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EYE-BALL’s Herman on: Creative Destruction …

Herman O'Hermitage
Title:
Creative Destruction …
By: Herman O’Hermitage
Herman O'HermitageJoseph Schumpeter (1883 –1950) gave us the theory from his research of Karl Marx. See http://en.wikipedia.org/wiki/Joseph_Schumpeter

In most ways it is loosely what we term a bubble in the economic cycle. The capitalist system goes through a cycle of upturn, expansion (bull market), and downturn, plateau (bear market). It cannot be explained other than through excess production or consumption over hang. Where supply exceeds demand then prices must fall to clear surplus supply. If demand exceeds supply then we have an opposite shift.

In the ancient Taoist philosophy of I Ching (Yin and Yang) it is loosely in the cycle of accretion and decretion lie the seeds of one another. Night will follow day, as day will follow night. Boom will follow bust, as bust will follow boom.

People say that Communism is a broken model. I agree. The Boston School of Economics wants to say because Schumpeter says perfect competition is utopian and will not sustain proper research, then totally de-regulate markets. A bit of a stretch.

This leads to my disgust regarding Australia’s mining boom. Coal and iron ore prices have already turned down, yet we can’t increase supply fast enough. There are currently 39 mines in the Galilee basin extracting coal, and we are planning to construct another 37.  (Try searching Alpha Coal, or Kevin’s Corner). Similar is occuring in Pilbara iron ore. There are many other examples. During the week the ABS released retail sales, where WA was up over 12% and Victoria was down 1.1%.

Any well run extractive business needs to know that for each ton of production there is sufficient research done to replace that production with further geological proving up. Why doesn’t Australia see it’s natural bounty the same way. Bass Strait oil is now exhausted. It is thought that there is further oil to be had deeper under sea, more expensive to find and extract but when Bass Strait was in production did we spend enough on research to develop the whole concept. Largely no because there were easier sources of fossil energy like North West Shelf. Australia is totally at the mercy of international markets for petrol. At the same time we are constantly shipping LNG to Asia. We should be developing gas fuelled automobiles. We are but simply not enough.

See previous post: “A crappy new Year”

| Sep 13, 2011 | by Herman O’Hermitage| Linked Here |

In part it stated: …

“Early in the new year, the full picture of China’s issue will be in the markets. Where may they try to dump their excesses, particularly if they are condominiums in some Chinese satellite city? This will see demand for base metals collapse.

“Don’t over exaggerate this. Spot price will fall below contract price, for coal, iron ore, alumina, and bauxite.”

Yet our miners and our government continually tell us smile you have never had it so good. Smile while you watch avarice and greed sow the seeds of destruction. Creative destruction. I would advocate that in sensible economics if we can’t get the workers to build these new projects in WA, then maybe that is a warning that this boom has gone too far. Do we want to over inflate miners wages and other cost structures particularly as bases metal prices are falling.

We have far too many crazies running the show. An oligarchy of money and power. Gina Rinehart, Clive Palmer, BHP Billiton, Rio Tinto, McArthur Coal, Fortescue Metals, Julia Gillard, Wayne Swann. Rack off. Who owns those resources?

Our mining industry is an absolute disgrace.

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Click here to read more of Herman’s previous posts …

Herman …

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EYE-BALL’s Harry’s Growl – Harry’s Political Updates – June 2nd 2012.

June 2, 2012 Comments off
The-EYE-BALL-Harry's Growl-Header-2
Title:
Harry’s Political Updates …
June 2nd 2012.

This Weeks Headings:

| June 2, 2012 | Click on Heading’s below  to go to linked story. |

  1. The Mad Dash
  2. Gillard and the Unions
  3. The Media
  4. Larry Pickering’s latest cartoons

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The Mad Dash:

[Click on photo at rignt to read the ‘Herald Sun’ story on this humuliating saga.]

Did you all see the Abbott, Pyne and one other rather large Opposition Member make a scrambled dash to exit the House on a ‘Division’ vote? Pathetic is about the only words that can describe the contempt these three Opposition Members offered up as Representatives of their electorate and the cause of Democracy.

There were other options available – several have been mentioned in commentary elsewhere over the course of the week. The ‘thinking on your feet’ response should have been just to walk across the floor and sit next to Gillard and Albanese and say – ‘bad luck fella’s’. The first thought of these ‘experienced’ opposition Members was to scamper for the exit doors. It was Italian style politics. Next we’ll have water bombs being traded across the House it if keeps degenerating to a ‘feral’ schoolyard gathering.

Such was the ‘stench’ attached to having Craig Thompson vote with the Opposition – the House descended to these levels. Abbott as Leader will not live this down – his poll numbers at the beginning of the Week had again fallen below that of his opposite. Sydney Morning Herald political editor Peter Hartcher wrote on the Leadership with the following story – presented below in part, it is a very good piece of journalism and please use the link provided to read the full story on-line.

Panic on the House floor

| June 2, 2012 | by Political Editor – Peter Hartcher|

Events of the past week have solidified the suspicion that neither Gillard nor Abbott is a true leader of real stature.

The past eight days laid bare the greatest fears of the leaders of both Australia’s main political parties.

For people who spend every moment striving to win and hold power, their greatest fear is powerlessness. We have just seen Julia Gillard and Tony Abbott panic at the prospect of powerlessness, but it loomed for each in a very different way.

For the Prime Minister, it was when she was confronted in her office by a pair of angry union leaders.

The union bosses were in Canberra for a meeting of the Prime Minister’s manufacturing task force on Friday last week.

Their first appointment, though, was to see the Immigration Minister, Chris Bowen. He briefed them on the announcement he was to make later that day – the government was to grant an enterprise migration agreement to Gina Rinehart’s Hancock Prospecting to allow it to bring 1715 foreign workers to start-up the giant new Roy Hill iron ore mine in Western Australia’s vast Pilbara.

When [Paul] Howes and [Dave] Oliver told Bowen that they opposed the decision, he replied that they’d known it was coming, and told them that it was necessary for the project to go ahead. Bowen was unmoved.

But when they took the same complaint to the Prime Minister, she discovered the limits of her nerve. Unable to defy the unions, Gillard was reduced to the sort of schoolyard excuses that kids use when confronted by authority – “I didn’t know anything about it,” she told them.

This was nonsense. Bowen’s office had told Gillard’s office early in the week that the decision had been made and was to be announced later in the week.

Gillard was in the US at a NATO summit. But her staff briefed her on the Roy Hill deal when she returned to her office on Wednesday. She raised no objections. If she had chosen to, she could have had the decision reviewed or delayed, even at that late stage. But she did not.

Why not? For the same reasons she should have explained to the union leaders.

… the story continues … click here to read more

Hartcher wrote a great article, one of many stories bemoaning the falling behavioural standards or our elected Representatives. Even the Deputy Speaker had cause to describe the behaviour as ‘feral’, and the worst she has seen in her time as a Member.

Put another way – the behaviour of the House is a measure of the way political Representatives see themselves – they have no higher authority except the Electorate, the people – and yet the people are the ones they least respect or honour with the responsibility entrusted to them. They ignore the electorate at their own peril.

This weeks ‘stunt’ as Abbott is now trying to rewrite his role as a lead part in the events that happened, may well have been an Albanese ‘stunt’ but it worked because Abbott, who followed Pyne’s judgement to try to exit the chamber. You make up your own mind on whether what Abbott did was leadership behaviour.

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Gillard and the Unions:

[Click on photo at rignt to read the ‘Brisbane Times’ story on Paul Howes Response to foreign worker programs.]

The same Hartcher SMH story mentioned previously touched on the Union confrontation with Gillard. Gillard has only survived because of the political aspirations of the Union boss’. Inside the House, Shorten, Combet, Ferguson, and Crean all have lengthy Union backgrounds – outside the House Howes has his eye on a top job as well.

The cracks that have always been there under Gillards Leadership and the way in which she attained the PM role are not becoming ‘open wounds’ on which many scavengers are now again licking with a want to draw new blood.

This Leadership void on both sides will not go away – and the question most asked is where is Malcolm Turnbull. If one was to watch him in the House – he rarely engages in any of the debate, never seen at the dispatch box asking a question, or making a ‘point of order’, his demeanor is gaunt, hairline receding, weigh loss, and the obvious question comes – ‘is he well?’.

Abbott has had three years in the top job – and his popularity has gone nowhere – it never will. From the electorates perspective – he is unelectable against anyone other than Gillard. when the ALP wake up to this fact – Gillard will in turn be forced to make her ‘walk of shame’.

The play this week by the Unions against Gillard as Hartcher outlines in his story – might just be the ‘belly-drop’ moment all politicians fear – the realisation that ‘nobody out there likes them!’

Let us all hope that the realism of imminent ‘failure’ and the ‘death-knock’ that is sure to follow happens sooner rather than later.  But then – who will fill the Leadership role this Nation so desperately needs – I can feel a ‘bring back RUDD’ chant in the distant echo’s.

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The Media

The Globe is devoid of much needed and inspired Leadership. The dumbing down in the quality of our Political Leaders, and their ‘frozen-hare’ syndrome type responses – all evident in some of the Political decisions being made, all comes down to how Leadership perceive the media will respond.  Their first priority is how they can make the media cycle work for the Leadership, and whatever announcement they are about to make.

It truly is a pathetic example of how Leadership is ‘held to ransom’, yet they are happy to be in that position.  They believe the Media is their ally, that they can control the story, and they can make it all a positive experience for the Government or Opposition depending from which side of politics you view the cycle.   Time and time again Political Leaders go to their Press and media advisors and ask – ‘how did we not see that angle.’.  It is a question that relates to the ‘hip-shootin’ style decisions and the process in forming the decisions that create the ‘harum-scarum’ panic that often follows.

The intimidation the media cycle offers has in fact frozen the ‘decision-making’ process.  The first thing any Leadership and their colleagues consider before they make any decision is the way it will play in the media cycle.  Be it a crisis, a new policy initiative, or when dealing with domestic or international incidents, is the media cycle and how the Governments wants to use the media to sell its message that is at the forefront of any decision making process.

Governments try their darndest to get on the front foot – but because the leaks from within – the media are always ahead of the Government in the news cycle. It has been this way for decades – since ‘Watergate’ the press have known that they hold the power and everything that has flowed since, has the Politicians thinking that if they can befriend the media at the highest levels, and those who write the stories, then they believe that this ‘pipeline’ of survival will protect them when they need it.

The political ‘graveyard’ of burned Members is overflowing because of the mistrust placed in Journalistic integrity and loyalty.  The Editor will always have the final say on any story.  Mor often than not, the parliamentary Members shoot themselves in the foot, and no amount of journalist bribery can protect them. This is where Political integrity begins and ends.

The ‘free speech’ cliché all Journalist’s subscribe to is only a ‘skin-deep’ responsibility – they use it to gain entry to the exclusive clubs where powerbrokers ply their skills – and on the other side of that equation is the sleazy side of Journalistic bribery.    All things are justified under the ‘free-speech’ banner or so the Media would have us all believe.  Yet the scribe will write the story that gives the slant his editor wants – even the Media proprietors chose sides in the Political arena, unbiased reporting is also a  cliché that holds little creditability on the modern media cycle.

Global governance is almost where we are at and the integrity of the media is at its lowest ebb – where it all goes from here is what we would all like to know.  Something surely has to give …

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Larry Pickering’s Latest Cartoons:

[Click here to go to Larry’s Facebook page …]

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This cartoon provides an opportunity to win a framed copy of this cartoon delivered to your doorstep. All you have to do is go on-line and post a ‘caption’ comment that would complete the cartoon. Entries close on the 7th June. Click here to make your ‘caption’ comment.

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Please – if any of the opinions expressed hereto raises concerns within your own belief about how this Nation is being managed, or any other concern, please contact your State content to your Federal Member via an e-mail or a telephone call to express your concerns.

You’ll find the House of Representatives (HOR) and Senator e-mail addresses via the links below to the Australian Parliamentary website Members and Senator profiles. It is an important aspect that in our form of Democracy, that the people be heard – we should ensure the Government Representatives hear our opinions. If we stay silent, then Democracy is not served.

Use the Federal Member and Senate links below to find your Local Member. If you prefer, you can just post a comment below and let your views be heard.

Link to other most recent Harry’s Growl Posts.

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Harry’s Growl …

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