A world in economic crisis

The severe economic consequences of the imposition of a carbon tax

Posted in ALP, stagflation, watermelons aka Greens by Aussie on July 2, 2011

Australia has a problem – we have a Marxist Prime Minister by the name of Julia(r)-the Marxist – Gillard (Dullard). This particular woman grabbed power last year when she stabbed Kevin Rudd (equally inefficient) in the back. We went to the polls in August and the result was a hung Parliament. That bitch, Gillard, was willing to deal with the devil (Bob Brown of the Green Party) in order to grab power and to continue her wrecking ball game. There is very little difference between the disaster in the USA and the impending disaster in Australia. In 2007 when Krudd won the election, Australia was in a good financial position. However, it took very little time before KRUDD had run through the budget surplus and created a large budget deficit – this of course is what ALP governments tend to deliver to the Australian public. It has been one failed program after another, and all of them costing far more money than was necessary, due to wastage and stupidity of the Public Servants who are overseeing these programs. At least when I was a public servant, we had some controls over spending via the contracts system that had been put in place (even though it can be argued that even this could lead to corruption). The controls under Paul Keating as Prime Minister were superior to what is in place right now.

Julia Gillard lied to the voting public. During the election last year, the bitch stated that she would not implement a carbon tax. SHE LIED. She is now in the process of attempting to implement a tax that will have dire consequences for the Australian economy and for families that are already struggling because of higher electricity and gas charges. All of this is happening because of a non-existent crisis that the Marxists are claiming is real – that is Climate Change or Global Warming or whatever the euphamism for the redistribution of income happens to be this year. The fact is, the earth is not warming like it is claimed by climate alarmists. The fact is that this is just one giant scam.

If the tax is so necessary, why are they trying to work out a “compensation package”? The fact is that any industry that is hit with this unnecessary tax is going to pass on the costs to the consumer. The logical consequence is going to be cost-push inflation.

As I have been writing on this particular blog, I have tried to come back to the things that caused the prolongation of the stagflation of the 1970s, and I have tried to compare that situation to the present. One of the indicators of the 1970s was cost-push inflation, due in part to the union demands for higher wages, which was fuelled by inflation. It was a wages-price spiral. It was the Fraser government that attempted to bring this under control through the implementation of a wages freeze. The Whitlam government had attempted to control prices through the implementation of the Prices Justification Tribunal, but that tribunal did nothing to bring prices under control because of the nature of the inflation. It is obvious that if the cost of production rises because of both increases in materials and labour, then the price of the product must also rise. In other words, you cannot control one element without controlling the other elements. BIG FAIL.

The twist in the current situation is that too much attention is being given to Green or Watermelon policies. The Watermelons have an agenda that is designed to hurt the community as a whole. Their economic policies absolutely stink to high heaven. They have absolutely no idea when it comes to the consequences of their total stupidity. It is the Watermelons who have been pushing for the carbon price or carbon tax, and it is the Watermelons who have been pushing inefficient methods of producing energy, such as windpower, whilst at the same time rejecting other methods such as hydro-electricity, as well as attempting to get rid of the coal powered stations such as Yallourn and Hazelwood in Victoria, with their bullshit lies that these are heavy polluters, and as such these power stations are somehow responsible for the normal changes in the climate and the weather.

What is even worse, is that Australia exports its coal to countries such as China and India where there is no effort to control the “pollution” from their power stations. The Watermelons want to shut down the coal mining industry. If this happened then this would hurt the Australian balance of trade. The watermelons have already severely affected our live meat exports to countries such as Indonesia and the Middle East.  It is as if they also want to shut down the rural industry as well. All this because they live in an ideological vaccuum.

If the bitch of a Prime Minister is not stopped, and if the Greens are allowed to continue to hold the country to ransom with their nonsense, then the consquences for the economic well-being of Australia will be absolutely dire. This is because those policies are affecting the industries that actually export product to other countries. We need to have exports in order to pay for our imports. The proposed carbon tax will also harm our exports, making the Australian products too expensive on the open market.

 

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