Columns by Mr Pascoe are always entertaining and fun to read, and when the drive to catch eye balls is in harmony with talking sense they can be powerful medicine.
In his most recent outing, Mr Pascoe took us on a trip down memory lane to pay a visit to two of his most cherished mistakes as a financial prognosticator. Though if you read closely he barely concedes the second.
Rather than deny you the pleasure, by providing a potted summary, click this link and settle back with a cup of finest cocoa.
The article ended with
“..Keeping perspective on both the doom and boom remains a lonely pursuit – but it’s the only one worth pursuing, even with the occasional bad call….”
A double serving of LOLs please. Continue reading
South Australian Premier Jay Weatherill correctly rejects a population Ponzi scheme as an economic plan for South Australia’s future.
The biggest challenge facing South Australia and other regional parts of Australia is the preferred LNP Australian economic model which favours unproductive speculation and #FakeInvestment in the form of private bank credit creation “household debt” directed towards asset price speculation. Continue reading
25% of all new housing construction in NSW is sold to a foreign buyer. In addition there are many sales of existing houses and apartments to the hundreds of thousands of foreign buyers temporary resident in Australia.
Unfortunately despite the wide coverage given in the media to a report on Foreign buying of residential real estate in NSW, based on a Credit Suisse Freedom of Information request to the NSW Government, no link to the actual report has been provided. Credit Suisse do not appear to have made it available to the general public.
In an article published by the Guardian today John Quiggin discusses whether “Socialism” may find new support now that the flaws in neoliberal economics are becoming impossible to ignore.
A lively discussion of this article appeared on Macrobusiness that included the following comment.
“The private banks that offer cheap mortgages supported by an independent central bank will be at minimum curtailed. In their place we’ll have a central bank working hand-in-glove with the government to print money into existence via buying the sovereign bonds that fund various forms of agreed public income generation – infrastructure investment, basic income, digging holes, filling them in, etc.”
This over complicates the reforms that are required. Continue reading
Macrobusiness reported the latest ABS release on demographics.
“…….The ABS released its Australian demographic statistics for the March quarter of 2017, which revealed that Australia’s overall population growth rate has accelerated led by unprecedented growth in Victoria, which has once again obliterated records.
According to the ABS, Australia’s population rose by 1.61% in the year to March 2017 to be way above the 30-year average:…..”
389,100 new people last year.
If nearly 400,000 sounds like a lot that is because it is.
To give that figure some context check out the demographics for the USA between 1790 and 1890.
The population grew from about 3 million to 62 million. Continue reading
So the end of Australian car manufacturing has arrived with closures of both the Toyota and Holden plants to take place by the end of October.
Next year Australians will buy close to 1,200,000 vehicles at a cost of approx $40B (assuming each car costs approx $30,000) and they will all be imported from our trade rivals like France, Germany, England, USA, Italy, Sweden, Japan, Thailand, Korea, China, Russia, Austria and all those other countries that reckon maintaining heavy industry and manufacturing skills is a very good idea.
The Australian Financial Review has been providing a lot of ‘supportive’ coverage for the promoters of the new “Build to Let” housing model.
Now that it appears that Mr Scott Morrison is not keen on the ideal of handing out tax breaks to make “Build to Let” viable there have been howls of outrage from the hopeful rent seekers as their dreams turn to ashes.
To some extent the howls are understandable as Mr Morrison is usually very keen to promote asset price speculation with tax incentives like capital gains tax discounts for those mythical average “mum and dads” just trying to “get ahead”. Continue reading
Colonialism is often in the news and as a ‘former’ colony Australians might have some sympathy for the Indian perspective presented by Shashi Tharoor for the affirmative side of this debate “Does Britain owe reparations”.
Or do we feel that although Australia was a colony of Britain for over one hundred years between 1788 and 1900 it was not like the other British colonies. Continue reading
It is that day of the month when the RBA board meets to pluck some wings off bats, boil them with eyes of newt and distil the resulting mixture down to an interest rate decision.
Across the nation thousands pay close attention to every aspect of the
deliberations and complete secrecy is maintained to ensure that everyone gets the news at exactly the same time.
But what about APRA and its regulation of credit creation by the Australian Banking sector?
Good question because while the RBA has a spotlight on every action it takes, APRA engages in regulation of economic activity, that has equally important effects on the Australian economy, in almost complete darkness.
The latest “instant noodle” solution to Australia’s housing affordability crisis is “Build to rent”.
Rather than have “normal” people be able to buy a block of land in one of the largest and emptiest nations in the world and build their dream home, the new plan is to have mega corporations build cramped and congested skyboxes and rent them out.
A life time of renting for most Australians simply because our policy makers and politicians prefer that approach to actually trying to fix our demented and throughly broken banking and monetary system.
Whatever will they think of next? Continue reading