Short But Superb Professor John Quiggin Article In The Guardian.

Excellent article by another late bloomer Professor John Quiggin

https://www.theguardian.com/commentisfree/2018/oct/10/the-national-energy-market-is-an-abject-failure-its-time-for-a-publicly-owned-grid

He just banned me and wiped my more offensive posts. But he was a better sport then Sinclair since he left all my better posts intact. And there is some very good posts of mine still there.  Bravo.  It was all my fault.  I was triggered by a real dopey bastard there and just lost my marbles.

Old …………… Hat

“Why has Australia done so badly? The reform process in Australia has treated markets and competition as goals in themselves, rather than as policy instruments designed to produce useful price signals and thereby guide investment and consumption decisions.

The failure to consider the appropriate role of prices can be seen at every stage in the process, from generation to retail.”

You could not improve on that could you? Its perfect. And note that he’s honed in on the most functional side of Capitalism.  Multi-level price allocation.  Price allocation through the entirety of the production chain.

Professor Quiggin taking his science much more seriously these days. Its a short article but its all good. He’s a big believer in price allocation.

Old ………… Wine.  Black Belt Quiggin. 

 

WHAT COMPETITIVE PRIVATE INFRASTRUCTURE WOULD INVOLVE. 

Infrastructure is trans-spatial goods.  Properties that overlap many other properties. Basically its all about pipes.  Optical fibres are pipes for information. An electric wire is a pipe for piping electrons around. Roads are for piping vehicles around.  Infrastructure is all about pipes and you do well putting most pipes underground where you can do it.

People used to laugh at me at Catallaxy when I was talking about clear rules for sole traders to be able to tunnel under houses and public buildings. Clear rules as to whether you could own the tunnel, build the tunnel, own the various “Pipes” in the tunnel, or whether you needed a different sole trader owning or developing each of these things to keep the operation competitive. Imagine if the same billionaire owned the tunnelling company, the tunnels, the sewerage pipes, the water pipes, the optical fibres, the electrical wires, and the roads within these tunnels?  How could a competitive market then develop after that? If a private person owns the road in front of your house either he doesn’t have sound property rights, or you are his slave.  So he cannot be allowed to own the road in front of your house, if we are not to have slavery. Thats how this matter must be understood.

Black Belt Quiggin Talking To Recalcitrant Privatisers On Train Rent-Seeker. 

If you own an island but a private entity owns the sea around that island, you are that entities slave and obviously so,  or property rights have been watered down and horribly confused. So the sea around your island ought not be either in private or foreign hands.

So people were ridiculing me and making soundbite quotes of what I was trying to explain.  But how the hell else could a competitive “public goods” market be pursued than with clear tunnelling rules and ownership rules with regards to the resulting tunnels?  I couldn’t get anyone interested in the subject.

So it became clear as a result of realising that the subject could not even be understood, that the pipes and tunnels side of infrastructure had to be communist. It had to be publicly owned.  The people who were claiming that it could be privately owned could not even grasp what that meant.

This was back when we were talking as if the Walter Block idea of anarcho-capitalist infrastructure, had to be given serious consideration.  But such fantasies could never be taken seriously,  unless everyone knew where they stood when it came to creating the tunnels,  and the pipes to place in those tunnels.  And the subsequent ownership of both.

Back then people were telling me that the roads ought to be given to the people who owned the houses adjacent to those roads.  People were acting like the British government ought to have sold off the English Channel to Bismark. People were acting as though selling key infrastructure assets to communist China was “free enterprise.”  They were acting as though the homesteading of assets that had to be built wasn’t a serious subject should you want private infrastructure.  Its like their hero was Carlos Slim or something.  They wanted a corrupt superhero to come along, own all the roads outside their place and charge them to walk on those roads and call himself Carlos. Carlos my hero.  A sort of gay fantasy or an attempt to get us to sell everything to the Chinese communists and call it “free enterprise.”

So what was the ridicule about? If you cannot establish clear property rights for trans-spatial goods, then you must have OUR GOVERNMENT (and not the Chinese) run a communist operation and mimic price allocation the best they can. In which case our government must own the roads but the private sector ought to own the trucking operations.  And no stupid little compromises.  None of this Telstra versus Optus idiocy.   Where Telstra and Optus own aspects of the grid and all these people doing “bullshit jobs” go around trying to tweak the regulations in order to force these ghastly Frankenstein corporations to compete.

None of this idiocy where you have a big corporation own the pipes but then technocrats are supposed to arm-twist these guys into leasing their pipes to competitors.  Whose pipes are they? Whose property rights are they if the bullshit job technocrats then must come in and force how they are to be used?

What a moronic situation to be in?  Its like we are dealing with people who don’t know how to set up a punchline for a joke.

There is no getting around it that the pipes must be communist, owned by our government,  and no free enterprise cheer-leading ought to be allowed to intrude into this matter.  We cannot be half and half about it. We must decide which part of the project is Cliff Richard and which part of the project is Judas Priest. So Professor Quiggin is completely correct. The electricity grid must be communist. That is to say publicly owned and run.  Then we make other actors work on a capitalist basis, creating the electrons to go into that grid,  so we get something resembling price allocation, rational investment, and motivated competition.  This cannot be done if the pipes side of the infrastructure is not publicly owned.

To be half-assed and ambiguous about pipe ownership is to creates a perverted market with Frankenstein corporations.  You cannot expect these malformed giants, created to be fully grown from the start, to be competitive or innovative “Frankie get up off the ground.  Compete Frankie.   Frankie why are you so fucking lazy. ” But Frankie will just lie around bleeding into his bandages,  since big business must arise out of small business success.

Competitive pressure cannot be created by the attempt to get a good sale price for previously publicly owned goods.  A great sale price is proof positive that you sold the wrong stuff. It baffles me that any of this was ever controversial.

In the course of researching his new book the Professor is very much on his toes.  I used to see him as more of a good social observer than an excellent economist.  But things have changed.

We must start over.  We must reform these privatised assets so that the pipes are owned publicly and almost anyone can aspire to using them in order to conduct business.  The government sets the prices and charges through the nose during peak times. But charges very little off-peak times.  So as to get near-maximum usage.

No private entity ought to be owning both the roads and the trucking company that uses the roads; both the big river and the tug boat company that uses the river; both the power lines and the electrical energy moving along those power lines.  The government should own the pipes and tunnels.  The private guys should provide the products that are transported along those pipes.  And no compromise with that principle.  We have to forget this idea that just because some people screwed things up in the past, that we have to put up with an endlessly flawed market.  These hybrid roads-and-trucking-companies (eg. organisations like Telstra and Optus) …. these cannot be tolerated in their current form.  We have to start with the electricity market and then go back and correct the entire mess.

20 thoughts on “Short But Superb Professor John Quiggin Article In The Guardian.

  1. HA HA HA HA HA HA HA. Good on you Clive. Likening our bigshots to those rich twits that would show up in the Soviet Union and come back with a lot of happy talk. Delightful. Which is not to say that we want to be nasty to our communist brothers in 2018. We just need to resist their projection of influence is all. And a champion has emerged amongst us to lead us in this matter. A champion with a certain shine, a certain gleam about him. You would think it was Sherlock Holmes rather than our old mate Clive.

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  2. Amazing source material for a potential economics of slavery. Some plantation and slave owners must have invested a great deal into finding and training the most productive SLAVE MANAGER CLASS. Or at least black slaves with potential to be supervisors and plantation managers. Why go to such trouble to identify and train managerial talent? Why invest so much in people of another race? Because they can recapture your “human capital” investment with total security. The “executives” and supervisors that you invest all you can in, cannot get away to multiply their salary ten times with someone else. So the idea is to invest all you can in the competency of these black men that you can detain on your own estate.

    Why do I assume this did happen? Because the South was richer than the North according to this fellow. And the slave plantations were sensationally productive. They must have been chockas with producer goods and skilled supervisors. So the Norths war of destruction would have kicked seven shades of shit out of the demand for labour in the South. Since the demand for labour is a function of availability of producer goods swamping the available people who can use them.

    This doesn’t sound like the story we have traditionally been taught. If all this is true, its a serious defeat of any idea that slavery should have been ended by violence and property destruction. With property destruction, though it may have saved the life of some soldiers, it would have meant that highly sophisticated and skilled black men no longer had the facilities to express their capacities. So networks of black men lost key people in their network from which to make a fist of things when they were now able to move to other properties to work. For populations to do well over time they need to have practical access to people in their network who are already highly successful and influential.

    But these were opportunities that died in that war.

    There was an argument that Sherman’s emphasis on property damage, directed at the plantation owners and others, was to some extent targeting regime leadership, and insofar as the plantation ownership were regime leadership, this could be valid, and a way of reducing the overall carnage. But with this information to do with the high productivity of the plantations, and the likelihood of slaves who had the skills to produce this high productivity, the thing looks like even more of a disaster the more you learn about it.

    Turns out the South had the most superior economy in the world. A promised land. No wonder it had to be invaded and destroyed. Talent spotting, and reinvestment in skills training, for a big chunk of black slaves, must have been better than anything seen before or since. And why not? There was more surplus to skim off the top of the people you had trained. No use spending 100, 000 on modern skills training for a fellow who can use your telephone to find someone who can pay him twice as much right? So there is some uncomfortable truths getting around here. Its pretty scary if it takes slavery to motivate bigshots to go to that level of effort, to find talent, and to invest huge amounts of effort in that talent.

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  3. We are told that a developed industrialised North attacked the backward inferior South. No thats not right. A poor cronyist bunch of Northern thieves attacked their far richer and more highly developed Southern cousins. After this riff-raff prevailed, these Northern thieves looted the South down to subsistence levels. Mississippi was the richest state in the union. But looted and vandalised down to pauperism.

    There is no separating the economics of slavery from questions of intra-plantation hierarchy. Whereas white people on the plantation will likely be comparatively equal in status, there has to be a system of hierarchy amongst the slaves that is highly differentiated. In order to make the internal slave status super-hierarchical, this implies treating some slaves very poorly. Now why do I say this? Because if we are spending a great deal of effort in slave talent-spotting and in “human capital investment” in individual slaves ….. Under such a situation we can invest all we like. But the slave has got to want to work. We have to get him competing for status. Instead of him being able to force other plantations to compete for his prestigious skills, we must make the black people compete for status WITHIN our big plantation. Increasing the status differential BETWEEN slaves implies an institutional bias to cruel treatment of slaves that aren’t all that precious to you.

    So don’t get me wrong. I haven’t gone against the idea that slavery was ever acceptable. But there are some uncomfortable truths about “human capital investment” inherit in this analysis.

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  4. Cannot do my usual act when trash-talking MMA fans since some of them could actually be practitioners. I say this not from a fear point of view. But from a dignity point of view. One ought not run a tough talk act on people when you haven’t a snowballs chance in hell of being able to beat them if they met you. But its impossible to know which of these assholes are trained fighters or not. So one goes with what one is used to.

    GMBCATASTROPHE15 hours ago

    Khabib definitely out of line. Mcgregor boosting up interest in the fight and drumming up business. Christians have to put up with abuse to their religion and Jews actually deserve that abuse. So Khabib simply has to wear it. He redeemed his situation in the ring. He got Connor hurt and needing to tap out. That ought to have been good enough revenge. Completely out of line but not unforgivable so long as it never happens again. Because someone could have gotten really seriously hurt. Muslims cannot have any special privileges.

    
    y
    Brayden Tilley7 hours ago
    GMBCATASTROPHE stfu
    Reply 1

    badhshah mohammed
    badhshah mohammed7 hours ago
    Go suck conors dick.. that will be a privilage for u.. asshole.. hahaha
    Reply 2
    Jordan Tyers
    Jordan Tyers3 hours ago
    you deserve a kick in the teeth, not on anyone’s side but you’re a tool
    Reply
    badhshah mohammed
    badhshah mohammed2 hours ago
    Jordan Tyers ya.. u dont even deserve that.m asshole
    Reply
    Khalabib NoMcNuggets
    Khalabib NoMcNuggets50 minutes ago
    GMBCATASTROPHE
    go watch golf soyboy, ya mess with a bear ya get mauled
    Reply
    GMBCATASTROPHE
    GMBCATASTROPHE8 minutes ago
    Start running Quisling. The producer of this video asked for our take on matters. So you can go and fuck yourself, you complete cunt. Because I had explicit permission to comment. Now it may be that Khabib did not have the context to the great showman Connors antics. Maybe YOU don’t have that context. Or maybe you are just not that bright. I suspect that you are just not real smart fella. But Connor is smart. And he knows how to create interest in a rumble.
    Read more
    Reply
    GMBCATASTROPHE
    GMBCATASTROPHE5 minutes ago
    You talking to me you stupid cunt? Did you know that its not Muslims conducting these terrorist attacks? Did you know that? Terrorism is primarily a Jew and secret service thing? Did you know that? You should have seen that I knew that by the way I worded things. So like a dumb cunt you come in and start taking a shot at natural allies. Now notice this. Connors not fucking pressing charges. Did you notice that? What do you think that means? That he’s not a complete cunt. And furthermore he’s helped make the guy who beat him up a lot richer than he would otherwise be.
    Read more
    Reply
    GMBCATASTROPHE
    GMBCATASTROPHE5 minutes ago
    Not by you. You are not even a man mate. You are a bum-sucking home.
    Reply
    GMBCATASTROPHE
    GMBCATASTROPHE4 minutes ago
    HA HA HA HA HA HA HA HA. You are a joke fella. Keep them coming so we can all have a laugh.
    Reply
    GMBCATASTROPHE
    GMBCATASTROPHE1 second ago
    Check this out fellow gentile allies. Khalabib NoMcNuggets is A JEW. He only just set up a youtube site in order to pose as a Muslim fighter. What a complete cunt hey? He’s a Jew working out of Dimona.
    Reply

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  5. Keen is not 100% right about everything. But he’s throwing an enormous amount of light on the blind spots of the most important areas of economics.

    Supposing you are from the Catallaxy crowd that knew me 12 years ago? Now Keens answers to problems are a little different to mine. But his frustration with the incapacity of neo-classicals to even understand the problems I would throw at them …. Exactly the same.

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  6. Follow up comment about the Brawl:

    After pondering the matter thoroughly, I have made the discovery, that all the make-believe sand-niggers that responded my previous comment, are actually homosexual Jew-Students, working out a converted gymnasium in Tel Aviv.

    How about that hey?

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  7. One dollar in 1860 is held to be equivalent to $30.38 dollars in 2018. Which will be a wild underestimate since its unlikely to include land inflation. What this means is that Mississippi for example, was fabulously rich beyond the dreams of Croesus. Well thats kind of surprising news isn’t it? We have to consider their economy as perhaps the best economic model we have so far. Bear in mind that their non-slave estates were still more productive then anything anyone else had going. We have been scandalously lied to and this is so important when it comes to looking at our economic models going forward. I must say also that the Celtic-Heavy Anglo-Saxon Celt wing of the Yamnaya family has been horribly defamed as to their economic acumen. We are ‘the shit’, as it turns out. If we are working on a model where we are making real stuff. I wouldn’t have thought it myself. I thought we had too much of a weakness for the corn to be viable wealth creators.

    But the industrial revolution was started in the North of England and the South of Scotland. Thats a high Celtic component right there. But that high-Celtic ascendancy was reversed by the inflationism of World War I. Wealth was transferred back down South by the war-time funny money. Then the Irish had 30 good years recently, ended by banking predation. Then we now know that the Southern States were immensely productive, and really quite Celtic. So we see how under a more sound economic model us Celtic types seem to be able to excel.

    Obviously one of the situations mentioned is tainted morally. But I ought not need to put that disclaimer on every post.

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  8. Woolworths seems to have withdrawn its $4 ten litre spring water deal. I was thinking that the problem of getting good water in Australia had a practical solution at last. But maybe not. Will check if Coles has done the same thing. I had to get Pureau water. More than double the price. But more pure I would think. It would be cheaper to put un-poisoned water in the pipes. In the water supply. Then at the other end we could get used to boiling the water that had not been poisoned. Boiling is a lot cheaper than distilling. This fluoride and chlorine is a conspiracy to poison the public and always was. The water could be disinfected with ozone one supposes. Or ultra-violet light. I will have a much expanded list of election demands at some point. The Chlorine needs to be phased out. But anyone putting fluoride in the water ought to be arrested immediately.

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  9. It would be good to try and reconstruct the 5th century BC Athenian, Ionian … the classical Greek diet. It might be a particularly brain-friendly diet if practiced multi-generationally. Lots of olives and fish. Could have made them a lot smarter than the rest of us. Maybe the ate a great deal of organ meats. Maybe they caught a lot of small fish and so could eat them whole and get the benefits of the whole body? Who knows, but we would be looking for something that stands out and would be reliable for several generations. Mostly for diets pre-pregnancy and during pregnancy. Thats the key time period and may be a proxy for the diet the rest of the time. Really I think its olives and fish, both fermented and fresh .

    Also we have to be a little bit gentle on our aborigine brothers. If we force them inland and deny them the best fish oils and other good fats on a multi-generational basis, this is going to make them come across as pretty inferior. Yamnaya having access to black sea fish, raw milk and unlimited meat including organ meats … that could have them come across as superior Aryans for long periods simply because of superb pre-pregnancy nourishment over many generations.

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  10. Zach Bush showing what the oligarchy is doing to the world. The systematic torture of the food chain. Systematic attack on the nutrient value of the food. Systematic attack on the health of the population.

    He didn’t even have to bring up Chemtrails. Chemtrails exposes which include footage of the plane with some sort of telescope/camera relationship .. Stuff like this gets you banned on youtube. The footage has always been there but its always getting trashed.

    Like

  11. Jews at the Mayo clinic damaging the public health lying about the statin menace. Some of these older guys don’t even have a nose job, so they cannot hide their gargoyle-like looks. No-one who takes statins is not systematically poisoned from them.

    Like

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