Links 30 January 2013

Here’s a list of things Reynard read over the long weekend.

Global Macro:

  • Exploring pro-cyclical budget positions – Bill Mitchell
  • Doubting the bull market in Treasuries is over – FT Alphaville
  • Currency Wars in the Era of Unconventional Monetary Policies – Econbrowser
  • Five things economists know about immigration – Washington Post

North America:

  • The foreign hands that help to shape Canadian home prices – The Globe and Mail
  • The surprisingly long path to US monetary union – FT Alphaville
  • U.S. home prices see best yearly gain since 2006 – Reuters
  • Case-Shiller: House Prices increased 5.5% year-over-year in November – Calculated Risk
  • Comment on House Prices, Real House Prices, and Price-to-Rent Ratio – Calculated Risk
  • US now produces 83.3% of its own energy — highest since 1990 – American Enterprise Institute
  • A Dose of Reality for Energy Policy – Conversable Economist
  • Bernanke Seen Buying $1.14 Trillion in Assets in 2014 – Bloomberg
  • Infrastructure investment can reduce America’s long-term debt – The Fiscal Times
  • Japan’s lessons for America’s budget warriors –
  • Consumer Confidence Hits Lowest Level Since November 2011 – Wall Street Journal
  • Analysis: Immigration reform could boost U.S. economic growth – Reuters
  • US gas exports a paper tiger – The AFR


  • Greek finance minister eyes 2014 recovery for economy – BBC
  • Interview on Britain and Europe with Former Prime Minister Tony Blair – Der Spiegel


  • China makes extensive use of surveillance cameras to silence, intimidate critics –
  • The great rollover of China: at least 3/4 of all local govt loans due by end of 2012 were extended – Financial Times
  • “Non-performing loans and assets along with corruption are becoming a real problem in Vietnam” – The Diplomat
  • China’s banks have become ‘too big to manage’ – Financial Times


  • One-third of loans in high risk mortgage funds in arrears – Australian Broker Online
  • Finance broker blows the lid on mortgage guarantor loans – Australian Broker Online
  • Terry Ryder: Australian property propaganda “criminally negligent” – Crikey. Funny how he never criticises the HIA housing affordability index showing Australian housing to be just as affordable as the mid-1990s. Wonder why?
  • Thanfully Catherine Cashmore provides a voice of reason amid the spruik and misinformation – Property Observer
  • Six high rise towers to replace former Age site on Spencer Street – Property Observer. Watch Vic dwelling approvals surge in January.
  • Adelaide court declares former ABC founder Eddy Groves bankrupt –
  • Labor savings will hit rich and middle classes – The AFR
  • Weight of money pumps share prices – The AFR
  • PM to target wealthy tax breaks & concessions – The SMH ; The Australian
  • Sluggish start to NSW FHB Grant – The SMH 
  • Business confidence on the mend – The Australian


  • Is storytelling a fundamental part of economics? – Tim Harford
  • Global mining giant Anglo American writes off $4bn loss on $8.6bn Brazilian iron ore project – Wall Street Journal
  • Derivatives trader: ‘The trouble is, regulators are idiots’ – The Guardian
  • NZ Government targets surplus – The Australian


    • I look forward to Abbot and Hockey’s cries of “class warfare” and attacks on “average Australians” [earning $100k/yr+].

      • doc,
        Similarly looking forward to the proceeds of those “savings” being put through the one armed bandits at the RSL clubs? That’s where a lot of Govt’s “savings” end up of course.

        Great economic management there.

        No, better return it to those who earned the money and will actually put it to some productive use.

        • No, better return it to those who earned the money and will actually put it to some productive use.

          By swapping more houses with each other and buying more foreign cars ?

          Yep, that’s definitely worth trading off healthcare, education and infrastructure for.

          Or have you figured out how to run a modern, civilised country without taxation and simply not told anyone ?

      • I’m not sure returning earnings back to those that earned it is “welfare” at all. Looks like return of property to me.

        There is no doubt that the redistribution of wealth that our Socialist Govt engages in is due to their Fabian heritage (wolf in sheeps clothing). The naive may not see that of course.

        • You’re onto them now. Before you know it Lenin’s corpse will be on display in Canberra and we’ll be queuing for bread.

  1. Gittins sounding remarkably sober today. Though not a word about private debt – it’s all about this mysterious lack of consumer confidence.

    “What interests me, however, is why the gloom of so many business people and consumers has so far greatly exceeded the reality. Why people’s perceptions of the state of the economy have been so much worse than what the hard facts tell us.”

    • What ‘hard facts’ is he talking about?

      The overriding ‘hard fact’ that will pervade the economic life-span of an entire generation will be known as the GFC. That is it.

      Once bitten…. twice shy.

      We are only still at the beginning of a depression that will make the violence that started in 1930 look tame.

    • “… the hard facts tell us”. Facts like those UE statistics?

      Yes well, ’nuff said about facts then.

  2. That anti-Demographia rant from Terry Ryder is truly bizarre.

    The most interesting piece of information to come out of the rant is that Mediawatch is investigating media coverage of the oz res property market. Now that would be worth an MB submission.
    Maybe a “greatest hits” of non-diclosure FHB stories?

    • Mining BoganMEMBER

      I like the bit that says don’t trust the media. I’m sure I’ve seen newspaper stories on the next hotspot to buy, recommended by him. So confusing…

      Anyhoos…Mediawatch submission. I think we’re okay for that. Those angry guys next door at Bubblepedia have been all over that for quite a while.

    • The Frost Report did a skit on that back in the 70’s. Some sample news items: “Scotland’s oldest man, Mr Angus McTavish, 109 last week, did not die today”; “bad news for 3 foot high dwarfs living in the Cairngorms: 4 foot high snowdrifts”.

    • Perhaps we could ask all our media organisations to do the same thing…perhaps until some time after mid-September?