There are a lot of reasons behind Australia’s lamentable political state.
But ultimately, Turnbull’s Prime Ministership ran aground on the sharp reef of energy policy.
The trouble started with the Paris Accord. This is the latest (and umpteenth) attempt by unelected bureaucrats/technocrats to interfere with the economic development of individual countries by imposing restrictions on carbon emissions.
The problem is that it is utterly unworkable. On the surface, the gist of the Paris Accord is that carbon emissions are behind global warming, and we have to lower emissions (by raising prices) in order to control climate change.
In fact, climate change is such a threat that if we don’t act there will be catastrophic consequences!
Gee, we better do as they say then, huh?
The issue with politicised research
I call bollocks on that. Climate change is a global scare tactic in order to centralise power in the hands of the unelected and take sovereignty away from nations like Australia.
I say that because there is a technology available that could potentially provide us with free and unlimited power with zero carbon emissions. I covered this in Friday’s Money Morning. Nikola Tesla was potentially on the verge of an energy revolution but was shut down by powerful vested interests. The oil business was just too lucrative.
And now they’re telling us to reduce emissions when they know damn-well there is another solution? What a stitch up!
To make matters worse, not all countries have made the same commitment to reducing carbon emissions. The US had a large burden (signed under the Obama administration) while China — by far the world’s largest polluter — didn’t have to do as much.
This is why Trump pulled the pin on it. He wasn’t going to give up US jobs based on an ‘international accord’. And nor should we, especially when the world’s largest emitters aren’t doing too much.
Let’s face it, the research around climate change is so politicised it’s impossible to know the truth. But often, the simplest answer is the most probable one. As David van Gend wrote in The Spectator on Saturday:
‘The planet is presently experiencing the mild warming that comes every thousand years or so — the last one in the Middle Ages being warmer than the present. We are also enjoying the warm interglacial period that comes every hundred thousand years or so — and again, the interglacial prior to the last Ice Age was warmer than our own. Even within the present interglacial the earth has been cooling for some eight thousand years — and if past performance is any indicator, we are due for another Ice Age.’
Getting back to the political consequences, Turnbull’s determination to achieve the Paris Accord targets via the National Energy Guarantee proved to be his downfall. The conservatives in the Liberal Party rightly saw it as selling out to a global agenda that didn’t have Australia’s interests at heart.
And they rightly saw it as a futile attempt to avert climate change when the world’s largest emitters aren’t doing too much.
So Turnbull got the boot. Dutton was meant to come in as his replacement, but Morrison got the job instead. As Karen Middleton writes in The Saturday Paper, Morrison and his supporters played Dutton and Turnbull off on each other before pouncing.
The old wolf in sheep’s clothing job…
That miscalculation by the conservative faction could well see Bill Shorten come into power at the next election. That will be a debacle for the country, so I’m not even going to contemplate that now.
Why we can’t regulate an energy breakthrough
Let’s get back to what got us here in the first place. That is, energy policy, and the fact that Australia is losing its sovereignty on this front to the climate change industry.
Look, I’m not saying we shouldn’t do anything about industrial pollution. It is horrendous. It poisons our air and water. And, via excess use of pesticides, it is also in our food supply.
But the free market potentially had a solution a century ago. It is only through greed and complicity that we didn’t go down that path.
The world can’t regulate or legislate itself towards an energy breakthrough. Yet that is what unelected bureaucrats are trying to get us to do.
It won’t work. Billions in new taxes will be raised for a negligible difference in pollution and probably no difference in global temperatures. The taxes will also help continue to fund the views of unelected technocrats and bureaucrats, because we’re too dumb to do it ‘right’ via the democratic process.
What can we do about it?
Well, being aware of the stitch up is the first step. It also helps us to understand the machinations behind national politics. And if you’re so inclined, you can send an email to your Federal representative telling them not to sell Australia out.
When it comes to investing, there is no place for morals. Money is amoral. The best option is to direct your capital towards sectors where capital is required and will generate the best long-term returns.
A few years ago, that sector was oil. The supply and demand equation was definitely favourable. However that is no longer the case. The rise in price has brought about a supply response.
However, there is another sector that was just like oil a few years ago. In fact, I believe its prospects are even better. The supply/demand equation is extremely favourable to future growth.
But like all good opportunities, this one is off most investors’ radars. If you want to get a jump on the market, be sure to keep an eye out for my special report on this special energy source tomorrow.
Editor, Crisis & Opportunity
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