Category Archives: Sundries

Posts on sundry matters of life the universe and everything: Culture, Environment, Life, Politics & Government, Science, Social Science and Society, Technology etc.

Will Abbott survive Medicare?

Before the recent backflip on plans to cut the rebate for short GP visits by $20 Tim Woodruff made a comment on the plans. There were three parts to the proposed changes:

The first is a direct cut of $5 to the Medicare rebate for everyone except pensioners and health care card holders. The ALP, Greens, and some crossbenchers have indicated they disagree with this so it may never happen as it must pass the Senate.

The second is to freeze the rebate until 2018 which means that because of inflation, this will amount to a $3 cut to the rebate for everyone by 2018. This can’t be stopped as it doesn’t require parliamentary approval.

The third part of the proposal, however, is to reduce by $20 rebates for visits less than 10 minutes in duration. The Government claims that this is intended to reduce “6 minute medicine”…

Only the third of these has been abandoned.

There are two points to be made about this.

First, the Government’s aims have not changed. They want the poor to go to the doctor less to ‘save’ Medicare, or as Woodruff suggests to institute a two-tiered medical system.

The Federal Government wants a two-tiered health system where credit cards decide what level of care one receives. This is the American way. The next proposal may be to replace our flag with the Stars and Stripes.

Secondly, the politics is just awful. As Norman Abjorensen points out, new minister Sussan Ley was sent out to dump proposals that Abbott had robustly defended not 24 hours earlier.

Was Abbott rolled? What does Julie Bishop think? Why did they get themselves into this mess in the first place? Clearly they didn’t sound out the senate cross bench.

Abjorensen says the question now is not whether Medicare will survive Abbott, but whether Abbott will survive Medicare. No wonder he looks worried:

5439940-3x2-340x227

Photographers can be cruel!

Tim Woodruff is currently the vice-president of the Doctors Reform Society and a specialist physician working in private rheumatology practice in Melbourne.

Saturday salon 17/1

voltaire_230

An open thread where, at your leisure, you can discuss anything you like, well, within reason and the Comments Policy. Include here news and views, plus any notable personal experiences from the week and the weekend.

For climate topics please use the most recent Climate clippings.

The gentleman in the image is Voltaire, who for a time graced the court of Frederick II of Prussia, known as Frederick the Great. King Fred loved to talk about the universe and everything at the end of a day’s work. He also used the salons of Berlin to get feedback in the development of public policy.

Fred would only talk in French; he regarded German as barbaric. Here we’ll use English.

The thread will be a stoush-free zone. The Comments Policy says:

The aim [of this site] is to provide a venue for people to contribute and to engage in a civil and respectful manner.

Here are a few bits and pieces that came to my attention last week.

1. Australia’s internet speeds have slumped to 44th in the world

The State of the Internet Report from cloud service provider Akamai ranks Australia 44th for average connection speed.

One of the reasons why we’re falling down the list is that we’re moving towards utilising a copper based access network. Whereas previously, under the Labor government, we were moving towards an all fibre-based network, which is what most of our competitors are now doing. And we’re also seeing this drop because, as we keep changing direction with the NBN, we’re putting in large delays before the roll-out is actually occurring.

NetFlix which is meant to be coming online towards the end of March may not be able to be accessed everywhere and will be of poorer quality than in other countries. Many of our competitors are looking at gigabit broadband download speeds. Thanks to the Abbott government we’ll be in the Dark Ages.

2. Morgan poll

The Morgan poll ploughs on over the festive season. On LNP leadership:

Former Liberal Party Leader Malcolm Turnbull is preferred as Liberal Leader by 36% of electors (down 2% since September 30-October 2, 2014) but still well ahead of Deputy Leader Julie Bishop (26%, up 10%) and Prime Minister Tony Abbott (14%, down 5%). Bishop is now ahead of Abbott for the first time as preferred Liberal Leader. No other candidate has more than 4% support.

However, L-NP voters just narrowly prefer Prime Minister Tony Abbott (30%, down 11%) as Liberal Party Leader ahead of Deputy Leader Julie Bishop (28%, up 11%) and Malcolm Turnbull (26%, up 2%). Treasurer Joe Hockey has lost significant support and is now at only 4% (down 4%).

Hockey seems to have evaporated after announcing that poor people don’t drive cars. Meanwhile Bishop is surging.

3. MYEFO disappears

Speaking of Joe Hockey, the Mid-Year Economic and Fiscal Outlook, coinciding with the Sydney siege, has disappeared from view. John Quiggin has a neat summary of why it undercuts the LNP policy narrative:

Key elements of that narrative are:

* Debt and deficits are always bad, are now at catastrophic levels and are the product of Labor profligacy
* More labour market reform is needed to prevent a wages explosion resulting in higher unemployment
* The mining sector is the key to Australian prosperity and was unfairly burdened by the carbon and mineral resource rent taxes

Debt and deficits are growing as a result of weaker revenue, exactly as happened under Labor, and in any case do not constitute a serious problem.

As regards wages, not only does MYEFO note that wage growth (low and stable for many years) has been weaker than ever, this is noted as one of the main factors leading to the decline in revenue growth.

The mining industry was never a large employer and is now shedding jobs rapidly.

The good side of this is that the overvaluation of the $A driven by the mining boom is finally fading, with the result that the net impact of the end of the boom is forecast to be quite small. We have much more to fear from a renewed global financial crisis than from a decline in mineral prices.

4. The old guard still controls the grand slam court

Greg Jericho turns his analytical mind to tennis, well male tennis, suggesting that the old guard are still in control and don’t write Federer off – Jimmy Connors played until he was 39 and Andre Agassi until he was 36. Federer is only 33. He didn’t mention Ken “Muscles” Rosewall, who won his last tournament at the age of 43.

I’ve always thought that most grand slams are won by people in the age bracket 24-28. Jericho suggests 27 as the age beyond which winning becomes tough. Novak Djokovic and Andy Murray are 27, Nadal is 28. They are not true contemporaries of Federer.

I have no idea who is going to win, but I think it’s a bridge too far to expect Federer to win seven best-of-five matches in a row.

But Sarina Williams at age 33, you wouldn’t bet against her! Of course she only plays the best of three, but that’s another story!

I do think Djokovic, Nadal and Federer are a cut above the rest, with Andrew Murray also in the mix. They may stay in charge for another year or two.

Awkward questions about the Sydney siege

While we await an internal police review and coroner’s inquiry into the siege of the Lindt Café by gunman Man Haron Monis last month evidence has been seeping into the press and questions are being raised about police tactics and what happened. Earlier media reports are reflected in the Wikipedia entry:

It was reported that hostage Tori Johnson’s attempt to wrest the gun from Monis may have triggered the police response.[41] However, a survivor told his family that the shot that prompted the police response was a warning shot fired when the hostages kicked down a door in an attempt to escape. Video evidence appears to show that Johnson was shot by Monis after police stormed the café. Police said they would not be commenting until the investigation was over.[42]

Hostage Katrina Dawson was killed by a police bullet, probably a ricochet,[43][40] although initially a police spokesman reported that she died of a heart attack on the way to hospital.[44]

Last Saturday Nick Ralston in the SMH advised that “multiple police sources have told Fairfax Media that Ms Dawson, 38, was struck by police fire that was not a direct shot and possibly a ricochet, when they stormed the cafe…” (emphasis added).

On Monday Rick Feneley reported that there was division over police tactics.

Early in the piece police devised a direct action plan to storm the building and take Monis by surprise. The suggestion is that this was countermanded, with such action to be reactive only.

Despite the risks, the advantage of a direct action plan is that police seize control and decide the time rather than react in split seconds to the gunman’s action.

Fairfax Media has learned there is some anger among police at the front line of the siege about the decision not to proceed with the direct action plan.

Also:

Police rejected the offers of many in the Muslim community to help them negotiate with the gunman. It is understood they would be loath to allow third parties, with no experience in hostage negotiations, to talk to a gunman – because they may be unable to control what they say or how the hostage taker might react.

Among those to offer their services were the Grand Mufti of Australia, Dr Ibrahim Abu Mohammad, but he was not called in – neither to help negotiate nor to advise police.

Feneley further reports that the police had little or no contact with Monis – “in fact we’re not dealing directly with him” and “At this stage we do not have direct contact with the offender.”

Guy Rundle at Crikey takes up these and other issues.

Rundle is concerned that the apparent lack of effort to communicate with Monis may have stemmed from his self-proclaimed status as an IS representative. Police may have taken a “we don’t negotiate with terrorists” attitude, in effect militarising the situation.

Were any professional hostage negotiators even summoned? How many of these do Australian police forces have, and how good is their training? Are there clear protocols for hostage situations in place and do they categorise purportedly political events differently to “civil” situations? Do they differentiate between rational, purposeful violent political acts, and disorganised and confused political or pseudo-political acts and actors?

Why were the offers from Muslim community leaders to speak to Monis rejected, when it is a common practice to use in that way figures whom a hostage-taker might respect? Did police distrust the bona fides of Australian Muslims, believing their loyalties would be to Muslims, including Monis, rather than to the wider community?

Rundle also asks whether there was any political interference in the operation, formal or informal.

Finally:

Political opportunists tried to enrol Johnson as a “hero” who had tried to grab Monis’ gun, and died for it. He may simply have been executed — and that may have occurred because of compromised or incompetent police procedure. That Dawson died laying her body over that of a pregnant fellow hostage appears established. That she died from a police bullet does not alter that. But if it resulted from needlessly compromised procedure, then the police are partly culpable for a needless death. To turn anyone killed into a “hero” is a denial of the possibility of victimhood, of innocence, and thus of unconditional worth of any human being. To do so on the basis of clearly false information is an act of disdain. To use it as a means by which future such crises will be shaped and distorted, is actively evil. The unscrupulous love to wrap themselves in a flag whatever the event. They’re happy to use it as a shroud for any number of us, if that’s what it takes.

As you can see Rundle really bores in, but he is demanding that the facts be established by meticulous examination of the details of the last minutes before wider meaning is assigned to events.

Our earlier post on the siege is here.

LNP to win with a small majority

You won’t get a better photo than this during the election campaign!

Newman_10917454_10155103591410613_3879205671262139641_n

Dr Kevin Bonham looks at the recent polls and gives the Queensland election to the LNP 47 to 37, with 5 others.

He has the LNP on 41.4, the ALP 37.9, the Greens 7, PUP on 4.6, and Others 9. In two-party-preferred terms he has the LNP on 51.8.

The puff seems to have gone out of PUP, but The Greens are also not doing well.

There’s no single seat polling, but on this basis Newman would lose Ashgrove.

Mark will be writing a few articles during the election. He wrote this one for The Monthly. It’s an excellent read. He says it doesn’t really matter precisely why Queenslanders are facing a snap election.

We may be as ignorant as the several senior ministers who were relaxing on holidays when the premier’s office leaked the news of the impending campaign to the Courier-Mail. What we can infer is that far from the orderly progress towards a triumphant second term, the Queensland conservatives fear defeat.

In part, it’s a tribute to ALP leader Annastacia Palaszczuk and her (now) eight parliamentary Labor colleagues, who have refocused the shattered ALP, and held the government to account despite the very limited opportunities available to an Opposition in both a unicameral parliament and a state with a one-paper town as its capital.

But, even more so, it’s a commentary on how hard it is for right-wing parties to govern in Australia – or anywhere – in the mid 2010s. It’s hard for left-wing parties to govern, too, but that’s another story.

The LNP won in 2012 largely because it wasn’t Labor and promised an “adult”, “no surprises” approach. In policy terms it was a small target strategy.

Holding an electoral coalition together in government, and governing cohesively and in the public interest, rather than throwing raw steak to the dogs of the “base” and the conservatariat, though: that’s a different, and more difficult game.

Campbell Newman won, not by projecting an ideological face, but the exact opposite. Yet he leads a government that seems obsessed with humiliating its enemies, with starting fights, with indulging in flights of fancy, such as removing the requirement for water fluoridation and dressing imprisoned bikies in pink jumpsuits. The government disdained both evidence and consultation as it careered from crisis to crisis, and from absurdity to absurdity. Unemployment has surged, jobs have disappeared, and the economy tastes increasingly sour.

This week it looks as though we are going to get some policies. Labor is going to reduce the ministry from 19 to 14 to save $27 million.

The LNP has announced plans to support apprenticeship training to the tune of $91 million.

Saturday salon 10/1

voltaire_230

An open thread where, at your leisure, you can discuss anything you like, well, within reason and the Comments Policy. Include here news and views, plus any notable personal experiences from the week and the weekend.

For climate topics please use the most recent Climate clippings.

The gentleman in the image is Voltaire, who for a time graced the court of Frederick II of Prussia, known as Frederick the Great. King Fred loved to talk about the universe and everything at the end of a day’s work. He also used the salons of Berlin to get feedback in the development of public policy.

Fred would only talk in French; he regarded German as barbaric. Here we’ll use English.

The thread will be a stoush-free zone. The Comments Policy says:

The aim [of this site] is to provide a venue for people to contribute and to engage in a civil and respectful manner.

Here are a few bits and pieces that came to my attention last week.

1. Somewhat distracted

For one reason or another I’ve been more than usually separated from my computer lately.

Last night I had to go to bed early so that I could drive down to Coolangatta airport to pick up Mark and his partner. They finally made it back from Surat Thani in Thailand after they decided they didn’t want to get on their booked flight with Asia Airlines after the plane hit the drink during a storm. Dealing with travel agents who would sell you a train ticket to somewhere even though you knew the line was cut by floods was not fun.

My sister and brother-in-law are also down from the country. Unfortunately it’s not a social visit, rather accessing medical facilities only available in the big smoke.

Then we’ve had about average rain for this time of the year, so the grass is as high as the elephant’s eye on some of the properties where I work. Well almost.

meanwhile there’s nothing but cricket on the radio, which I don’t half mind, and repeats of QI for the umpteenth time on the TV, which I do!

So apart from terrorist action in France and the Queensland election I haven’t been aware of too much that’s topical.

2. Charlie Hebdo attack

Speaking of which, the BBC has a detailed outline of what happened. They end up with the brothers Said and Cherif Kouachi holed up in a printing firm called Creation Tendance Decouverte on an industrial estate on the outskirts of at Dammartin-en-Goele, 35km (22 miles) from Paris. Apparently a hostage is involved.

Also from The Telegraph:

A second hostage situation was underway in France on Friday as a gunman linked to the killing of a policewoman a day earlier took five hostages at a grocery in eastern Paris.

Shooting was heard and one person reported wounded at the kosher grocery in the eastern suburb of Porte de Vincennes early on Friday afternoon.

Also from The Telegraph:

The man suspected of killing a policewoman in a southern suburb of Paris on Thursday before fleeing the scene was a member of the same jihadist group as the two suspects in the attack at weekly newspaper Charlie Hebdo, a police source told Reuters.

The Economist reflects on the underlying issues.

Brisbane Times has a running commentary.

3. Smoke taint in wine

The Australian Financial Review ran an article on the problem of smoke taint in wine grapes from bushfires and burning off. Smoke impregnates the skin which affects the taste of the wine in fermentation.

Tasters commonly liken the resulting wine to an ashtray, burnt rubber and hospital disinfectant.

It can ruin a whole harvest.

This article from last year talks about research but the Fin Review article says that the Abbott government has no funds for such trivial stuff and a modest grant from the Victorian government runs out in 2015.

4. When too much sport is barely enough

Ange Postecoglou’s record with the Australian soccer team is about 2 wins out of 11, from memory. He’s tried out about 50 different players. It may be a sign that he’s finally got it right, but the 4-1 win over Kuwait is a welcome surprise.

Emotional style: the concept

When I looked up the word “emotion” in my Australian Oxford Dictionary the explanation referred to strong feelings. The word “feeling” has several meanings, but the relevant one gave an explanation in terms of emotions. So we all know what it means, right? In our binary habits of thinking we know that it is pretty much the opposite of reason, that emotions disrupt rational thought, that reasoning takes place in the pre-frontal and cerebral cortex while emotion bursts forth from the limbic system and the hypothalamus.

Wrong, says brain researcher Richard Davidson, who with help from science writer Sharon Begley has written a book The emotional life of your brain.

Saturday salon 3/1

voltaire_230

An open thread where, at your leisure, you can discuss anything you like, well, within reason and the Comments Policy. Include here news and views, plus any notable personal experiences from the week and the weekend.

For climate topics please use the most recent Climate clippings.

The gentleman in the image is Voltaire, who for a time graced the court of Frederick II of Prussia, known as Frederick the Great. King Fred loved to talk about the universe and everything at the end of a day’s work. He also used the salons of Berlin to get feedback in the development of public policy.

Fred would only talk in French; he regarded German as barbaric. Here we’ll use English.

The thread will be a stoush-free zone. The Comments Policy says:

The aim [of this site] is to provide a venue for people to contribute and to engage in a civil and respectful manner.

Here are a few bits and pieces that came to my attention last week.

1. Changing skivvies on the Wiggles

Tim Dunlop has done a great piece on the reshuffle. He reckons it’s

like changing who wears which colour skivvy in the Wiggles: it doesn’t make any difference, and they all end up singing the same old tunes.

Tony Abbott is still the Prime Minister. Joe Hockey is still the Treasurer. They are still committed to their budget and its underlying philosophy of market liberalism and a wholesale attack on the pillars of the welfare state.

Let’s focus on that, not which Wiggle is wearing which skivvy.

Dunlop’s big idea, though is that “both major parties have drained the office of prime minister of authority by converging on an economic program that subsumes economic sovereignty into the vagaries of a globalised economy.” Hence:

The office of prime minister is thus less about leading the country than about managing the electorate’s disappointments within that system, and Mr Abbott inherited an electorate hip to the tricks of a political class who have been selling us moonshine – privatisation, deregulation and the rest of it – for the best part of four decades now.

Given that structural issue, though, Abbott has brought his own particular brand of stupid to the role, says Dunlop.

2. 2015 will be basically grim

Mungo MacCallum looks at the political/policy prospects for 2015, and doesn’t like what he sees.

What seems inevitable is that 2015 is unlikely to be any better than 2014: basically grim. The only real question is just who ends up bearing the cost. It may be Abbott himself and it may be the government as a whole. But one way or another we are all going to cop at least a bit of collateral damage.

It all depends on the next budget. If it is verse 2 of the last budget then Abbott is in trouble. He needs a fix “which is dramatic, equitable and above all plausible.” Problem is he won’t shirtfront the rich and powerful. So the rest of us cop it, while being encouraged to spend like blazes to save the economy from recession. Before Christmas they announced cuts in the area of the homeless. Morrison reckons he needs to make welfare sustainable by cutting the bejesus out of it.

So the result is confusion, and pain.

3. Child shoots mum in Idaho Walmart

This has already been linked to elsewhere by Geoff Genderson and zoot, but in case you missed it, a two year-old child has shot and killed his mum in an Idaho Walmart. The boy unzippered her purse, a Christmas gift from her husband with a special pocket to conceal the weapon.

4. Carmichael mine to go ahead

Those hoping that falling coal prices will put an end to the development of the Galilee Basin mega-mine Carmichael will be disappointed.

Sydney-based engineering firm Downer EDI announced late last month it had received two Letters of Award from Adani to build and operate the Carmichael mine.

“The contracts are expected to have a combined value in excess of $2 billion over seven years,” Downer EDI said in a statement.

Adani expects to start building the rail line within the next few months despite not having a mining lease.

Adani reckon that cash costs would fall below $US50 a tonne, making Carmichael one of the cheapest mines in the world.

The mine has:

attracted a conditional debt funding of $1 billion from the State Bank of India and a promise of equity funding of up to $300 million from the Queensland Government for the rail line to Abbot Point.

Adani has also recently attracted an equity partner, POSCO, a Korean company that will build its railway and port as well as hold a stake in the infrastructure.

5. Civil society – more activity, less effect

Michael Edwards is pessimistic about the effect of civil society organisations. The numbers of organisations is impressive and continues to grow, but he thinks civil society organisations are becoming less effective. Problems include co-option, the corporatisation of civil society groups themselves and a lack of carry-through to the structures of power and influence in society.

Some progress is being made around the edges of poverty and injustice.

But there’s no sign that the underlying structures of social, political and economic violence and oppression are being shaken to their roots.

As a result, fewer people in the world are dying young, and basic indicators of health and education, income and employment are getting slightly better – at least for most people in most countries. However, economic inequality is rising, democracies are being hollowed out, climate change is worsening, and discrimination based on race, gender, ability and sexual orientation remains endemic.

Participation in voting and labour unions is falling. Social media and professional advocacy groups have strong messages, but less purchase where it counts.

Sorry!

Sorry about the gloomy line-up above. Maybe I should just pull a blanket over my head and wait the year out!

I did hear today on our ABC a riveting discussion about whether the meat pie typified the Australian cuisine!

Charting the progress of Sapiens

Vivek Menezes puts the question:

    In 1974, a grey-haired indigenous leader of Papua New Guinea asked a visiting American ornithologist something like, “How come you people dominate the world, while we have so little?”

Jared Diamond has been answering that question ever since. Israeli historian Yuval Noah Harari has moved into the space opened up by Diamond, essentially asking why a seemingly inconsequential ape that divided from chimpanzees some six million years ago ended up with a species of Homo, namely Sapiens, which has come to dominate the planet. Harari’s book Sapiens: A Brief History Of Humankind concentrates on the last 70,000 years, which as Galen Strawson points out, is more than enough for a mere 400 pages. Continue reading Charting the progress of Sapiens

Friedman’s top five events of 2014

In a season of lists, George Friedman, Chairman of the global intelligence company Stratfor, has made a list of his top five events for 2104.

1: Europe’s Persistent Decline

    The single most important event in 2014 was one that did not occur: Europe did not solve its longstanding economic, political and social problems.

Europe, taken together, remains the world’s largest economy and a centre of global commerce, science and culture. It’s inability to solve its problems or make any significant progress has the potential to disrupt the world system. There is general economic malaise and huge unemployment in the south. Continue reading Friedman’s top five events of 2014

The price of oil

Recently John Quiggin in The fossil fuel crash of 2014 asked what should we make of the fact that oil prices have fallen from more than $100/barrel in mid-2014 to around $60/barrel today? He also looked at coal, I’ll stick with oil. Quiggin poses the questions:

The big questions are
(i) to what extent does the price collapse reflect weak demand and to what extent growing supply
(ii) will these low prices be sustained, and if so, what will be the outcome?

Quiggin says:

The answer to the first question seems to be, a mixture of the two, with some complicated lags.

I thought it was the Saudis increasing supply to put the American frackers out of business. This turns out not to be the case. Richard Heaney gives us this graph on monthly oil production:

image-20141219-31034-s3o1c6_600

So it is the Americans who have largely increased supply. The Saudis have simply decided not to reduce supply, the usual tactic to increase the price. I’m sure they are hoping the American frackers will feel the squeeze.


Anjli Raval gives
this graph of costs:

f9c2521e-8058-11e4-872b-00144feabdc0.img

Raval says that most at risk are the Canadian oil sands, US shale plays and other areas of “tight oil”. Also vulnerable are Brazil’s deepwater fields and some Mexican projects. Crude at $70 puts at risk projects for 2016 to the extent of 1.5 million barrels per day.

Raval has perhaps the best discussion of what might happen in the future. The short answer is that we don’t know. A pull-back in investment could lay the basis for the next price surge. There may also be a switch to cleaner energy sources.

Much of the discussion, including a Financial Times editorial arguing that the fall in the price of oil was good for the economy (the concern was over deflation), ignores climate change.

John Quiggin says, inter alia that:

if we are to reduce emissions of CO2, a necessary precondition is that the price of fossil fuels should fall to the point where it is uneconomic to extract them.

I’m confused. I thought the aim of carbon pricing was to make fossil fuels more expensive to discourage use and to make the use of renewable alternatives competitive.

Adair Turner in a piece Please Steal Our Fossil Fuels goes into considerable detail about the transition to renewables. If all the fossil fuels were stolen we would not be stuck (or not for long) and it would in the long run cost a negligible amount more. However, the assumption is that the transition will depend on price. Unfortunately electric cars may not be cheaper until the late 2020s. There is plenty of oil in the ground and whilst it is available we will keep using it.

Turner says “we should commit to leaving most fossil fuels forever in the ground” and no great harm would befall us economically if we did, but we won’t. Miracles would be required.

At this point I’ll state my case that we should act out of policy, not rely on markets or miracles. If Germany can forswear nukes because they are dangerous and evil, why can’t we do the same in relation to fossil fuels, which are even more dangerous? Sooner or later we’ll have to ignore the fossil fuel mafia.

Before I go, Heaney has this graph of the oil price in recent years:

image-20141219-31034-wl7wo0_550

It demonstrates that oil can be extremely volatile. There is no way of telling where the current crash will end, but my guess is that it will more or less stabilise soon. After that we are in uncharted territory.

Elsewhere Jeffrey Frankel makes several interesting points.

Firstly most dollar denominated commodities have fallen in price, including iron ore, silver, gold, platinum, sugar, cotton and soybeans. So something general is going on beyond the vagaries of specific commodities.

Secondly, The Economist’s euro-denominated Commodity Price Index has actually risen over the last year.

Third, and most importantly, it seems, there is a link between commodity prices and interest rates. When interest rates go up, commodity prices fall. Frankel suggests that traders are anticipating a rise in interest rates in the US next year. It’s not the whole story, but perhaps an important factor overlooked elsewhere.

Saturday salon 27/12 late edition

voltaire_230

An open thread where, at your leisure, you can discuss anything you like, well, within reason and the Comments Policy. Include here news and views, plus any notable personal experiences from the week and the weekend.

For climate topics please use the most recent Climate clippings.

The gentleman in the image is Voltaire, who for a time graced the court of Frederick II of Prussia, known as Frederick the Great. King Fred loved to talk about the universe and everything at the end of a day’s work. He also used the salons of Berlin to get feedback in the development of public policy.

Fred would only talk in French; he regarded German as barbaric. Here we’ll use English.

The thread will be a stoush-free zone. The Comments Policy says:

The aim [of this site] is to provide a venue for people to contribute and to engage in a civil and respectful manner.

Here are a few bits and pieces that came to my attention last week.

1. It was a dark and stormy night

darkandstormy_5013

Actually we’ve had gentle rain tonight, easing. Probably about 15 to 20 mm. Enough to keep the grass, shrubs and trees interested, but not enough to run water into any of the dams on properties where I work.

Other than Christmas, not too much has happened that impinged on my consciousness, but then we’ve intentionally missed the news on telly a couple of times. With Christmas midweek I lost a sense of what day it was. Tomorrow’s Sunday, when I normally work on a 50-acre property with possibly an acre of kept gardens. If it’s raining in the morning I’ll put the cue in the rack which means for sure the sun will come out to a bright shiny day!

The idea of the image above came from son Mark’s Facebook. He’s holidaying in southern Thailand where I gather the weather is bad!

2. Tsunami anniversary

Mark will be here next week. I must ask him whether Koh Samui was affected by the Boxing Day tsunami.

Of course, Boxing Day was the tenth anniversary of the tsunami that destroyed large tracts of Aceh province in Sumatra, also affecting Thailand and Sri Lanka, killing some 230,000 people. See reports at the the ABC and the BBC.

3. Putin needs new annexations

Looking further abroad the German magazine Der Spiegel ran an interview with the Ukrainian Prime Minister Arseniy Yatsenyuk, who thinks that Putin needs new annexations to feed his popularity at home. Yatsenyuk is plainly pessimistic about any resolution of the situation, which is a worry for the whole world in 2015.

This article by Anatole Kaletsky is reasonably optimistic, pointing out that the formal truce struck in September is holding and that the situation should evolve into

a broadly stable “frozen conflict,” similar to the stalemates that have prevailed for years, even decades, in Georgia, Moldova, Armenia, Azerbaijan, Kosovo, Cyprus and Israel, to name just the frozen conflicts closest to Europe.

Kaletsky thinks Ukraine will never make it into the EU or NATO. He thinks:

an EU association agreement, similar to Turkey’s, could help reduce corruption and encourage economic reform. A dual trading relationship with both Europe and Russia could ultimately offer Ukraine the only possible route to economic viability. This sort of relationship should become possible once this year’s conflict is definitively “frozen.”

4. Heightened terrorist “chatter”

There is always a possibility that Abbott’s warning of heightened terrorist chatter is playing politics. I’d be inclined to give him the benefit of the doubt.

Professor Jeff Lewis, terrorism expert at RMIT, said:

predictions were “very, very difficult” but believed an attack would occur in the following year.

“While we engage in war against ISIS it makes us vulnerable,” he said.
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“I wouldn’t want to put a percentage on it, but I think in the next 12 months something else will happen, either in Australia or in Indonesia directed at Australians.”

Not good!

Season’s greetings!

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Climate Plus wishes you a pleasant Christmas/New Year and health and happiness for 2015.

Personally it’s been an up and down year. I’m rather looking forward to 2015!

For the blog it has been up and down too. I’ve been grateful for your support. We’ve struggled a bit since I took a holiday, but have just had the best day traffic-wise in months! I think Hockey’s budget was a great blessing for us. Now if Abbott would only do the decent thing and resign!

I had originally thought to have a blogging hiatus for a few weeks over the festive season. I need to do my tax, which is a major production – much ado about almost nothing, really – and some other personal stuff. On reflection, I think I’ll keep the blog open but at reduced volume. I’d hate to miss out if Abbott really did make an honest man of himself.

So as it stands I hope to get back to full production by about the third week in January. Certainly I plan to carry on from there, health permitting, while foreshadowing that we have booked a European holiday and river cruise down the Danube in October. We’ll certainly be back for the Paris climate conference in December.

I’ll leave you with this photo, packing up at Purni Bore in the Simpson Desert, which captures some of my mixed feelings about the year:

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