A Lonely Suicide

29 Feb

A 30% over-valued, speculator-driven Aussie Dollar white-anting whole swathes of the non-mining economy, with the RBA’s blessing.

A government and opposition united in not wishing to do anything about it.

A World’s Biggest (and highest price) CO2 Derivatives Scam set to hollow out what’s left.

A minority government defying the will of the people in implementing it, and an opposition powerless to stop it.

Sounds great, right?

After all, we are going to “lead the world” in the “greatest moral challenge of our time” … despite no global warming in a decade … right?

And all the other lemmings are going to follow us off the cliff, as enthusiastic human sacrifices to the Green cargo cult … right?

Uh … no:

Japan has become the latest major world polluter to rule out introducing a carbon price or carbon tax in the near future, as it struggles with power shortages and a rising yen caused by the euro crisis.

Senior Japanese diplomatic officials in Tokyo have told The Australian there is “no chance” of the country adopting a scheme similar to Australia’s carbon tax or emissions trading scheme in the foreseeable future.

Japan, the world’s fifth-largest carbon emitter, joins the US and Canada in backtracking on the introduction of a carbon price.

Our impending national economic suicide is becoming lonelier by the day.

Europe?

They went over the cliff years ago.

Now we’re just watching the entrails gush out, and the blood spatter.

At least we can feel all noble and holy though … right?

UPDATE:

The AFR reports that electricity generators are warning of price blowouts in excess of that predicted by the Green-Labor-Wind-Shott gubbermint –

The head of Australia’s largest power generator has warned that electricity prices will rise more than the federal government predicts under an option to ration output in order to stay ­profitable under the carbon tax.

The comments by Macquarie Generation chief executive Russell Skelton highlight warnings by the power industry that distressed generators will start to manipulate the price of power in the National Electricity Market in order to stay afloat.

The price threat also casts doubt on the government’s tax cuts and ­welfare payment rises for consumers.

The compensation package is based only on the Treasury estimate of a 0.7 per cent rise in prices due directly to the carbon tax in 2012-13.

Figures released by the government yesterday show some generators will need to pay hundreds of millions of dollars to buy permits in advance to cover emissions when the scheme starts on July 1.

“We expect to go from a profitable business to an unprofitable business partly as a result of the carbon price,” Mr Skelton told The Australian Financial Review.

“Most of the analysis and modelling done indicates we will not be able to pass through somewhere between 20 to 40 per cent of the cost [of the carbon price],” he said. “If you have a $500 million bill you have to absorb 20 per cent, so there is $100 million right there and our projected profits this year are $100 million.”

As a result, Macquarie is considering options to stay profitable which include reducing output to increase the price of power on the National Electricity Market. “We have done it in the past to respond to varying market circumstances,” Mr Skelton said. “To the extent wholesale prices increase, you would expect it would increase the price to consumers.”

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