Friday, August 19, 2011


Just today I came across 2 examples that illustrate how Governments waste their citizens money. Both cases have occurred in Denmark - a nation that prides itself on its low rate of corruption.
CASE 1: DSB (Danish State Railroad) is giving up on the IC4 train. (InterCity4 was an outdated diesel train concept contracted to Ansaldo Breda of Italy) A respected Swedish Train consultant calls the project a textbook example of what can go wrong . DSB has wasted hundreds of millions of dollars on this project. They also poured about 1oo million dollars down the drain trying to run trains in Southern Sweden... The poor Danes - they pay 180% tax to purchase their cars...80% of their fuel cost (2x what you pay in the USofA) is government taxes...the goverment is constantly scheming new ways to harass car owners. All in the name of "collective traffic". Collective traffic: a 19th century form of travel that starts where you aren't, doesn't go to where you want to, is overpriced and heavily subsidized, and usually late. But still it's great for people who want to believe they are making a difference with CO2 while smelling other peoples farts and having them cough all over you!
CASE 2: If you're a fan of public transportation then you also gotta love wind energy. And few are better at that game than Denmark. DONG - 76% state owned energy company - made a great deal to build a windmill park, near Anholt, with the Danish Government. The government promised to pay 21 billion kroner for the project...and DONG is going to build it for 7 billion kroner and keep the difference! (a government administered-taxpayer underwritten subsidy) And the government has also promised DONG 1.o5 kroner per kilowatt - in spite of the fact that the market price is .35 kroner. That's how you make an uncompetitive energy supply profitable. Captive taxpayers and consumers foot the bill. (links embedded in §1)

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