Hi De Hi. Jumpity Jump and all that silly stuff. Yes the world is sick and full of Corona.No not the beer. The virus. Yes just as I said would have to happen, a world wide depression is what is needed to sort out all this ridiculous environmental crap being forced on the worlds Agricultural producers. What I did not recognize, the trigger would be a virus that would be the cause of a financial melt down. World financial markets plunging up to 40% in a few hrs. Mind you would hardly notice unless you looked at your Kiwi saver. Not that I have one. And yes I pulled my money out of the market well before the crash. Whilst I took plenty from my wife and financial advisor, I am now able to pump out my chest and strut abit. My wife is silent ,but I got a pat on the back from the other chap. But lets look at what has happened to the price of carbon in Europe. IT was valued at $44 Euro a month or so ago. Now $14Euro. Yes $14. Europe one of the most indebted in the world. That should give you a idea of what is to come. Economic activity has nearly stopped. Want more proof. Steel production in China, particularly that used in the construction business has hit the wall and huge stock piles of steel products used in the afore mentioned have built up. China is the number one exporter of such steel, and buys in, in excess of 50% of the worlds mined materials . This is not a flash in the pan happening ,it has been building for awhile. China also exports a hell of a lot of other consumer goods to the world, thus one could express the opinion that the flow on effect is only just starting. Many country’s are now into printing money hard out calling it financial stimulus, and NZ is not immune. Most trying to prevent large scale job losses as business’s big and small go under , followed by plunging asset values. But the carbon market keeps on pumping? No. it will not. NZ can not afford it. All this treaty stuff will have to go by the buy? I note that carbon farmers are still buying good farms ,yes good farms ,ie farms that are within defined treaty claim areas. Yes Still are. Of course the Ministers and the carbon farmers will say it is poor land with a low productive value. You must also ask just how much the NZ Govt pumped into our carbon market to keep such a value crash as in Europe from happening here.. Remember the Zero Carbon Act provides for. Our market fell approx. 25 % $29-$22. More to come? I think so. For all the above reasons. No wonder the Australians have capped there’s at $15. Remember that is costing their average working class, blue collar worker 8% of their take home pay. It is all here in previous blog.
This situation now has exposed the naivety, the stupidity, or the down right criminal intent of current and previous Govts here in NZ. It was only 3 months ago the current administration and their lackeys’ were telling us that investors and customers are expecting businesses to focus on sustainability and understand the social license to operate and what it means to be a steward of nature. If your business has a environmental impact, you need to take steps to reduce and off set. NZ sure has recognized where our emissions are coming from. NZ,s carbon foot print has plummeted. certainly has ,and well below what is required to see us right for decades to come. (My View). Yes people have to stay at home. Particularly in our large cities and water quality is on the improve.
The Hound, Rural news tells it as it is in March the 10ths paper, pg 25. Green Peace still into it with their farmer hating activists standing for the Green Party in the up coming election. And that the politicians and mad cap policy makers hell bent on turning the country into one big pine plantation in a “Mad Cap “effort to reduce NZ,s 0.17% contribution to climate change? should take alook at what is happening to log exports to China. He also spots the crap from Damián O,Conner who recently took the Banks to task over their attitude to farmers, pointing out that Govt regulation and proposed regulation is adding cost to farmers business’s, thus sending them to the banks to comply. He points out O’Connor should be looking in the mirror. And of course Fish and Game. All you urbanites. Save the planet. STAY at home. But please do not flush the toilet. Dig along drop. Alan Emmerson also has the above sussed. Pg 26 Farmers Weekly Jan 13th 2020. The Emmerson award for hypocrisy. Some one should tell David Parker that more people swim in the sea than in rivers yet he wants swimmable rivers and ignores polluted beaches.
Think I am all doom and gloom? I found this really grt article in the Farmers Weekly Jan 13th pg 18 Scientists paint carbon picture. more carbon is stored below ground than in the combined amount in in plants and the atmosphere. Yes for real. Scientists from Waikato, Palmerston North and Lincoln will be investigating how to increase. Pretty simple to me. Run more live stock. Of course the vegans might not be happy, as I am pretty sure constant tillage for veggies and cereals is not good for such stocks. But never mind ,such a study ,should it be beneficial for pastoral Agriculture, will be a major for the industry, and the NZ economy.. But of course subjectivity could be the big player.
This weeks Agricultural media and the TV news and current affairs programmes are all for NZ,s farmers pointing out they are the ones that will pull NZ through the current grt world wide depression. People still have to eat. Agriculture the “Rock ” of the NZ economy. Plenty more, including telling Govt and it policy makers to get off farmers backs. Some how I think it will only a short term reprieve.
Whilst the world may exit such a recession in better shape financially here in NZ it also needs a major over hall of the political party’s we have governing us. A fresh face rid of the negative policies and people driving the agenda and the outcome they desire. And including, either voters have to recognize how MMP works and vote accordingly or it has to go.
Until next time.