Weekend Links 15th-16th August 2015

20209372985_2a86e71b0f_z

Sunrise over Byron Bay – DE

Asia

Europe

United States

Americas

No idea Land

Global Macro

…and furthermore…

 

Comments

    • Another gloomy picture. Professor Kevin Anderson, Professor of Energy and Climate Change at the University of Manchester, UK, says that we need to immediately begin a drastic scale down of carbon emissions to prevent a collapse of the climate system. The Copenhagen Accord of 2010 stated that the increase in global temperature needs to be held below 2 degrees Celsius in order to avoid dangerous climate change. Anderson says that by postponing carbon reduction we are already on our way to a 4 degree Celsius warming.

      Podcast: Download / Listen

    • Spending stops when people are maxed out and dead broke. And then prices drop, because no-one can afford anything anymore.

      Indeed. So, of course, let us all celebrate lower wages while lauding higher prices for housing; let’s cut off the young at their heels by charging them more to study, bringing in as many 457s as we can, and promoting tax cuts for businesses without any concomitant obligation to train and employ Australians.

      Future generations will be aghast at a society that so blithely betrayed its young, marvel at so much good fortune burned in so short a time, for so little gain. And the ones that did gain, who gamed this system for their own benefit, will be long gone, untouchable.

    • bolstroodMEMBER

      @2big2fail Your & Revert2mean’s comments (links) would appear to cancel each other.
      The Great Deflation may cut our CO2 emissions enough to buy the time we need to make the drastic cuts to CO2 to stave off 4 degrees of GW

      • interested party

        That is pretty ef’d up from my perspective…….in that it will take economic collapse or peak oil/economic collapse to maybe….only maybe……give us a chance to stop warming at a temp that is close to or above what we can hopefully adapt to…….hmmm……yep, that’s ef’d up in my book.

        Humans, as the ultimate predator on this planet…and as the final arbiter and the custodian of the same, we have failed miserably. No other species requires ‘more’. Every other species is satisfied with ‘enough’.
        Through ‘economics’ we conspire to increase what we have, over and above what is needed……and this conspiratorial process just delivers anxiety and stress.
        We maybe brilliant and ingenious………..but bloody hell we are dangerously inept at the same time.

      • Interested party,
        Guardian edited extract from Ten Billion, by Stephen Emmott (with some mind-boggling statistics)
        http://www.theguardian.com/environment/2013/jun/30/stephen-emmott-ten-billion
        Let’s look at it like this. If we discovered tomorrow that there was an asteroid on a collision course with Earth and – because physics is a fairly simple science – we were able to calculate that it was going to hit Earth on 3 June 2072, and we knew that its impact was going to wipe out 70% of all life on Earth, governments worldwide would marshal the entire planet into unprecedented action. Every scientist, engineer, university and business would be enlisted: half to find a way of stopping it, the other half to find a way for our species to survive and rebuild if the first option proved unsuccessful. We are in almost precisely that situation now, except that there isn’t a specific date and there isn’t an asteroid. The problem is us. Why are we not doing more about the situation we’re in – given the scale of the problem and the urgency needed – I simply cannot understand. We’re spending €8bn at Cern to discover evidence of a particle called the Higgs boson, which may or may not eventually explain mass and provide a partial thumbs-up for the standard model of particle physics. And Cern’s physicists are keen to tell us it is the biggest, most important experiment on Earth. It isn’t. The biggest and most important experiment on Earth is the one we’re all conducting, right now, on Earth itself. Only an idiot would deny that there is a limit to how many people our Earth can support. The question is, is it seven billion (our current population), 10 billion or 28 billion? I think we’ve already gone past it. Well past it.

      • IP ‘Climate Change’ for whatever reason is not the ONLY environmental concern for humanity despite the efforts of those with their ego or careers firmly buried in that camp. There are other issues. YES! We have to limit consumption especially by the over-indulged Western world. The Chinese et al ‘want the good life too’ How the hell is that going to happen while we continue to grow over-indulgent consumption? One way or another – it ain’t
        Cheers IP Good to see your posts from time to time.

      • interested party

        Flawse, thanks for the kind words.
        Mate, there is not much you can tell me about the other problems, and I mean that in a humble way. The climate is the end result. It is the symptom of a disease called ‘western civilization’.
        I visit regularly here but only post sporadically because I get pissed off with all the economic crap….because that is what has put us in this mess. It just measures how much bulls##t someone has, or does, or thinks…..and tries to identify ways to increase each amount of that bulls##t so the recipient can ‘feel’ better at the next group circle-jerk/bbq/whatever.
        Hollow lives……lived at full throttle….never looking backwards at the carnage.
        I guess I just get tired of all the crap.

      • bolstroodMEMBER

        @IP “That’s pretty Ef’d up from my perspective…”
        I completely agree, but this is the lunatic situation we have created , by prevaricating & not taking heed of the science. I am deeply concerned that the climate changes are occurring much faster than predicted. I put this to a group of CSIRO & Bof M scientists back in 2007. Their reply was that they thought the same but at that stage did not have the data to back it up.
        Since then our (World) emissions have blown out big time. Let’s hope there is still a window to act in a way that keeps CO2 levels below the threshold that will produce 2 degrees av. increase on pre-industrial levels.

      • IP, interestingly enough, there was a rebuttal in the Guardian for Emmott’s claims a week or so after the first article (Link below).
        http://www.theguardian.com/environment/2013/jul/09/stephen-emmott-population-book-misanthropic
        I have not read the book, but It does appear that he got few facts wrong (based on the link above). Obviously it’s a very complex topic and there are many diverse viewpoints. I agree with you that “wanting more at any cost” is very destructive to both the planet and our well being.

      • interested party

        2b2f,
        Fantastic that you are investigating.
        The article you attached has only touched on the subject. Permaculture was deliberately kept from universities and academia for many reasons…..mostly to keep it in the hands of the people who have studied it ( I am one of thousands worldwide) and not get captured by the system. Bill Mollison copyrighted the term ‘Permaculture’ and has granted all holders of a Permaculture Design Certificate freedom and ownership of the term and the design science.

        My personal experience with it has been nothing short of life changing. I am happier, more certain of my future, healthier, I definitely feel wealthier, we run the house on 1 part time wage, and we are in a position to help and guide others to achieve the same freedoms we have gained. I honestly do recommend it to everyone.
        http://www.geofflawton.com
        That is a start for you. Supply an email address and sit down for a day or two and watch the videos on what is going on within the permaculture movement worldwide.

        You will see that you can take the crappiest block of dirt and transform it into a paradise…literally. And totally outside the bullshit system most are trapped in.

        edit to add…..noticed your use of the term ‘debate’ ……..mate, there is no debate from where i am sitting. You want food security and the health benefits that come from eating the absolute best food know to mankind????……study permaculture!!!

  1. Moving to the London exurbs and beyond … Wendell Cox … New Geography

    http://www.newgeography.com/content/005020-moving-london-exurbs-and-beyond

    A review of the most recent internal migration (domestic migration) in England and Wales reveals some surprises. The latest data covers the one year ended June 30, 2014. It was published by the Office of National Statistics (ONS) and provides estimates at least down to the local authority area (municipality). In this regard, is positioned along with a number of European nations and the Australian Bureau of statistics well ahead of the US Census Bureau, which provides estimates only to the county level. … read more via hyperlink above …

  2. A full-on public discussion in Auckland, led by the NZ Herald … how to make it better …

    World-Class Auckland: How to improve New Zealand’s largest city – World-Class Auckland – NZ Herald News

    http://www.nzherald.co.nz/world-class-auckland-best-city-on-earth-herald/news/article.cfm?c_id=1503861&objectid=11496080

    Auckland consistently ranks highly in lists of the world’s best cities but is never number one. So what would it take to turn Auckland into a first-class city?

    The Herald’s World-Class Auckland series examines some of the biggest hurdles Auckland faces, from housing and transport to entertainment and education. We look at what we are doing, what we need to do, and why Auckland’s success matters to the rest of the country. … read more via hyperlink above …

    • “What would it take to turn Auckland in to a first-class city?”

      Let me guess; release a heap of land to developers?

      • The Traveling Wilbur

        @Sweeper: Nup. Either moving it to Europe or moving the current population to Stewart Island.

        TTW… not JAFA…

  3. Why the United Kingdom will never allow affordable housing to be built … just 9% is urbanised … culture does matter …

    … and too … why people migrate from the Old World to the New ..

    Read this feudal rot …

    The angst over milk is about the future of our countryside | Simon Jenkins | Comment is free | The Guardian

    http://www.theguardian.com/commentisfree/2015/aug/13/farmers-protests-milk-prices-alarm-rural-economy

    … extract …

    Most Britons unquestionably do not want this. The countryside and its champions (such as the National Trust) are ranked as most treasured in opinion polls, along with the royal family and Shakespeare. Hills, coasts, green belts and areas of natural beauty are fiercely defended, as are rural villages, historic towns and cathedral cities. It is the bits in between that are challenged, the 70% of Britain’s land area that remains at the mercy of that wayward tyrant, agricultural economics. … read more via hyperlink above …

    • Most Brits don’t want this on account they believe a) That the UK is already 30%++ concreted over, and b) That building enough proper housing for the currently sad and un-properly housed would concrete over another 20%. In fact it would require building on (I believe) less than 1% of the green space. The 9% figure includes roads, rail and industrial etc so housing only a part of it all. The upper classes who are running the campaign are the very same people who wanted mass immigration to keep wages down (sound familiar) and do not want the general population to know the real figures involved in land use.

  4. Hugh, would it be possible for you to include all your links in a single comment on Saturday morning? I find your multiple consecutive comments annoying. Perhaps it’s just me. Happy for you to share interesting articles of course. Cheers.

    • Hugh PavletichMEMBER

      Monkey … just to be clear … I will aggregate to a max of 3 articles wherever possible, for specific themes / issues. Going above that appears to land in MBs moderation / oblivion for reasons unknown.

      As the co-author of the Annual Demographia Survey ( http://www.demographia.com & http://www.PerformanceUrbanPlanning.org ), I’m dealing with this public policy stuff full time internationally. So if there is material drawn to my attention, I think may be of particular interest to MB readers, I tend to do so, as and where appropriate and as time allows.

      In my view MB has evolved to become THE major “meeting place” in Australia and New Zealand for reporting and discussing major economic trends / events and public policy issues … with a leftie tinge, which I enjoy taking a dig at occasionally! Its a great credit to David, Leith and the numerous other contributors and participants.

      • Thanks Hugh. It’s up to you and the moderators of course. It’s not really a big deal to have to scroll through multiple comments from you, which are generally relevant and interesting. Hope my original comment was taken as constructive criticism. Cheers.

  5. http://www.smh.com.au/nsw/lindt-cafe-siege-records-of-man-monis-bail-applications-excluded-from-inquest-20150813-giye2i.html

    Can someone please explain why the legal system is above investigation in regards to the lindt cafe siege – it seems to me if any part of our system failed it was the legal system but yet as usual the lawyers have squirmed out of being investigated let along being held accountable despite the fact they get to hold inquiry’s every time some other part of society needs a light shone on it.

    • Sam, the NSW Coroner who found that certain documents were covered by professional privilege is part of the executive arm of the government and not part of the judicial arm of government. It should also be realised that the Director of Public Prosecutions and police are also part of the executive arm and not the judicial arm. Also, legal professional privilege has to do with protecting lawyers’ clients, not lawyers. As the article points out, the Director of the Public Prosecutions may waive that privilege. As such, the question that comes to my mind after reading the article is why would the Director of Public Prosecutions not waive the privilege. If the Director of Public Prosecutions decides not to do so, there is always the option to appeal the NSW Coroner’s decision.

      • Might it be “Islam sensitive”? And who are (were) the DPP ‘clients’, the crown ie the NSW Government? Bit confused with your explanation.

      • A Western government, such as an Australian federal government or an Australian state government, should be understood as having three arms. One arm being the parliament, another arm being the executive/administration (with the crown at the head), and the third arm being the judiciary. The judiciary is considered independent of the other two arms, especially in respect of making its decisions. I think much confusion abounds due to public bodies, which are part of the executive/administration arm of the government, making quasi-judicial decisions. Just because those public bodies make those decisions does not make those bodies part of the judiciary. Maybe I should also mention the following. Those public bodies come into existence and remain in existence due legislation and legislation comes into existence and remain in existence due to the parliament.

        As to your question, it was determined that the Director of the DPP was a client of the DPP solicitors. As a consequence, the Director was entitled to legal professional privilege. The problem as I see it is as follows. The Director is an executive employee and was acting as such when communicating with the DPP lawyers. The Parliament talks about open government (which includes the executive arm of the government). There seems to be an inconsistency here.

      • Thank you Michael, so it would seem likely that the current argument will not stop the documents becoming available, well should not anyway.

      • Yes, that paper by Frosti is great as it provides a very easy to understand explanation of the issues. There are a few general variants on a similar theme.

        1. Return control of the public currency to the public.

        2. Separate the currency creation issue from the how to distribute it question.

        Just about anything along those lines will be massive improvement on the current parasitical model which has an ever lengthening track record of failure and perhaps worst of all driving increasing inequality that is not related to innovation, hard work and application.

  6. The pool of available investment patsies never seems to dry;
    http://www.theage.com.au/business/property/watchdog-moves-on-land-banking-as-investors-fear-losses-20150814-giz0ou.html

    ‘Just last week, McIntyre’s 21st Century wrote again to Johnson urging him to invest in its latest venture, an “exclusive cashflow” property opportunity in the Pilbara.

    “As long as you have an income in excess of $80,000 (this can be combined) you can potentially secure one of these positively geared properties,” says the McIntyre promotion. “It all has to do with the mining boom which by the way has no chance of drying up any time soon.”

    • I guess that is another effect of the bubble, it makes scams like this seem totally plausible.

    • I’m waiting for prosecutions and return to market normality before calling this a success. Part of the response from the agent reads like a puerile piss take, which makes me wonder if its genuine. As we’ve seen from other articles this morning, the property industry can offer advice and blatantly rip people off with complete impunity, so what’s the risk of a couple of throw away lines?

      • Fair enough. I’m really looking forward to any agents receiving their criminal and civil penalties if they’ve participated… and since the penalty is per offence this’ll stack up to several life sentences rather quickly. Good.

    • The ATO only need to round up a few of those who accepting $50 to be a ‘front man’ for a property title and give them a good smack and that practice might dry up very quickly.

      One of the problems with putting someone else’s name on the title to your property to evade regulation is that if your front man rips you off, taking them to court can be more than a bit risky.

      Only a few months before we find out if the ATO task force are armed with sticks or lettuce leaves.

      • Funny…. A friend that has spent much of the last decade as a teacher at universal schools, in China, once rented an apartment for a year, only to be approached by some guy claiming he was the lawful owner and demanded back rent. Huge row out on the street with Chinese girl friend, police and preclaimant, with much hand waving, gnashing of teeth, rending of hair.

        At the end of it all, it was determined that my friend had been paying some other building tenant, who after the last occupant had left cut a key and advertised the rental, unbeknownst to the actual owner.

        Skippy…. I hear is not all that uncommon…

      • ATO can sort this out pretty quickly.
        Match State Land Dept titles to buyer eligibility to financing audit.
        Go back 5 years, include all sales to students and temp visa holders.
        Audit funding for purchases by Investor Clubs in major cities.
        Illegal purchases automatically sold through State Public Trustee Offices.
        Short-circuit attempts to on-sell illegal property to friend at discount.
        Property to be advertised for 4 weeks before auction by Public Trustee.
        Auction buyer’s finances to be audited after sale.
        ATO has been given a licence to print money, use it.

    • TailorTrashMEMBER

      If this is really “game on” from the ATO then I’ll feel better about all the money they meticulously took from me over the years .
      I love that comment about “tens of thousands of illegal properties “……….that sounds right if not a little understated !!
      Let’s hope that the 50 investigators start getting the facts ready for prosecutions soon and we start collecting the penalties so we can fund another other 50 or 500 investigators . If the data matching geeks at ATO really get going this disgrace can be stomped out for good . Let’s send a message that everyone in Australia lives under the protection of the law but with that protection comes the obligation to respect that law . Foreigen non tax paying non citizens who disrespect our laws need to be shown that the law also applies to them and they need to be given a significant penalty for their disrespect.

    • Thanks for posting this stomper. I recall a week ago many posters were decrying the capability of the ATO to follow through chasing illegal foreign investment. I made the point then and will say again that the ATO’s analytic capability of data matching/mining is awesome. The example I described last week of the tradies GST underpayments demands of billions was enabled by the ATO data matching from Bunnings which matched the tradies BAS against their trade accounts/credit cards.
      Every transaction/form/registration leaving an electronic footprint can be collected and evaluated against comparative information, not necessarily numerical but broad data thus permitting scrutiny. Re transactions would be relatively easy and we will see more revelations as the data mining exercise develops.
      This technology ramping ATO capability has been in play for over a decade. Originally devised in conjunction with the ANU, the technology has been transferred to the ATO and staff from the ANU are now directly employed by the ATO. RE is only one of many that will feel the pinch. Simeon should have kept his trap shut.

      • Well – in this case I say “good!! About f**@#!!ing time they smite someone who deserves it for once!”

      • They can try BCF and the like as well. Problem is they’ll never catch the shiftiest ones who transact 100% in cash. Better than nothing though.

      • The ATO investigate and prosecute breaches of the Commonwealth Tax legislation.
        They don’t investigate or prosecute drug offences or sex offences or breaches of the civil aviation act.
        What makes anyone think the ATO are doing anything more than investigating potential breaches of the tax law?
        An unapproved foreign national can illegally purchase an Australian dwelling,in their own name, without breaching the tax laws

      • The ATO does whatever the Treasurer tells it to do. The treasurer has statutory authority over the administration if the foreign takeovers act and the ATO so if he claims to have directed the ATO to look for breaches of the foreign takeovers act that relate to RE the only issue at stake is whether he’s lying.

      • The appalling lack of transparency continues
        The appalling lack of data continues
        The sham continues

      • A simple exercise in the run up to November would be for the tax office to write a letter to all new transferees registered at the state LTOs in the following terms.

        1. Hi and grats on your purchase.

        2. See we know who you are where you live.

        3. Just a little reminder as to the law regarding property ownership.

        4. We hope none of the above applies to you!

        5. If it does let us know before November and we go soft on you.

        6. if it does and you think we will not come and get you be warned!

        PS – do you and your lawyer, accountant and real estate agent and ‘beneficial’ owner look good in green?

        Wil only cost the price of a stamp!

    • TailorTrashMEMBER

      This should also be interesting when the ATO matches up all those on student visa who paid over 1 million for a house in Sydney or Melbourne ……perhaps some scrutiny on the sources and flow of money will yeild some tidy returns for the ATO and the Australian tax payer ……..bring it on ….please !

    • What a strange story.
      Simeon tells Schlesinger he was cold-called/emailed by the ATO claiming they were serious about “cracking down”.
      No confirmation from the ATO. No copy of the email
      But a nameless ATO “source” says “If anyone looks like the have information, we will follow it up”
      Followed by quotes from Simeon saying what they should do
      Followed by old quotes from Hockey saying what he might do
      Weird
      Still ZERO prosecutions commenced in 8yrs

    • BoomToBustMEMBER

      Odd are that real estate agents who have been doing the wrong thing will squeal like little piggies for a reduced punishment when the ATO comes knocking.

  7. Glad to see the story on ARC fusion reactor at MIT. I wish the RET was used to have this tech developed in Australia The IP would be incredibly valuable. Would help take a lot of the politics out of the whole renewables debate whilst developing world leading tech here in Australia. It is just now a matter of time before we nut out fusion power and we should be leading the charge!!!

    • St JacquesMEMBER

      You’d know better than myself, but since the Soviets invented the tokamak in 1956, people have been saying it was only a matter of time before the technical problems of making it work in a practical way were ironed out, but I hardly think any of them expected the technical issues to be so difficult to overcome. Imagine what it would do to energy stocks if they’d succeed soon. Time will tell….
      (By the way, I agree with you! Instead, our government is determined to push ahead with uneconomic coal mines.)

    • The big problem is emulating the gravity you get on the sun, on earth. It will be figured out. The frustration for me is this is an issue those who do not believe climate change to be a major issue and those who do can agree on. I think everyone can agree on endless cheap energy that produces no emissions is a great thing. Mankind has overcome greater obstacles than this. The major obstacle is funding.

      • I forgot about you. Last time I saw your post you claimed to be my father. Then you were celebrating increased drug use in West Virginia as coal miners lost their jobs. You take joy in human misery
        If cheap energy causes increased populations then why is Japan’s population dropping and yet Palestine’s is increasing? The freer people are and the more empowered people are the lower the birth rate. This is born out in nearly every OECD country.
        You just hate humanity. This is why you push the CC agenda so much. Not to save the earth but to make life so expensive that we all live in misery. Fusion Power challenges all your ideals so now you concentrate on population. “Much that passes as idealism is disguised hatred or disguised love of power.” – Bertrand Russell. That is you all over R2M.

      • St JacquesMEMBER

        Population growth slows and stops and even reverses as countries become richer. The West and Asia are leading the way in this, and even in Latin America and India the slowdown is noticeable. It is Africa where the uncontrolled population growth is still a big problem. The cheap energy could also be used to clean up a lot of the mess too. An abundant supply of ultra cheap energy would cause other problems, but that would force societies to squarely face the real issue – the whole gdp growth thingy’s effects on the environment.

      • If copious energy is removed from the equation, the human population will fall to sustainable levels (1-2 billion). That’s what we need, not cornucopian wet dreams of unlimited energy. 🙄

      • Malcolm, sure RPs comment was harsh, but it was in response to R2Ms rather offhand suggestion that billions of people need to die to make some sort of sustainable future rather than consider a technology that gives a chance of supporting the population we have now, and will have in future.

    • Nah mate! Coal all the way – it’s good for humanity!

      And no! Funding is not a major obstacle – a major obstacle is and always has been ideology. Get ideology out of the way and you can sort out the funding.

    • The liquid coats the reactor, gets heated by the fusion going on inside, and then is fed through a high-efficiency Brayton cycle engine to generate electricity.

      still boiling water…not that there is anything wrong with that

  8. original text:
    The future’s so bright that I’ve gotta wear shades
    This was the exact message I was asked to deliver to a dinner party hosted for some very important investors.
    By all business metrics the statement is true, it’s hard to imagine that our company could be doing any better, yet still something eats away at my confidence as I deliver this message. I just cant deliver the phrases with the confidence it deserves, WHY? I’m normally optimistic and simply not the melancholy type yet something eats away at my confidence. Statisticians would call this Long Tail risk, Economists might call it Black swan events, my mum would call it confidence “white-anting” and dismiss it as something you needed to put out of your mind and just get on with the job.
    In the end my acting abilities failed me, verbally I delivered the message but my body language hedged every positive statement that my lips spoke. …I was really disappointed in myself, I had a simple positive message to deliver and all the facts supported this position yet I failed to deliver the message with confidence.
    In a strange twist of fate the most important investor in the room approached me latter to confirm that he would be substantially increasing his position, and went on to tell me how many similar presentations he’d attended in the last month all delivering the same positive message. So why invest more with us, I asked politely. The answer was simply that my body language was hedging every word my mouth spoke…in his opinion that’s precisely the balance that’s needed over the next 3 to 5 years
    Talk about a strange world I @#$%ed up the presentation and that’s what sealed the deal.
    It got me wondering if Australia is not in the same position, lots of positives (especially house prices, mining volume, LNG coming on line) so as an economy we have good reason to celebrate however our collective body language suggests a more constrained enthusiasm….maybe this is exactly what’s required over the next 3 to 5 years.

    • Thanks for your honesty.

      There are a lot of blind Freddie’s out there. I’ve worked for at least three of them. They’ve all got caught out in the end.

      • Hi Escobar,
        I shared this experience because it occurred to that there are a ;lot of parallels between whats happening in the Australian economy and whats happening in my own business life.
        I spent over 30 years in the Engineering sector designing, developing and manufacturing products, real tangible products. There’s no bullshit in this sector consumers either buy YOUR product or they dont, if they dont buy you go broke…nothing is more certain
        By contrast today I work in the Hedge fund industry, I produce nothing tangible and I’ll go even further and say that absolutely nothing tangible is produced as a result of my participation in the economy, we truly are parasites. Strange thing is from a monetary remuneration perspective I’ve been better rewarded people are queuing up to pay me more and more for doing what? It’s all rather basic engineering principles just applied to financial products nothing amazing
        IS it possible that our society somehow unconsciously recognizes the need to destroy its own productive capacity? If so the most straight forward way to achieve this outcome is to reward those that would build factories and tangible goods for not doing so. Its hard to imagine a more narcissistic world view but it does seem to explain many societal/economic trends that are otherwise incomprehensible.

        In Australia I see much the same change with an ever larger portion of the population involved in FIRE industries, yet despite this change we restrict urban development in ways that make an elastic supply response impossible we then construct a Finance system that delivers ever more money (credit/debt) to be divided across the existing asset base. It’s stupidity writ large but reality none the less.

        All leads me to wonder if my personal journey is any different to Australia’s collective journey. Both paths suggest a certain self defeating pathological narcissism is the main driving force within society hardly the homoeconomicus model . Collectively we are inventing the system that rewards the destruction of our own productive capacity, wow Freud would love this outcome.
        Hmmm I discussed these thoughts with a retired World bank economist (over a glass or two of rather fine old whisky) and was surprised by his response…..Don’t you think we’ve simply invented a system to deliver the same outcome as a war? Bretton Woods was an accord hammered out with the goal of removing the economic need for global war but it ignored the possibility that war’s were simply the collective manifestation of some deep seated need to destroy our own productive capacity.

        Oh well thought like that will just have me reaching for another glass of that fine old whiskey, so it’s a good job that I have the reddies to indulge this vice.

      • You control your own destiny, China-Bob, and I’d argue that you need to re-examine your premise that it is “society” elevating your current role over real, productive, work.

        You’re clearly extremely intelligent, and quite wealthy. Why not have a swing at being another Elon Musk rather than coming up with a better way to skim pennies off people’s retirement funds ?

      • @drsmithy
        You know what, I probably will but not until I believe I’ve achieved excellence in my current endeavor. That’s just the way I am, I wouldn’t get a moments sleep knowing that I left a job half done. When I know I’ve performed in this business better than all my peers, that’s when I’ll hangup my hat, hubris maybe but it’s the way I am.
        On another level, it’s one thing to sit on the outside critiquing that which you dont properly understand, it’s another to be on the inside and know exactly what’s really happening. So for my own education I want to know what really moves and motivates the serious money without that knowledge you’re always tapping into inferior finance streams while the real money flows who knows where, some day I’d like to be in a position where the real money was investing along side me, imagine what could be achieved if Australian super had a purpose.

      • CB
        “war’s were simply the collective manifestation of some deep seated need to destroy our own productive capacity.”

        Didn’t Marx and Engels state something to that effect back in the 19th century?

      • I remember that Heinburg fellow from back in the early-mid 2000s when I followed the peak oil debate for a while. Back then all the doomers were convinced we’d be living in caves by 2010. Meanwhile life goes on the doomers keep on dooming…

      • interested party

        Thanks for the link R2M.

        John, no one said it was a one innings game so take care you don’t get blind-sided. When ( yes…when, not if ) the sh#t hits, don’t say you never saw it coming. That goes for all the fence sitters and the tribe that argue too much.

      • interested party

        Invest some time in this. You talk of steady state, then here is the path to that outcome and we don’t need a cull to achieve it. Just a re-definition of ‘living’ for many.
        Kick back into quality of life…not quantity of life.
        https://youtu.be/eIdHaAnNaJo

        ps. Proud to say this bloke was/is my teacher.

      • interested party

        r2m,
        I guess we diverge on this subject a little. I agree with Lawton who believes that we need every set of hands putting as much land as possible under permaculture design and in doing so we mitigate most if not all contentious habits that are causing grief.
        The hurdle we face getting that happening is that most people still see permaculture as a “poor” lifestyle….they are hung-up on counting paper/trinkets/image as measures of wealth, yet still work/commute/consume/upscale/complain about all things wrong then continue the madness on Monday morning. I submit to you and all here that true wealth is having the best food you can eat….at your back door, no mad commute…… as you produce most if not all that you need where you live. No chemical residue in your food or water, plenty of time to have good conversation with good friends and interested strangers, and the work that is required is good healthy hands-on work that has meaning, substance, is measurable, gives un-biased feedback, all very fulfilling.
        I know you are aware of the outcomes in this way of life….I hope to strike a chord with other readers/posters and get another set of hands involved with the mitigation efforts. They will find it becomes a true win-win situation. Life becomes a whole lot more worthwhile….at the same time we reverse a small bit of the damage the western ways have visited upon this place we call home.

        Re-define wealth internally, tell all that you care not for their envy, step into a very healthy slow paced natural way of living…..it’s bloody enjoyable…….and from this vantage point you will understand that there is plenty of room for every soul living today, and capacity for all to eat and live better/healthier while simultaneously repairing the planet. It can be done…but we need to start with rejecting conventional definitions of wealth and lifestyle. That is the problem we face…not overpopulation.

      • IP, I’m completely on board with all you say, in fact I’m living the permaculture lifestyle right now, and have been for years. Grow lot of my own food, solar power, etc.

        But there is no way 7-9B people can live like this. We’re going to have a die-off this century.

      • What exprtise does Ehlrich have in demographics or population? What has he learnt in all these decades of spruiking the ‘population bomb’ (due his focus upon fertility in and immigration from non-European developing world)? World population is stabilising with increased education, economic well being and accordingly longevity; baby boomers have been and will be driving population growth, not ‘immigrants’ and people from less developed world.

        The question for Ehrlich, sponsors and followers should be, ‘in future, if population growth needs to be addressed to keep within ‘limits to growth’, by stabilisation and/or decrease, how will this be achieved?’

        Keeping in mind ageing of resident populations has become a key driver of population growth (cf ‘immigration’ and fertility), how does Ehrlich et al propose dealing with this increasing baby boomer bubble?

        All the while the population ‘issue’ is presented as an environmental issue of the left, when in fact left/right is irrelevant, but the key question is, who decides on a ‘steady state’ economy, if population (growth) is to be halted etc.?

        ‘Why the population bomb is a Rockefeller baby. Paul Ehrlich is a nice man. He doesn’t hate blacks, advocate genocide or defend the empire. He simply believes that the world has too many people and he’s ready at the drop of a diaper pin to say so. He’s written his message in The Population Bomb, lectured it in universities and churches, and twice used America’s own form of birth control, the late-night Johnny Carson Show, to regale bleary-eyed moms and dads with tales of a standing-room-only world, a time of famines, plague and pestilence….’ http://pulsemedia.org/2009/10/03/why-the-population-bomb-is-a-rockefeller-baby/

        Hint: Issue is not really about how many or the quantitative, it’s the qualitative, who breeds, who should/shouldn’t and who gets to choose on breeding?

        Think former Labor politician and IPA person Gary Johns has the idea, has written openly of sterilisation in an Online Opinion article……

  9. Cancelled my macrobusiness subscription and will rejoin in 2016. I think i will take some more time off of work and begin to action my plans are as we enter a new chapter here in WA after the boom. I see more people around me buying more properties while for lease signs popping up on commercial and home property. Hrm interesting times indeed.

      • Yes agree they probably see the dip as a good time to buy and many people i know here have been permanently employed for the last 4 – 5 years and perhaps see the cycle not ending.

  10. Third parties who are residents or citizens and buy on behalf of foreign nationals may be libel to pay a gift tax on the money if it does not meet other requirements for exemption.

    ATO must apply a caveat or lien on any of the properties whose transfer transactions appear suspicious.

    • This is an important point. It seems that the person fronting for the foreigner will not be able to transfer the title back to the foreigner or sell the house and give the proceeds to the foreigner without that person incurring gift tax unless the person comes clean about the initial transaction, which attracts FIRB penalties for both involved. Anyway, with data mining a government agency should be able to pick up on all these types of transactions to apply FIRB penalties. Lot of risk and hassle for a $50 fee.

  11. bolstroodMEMBER

    Ok so i’m allowed to post a comment.So what happend to my 2 attempts to post a reply ?
    Will try again.

  12. That story on the damage caused by gold mining in the Amazon highlights another reason going back to a gold standard would be a really bad idea. Imagine the environmental damage and toxic pollution caused by the huge increase in both legal and illegal gold mining such a decision would cause, it would be monumental.

      • We don’t have a steady state economy, nor will we have one anytime soon given global population will continue to rise for some time yet, not to mention those living in poorer countries might like to improve their standard of living which implies growing economic activity and a growing money supply, and thus a growing demand for gold under such a system.

        And even if we did somehow attain a steady state economy, there will be greedy people who will want more, much much more, and they will go and dig it up wherever it may be, because it will in effect be ‘printing money’.

      • We don’t have a steady state economy,

        Yet. But we will have, after the necessary decade or two of deflation. It’s completely inevitable.

        And even if we did somehow attain a steady state economy, there will be greedy people who will want more, much much more, and they will go and dig it up wherever it may be, because it will in effect be ‘printing money’.

        You assume the same dog-eat-dog, unbridled capitalism and self-interest, “wild west” atmosphere will pertain in the new era. That’s a silly assumption.

      • interested party

        Steady state??????
        Nope. Not if humans are involved. Boom..bust…boom…bust …..till the lights go out.

      • Skip and IP, don’t make the elementary mistake of thinking things can never change. Nassim Taleb has a name for that sort of thinking…

      • interested party

        r2m
        Change is certain.
        To get to a steady state, we would need to revert back to the old ways…..tribal, sustainable, live within the natural systems boundaries. I cannot see ‘modern’ man living under the limits that implies.

        Reading “Wisdom of the Elders” at the moment. The western ways can never be steady state…….never. Nor sustainable.

      • R2M,

        Once chronic deflation takes hold, it will be a very different world indeed. For example, why should Apple or CSL invest in the next generation of products, let alone new technologies? Surely the best strategy for Apple or CSL would be to just sit on its cash pile, instead of spending it to invent new products which are now guaranteed to return less and less with time. Since the same can be said to all the other manufacturers and pharmaceuticals, Apple or CSL will be able to keep selling the same old products year after year, without any threat of competition.

      • R2M ‘You assume the same dog-eat-dog, unbridled capitalism and self-interest……’

        Can you explain then, why is it that fossil fuel producing capitalists informed and helped create the pseudoscientific meme ‘steady state economy’ via the the Club of Rome ‘experts’, i.e. sponsored by the Rockefellers? Or have they something different about them e.g. they are happy to have less influence and capital to their own disadvantage ? Probably not……

    • Seems to me that much more damage could be done to the earth with a monetary system whereby limitless debt coupons are issued in exchange for products and services, rather than one which is limited by the availability of a physical resource.

      But as highlighted above, there doesn’t need to be more Gold for it to be used in a monetary role, it’s just a matter of what value we assign that we already have.

      • But the total money supply must keep increasing to avoid deflation, as long as all debts incur positive (non-zero) interests. If we have to routinely debase the currency that is pegged to gold, then we may as well keep the fiats for everyday transactions and use gold exclusively for hoarding of wealth.

      • “Distraction and spin

        The bunker economists tell people that a return to the gold standard will solve our problems but it definitively will not. When household consumption collapsed in the wake of 2008 the government had to step in to provide spending to keep the economy afloat and the unemployed fed. A gold standard would merely lash constraints on government finance, cut off this lifeline and send the world economy into a tailspin.

        This is exactly what those on the extreme right wing want, because it would mean that they could engage in austerity programmes like the one thrust upon Greece. This, in turn, would allow them to demolish large parts of the welfare state and strip the government of its assets through privatization programmes.

        Bretton Woods did not work quite so well for underdeveloped countries who became indebted to the IMF and the World Bank and ruined their economies

        In order truly to understand the forces that led to the 2008 crisis we must understand income inequality. With wealth concentrated so heavily at the top-end of town, most people have no choice but to borrow to maintain their living standards. If we simply cut off this borrowing by trying to constrain money creation, these people will lose the two lifelines they have left – namely, government services and access to credit – and the economy would collapse completely. If we want to deal with the imbalances that lead to overextensions of debt we have to go right to the cause: inequality.

        Too many are fooled by the simple narratives spun by bunker economists. Scared and confused, they become distrustful of government institutions and turn in on themselves, hoard gold (if they can afford to) and become disengaged from the political process.

        Unable to understand the complex problems we face, they turn to shyster investment managers who prey on their fear or to conspiracy merchants who misdirect their attention away from reality and toward Hollywood-like fantasies. Gold is nothing but a shiny distraction – a glistening lie that lulls people into feeling a false sense of stability in an unstable world. Our world remains unstable precisely because those in power have built it that way.”

        http://newint.org/features/2014/09/01/bunker-economics-worshipping-gold/

        Skippy…. I wonder if the Pete Peterson institute knows how many pro bono employees it has….

      • I love how the biggest supporters of debasing currency and living in the fantasy world of QE are also the biggest critics of owning gold.

        If they would accept reality and stop trying to prop-up everything to avoid the pain of a normal business cycle – the gloss would be removed from gold – an asset that has maintained buying power over the last 100 years of central banks doing the opposite despite being otherwise useless.

        I though it was a special touch to note that only shysters and the deluded are attracted to gold as a hedge against monetary experimentation. How the likes of Paulson and Einhorn (for example) must feel to have been duped….

        I’ll bet not one of the academics would have a cent of their own bet against the yellow metal. Not like their types to actually have skin in the game.

      • Amusing that skippy in one comments says “Here we go again with the attempt to pigeonhole little old me”, when he gets called far left and then in the next breath is posting links to articles that try and do the same with those who own Gold as if they all think and act the same. What a hypocrite.

        Gold hating has become a religion in itself. Seems like skippy is one of the senior deacons.

        I’ve never been an advocate for returning to the (classical) Gold standard or Bretton Woods System. The price of Gold shouldn’t be fixed, it should continue to float against all currencies.

      • @8~

        “I love how the biggest supporters of debasing currency and living in the fantasy world of QE are also the biggest critics of owning gold.”

        What is it with your stripe[?] and where do you get this love of QE shite from, seriously. That most of you don’t have an operational knowlage about history or its relationship to monetary theory is not my fault. Yet were drowning in quasi monetarist economists [neoclassicals neo-new Keynesian’s] at the Fed and other CB’s. People that were groomed at corporatist funded academic institutions.

        That’s not to mention how so much impaired credit was issued in the first bloody place, due the machinations of the “Free Market” posse or the unfettered high jinks of the shadow sector capital running around like a meth addict all over the planet.

        “If they would accept reality and stop trying to prop-up everything to avoid the pain of a normal business cycle”

        What bizarre reality do you live in where you get to make up stuff like “pain of a normal business cycle”, as if there was or is such a thing as the “business cycle”. I’m I to be informed that old testament economics is your preferred societal template.

        Skippy…. good grief you still can’t wrap you head around the historical events which lead up to this debacle but opine about gold, its manic. Just from the prospective that gold is inherently deflationary [kinda defeats your argument right from onset] and even has CDO like quality’s.

        Anyway this might help out…

        http://www.nakedcapitalism.com/2015/06/the-standard-definition-of-money-is-in-error.html

      • I agree with BB in that gold should remain floated, as it is now. I don’t believe one can devise a better system than what we already have. The problem goes to the heart of the fundamental contradiction embedded at the core of capitalism, and there is no easy way out.

        If one wishes to keep his/her wealth in a fiat, despite the historical evidence which shows that doing so would have costed him/her 83% of the purchasing power (for USD) since 1971, that is not my problem.

      • @dumpling.

        You have not lost your purchasing power, you had your share of productivity stolen.

        Explaining the gap

        “The analysis above has shown that from 1973 to 2011, the largest factor driving the gap between productivity and median compensation has been the growing inequality of wages and compensation, followed by the divergence of consumer and output prices and the shift of income from labor to capital. From 2000 to 2011, when the productivity-median compensation gap grew the fastest, the divergence of prices had only a modest impact, whereas the shift from labor to capital income was the single largest factor, accounting for roughly 45 percent of the gap.”

        http://www.epi.org/publication/ib330-productivity-vs-compensation/

        Skippy…. lost purchasing power…. groan~

      • A US$100 bill would have bought you two and a half ounces of Gold in 1971, today it will buy you less than one tenth of an ounce. I’d call that a loss of dollar purchasing power (and is a similar outcome if you measure against other consumer goods if you don’t want to use Gold as an example). Sure there has been increasing inequality, which reduces the portion of dollar output received by the middle-lower class, but that does nothing to invalidate the argument there has been a loss of purchasing power in old dollars saved.

      • @BB,

        Sure when all you do is use one highly mucked with commodity to observe price, you will get one vary narrow picture of reality. Still this does not address that had wages historically tracked productivity the whole credit impairment thingy would have not happened, and we would not be faced with ridiculous RE and asset prices without a sound foundation under them.

        Not to mention gold was a fixed price established by government force, yet it was and all ways be deflationary.

        Skippy…. sorry but I don’t share your 19th – 18th et al century view on sociopolitical – economic quasi Judaic Christian theory.

      • The loss of purchasing power is general and real. For AUD, the loss is 91% and counting since 1971. This loss is measured using the CPI which incidentally does not include gold.

        “had wages historically tracked productivity the whole credit impairment thingy would have not happened, and we would not be faced with ridiculous RE and asset prices without a sound foundation under them.”

        That happened with fiats, and has nothing to do with gold.

      • As per usual skippy’s post consisted of deflection, trying to belittle the views of others, then finishing with an insult.

        He’s still wrong on the fall in purchasing power of the dollar though.

      • Many very sober and conservative (small “c”) financial advisers recommend putting a small percentage of one’s assets into precious metals. I wonder why? These are clear thinking analysts who do not have a quasi-religious belief in anything.

        I don’t bother arguing with kneejerk, cut-n-paste artistes like Skip who sprinkle their insults and jibes with barely comprehensible snippets of data gathered eclectically from around the ‘net. Such commenters have decided not to invest in precious metals, probably because they cannot afford it, or because they are (to be frank) too thick.

        Looking into the future, you can either take the techno-cornucopian view that things are going to keep on improving until we live in a sort of new world Nirvana, or you can take a darker and more tragic, Malthusian view that sees humanity brought to heel by overpopulation and pollution. In the latter circumstance, traditional asset classes (stocks, real estate, bonds etc) will fare badly, in the main, and there will be, sooner or later, a flight to assets with no counter-party risk and a long history of retaining value in times of duress, such as precious metals (silver gold palladium platinum).

      • BB you have to show your work out which has facts attached, contrarily all you have provided is your bias, sans historical or other means to figure out how you arrive at your conclusions.

        I belittle opinions when they are comported to truisms, especial those that confuse commodity money with operational reality, and have either a poor understanding of their preferred monetary theory yet can’t seem to acknowledge its historical failures or willfully obfuscate about it.

        R2M – diatribes without even a modicum of factual underpinnings, that level non stop assumptions about others mental or emotive states, is as weak an augment as it gets. I’ve provided both hard data and historical facts to buttress my position. BB gave some links to some mob that makes its living off the trade w/ the where is waldo wrt to demand shtick.

        Sure some advise 10% asset allocation – of a commodity – as a hedge, that has nothing to do with the discussion of monetary theory, political history, purchasing power or productivity and their relationship to our currant problem set. FYI my family owns gold mines as well as turquoise and copper geology rights to a few hundred thousand acres in perpetuity [as a kid panned, tunneled, used explosives, ball mills and trams, even mercury entrapment back in the day], hell I sold out a peak wrt Silver and Gold at six figures post GFC. Although I personally prefer precious stones, for obvious reasons, yet that is neather hear or there with regard to the key OP I’ve tried to make.

        Skippy… hay trade as you like, noone trying to stop you, tho don’t get so bent when someone actually provides a more granular historical perspective to events.

      • Former Federal Reserve Chair Alan Greenspan is on a gold roll. In September, Greenspan published a thought piece in Foreign Affairs musing on the indubitable monetary qualities of gold. “If, in the words of British economist John Maynard Keynes, gold were a ‘barbarous relic,’” Greenspan wrote, “central bankers around the world would not have so much of an asset whose rate of return, including storage costs, is negative.”

        Then earlier this month, at the home of the magazine’s sponsor, the Council on Foreign Relations, Greenspan was at it again. In response to questions, Greenspan reminded his audience that the last time the world got together to reform the monetary system, in 1944 at the Bretton Woods resort in New Hampshire, the level heads opted for gold.

        “The real intellectual debate [was] between those who wanted an international fiat currency which was embodied in John Maynard Keynes’s construct of a banker, and he was there in 1944, holding forth with all his prestige, but couldn’t counter the fact that the United States dollar was convertible into gold and that was the major draw,” Greenspan said.

        Greenspan is no lone wolf. Central banks are holding onto gold—even as they will protest that they are not. The United States, Germany, Italy, France, and the Netherlands—five of the eight richest big countries—hold more than half of their official monetary reserves in gold. And the Swiss are feeling the pressure. A referendum at the end of the week could mandate that Switzerland more than double its official gold reserves over the next five years.

        Yet Ben Bernanke, Greenspan’s successor at the Fed, used to say in response to Rep. Ron Paul’s questions that the only reason central banks held onto gold was “tradition, I suppose.”

        Actually, the reason is that gold performs the principal function that money must function when the currency system goes bad, care of central bankers. This is the function of holding value in a readily exchangeable form. You can have your housing bubbles and credit default swaps when the Fed goes on one of its great money binges, but those things take fussy, individual buyers if you want to unload them. Not gold. It goes up when the Fed gets weird, and you can sell it to anybody all the while.

        It turns out to be very convenient for central bankers to hold gold when they overprint. Their reserve asset goes up in value, and stays fungible. It’s a cui bono problem of the first order.

        These days, gold is going down. It’s about 35 percent off its peak of a few years ago, though still perhaps twice its equilibrium price, were we to have small government and a truly free market.

        We all should take a pledge. We should resolve to take advantage of the next time gold really drops and stays down, in the form of changing the official structure of our monetary system.

        What a low and stable price of gold means is that investors are satisfied that currency alternatives aren’t very necessary anymore. The general feeling is that you can invest in dollars with confidence that they will not lose value or get siphoned off by taxation. In the macroeconomic language, gold is low and stable when monetary and fiscal policy are right, which is to say modest.

        It is a shame that every time monetary and fiscal policy does get modest, and gold settles into a low and stable state (prime example: the 1980s and 1990s), we lack the motivation to formalize the role of gold in the monetary system. Maybe it’s because the times are so good. In the salad days, who thinks about reform?

        Were we to take advantage of prosperity by putting in place gold standard, we would take a step toward ensuring that the prosperity would last indefinitely. For the only reason the great eras ever end is that fiscal and monetary policy get ambitious again—which would be hard to do if the currency had to be redeemed in gold, by convention if not law.

        As Lewis E. Lehrman and John D. Mueller wrote in the Wall Street Journal the other day, “the world’s monetary authorities still hold nearly 900 million ounces of gold, which is enough to restore, at the appropriate parity, the classical gold standard.” If Obama keeps acting like a lame duck, the Fed keeps up the tapering, and the Congress starts shrinking government, that parity will emerge clearly enough as gold falls, on account of people selling in order to dive into the great new opportunities offered by the real economy left in the wake of government’s withdrawal.

        Which is why Greenspan’s comments are so apt and timely. When gold goes down in price, it is time to take an interest in preparing a formal role for gold in the monetary system. Gold is blessedly bounding down once again, and the prosperity of the 21st century may depend on whether we take advantage of the opportunity.

        R2M … doing a Skippy on Skippy 😉

      • Alen Greenspan who is a Ranoid [inner sanctum cult life member] and Chicago boy extraordinaire, who along with his posse are the master architects to the currant economic and monetary problems, we face today, is your go to guy on anything? With gems like his “Irrational exuberance” is a phrase used by the then-Federal Reserve Board chairman, Alan Greenspan, in a speech given at the American Enterprise Institute … Lmmao…. he redefined the state of “endemic fraud” with the sophistry of “irrational exuberance” whilst giving a speech at the American Criminal Enterprise Institute, “Life imitates Art far more than Art imitates Life” thingy.

        Next were treated to Saint Ron Paul, this is the chap that has wingnuts like Gary North as their education adviser, look him up, pure Jamestown sort of bloke.

        BTW missing link to text imo.

        Yet that does nothing to address the material information and accompanying observation about, GDP, Monetary theory, wages to productivity and credit vs purchasing power, et al, nada. Just Gold, Gold, Gold….

        “HUDSON: The—1,000 years ago, it took a military army to come in and conquer a country and grab the land and charge the people rent, to take control of the monopolies and charge people huge markups from the monopolies, and to essentially shift the taxes off the wealthy, onto the population that was conquered. Now, in today’s world, they can’t afford an army anymore. The Vietnam War showed that no country can afford a military occupation anymore. So finance today is the means of conquering a country and getting what in the past took an army. Financial conquest is how you shift the taxes onto the population to pay the financial sector, how you load a population down with debt and make a population pay interest and amortization and penalties on debt service, you make a population pay for schooling instead of getting it free or a low price as used to be the case, you make a population take on a lifetime of debt in order to get a home that used to be affordable, you make the governments go into debt for the banks, so that in Europe governments can’t—don’t have a central bank to monetize their own deficits but actually have to borrow money from banks. You achieve—you essentially empty out an economy, and you take its economic surplus financially without an army, just by trying to promote what really is junk economics and junk politics, if the economics of Rubinomics in America under Clinton and Rubenomics in America under George Bush, and now with a vengeance under Obama—.”

        http://www.nakedcapitalism.com/2012/05/michael-hudson-on-greenspans-hackery.html

        Sorry R2M but at the moment I can only determine your position as Philip P. described as bunker economics e.g. the end is nigh so buy gold, get fitted for a hair shirt w/ loin cloth and embrace druidism [or some other esoteric monkey goo]. No thank you mate, but, knock yourself out.

      • Sorry R2M but at the moment I can only determine your position as Philip P. described as bunker economics e.g. the end is nigh so buy gold

        Oversimplification once again, skip. The difference between us seems to be that I believe we are living in historic times that will usher in change unlike anything homo sapiens sapiens has experienced before, whereas as you are still off fighting sectarian/class/philosophical warfare with your ancient enemies. I can’t get you to look up and see what’s happening.

      • As I said bunker economics with a dash of rapture.

        Actually I have a more sound historical and science back ground wrt our species and events, you on the other hand link to druids and gold bugs. Want to start at PIE or go back our interbreeding good day as we ebbed in and out of Africa. Seems like your preview is quite selective and narrow.

        Skippy…. btw still waiting for a reply to the material information provided wrt the subject matter, at hand, other than gold…. boom… good times… Could you unpack that with a bit more granularity, names, dates, corroborating evidence et al. I only seems intellectually honest after I have supplied such.

      • @8~

        What does Soros have to do with anything?

        Per your own link…

        Billionaire Stan Druckenmiller’s family office bought gold and added to his holdings of Facebook Inc. in the second quarter.

        The former chief strategist for George Soros bought shares of SPDR Gold Trust, an exchange-traded product backed by gold, worth $323.6 million at the end of June, according to a quarterly filing with the Securities and Exchange Commission.

        Duquesne Family Office also added 1.6 million shares of Facebook Inc., growing its stake to $160.6 million, and making the social media company its second-largest position.

        Druckenmiller, who shut his hedge fund firm Duquesne Capital Management in 2010, now manages his own fortune, estimated at $4.4 billion. His fund had one of the best track records in money management, gaining an average of 30 percent per year from its inception in 1986.

        Druckenmiller said in May that interest rates are likely to stay near zero for 10 years, even after low rates have inflated stock prices. Duquesne invested in the SPDR Gold Trust before the precious metal slid in July, pushing the ETF down 6.6 percent.

        Duquesne’s disclosed equity holdings rose in value by 87.2 percent to $1.47 billion during the quarter, a period when the Standard & Poor’s 500 Index of U.S. equities fell 0.2 percent.

        The firm exited stakes in biotechnology and pharmaceutical companies including Biogen Inc., Teva Pharmaceutical Industries Ltd. and Celgene Corp. It owned shares in 29 companies at the end of the quarter and 18 of them were newly reported, including a $94.4 million holding in Wells Fargo & Co.

        Money managers who oversee more than $100 million in equities in the U.S. must file a Form 13F within 45 days of each quarter’s end to list those stocks as well as options and convertible bonds. The filings don’t show non-U.S. securities, holdings that aren’t publicly traded, or cash.

        Skippy… my comments have been about the relationships between, productivity, wages, GDP, vs the preference some have for gold and purchasing power over laid upon the last decades since the 70s and how that retaliates to both political, societal and eviromental out comes.

      • Its a reference to this hackery you linked to:

        “Unable to understand the complex problems we face, they turn to shyster investment managers who prey on their fear or to conspiracy merchants who misdirect their attention away from reality and toward Hollywood-like fantasies. Gold is nothing but a shiny distraction – a glistening lie that lulls people into feeling a false sense of stability in an unstable world.”

        Druckenmiller is a doyen of investing

      • @Skippy

        I have no idea of what you are trying to say.

        “The analysis above has shown that from 1973 to 2011, the largest factor driving the gap between productivity and median compensation has been the growing inequality of wages and compensation, followed by the divergence of consumer and output prices and the shift of income from labor to capital. From 2000 to 2011, when the productivity-median compensation gap grew the fastest, the divergence of prices had only a modest impact, whereas the shift from labor to capital income was the single largest factor, accounting for roughly 45 percent of the gap.”

        The whole period you had referred to is post Nixon shock. You cannot possibly ascribe these problems to gold or a gold standard. Or are you suggesting that all the problems you had described are due to the *lack* of a gold standard since 1971?

      • I haven’t participated in this thread beyond rejecting the claims from a linked money printer that all gold investors are dupes.

        I’m too far in the bag to bother discussing the end of the gold standard’s effect on equality. I don’t advocate for either the gold standard or equality. Though I would note that Bernanke’s reckless QE appears to have benefited the wealthy far more than the poor. The US banks should have gone to dog and taught the idiots who blew-up a lesson. The whole thing is a disgrace.

        The US economy would be stronger for it now – though this is obviously untestable.

        More than 2500 days of ZIRP now – crazyness

      • @Dumpling,

        “You cannot possibly ascribe these problems to gold or a gold standard.” – reading comprehension problems?

        The discussion started off with debunking the commodity money is intrinsically superior to fiat by both inaccurate hyperbole “limitless debt coupons” and refusal to acknowledge common historical facts with regards to bimetallism [intrinsically deflationary, expensive overhead, CDO like qualities, and my personal fav the psychology it reflects both societal and individual]. Especially coming coming from collapsniks with a bad case of Upton Sinclare syndrome.

        Which is compounded by unfounded and unpacked statements like “But the total money supply must keep increasing to avoid deflation, as long as all debts incur positive (non-zero) interests” when nothing is further form reality. Firstly you completely avoid all the other forms of money which function in the economy both formal and informal and completely fixate on sovereign currency, as if all the others have no effect, equity’s are a form of money, pray tell how that factors into you and others methodology i.e. gold + store of wealth = undiminished purchasing power into infinity. Not to mention gold is just a physical representation of accountancy by an act of sovereign law, other wise its just a common commodity. Lmmao so you can play with all the funny money but demand a safe haven for storage to secure all the winnings made at the casino, and that unit of measure is sacrosanct above all others, really[?], we all ready have derivatives for that action imo.

        Which then morphed into a conversation about storing price / value and purchasing power, which I elaborated on, as being myopic when confronted by productivity vs. wages w/ a wide array of prices factored in and how that reflects on historical events and out comes. To which I get opines from Greenspan FFS.

        Per my links, the problem started with inflation which was not taxed due to the machinations of the Koch et al funded Bircher movement [taxes are thief meme] which rendered it a political impossibility, which led to the Volcker treatment of labour [they never looked back afterwards]. At this point it became a pure ideological pogrom dialed up to insane propaganda volume, freedom and liberty w/ a side of free markets, which was the agency which unleashed so much impaired credit to start the whole ball rolling, but yeah ev’bal fiat.

        “Or are you suggesting that all the problems you had described are due to the lack of a gold standard since 1971?”

        What part of the great depression, numerous implosions in the 17th – 18th century’s [just for starters] did you not grok wrt monetary history, all whilst on a gold standard.

        Skippy…. monetarists…. everything is a direct reflection of money in the first order of acts… money is akin to some creator myth which compels humans against their free will [not that there is such a thing] to do ev’bal things…. so money must be made virtuous…. gold is virtuous… silly buggers~~~

      • “The discussion started off with debunking the commodity money is intrinsically superior to fiat..”

        False. That’s not something I said skippy. I was simply pointing out what a ridiculous notion it was that digging up Gold would be so damaging given the amount of damage we do with the current system.

        The problem is you make a bucket load of assumptions about everyone else’s opinion.

        Then you respond to that non-existent opinion with unstructured ramblings that are off topic, make no sense (in context of the discussion at hand) or quote large sections of irrelevant text that is not your own.

        That is why no one knows what the fark you are going on about. FYI.

      • @skippy

        Booms and busts occurred with or without a gold standard, so they have nothing to do with a gold standard.

        If the point you have been trying to make is that a gold standard does not work, then that has been my position all the time. Why didn’t you just say that?

        “Which is compounded by unfounded and unpacked statements like “the total money supply must keep increasing to avoid deflation, as long as all debts incur positive (non-zero) interests” when nothing is further form reality”

        WTF!? I had posted a bunch of comments a few years ago on the subject. They are certainly NOT unfounded, as you alluded to.

        http://www.macrobusiness.com.au/2013/10/australias-80-billion-skeptic/#comment-289457

      • @BB.

        “Seems to me that much more damage could be done to the earth with a monetary system whereby limitless debt coupons are issued in exchange for products and services, rather than one which is limited by the availability of a physical resource.” – False

        The monetary system has no intrinsic agency, I unpacked that as well as “limitless debt coupons” is false.

        “But the total money supply must keep increasing to avoid deflation, as long as all debts incur positive (non-zero) interests. If we have to routinely debase the currency that is pegged to gold” – false

        Again I unpacked that with historical events, reply’s amount to hand waving and repetitive statements w/ meaningless inferences of “quote large sections of irrelevant text that is not your own..”. So you quote others opinions about the perception of quality’s wrt metrics, by which to measure human activity, and then crack a fat over when others do it too or do you own the authorship to purchasing power or store of value et al. Just the fact that you obtusely demand that all discussion is off the cuff and unsubstantiated is just ludicrous, what you have it all stored up in your cranium, no need to cross reference, peer review, seek consensus? Just surround yourself with like minded sorts and reinforce the group think, is that how it works?

        Yet these metrics and the mental positioning they create via environmental conditioning, which some comport to truisms, commonsense, in a bias conformation seeking observation of everything that occurs – is – completely outside of known historical events. What you did not know golds first store of value was as a measurement of wheat, so from antiquity gold got its value from its relationship to a consumable commodity…. hahahaha~

        I think you part way there when you say “Seems to me that much more damage could be done to the earth with a monetary system” maybe the payment system has got noting to do with it but, the old human tool user problem. So what is the agenda which drives the agency and whom are the ones doing it and why, its not like the payment system is self aware and operates autonomously. Did the payment system cause thousands of years of endless internecine warfare between the anglophone or was it some other thing.

        @Dumpling,

        I pointed out more than just the bimetallism standard does not work, I showed the sociopolitical events which corrupted the fiat system, to the benefit of only a small percentage of the social strata, completely for reasons of self interest. That you state that the money supply must always grow is not based on operational facts, that’s where I took you to task. Not to mention money supply is ill defined HPM or sundry.

        And I don’t know what your on about when you say gold has nothing to do with booms and busts when on the standard, as its intrinsically deflationary, what the Spanish gold rush of the Americas boom meets decades of war and lost of control over the gold supply from the Americas bust was not a factor of aforementioned gold standard.

        As far as the deflation inflation imbroglio goes its simple, government spends and if inflation is a problem tax it and no we don’t need cheap shit to justify expenditure. HPM is tied to resources, not human misery, the latter is a sunk cost that will inevitably out weight all other considerations, see growing effects globally, but yeah GDP goal seek.

        I did link to that – but noone was game for that action…

        “In one lifetime, GDP, or Gross Domestic Product, has ballooned from a narrow economic tool into a global article of faith. It is our universal yardstick of progress. As The Little Big Number demonstrates, this spells trouble. While economies and cultures measure their performance by it, GDP ignores central facts such as quality, costs, or purpose. It only measures output: more cars, more accidents; more lawyers, more trials; more extraction, more pollution–all count as success. Sustainability and quality of life are overlooked. Losses don’t count. GDP promotes a form of stupid growth and ignores real development.

        How and why did we get to this point? Dirk Philipsen uncovers a submerged history dating back to the 1600s, climaxing with the Great Depression and World War II, when the first version of GDP arrived at the forefront of politics. Transcending ideologies and national differences, GDP was subsequently transformed from a narrow metric to the purpose of economic activity. Today, increasing GDP is the highest goal of politics. In accessible and compelling prose, Philipsen shows how it affects all of us.

        But the world can no longer afford GDP rule. A finite planet cannot sustain blind and indefinite expansion. If we consider future generations equal to our own, replacing the GDP regime is the ethical imperative of our times. More is not better. As Philipsen demonstrates, the history of GDP reveals unique opportunities to fashion smarter goals and measures. The Little Big Number explores a possible roadmap for a future that advances quality of life rather than indiscriminate growth. ”

        http://www.amazon.com/The-Little-Big-Number-World/dp/0691166528

        You have not lost your purchasing power, you had your share of productivity stolen.

        Explaining the gap

        “The analysis above has shown that from 1973 to 2011, the largest factor driving the gap between productivity and median compensation has been the growing inequality of wages and compensation, followed by the divergence of consumer and output prices and the shift of income from labor to capital. From 2000 to 2011, when the productivity-median compensation gap grew the fastest, the divergence of prices had only a modest impact, whereas the shift from labor to capital income was the single largest factor, accounting for roughly 45 percent of the gap.”

        http://www.epi.org/publication/ib330-productivity-vs-compensation/

        Skippy…. you might look at the graph on the productivity link I gave and consider GDP effects wrt parabolic divergence between wages and productivity along with increasing concentration of capital in the social strata to the very top, and what effects that has had sociologically and economically.

      • I just add this to the mix…

        Zhou Xiaochuan, Beijing’s central radical banker FT

        Ingham makes the point that what gives money it’s ‘moneyness’ is its use as a money of account in a sovereign monetary space not its function as a commodity used solely as a medium of exchange.

        But once this moneyness is established then it can function as a commodity that can be bought and sold in foreign exchange markets.

        China may be ready to make this step. MMT recognizes foreign exchange as a limitation to a sovereign currency.
        http://neweconomicperspectives.org/2014/02/mmt-external-constraints.html

        MMT AND EXTERNAL CONSTRAINTS

        February 24, 2014
        By L. Randall Wray

        “I have no doubt that China would eventually be in a position where floating (her currency) would not only be desired, but it would be necessary.China will probably float long before it reaches such a position. China will become too wealthy, too developed, to avoid floating. She will stop net accumulating foreign currency reserves, and will probably begin to run current account deficits. She will gradually relax capital controls. She might never go full-bore Western-style “free market” but she will find it to her advantage to float in order to preserve domestic policy space.

        If she did not, she could look forward to a quasi-colonial status, subordinate to the reserve currency issuer. China will not do that.”

        ————–

        Rather than take over as sole reserve currency though China wants the rembindi to be part of a special drawing right similar to Keyne’s proposed bancor. The true strength of a currency can be seen as how desirable it is seen relative to other currencies which also reflects its political and social backing.

        Skippy… this all could have been avoided so many decades ago, save some loon pond ideologues splashing cash and power around like drunken sailors looking for a special good time. That’s the agency, not some object of exchange…

      • Thanks for adding not much here and shutting down the discussion to suit your ideology s. In your eagerness to bag the pet rock you are actually missing what people are saying – any soap-box in a storm? I’d say you have an anti-gold ideology, you reckon it’s a commodity, fair enough, I’d prob agree, but many don’t and none of your arguments land a decisive blow, merely opinion. When opinion becomes fact…

        There never was a doubt that those not keen on the manufactured consent are fine linguists – it’s part of the club… Best not to confuse with wisdom however.

        …In keeping with the … inflammatory snark/abuse theme

      • Also , if you wish to carry on in this derogatory fashion s, then it’s perhaps time that you referenced your opinion to genuine academic discourse, as opposed to the levitating bootlaces crap of random internet sites that support the opinion.

        Back it up properly, don’t give us this half-arsed crap as a snark tool hidden behind a pseudonym.

      • Aj,

        Sorry but your comment is what you bemoan, all you have done is fling poorly defined assertions, such as “shutting down” with out even a modicum of detail. Please pick individual cases and highlight how you arrive at that conclusion, otherwise is just a pack of broad generalizations liberally spread around to see what sticks rather than dealing w/ the evidence based approach.

        Like your suggestion that I’m anti gold [ideology???] when I’ve clearly stated the gold standard track record wrt an internal monetary operational payment system, let alone an international one. Never did I state people could not trade or own the stuff, never called for a ban, yet the gyrations of the pro mobs unhappiness at its further introspection e.g. “store of wealth” can be traced back to equal measure of wheat to a sliver of gold, so what is the actual intrinsic value, the consumable commodity that enables life or the non perishable dead weight used to – substitute – it, in order to make transactions easier. Yeah but, some read a wee bit of cloistered history or opinion and universal truth has been established as irrefutable fact.

        Now we have the subjective “wisdom” trope flicked out, to some how, claim ownership to truth by merely invoking its name, how holy.

        BTW you were quite fine with the mig-i derogatory approach, to everything under the sun, what is good for the goose is not for the gander? So much for freedom or liberty I guess….

        Skippy…. “random internet sites” good lord that’s just so contrived, what[?], anything not from Mises institute is not academic now days, not that you have actually engaged in the material information nor the summations born out by it, but generalize about your personal dislikes [sans any means to identify why].

      • @skippy, “limitless debt coupons” was hyperbole (obviously). Something that I’m sure most level headed readers would have recognised.

        & perhaps you should have a read of this…

        The outbreak of the current crisis and its spillover in the world have confronted us with a
        long-existing but still unanswered question, i.e., what kind of international reserve currency
        do we need to secure global financial stability and facilitate world economic growth, which
        was one of the purposes for establishing the IMF? There were various institutional
        arrangements in an attempt to find a solution, including the Silver Standard, the Gold
        Standard, the Gold Exchange Standard and the Bretton Woods system. The above question,
        however, as the ongoing financial crisis demonstr
        ates, is far from being solved, and has
        become even more severe due to the inherent weaknesses of the current international
        monetary system.
        Theoretically, an international reserve currency should first be anchored to a stable
        benchmark and issued according to a clear set of rules, therefore to ensure orderly supply;
        second, its supply should be flexible enough to allow timely adjustment according to the
        changing demand; third, such adjustments shoul
        d be disconnected from economic conditions
        and sovereign interests of any single country. The acceptance of credit-based national
        currencies as major international reserve currencies, as is the case in the current system, is
        a rare special case in history. The crisis
        again calls for creative reform of the existing
        international monetary system towards an international reserve currency with a stable value,
        rule-based issuance and manageable supply, so as to achieve the objective of safeguarding
        global economic and financial stability.
        I. The outbreak of the crisis and its spillover to the entire world reflect the
        inherent vulnerabilities and systemic risks in the existing international
        monetary system.
        Issuing countries of reserve currencies are constantly confronted with the dilemma between
        achieving their domestic monetary policy goal
        s and meeting other countries’ demand for
        reserve currencies. On the one hand, the monetary authorities cannot simply focus on
        domestic goals without carrying out their international responsibilities; on the other hand,
        they cannot pursue different domestic and international objectives at the same time. They
        may either fail to adequately meet the demand of
        a growing global economy for liquidity as
        they try to ease inflation pressures at home,
        or create excess liquidity in the global markets
        by overly stimulating domestic demand. The Triffi
        n Dilemma, i.e., the issuing countries of
        reserve currencies cannot maintain the value of the reserve currencies while providing
        liquidity to the world, still exists.
        When a national currency is used in pricing primary commodities, trade settlements and is
        adopted as a reserve currency globally, efforts of the monetary authority issuing such a
        currency to address its economic imbalances
        by adjusting exchange rate would be made in
        vain, as its currency serves as a benchmark for many other currencies. While benefiting from
        a widely accepted reserve currency, the globalization also suffers from the flaws of such a
        system. The frequency and increasing intensity of fi
        nancial crises following the collapse of
        the Bretton Woods system suggests the costs of such a system to the world may have
        exceeded its benefits. The price is becoming increasingly higher, not only for the users, but
        also for the issuers of the reserve currencies. Although crisis may not necessarily be an
        intended result of the issuing authorities, it is an inevitable outcome of the institutional flaws.
        BIS Review 41/2009
        1
        II. The desirable goal of reforming the international monetary system, therefore,
        is to create an international reserve currency that is disconnected from
        individual nations and is able to remain stable in the long run, thus removing
        the inherent deficiencies caused by using credit-based national currencies.
        1. Though the super-sovereign reserve currency has long since been proposed, yet no
        substantive progress has been achieved to date. Back in the 1940s, Keynes had
        already proposed to introduce an international currency unit named “Bancor”, based
        on the value of 30 representative commodities. Unfortunately, the proposal was not
        accepted. The collapse of the Bretton Woods system, which was based on the
        White approach, indicates that the Keynesian approach may have been more
        farsighted. The IMF also created the SDR in 1969, when the defects of the Bretton
        Woods system initially emerged, to miti
        gate the inherent risks sovereign reserve
        currencies caused. Yet, the role of the SDR has not been put into full play due to
        limitations on its allocation and the scope of its uses. However, it serves as the light
        in the tunnel for the reform of the international monetary system.
        2. A super-sovereign reserve currency not only eliminates the inherent risks of credit-
        based sovereign currency, but also makes it possible to manage global liquidity. A
        super-sovereign reserve currency managed by a global institution could be used to
        both create and control the global liquidity. And when a country’s currency is no
        longer used as the yardstick for global trade and as the benchmark for other
        currencies, the exchange rate policy of the country would be far more effective in
        adjusting economic imbalances. This will signi
        ficantly reduce the risks of a future
        crisis and enhance crisis management capability.
        III. The reform should be guided by a grand vision and begin with specific
        deliverables. It should be a gradual process that yields win-win results for all
        The reestablishment of a new and widely accepted reserve currency with a stable valuation
        benchmark may take a long time. The creation of an international currency unit, based on the
        Keynesian proposal, is a bold initiative that requires extraordinary political vision and
        courage. In the short run, the international community, particularly the IMF, should at least
        recognize and face up to the risks resulting from the existing system, conduct regular
        monitoring and assessment and issue timely early warnings.
        Special consideration should be given to giving the SDR a greater role. The SDR has the
        features and potential to act as a super-sovereign reserve currency. Moreover, an increase
        in SDR allocation would help the Fund address it
        s resources problem and the difficulties in
        the voice and representation reform. Therefore, efforts should be made to push forward a
        SDR allocation. This will require political cooperation among member countries. Specifically,
        the Fourth Amendment to the Articles of Agreement and relevant resolution on SDR
        allocation proposed in 1997 should be approved as soon as possible so that members joined
        the Fund after 1981 could also share the benefits of the SDR. On the basis of this,
        considerations could be given to further increase SDR allocation.
        The scope of using the SDR should be broadened, so as to enable it to fully satisfy the
        member countries’ demand for a reserve currency.
        Set up a settlement system between the SDR and other currencies. Therefore, the SDR,
        which is now only used between governments and international institutions, could become a
        widely accepted means of payment in international trade and financial transactions.
        Actively promote the use of the SDR in international trade, commodities pricing, investment
        and corporate book-keeping. This will help enhance the role of the SDR, and will effectively
        reduce the fluctuation of prices of assets denominated in national currencies and related
        risks.
        2
        BIS Review 41/2009
        Create financial assets denominated in the SDR to increase its appeal. The introduction of
        SDR-denominated securities, which is being studied by the IMF, will be a good start.
        Further improve the valuation and allocation of the SDR. The basket of currencies forming
        the basis for SDR valuation should be expanded to include currencies of all major
        economies, and the GDP may also be included as a weight. The allocation of the SDR can
        be shifted from a purely calculation-based system
        to a system backed by real assets, such
        as a reserve pool, to further boost market confidence in its value.
        IV. Entrusting part of the member countries’ reserve to the centralized
        management of the IMF will not only enhance the international community’s
        ability to address the crisis and maintain the stability of the international
        monetary and financial system, but also significantly strengthen the role of
        the SDR.
        1. Compared with separate management of
        reserves by individual countries, the
        centralized management of part of the global
        reserve by a trustworthy international
        institution with a reasonable return to encourage participation will be more effective
        in deterring speculation and stabilizing financ
        ial markets. The participating countries
        can also save some reserve for domes
        tic development and economic growth. With
        its universal membership, its unique mandate of maintaining monetary and financial
        stability, and as an international “supervisor” on the macroeconomic policies of its
        member countries, the IMF, equipped with its expertise, is endowed with a natural
        advantage to act as the manager of its member countries’ reserves.
        2. The centralized management of its member
        countries’ reserves by the Fund will be
        an effective measure to promote a greater role of the SDR as a reserve currency. To
        achieve this, the IMF can set up an open-ended SDR-denominated fund based on
        the market practice, allowing subscription and redemption in the existing reserve
        currencies by various investors as desired. This arrangement will not only promote
        the development of SDR-denominated assets, but will also partially allow
        management of the liquidity in the form of the existing reserve currencies. It can
        even lay a foundation for increasing SDR allocation to gradually replace existing
        reserve currencies with the SDR.

        http://www.bis.org/review/r090402c.pdf

      • @skippy

        I do not have time to write a full book for you. If you cannot get the core idea from the link I provided above, then I do not know how to explain.

        You repeatedly stated that gold is deflationary, but did not “back it up”. BTW, I agree that gold as a currency is deflationary and I have been asserting that is precisely why a gold standard does not work. Why on earth do you think gold as a currency is deflationary? It is because its supply (money supply) cannot keep up with the massive interest bills, year in year out. In fact, I had an extended discussion about this with athalone a while ago.

        http://www.macrobusiness.com.au/2014/10/qe4-ruminations-intensify/#comment-782834

        BTW, I did NOT state “gold has nothing to do with booms and busts when on the standard” as you alleged. What I said was “Booms and busts occurred with or without a gold standard, so they have nothing to do with a gold standard”, by which I meant was “the occurrence of booms and busts has nothing to do with whether a nation (or the world) adopts a gold standard or not”.

      • @BB,

        No I did not “get that”, bombast from bimetallism sorts lends to more core beliefs than it does to artistic interpretation for style points.

        BTW you might want up date your links perspective post 09 as the events are quite fluid and dynamic, the BSD behind the anglophone hegemony are dead set against China having its fair say at the SDR table. After shades of Nixon when American envoys were not genuflected too, and minds became gears which a spanner was thrown into…

        Skippy…. truly funny stuff… century’s of umbrage at the white man having to kowtow… but all that money…. all that potential wealth… just send in the Jesuits and Priests to soften up population and bang…. you own them from birth. That is if they don’t out law such activity’s in the first place…

        PS. Great Sunday! Sons under 11 JRU team demolished, with form, the pennant winners [by default, they got an extra game in due to rain cancellation on our side] 44 to 12, second time of our team.

      • @Dumpling,

        “But the total money supply must keep increasing to avoid deflation, as long as all debts incur positive (non-zero) interests. If we have to routinely debase the currency that is pegged to gold, then we may as well keep the fiats for everyday transactions and use gold exclusively for hoarding of wealth.”

        Back tracking does not change your original statements, which I might offer are grounded on commodity theory, which is irrelevant right from the start. I might as well observe illness as a foul wind or demonic possession.

        That productivity diverged wrt wages is the optics by which to observe a fiat payment system and not purchasing power, which was compounded by lowering of credit standards in lieu of fair recompense, and some wonder why we have a massive credit impairment problem. Tho the architects of that little game have all ready realized their profit and stashed it off shore to the tune of about 34T. Mean while we can’t afford anything so sell all public assets and don hair shirts.

        Skippy…. yeah I can see why some would love to find a permanent store of untouchable wealth.

      • @skippy

        “Back tracking does not change your original statements”

        WTF!? Where did you get that idea from? I have no intension of changing my original statements you had quoted.

        If you deny my explanation as the cause of the deflationary effect of a gold standard, then what is your explanation? You haven’t provided any.

        And don’t just repeat the “explaining the gap”. A lot more than the end of the Bretton Woods system had taken place since 1971. For one, Reaganomics greatly lifted the tax burden of the wealthy. One does not need to be a rocket scientist to figure out what kind of effect that had to inequality.

    • Hamish I understand your concern, I saw myself the damage on the Irrawaddy river Burma chasing gold. However the worlds GDP would be half what it is today if money creation were not totally unlimited, and I guess that is what the gold standard is a speed limit on GDP growth

      • The creator of GPD said that it was not a stand alone metric and was being used incorrectly e.g. the argument that gold is a handbrake on GDP is erroneous at onset as both are ill suited for the tasks they are used for.

        ” As Kennedy’s comments make clear, GDP can’t distinguish between economic activities that increase a nation’s wealth and ones that eat into its natural endowments (cutting redwoods), result in sickness and future cleanup costs (pollution), or merely ameliorate disasters whose costs are never accounted for (ambulances). Measuring the sustainability (environmental or otherwise) of economic growth requires making estimates, of course. Joseph Stiglitz, a leading proponent of what’s usually called green GDP, doesn’t think sustainability estimates are any more speculative than some of the estimates now included in GDP. “Taking into account resource depletion and some aspects of sustainability is fairly easy,” he told me recently.

        It’s true that the challenges of tracking energy use or pollution aren’t huge. But the politics are extremely tricky. In its early days the Clinton administration pushed the Bureau of Economic Analysis—the agency that measures U.S. GDP—to develop a green GDP. A West Virginia congressman put a halt to the effort, fearing it would hurt his state’s coal mining industry. A green GDP initiative in China got much further, but it, too, was eventually derailed by opponents.”

        https://hbr.org/2012/01/the-economics-of-well-being

        Skippy… what ever we eventually do gold will not be king, tho it will be a commodity that some chose to trade or own for what ever reasons….

      • I would add…

        “In one lifetime, GDP, or Gross Domestic Product, has ballooned from a narrow economic tool into a global article of faith. It is our universal yardstick of progress. As The Little Big Number demonstrates, this spells trouble. While economies and cultures measure their performance by it, GDP ignores central facts such as quality, costs, or purpose. It only measures output: more cars, more accidents; more lawyers, more trials; more extraction, more pollution–all count as success. Sustainability and quality of life are overlooked. Losses don’t count. GDP promotes a form of stupid growth and ignores real development.

        How and why did we get to this point? Dirk Philipsen uncovers a submerged history dating back to the 1600s, climaxing with the Great Depression and World War II, when the first version of GDP arrived at the forefront of politics. Transcending ideologies and national differences, GDP was subsequently transformed from a narrow metric to the purpose of economic activity. Today, increasing GDP is the highest goal of politics. In accessible and compelling prose, Philipsen shows how it affects all of us.

        But the world can no longer afford GDP rule. A finite planet cannot sustain blind and indefinite expansion. If we consider future generations equal to our own, replacing the GDP regime is the ethical imperative of our times. More is not better. As Philipsen demonstrates, the history of GDP reveals unique opportunities to fashion smarter goals and measures. The Little Big Number explores a possible roadmap for a future that advances quality of life rather than indiscriminate growth. ”

        http://www.amazon.com/The-Little-Big-Number-World/dp/0691166528

        Skippy…. you might look at the graph on the productivity link I gave and consider GDP effects wrt parabolic divergence between wages and productivity along with increasing concentration of capital in the social strata to the very top, and what effects that has had sociologically and economically.

      • Skipp I agree also, but it is no coincidence that that GDP growth has been bought on credit, and the level of credit is unlimited in the current financial system, until that is, it shits itself completely!

      • @tonydd,

        As credit has been with us since time immortal I think its important to distinguish the factors which rationalize its issuance e.g. bad risk tools [made worse by abuse], rational agent models, unregulated insurance, A moral environmental ethos, and my personal favorite – fraud.

        This is why historically its been problematic wrt regulation, to much and it just goes underground [loan sharks etc], and not enough gives you the same problem but, legalized.

        Skippy…. “credit is unlimited in the current financial system” – actually its not from a public stance, tho private does push the envelop.

      • Aj,

        Neither is butter, but what does it have to do with the payment system… eh…. what does it have to do with sociopolitical history…. absolutely nothing as it has no agency. That distinction is reserved for human individuals and groups which in turn are beholden to what ever group think floats their boat.

        In bimetallism’s case, its just symbolism of a much deeper psychological – metaphysical state of mind e.g. the physical object is just an atomic representation of aforementioned environmental conditioning.

        Skippy…. Some people just seem to get upset when confronted with historical accuracy or more academic introspection which does not conform to their beliefs, yet no one is suggesting you can’t own or trade the stuff. You just don’t have the right to force it on others…

    • A bit late for the party in the U.S. I’ve been reducing most of my positions and holding a lot of cash. I can’t personally get comfortable with China.

  13. Heres the weekly smh auto-fellatio over saturday’s auction results

    http://news.domain.com.au/domain/real-estate-news/plain-jane-in-castlecrag-soars-400000-above-reserve-20150815-gizs52.html

    Note the investor who bought the 1,000,000 tiny redfern terrace: expected to rent out for 600/week – roughly the same yield as a 10yr govt bond and roughly the same interest rate you get from the bank

    Not too unreasonable given the low yield future we find ourselves barrelling towards

    **Selling agent Michael Ristevski​ of Professionals Punchbowl said he was relieved to see the home sell.

    “I know for a fact that I lost four bidders this week because of the banks changing the rules for investor lending,” he said**

    Anybody paying 2.2+ for an ugly little brick house in castlecrag or castle hill may be deluded however.

    • And plenty of Sydney Uni students to fill that space too. Many from overseas no doubt. That brings me to the issue that is getting more attention and will continue to do so as The China Slowdown (TCS) gains momentum.

      Inequality and poverty resulting from corruption and criminal activities of government officials. This is going to be very big, because people power in China is very big. The Chinese will have to pursue these criminals and recover the proceeds of their crimes all over the world, they will do this because their political future’s depend upon it.

      http://english.caixin.com/2015-08-12/100838759.html

    • flyingfoxMEMBER

      A government bond does not need to be tenanted, won’t get trashed and can be liquidated in an instant…

  14. Melbourne auction story time.

    Some friends want to buy a house real bad. (I’ve said my bit to them but they are of the now-or-never mindset.)
    They are young professionals of the lawyer variety and seem to be doing well by all accounts.
    A house that interested them came up for sale in Coburg, about 9km north of the CBD. They got in a valuer as they had little faith in the estate agent. He said 600. I know the house and it isn’t worth that, but anyway. Come the auction and it goes for 913. 24 months ago a property on the same street sat on the market and dropped from the asking of 630 at a failed auction to being sold for 580.

    Crazy days.

    • +1
      There is no crash
      There is no slow melt
      There is still double-digit debt-fuelled productivity-killing house price inflation

      • Yes there’s no reason at all to stress.

        I’ve been hearing that dwelling price growth will slow right down (from double digit to single digit).

        Amd that this slow growth from unsustainably high levels is somehow a satisfactory outcome.

      • People are dumb, yes. But that is not new. So it pays to ask a relevant question, which is;

        Will they remain reliably dumb into the future so that we can count on it when we make our investment decisions?

        I think the answer is a resounding yes and we can all adjust our positions accordingly.

    • Is the Coburg sale in breach of the FIRB rules?
      We don’t know because no one checks
      The sham continues

  15. Why why why do I do it?

    Chatting to the new neighbours and the topic came up. I knew it would, it always does.

    Mr Neighbour led me into it with “Why are you renting?”………

    I should have said nothing. I knew it would end badly. I even pleaded for him to not ask THAT question as I knew the answer I would give would not be the one the would want to hear.

    But he insisted. “No really, why?”

    So, against my better instincts, I told him.

    I told him why Sydney was in the grip of a speculative debt fueled housing bubble.

    That the economy was going to hell in a hand basket.

    That it was nuts to leverage to 14x household income to buy a dog box.

    And that housing will revert to align with incomes as they always do.

    It wasnt the answer he was looking for. He wanted positive reassurance that prices would always go up and that his stonking big mortgage on his $991000 piece of Sydney paradise was a shrewd investment.

    I could see in his eyes the nagging doubt. The lingering thought that it just doesnt add up. He looked crushed.

    I felt bad.

    But then he told me that his financial planner has recommended setting up a SMSF to invest in an investment property…………

    On that topic there was NO holding back.

    • That was 2 years ago for me. If i dont like the cut of their jib, i lie about the squillions ive made buying and selling property in melb and sydney. “mate, shit, if you don’t get in now and borrow as much as the banks will possibly lend you, you’re dead meat”

    • Lol stomper!

      If it makes you feel better, im officially banned by the missus from Ever speaking about such topics when in “good company” .

      Anyway, R2M is around 😉 so I’ll continue, lol.. In my opinion houses have “crashed” simply by way of currency. Beat leveraged USD longs suckers!

      As I’ve always said, as I start exiting (some) USD longs I’ll will be shoving profits into asx puts. It’s go time for Aust economy!

      House prices may never truely correct in AUD, be aware guys! It will (and is) our currency. Watch where the AUD goes in next 5 years.

      Anyway hold in their stomper, just be sure your $ savings are working for you!

    • Oh – occasionally that subject comes up and I’m queried “but with your salary, surely you could buy a house, no? I mean, instead of (throwing up in their mouth a bit) you know … renting” In other words “what is wrong with you?” (*). And whilst the implication that there’s a major malfunction with my brain for not “betting-it-all-on-red” is grating in the highest order, I found that making appeal to their own financial state of affairs is a hell of a lot more satisfying answer than trying to convince them with all the right facts and numbers why buying property is not the best choice.

      I put it this way: Look mate … it’s just too expensive, to the point where it makes absolutely no sense for me to do it. For what I would consider to be useful to me, renting is the way: it costs me $X per week for my home, plus $Y per week for the agistment of the horse – That is all! I add them all up, and that’s $Z which is a hell of a lot less than buying a place that meets *all* these requirements… especially after adding up all the rest of the hidden costs.

      All the rest of the costs are just not there: no council rates, no water charges no sewerage charges, no interest, no loan. I pay the rest of the stuff like anyone else: power, gas, (shitty) ADSL, insurance.

      Besides, I prefer to: a) remain mobile, b). have the cash to weather a downturn, c). have the cash for emergencies for missus d). sleep well at night and stand up for myself at work – and not just keep my head down, suck it and moan as if I liked it because of the stonking big mortgage I have to carry.

      I have lost count on the number of people I know who would have serious kittens if they needed to fork out $1500 in a hurry. Could you? Could you put solar on the roof without paying the bank interest? Could you do serious repairs to your car, without having to go cap in hand to relatives?

      Look at it another way – if I’m down for the count – the whole thing goes down while I’m recovering – cash reserves are there for precisely that moment – so that I can recover in peace, without worrying that I will be not only sick but also dead-broke to the point where I can’t afford to get better. How many do you know amongst your friends in the same situation who could have one of them down for the count for a long time?

      If I had to move with my job now, I’d lose so much on selling up it wouldn’t be funny: transaction costs both on buying and then selling, council rates, interest, all that… and then all the worries because they’re all out to rip you off. Why would I do it? Instead – I load all my stuff in one big truck, load the horse on, and I’m gone in 3 days – no worries, no fire-sale, no fuss. I will certainly be sorry to leave my friends behind, but that won’t be compounded by leaving a good chunk of my financial ass behind too.

      So you see, it just makes no sense in these days. It may come to make sense later but for now – it stays as it is, and I’m happy with it.”

      It’s amazing how many go pensive at that point, you can almost see their hair standing on end and them perspiring gently at the thought. That fleeting, pant-shittingly moment of utter and unmitigated panic in their eyes is just priceless. Most struggle then on all four to get out of this discution and I will magnanimously accept their unacknowledged and subcounscious defeat, by helping them change the subject. But all that is too late, that depth charge has gone off, the hull is breached and their confidence is really taking water: HMS I AWESOME is nothing but a dingy, and those white caps are actually 15meter swells: “Good luck, I hope you manage to not fuck it up”


      (*) – I have the distinct feeling that it’s almost worse than if I were gay

  16. DarkMatterMEMBER

    For anyone in Sydney this week end the Power House Museum is holding a Makers Faire which has all sorts of interesting displays. There is an amazing electric conversion of a DS citroen – 23KWh and the guy who owns it says it is great.

    Apart from that there are dozens of 3D printers, drones and robotics demos. For anyone who hasn’t seen 3D printers in operation it might be a bit of an eye opener.

    One stand I saw had an interesting display showing how 3D printed composite honeycombs are being used to make aircraft parts. I mentioned this a few weeks ago and was ridiculed by Revert2Mean. Over the next decades expect steel I beams and other structural components to be replaced by printed 3D composite versions. Surely this will be a very significant factor in resource and energy usage in the future?

    • That’s the techno-cornucopian view, with which I disagaree, since I adhere to a more stoic, tragic view of human history.

      I think advanced tech will be helpful, but will not, in the end, allow anything like BAU.

  17. @Revert2Mean and a few others have ruined this blog.

    It’s so boring now. Where’s the debate? Where’s the different views? Anyone a bit right of EXTREME LEFT is shut down with insults.

    • Im scared to make comment for Karl Marx and his goons might knee cap me later.

      Id say the biggest issue with leftist here is they tend to talk AT you as oppose with you. No wait that’s not it, it’s their ability to hijack discussion and send everyone into a tangent.

      In regards to R2M I like the nut case, he certainly should be given his own seperate territory on MB to discuss his topics of interest at length.

      He does has some interesting abstract points (at times) some of which I strongly believe in, he needs his own space on MB.

    • @Revert2Mean and a few others have ruined this blog. Anyone a bit right of EXTREME LEFT is shut down with insults.

      1) Skippy thinks I’m Right of Genghis Khan 😯 … all depends on perspective
      2) Climate denial is not allowed, imo. Nor is creationism.
      3) If astroturfers have quit, good. Nothing to be sad about. 😎

    • innocent bystander

      I have a list of people who I just skip (and any replies by others to them). If they have an avatar it makes it even easier.
      Likewise I have a list of people I read, even tho they might be of a persuasion I would generally disagree with, their comments are often constructive, disciplined and polite.
      Anyone who puts up a link without a synopsis, description or insight also gets skipped.

    • Nobody posting here is EXTREME LEFT. That you think it’s somehow the prevailing attitude says far more about you than it does about anyone else.

      • “Nobody posting here is EXTREME LEFT.”

        I’ve spent some time with some actual Marxists and nobody here really comes close! They scared me and I consider myself pretty bloody “left-wing”.

      • interested party

        drsmithy,
        Appreciate the response.
        “we’re NOT that “democratic” in most countries that claim to be.” I left off sarc……I know how terrible the process is…… which has led me to investigate alternatives to ‘democracy’.

        “The natural world is a harsh, brutal place where the only thing that matters is strength”
        The modern world is also a harsh place where financial strength is all that matters….and it appears that the financial side of this equation is what is running society and the environment over the cliff edge.

        “The natural world does not have empathy or altruism outside of very, very limited scenarios.”
        Granted, it can be perceived that way, yet old cultures…. pre-western influenced…. appear to have survived along similar lines as anarchy ….with a small a I believe…..and that is the model I admire. I only lean this way out of concern for the environment as I see humans as part of the natural system and not above it as is presumed by the current set of political models.
        I will admit that I am in a very small minority, and I do accept reality is as it is……but my original comment was part tongue-in-cheek…..part wistful thinking…..but on reflection and conversing with you I have been able to put some meat on the bones of my thoughts. Thanks for the help on that.

    • Extreme left?

      I am not even sure what that means. Mostly what passes for “lefty” these days is a bunch of feel good causes that require a strong dose of cognitive dissonance to support simultaneously.

      I would be surprised if many of those type of lefties linger on MB for long. There is a strong strain of economic rationality – in most comments on MB – even when in violent disagreement – that the modern “lefty” finds repellent as it makes the inconsistencies in their various causes more apparent.

      About the only thing that is in abundance on MB is a fair bit of righty-corporatism/socialist-statism – where the fans of either are strongly disagreeing about the nature of the leviathan they would prefer running our lives.

      Big Corporate – facilitated by no-regulation

      Big State – facilitated by heaps of regulation.

      • Extreme left.. when I see regular calls for nationalisation of the banks, mining companies and private TV and radio, then not only the removal of public funding but also the outright the banning of private schooling, not to mention the reintroduction of the closed shop, then I’ll think we’ve got some proper lefties on here…

      • Hamish,

        I haven’t too seen too many proposing what you reckon to have read. It sounds like you equate any form of regulation as extreme left. Which is not much different to those who claim anyone who suggests there are somethings govt should tread lighlty on are rabid Galt Gulch campers.

        That was the point I was making.

        Regulation is a inescapable fact of civilised life – unless you are opposed to all corporate forms (which would make you very left indeed) the question is what works.

      • interested party

        Jeez,Pfh
        I don’t want any bastard running my life so where does that place me……..apart from confused?
        Ahhh…..I’m an anarchist…yes…that’s me. I’m all good now.
        Carry on.

      • I haven’t too seen too many proposing what you reckon to have read.

        I think hamish was saying there’s a lack of those opinions shown here, ergo no EXTREME LEFT views.

        Which was kind of my point. 🙂

      • IP,

        Anarchism, localism, organic communities, small l libertarianism and liberalism plus many others have much in common. They tend to all have reservations about big governments, big religions, big corporations. They generally are not opposed to regulation but judge it by the extent it encourages or undermines flexible and responsive communities.

        Generally, I would say most of the commenters on MB are sympathetic to this perspective – even if on the merits of specific regulation they disagree.

        The ones I am suspicious of are those that reckon that no regulation at all is desirable as they usually still insist that systems of control and coercion remain essential.

        EDIT – crikey drsmithy i missed the ‘then’ in “then I’ll” – apologies hamish!

      • I don’t want any bastard running my life so where does that place me……..apart from confused?
        Ahhh…..I’m an anarchist…yes…that’s me. I’m all good now.

        Where do you live again ? Wouldn’t mind some of your stuff – you won’t call the police right ?

      • interested party

        @drsmithy,
        “Wouldn’t mind some of your stuff”
        Duuuuude, no stuff required here. Fun times…clean and simple.
        Good to know the label on the pidgeon hole tho.

      • Duuuuude, no stuff required here. Fun times…clean and simple.
        Good to know the label on the pidgeon hole tho.

        If you don’t want other people telling you what to do, it’s only fair that principle applies to everyone else.

        Might makes right in an anarchist world. No authorities means no rules which means no protection for the weak except at the whims of the strong.

      • interested party

        @drsmithy,
        “Where do you live again ? Wouldn’t mind some of your stuff – you won’t call the police right ?”
        Ok, I will admit a level of initial misunderstanding when I first replied. My mistake. Got the idea on your second note.

        To fill in some holes in your understanding from where I come, have a read of this. That will help you see my perspective.
        “I would like to rehabilitate both Kropotkin and anarchy. People who bother to read Kropotkin’s lucid and unpretentious writings quickly realize that he is first of all a natural scientist, who approached the study of both nature and human nature using the same scientific method. He was also a great humanist, and chose the path of anarchy because, as a scientist, he saw it as the best way to improve society based on successful patterns of cooperation he observed in nature. He had no use at all for the vague metaphysics of Hegel, Kant or Marx. He also had no use at all for the imperial state, be it communist or capitalist. ”
        http://cluborlov.blogspot.com.au/2012/10/in-praise-of-anarchy-part-i.html

        My basic understanding is that all political systems constructed in modern times were/are designed to facilitate the channeling of all resources to the hands of the few, via taxes, debts, resource financialization, and labour. All kept together with the pretension that your vote means something. Why is it that the western way of life is so extractive, yet we are so democratic? The logical conclusion to me is that the political systems have failed to protect the well-being of the natural system we rely on to survive so therefore to support the current models is to support the continuing failure…..sorry, but I cannot do that.
        Your response about ‘taking my stuff’ shows that maybe you have not noticed the true understanding of ‘anarchy’….or at least how it relates to the natural world. I know that this system is unlikely to gain traction while it is business as usual, but I do expect it to come to the fore when the energy equation shows red lights and society starts to unravel a bit.

        To borrow from Orlov…..”My own personal working definition of anarchy, which has served me well, is “absence of hierarchy.” The etymology of the word is ἀν (not, without) + ἀρχός (ruler).”

      • The problem with anarchy is the same as the problem with all other extremist philosophies, it relies completely on people to “do the right thing” (where “the right thing” is whatever behaviour the system relies on to continue functioning as envisaged) with no checks or balances.

        The fundamental premise of anarchy, as I understand it, is the lack of an authority that can sanction others. The problem with this is that without such a thing, you cannot enforce rules – ie: you cannot have a system of laws.

        As soon as you have some group of people to decide on, and enforce, the Law – *no matter how that group is structured, brought into existence and dissolved* – you have a form of government and have destroyed the fundamental premise upon which anarchy is built. At which point the discussion becomes one about the scale of Government, rather than its existence.

        My basic understanding is that all political systems constructed in modern times were/are designed to facilitate the channeling of all resources to the hands of the few, via taxes, debts, resource financialization, and labour.

        I think we can fairly safely leave the “in modern times” out of that statement. 🙂

        All kept together with the pretension that your vote means something. Why is it that the western way of life is so extractive, yet we are so democratic?

        As Stephen Morris has opined here on numerous occasions, we’re NOT that “democratic” in most countries that claim to be. It is these systemic flaws in the democratic processes of most western countries that have resulted in the capture of their Government by “extractive” interests. In particular, it is the inability of the people to circumvent the politicians and their lackeys.

        Your response about ‘taking my stuff’ shows that maybe you have not noticed the true understanding of ‘anarchy’….or at least how it relates to the natural world.

        I hadn’t considered it in the context of “the natural world”, but if anything that strengthens my point. The natural world is a harsh, brutal place where the only thing that matters is strength (which may manifest as raw physical strength, intelligence, co-operation/pack behaviour, etc). The natural world does not have empathy or altruism outside of very, very limited scenarios.

        In short, if you want to be able to have rules – Law – and protect the weak from the strong, you need *some form* of Government.

  18. GunnamattaMEMBER

    sounds like a start……

    There certainly is a place for identifying the revenues versus taxes paid and offsets utilised by corporate Australia….

    But lets go the whole hog and have a National Tax Register, which had everyone with a net budget position identified – all the negative gears, reductions through SMSFs, novated leases and capital gains tax dispensations balanced against social welfare and pensions payments – out in public…….

    Senate aims to out tax dodgers with register of offending corporates

    http://www.smh.com.au/federal-politics/political-news/senate-aims-to-out-tax-dodgers-with-register-of-offending-corporates-20150815-gizpdu.html

  19. GunnamattaMEMBER

    Given that China (where the vast bulk of foreign buyers are bringing money from) is a land with laws against moving more than a small sum out of the country the money laundering angle is the one where the biggest issue lay.

    Foreign buyers could face money laundering charges following policy blunder

    http://www.theage.com.au/national/foreign-buyers-could-face-money-laundering-charges-following-policy-blunder-20150815-gizpb8.html

    Ultimately is is all the more reason for a thorough audit of every last residential RE purchase by a foreign national, funded by a foreign national, or on behalf of a foreign national, for maybe a decade…….

    • TailorTrashMEMBER

      Totally agree …..there must be some scope here to show justice being done . If there are breaches of Foreigen investment laws ,money laundering laws ,tax laws, or immigration laws then remind me again why we Australian taxpayers pay for the parliament to make these laws and who do they apply to ??

  20. BoomToBustMEMBER

    http://www.zerohedge.com/news/2015-08-15/crisis-spreading-china-australia-brazil-canada-sweden

    Parital Extract:

    Australia – Over the last 20 years, China has been viewed as the growth engine of the world, and justifiably so. With annual growth rates between 8% to 15%, China’s economy was literally eating every rock, stalk and barrel of practically every commodity in the world.

    And naturally, any country or company that produced these commodities made a tonne of money – including Australia.

    Today, China’s growth rate has slowed to about 3% which is a dramatic slow down compared to what it achieved in the past. This slowdown and China’s effort to even maintain these rates, will have significant repercussions around the world.

    And the first up to bear the brunt of this slowdown is its closest supplier of raw materials – Australia.

    With dark clouds on the economic horizon, the Australian government and central bank is doing everything possible to prevent the unpreventable recession.

    Interest rates have been reduced to all-time historical lows, meanwhile the Australian Dollar has plummeted -25% over the last year. Yet – the negative outlook has not improved.

  21. TailorTrashMEMBER

    Totally agree….. got be some scope here to show justice being done . If there are Breaches of Foreign investment laws, breaches of Money laundering laws ,breaches of tax laws, breaches of immigration laws …….remind me again why we as tax payers have paid for the parliament to make these laws and who do they apply to again ??

    • From a quick read, Vancouver, San Fran, Seattle and parts of LA get a mention for being similarly (insanely) expensive.

  22. @R2M….

    This should perk you up….

    “SHARMINI PERIES, EXEC. PRODUCER, TRNN: This is the Real News Network. I’m Sharmini Peries coming to you from Baltimore.

    Examples of deadly extreme weather patterns are alarming. Droughts, killer heat waves, extended wildfires, drastically melting glaciers, typhoons, and extreme rainfalls leading to floods and landslides as well as sea level rises and mass die-off of animals all make it rather clear. For scientists, the debate has been long over. Climate change is here and these extreme weather events are the kinds of things we can expect more of in the future. But have we reached the point of no return? Is this extreme weather the new normal?

    To discuss all of this I’m joined by a two-member panel, Dahr Jamail and Guy McPherson. Dahr Jamail is a staff reporter with TruthOut. He currently focuses on the environment and climate change. And Guy McPherson is Professor Emeritus of conservation biology at the University of Arizona. Thank you both for joining us today.

    DAHR JAMAIL, INVESTIGATIVE JOURNALIST AND AUTHOR: Thank you. It’s an honor.

    PERIES: Let me start with you. The recent James Hansen report surpasses all previous predictions related to sea level rises. Why is that happening?

    JAMAIL: It’s because a phenomena is occurring called abrupt climate change, and it’s actually something I started to really become acutely aware of back in 2013, and became aware of Dr. McPherson and his work and conducted a long interview with him, and wrote a long article for TomDispatch.com called Are we already off the climate precipice?. And you read the article and the answer is clear, yes.

    And the fact is, when we look at, connect all the dots, which Dr. McPherson has done and has been doing for quite a number of years now, that it shows when we look at the pattern of for example the IPCC worst case predictions of, whether it be temperature increases or sea level rise, or CO2 in the atmosphere, the reality continues to dramatically outpace the worst case scenarios. And so the worst case scenarios in the modeling keep being amended with more new data coming in, and the reality is that the reality keeps outpacing it to the extent that even the modeling can’t even keep up. And we’re seeing things happening on such a fast pace now regarding extreme weather events, 1,000-year floods turning into 100-year floods turning into 10-year floods. Same with fires and temperature increase records, and all of this is happening so quickly and dramatically that there’s no question that this has been going on for years now.

    And I think, to cut to the chase, to kind of put this out there from the start, I think that any ideas of changing the situation are a pipe dream and don’t really show an extent of the knowledge of how far along we already are. And we’re in a position now where it’s kind of brace for impact.”

    http://www.nakedcapitalism.com/2015/08/climate-change-have-we-reached-the-point-of-no-return.html

    Skippy…. sorry about the heavy bias of the site tho….

      • IP,

        Water shortage is already baked in, multi-transnationals are all over it, water derivatives, so its not like mad scientists have wandered off the reservation when BSD are all over it too…

        I was going to industry consortium’s a decade+ ago, that were openly discussing positioning, all that was unknown was breath and scope x speed of events.

        Skippy… “Et tu skip?” what like R2M? Naw I don’t think gold will fix this one….

  23. Not to forget you 8~

    “Billionaire George Soros’s family office sold almost all of its stake in Alibaba Group Holding Ltd. in the second quarter, as Asia’s largest Internet company saw its stock decline further because of a slowing Chinese economy.

    Soros Fund Management owned about $370 million of Alibaba’s American depositary receipts at the end of the first quarter. As of June 30, it held a stake worth $4.9 million, according to a regulatory filing Friday. Alibaba has lost about $100 billion of its value since November’s record high.

    Soros’s firm trimmed its energy holdings during the quarter. Crude oil reached highs for the year in June, peaking at about $60 a barrel, before plummeting to current levels of about $42. The family office sold off its stakes in Cenovus Energy Inc. and Suncor Energy Inc. and reduced its holdings in EQT Corp. and Noble Energy Inc.

    The family office, which overseas about $30 billion, bought a new stake in Time Warner Cable Inc., making the company it’s second-largest U.S. stock holding. The company is awaiting regulatory clearance to merge with Charter Communications Inc. The position was worth $259 million at the end of the quarter.”

    http://www.bloomberg.com/news/articles/2015-08-14/billionaire-soros-sells-most-of-alibaba-reduces-its-oil-stocks

    Skippy…. not looking good for Texas….