India

Our Sandy Hook moment?

You have to hand it to the editors of The Guardian. In what world can anyone draw an equivalence between action on climate change and a crazed gunman who murdered 27 people, mostly kindergarten kids? Who wouldn’t think the two are interchangeable?

The Guardian columnist Brigid Delaney wants us to believe the connection. At the very least this article proves once again why the paper still asks for charity at the bottom of each article because the content doesn’t warrant a high enough value that ordinary people are willing to shell out for it. Sometimes, content IS the problem.

Her column takes similar cues from the recent NY Times article on ‘Australia committing climate suicide.‘ The Man Booker prize-winning author of the opinion piece, Richard Flanagan, is a novelist, not a climate expert. 

As Mikhail Gorbachev, the last Soviet leader, once observed, the collapse of the Soviet Union began with the nuclear disaster at Chernobyl in 1986. In the wake of that catastrophe, “the system as we knew it became untenable,” he wrote in 2006. Could it be that the immense, still-unfolding tragedy of the Australian fires may yet prove to be the Chernobyl of the climate crisis?

Such dramatic language may well have inspired Delaney,

Sandy Hook was the rock bottom moment – where things are so bad you know they can no longer continue as is. After rock bottom, there is a choice: stasis and misery or growth and transformation…This apocalyptic-seeming Australian summer is our Sandy Hook moment. We have to seize it and change our thinking, our priorities and our politics. In doing so we can change our country, our future, and transform ourselves into global leaders on climate change.

Delaney might reflect on the facts surrounding gun violence in the US. 95% of firearm-related murders in the US are committed with handguns, not automatic weapons. So despite the constant fixation on automatic rifles, statistically American lawmakers would be better off banning sales of pistols. Deaths from mass-shootings are less than 0.6% of the total. Horrible yes, but a handgun ownership culture moment would have been more apt given that almost 40,000 that perish at the wrong end of a trigger every year. 

According to the Crime Prevention Research Center, murders in the US appear to be very concentrated: 54% of US counties (representing 11% of the population) in 2014 had zero murders, 2% of counties made up 51% of the murders, ironically in states with the strictest gun controls – Illinois, NY and California. 

Who needs facts when it is much easier to put the blame at the feet of 5 million law-abiding citizens who happen to be NRA members. Perhaps Americans don’t view gun massacres as ‘rock bottom’ moments when it comes to defending their amendment rights. Mark Robinson gave a perfect example of why Americans are fed up with being punished for the actions of others. Obama had control of both houses in his first term. Spoke about 2A. Didn’t do anything about it. Plenty of gun massacres in his first term including Fort Hood.

Moving on from Sandy Hook and guns, allow us to indulge her commentary on The Guardian’s pet topic of climate change. Let us not forget that the newspaper implores its journalists to crank up the alarmist rhetoric. If only as much effort went into investigating the numbers behind the claims.

Transformation is recognising the facts: Australia is a climate vandal, led by wreckers. We are ranked the worst of 57 countries on climate policy.

Delaney has probably never read the entire CCPI report which ranked us 57th. If she had (like we did), she might have found the following,

The CCPI measures the emissions, renewable energy share and climate policies of 57 countries and the European Union. It released the document at the COP25 summit to bathe in the spotlight with alarmists pals. Where was the journalistic rigour? Of course, it was non-existent.

Who were the Aussie based “experts” (activists) the CCPI relied on to provide really in-depth qualitative opinions on our climate policy evaluation?

Doctors for the Environment Australia
Australian Conservation Foundation 
Oxfam
The Australian Institute

All climate activists. Precious little objectivity there. It is isn’t hard to work out why Australia scored a 0.0 on climate policy. Even worse, any think tank with the remotest thirst for integrity in reporting and sensible data collection should have questioned a zero score. CCPI didn’t.

Yet Delaney went in all guns blazing to bash Australia’s lack of climate-friendly credentials, citing this farce of a study as gospel. It is so bad it actually makes the IPCC climate bibles look good and that takes some doing given many scientists slammed the processes which were documented in the internal feedback study. We summarised the outcomes of that 678-page document here.

Is Delaney aware that according to Bloomberg NEF, an organisation owned by an individual with heavy green credentials, Australia has the 3rd highest clean energy spend per capita! We spent twice as much in real dollar terms as France yet these climate alarmists marked us down to zero “because our democracy supported Adani.”

Sorry Ms. Delaney, we are finding it hard to reconcile how Australia spending  11x the global average on renewables makes us climate vandals? What level would you suggest we lead? We await your data-rich analysis. 

Is this the takeaway from your rich climate expertise?

What might our transformation look like? It might look like a simple acknowledgement of causation between climate change and this summer’s fires.

OK, so we just get ScoMo to declare a climate emergency? Job done!

Presumably, if we follow alarmist logic, had we legislated to accelerate renewables by not having a democratically elected carbon-loving prime minister, supported by the Murdoch media and fossil fuel industry“, these dreadful bushfires, many lit by arsonists taking advantage of poorly managed fuel loads, wouldn’t have happened, right?

It couldn’t have been the lax fire service management of the forests and the closed shop mentality of our emergency services?  Did Delaney know that Greg Mullins, the leader of the 29 former fire chiefs, barely mentioned climate change in the last five years of FR NSW annual reports under his leadership? If it is such a huge issue in retirement, why didn’t he mention it when in a position to prosecute the case? Mullins would have sounded far more credible were his alarmist fears documented in black and white. They weren’t. Go figure. 

If we indulged Delaney’s the painful lessons of this summer could be transformative, if we allow them to be. Australia – having experienced the pointy end of the climate catastrophe – could become a leader in the global fight to reduce emissions.” for a moment, does she honestly believe that spending billions more on renewables in Australia and terminating coal exports would put a dent in our already minuscule 0.0000134% contribution to human-caused global CO2, much less the world’s? Can she make a case in data?

Will she stand in Tiananmen Square and shake her fist at China, which is building between 300 and 500 new coal-fired power plants out to 2030? Or rant to President Xi that China will spew one full year of Australian emissions every week by that date vs every two weeks as it stands today? Just easier to hitch to the media wagon and heap scorn on ScoMo. 

The lost plot

Is anyone surprised that nothing was achieved at the COP25 summit? How is it possible that 27,000 disciples knelt at the altar of the UNFCCC to listen to a pigtailed teenager and came up empty handed?

UNSG Antonio Guterres lamented, “I am disappointed with the results of COP25…The international community lost an important opportunity to show increased ambition on mitigation, adaptation and finance to tackle the climate crisis.”

What annoys FNFM is the sanctimonious shame culture that consumes these meetings. Heretics are outed and slammed. Australia is never far away from a beating. Yet the show goes on. COP26 will misuse data and amplify the hysteria.

Even more disturbing is how this woke behaviour is finding its way into our financial institutions.

Instead of looking to diversify earnings and maximize shareholder returns they are taking stands on climate change. The Big 4 Aussie banks refuse to invest in anything related to the Adani coal mine. Another 35 global banks will do likewise.

One could make a clear case against investment were the Adani coal mine to carry excessive financial risks but it doesn’t. The end user in India has a giant thirst for decades. This is money for jam.

Bank boards should ask themselves, since when did any customers seek climate advice from their loan managers? It is ludicrous.

APRA should forget regulating the banks over fees or charging dead people but question the economic rationale behind decisions like Adani. It is not to say banks don’t have a right to deploy capital as they deem fit but there should be a sensible purely financial explanation behind it, not one wrapped in ideological dross.

The ultimate irony here is that banks, forever showing diversity in the workplace, don’t seem to want to apply it to the loan book which is so ridiculously skewed to mortgages. There is nothing prudent about that.

So maybe the UN COP summits are having the desired effect behind the scenes. Howl at the moon long enough and get teenagers to scream “how dare you” to shame our banks into folding to local public pressure, which in reality amounts to a handful of misguided students with placards and Twitter accounts who wish to wag class.

Wouldn’t it be ironic if a housing collapse sent some of our heavily geared Aussie banks toward insolvency which could have been averted were they to have made a rational decision to lend to Adani, the very business they told us would kill them.

On a final note, how do we have banks disinterested in taking advantages where little competition exists? Isn’t that the holy grail of financial strategy?

The beauty behind Adani (and other projects like it) is simple. No need to embark in competitive intelligence to find out what their banking rivals are doing. Just listen to their public statements on what they aren’t doing and take the spoils. Higher margin and lower risk. It is not rocket science.

This can only end in tears

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As Sweden’s economy slows to the worst economic growth rate in 5 years under a negative interest rate policy, one would think the Swedish Central Bank (Riksbank) would be seeking to prudently manage its asset book on the basis of appropriate risk/reward as opposed to lecturing Australia and Canada on their respective carbon footprints. What we are witnessing is yet another discrete move by authorities to manipulate markets based on fantasy rather than fact.  The hypocrisy is extreme as we shall discover.

While the Riksbank should have complete freedom in how it wishes to deploy capital, we should view this is a pathetic sop to the cabal at the European Central Bank (ECB). Since when did central bankers become experts on climate change? The RBA is no better. Deputy Governor, Guy Debelle, gave a speech in March 2019 on the risks posed by climate change which based prophecies on the data accident-prone IPCC and Bureau of Meteorology. Why not seek balance? Easier to fold to group think so as not to be outed as a pariah. Utterly gutless. Our own APRA is also pushing this ridiculous agenda on climate change reporting. It is willful negligence.

While it is true that on a per capita basis, Australia and Canada’s emissions are higher than the global average, why doesn’t the Riksbank give us credit for lowering that amount 11.4% since 2000? Even Canada has reduced its carbon emissions by 7.3% over the last 18 years. Admittedly Sweden’s emissions per capita have fallen 21.9% according to the IEA. Greta will be happy.

Why hasn’t the Riksbank taken China or India to task for their 169.9% or 94.7% growth in CO2 emissions respectively? There are plenty of oil-producing nations – Qatar, UAE, Bahrain, Saudi Arabia and Oman that have worse per capita outcomes than Australia or Canada. Do these countries get special dispensation from the wrath of the Riksbank? Clearly.

The US has pulled out of the Paris Climate Accord. If the US has marginally lower emissions per capita (15.74t/CO2-e) than Australia (16.45t/CO2-e), isn’t a double standard to write,

The conditions for active climate consideration are slightly better in our work with the foreign exchange reserves. To ensure that the foreign exchange reserves fulfil their purpose, they need to consist of assets that can be rapidly converted to money even when the markets are not functioning properly. Our assessment is that the foreign exchange reserves best correspond to this need if they consist of 75 per cent US government bonds, 20 per cent German and 5 per cent British, Danish and Norwegian government bonds.

Essentially Riksbank commitment to climate change is conditional. The US which is responsible for 13.8% of global emissions can be 75% of holdings. Australia at 1.3% can’t. No doubt sacrificing Queensland Treasury Corp, WA Treasury Corp and Albertan bonds from a Riksbank balance sheet perspective will have little impact on the total. In short, it looks to be pure tokenism. The Riksbank has invested around 8% of its foreign exchange reserves in Australian and Canadian central and federal government bonds. So perhaps at the moment, it is nothing but substitution from state to federal. Why not punish NSW TCorp for being part of a state that has 85%+ coal-fired power generation?

At the very least the Riksbank admits its own hypocrisy.

The Riksbank needs to develop its work on how to take climate change into consideration in asset management. For instance, we need a broader and deeper analysis of the issuers’ climate footprint. At the same time, one must remember that the foreign exchange reserves are unavoidably dominated by US and German government bonds. The Riksbank’s contribution to a better development of the climate will, therefore, remain small. This is entirely natural. The important decisions on how climate change should be counteracted in Sweden are political and should be taken by the government and the Riksdag (parliament).

Still, what hope have we got when Benoît Cœuré, member of the Executive Board of the ECB, lecturing those on “Scaling up Green Finance: The Role of Central Banks.” He noted,

2018 has seen one of the hottest summers in Europe since weather records began. Increasing weather extremes, rising sea levels and the Arctic melting are now clearly visible consequences of human-induced warming. Climate change is not a theory. It is a fact.

Reading more of this report only confirms the commitment of the ECB to follow the UN’s lead and deliberately look to misallocate capital based on unfounded claims of falling crop yields and rising prices (the opposite is occurring) and rising hurricane and drought activity (claims that even the IPCC has admitted there is little or no evidence by climate change). Sweden is merely being a well-behaved schoolboy.

Cœuré made the explicit claim, “The ECB, together with other national central banks of the Eurosystem, is actively supporting the European Commission’s sustainable finance agenda.

CM thinks the biggest problem with this “agenda” is that it risks even further misallocation of capital within global markets already drowning in poorly directed investment. It isn’t hard to see what is going on here. It is nothing short of deliberate market manipulation by trying to increase the cost of funding to conventional energy using farcical concocted “climate risks” to regulate them out of existence.

Cœuré made this clear in his speech,

once markets and credit risk agencies price climate risks properly, the amount of collateralised borrowing counterparties can obtain from the ECB will be adjusted accordingly.

What do you know? On cue, Seeking Alpha notes,

Cutting €2bn of yearly investments, the European Union will stop funding oil, natural gas and coal projects at the end of 2021 as it aims to become the first climate-neutral continent.

All CM will say is best of luck with this decision. Just watch how this kneeling at the altar of the pagan god of climate change will completely ruin the EU economy. The long term ramifications are already being felt. The EU can’t escape the fact that 118mn of its citizens (up from 78m in 2007) are below the poverty line. That is 22% of the population. So why then does Cœuré mention, in spite of such alarming poverty, that taking actions (that will likely increase unemployment) will be helped by “migration [which] has contributed to dampening wage growth…in recent years, thereby further complicating our efforts to bring inflation back to levels closer to 2%.

Closer to home, the National Australia Bank (NAB) has joined in the groupthink by looking to phase out lending to thermal coal companies by 2035. The $760 million exposure will be cut in half by 2028. If climate change is such a huge issue why not look to end it ASAP? This is terrible governance.

Why not assess thermal coal companies on the merits of the industry’s future rather than have the acting-CEO Philip Chronican make a limp-wristed excuse that it is merely getting in line with the government commitment to Paris? If lending to thermal coal is good for shareholders in 2036, who cares what our emissions targets are (which continue to fall per capita)? Maybe this is industry and regulator working hand-in-hand?

The market has always been the best weighing mechanism for risk. Unfortunately, for the last two decades, global central bank policy has gone out of its way to prevent the market from clearing. Now it seems that the authorities are taking actions that look like collusion to bully the ratings agencies into marking down legitimate businesses that are being punished for heresy.

This will ironically only make them even better investments down the track when reality dawns, just as CM pointed out with anti-ESG stocks. Just expect the entry points to these stocks to be exceedingly cheap. Buy what the market hates. It looks as though the bureaucrats are set to make fossil fuel companies penny stocks.

NSW to lose State of Origin 4 (Adani)

Who’d a thunk? The Queensland Labor Government is fighting for its life. If it means trading principle for expediency, they have chosen the latter path. Even throwing on last-minute ‘infrastructure taxes’ couldn’t halt progress. Adani has been approved.

Labor has spent 8 years obstructing Adani Carmichael from going ahead. After the unlosable election result handed to its federal colleagues, Premier Annastacia Palaszczuk saw the light. Political suicide was at stake. It won’t stop the inevitable, especially post QLD Treasurer Jackie Trad’s deeper deficits announced this week.

What Greens Senator DiNatale fails to understand (despite saying every election hereon will be a #ClimateElection) is that Queenslanders couldn’t give a hoot for Victorians complaining about their wish to have jobs. The reality is that Adani Carmichael will likely be open for decades to come. It will employ those working at the mines and the local economies that support them.

What evidence has DiNatale got for thousands of jobs being destroyed? It is that level of economic comprehension that means they will remain such a joke as a credible party. Not least helped by the eloquence of NSW MLC Cate Faehrmann who thinks encouraging a blockade in a neighbouring state seems fair game.

There are only supposed to be three games in the State of Origin.  Faehrmann is guaranteed to lose her suggested matchup, much like former Senator Bob Brown’s convoy pre-election warm-up game concluded. Queensland will run rings around the NSW attack, as always!

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Al Gore awards Adani a badge of honour

Good to see Al Gore lay into Adani. Adani should wear it as a badge of honour given Gore’s track record of catastrophic failure with respect to his predictions. To show how out of touch he is, there is an irony that Adani, being an Indian entity, probably has more on-the-ground intel on plans for coal fired power. So luck is probably the last thing it needs.

India that has grown coal fired power gen from 61GW to 221GW. 4x in 18 years. While India might be diversifying the grid mix, coal isn’t on the way out as Gore hopes. 74% of India’s power gen is currently coal- fired. Plants don’t get closed over night. Expect a 40 year life minimum for a plant. Hazelwood was almost 50 when it was prematurely closed. Coal isn’t going away anytime soon.

A quick question, does anyone know whether Gore provides a disclosure statement as to which, if any, investments he has in the renewables field? It’s one thing to put one’s money where one’s mouth is but another not to disclose it when evangelizing.

Langer should tell selectors to keep Warner out

Just do it? There are two options. Aussie cricket coach Justin Langer knows a thing or two about opening batsmen. He was one of our best. Yes, if we want a better chance of winning sooner we could easily insert David Warner post his ban. However at 32 years and 64 days (154 days when the ban ends), isn’t there an argument to develop new talent for the long term? This is merely putting expedience ahead of principle.

We can argue that Warner will have served his punishment but does the team need to risk diluting its rebirth by reintroduction of a toxic force? Are we to believe Warner will return to the team as a reformed choirboy or play his hand at being the same ruffian who believes in his own mind he’s still a rightful veteran? Proof of the pudding was his trademark celebration after scoring a century in local grade cricket. He has changed not a jot.

Yes we lost the 3rd Test today but despite the woeful batting efforts in the 1st innings, Pat Cummins (who deserved man of the match) showed what grit means. 9 wickets and approaching 100 runs with the bat. We deserved to be flogged when bowled out for 151 runs but Cummins took out the top order including India’s highest scoring batters in the 1st innings for zero in the 2nd. He single handedly rallied his team to believe mentally it wasn’t over when they would have otherwise folded. He made Aussies proud.

Justin Langer has worked some miracles with the gutted side after taking the reins from Darren Lehman. Aussie team captain Tim Paine has also been impressive. Stephen Smith has none of Paine’s tenacity. Smith was made captain for being the best batsman in the world. Ability and leadership aren’t axiomatic. Smith’s weakness was evident. He allowed Warner to bully him into burying his judgement. It speaks volumes of why Smith should never captain again. His only real crime was to be a wimp.

It is also questionable whether Smith has the mental side to regain his top spot. He may well succumb to the pressure. He wouldn’t be the first gifted sports star to fall into a deep and prolonged slump post a scandal.

Warner can play 20 over big bash leagues (BBL, IPL) to earn his keep and feed his family but do we really want to send a message to kids that cheaters can prosper in our national side? His actions were disgraceful. Cheating is cheating and no rush of blood to the head is acceptable when earning millions let alone representing one’s country. It is a privilege to wear a baggy green, not a right.

CM would prefer to lose honorably than win with players who were only ever in it for themselves. Matches like today bear out how fighting as a “team” is so much more admirable. The taste of victory will be that much sweeter. No better opportunity to cast the net wide for sleeper talent who would probably have been overlooked otherwise. Make sure current players are kept on their toes to earn their spot.

It should be impressed upon incumbent players as a deterrent that cheating means life long bans. It would also be a stronger signal that the terrible governance of the farcical former Cricket Australia board is over.

Time to start afresh. Langer should take the option of keeping Warner out of the dressing room. It’s the only sensible choice.

Harley-Davidson to go into the Adventure category

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Actually credit where credit is due. Harley maybe very late to the party but realizes it must be bold to survive in the long run. Adventure (ADV) bikes (think of them as 2-wheeled SUVs)  are one of the most popular motorcycle segments now due to versatility but the competition is fierce and only getting moreso. Harley plans to launch a 1250cc ADV bike in 2020.

It is unlikely to cause segment leader BMW to quake in its boots with respect to its best seller GS series although the question is can the Harley brand can carry any sales at all? At the luxury end BMW, KTM, Ducati, Triumph, Moto Guzzi and Aprilia all have ADV bikes. BMW & KTM are the sales chart leaders. BMW for inventing the segment and KTM for strapping a 160hp nuke to its expertise in off road and 17 straight wins in the Paris-Dakar.

It is fast becoming a horsepower war. BMW is looking to launch a 145-150hp 1250cc next year for the GS from the 125hp 1170cc twin it currently has to keep up with the competition.

Without a spec sheet it is hard to tell much about the Harley ADV. It looks heavy. Weight matters. The BMW is around 240kg. The KTM 210kg. Will the Harley keep it under 260kg?

Horsepower is not a Harley strong suit. You won’t find power in a Harley spec sheet at the dealer. Will it use a clump of lazy torqued Milwaukee pig iron for an engine? In a low slung cruiser one can get away with it but in a tall ADV bike, when negotiating goat tracks (that’s a wide belly pan!), traction, power delivery and how a bike carries its weight is crucial. Can Harley produce over 120hp from this 1250cc engine with flexibility across the rev range? Will it be chain driven? Shaft? Belt? These things matter to the ADV snobs.

The design of the ADV Harley is certainly bold. CM likes it although if you drop it that headlight unit sure looks expensive to replace. Like many SUVs never see more off-road than a gravel driveway, the most dirt tracking Harley ADVs will see might be some road repairs on Route 66. The Pan America name certainly rings of highway biased use.

The next thing will be price. Even before (and after) we have full specs can Harley launch the bike at a competitive price? Harley can’t just rock up into a segment it’s never been active in and demand the type of premium it’s cruisers carry. It’s top of the line CVO series can be $50,000. BMW is considered the premium offering in ADV. Luxury Italian brand Ducati tried to price it slightly north and was caned in the sales race. KTMs are priced slightly cheaper but BMW remains king and having owned one know exactly why. The BMW is good at absolutely EVERYTHING.

Harley has history in new ventures. It broke the mold decades ago and took a stab at sports bikes with the Buell brand, but it was an abject failure. Porsche was called into help develop the V-Rod engine some 18 years ago but that is no longer sold.

Harley also aims to launch electric bikes, smaller 250-500cc categories for Asian markets and a mid range 500-1250cc for new sport type street fighters. All looks margin crushing from a distance.

From an investor perspective the accountants will require a lot of volume to justify the R&D expense. The shares closed toward the lows on the announcement.

Without getting too Harvard MBA, Harley feels extension of product is vital. To a degree it is right. Unfortunately graveyards for such strategies are too commonplace. Few get it right. Buell was case in point. BMWs K1600 Bagger will flop because it was an excuse trying to find a home for its 1600cc 6-cylinder regardless of capabilities. Customers see through this.

Harley’s ADV will have distribution channels as it’s biggest weapon. It will have a hard time converting ADV faithful unless it offers something truly better at a competitive price. Otherwise it will gather dust on showroom floors.

Personally this ADV will probably do better than most think. It won’t get close to toppling the Beemer but there are enough quirky people out there who want to be different. Nice job Harley but can it turn groups profitably around? The last 5 years have been a disaster. The question is all this product arrives at a time when the economy is likely to turn south.

Japan’s Defense White Paper 2017 – Chinese military jet incursions up 30-fold in 10 years

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Should Japan just close its eyes? The Japanese Air Self Defense Force (JASDF) has had to scramble jets almost 3x a day to intercept Chinese PLAAN aircraft flirting with Japan’s sovereign borders according to the 2017 Defense White Paper. Since 2007, the JSADF has seen an almost 30-fold jump in activity. With respect to the disputed Senkaku Islands, the PLAAN and PLAAF have been operating drones “inside” Japanese sovereign territory. While Japan can take some comfort with the US Forces stationed throughout the country, China’s increasing belligerence in the region is obvious.

With respect to China, the JMoD wrote,

China is believed to be making efforts to strengthen its asymmetrical military capabilities to prevent military activities by other countries in the region, denying access and deployment of foreign militaries to its surrounding areas (“Anti-Access/Area-Denial” [“A2/AD”] capabilities), and recently, pursuing large-scale military reforms designed to build its joint operations structure with actual combat in mind. In addition, China is rapidly expanding and intensifying its activities both in quality and quantity in the maritime and aerial domains in the region, including in the East and South China Seas.

In particular, China has continued to take assertive actions with regard to issues of conflicts of interest in the maritime domain, as exemplified by its attempts to change the status quo by coercion, and has signaled its position to realize its unilateral assertions without making any compromises. As for the seas and airspace around Japan, Chinese government ships have routinely and repeatedly intruded into Japan’s territorial waters, and China has engaged in dangerous activities that could cause unintended consequences, such as its naval vessel’s direction of fire control radar at a Japan Maritime Self-Defense Force (MSDF) destroyer, the flight of fighters abnormally close to SDF aircraft, and its announcement of establishing the “East China Sea Air Defense Identification Zone (ADIZ)” based on its own assertion, thereby infringing the freedom of overflight.

In the South China Sea, China has continued to take unilateral actions that change the status quo and heighten tension, including large-scale and rapid reclamation of multiple features, establishment of outposts there, and their use for military purposes, based on China’s unique assertions which are incompatible with the existing international order, and has made steady efforts to create a fait accompli. In addition, a Chinese fighter is alleged to have flown abnormally close to and conducted an intercept of a U.S. Forces aircraft. These Chinese activities represent serious security concerns of the region encompassing Japan, and of the international community.

For this reason, China is urged to further increase transparency regarding its military and enhance its compliance with international norms. It is a key task to further strengthen mutual understanding and trust by promoting dialogue and exchanges with China, and make further progress on measures to build trust, such as measures to avoid and prevent unintended consequences in the maritime domain.”

Sadly Japan is unlikely to get the answers it wants to hear. So as trivial as submitting to Chinese pressure to change an in flight magazine map might seem to many, the bigger picture is what is happening on the security front. As Churchill once said, “you cannot reason with a tiger when your head is in its mouth!

 

Air India seconds from disaster?

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Typical to see the press try to link the tragic accident caused by engine failure on a Southwest flight and a poorly fitted window frame on an Air India 787. The press once again went for clickbait talking about “smashed window…three rushed to hospital” instead of trying to search fact that this was a cosmetic folly and nothing more.

The main difference was in the Southwest accident, engine parts flying at 3,000rpm punctured the EXTERIOR window causing rapid decompression. In Air India’s case a poorly mounted interior window which has the functions of sound deadening and aesthetics popped out of a mount which would cause zero risk of compromising the plane’s structural integrity. If you look at the picture the oxygen masks haven’t deployed which would occur automatically if it did.

The sad truth of the Southwest uncontained failure is that the engine casing is supposed to catch any debris that breaks off. Such metal fatigue is more likely on such aircraft types (737) is that the short haul nature puts more stress on components. Such aircraft make more than half a dozen cycles (takeoff/landing) a day meaning wear and tear is higher. Tyres make a good reference- a 737 gets new tyres on average every 20 days. A long haul aircraft despite being heavier gets tyres every 40-60 days.

So typical press phooey to connect two completely unrelated accidents.

Two of the worst possible combinations one can think of

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From LivingOffset – “Global concern about climate change is growing rapidly. Five out of every 10 people now consider climate change to be a serious problem. In Chile and Peru the number is over 75%. Interestingly, 69% of Americans are concerned about global warming [if you believe HuffPost], despite their government’s position. There is no doubt demand for our offering is there, and like Airbnb, we can provide the means and the mechanism for easy participation. In just a few minutes ordinary people can start to make a real and meaningful difference.

In January 2017, IPSOS held a global poll asking what each country’s major problem was and climate change didn’t feature a mention.

As Europe and the US brave record snowfalls one couldn’t think of two more terrible combinations – a crypto-currency and a climate abatement cause. Apart from the fact that the prospectus cites Wikipedia to support its stats, it ignores the growing number of scientists admitting that climate change is little more than a multi trillion dollar rent seeking industry. As we’ve seen in recent years, many scientists and government bodies have been caught red handed with their hand in the till. Data has been manipulated to get a result. NOAA was subpoenaed by US Congress for fiddling the data ahead of the Paris Climate Accord. Australia’s Bureau of Meteorology has also been caught misrepresenting temperature records. The IPCC has made more climb downs from unchecked positions than one can count. It is the epitome of double standards given 50,000 pilgrims fly half way around the world to kneel at the altar of the COP climate change summits, belching so much of that dangerous CO2 we are warned about.

Even the language has changed – from global warming to climate change to climate disruption. All bases covered.

The one question that the alarmists can never answer – if the science is so settled, why do scientists feel so compelled to lie and corrupt data? Surely the data speaks for itself because it is so compelling on a stand alone basis. No need to brazenly commit data fraud. While many alarmists are happy to see evil banksters get hauled off to jail, have we seen any scientists face prison time for misleading the allocation of billions in taxpayer funds? Imagine if that was introduced? How quickly climate disruption would go away.

Apart from the completely bogus stats on ‘69% of Americans being concerned by global warming, SUV sales remain a solid staple in the US. In fact the most popular car in America is the Ford F-150 pick-up truck where customers rank ‘fuel economy’ #28 in terms of reasons they buy it. When Trump quit the Paris Accord, Rasmussen showed that most polled were for his move because sticking to teh deal just increased their cost burden. Wallets matter more than virtue signalling.

Let’s check reality of the climate game. 75% of the evil gas that helps plants grow are caused by 4 countries – America, China, India and Russia. Let’s tackle them one by one.

America. Well the commitment to the Accord was so flimsy to begin with, It was laced with out clauses such as being exempt from being sued for any environmental damage caused in the past or future. Obama decided to tick the box himself after lawyers breathed on the fine print – remember the US was the last to commit.

China. China, China, China. The commitment is so robust they don’t have any intention to get serious until 2030 (likely peak emissions). China has explicitly said it will raise the coal share of power to 15% by 2020 from 12% and this will keep climbing. China’s pollution problems have stuff all to do with global warming but public health however it can virtue signal under the banner of climate change mitigation and win brownie points.

India. The construction of 65 gigawatts worth of coal-burning generation is under way with an additional 178 gigawatts in the planning stages in India will mean they’ll not achieve Paris targets.

Russia’s commitment at Paris would have been more serious if drafted on a hotel napkin such was its lack of substance. 4 pages of nothing.

LivingOffset makes some grandiose claims of 128% returns by 2022 but put in its disclaimer,

There can be no assurance that LivingOffset’s investment objective will be achieved and investment results may vary substantially over time. Investment in LivingOffset is not intended to be a complete investment program for any investor. Prospective participants should carefully consider whether an investment is suitable for them in light of their circumstances and nancial resources.

Carbon offsets are a joke. In Australia, people can elect to have their electricity sourced from renewables only (by paying a premium) yet less than 3% choose to do so. Qantas offered carbon offsets when flying but the take up has been insignificant. Carbon offset calculators are so woefully inaccurate that the price paid to virtue signal can be drastically affected by load factors, aircraft type, head/tailwinds and delays to land.

In any event there are 190 odd currencies in the world and over 1,000 crypto currencies. Apart from the unregulated nature of these electronic coins, we’ve already seen how vulnerable ‘blockchain technology’ is and how easy it is to be hacked. Crypto is backed by greed. Recently a person was emptied of all their crypto at phone point. Once the transaction has been completed the ‘money’ is gone. So no need to break into a bank. Just rob you from your smartphone.

While the crypto currency trend continues, await harder nosed regulations, taxation and  restrictions that take the lustre off these coins. LivingOffset looks a very risky investment.  To some up LivingOffset – it is like asking someone else to quit smoking on your behalf. How do you benefit health wise?

Then again actions always speak louder than words. Aircraft travel is set double by 2035 according to IATA. Last time I looked, aircraft run on fossil fuels. Once again, peoples’s consumption habits are the best indicator of commitment to climate abatement.