How do you know when a politician is stupid? When he opens his mouth.
We hope you don't mind that we've modified the old saying, "How do you know when a politician is lying?" "When his lips are moving," is the answer. But no one is surprised with lying politicians anymore. Yet despite their worst efforts, politicians can still surprise us with astonishing levels of stupidity.
For example, Maurice Hinchey, a U.S. Congressman from the great state of New York has offered a solution to the oil crisis: nationalise the refineries! Hinchey told a press conference in Washington, DC, "We (the government) should own the refineries. Then we can control how much gets out into the market."
Yes, yes Congressman. Simply press the "on" button and the oil flows. It's magic. That's the great secret the oil industry doesn't want you to know...oil comes from belly of a giant metal machine.
How incompetent are Western policy makers on energy? The first step on the road to incompetence begins with economic illiteracy. Controlling the "means of production" (to borrow a phrase from Mr. Hinchey's intellectual inspiration Karl Marx) does not guarantee that things actually get produced. It just guarantees lower investment over time and ultimately, a poorer country.
Real economic production requires labour, capital, capitalists, and resources. Capitalists invest in new projects because they expect a return. If there is no return, or the government threatens to nationalise the assets, you'll see a lot less investment. America is fast become a land that Vladimir Lenin would be glad to call home.
How big of a moron do you have to be to realise that oil is not "made" at a refinery? Technically, crude oil is refined into different types of fuels at a refinery. But oil is "made" by nature. To find it, you drill for it. Maybe Congressman Hinchey should support lifting the restrictions on off-shore drilling in the U.S. But then, that would actually help solve the problem.
Unfortunately, stupid politicians are not a uniquely American phenomenon. You have them right here in Australia. Green's Senator Christine Milne told the press, "Coal should be left in the 20th century while the rest of us move into a clean future." Apparently, the Senator wants us all to return to the Stone Age, where no one uses coal or oil and we all live in huts, eat grass, and worship cloud formations.
If the Greens were being honest, they'd call themselves the Reds. Good marketing though. Everyone likes green. It's not a colour you normally associate with Totalitarianism and the relentless meddling of the state in your private life.
What serious analyst of the modern world would suggest that we can run our economy without coal? Does the Senator know that Australia gets 80% of its electricity from coal? Her comments wouldn't be broadcast on the airwaves without coal. Hey wait...maybe she's on to something...Hmm.
Dan Denning
The Daily Reckoning Australia
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About the Author
Dan Denning is the author of 2005's best-selling The Bull Hunter (John Wiley & Sons). He began his financial publishing career in 1997 and has covered financial markets form Baltimore, Paris, London and, beginning in 2005 Melbourne. He’s the editor of The Daily Reckoning Australia and the Publisher of Port Phillip Publishing.
Comment by Coffee Addict on 20 June 2008:
Christine Milne lost her senate seat at the last election. Her term will expire in a few weeks time.
It amazes me that people with a fantastic grasp of social justice issues often also come with NO ability to understand the pragmatics of running a business or an economy. The converse is also sadly true. To put things into perscective can also be rightly argued that the neocon economic and social agendas (that delivered war, credit and suspicion)were up there with the fairies as well.
Pre-packaged political agendas are rarely balanced or rational.
Comment by rick on 20 June 2008:
"Coal should be left in the 20th century while the rest of us move into a clean future." Apparently, the Senator wants us all to return to the Stone Age, where no one uses coal or oil and we all live in huts, eat grass, and worship cloud formations.
Let’s not get too carried away!
I am not as smart as you.
I like reading your stuff
I think she means, we have the technology
Every thing in this world is chemistry
We have cracked the DNA
We can CLONE
In the 1940’s we split an ATOM
We have gone to MARS
Yet we rely on Stone Age to survive
Ohhh look it burns wow
It is a goal to strive for; if we keep using coal and oil it is unsustainable we will all suffocate from carbon dioxide before coal runs out.
Imagine if she said lets research quantum vacuum or cold dark matter mass, or let’s look at hydrogen.
Then what would you think of her
Rick E
Comment by barry on 20 June 2008:
For those fixated on global warming and its supposedly dreadful implications I suggest they take a Bex and have a good lie down. When they wake up the crisis will have passed and they can start hyperventilating over the next relativist dogma such as global cooling. Remember that? It was only a couple of decades or so ago we were all going to freeze to death with global cooling. While having a lie down why don't Christine and Bob and their acolytes take time to read a good book. I recommend Unstoppable Global Warming by Fred singer and Denis Avery for starters. Fundamentally the Greenies are hyper pessimists, always seeing threats, jumping at shadows of their own creation.
Comment by tom on 21 June 2008:
How would you know when a politician soils himself?
When your name is either Bernanke or Paulson and your sitting before a congressional panel presided over by some of your worst enemies whom represent the collective conscience of a blood-lusting, gun-culture-obsessed audience that is the Unforgiving State of Anarchy.
Good riddance.
Comment by Coffee Addict on 23 June 2008:
Apologies. I mixed up Christine Milne (Tasmania) who is staying with Kerry Nettle (NSW) who is going. None of them are beyond a little bit of lobbying and I note that a Green presence at local government level generally cleans up the corruption. Teaching business skills to the Greens is (mostly) easier than teaching morals to the neocons.