LETTERS TO THE EDITOR

Cost inflation the problem

I STRONGLY support Malcolm Daws in his admiration of Doris Phelps' article on the financial system in The Murray Pioneer on December 16.
But his claim that senior economics students are taught the basic principals of how money is created is hard to believe; in my 76 years I have never heard an orthodox economist or banker give any indication that they understand what is happening.
They invariably talk about having to raise interest rates to control inflation, but the inflation that Malcolm mentioned demands inflation is self correcting.
When the price goes up some won’t buy. The incentive to produce more is increased and the price comes back down, without restricting the money supply.
The inflation that is the real problem is cost inflation.
Business runs almost entirely on overdraft. Interest is a cost, so raising interest rates is counter productive to controlling inflation.
Malcolm agrees with Doris that money’s only value is what we can do with it, but then goes on to say that if there was 10 per cent more it would be worth 10 per cent less, thereby treating it as a commodity of value instead of a measure of the value of real goods and services.
This reminds me of the stupidity of having floating exchange rates between currencies. This allows banks and other high flyers to gamble on what the rates will do, but leaves producers, exporters and importers in a perpetual state of confusion.
If any readers are interested in an explanation of the working and history of our economic system I recommend a prize-winning documentary called The Secret of Oz.
The only way I have found it was to Google it and watch it on YouTube.
It is well worth the trouble.
GILBERT AHRENS
Tanunda

The weakest links

H&C’S COMMENT (The Pioneer, 6/1/12) about how some cricketers say they are happy about how the team is performing whilst making a minimal contribution could not ring any more true.
It would make one cringe if David Warner or Shaun Marsh were to say: "I am contributing to the team so I’m happy."
They are the weak links of the Australian cricket team and in fact Warner and Marsh have had more interviews than the amount of runs they made for the side.
Apart from a great hundred in Hobart, Warner has not given a yelp.
I love my AFL but already some players are saying they have had 'the best pre-season ever’.
I’d rather hear them say: “My team and I have had our best season ever.”
Hopefully the player saying that will be Dom Cassisi with a premiership medal around his neck at season’s end. High hopes, I know.
NICK KOSSATCH
Paringa

Solar sagging

IT IS no surprise that makers of solar panels are going broke all over the world.
But the key problem is not just a flood of cheap Chinese panels or the slashing of ‘feed-in’ bribes.
Solar energy is useful for growing crops and timber, evaporating sea water to produce salt, drying clothes, heating domestic water and powering remote locations and portable equipment.
Some people may also choose to use solar panels to run their air conditioner on a hot day. Everyone should be free to use solar, though not at the expense of taxpayers or other consumers.
But for generating continuous mains power, solar is a green toy.
In clear, sunny weather, the electricity generated from solar panels varies from zero at midnight to a modest maximum at midday, providing there is no dust on the panel. On a cloudy day, output varies from negligible to none. In all cases complete reliable backup generation is required.
Solar power is a high cost way of generating an intermittent and variable supply of electricity from a very dilute source while sterilising a large area of land.
The solar industry is only efficient at one thing - extracting unearned profits from taxpayers and other electricity consumers.
As the growing global austerity starts to bite, all such frippery will evaporate.
The sagging market for solar panels is merely heralding that emerging reality.
VIV FORBES
Rosewood, Queensland

Don’t dump your e-waste

I WOULD like to remind South Australians not to dump their unwanted e-waste products this holiday period as there are plenty of alternatives to dispose of them correctly.
Over the holiday period many South Australians may be looking to dispose of recently upgraded or replaced electrical goods, but as we celebrate the festive season, I would like to remind everyone that there are plenty of alternatives to simply abandoning e-waste like old televisions and computer monitors on the footpath.
Illegal dumping is a big problem for local government, with South Australian councils spending over $1.5 million per year cleaning up after people who do the wrong thing and simply leave unwanted electrical goods on the kerbside.
Not only are we creating a hazard on our streets and footpaths, e-waste contains valuable resources like metal, glass and plastic that shouldn’t be sent to landfill.
Many councils offer government subsidised e-waste collections to residents and there are several businesses in South Australia that provide state-of-the-art recycling services at a relatively small cost to householders.
I urge residents to do the right thing and not illegally dispose of e-waste.
I also remind South Australians that the National Television and Computer Recycling Scheme began on January 1.
Under this scheme, delivered through Federal Government’s National Waste Policy, householders and small business will be able to drop off e-waste for free.
Services under the scheme will be progressively rolled out by industry from this year, covering metropolitan, regional and remote areas of South Australia by the end of next year, so there is no excuse for dumping your e-waste illegally.
Residents are encouraged to hang on to their unwanted electrical goods over the holiday break and check their local council for rates and fees relating to e-waste or to visit the Zero Waste SA website for more information.
For more information go to: http://www.zerowaste.sa.gov.au/e-waste/ongoing-e-waste-collections
PAUL CAICA
Minister for Sustainability, Environment and Conservation
Adelaide