I would like to use slightly stronger 4-letter based words to begin, but who wants to start something like that. I haven’t written in a while and the only things I’ve been thinking about have already been unleashed on the world (see last blog).
I have two very important points to make.
1) DAIRY FARMERS PAYOUT EVEN MORE MASSIVE THAN FIRST PREDICTED.
New Zealand dairy farmers through their monopolistic behemoth Fonterra are going to receive a projected average payout of $800,000 for this year. This compares with about $500,000 last year. Last week the NZ taxpayer finally got a tax cut – $16 per week to come in on October the first. This is the first tax cut in a decade or so. I wouldn’t mind so much, but that is about the cost of a name brand 1kg (2lb) block of cheese. The opposition party had a field-day with this fact on budget day. And can you believe it, the farmers continue to complain. They say we shouldn’t bemoan their huge payouts. They say cost of living is rising for everyone, including them. I suppose this is correct. Tractors do cost money and use up petroleum of some description.
The dairy industry of New Zealand has a lot to answer for (I think if you look back on my last installment I may have said those exact words – who knows…). Because of their massive growth huge numbers of farms are converting to dairy. New Zealand is meant to be a clean and green country. It looks green, but that is thanks to thousands of dairy farmers tapping into the ground water to irrigate land that is usually meant to be brown all summer. Thanks to that ridiculously unsustainable activity the good folk of Canterbury have had to put up with water shortages in recent years despite the fact they live just an hour from a mountain range that sees millions of litres of rain a year and feeds hundreds of rivers across the plains. Unfortunately, hardly any of that water will get to the coast because the dairy farmers need it. When the water runs out I suppose they could irrigate their land with oil.
Which brings me nicely to my second point…
2) OIL PRICES HIT $US130 A BARREL
To be fair, since I typed the above headline it cracked the 140 mark, but who’s counting.
Thanks once again to those ridiculous speculators based in London, Europe and New York who continue to buy up oil like it’s some kind of black gold. I’ve just looked up speculator on the on-line thesaurus and one of the words that it threw back was gambler. Never a truer word spoken Mr. Roget. I heard that pension funds are throwing money the way of the oil. What would a superannuation investment strategist want with a whole bunch of oil? How is millions of barrels of oil going to help me in my retirement when there are no cars left to use it up? When will all those idiot investors realise that if they keep buying up all the oil it will run out??? What will they buy then?
Maybe a bit of water…