Links 20 September

Global Macro:

North America:

  • Housing Starts increased to 750 thousand in August – Calculated Risk
  • Existing Home Sales in August: 4.82 million SAAR, 6.1 months of supply – Calculated Risk
  • Chart of the day, housing bubble edition – Reuters
  • Housing Rebounds, but Forward-Looking Indicators Cause Concern – Dallas Fed
  • So How’s That QE3 Working? « naked capitalism – Naked Capitalism


  • Deposit Flight From Europe Banks Eroding Common Currency – Bloomberg
  • Germany’s big worry: China, not Greece – Reuters
  • Euro-Zone Construction Falls – Wall Street Journal


  • BoJ follows QE3 with fresh stimulus – Financial Times
  • Japan government could run out of money by end-Nov – finance minister – Reuters
  • Japan Eases Monetary Policy in Surprise Move – Wall Street Journal
  • China’s thermal electric power output fell 6.3% yoy in August – Also Sprach Analyst
  • Crowd attacks US ambassador in Beijing – The Telegraph
  • Central Banker Calls for Selling Bonds to Local Residents – Caixin Online – Caixin Online
  • BoJ increases its asset purchase programme – The Big Picture
  • FT Alphaville » The BoJ’s feud-driven asset purchase extension – Financial Times
  • BOJ eases policy as Japan’s recovery prospects fade – Reuters


  • BHP Says Pace of China Iron Ore Demand Has Slowed by Half – Bloomberg
  • Brace for lower living standards as terms-of-trade unwinds – Garnaut – AFR – Must read article
  • Raise GST – tax experts – AFR How about a broad-based land values tax instead?
  • Ratings agencies see downside in Fortescue deal – SMH
  • Mining boom to drag on Australian economy within 18 months – SMH


  • Fire tornado captured on film in Australia – video – The Guardian
  • Asia’s millionaires outgrow those in N America – Financial Times


  1. constant gardener

    The Repricing of Oil:

    “Now that oil’s price revolution – a process that took ten years to complete – is self-evident, it is possible once again to start anew and ask: When will the next re-pricing phase begin?”

    By Gregor Macdonald who is an oil markets observer, journalist, and data analyst, and writes on the challenge of energy transition.


    First few paras;
    THERE is no relief in sight for Melbourne property owners, with prices set to fall for at least another year, according to a new survey.

    Australian Property Directions survey respondents, including Australia’s big banks, said that a recovery is not expected until 2014 when real estate markets in all of the nation’s capital cities are expected to improve.

    The news comes as Melbourne home owners refuse to meet the market, with auction listings significantly behind numbers recorded last year despite improved clearance rates.

    Significance of 2014??? I thought recovery was due in 2013?!

  3. How about a broad-based land values tax instead [of increasing GST]?

    How about both? I think this will be needed in the medium term as the changing of Australia’s demographic profile puts pressure on government budgets. The government sector is heading inexorably towards spending 40% of GDP with current program parameters.

    I can see a good case for broadening GST to include health care and education as well. Might encourage a bit of belt tightening in both areas.

    NB I am not normally a fan of increased government spending and increased taxes. However, the realities of an aging population need to be recognised.

  4. This proposal has serious merit.

    While some ministerial staff can, in theory, help reduce the ability of mandarins to pull the wool over a ministers eyes, for the most part they are now just used to introduce ‘political considerations’ into the independent advice that is offered.

    Golden rule of politics do anything you can to prevent being given advice that you don’t want to follow.