Friday, June 3, 2011

A long time...

A lot has happened since my last post and I probably would not be posting now but for my feelings about the hoo hah about the carbon tax. I figure if I am going to disagree with other bloggers that I follow, the least I should do is allow a fair return by opening my blog up to discussion about the tax and ets coming.
And when I say coming it's as sure as every other boom the stock market and financial institutions have created.
The deception has been brilliant to the point that environmetalists believe that mining companies and power producers fighting against it are worried about the cost to their pockets. So lets screw them and side with wall street.
And this is somewhat true but also false at the same time. Don't get me wrong I am no fan of mining companies and what they do to farmers and people where they want to dig their holes.
As businesses go you have expenses and profits. The profit is what you have after all expenses have been removed. If expenses go up then the final price on your product goes up. And the consumer pays.
If however you are competing in a market where some of the competition does not have as many expenses as you then you cannot compete. That is why all our local industries have failed one after the other here to the point we import way more than we use to. Thankyou aus gov.
That is what a carbon tax will do to our local industry yet again and continue us on the path to total dependance on imports. Great for the oil reserves hey?
So bits of paper are to be issued that represent an amount of carbon emmissions. We all know how much a piece of paper is worth. A fraction of a cent. So there is a huge profit margin in these bits of paper for governments and companies issuing them. No surprise that some of the biggest supporters for carbon taxing have interests in these carbon credit issuing offices.
But even more evil is the veiled surprise a couple years out from the introduction of the carbon tax in the form of an ets. Yes we won't have a fixed price that people can budget for but a moving price. You know like the moving price of petrol or interest rates.
Ok 10 dollars a week certainly doesn't sound like much even to people close to the line with their budgets but what happens when the market decides that the value of emmissions is 250 dollars a tonne? Wouldn't that mean the cost to people would increase to 100 dollars a week?
I'm sure that could rock a lot of people's budgets.
But if you happen to have a lot of carbon credits it would make you very wealthy. Who is likely to own a lot of carbon credits? Well you might say people who are creating emmissions. Unfortunately the stock market was designed with good intentions but due to greed in man has ended up a monster out of control. We have seen the Great depression, we've seen the tech bubble, we've seen the housing bubble, guess what's next.
Speculators have at times driven the price of oil to extremes and didn't that hurt. Get ready for the same on the price of emmissions per tonne.
The crying shame is that the very people who care about the planet are helping to bring this about without achieving the thing their hearts desire. A cleaner planet.

1 comment:

  1. Hi Gullygunyah, it's great to finally catch up with your blog. You have left a couple of comments on mine in the past (Gully Grove) but when I checked your profile then, I couldn't see your blog listed.

    I actually found you through another blog I read, which had you on their list. Needless to say, it's great to see your property finally.

    I happen to agree with your views on the tax and I've even got my own views on grid connected solar. At the moment the govt has made it cheap for householders to get solar panels, but only if they're connected to the national electricity network. With govt protections in place, it seems like householders are making pure profit. Yet national electricity networks are not owned by individual householders.

    I see a time in the future (much like the govt did with Telecom/Telstra) where they remove all protections and allow the market to control the asset. I can see a day where householders who want to make money, selling their solar energy back into the grid, will have to pay line rental. It's not present now because it's an introduction offer compliments of the Australian taxpayer.

    It will be another story when the market will be given the control over their own asset. It's amazing people believe, just because the govt is setting all this up (billions spent on convincing ad campaigns) that it will be a safe and secure measure for Australians to leap into green energy production. Only they don't recognise they don't own the asset. No corporation will allow them to profit for free once the govt steps back.

    After researching solar myself I've come to realise the only practical use for it is stand-alone. Which not ironically (rather deliberately) was left off the govt subsidy bandwagon. Why would they want to help householders compete with energy companies independently? All the govt subsidy offers on grid connected solar, had you sign over the control of your carbon credits to the company (or affiliated parent company) who installed them too. It says something about who the govt wants to give control to.

    The only future for Australian taxpayers now is paying for the same controlling corporations on energy, to make the upgrades necessary on their national networks - networks we don't even own but require to make profits from. The govt did a nice one on the trusting taxpayer. Some of us, didn't buy it though. ;)

    Nice to see someone else prepared to talk about it.

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