At the end of a comment yesterday on Macrobusiness, PFH007 concluded with
Wake up ALP
Wake up Greens.
Pfh007 November 27, 2016 at 7:47 am
How do we do it?
By going straight to the folk they need – voters – and making it clear we are doing exactly that.
That is ultimately what populists like Trump and Bernie did. Bypass the political machines. Continue reading
Keep in mind that deficits don’t matter – when you are a Republican.
Democrats find it hard to complain about government spending and really hate doing the whole ‘austerity’ fan dance. So they rarely give Republicans a hard time about deficits.
At the end of the day budget deficits are something that are used by Republicans to beat Democrats over the head.
Anyway who needs a deficit ?
We have the Federal Reserve – that defender of free markets and friend of the Republic – to help Mr Trump to deliver on his promises.
How so you say?
Try this on for size.
Donald Trump announces in his first hundred days that rebuilding the infrastructure of the United States is a national priority and will get Americans back to work in real jobs. Continue reading
So Westpac is going to charge non-resident borrowers a bit extra on their speculations in Australian property.
The very idea that our local banks would be extending credit to non-residents to speculate on Australian property is as insane as it sounds.
Why on earth do we want non-residents being extended credit by our banking system to acquire existing property?
Even if the non-resident is interested in buying a brand new off the plan property it does not make sense to be extending them ADI credit.
This is especially the case when our local ADIs are running offshore to borrow to support the “low rates” of their mortgage operations.
Only a nation of complete nutters would allow their taxpayer guaranteed TBTF banking system to expand their external liabilities (foreign debt) for the purposes of allowing foreigners to have a punt on residential house prices Continue reading
The Australian Dollar keeps on rising and if it is not rising it
remains far above what our trade performance warrants -floating on a torrent of unproductive and predatory capital inflows.
Below is an interesting graph claiming to show the relative ‘expensiveness’ of currencies
Check out the $AUD.
It is in contention for the gold medal as the world’s most expensive currency. Look at Japan – super cheap – no wonder they still have a car industry! Continue reading
The news today is that Woolies is considering ending its agreement with SPC Ardmona for locally canned fruit.
Understandably this has led to a fresh out break of the old debate – whether it is patriotic or the right thing for Woolies to do – and the related skirmish – whether it is the duty of Australian consumers to eat Australian tinned fruit.
The Glass Pyramid is deeply concerned when these ‘red herring’ debates take place because they completely miss the point that the only reason Australian industry and workers are struggling to survive is because a massive reverse tariff is imposed on ALL Australian workers and industry when the government and RBA/APRA allow the exchange rate to be driven through the roof by torrents of unproductive capital inflows. Continue reading
Land Tax has become the new black with even the Treasurer talking about his enthusiasm for experimentation by other people (aka the state governments).
However, shifting a state governments finances from the fat lump sums that a new home buyer pays with a larger mortgage to a steady drip drip drip tax every quarter on every land owner is often considered a nasty form of political ratsak.
So is there a way of shifting the finances of a state from an inefficient and inequitable tax like stamp duties to a land tax calculated by the reference to the unimproved value of the land? Continue reading
Larry Summers has been talking about Central Bank independence, and it is certainly about time, but his proposals do not go far enough. The issue should be included in the terms of reference for a Banking Royal Commission. Click here for link to the Macrobusiness post.
Central Bank independence would be much less damaging if the role of the central bank was more limited.
There is a role for an independent organisation to measure inflation / deflation – using a range of measures – and to advise the government on the stance of fiscal policy required to maintain a stable currency. Continue reading
What does the future hold for Australia was up for discussion on Macrobusiness this morning
A Glass Pyramid operative left the following as a comment on that article.
The tea leaves in my tea bag tell a different story.
Slowly people are waking up to the core of the problem – unregulated privatised public monetary systems and international capital flows.
As they do they will realise that the immigration and trade in goods in services issues are symptoms of the damage caused by the core of the problem. Fix the core problem and much of the mutant immigration and trade/services flow issues will lose their heat. Continue reading