Carbon trading legislation looks set to be rammed through

There is a rumour circulating around Wellington that Labour have been secretly meeting with the Greens and NZ First over the stalled Carbon credit trading legislation that Labour want to desperately pass.

They only have just over 2 weeks to pass the legislation needed to allow carbon credit trading to begin in New Zealand.

Now apart from the fact that Carbon Credit trading is based on the whole global warming, sorry "climate change", fraud, passing such negatively impactive legislation in a rushed manner is going to cause more problems than it will seemingly "solve".

The collapse of such a trading system is inevitable , as it is based on a "good" that is worth precisely nothing. You want to rush through half arsed legislation to bring in this kind of dodgy stuff?

Please no!

All I can hope is that the trek up the mountain yesterday by David Parker, Energy Minister and Climate Change zealot, will knock some sense into him and he will do a 180 degree turn.


Related Political Animal reading

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Global warming: Power to the people
Carbon Credit trading puts markets at extreme risk
Global Warning: Tax iceberg ahead
Unstoppable global warming
Earth Day: Turn on, tune out, buy some candles
TIME magazine slips inconvenient truth past its readers
The Great Global Warming Swindle
PRIME TV PRESENTS: The Great Global Warming Swindle
Kristen Byrnes-Ponder the Maunder
Helen Clark and Jeanette Fitzsimmons in conflict with business
Of tulip bulbs and tooth fairies


c Political Animal 2008

Goodman Fielder to improve bottom line in 2009

Discuss Goodman Fielder at Share Investor Forum


The commodities bubble has burst in my opinion, something that I commented on a couple of months ago.

While it might be bad for those investors who recently bought into that booming sector-I know a couple of people currently being advised by brokers to buy BHP Billiton [BHP. AX] and Rio Tinto [RIO.AX]-there are benefits for investors in other sectors.

Staple consumer stocks like Kraft[KFT.NYSE] , Mars-Wrigley, Coca Cola [KO.NYSE] and Australasia's listed Goodman Fielder [GFF.NZX] food group will reap massive rewards in bottom line profit.

Dropping corn prices will benefit Coca Cola, Mars-Wrigley and many other consumer stocks who use the corn syrup made from corn as a base for many of their sweet to taste products.

Input costs of raw materials ranging from raw food costs, to packaging and transport have all dropped by an average of 15% on US commodities exchanges and this is clearly good for business.

Goodman Fielder for example has been suffering badly from high commodity prices over the last year, wheat especially having a big impact on bread prices. It even had to go to the extent of writing down the value of its New Zealand Dairy assets because of the deteriorating economy.

The price of wheat has declined 40 percent from a record $13.495 a bushel in February to $9.0925 a bushel as of yesterday.



The lower costs of commodities like wheat to food manufacturers mean more black ink to the bottom line, as companies are reluctant to pass on production savings to consumers.


In the 2 months to August 6 the US wheat production was up almost 20% from this time last year.

Corn crops previously thought to be savaged by floods in the US Midwest are now on track to deliver near record cropping.

You may have noticed Goodman Fielder branded breads in supermarkets haven't had their prices cut since the raw wheat price drops and none of their other wheat based or corn based products have taken a price hit.

All this means Goodman are very well placed to increase profit substantially in the 2009 year as their large range of branded and packaged consumer food products will have their input costs into production substantially cut.

As food manufacturers passed on costs when commodities were rising it is unlikely that they will cut as commodity prices slump.

Bad for consumers, but very good for investors in consumer stocks.

Disclosure - I own GFF Shares

Goodman Fielder @ Share Investor

Goodman Fielder turning on the DRIP
Commodities bubble set to burst
Why did you buy that stock? Goodman Fielder
Goodman Fielder hit by high commodity prices
Goodman Fielder a Hedge against an economic slump
Goodman Fielder pie gets bigger

Related Links

Kraft good in a recession -Everything Warren Buffett
Goodman Fielder - Corporate Website
Cbot.com - Commodity prices

Goodman Fielder Financials

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c Share Investor 2008

Darkness at the centre of Labour's energy plans

National’s energy policy, to make it easier to build power stations and use our under exploited coal and gas resources, is a good antidote to Labour’s Russian roulette attitude to power supply over the last 9 dark years.

Over NZ $3 B was lost from the economy over this winter due to business having to cut back production not to mention the long term losses from overseas companies not investing here because of uncertain power supply.

We need to use thermal and coal supplies to give us cheaper energy to stimulate our minuscule growth rate, instead of shipping it overseas for others to warm their hands by.

The several power crises that NZ has faced over the last 9 years is a direct result of Labour and the Greens stopping the building of power stations.

Wind will never be a reliable alternative.

If you are worried about Green house gases-I’m not because the idea of Carbon being a problem isn’t scientifically possible-worry about the record levels of C02 pumped out over the last 4 months as the Whirinaki diesel station is running at full capacity and so is the coal fired Huntly.

Get your head out of the tramping mountains Ms Helen.

It would be nice to see ANY election policy released from Labour, kiwis haven’t seen any yet.

Whats on your secret agenda for New Zealand Labour?

Triples?

c Political Animal 2008

Labour Party Election Policy: where is it?

Zip, zero, nada, zilch, nought, nothing.

Sorry about the padding but without it this post would be empty.

Labour have been critiquing National for not having any policy releases for the coming election, even though they have released at least four policies in the last week, but have released none themselves.

We all know that most of their policies have been passed post election without any indication beforehand.

The scary part is what are they being so secret about?

The removal of the Privvy Council, introduction of the Electoral Finance Act, introduction of Carbon taxes and removal of section 59, or the Anti smacking bill and many other unpopular, destructive and anti democratic laws have been passed without any heads up or campaigning before an election.

Where is the policy Helen?!

c Political Animal 2008