Black Economy Taskforce – invitation for public comment

You have 4 weeks.  That’s right.  4 weeks to submit your comments, which will likely be ignored, to the Black Economy Taskforce.

Don’t be fooled by the scary name “Black Economy”.  This is about getting rid of cash and forcing people to be completely and entirely beholden to the government and banks.

Remember the words of Ronald Reagan:

The Founding Fathers knew a government can’t control the economy without controlling people. And they knew when a government sets out to do that, it must use force and coercion to achieve its purpose. So we have come to a time for choosing.

Read also the contribution of Simon Black in Zero Hedge writing about Nobel Prize Winner (Joseph Stiglitz) Tells Davos’ Elite, US Should “Get Rid Of Currency”.

Posted in Uncategorized | 10 Comments

President Obama

On the eve of the swearing in of the 45th President of the USA, Donald J. Trump (what does the J. stand for?), Ilya Shapiro wrote an excellent article in the Federalist:

Top 10 Ways Obama Violated The Constitution During His Presidency

This is all a world away from candidate Obama, who said this on the campaign trail in 2008: “The biggest problems that we’re facing right now have to do with George Bush trying to bring more and more power into the executive branch and not go through Congress at all. And that’s what I intend to reverse when I’m president.” As George Mason law professor David Bernstein quipped, foolish voters thought that Obama was taking issue with the imperial presidency, when really he was only complaining that the wrong man occupied the throne.

Shapiro also notes that:

If you live by executive action, you die by executive action—whether that means reversing President Obama’s policies or pocketing his constitutional excesses for future use.

Apparently, the Obama administration has been in overdrive writing rules and letters to try to retain as much of President Obama’s “legacy”.

This is what happens when you try to govern by fiat rather than legislation; the next guy and remove and replace just as easily.

Posted in Uncategorized | 1 Comment

Anti Competitive Behaviour

Published in Business Insider today, Federal Labor MP and Shadow Assistant Treasurer, Shadow Minister for Competition & Productivity, Shadow Minister for Trade in Services and Shadow Minister for Charities and Not-for-Profits, the Hon. Andrew Leigh writes about Why the battle over hiring rival employees could be the next big challenge for Australian workplaces.

Dr Leigh, for a doctor he is, describes certain anti-competitive actions undertaken by businesses in the labour market.  He references the prior collusion in the United States between Apple, Google, Intel, Intuit and Pixar to note hire or poach each other’s workers.  Dr Leigh then asks, rightly, whether such activities occur in Australia.

Fair enough.  But then Dr Leigh proceeds to claim that non-compete provisions in employment agreement hurt workers.  Perhaps, but consistent with someone who probably has never worked in the private sector (and has never thus been party to a private employment contract) and someone who is a politician (and likes to selectively omit key facts), Dr Leigh writes:

These clauses prevent employees from working for a competitor, starting a competing firm or poaching their customers. They are legal and they are being used more and more frequently.

Dr Leigh conveniently omits to write that non-compete agreements are not perpetual and usually have a relatively short time horizon, frequently up to 3 months.  Non-complete agreements are also often, but not always, coupled with a period of paid “gardening leave”.

Interestingly, Dr Leigh does not indicate what a Labor government would do to address these “evil” non-compete provisions.  A thought bubble of sorts perhaps.  A Labor policy on this would be most interesting read though.  As someone who appears to be trained in both law and economics, it would be enlightening to hear Dr Leigh’s justification for further state intervention in the contents of a private and voluntary contractual agreement between 2 consenting parties.  It would also be very interesting to read a Labor policy on other anti-competitive practices, you know like in the construction sector.

Dr Leigh then makes the following statement:

Labor also believes there are other ways to make the Australian economy more competitive. We are committed to raising penalties for anti-competitive conduct, doubling the Australian Competition and Consumer Commission’s litigation budget and giving it a market studies function to delve deeply into overly concentrated industries.

Really.  That’s interesting.  Labor does not seem interested in the anti-competitive conduct of unions.  Funny that.

Oh.  And talk about delusional, Dr Leigh writes:

Indeed, the ban on non-compete clauses is one factor that spurred the growth of Silicon Valley.

I reckon sunlight and breathable air were factors also.  Not material or relevant factors, but factors.

Posted in Uncategorized | 10 Comments

David Leyonhjelm. Free speech is a lot more than 18C

Free speech is a lot more than the right to freely comment on issues of race – important though that is. There is other legislation that contains restrictions on speech just as oppressive and infantile as Section 18c of the Racial Discrimination Act.

If you “insult” a registrar in bankruptcy proceedings, you face six months imprisonment. The same applies if you “insult” someone officiating over your entitlement as a veteran, or your claim to copyright.

If you “insult” a member of the Fair Work Commission, you could end up in jail for a year. In fact, there is a long list of government bodies that you can’t “insult” without risking jail-time.

Whatever we might think about S18c, at least its penalty for insulting someone on the basis of race, colour, national or ethnic origin isn’t jail time.

Bans on insulting government bodies should go; only behaviour that disrupts, interrupts or threatens the bodies’ proceedings should be outlawed. Repealing S18c while retaining prohibitions on insulting government bodies, upon pain of imprisonment, suggests those bodies should have superior status to the people they serve.

We also need to consider the expanding range of secrecy laws in this country.

It is illegal for a journalist to endanger lives by knowingly blowing an undercover operation of our police or spy agencies, just to grab a headline. This is as it should be, but Australia’s secrecy laws go far beyond this. If journalists reveal corruption or incompetence in undercover operations, they could face up to ten years in jail. If they report information about police undercover operations that’s already public, they could still face jail-time. And it’s not just journalists who face these restrictions; if you mention to your neighbours that their house was searched by the cops while they were away, you can be jailed for two years.

Repealing S18c, while retaining heavy restrictions on reporting of police operations, suggests we don’t take police corruption and incompetence seriously.

Then there are the restrictions on free speech linked to terrorism. These can be counter-productive. For instance, encouraging terrorism or genocide, without actually inciting any terrorism or genocide, is punishable by up to seven years’ imprisonment. The problem is, this suppresses mouthing-off by dickheads as well as the reading aloud of hateful passages from the Koran or Old Testament. It would be better to allow this mouthing-off and preaching to occur, not just so the ideas can be rebutted, but so our security agencies can identify people who should be subject to surveillance.

Restrictions on free speech often attract little sympathy from mainstream society when they only affect a section of it. Consider adult fans of weird sex and sadomasochism. They can’t obtain or share material depicting their pastime because our censors ban this material on account of ‘community concerns about violent or demeaning depictions’. Even though these depictions need never leave the confines of a person’s home, they are banned because they ‘offend against the standards of morality, decency and propriety generally accepted by reasonable adults’.

If we oppose S18c because it restricts what we want to say and hear, but support censorship laws because they restrict what other people want to see, then we’re only protecting our own freedom.

Some restrictions on free speech are just plain silly. We have election ‘blackout’ laws based on the idea that a television or radio ad a week before Election Day won’t make you cast a silly vote, but a television or radio ad a day before the election might. Internet messages and texts sent to your mobile, on the other hand, won’t make you silly no matter when they occur.

We have excessive restrictions on using the word ‘Anzac’ too. It’s a good idea to ban private ownership of the word ‘Anzac’ in trademarks, registered designs and registered business names. But the law goes further, and bans anyone from using the word when naming things like their boat or their biscuits — unless a Minister gives permission.
In a debate about banning offensive speech, a government banning you from using the word ‘Anzac’ is perhaps the most offensive of all.

All restrictions on free speech in Australian law need to be challenged, wherever they occur. In a wide-ranging battle of ideas, the truth invariably comes out on top.

David Leyonhjelm is a Senator for the Liberal Democrats

Posted in Freedom of speech, Guest Post, Rafe | 7 Comments

David Leyonhjelm on the Australian of the Year awards

The Australian of the Year Awards cost taxpayers $4 million each year – which means every Australian chips in nearly 20 cents. I want my money back.

Ever since Tim Flannery got the gong in 2007, these Awards have become a Festival of Political Correctness.

Flannery was up against a worthy field of finalists that year, including medical professionals, philanthropists, educators and even Gabi Hollows. The stand-out candidates were the Western Australian scientists, Professor Barry Marshall and Robin Warren –two Nobel Laureates whose discovery of the cause of stomach ulcers has saved millions of people from suffering. Their independent thinking is an inspiration to everybody. However, they were not the political activists the panellists were looking for.

Despite having few qualifications in climate science, Flannery used his appointment to raise alarm about climate change and to tell us about the unbridled potential of geothermal energy and wave machines.

It wasn’t long before governments were throwing billions of our dollars at desalination plants and a range of other hare-brained schemes. It’s money we will never see again and our kids will be paying off for decades.

In many of the years since, the choice of Australian of the Year has not been the person most deserving, but the one who will deliver us a lecture about being a racist, wife beater or environmental vandal – if not all three.

Last year will be remembered as a particularly low point when David Morrison began issuing bizarre edicts seeking to prevent us from using the term “guys” to describe people of all sexes.

This year, the bookmakers have figured out that the Sudanese refugee turned lawyer, Deng Thiak Adut, is the most politically correct option and installed him as short-priced favourite.

In fact, Mr Adut has a great story to tell and demonstrated two qualities that will get you far in Australia: a liking for hard work and a willingness to assimilate, so I would not begrudge him this award.

But with most of us suffering from lecture fatigue, I can only hope that if he gets the award, he will refrain from calling Australians racist – particularly since, as he revealed in his autobiography, he would have been excluded from any meaningful education in Sudan because he comes from a tribe with darker skin.

It would also be nice if he recognised the great tolerance exhibited by most Australians – particularly those in the outer suburbs of our cities – who have seen some poorly adjusted refugees bring crime and dysfunction into their neighbourhoods.

But for whoever wins it, the Australian of the Year Award has lost its credibility. If we are to revive it, we first need to stop wasting so much money on it. We also need to turf-out the current decision makers and find a way to eliminate political correctness from the decision making process. If someone like Dame Edna, Angus Young or Rodney Rude was ever named Australian of the Year, at least we could look forward to their Australia Day acceptance performance.

David Leyonhjelm is a Senator for the Liberal Democrats

Posted in Guest Post, Rafe | 11 Comments

Translation to English

Here is an op-ed from the WSJ:

There is much to be said for a foreign policy equivalent of stare decisis. To say so isn’t to argue against all change: Every policy should be reviewed regularly and revised as circumstances warrant. Fresh opportunities arise, as do new threats. But wholesale, frequent reversals of foreign policy run the risk of unnerving friends and emboldening adversaries.

Sounds sensible. But …

A third mistake would be to immediately move the U.S. Embassy in Israel to Jerusalem from Tel Aviv. This might at first seem like a sensible proposal, even an obvious one. Jerusalem is the capital of Israel and where most government officials reside and work. But moving the embassy comes with real downsides, only some of which relate to the diplomacy—going nowhere slowly—intended to resolve the Israeli-Palestinian conflict.

So in basic English – we’ve been persecuting Jews for centuries and enabling terrorism for decades, why stop now?

All up, however, the argument doesn’t make sense to me given Mr Trump’s stated objectives.

The U.S. should be especially wary of sudden or sharp departures in what it undertakes abroad. Consistency and reliability are essential attributes for a great power. Allies who depend on Washington for their security need to know that this dependence is well placed. Serious doubt about America would inevitably give rise to a very different and much less orderly world.

There would be two reactions. First, “self-help” would increase, as countries take matters into their own hands in ways inconsistent with American interests—including by developing their own nuclear weapons. Second, many countries could fall under the sway of stronger regional states, undermining the balance of power. This is a prescription for instability.

What Mr Trump actually does in office remains to be seen – but my understanding of his platform is that he would like to see more American allies engaging in self-help and not relying on US military power for their own defence.

His objective is to make America great – not make the world safe. I think implicit in his slogan is the corollary “… and the devil take the hindmost”.

Posted in American politics, International | 6 Comments

Trams running on solar power: sure

 

When you next get on a Melbourne tram, you will be comforted to know that it is being powered by the sun.  Just don’t bother to look for the solar panels on the roof; let’s not forget that the trams are powered by electricity.

But in what must be one of the biggest political blundering bluffs used by any government, the Victorian government will throw $150 million at a solar power operator and try to get away with the lie that trams are now being run by the sun.

Andrews and his completely incompetent and out-of-her-depth energy minister, Lily D’Ambrosio (no doubt, elected because of her factional links, not her ability) are now really taking the piss.

And the worst thing is the Victorian opposition is so weak, that Guy and his mates are not even landing a glove on the socialists running the state.

Mind you, the $150 million bill won’t be sent to public transport users; no, that will be covered by the long suffering tax payer.

Expect more of this reverse auction stuff; it is just a fancy term for doling out many millions of dollars of taxpayer money to renewable energy rent-seekers and creating a veneer that the money is being used for worthy purposes; in this case sun run trams.

And bear in mind these subsidies are in addition to the ones the operator will receive from the RET through the certificates.

All this stuff makes Bernie Madoff look quite tame and he was at least only ripping off his own clients rather than taxpayers.

Victorian taxpayers to fund first ‘solar trams’

Victorian taxpayers will partially fund the building of a $150 million solar plant to be used to power Melbourne’s tram network.

Victorian taxpayers will partially fund a $150 million solar plant to power Melbourne’s tram network.

Victorian Energy Minister Lily D’Ambrosio yesterday doubled down on the government’s controversial renewable energy targets as she announced that a 75 megawatt solar plant would be built in regional Victoria.

She would not say how much the government would contribute to the project, which will be partially funded by the private sector.

She boasted a “world first” policy would see Melbourne’s entire tram network run on solar power, although she acknowledged this was “notional” and that the energy would flow into the broader system but the government would buy enough renewable certificates to cover the tram system’s needs.

“We will see that the biggest tram network in the world will soon be run by solar power, solar power plants built right here in Victoria,” Ms D’Ambrosio said. “There will be 410 solar trams running right through that network; this is a world first.”

“We will actually buy more than enough energy to power our entire tram network, so yes it is a notional process but effectively we are growing our renewable energy more than matching the needs of our tram network.”

The move is part of Victoria’s controversial renewables target of 40 per cent by 2025, climbing to net-zero emissions by the middle of the century. A tender to build the solar plants in regional Victoria will be run in the first half of the year, with construction to be completed by the end of 2018. The winning bidder will pay for part of the cost with the government to pay for the shortfall.

“The (government’s contribution) will be totally borne by the Victorian state budget, we are not going to be disclosing any figure now,” Ms D’Ambrosio said.

“We intend to get the best price possible for the taxpayer and that’s why we won’t be disclosing the amount of money the state government will be putting aside, but effectively we are putting aside money from the budget to be able to more than cover the cost of building these new solar plants.”

The Victorian renewables targets have been savaged as too ambitious by the federal government and are partially blamed for the closure of the Hazelwood brown coal plant, increasing household power bills by about 10 per cent. The government’s moratorium on gas exploration has also been blamed for increasing power ­prices. Ms D’Ambrosio yesterday pitched the solar plant on the heartland themes of jobs and lower power prices. Construction of the solar plant will create 300 regional Victorian jobs, with the government not set on a location, although it would probably be in the state’s northwest.

“The world is moving to clean energy, we made a commitment as a government, we continue to uphold that commitment to grow renewable energy,” she said.

“We’ve got renewable energy targets and we are very proud of them because we know that people want more renewable energy, we know that the more renewable energy that comes into the system will put downward pressure on electricity prices and create thousands of jobs.”

Opposition energy spokesman David Southwick said the announcement did nothing to lower electricity prices. “Victoria has lost 25 per cent of its electricity supply after Daniel Andrews whacked the industry with a $252m tax forcing the closure of Hazelwood.”

Posted in Uncategorized | 54 Comments

The inauguration timetable in Australia

The inauguration takes place in the early afternoon of the 20th of January in the US but will occur in Australia in the early hours of January 21st. Here is the Australian timetable if you want to tune in. Cannot say exactly where it will be broadcast since I am writing this from Denmark, but the following is taken from the ABC website.

Saturday, 1:00am AEDT

The President-elect attends a morning worship service.

Saturday, 1:30am AEDT

The Inaugural Swearing-in Ceremony begins. The crowd will be entertained by performers until the President-elect arrives.

Saturday, 2:30am AEDT

President-elect Trump heads to the White House for a meeting with soon-to-be former President Barack Obama. From there, they head to the swearing-in ceremony at the US Capitol together.

Saturday, 3:45am AEDT

Incoming vice-president Mike Pence takes his oath of office.

Saturday, 4:00am AEDT

Which is noon (local time), at which point the term of the new administration officially begins. Mr Trump will step up and take the oath of office, administered by the Chief Justice of the United States, John Roberts.

I do solemnly swear (or affirm) that I will faithfully execute the office of President of the United States, and will to the best of my ability, preserve, protect and defend the Constitution of the United States.

Saturday, 4:10am AEDT

President Donald Trump’s Inaugural Address.

Saturday, 5:00am AEDT

After the conclusion of the inaugural ceremony, Barack Obama and Vice-President Joe Biden (as well as their families) will be escorted out by the new President and Vice-President.

Saturday, 5:30am AEDT

An Inaugural Luncheon organised by the Joint Congressional Committee on Inaugural Ceremonies.

Saturday, 6:30am AEDT

After lunch, President Trump and Vice-President Pence lead the Inaugural Parade along Pennsylvania Avenue to the White House.

Saturday, 11:00am AEDT

The day finishes with Inaugural Balls held across Washington.

Posted in American politics | 15 Comments

A cartoon compendium on Obama and the media

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Posted in American politics, Media | 29 Comments

The tragedy of modern macroeconomics

The cross-post from Richard Holden begins as follows:

Economists did not predict the financial crisis of 2007, nor did we predict that advent of secular stagnation that has followed. Those events have shaken the economic and political world. Our theories need work. Maybe a lot of work.

Recessions are naturally occurring phenomena which always come as a surprise, but on the second half of his statement, let me take you back to what I published in Quadrant in February 2009 and which I had written the previous December.

Just as the causes of this downturn cannot be charted through a Keynesian demand-deficiency model, neither can the solution. The world’s economies are not suffering from a lack of demand, and the right policy response is not a demand stimulus. Increased public sector spending will only add to the market confusions that already exist.

What is potentially catastrophic would be to try to spend our way to recovery. The recession that will follow will be deep, prolonged and potentially take years to overcome.

This has been exactly what has followed the stimulus and it should not be a surprise although among economists it is. And this is not “secular stagnation”. This is the full-on consequence of following a Keynesian approach to recovery. Just because economists no longer understand the crucial importance of value-adding activity doesn’t mean it has stopped being essential to recovery. It has only meant that modern economists have no idea what is going on.

The rest of Holden’s post tries to get at the point via a critique of modern monetary policy – of which there is no greater critic than I am – that Say’s Law makes straightforward. He crosses correctly over to the real side of the economy to show that you can pour out all the money you like, but if there is no real value-adding activity to support it, you cannot make a recovery happen.

The problem with modern monetary theory is that, in short, there is only a finite amount of real economic resources that can be extracted through seigniorage (the difference between the face value of physical money and its production costs). Or, to quote the late, great Zvi Griliches: “one can only get so much lemon juice out of a lemon.”

It is understanding the overlap between the monetary side of the economy and the real side that is without doubt among the major issues in getting many of these things right. This is covered in Chapters 16 and 17 of the second edition of my Free Market Economics, which I began to write at the end of 2008 to explain why a Keynesian stimulus can never work. It is Say’s Law – uniquely discussed in this book and found nowhere else in all of modern economic literature! – that explains how these things work. Every economist understood this before 1936. Now almost no one does. This is the tragedy of modern macroeconomic theory which only makes things worse every time it is applied.

Posted in Classical Economics, Economics and economy | 15 Comments