature of American governance if it is true, and there is every reason to believe it is. Everything you think about our way of life and our political leaders and our personal freedoms would have to be re-written from the ground up. Draining the sewer becomes more formidable every day.

Malcolm is too dumb to understand what Newman is saying

I am going to provide my own title for the story rather than use the headline from the subbie at The Oz who seems to have tried to obscure the point: Government projects chosen by dull-witted politicians like Malcolm Turnbull make us worse off. And I will quote a bit more than usual to help those who cannot link. And in my view Newman lets these incompetent bozos off the hook for their massive economic ignorance. We already understand how incompetent they are in political calculation, so the question remains what are they actually good at?

Political conceit, ineptitude and reckless indifference to proper process now leave Australians with an inflexible, hugely expensive communications system, little better than the one it replaced. So much for bringing our communications into the 21st century.

But not even this first-hand experience nor his publicly expressed mega-project misgivings, have dampened the Prime Minister’s enthusiasm. Indeed, with $75bn over 10 years and a new Infrastructure and Project Financing Agency to be established within his portfolio, it’s full speed ahead. Take the “Snowy 2.0” pumped hydro storage facility. There are no costings but a rough estimate puts the capital cost at about $2bn. However, when necessary upgrades to poles and wires are included, the cost rises to at least $4bn. The ultimate bill to consumers is unknown, but experts say pumped storage hydro consumes about 20 per cent more energy than is returned to the system and would take almost 15 per cent of NSW baseload production in the process.

Whatever the merits of pumped hydro storage, with five to six years to completion this project will do nothing to alleviate Australia’s immediate energy crisis and seems guided more by green politics than economics.

Another budget infrastructure decision with an eye to politics is the $8.4bn equity investment in a high-capacity inland freight link between Melbourne and Brisbane. Even though there is private sector interest in majority funding an alternative proposal, the government seems intent on discouraging, if not ignoring, it. . . .

Of course, the country needs to build and maintain vital infrastructure. But the process is flawed and invariably opaque. There are no business cases. Voters are sweet-talked into believing any infrastructure debt is “good debt”.

Is there a conclusion? There is. Give Malcolm the flick while there’s still time and bring Tony Abbott back.

Violent thugs attack speaker at Art of the Impossible book launch

This is taken up from Catallaxy: Violence at Kates’ book launch of my The Art of the Impossible which you can order here. This is how the story was conveyed.

I’ve heard reports of actual fisticuffs at Steve Kates’ book launch. Andrew Bolt was attacked by left-wing thugs. Word is that Andrew fought off his attackers, and has it on tape – expect to see an awesome Bolt Report tonight.

Update: From Andrew’s blog

… masked Left-wing protesters attack me outside a Melbourne book launch. Police are now looking for a Left-wing fascist with a big bruise on his face and another between his legs. They also want to speak to a tubbier protester once he’s stopped running. We’ll show the video tonight.

STEVE NOW ADDS: You hear that Andrew has been attacked and you fear only the worst but while this time they went off worse for wear, it is a true worry that this is our world now. We are people for whom words, argument and reason are what counts, but for the psychopaths on the other side they have nothing to offer but vacuous cliches and violence.

The afternoon, in spite of its start, was fascinating and I enjoyed hearing Andrew’s views on Trump and the massive problems we face. We are in a war, but it is our own modern Thirty Years War which no one today can be certain of its outcome. As for my book, we sold out every copy. But let me just mention this which is a comment from the earlier post advertising the launch:

It’s everything you say it is. I enjoyed it immensely. Good luck with the launch.

So thank you to Mique who has become the first person to have actually read and then comment on the book.

Every day provides an additional example on why we are fortunate Trump is president and how bad things could get without him.

Malcolm Merkel and his band of fools

“Immigration Minister Peter Dutton confirmed that ‘close to 30 people’ seeking entry through the one-off settlement of 12,000 Syrian refugees had been disqualified on security grounds.”

The Weekend Australian June 2

That’s one quarter of one percent. With this kind of vetting, we might as well have open borders. Anyway, the text below is from Diana West: Playing Beheadings for Laughs. Reality might only affect one percent of the population directly, at the moment, even as everyone now huddles as clear of the line of fire as possible. This is what we are dealing with, the judge being the villain of the story. Today Mark Zuckerberg plays the judge and there are fools just like him on twitter and across the whole of the media. It seems the Australian government is just as stupid. Is the potential for disaster really all that invisible? Anyway, this is from Diana.

I remember a famous exchange Milosevic had with his judge. It was 2002, and, still, the closest Western consciousness came to beheading lay somewhere between the history of the French Revolution two centuries ago, and the absurdity of Lewis Carroll’s Red Queen.

Milosevic was trying to show what jihad looked like, which, in his war, was a beheaded Serbian soldier.

MILOSEVIC: These are crimes from the 26th of March, 1992, in Sijekovac.

The units (Mujahedin) crossed the Sava River and slaughtered the Serbs. Please put the big picture on the overhead projector.

That’s it. That’s what they did. That’s what the Mujahedin did, the ones we saw yesterday. And we saw Izetbegovic (leader of the Bosnian Moslems) reviewing them yesterday.

What’s the matter? Is it not on the screens?

JUDGE MAY: It’s on the screen. Do you want the next photograph shown?

MILOSEVIC: But I haven’t seen it on the screen. I only see you on the screen.

JUDGE MAY: It’s on our screen. Make sure you’ve got the right button.

MILOSEVIC: All right. All right. You don’t want to show this. You don’t want to show this to the public.

JUDGE MAY: Mr. Milosevic, it is on our screen.

MILOSEVIC: It’s not on the screens that the public sees. Right. I see it on this screen now. But this internal screen only. So he is holding a head, the head of a Serb that he cut off. So those are the 20.000 Mujahedin that were brought to the European theatre of war through Clinton’s policy, and most of them remained there and some went to America and to other countries, and they went all around Europe. And then when they start beheading your own people in wars to come, then you will know what this is all about. …

Sometime later, I saw a photograph of a beheaded Serbian man online, maybe the same one Milosevic was trying to show the public. I had never seen anything more shocking, viscerally, in my life: a human head, eyes closed, in the hands of a monster in human form. At the same time, there was nothing more visecerally shocking than our own Daniel Pearl, also beheaded by Muslim “fighters” — or Nicholas Berg, with his slaughterhouse cries. Or Theo van Gogh, very nearly beheaded in Islamic ritual fashion on the streets of Amsterdam, although they tried not to let us know that; and more, in the continuing wars with Islam.

Certainly, our leaders still don’t know what this is all about. Beheading, however, is no longer the unthinkable act it used to be. It has now entered our cultural mainstream, courtesy something called Kathy Griffin, whose “comedy,” I am so happily out of it to say, I had not seen until today when her own Hollywood riff on the mujahudin who slaughtered the Serbs fifteen years ago, and Pearl, Berg, van Gogh and the murdered and violated rest, brought her to public eye holding aloft an extremely bloody representation of the head of President Trump. She thinks she has created something of value, a message, a moment, a point.

Her own sickness of spirit, though, is beside the point. I am afraid she has felt the pulse of the nation, circa 2017, and correctly judged Islamic ritual slaughter, once almost literally unthinkable in the West, to have become just another punch line.

Some people get it but most do not, partly because the truth is rabidly suppressed. The picture and quote from the Polish PM at the top is from here: Polish Prime Minister Warns Europe To “Get Off Its Knees” And Fight Islamist Threat. The indifference of the left to the suffering of others is possibly their most despicable trait.

We need to better understand how to defend our own

This is in re Roger Franklin. I begin with this modern parable for our times:

Republican body slams reporter. This is how it begins.

The Republican candidate for Montana’s congressional seat slammed a Guardian reporter to the floor on the eve of the state’s special election, breaking his glasses and shouting, “Get the hell out of here.”

This is how it continues:

A statement by campaign spokesman Shane Scanlon blamed Jacobs for the altercation, saying that he “entered the office without permission, aggressively shoved a recorder in Greg’s face, and began asking badgering questions”.

“Jacobs was asked to leave,” the statement reads. “After asking Jacobs to lower the recorder, Jacobs declined. Greg then attempted to grab the phone that was pushed in his face. Jacobs grabbed Greg’s wrist, and spun away from Greg, pushing them both to the ground.

“It’s unfortunate that this aggressive behavior from a liberal journalist created this scene at our campaign volunteer BBQ.”

This is what happened next: Body-slamming a reporter just made Greg Gianforte a whole lot of money:

Montana Republican Greg Gianforte’s congressional campaign has raised $100,000 and counting in the hours since he allegedly “body-slammed” Guardian reporter Ben Jacobs.

And this is how it ended:

Republican businessman Greg Gianforte won Montana’s sole House district in a special election Thursday, keeping a seat in Republican hands despite facing assault charges for allegedly attacking a reporter who’d asked him about the GOP’s health-care bill.In his victory speech, Gianforte admitted to the attack and apologized for it. “I shouldn’t have treated that reporter that way,” he told supporters at his rally here.

And for a complete wrap-up of events, there is now this to be read in full, which adds this special feature that you cannot know from being so far away but is easily imaginable:

All presses were stopped, every other story swept aside for continuous coverage of the story in the hopes that it would bring about the Democratic victory they all so desperately wanted.

The media cannot be trusted to get a single political story right. They are of the left and so everything that is said or written by a journalist (with a handful of exceptions) must be read in that light. They will lie, hide and distort as a matter of course. So let me translate what Roger Franklin said the other day into plain English, not obscured by the satirical intent which the left is too obtuse to follow:

If a bomb had gone off during the taping of Q&A, no one at the ABC would say that such bombs are merely part of modern life and you are more likely to be killed by a falling refrigerator than a terrorist bomb.

No one on our side of the fence makes light of any of this. No one wants to see some teenage theologian blowing up anyone, not here, not there and not at the ABC. We are the ones who take all of this as a genuine problem. We are the ones who are disgusted by anyone else taking these things lightly. We are dealing with a deadly enemy who really will roll us over if they can. What part does the ABC play in defending our way of life? I know the part Quadrant plays. So far as the ABC goes, it is a cypher.

And let me finally say this. Anyone who thinks Quadrant has rolled over because they took down the post doesn’t understand a thing about the world in which we live. I have defended anonymous blogging against Mark Steyn who thinks everyone should do what they do under their own name. We have anonymous bloggers here and our comments are also anonymous, and for good reason. As is plain as day, there are dangers by the bushel-load for anyone on the right putting a hair out of line, and there are few enough ready to defend them. No one at the ABC has ever been fired for a thing they said, but to raise your head above the line for a conservative cause has become almost as dangerous as going to a pop concert filled with teenage girls.

Bad men need nothing more to compass their ends, than that good men should look on and do nothing

Let not any one pacify his conscience by the delusion that he can do no harm if he takes no part, and forms no opinion. Bad men need nothing more to compass their ends, than that good men should look on and do nothing.

John Stuart Mill (1867)

This is quite the opposite from “the best advice I can give is for good men and women to bite their tongues and to carry on”.

We live in the best civilisation the planet has yet been able to construct – more free, more prosperous, more tolerant than any that has ever before existed – yet we are very near to descending into a dark age none of us or our children or our children’s children will then ever live to see end of. Just this, going on right now, should scare you into some clear thinking about what is before us and what we need to do: BA BANK HOLIDAY CHAOS British Airways cancels ALL flights from Heathrow and Gatwick after systems go down across entire world causing havoc for British holidaymakers – but airline denies cyber attack. Nihilism is a genuine force in the world. This lovely life we have constructed has enemies as depraved and determined as any we have ever faced, some outside the wall and some within, who would see our way of life obliterated. And make no mistake, they will do it if they can. And they can and will if we let them. And unless we become determined to fight them at every turn, we will lose.

In the world we are in there is one big issue, so large the others near enough do not count.

Donald Trump is our last line of defense. Tony Abbott was on the same path but without the strength of purpose. The Coalition is now led by its own version of Tanya Pliberseck. An inane incompetent fool without a single feature worthy of respect. He is now being pushed against his will to do what needs to be done by others who see what needs to be done. Peter Dutton is emerging from the pack as our own man of vision and character. Our own domestic political miracle, like Trump’s win in the US, was that the Coalition did not lose the last election. We, too, will have one more try.

And it’s true, it’s not anger we need but a clear-headed resolve. We need this to be just the start: Dutton says ‘best outcome’ for Australians fighting in Syria is to get ‘killed over there’ and he didn’t mean our soldiers. I am happy to welcome Janet onto this side of the fight. This was the pull quote in The Australian:

Trump offered up the kind of moral clarity that drove the West to defeat Nazis and Soviet communists.

Trump has offered moral clarity and much else. He offers a will to resist and the means to fight back. We will not get a second chance.