Links 18 October 2012

Global Macro:

North America:


  • Europe banking supervisor plan ‘illegal’ – Financial Times
  • Euro Zone Wants to Limit Cost of a Spain Bailout – Wall Street Journal
  • IMF urges aid for Italy, Spain but Rome baulking – Reuters
  • Greece ‘close to deal’ with lenders – Financial Times
  • Norway’s Housing Boom Could Lead to Spain-Style Bust, Say Some – CNBC
  • Greek Euro Exit Seen Possible in First Half by Roubini’s Greene – Bloomberg
  • Retirement no option for older workers in Europe – Bloomberg


  • In Reversal, Cash Leaks Out of China – Wall Street Journal
  • China Job Needs Show Why GDP Slowdown May Be Tolerated – Bloomberg
  • Against a Sea of Enemies: China as Currency Manipulator – Econbrowser
  • China-Bashing in Presidential Debates May Hurt Ties, Xinhua Says – Bloomberg
  • China premier says economy “good” ahead of GDP report – the SMH


  • Diaries of a property investing newbie – Bullion Baron
  • Sell the family jewels to pay for infrastructure investment – AFR
  • DOI wastes taxpayer dollars preventing AFR from revealing extent of car industry subsidies – AFR
  • Call for an overhaul of Australia’s industry policy – the SMH
  • BHP chief casts doubt on coking coal’s outlook – The Australian



  1. What will replace the globalization model? – Washington Post

    Oh noes.. Tis time for Tom Friedman to write another book – The world is spherical.

    And for our own Pascometer to push this new meme.

  2. Further to the FT story above re the “illegal” EU banking supervisor, via The Kouk / BS –

    “The battle lines are being drawn in the eurozone in response to a German policy proposal to have a so-called currency commissioner appointed with the power to oversee, and have the right to veto, member states’ fiscal policy settings…

    … The arbiter of what is right and wrong in an individual budget, or fiscally, according to Schaeuble, will be determined by the currency commissioner.”

    As I repeatedly argue here, the root issue that should be the prime focus of attention for everyone in terms of personal, national, and global affairs, is “money” (currency) – which as Sell On News argues, is simply rules – and more importantly, who has control over it.

    This central issue, and especially its ramifications re (loss of) national sovereignty, is perfectly clear from the above story, for any willing to look.

  3. Thanks for the “lifestyle diseases” link, IMO one of the more serious issues around. Very closely linked to other threads from today – transport, land planning etc.

    • Liveris was here about six months or so ago with the same message. Liveris well recognises the tremendous difficulty in getting any of the projects he favours off the ground – the environmental, capital funding, regulatory, carbon tax, industrial relations landscape all work in opposition to achieving his vision. Sadly.

      Truth is, unless we harness potential to hand and actively support and promote Liveris style initiatives we will remain reliant on our resource base. At least we have that.

    • Yorrick, from a Deloitte’s report on manufacturing competitiveness:

      “In today’s environment, manufacturing competitiveness is driven by an empowered talent base, especially as manufacturers around the world integrate technology platforms and interfaces into their products.”

      The other two competitive drivers rounding out the top three are:

      Cost of labor and materials — “The overall cost of labor — including all costs of development, compliance and employee benefits, along with the total cost of materials, which include logistics costs and material availability — continues to be a critical driver of manufacturing competitiveness,” the report explains.
      Energy costs and policies — As energy becomes scarce and countries compete to attain energy security and independence, the cost competitiveness of energy, and particularly country-specific clean and sustainable energy leadership, will be a prominent component of [national] manufacturing competitiveness,” according to the findings.

      The remaining drivers of global manufacturing competitiveness are as follows (in order of importance): economic, trade, financial and tax systems; quality of physical infrastructure; government investments in manufacturing and innovation; legal and regulatory systems; supplier networks; local business dynamics; and quality and availability of health care.

      The study also shows that the “epicenter” for manufacturing is continuing to shift toward emerging markets and Asia in particular.”

      How would you rate Australian prospects given current domestic environment?