Tag Archives: oecd

OECD: Australia Needs $76 Carbon Price To Meet Emissions Target

25 Sep

Holy Man Jam, Boulder, CO  Aug. 1970

From The Australian:

MYSTERIOUSLY, once the election was over, an OECD report with a Treasury official’s input emerged indicating the carbon tax would need to be 10 times the EU rate and twice the $38-per-tonne level posited by Treasury to allow Australia to meet its 5 per cent carbon reduction goal…

The OECD report indicates that unless the developing world also implemented a carbon tax, Australia would see considerable de-industrialisation, moderated only by a retreat into an illegal protectionist regime. And the competitive pressures would further intensify if, as appears likely, Japan, the US and other OECD countries also reject a carbon tax.

This is contrary to the official Treasury line that we need a price on carbon now, that the longer we wait the more painful the transition and that the costs will be trivial. Treasury secretary Martin Parkinson would have known of the report’s findings months ago.

And there we have it.

Treasury knew full well what the true ramifications of our political leaders’ commitment to “emissions reduction” would be. They just weren’t willing to tell us.

Unless the rest of the developing world (China, India, etc) follows our the 2010 Green-Labor alliance’s lead in implementing a carbon tax — which they aren’t — then in trying to meet the 5% emissions reduction target, Australia faces “considerable de-industrialisation”.

The devastating effects of which could only be moderated by … wait for it … protectionist policies.

Which are “illegal”; a reneging on “free trade” agreements, designed by international bankers and multinational monoliths, and happily signed up to by our former leaders, on both “sides”.

Protecting the interests of your own nation’s people is a really terrible and evil thing … according to the “free trade” globalists.

Being “open for business”, and willing to further expose your nation’s people to the predations of that 0.01% who wish to own (thus, rule) the whole world through debt … that is what makes you a “leader” worthy of international acclaim.

OECD: Greek Crisis ‘Like Ebola’

29 Apr

From Bloomberg:

European policy makers may need to stump up as much as 600 billion euros ($794 billion) in aid or buy government bonds if they are to stamp out the region’s spreading fiscal crisis, said economists at JPMorgan Chase & Co. and Royal Bank of Scotland Group Plc.

With Greece’s budget turmoil infecting markets from Rome to Madrid, economists are urging German Chancellor Angela Merkel, European Central Bank President Jean-Claude Trichet and other officials to come up with unprecedented measures. Other steps could see governments guaranteeing bonds and the ECB abandoning collateral rules or reviving unlimited lending to banks, the economists said.

As OECD head Angel Gurria likens the crisis to the Ebola virus, Europe may need to come up with a plan equivalent to the $700 billion Troubled Asset Relief Program deployed by the U.S. after the collapse of Lehman Brothers Holdings Inc. “It is perhaps time to think of policy options of the last resort in the current sovereign crisis,” said David Mackie, chief European economist at JPMorgan in London.

“This is like Ebola,” Organization for Economic Cooperation and Development Secretary General Gurria told Bloomberg Television yesterday. “It’s threatening the stability of the financial system.” The World Health Organization calls Ebola “one of the most virulent viral diseases known to humankind.”

Greek Debt Crisis Reflects Global Problem

1 Mar

The Greek debt crisis represents a threat to the entire Eurozone, and ultimately, the global economy:

Simon Tilford, chief economist at the Center for European Reform in London, says the Greek crisis reflects a larger economic problem in Europe. EU members like the Netherlands and Germany have spent too little and their economies are driven by exports. Meanwhile, southern economies like Greece and Portugal have spent too much and amassed debts as a result.

Now that sounds familiar – “…economies are driven by exports… spent too much and amassed debts as a result”. One could be forgiven for drawing a logical conclusion – that the Australian economy, far from being a shining beacon of fiscal prudence, actually encapsulates the worst of the Eurozone’s economic dilemma.

Greece’s problems are also spilling beyond Europe’s borders. The value of the euro currency has plunged for example, which makes American exports – key to the U.S. economic recovery – less competitive.

Ultimately, Tilford says, the Greek problem reflects a world economic problem.

“The eurozone s really just a microcosm of the global problems we see. So unless we see the big countries in East Asia rebalancing away from exports and toward domestic demand, we are not going to generate a self-sustaining global economic recovery,” he said.

But Tilford does not believe Europe is ready, or willing, yet to undertake fundamental economic reforms he thinks are needed to right these imbalances. The region may rescue Greece, he says, but it will only be putting a bandage on a far bigger problem.

Could it be that, as with every other global trend, Down Under Australia has not “escaped” the GFC at all, but is simply running a few years behind everyone else?

Barnaby is right.

OECD Economist: Double-Dip Recession Looms

28 Feb

One can only wonder if Treasury Secretary Ken Henry watched the ABC’s “Inside Business” this morning:

One of the OECD’s leading economists says there is a strong chance that the world’s leading economies could quickly slide back into recession.

The deputy director of the OECD’s financial and enterprise affairs, Dr Adrian Blundell-Wignall, has told ABC1’s Inside Business program that the threat of a double dip recession remained because problems in the banking system have not been solved.

“There are many icebergs the ship has to negotiate before we’re out of jail here. This is going to be a 10 year process, not a one year process,” he said.

Dr Blundell-Wignall says many of the banks’ problems have been hidden by changes to accounting rules and their most toxic assets have been shifted to the balance sheets of the big central banks in the US and Europe.

Dr Henry recently stated that the GFC is “over”:

“What people have called the global financial crisis, that has passed“.

Dr Henry went on to predict a “period of unprecedented prosperity” for Australia, one that could “stretch to 2050”.

Dr Henry failed to predict the GFC.

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