Weekend Links September 17-18, 2016

Barbara and Auguste 1957 Charles Blackman NGV

Barbara and Auguste, 1957, Charles Blackman, National Gallery of Victoria

 

China

Asia

Europe

United Kingdom

United States

Americas

Terra Incognita

 Commodities

Capital markets

Global Macro

…and furthermore…

Comments

  1. Oooohhhh baby, here i am, first sealed and delivered!

    Sunday, May 17, 2009
    Chasing The Shadow Of Money
    For readers who have the time and interest to follow up on the topic Zero Hedge commenced yesterday discussing money liquidity and the shadow banking system”

    http://zerohedge.blogspot.com.au/2009/05/chasing-shadow-of-money.html?m=1

    In particular, it is necessary to take account of certain forms of credit not connected with banks which help, as is commonly said, to economize money, or to do the work for which, if they did not exist, money in the narrower sense of the word would be required. The criterion by which we may distinguish these circulating credits from other forms of credit which do not act as substitutes for money is that they give to somebody the means of purchasing goods without at the same time diminishing the money-spending power of somebody else. This is most obviously the case when the creditor receives a bill of exchange which he may pass on in payment for other goods. It applies also to a number of other forms of commercial credit, as, for example, when book credit is simultaneously introduced in a number of successive stages of production in the place of cash payments, and so on. The characteristic peculiarity of these forms of credit is that they spring up without being subject to any central control, but once they have come into existence their convertibility into other forms of money must be possible if a collapse of credit is to be avoided.”

    Yeah Skippy Hayek, what a demon

    • The neo-liberalism of Friedrich Hayek, who argued that the only determinant of human freedom was the market. In fact, Hayek also argued that any form of altruism was dangerous because it distorted the market. To avoid inefficiencies, altruism had to be purged from the human soul. Hayek described altruism as something belonging to primitive societies that had no place in the modern world.

      That you forward one of the key architects of neoliberalism as some sort of conta example of what has happened over the last 60ish years in bizarre. Not to mention all dramas with the banking sector and the advent of the shadow sector are a direct result of the ratchet effect by such economist over the period in question….

      Disheveled Marsupial…. I guess that’s what happens when you make it up as you go…. got any stuff from ZH on contrails or HAARP – ?????

      • What does the Clinton foundation have to do with the topic above, classic case of money as speech, which is again a product of neoliberal philosophical views.

        BTW if you had a period of high coke use or still partake do yourself a favor and read up on the neurology on the subject. Same basically goes for all strong stimulants and its resulting pathophysiology and neuropsychiatric diagnoses.

        Here let me help…

        http://emedicine.medscape.com/article/1174408-overview

        http://jnnp.bmj.com/content/75/suppl_3/iii9.full

        Disheveled Marsupial…. Paranoia is the big one…. watching the “Less than Zero” screen play unfold in real life was one of the reasons I move out of South Bay L.A., even tho I was living the so called good life….

      • Nah skip, purely recreational – for the fun. I’ve watched many mates and others take it past the point of fun and I refuse to stick around for the drama. I just go smoke my bllies in peace

      • 8 balls are not recreational use….

        Disheveled Marsupial… I would also add the recreational use amongst the financial sector during the halcyon days is an interesting footnote.

      • Lets not forget your party gal Ayn Rand and her amphetamine habit.

        Journalist Isabel Patterson, wrote to her: “Stop taking that Benzedrine, you idiot. I don’t care what excuse you have – stop it.” Certainly symptoms of amphetamine addiction – irritability, mood swings, paranoia – showed up in Rand’s personal relationships. Its curious, Nash paranoia, Rand paranoia, Hayek paranoia, seems repetitive, now that would not come through in their metaphysical opinions now would it – ???????? – about reality…. naw…

        Disheveled Marsupial…. Good grief just think if this became a group think and trotted out as some quasi-religious social template… the horrors…

      • “8 balls are not recreational use…” that really depends on whether you have it all or share with others

      • What like a rave…

        Sorry but, the edict of that culture is not a sharing kind of thingy….

        Disheveled Marsupial…. I personally knew many of the so called cocaine cowboys and white collar sorts back in the day mig, have you seen the movie Blow – ?????

    • September is winding up and the Cardinals might just make it to the playoffs…. I thought they had no chance, but thanks to the cheapened format that allows more teams than ever to get into the playoffs, they might sneak in.

      Once the playoff teams are set, I will do my annual postseason prediction which has had a horrendous track record.

      • And yet it’s one my annual highlights, along with Gunnas predictions company – which Janet actually takes seriously and makes the rest us look like rank amateurs

      • It is just like markets – last year was a case in point. The Mets had the pitching depth to win it all and I predicted that they would win the World Series. Alas, I couldn’t have predicted that their manager was stupid enough to use their excess starters for only 1 inning each in extra innings, and by doing so, neutralized their best competitive advantage.

        Sometimes, reasoned analyses and data-based projections are insignificant next to the power of the Moron Side of the Force. I think something similar happened to our Woolies.

  2. To kick the weekend off An old Clash song from Sandinista – Up in Heaven (Not only here)…
    [Verse]
    The towers of London, these crumbling rocks
    Reality estates that the hero’s got
    And every hour’s marked by the chime of a clock
    And what you going to do when the darkness surrounds?
    You can piss in the lifts which have broken down
    You can watch from the debris the last bedroom light
    We’re invisible here just past midnight

    The wives hate their husbands and their husbands don’t care
    Their children daub slogans to prove they lived there
    A giant pipe organ up in the air
    You can’t live in a home which should not have been built
    By the bourgeoisie clerks who bear no guilt
    When the wind hits this building this building it tilts
    One day it will surely fall to the ground[?]
    Fear is just another commodity here
    They sell us peeping holes to peek when we hear
    A bang on the door resoundingly clear
    Who would really want to move in here?
    The children play faraway, the corridors are bare
    This room is a cage its like captivity
    How can anyone exist in such misery?
    [Chorus]
    It has been said not only here…
    “Allianza dollars are spent
    To raise the towering buildings
    For the weary bones of the workers
    To be strong in the morning”

    It has been said not only here
    To raise the towering buildings

    “Allianza dollars are spent
    To raise the towering buildings
    For the weary bones of the workers
    To go back in the morning
    To be strong in the morning”

    • They all have ended up in fairly decent real estate, back in my raver days I knew one of the geezers from the Clash – Nick Sheppard. Proper sour cunt.

      • He picked up the act at the end of the project. Not his fault, dude; and most musicians would have taken that opportunity with open arms. Lots of non-conspiritorial references exist to bore yourself with. Chill.

      • I’m not having a go at Nick for anything other than being a proper sour cunt – seriously he’s not a happy shiny sort at all.

  3. Furthering the weekend reading list, can anyone recommend good books that helped you to understand economics or the world in general? I’ll offer “The Righteous Mind” by Jonathan Haidt – highly relevant to today’s extremes of political opinion.

    • “or the world in general’ Geez, that’s a pretty narrow criteria ?

      Metaphysics
      Ethics
      Politics
      – Aristotle

      You’re welcome

      • Mig’s on to it with his Metaphysics call.
        I recommend Rene Guenon’s The Reign of Quantity and the Sign of the Times
        Which will give you both “economy” and “the world in general”

      • Joel…

        Metaphysics…. see mainstream econnomists….

        Disheveled Marsupial…. as far as metaphysics and time – space goes Einstein sorted that out with Bergson “The time of the philosophers does not exist,”. That was in 1922, yet many of the axioms used in mainstream economics assume or conduct linear reasoning exercises from thoughts hundreds of years ago.

      • Yeah I should have left it at “economics” and only one book per person haha. Don’t know what I was expecting…

    • ease into this …..

      The Endless Crisis: How Monopoly-Finance Capital Produces Stagnation and Upheaval from the USA to China

      John Bellamy Foster & Robert Waterman McChesney

      https://www.amazon.com/Endless-Crisis-Monopoly-Finance-Produces-Stagnation/dp/158367313X

      Voltaire’s Bastards: The Dictatorship of Reason in the West

      John Ralston Saul

      https://www.amazon.com/Voltaires-Bastards-Dictatorship-Reason-West/dp/0679748199

      Hugh Johnson’s the Story of Wine

      Hugh Johnson

      https://www.amazon.com/Hugh-Johnsons-Story-Wine-Johnson/dp/1840009721

      Memoirs of an Old Bastard

      Jack Hibberd

      https://www.amazon.com/Memoirs-Old-Bastard-Jack-Hibberd/dp/B001PGQB60

      Poems from a Peach Melba Hat

      Shelton Lea (currently not in print)

      Economists and the Powerful: Convenient Theories, Distorted Facts, Ample Rewards (Anthem Other Canon Economics)

      Norbert Häring and Niall Douglas

      https://www.amazon.com/gp/product/0857284592

      • Shelton Lea, wonder where he is these days. Anybody else knew Shelton?

        Last thing he told me was to go and headbutt the universe.

      • Bloody hell Gunna, this will keep me going for years and I haven’t even started on this weekend’s links (which seems longer than usual)

      • @Young Ok

        Shelton died of cancer (liver from memory) back circa 2004-2005.

        I knew him reasonably well for a period in the 1990s – at a point where I think he knew much of real Melbourne.

        I finer man of words, student of life, and roller of joints I have never met. I was in Moscow by the time he died but another mate went along to the launch of ‘Nebuchadnezzar’ (his last collection) and grabbed a copy telling him it was for me. Everyone knew Jack Dancer had him by that stage and there wasn’t long to go. He took the time to scrawl out half a page of hope that Russia was treating me well and adios inside the cover.

        My favourite memory was of popping into his bookshop one afternoon when it was two doors down from the Lord Newry circa 1995 (before he moved up to Clifton Hill) just to drop a mate off. He talked us into staying (in the shop) for a counter meal from the pub and had a ‘luncheon truncheon’ rolled within seconds of us agreeing. Circa 5 hours later (and a number of joints and beers) we steamed out the door (having decided on leaving the car where it was) after having had more weird identities (from footballers to criminal lawyers, Barry Dickins, some minor actors in the local TV drama scene, a couple of thugs from the Carlton crew, some local aboriginal activists, and some corporate representatives from the Pratt family) pop in for a scout of whatever books he had for sale, some chat, and to share a joint. It was that kind of place and he was that kind of gent.

        We walked slowly around to Smith street where another mate (the painter Laurie Peterson) had an exhibition opening in a shop down near the Last Laugh, where we ripped into the turps, and concluded the evening by taking Laurie, a sculptor named Craig, and a wine writer to a disco in Brunswick street (in its pre babyboomer days).

        They were the days

      • Thanks GM for sharing your memories of the days of yore!

        Not many penguins left, and very few angry ones.

        Jogs my memory as I had a couple of hours on tape of Shelton passing down some history of life which I had his permission to use for background into Australian sports history – talked a lot about lionel rose and a couple of his counterparts who saw Ali and Foreman in the Congo also dropped by that day. I’ll have to dig it up. Shelton passed in 2005 (wikipedia) – like you, I’d already jumped continents.

    • I’m reading that at the moment.
      Did you read ‘Happiness Hypothesis”? I also found that to be good.

      ‘The Structure of Scientific Revolutions’ by Thomas Kuhn is great. Match it with ‘Physics on the Fringe: Smoke Rings, Circlons, and Alternative Theories of Everything’ by Margaret Wertheim

      It is almost so old as to be humorous but James Gleick’s “Faster: The Acceleration of Just About Everything” prepped me for the modern world when I read it 2000. It talks about information, the role of MTV in speed editing, news cycles and what not. A good book for perspective. I’m not sure how well it has dated.

      ‘Algorithms to live by: The Computer Science on Human Decisions’ by Brian Christian is good.

      ‘Thinking Fast, Thinking Slow’ by Daniel Kahneman is also a bona fide classic.

      ‘The Secret Pulse of Time’ by Stefan Klein is fascinating. His book ‘The Science of Happiness’ is also interesting.

      ‘Social Problems’ by Henry George is very prescient. It is quite spooky, and depressing, how the discussion of the social problems of inequality of his day mirrors ours so closely.

      And, John Stuart Mill’s ‘On Liberty’ always gets the mind ticking over.

      If I had to recommend just one of the above, it would be Kuhn’s ‘The Structure of Scientific Revolutions’.

      I’m sure that many people on here can each give you another 20.
      There are too many books and not enough time.

      Happy reading.

      • I thought Karl Popper sorted Kuhn, I guess you’ll get that when you confuse the meanings of terms such as “mass” with their references. While their meanings may very well differ, their references (the objects or entities to which they correspond in the external world) remain fixed.

        Disheveled Marsupial…. I does seem repetitive of the bad maths and physics that certain philosophers undertake in constructing their economic theory’s on – see neoclassical et al. Like your old mate David Friedman and his AnCap club.

      • “bad maths and physics that certain philosophers” oh yeah but an geometric series representing exponential expansion *cough* usury *cough* is super stable and just fine

      • I understand your lack of knowlage regarding how the monetary system works [regardless of whom is operating it and to what purpose], but that does not mean using your philosophical optics to analyze it is correct. Still waiting on that hyperinflation from almost 30T used to backstop the market due to all the fraud enabled in the decades of neoliberal thunkit….

        Disheveled Marsupial…. like I said Popper et al took him to task, but I can see why someone with Austrian views would dig it… more bias conformation… its a low bar mig…

      • Sounds like you have the same bookshelf as me. Been reading happiness hypothesis on and off between other things

    • do not endorse any of the ideas within yet – a couple out of these are worth a scroll for the pictures

      George Cooper, fixing economics
      Pick your poison – monona rossol
      Robert Whittaker – Anatomy of an Epidemic
      Lance Armstrong, it’s not about the bike
      Paul Krugman, International Finance and Economics
      MC Sniper – an anthology in Korean hip hop by Kyo Klzusterdauk

      • Thanks, and glad that you are a fan of Korean hop hop.
        I’m more old school, LeeSsang, Drunken Tiger, DJ DOC perhaps G-Dragon.

      • I like Krugman’s style of writing from what I remember so I’ll have to check it out. I’m sure I’ve seen that Korean hip-hop book recommended by someone before… must be good.

    • I also would very much appreciate suggestions. My background is Software Engineering, I’ve never taken any economics courses. I did toy around with retail forex trading (ergh) a few years ago as a bit of a hobby.

      I’ve been reading MB on and off for a while now, but have trouble following along a little. Basically, I’m a complete noob and I’m not sure where to start. I read MB, whocrashedtheeconomy, Steve Keen, and other random suggestions on here, but still have difficulty following along — I’d much prefer a more structured approach to learning if possible. Would ‘Debunking Economics’ be a good start? I’m just after a starting point, and happy to branch out from there..

      • I found Ha Joon Chang’s ‘Economics: The User’s Guide’ to be the best way to gain an overview of the subject. He tries to introduce a lot of different views and what underpins them. He also champions the notion that you can’t be pure. That all of their strengths and weaknesses and different environs and situations call for different thinking and approaches.
        It is also the book I send to people who show interest but don’t know where to start. It does not preach or attack so it is less likely to get people to ponder.

      • If you have a background in engineering, maths or physics you may never really be able to grasp mainstream economics as it has too many counter intuitive ideas – (beliefs, really). Looking at economics from the other side is like a bizarro world. For example, I have been forming the opinion that since about 1980, money has been transforming into a 2 dimensional medium (a complex number with a phase angle) and the persistent view of money as a scalar quantity is a fundamental impediment to understanding the economy. I think that is not an idea that many economists would embrace.

        There may not be too much point in trying to understand conventional economics as it is most likely wrong. So many people believe in the conventional ideas that you might be better off trying to work it out yourself from first principles.

      • DarkMatter….

        Agree in large part, studying main steam economics is mostly a means to understand how we got here, Heterodox is a good start. I would suggest for the period relevant in this last debacle that “Econned” is relevant i.e. covers a wide swath of territory, ideological, political, historical, et al, w/ reasoned argument and evidenced to support.

        Disheveled Marsupial…. WRT money bit I think its important to read “5000 years of Debt’ along with any other anthro delving into the topic matter, just to get a wider perspective on what money has been throughout history and its sociological status.

      • Start with Atlas Shrugged and go back and read The Fountainhead, it’s all the economic education you’ll ever need.

      • ErmingtonPlumbingMEMBER

        You did call 007 or mig a Spastic and fuckwit recently,.. in one of your epic and frequent verbal clashes with them.

        Very out of character I thought Skipp

        Were you on the piss?

        ?

      • There is no end or goal in reading, zarathustar. Remember, everyone is “a complete noob” when they were born, but you’ve got to start somewhere and there is no wrong answer. Just like there is no “get rich quick” scheme, there is no “get wise quick” scheme either.

        You may “prefer a more structured approach to learning if possible”, but you cannot do that for two reasons; (1) We as human species have not yet discovered all the laws of physics or economics. It is virtually impossible to design a more structured approach without all the ingredients known. (2) For the laws that are known, it is generally difficult to grasp their meaning or implications without applying them to a range of tangible examples by yourself.

        Anyways, the authors who have had the greatest influence in shaping my views are;

        For economics (not the world in general);
        Warren Buffett
        George Soros
        Michael Lewis
        Robert Kiyosaki
        Gerard Minack
        Jeremy Grantham

        Good luck!!

      • Ermo,

        Are you referring to this ?

        http://www.macrobusiness.com.au/2016/09/the-full-horror-of-planned-sydmelb-population-explosions-exposed/#comment-2707604

        Poor Skip gets a bit touchy when I point out that his general distaste of the MSP ski team, neoliberals, Milton, privatization, starve the beast memes, smaller govt types/stripes etc sits uncomfortably with his determined defense of the status quo when it comes to the monetary system – which involves the almost complete privatization of public money creation.

        According to Skip you are a totalitarian if you suggest that public money should be created interest free by the public sector with private organisations like banks free to operate as intermediaries between savers and borrowers of that publicly created interest free public money.

        Skip reckons a privatized model of public money creation with the vast majority of money created by large private banks could work fine if only we could find some honorable bankers and regulators to ensure that it doesn’t keep exploding on a regular basis.

        Nothing wrong with the design of the monetary system at all – just operator error reckons Skip.

        Questioning that very wishful thinking is however a totalitarian thing to do.

        Which is odd because most reasonable people are of the view that if totalitarianism is coming it is probably going to be driven by the financial sector (and their cheerleaders and support crew) as a means of maintaining their effective stranglehold on the monetary system which allows them to secure ownership of as many assets as possible. Pumping up the residential assets of 60% of the population is just a temporary alliance of convenience and their mortgages keep them in line anyway.

        At core what Skippy is trying to say is that he loves a public / private fusion monetary system like the one we have and reckons it would work a treat if only it was being run by the “good guys” .

        As to who the good guys are and how they are going to take power from the bad guys is never explained because Skip spends most of his time explaining how the bad guys control every institution and have managed to brain wash the entire world with their tasty Bearnaise Sauce.

        I am not so pessimistic. I think that if enough people start to understand the way in which fraudulent banking practices are protected by the state, how difficult if not impossible it is to effectively regulate them and easy it would be to end them altogether, action will eventually be taken by some country and the rest as they say will be history. The last barbaric reminder of commodity money as public money will be extinguished.

        Even if the private banks license to create public money is not completely removed I think it very likely that those powers will be restricted and we will start to see some countries experiment with publicly created interest free public money.

        Naturally, having the public sector create public money does not require the private sector to be restricted in its creation of private money – though some regulation of what private companies get up to is always a good idea.

        The issue is simple – public money should be created by the institutions of the public.

        There is no need and an awful lot to lose by continuing the current model where almost ALL public money creation is outsourced to private banks who then spray it at the prices of assets held by the wealthy (or wealthy enough)

        ,

      • I can’t reply to others, so will reply to myself.. Just wishing to say thank you for all the recommendations.

      • 007….

        MMT is not a political or ideological state of affairs [its accounting], where as AMI [positive money] is because it seeks to change the monetary system for ideological reasons.

        The vitriol is directed at those use deceptive tactics and BS to forward their agenda, one that imo seems to forget that the original founders of the Chicago plan are key neoliberal architects, as well, as the folks that ran everything into the ground in the lead up to the Great Depression in the first place, then acerbated it. It was only after Hoover and posse were removed and the New Deal enacted that anything got better.

        Disheveled Marsupial…. Positive money does not change the fact that MMT already can deal with the problems, so changing has to have another motive, folding the Fed back into the Treasury does nothing to change the dominate ideology within the political system, in fact, it gives more control to just that ideology. Positive Money is based on presumptions about what would occur without being able to substantiate other than rhetorical assumptions – imagination – assume a human being – action axiom…. sigh~~~~~

    • Thanks for the recommendation Ranald.
      I’ll add:
      The Selfish Gene – Dawkins (40 years strong for a reason)
      How to Create a Mind – Ray Kurzweil
      Fooled by Randomness, The Black Swan, Antifragile – Nassim-Taleb
      The Folly of Fools – Robert Trivers (evolutionary psychology explanation of deception/self deception)

      • Thanks Hector, I’ve enjoyed Taleb and Dawkins. I like evolutionary psychology so I might give Trivers a crack.

    • Where do you live?
      If in Melbourne I found a strange second hand bookshop the other week.
      It is in a Chinese Medicine clinic and is only opens as a bookshop on the weekends.
      A few of Gunna’s recommendations were there.
      The books are in good condition and I didn’t spot any that were over $10.

      • Brisbane. I tend to read digital or audio copies these days anyway and only buy physical books if they have pictures, as gifts, or if I really like them

    • I would have to second Skippy’s David Graeber recommendation (Debt: the first 5000 years), plus add Guns, Germs and Steel by Jared Diamond, Sapiens by Yuval Noah Harari, Life, Inc. by Douglas Rushkoff, and The Selfish Gene by Richard Dawkins. These are the five books I would make every year 12 student read if I were dictator : ) Oh, and for some incredible insights in the guise of light fiction, Ishmael by Daniel Quinn.

    • Neal Stephenson’s Baroque Cycle, Quicksilver, Confusion, The System of the World. throws much light on the monetary system.
      The Puritan Gift, by Kenneth and William Hopper , is a good companion to BC.

      Metaphysical: The Intellegent Universe by Fred Hoyle
      THe Psychadelic Manual by Timothy Leary

    • Only 2 hours in and already 27 comments, with Mig and skippy doing their usual thing, contributions from dumpling, more suggested reading than I can face in a year and socioeconomically piercing lyrics. Should be a classic weekend!

    • The Traveling Wilbur

      We all know why comments are down.

      Indeed. And as of this week I am now a member of your select club haroldus. It is… disappointing that the mod’s sense of humour is more refined / non-existent compared to ours. Suffice it to say I won’t be making any more comments about Rupert’s Australian media holdings. Or cost of living pressures. In the same sentence. Again.

      Perhaps someone needs to discern the difference between inuendo and inappropriate language? If it’s in the mind of the receiver/reader and not on the page, it’s fine. Just sayin’.

      • Yeah mate it hurts the first few times, especially when you are commenting with good will.

        It’s hard to tell if it’s an algorithm deleting comments.

      • sorry I should have been more clear. we are here for the comments and gonzo economics (which we love)

        i have been thinking about it – we can’t expect the mods to be experts beyond their fields.

        so therefore we have deletions in the absence of explanations.

      • The Traveling Wilbur

        Indeed Miguel. Indeed. However, some might say that some deletions are sometimes warranted. Though of course I couldn’t possibly comment. O:-)

        PS have you seen Skip’s deleted post? LOL. And… apparently it’s OK for us to abuse each other on a limited basis now!! Or at least that’s what the Mod’s post says. 😀

      • The Traveling Wilbur

        @haroldus They must be particularly small fields; and contain an abundance of barley.

        I’m quite proud of that one. It’s worth working it through if not obvious. Quite note-worthy really.

  4. Barbara looks worried about the future and is trying to protect Auguste from it. A more artistic version of the baby in the cross hairs pic that has disturbed some MB readers 🙂

      • Why do you have to wash your hands after visiting a(n) urinal if you don’t have a urinary tract infection, you don’t touch anything apart from your zipper and your old fella and you don’t pee all over your hands? More likely to pick something UP on your hands when you exit via the inwards opening door of the mens room – having observed over the years that plenty of dirty buggers fail to wash their hands after wiping their a–e while visiting the sit-down lounge in the men’s. Notice though that some designers have finally got the message and are installing mens (and womens) rooms with NO ENTRY/EXIT DOORS! Hoobloodyray for that!

    • He spat the dummy after being demoted from the defence shadow Ministry and wanted to wait until Shorten was out of town before quitting.

    • The Traveling Wilbur

      Dunno. But I wish he’d done it earlier. The ALP will be much better off without him. And I’m sure Kevin’s happy about it too.

    • Mining BoganMEMBER

      No great loss. He was a terrible salesperson for something that should have sold itself.

      Awaiting corporate announcement.

  5. Superannuation cuts will have to be revisited soon because the job is not even half done. Whenever I think of super, it conjures up the picture in my mind of Morrison shoving money from tax concessions down the throats of rich Liberal and National constituents. It is a grotesque representation similar to geese been forced feed corn down a metal tube to produce foie gras or pate. I think I need to recultivate the diversion of watching TV. Good articles Gunna.

    • I love how the ave austtralian retires with around $300k in super,… yet the max you can put in this tax structure is $1.6 mill?
      Given it’s effectively a tax free structure after 60, with the so called sole purpose of keeping people off SS, you would think to be fair, a cap of say $700 would be more appropriate? $700*4%=28k.

      • Mining BoganMEMBER

        Yep, that’s about the mark. Nobody with the ability to stash away 3/4 million needs any extra help after that.

        The fact that folk think $1.6m is fair shows what a rort it is.

        ps. My accountant was telling me yesterday what some folk are doing with their SMSFs. Think there’s going to be a few who aren’t going to get the retirement they expect. She also said I should stop giggling. She started it.

      • MB…

        The point is its only notional price until you take it out, last go saw 40pc – 60pc down drafts w/ some getting wiped out.

        Disheveled Marsupial…. and some wonder why old people are saying in the workforce…

      • TailorTrashMEMBER

        MB …….and what was it they were doing with their super that was causing the mirth ………buying property in mining towns ?

      • It is funny. I too have always thought that $700K pp was a reasonable lifetime limit for super accumulation. That is recognising that most people won’t get anywhere near it. I am no totalitarian commie. If people want to get much richer, that is fine; but let them do so outside the tax shelter of super.

      • What are some folk doing with their SMSFs? Stories please!

        +1 must know the details… Are they buying property that only goes up?

      • Ostriches? Ken Done originals? Jenny Kee originals? Signed Shane Warne shirts?
        The last Toyota Aurion?
        Sandalwood?
        Shares in the Yamaha jetski division? Vintage jetskis?

        Sex on premises sites?

        Farrkin what are they doin?

        Tell us. The suspense is killing us!

      • Mining BoganMEMBER

        No, I was sure accountants take some sort of hippocratic oath. It was property…just the types that had the eyes rolling.

      • No, I was sure accountants take some sort of hippocratic oath. It was property…just the types that had the eyes rolling.

        Dog box apartments I hope! That would be sweet sweet justice. I mean the property bubble gave the boomers their undeserved wealth, now it may taketh away at the same time. I can only hope in my sadistic haha sort of way it’s true…

    • ErmingtonPlumbingMEMBER

      Its all part of the privatisation of everything meme, instead of an egalitarian public pension system, we are getting a user pay, user lose ” mandated retirement savings” scheme with no guarantees a rapacious and thieving financial services industry won’t lose the lot, gambling at the global casino or evaporating the lion’s share of “earnings” with compounding fees.

      Looking forward to the day that super industry lobbyists gets outlawed, lump sum payouts with everyone only “entitled” to an Annuity thats not allowed to draw down on “your” balance until your over 80.
      A mandated privatised form of Taxation paid directly into the hands of the Apparatchiks of global Plutocracy.
      For whose long term benefit?,…ours?
      Of course not.

      • Spot on, ER. User pays for everything with the Libs, leaving the bottom 30% locked out of essentials, even when they have a need or merit e.g. Uni, Lib plans for health etc.
        Of course, the special irony is superannuation, where the top 20% get OVER three times in lifetime Government retirement assistance (contribution tax concessions and earnings tax concessions) than the bottom 20% (pension). “Self-funded” is a con.

  6. TailorTrashMEMBER

    “We need to be able to have an opinion about it, and not shut down by saying the word racist.”…….can’t argue with that …lets have more opinions and discussions ….http://ab.co/2cOvI36

      • Excellent speech by Lionel Shriver. The anti-Enlightenment crew are yet again something to behold. I would ask those morons a simple question: A romance novel has two characters, a white woman and a black man. Who is a allowed to write it?

      • TailorTrashMEMBER

        Good read ……..

        “Worse: the left’s embrace of gotcha hypersensitivity inevitably invites backlash. Donald Trump appeals to people who have had it up to their eyeballs with being told what they can and cannot say. Pushing back against a mainstream culture of speak-no-evil suppression, they lash out in defiance, and then what they say is pretty appalling.”

        And if we took “cultural appropriation” to its full extent the sales of Akubra hats would be a lot less…..

      • ErmingtonPlumbingMEMBER

        Akubra hats are predominantly worn by White males, who under no circumstances (unless they are Gay) are permitted to feel offended or be considered Victims of any transgressions,… as they are the sole perpetrators of all evil and oppression in this world.
        In a situation,… say at a party,…a person is wearing that very same Akubra hat,.. to show solidarity with regional Aboriginal people,.. then yes that could be considered “Cultural Appropriation”

        “Tolerant” Yassmin Abdel-Magied certainly seems a bit racist herself,.. but of the SJW, trendy and socially fashionable kind.
        Like taking the piss out of Redheads, talking down to Whitey is Cool.

        To her I say, Get fucked you new age fascist,.. your simply playing into the hands of the neoliberal plutocracy,..Dividing all, so that they may Conquer. (all of us squabbling over bullshit whilst the capitalist destruction of the world continues unabated)

        “The reality is that those from marginalised groups, even today, do not get the luxury of defining their own place in a norm that is profoundly white, straight and, often, patriarchal. And in demanding that the right to identity should be given up, Shriver epitomised the kind of attitude that led to the normalisation of imperialist, colonial rule: “I want this, and therefore I shall take it.”

        The attitude drips of racial supremacy,”

        “Humility is not Shriver’s cloak of choice”. ( translation,…Uppity Privileged white Bitch)

        “The kind of disrespect for others infused in Lionel Shriver’s keynote is the same force that sees people vote for Pauline Hanson. It’s the reason our First Peoples are still fighting for recognition, and it’s the reason we continue to stomach offshore immigration prisons. It’s the kind of attitude that lays the foundation for prejudice, for hate, for genocide.”

        Its people like Yassmin who are pushing supporters to fuckwits like Trump and Hanson,… not Ms Shriver.

        https://www.theguardian.com/commentisfree/2016/sep/10/as-lionel-shriver-made-light-of-identity-i-had-no-choice-but-to-walk-out-on-her

      • “Worse: the left’s embrace of gotcha hypersensitivity inevitably invites backlash. Donald Trump appeals to people who have had it up to their eyeballs with being told what they can and cannot say. Pushing back against a mainstream culture of speak-no-evil suppression, they lash out in defiance, and then what they say is pretty appalling.”

        LOL.

        Arseholes having their feelings hurt about being called out on acting like arseholes, insist other people should have to listen to them be arseholes without complaint.

        The cognitive dissonance is mind bending.

      • ErmingtonPlumbingMEMBER

        I was hoping to see you wade into the discussion Smithy.
        When I used the term SJW above I was thinking of you and your dislike of the term and almost deleted it.
        With the exception of our differing Views on Political Correctness, I consider you a Fellow Traveler Brother.
        I would be disappointed If you considered me a Prick,…but Lovable Arsehole,.. thats cool.

        Edit, Smithy do you really believe Lionel Shrivers speech without substance,with no truth to it? Did you read it?

        As for Yassmin Abdel-Magied commentary, is your take really the same? in full ?

      • TailorTrashMEMBER

        ‘I disapprove of what you (arseholes …. as I define arseholes) say, but I will defend to the death your right to say it”

      • Can’t keep a good narcissist from writing it all down, can ya. My Roolly Unique Life in 5 second takes. Nah, they’re not all watching you, darl. Some might be thinking you’re off to answer nature’s call, but that’s all. Maybe feeling a bit sorry for you missing out on a good dissing of the chattering classes et al. But that’s all, luv. Sorry to disappoint.

        https://www.theguardian.com/commentisfree/2016/sep/10/as-lionel-shriver-made-light-of-identity-i-had-no-choice-but-to-walk-out-on-her
        .

    • But she *is* racist. And a liar:

      “If anyone wants to have a go at what I said, I’d suggest go and read the speech, everything I said in it was factual, and especially about Muslims, Islam and the impact it’s having on our country.”

      There were several parts of her speech that were outright lies. That most obvious one that springs to mind is about muslim women being allowed to hide their faces in driver’s license photos.

  7. Now getting more junk/spam in the letter box — this time from McGrath on behalf of ‘groups of buyers [who] have recently missed out on a number of properties and are extremely keen to purchase’. Apparently ‘each group are in a position to purchase immediately and have requested we actively seek a property for them’.

    Usual real estate junk, panic buying, or more foreigners attempting to quickly move cash to Australia?.. This is just a suburb in the Newcastle region, approximately 7km from the CBD..

    There seems to be more and more of this junk mail over the last couple of months — even real estate agents attempting to spruik and dress it up as a community newsletter!

    • Went to a house open today, this guy was talking to his assistant so everyone could hear saying the place had a buyer at 5.9 mill that fell over at the last moment, new owner was devastated he was saying. I said to the guy was he Chinese and he said he couldn’t tell me, i.e. My thinking was the conversation was likely bullsht or a sale to a non resident as per normal.

  8. On Conroy’s retirement. If a politician leaves mid election cycle they should only receive a pension equivalent to the median wage, or newstart, until the cost borne by the piblic has been recouped.

    It will never happen, but it appears that something like this needs to be put into place.

    • The Traveling Wilbur

      You haven’t thought this through (unusual for you). That would have forced him to stay. A ‘Lose-Lose’ all-round. It’s always the bad ones that leave mid-term. We should be paying those ones more to leave as soon as they like.

      • My thought is that it would get them to pull the plug prior to the election.
        From the reasons given it seems that it wasn’t a snap decision.

        In regard to the bad ones going and the good ones staying, I don’t know how we judge which ones are lifters and which ones are the leaners. Whose there just for the politics and who is there with the sincere intention to try to improve things? Is there a performance index of sorts for politicians?

    • On the one hand I can understand that anyone in any job (particularly one requiring him to be away from family in Canberra for much of the year) reaches the point where they think to themselves ‘this isnt worth it’.

      But on the other hand he chose his career and could not possibly have deluded himself that his chosen career would not involve massive amounts of being away, and that family would require management in this context.

      I could even come at the idea that he has decided after a tough election campaign (possibly where he has run out of puff as it were)

      But what I expect is that there will be a nice comfortable board position somewhere lined up for him, and that he has access to that nice comfortable board position only through a public profile he has earned in his chosen career. At the point where the man has decided he wanted out of his chosen career he has either

      previously made arrangements.

      or

      provides a perfect example of the sort of post political career sinecure politicians have access to the moment they come off the public teat.

      If it is the former then he has shown some contempt for the voters (in their guise as taxpayers) who have given him his public profile by tossing them the bill for another seat to fill in the senate (which essentially just boils down to getting the Andrews government to nominate) after having fraudulently masqueraded through the last election campaign as someone going the distance this term.

      If it is the latter then politicians pensions and entitlements need to be looked at. All of them. I doubt if Conroy would be as egregious example of greed the way say Robb has pulled off, but it isnt a good look and it is time to call time on a number of practices Australia’s politicians seem to think they are entitled to.

      You could also assume the entitlements provided by taxpayers for post political careers would affect the remuneration the individuals assumed they needed from whatever new organisation they signed up for – meaning taxpayers subsidy for the private sector in a (presumably) high profile position.

      • the election was what 3 months ago and he’s gone?

        he’s been sprung with something he doesn’t have plausible deniability for. I am looking forward to the leaking of the salacious details.

      • The Traveling Wilbur

        Huawei deserve better than Conroy. Unless they’re sending him to China. Then that would get my vote.

      • In light of the words to the song, the voter voting for Hillary should be known as getting Clinton-rolled sung with a Clinton bobble-head. That is ironic:
        We’re no strangers to love
        You know the rules and so do I
        A full commitment’s what I’m thinking of
        You wouldn’t get this from any other guy
        I just wanna tell you how I’m feeling
        Gotta make you understand
        Never gonna give you up
        Never gonna let you down
        Never gonna run around and desert you
        Never gonna make you cry
        Never gonna say goodbye
        Never gonna tell a lie and hurt you
        We’ve know each other for so long
        Your heart’s been aching
        But you’re too shy to say it
        Inside we both know what’s been going on
        We know the game and we’re gonna play it
        And if you ask me how I’m feeling
        Don’t tell me you’re too blind to see
        Never gonna give you up
        Never gonna let you down
        Never gonna run around and desert you
        Never gonna make you cry
        Never gonna say goodbye
        Never gonna tell a lie and hurt you
        Never gonna give you up
        Never gonna let you down
        Never gonna run around and desert you
        Never gonna make you cry
        Never gonna say goodbye
        Never gonna tell a lie and hurt you
        Give you up, give you up
        Give you up, give you up
        Never gonna give,
        Never gonna give, give you up
        Never gonna give,
        Never gonna give, give you up
        Never gonna give,
        Never gonna give, give you up
        Never gonna give,
        Never gonna give, give you up
        I just wanna tell you how I’m feeling
        Gotta make you understand
        Never gonna give you up
        Never gonna let you down
        Never gonna run around and desert you
        Never gonna make you cry
        Never gonna say goodbye
        Never gonna tell a lie and hurt you
        Never gonna give you up
        Never gonna let you down
        Never gonna run around and desert you
        Never gonna make you cry
        Never gonna say goodbye
        Never gonna tell a lie and hurt you
        Never gonna give you up
        Never gonna let you down
        Never gonna run around and desert you
        Never gonna make you cry
        Never gonna say goodbye
        Never gonna tell a lie and hurt you

  9. ErmingtonPlumbingMEMBER

    How do we ‘Vote” out the Corporate sector. They don’t seem to be doing a very good or ethical job of running the world.
    Maybe with more power they will do a better job of it.

    The “End game”, feels like it’s getting closer.
    Tin foil hat time for Mr Plumber?

    • Nah Mr Plumber, the corporate sector wants you to question yourself about whether it is tinfoil hat time because they know that when they are asking if it is tinfoil hat time for them then they have problems.

      It is time for quiet acts of corporate protest…..

      Their running of our lives is placing us on hold (on a massive scale) listening to bullshit (on a massive scale) being told our voice is being recorded ‘for coaching purposes’ (on a massive scale) and ultimately being put through to a peon reading from a script who is employed either offshore or on a six month temporary contract and who has the job of first convincing us we are wrong and that there is no way to have our concerns addressed (on a massive scale).

      Witness our parliament.

      They put us through loads of bullshit
      it feels like hits and memories
      Anything trying to make it inside from outside the mainstream gets media grilled (for coaching purposes)
      and they seem to have adopted (both sides) an initial position of the electorate is wrong in its expectations, and that if the electorate wants change then it cant be done.

      Their default position is that we will continue to pay up, or give up, and that we will not incur the costs of breaking the contract – and the status quo is easier.

    • “How do we ‘Vote” out the Corporate sector.”

      By not giving them your dollars, brother. Remember that time Starbucks had to close down most of its shiny new outlets in Australia?

  10. Nassim Taleb Exposes the World’s ‘Intellectual Yet Idiot’ Class … Zerohedge

    http://www.zerohedge.com/news/2016-09-16/nassim-taleb-exposes-worlds-intellectual-yet-idiot-class

    Authored by Nassim Nichaolss Taleb via Medium.com,

    What we have been seeing worldwide, from India to the UK to the US, is the rebellion against the inner circle of no-skin-in-the-game policymaking “clerks” and journalists-insiders, that class of paternalistic semi-intellectual experts with some Ivy league, Oxford-Cambridge, or similar label-driven education who are telling the rest of us 1) what to do, 2) what to eat, 3) how to speak, 4) how to think… and 5) who to vote for. … read more via hyperlink above …

    Nassim Nicholas Taleb – Wikipedia, the free encyclopedia

    https://en.wikipedia.org/wiki/Nassim_Nicholas_Taleb

    • A friend of mine (who loves Taleb) lol’s about the IYI often. She says ‘Intellectual charlatans rely on people doubting their own intelligence, whether it is economics or postmodern theory’. Solipsism isn’t the answer either, but it only takes the merest effort to understand most things.
      Terrece Mckenna – Trust Yourself

      https://www.youtube.com/watch?v=oHSDvSkPD7U

  11. Went to sn open house this afternoon. The 2 bedroom villa have more than 20 parties queuing up to go in, as you can’t fit everyone inside at the same time.While it is partially due to a lack of places for sell, it is still pretty crazy.
    Real estate prices in Sydney is going boom right now.

    • Do you know what’s depressing about that debate? The end where they took a survey and more people think that boomers DON’T have to pay their way… So nothing should change apparently… They deserve everything they have and we should just shut up and put up…It makes me hate boomers if I’m honest…

  12. ‘Still, some of these instruments are still paying interest. Last year, Yale University collected $153 in back interest on a perpetual bond issued by the Water Board of Lekdijk Bovendams in 1648 to finance the repair of a dike. (To be sure, Yale acquired the bond for its Collection of Historical Securities in 2003, not as a fixed-income investment for its endowment portfolio.)’
    https://www.bloomberg.com/view/articles/2016-09-15/the-perils-of-the-ultra-long-view-on-bonds
    An interesting read from the selection. Though understanding how the bond market will break is more important, as alluded to by other bond reads.

    • The Traveling Wilbur

      Thank you for posting that. That is now my second-favourite-of-all-time human history of planning story. Awesome.

      • The Traveling Wilbur

        @haroldus That would be to do with an ancient English uni needing to replace a 400 year old oak central beam (running down the centre of a major hall). Was going to cost a fortune to replace with modern engineered timber AND wouldn’t look right. Then committee thinks to ask grounds staff if the uni had any suitable trees on its own grounds that it could use. Reply: “Ah, we been wondering when you’d be wantin’ those.”. 500 odd years ago someone planted the specific oak variety in the grounds in bulk, for use for end-of-life of the then being planned roofing. That’s planning.

      • “Then committee thinks to ask grounds staff”

        That’s administration! Good luck getting that foresight at most universities

    • Hope who ever buys it likes painting….

      Disheveled Marsupial…. yeah its a bit inelastic at the moment, relative is selling their place over by the Governors place in Bardon.

    • wow 1.35 and still the greedy owners didnt sell..and its on the lowside!!

      you could buy a house on laurel ave for that price

    • Wow I’m surprised that house didn’t sell for 1.5 mil – Queenslander on a double block that close to the city. Those agents need their arses kicked. All you needed was to get a couple of Asian buyers trying to outbid each other and you would have gotten to 1.5 easily. The reason I say this is because of the amount of rampant subdividing going on in Brisbane. It’s not unusual to see homes on blocks like this renovated then slid to one side and then the divided empty block sold off or an new double story 5 bedder built on it and then sold all in within 6 to 12 months.

  13. From Mr Kohler

    “Australia’s colossal mining investment boom, which involved two years of $24 billion per quarter of capital expenditure for resources exports, is well and truly over, but it will definitely result in net exports contributing at least 2 percentage points per annum to real GDP growth for 15-20 years.”

    http://www.theaustralian.com.au/business/opinion/alan-kohler/housing-a-risk-but-australia-wont-have-a-recession-for-years/news-story/0b8d20a28bf72bd7b99243fe4e87efec

    • TailorTrashMEMBER

      And there was me thinking retirement and old age was a time of contemplation,evaluation and preparation for what comes next ……………..when I should be figuring out how to get a few more quid fron the Gov …( but of course there are many people who genuinely need this government crutch in later years so let’s not tar all old folks with the same brush ) …..and I do so hope Heaven has not been privatised and bought by private equity when I get there ……….or worse still …entry is by auction action ………..

    • TailorTrashMEMBER

      ……..And there was me thinking retirement and old age was a time of contemplation,evaluation and preparation for what comes next and not a time when I should be figuring out how to get a few more quid from the Gov …( but of course there are many old people who genuinely need this government crutch in later years so let’s not tar all old folks with the same brush ) …..and I do so hope than when I hopefully get there Heaven has not been privatised and bought by private equity……or worse still …entry is by auction action only ………..

      • That’s a nasty stutter you have there, TT TT TT TT TT TT.
        Happens to me too with the advancing years. Furfurfurfuck it.

      • TailorTrashMEMBER

        RRRRReuuested deletion of FFFFFFisrt draft NNNNNot AAAAActioned ……….yeh ! …. old age has its challenges ……..

    • Really don’t understand the argument, its based on the notional price of a primary residence in a specific point in time, as such in the event of a downward correction that number is rubbish. One might make the same argument for Corporations why do they receive such public largess, especially when the primary recipients of remuneration have a nasty habit of jacking up asset prices.

      Disheveled Marsupial…. Before the whole RE debacle [industry driven] the olds used to corner the market on vending machines to gain some cash flow et al….

    • Stuff like this should keep people from making black and white “market value” based observations….

      A Sour Surprise for Public Pensions: Two Sets of Books [NYT]

      When one of the tiniest pension funds imaginable — for Citrus Pest Control District No. 2, serving just six people in California — decided last year to convert itself to a 401(k) plan, it seemed like a no-brainer.

      After all, the little fund held far more money than it needed, according to its official numbers from California’s renowned public pension system, Calpers.

      Except it really didn’t.

      In fact, it was significantly underfunded. Suddenly Calpers began demanding a payment of more than half a million dollars. …

      It turns out that Calpers, which managed the little pension plan, keeps two sets of books: the officially stated numbers, and another set that reflects the “market value” of the pensions that people have earned. The second number is not publicly disclosed. And it typically paints a much more troubling picture, according to people who follow the money – allen

      • The Traveling Wilbur

        If I was in Citrus Pest Control District No. 1 I’d be pissing myself. They reckon those Citrus Pest Control District No. 2 guys have always been sh1t.

      • If I was someone counting on their pension I would be pissed.

        Disheveled Marsupial…. NC has been chronicling this issue for some time, lots of insider stuff with PE mobs et al… do you feel safe – ?????

  14. Funny when we play the argies we look all right.

    But fuck me Quade C is a fuckin turnstile. I said to my mate I bet he has a very limp handshake. He replied “Queenslander”, which I thought was a little unfair. No one’s whinging when the call goes out for a banjo player.

  15. Listening to Metallica. Best Metallica song……

    Saint Anger.

    Am pretty sure I won’t find much agreement here, but the fast bit rattles on! I love the snare ring. And when the toms come in at the start. Not a huge fan of double kick but when in rome etc. I couldn’t stand that thin distortion they started out with so this guitar sounds pretty good to me.

    Also awesome video.

    Saint Harold, he never gets respect.

    I want my anger to be healthy!

    I need to set my anger free!

    I used to dislike lars, but you can’t really argue that it’s his band. And look at his dad.

    • My lifestyle, determines my deathstyle!

      Fuckin yeah!!!!!!!!1

      Harry’s bangin his head.

      No houses, boomers, bankers, critics, censors, or politicians. Just fuckin rock.

      I fuckin recommend it.

      Fuck everything. What is the fucking point. What have you left when you go? Fuck all.

      Let it fuckin go.

    • St Anger? Christ sell out zone. Enjoyed them up to Master of Puppets but after that, meh. Metal up your Arse was by far their best album (though most outside a very small hard core would even know this album and the accompanying picture disk).

      • i will argue the opposite of your point with a pompous essay, but not now. for obvious reasons. tomorrow arvo hopefully.

        ps the most unusual people like metallica

    • Protector of the kennel!

      Obituary birthday!

      Clash? Lame. How bout some kurt. A whole essay in uncomfortable images and impending death. Milk it. He’s got less than a year. Who is kurt’s own pet virus?

      I am my own parasite
      I don’t need a host to live
      We feed off of each other
      We can share our endorphins
      Doll steak!
      Test meat!
      Look on the bright side is suicide
      Lost eyesight I’m on your side
      Angel left wing, right wing, broken wing
      Lack of iron and/or sleeping
      I own my own pet virus
      I get to pet and name her
      Her milk is my shit
      My shit it is her milk
      Test meat!
      Doll steak!
      Look on the bright side is suicide
      Lost eyesight I’m on your side
      Angel left wing, right wing, broken wing
      Lack of iron and/or sleeping
      Doll steak!
      Test meat!

      I don’t even think this is a good song in terms of music and kurt has done the lamest solo ever but it’s pretty spooky.

      Kurt was definitely a great.

      • Although I am listening to Heart Shaped Box through my studio monitors and it’s sounding sadly dated.

    • “i will argue the opposite of your point with a pompous essay, but not now. for obvious reasons. tomorrow arvo hopefully.”

      I hope I have no point. Metallica was really a band of 2 halves and even 2 types of fan. My groomsmen at my first wedding were founding members of a local thrash metal band, managed to play support for Slayer when they toured and can mostly blame their tattoos and metal heritage to a little misleading from an older uni student (me) who enjoyed hard, fast and loud music. We fell into the former Dave Mustaine group. I have their entire collection and do enjoy some of their work more than others. But like anything in this genre, personal taste in bands and songs varies greatly. So please, I respect your right to disagree but please, spare me the lecture 🙂 HA HA HA HA

      • and apropros of nothing, if i mentioned the words Phrygian, or Lydian, or Locrian, how would you feel? Not being a smart arse, just curious.

    • Looking at the 3 words, I would say they have Greek origins and based on your previous posts and the fact they have little to do with Biology, I would suspect that they are musical terms. Other than that, they mean very little to me other than Lydian is possibly from the character Lydia and Phyrgian rings a bell from greek stories though my classical education was never reinforced in the intervening years so I cannot recall from where or what….

  16. Anyone got access to Gotti’s commentary about the apartment “crash”?

    He seems to be sounding even more crashnik than much of MB these days …

    Edit: Title is “Brace for hit as towers tumble”

    • I’m not a big Gotti fan but the timing of this announcement is interesting.
      In my mind it raises the question:
      Should a respected journalist be warning his readers early of upcoming disaster?
      OR
      Should he wait till the last moment, when the profits from the all long strategy are at their peak?
      The moralist in me wants the warning early, the trader in me just wants the right facts delivered at the right time.
      Creates an interesting conundrum, especially for those young journalists that will never know the job stability that came with a major masthead news career, should they say @#$% the long term nobody pays me to be morally righteous, they pay for results, maximized returns is all the Aussie public really cares about…my job is to deliver the correct decision signals at the correct time.
      MB has been dead wrong on RE for a long time, even if Sydney RE retraces by 50% it’ll still be well above MB’s original overpriced call. Personally I can afford the luxury of morally agreeing with MB’s bad call, unfortunately many readers couldn’t afford the luxury of ignoring the market’s price signals for sooo long.
      Personally I say if Gotti delivers what’s needed when it’s needed than more power to him, Just In Time manufacturing was transformation so why not JIT journalism!

      • Just In Time manufacturing was transformation so why not JIT journalism!
        Great point. But when journalism is driven by the same optimization strategies as manufacturing its no longer serving its original intended purpose.

      • Um, interesting…. I sense that perhaps this time it may pay off to short CBA – it went ex-div last month, so it won’t pay another div till next February. It just printed its 52 week low last week…. the technicals look promising…. and the calendar has turned to the historically bad months for stocks. Looks like all the stars are aligning…… and the fundamentals… oh well, never mind.

        As they say, never waste a good crisis, let alone a great one!!

      • PS

        You do realize that “JIT journalism” has tremendous values in it, right? Could you give me one good reason why a “JIT Gotti” would divulge his/her findings until he/she has made all the right trades based on his/her JIT information (but then by the time it is broadcast it wouldn’t be JIT any longer, would it)?

    • Sorry I dont know how to format stuff (and I am fairly inebriated)

      It’s a long way down in looming apartment fall

      The Australian8:07AM September 16, 2016
      ROBERT GOTTLIEBSEN
      Business columnistMelbourne
      @BGottliebsen

      While Australia debates its interest rate policy, the mass failure of many Chinese buyers to settle on apartment contracts is looming as a much bigger catastrophe than markets are expecting.

      This emerged from the comments of a reader to my commentary yesterday on the Sydney and Melbourne apartment markets in the light of a warning by Meriton’s Harry Triguboff (Apartment market ‘sinking fast’, September 15)

      One of my readers who did not allow his full name to be published but used the name “James” complained that I had grossly understated the problem.

      James revealed that he owned and ran a debt and equity funding business that is on the frontline of the apartment settlement problem. His business deals with the developers of the apartment complexes rather than rather than the investors.

      James describes what is ahead this way:

      “The problem is much worse than what you have described. Our analysis of every development in the country suggests that settlement failures will be between $1 billion and $1.5bn every month for the next 12 months. This is from the Chinese alone, but when settlement prices start coming more than 10 per cent under purchase prices, we will also start to see local buyers attempting to walk away from settling. As Julius Caesar famously said: ‘the die is cast.’”

      To understand the implication of what James’ analysis reveals we need to step back and see how the apartment boom was funded.

      Most developers of apartments in Australia collect their Chinese off-the-plan deposits and then use them to gain security for a bank loan. Those bank loans can constitute 40, 50 or even 60 per cent of the cost of the apartment complex. The developers obtain the rest of their funding from businesses like those operated by James.

      This is an area of finance which we know very little about because it is hidden from public view. The banks feel they are safe in their loans to developers because there is a big difference between their loans and the cost of the buildings. But the banks are often funding other players in the apartment development. Apart from the developer, the people at risk include unsecured suppliers and the enterprises that are providing the second mortgage funding.

      If the Chinese fail to settle on the scale that Harry Triguboff is warning about, then there will be a deep problem. But if James’ study is correct that deep problem will develop into an economic catastrophe.

      I write about apartments and Harry Triguboff because it’s an important issue for the nation but I know that any such commentary attracts people who disagree with me and I welcome their commentary.

      Many readers were upset that I equated the banks demand for financial information from Chinese buyers with the “language test” used to block migrants in the 1950s.

      I used the analogy not to suggest banks are racist — it is the sort of information that they require of locals — but rather to underline the fact that the Chinese can’t comply, so we are creating a crisis that will have wide ramifications.

      Many readers will be delighted about the looming price fall but Australia undertook this enormous apartment development project in the belief that the Chinese would settle their contracts as they had done in the past.

      But the combination of China’s tougher stance on funds leaving the country and our banks’ lending requirements means the boom was based on premises that turned out to be wrong.

      Just as the collapse of the mining investment boom ravaged the economy, we must gird ourselves for another potential disaster. And when that disaster hits be ready for the Reserve Bank, APRA, the Chinese buyers and the big four banks to point their fingers at the other.

      On the basis of James’ research and Triguboff’s experience, we face settlement failures of at least $1bn a month for 12 months — that’s $12bn as a minimum. It could be $18bn. And then it will be the locals’ turn, who, facing losses because of the price falls, will also not want to settle.

      As a warning of what is ahead, Vancouver, which recently imposed new charges on Chinese investors, is experiencing a fall of about 10 per cent in residential property prices. In some areas, particularly expensive residences, the fall is even greater.

    • “To understand the implication of what James’ analysis reveals we need to step back and see how the apartment boom was funded.”

      That is the corner stone to the entire problem…. everything else is just a bad case of a drunk looking for their car keys under the street lamp…..

      Disheveled Marsupial…. was securitization demand pull or MERs et al…. a cough…. supply and demand problem….

    • TT…

      The shadow sector is a result of unrestricted capital flows due to free market opinions some decades ago, more efficient allocator of capital arguments, largely unregulated, mix in tax haven flow dynamics…..

      • TailorTrashMEMBER

        And lots of efficient half finished empty buildings in China too ……..we on a per capita basis might be headed for the same place …..

    • Like I posted last week, this issue has divided close knit groups of friends who left China in the early 90’s.

      • “Ms Chew said the wielding of political power by China worried her as it made Chinese in Australia look bad.

        “The mainstream will brush all of us the same,” she said. “In this air of xenophobia, which currently shadows Australia, well, it doesn’t help the situation.”

        Pretty funny, it’s not the treating of Australian politics like a province – with our pollies naturally obliging – where money makes anything good. No it’s how it looks…

      • My inlaws grandparents left China in 1949, with the KMT just because a person is Chinese heritage doesn’t mean they subscribe to the garbage said by the PRC and their sucker ups here of the likes of Bob Carr.

      • I can imagine there is a lot of anguish in certain segments of the community. That anguish might spread to more newly arrived segments when they realise Australia isn’t quite what they thought it would be and that Australian citizenship perhaps doesn’t get them what they thought it would. It takes a long time to leave China, now more than ever.

    • One of my neighbours here in Geetroit is a man given permanent residency by Bob Hawke after Tiananmen Square. He is far more virulently opposed to much of the pro-Chinese crooning we see in the press on almost any given day, than most of the MB crowd.

      He is also regularly in my ear about the corruption which funds all the SIV set, and many of the families of minor bureaucrats, and people in state owned entities buying Australian houses (which he also thinks is a serious issue here). Though he does think there is a racist tone in some of the comments posted here.

      • Doesn’t surprise me 1 bit, I mean why would the Chinese who left China want to see Australian turn into China? Surely they left for a good reason after all?

    • GavekalDragonomics do make the interesting point nonresidential construction rarely outperformed residential construction before 2008 but did so consistently afterward… nonresidential construction rarely outperformed residential construction before 2008 but did so consistently afterward… that the new wave of mixed-use property development has coincided with a massive structural shift of consumer spending online, away from physical retail channels. At the same time the changing structure of the economy has resulted in slower rather than faster growth in consumer spending, with much of the growth coming in services other than traditional retail … ouch!!!!!

    • That is an interesting piece of writing

      It refers to an idea attributed to

      ‘Was the Wealth of Nations Determined in 1000 bc?’

      http://www.dartmouth.edu/~dcomin/files/wealth_nations.pdf

      and

      ‘Post-1500 Population Flows and the Long Run Determinants
      of Economic Growth and Inequality’

      https://www.brown.edu/academics/economics/sites/brown.edu.academics.economics/files/uploads/2008-15_paper.pdf

      and this

      ‘Overall, the relationship between a nation’s percent population of Chinese descent in 1980 and current economic freedom is strongly positive. Singapore, Hong Kong, and Taiwan, the countries with the largest percentage of post-1500 Chinese immigrants, are the freest. Hong Kong, which had only a few thousand Chinese residents before the British arrival, is now the economically freest country in the world. Malaysia (a third of whose residents are of Chinese descent) and Thailand (10 percent) are next, and Malaysia is clearly the freer of the two. The remaining countries, Laos and Myanmar, are substantially less economically free than Singapore. Of course, including China in this graph would weaken the relationship, but to repeat: we aren’t interested in ancestry per se, but in relatively peaceful migration.

      Economists have long known that some of the strongest statistical predictors of long-run national prosperity have been “percent Confucian” and “percent Buddhist.” A famed paper coauthored by Xavier Sala-i-Martin demonstrated that conclusively. It’s time for scholars to investigate whether, for most countries, a pro-Confucian migration policy is a good option.’

      which raises the issue that one of the other posters refers to above – that Chinese migration to Australia includes a lot of people who will have a strong emphasis on being ‘free’ and that this is large part of why they leave China (which I assume would mean they arent necessarily pro-China)

      But it would require them to bring wealth and for Australia to use it properly for it all to pay off.

      • Yes – a very interesting read. As cracks continue to appear in the foundations of what was supposed to be the economic end of history more voices and more points of view will be welcome.

      • It is difficult not to use expletives to describe the “logic” of the paper, but I will try. Trade brings people together (which also brings new ideas) and increases the wealth of the areas where trade occurs (and a concomitant desire for political representation and ultimately democracy). Also having access to sea trade helps (Laos is out of luck). Correlational papers like these are pretty bad.

  17. Mining BoganMEMBER

    Plenty of cyclists here. Any gravel grinders? I see the Giant Odyssey in the Otways has a 90k gravel event now. Thinking I might set up an old Nishiki steel frame I’ve got.

    Or is that just a soft way out of doing the Odyssey?

    • No shame in that. Not everyone is Adam Hansen.

      You’d appreciate this. I grew up in Cairns around the same time he did. My friend was a cyclist and told me about Adam when he was still a teenager. He was obsessed. He spent all his time on the bike. When others were at school he was clocking the kms. His regular ride was down from Kuranda, up and down Copperlode Dam, then out and up the Gillies, across the Tablelands, back down Kuranda range, up and down Copperlode again before ascending the Kuranda range to go home.

      • Mining BoganMEMBER

        Crazy talk. A ride from up the beaches to Copperlode and back was enough for me. I’ve done the cairns-gilles-tableland-kuranda-cairns but that was so we could stop the night at the Tolga pub and hit the drink.

        Our dedication kinda let us down.

      • Ive never been a roadie but I would occasionally dawdle up Copperlode because I lived near by. It was so long ago that I’d do it listening to Janes Addiction and Ministry on my Walkman! Now I’m happy to be able to do 40km on the flat bike paths around Melbourne.

      • Mining BoganMEMBER

        I hear you.

        Had nothing to do a couple of weeks ago so took the hybrid to Lilydale and rode to Warburton and back along the rail trail. That’s a nice easy ride for a good day out. Not on the weekend though. Too many serious types in all the gear who don’t say hello.

  18. This man seems very nice……..

    Just the sort of thing to get the Hanson crowd going, and an absolute Godsend for anyone wondering if the ALParatchiks were ever likely to clean up their act vis a vis property developer corruption – seems the answer is a resounding ‘NO’

    Wyndham councillor Intaj Khan faces probity, conflict, branch stacking allegations

    http://www.theage.com.au/national/investigations/labors-king-of-bling-tricky-questions-for-the-man-with-it-all-20160915-grgyd1.html

    Intaj Khan leaves the red Ferrari in the garage these days. For an aspiring Labor politician from Melbourne’s battling outer west, the car was generating too much fuss.

    The 43-year-old Wyndham councillor attracts plenty of attention anyway.

    In a few years he has built a $70 million fortune, his wealth coming from a controversial private training college and contentious, large-scale property speculation in his own fast-growing municipal patch.

    And then there’s the house.Khan has unveiled plans for a $10 million Tarneit mansion – probably the largest private residence in Melbourne’s west – to feature 16 bedrooms, two swimming pools, a tennis court, a 30-seat home theatre, a seven-car garage and a helipad.

    His critics say the “Intaj Mahal” is a monument to excess from a man who is almost certainly Victoria’s richest local councillor.

    Khan says it’s a celebration of migrant achievement in Australia. And after all, he could have built in Brighton or Toorak. “If the area is disadvantaged or poor you stay there when you make some money. If you love it, it’s like your mother; you stay with it.”

    Khan is eyeing the Wyndham mayoralty and has been accused in state parliament of bankrolling a small army of dummy candidates at next month’s council elections to help secure it……..

    • TailorTrashMEMBER

      It’s no coincidence that these extremely rich immigrants who have gotten their wealth from Australian taxpayer funded “education export ” businesses ( and linked immigration rackets ) can sport such impressive photo collections with all our key politicians ( the Dastyari briber had the same ) ………….when the guillotine is set up in civic place the Pollies should be first and then these leeches next ………..

    • Labor at the local level stinks in my area as well. Branch stacking and all the regular tricks. The rise of the Greens has been good in that it has provided an alternative.

  19. Crisis looms as Australians look to ditch private health insurance

    Almost 70 per cent of Australians with private health insurance have considered ditching or downgrading their cover in the last year in the face of relentless price rises and diminishing value for money, polling has found.

    Close to 80 per cent of people believe health insurance companies put profits before patients and more than 90 per cent are concerned they’re trying to “Americanise” the health system to boost their bottom line.

    http://www.smh.com.au/federal-politics/political-news/crisis-looms-as-australians-look-to-ditch-private-health-insurance-20160916-grichb.html

    Disheveled Marsupial… value for money….meets bottleneck extraction point for critical services [a neoliberal highlight]….

    • As someone who shells out 400+ bucks a month for private heath insurance I would observe that the current state of play with health insurance and the services they provide (and the day to day impact on family lives) the Health Insurance rort is absolutely disgraceful.

      For $400 per month I do wonder what the advantage is. I had a hip replacement earlier this year, and the surgeon said straight out to me that I would get the same service under the public system (indeed the only reason I did that under the private was to make sure that the private health insurance I had been paying for for 15 years (most of that while overseas) actually paid for something ) – it seems to me their first port of call is to shunt people onto the public system.

      The companies themselves (I swapped from BUPA – which had taken over my original MBF insurance somewhere along the line – to another earlier this yar, and they kept calling me for about 3-4 weeks or so as I swapped to tell me what a mistake I was making) run long on the idea of ‘peace of mind’ that I can have hospital treatment where I want with the doctor of my choosing, but my thoughts on the subject (and having seen my family through a birth, a child illness, a kids dental needs, and my hip replacement in the last 3-4 years) are that frankly I dont much care where procedures take place (except that they are clean – and there is little likelihood of that anywhere would be dirty here) and I generally wouldnt care even that much about the surgeon or specialist (except that they know what they are doing and the procedure or treatment is done properly – and even then I wouldnt personally know, which makes it all a sales pitch, which is where our health insurance premiums get focused – on the marketing).

      • 400 bucks?! Per month?! Fark, I’ve never had private cover and I go to doctors twice a decade anyway. Had this lump thingy develop on my achellis about six months, could barely walk for a couple of months there… Seems to be taking care of itself…

      • I’m so lucky my employer pays for mine.. Sometimes I don’t realise how lucky I am… I can’t believe what a rort that is.

    • Getting to the age where friends are having treatments and after paying for private health cover are stunned at the “out of pocket”” expenses that inevitably follow even though they thought they were fully covered. Yet to find anyone who has found value out of their private health insurance. That said, we have extras cover and that’s been gold, happy to go public otherwise.

  20. Dickensian approach to residential tenants lingers in Australian law.

    “Ms Shield’s experience is a timely reminder that the law, in form and in application, must ensure all tenants are provided with the basic necessities in rental properties. And, when landlords do not comply, there needs to be adequate access to justice.”

    It is a start, but we have a long way to go before renting is equitable for both tenant and property owner alike.

    http://www.abc.net.au/news/2016-09-13/dickensian-approach-to-residential-tenants-lingers-in-australia/7839118?section=analysis

    Edit: Just realised it was published in The Conversation first.

    https://theconversation.com/dickensian-approach-to-residential-tenants-lingers-in-australian-law-65146

    • We (in NSW) reported multiple problems to our agent 8 months ago, including the toilet not being properly stuck to the ground — causing a septic gas smell in the bathroom.

      Basically, we got into an argument with the agent who tried to claim 8 months later (including multiple follow ups from us during inspection, etc) the landlord ‘didn’t wish to proceed with repairs’ (urgent repairs, mind you). We called bullshit that the repair request hadn’t even been passed on. Once you start sending threatening letters advising of breaches, and threaten to go to NCAT — they do seem to pull into line a little. Add on top of that, issuing us a water bill 4.5 months late (the limit is 3 months, after which the tenant is not obligated to pay — at least in NSW) and then threatening eviction because it was ‘overdue’..

      After multiple of these incidents, and the agent quickly organising repairs after multiple threats to lodge with NCAT, they still wish us to sign a new lease — so it does seem to be bit of a renter’s market at the moment (at least locally), unless you’re in the unfortunate position of being low income. Having said that, they still attempt a rent increase when neither the agent nor the landlord can fulfill their basic obligations.

      I’m really failing to see why tenants should absorb the cost of horrendous ‘investment’ (speculating) decisions of slumlords who can’t even afford basic repairs. Even when the legislation is in place, a lot of tenants seem fearful about exercising their rights for fear of retribution, eviction, etc.

      Honestly, I just wish the entire thing would implode.

      • It’s a difficult one Zara, having been both a tenant and landlord it really does come down to the quality of the agency and the individual agent. There are shit landlords, we brought an ex-rental unit and the landlord did squat, Mrs Nut, accountant type, said he could have claimed all sorts of shit if only he did a bit of maintenance. That said, the last place we rented before moving into our unit, the first agent we had was fucking dreadful. It got go the point where I had to ring the principle to get shit done. The agent “went on leave” and the next one we got was fantastic. Mind you, have heard there are agents in Canberra that are a ‘no go’, they think it is there for given right to fuck you over. Rentals is not something I’d want to get into.

      • I blame negative gearing… I mean you’re bleeding money already. Then you have to do repairs on top.. more money. I’d say these landlords are pennywise pound foolish…..They think blowing wads of cash on an “investment” and then spending nothing on the maintenance of the property is clever…

        My landlord is that sort.. wanker he is.. yet loves the rent increase with the excuse “my costs have increased”. Well this year I’m refuting any such nonsense. We will see if I get an eviction or not, cause frankly my g/f hates the place, I hate mowing the fucking huge lawn in summer and doing the edges (I spent 4 fucking hours out there last weekend) and an eviction would be a good excuse to find something better.

        Only problem? We have a dog and I need 2 garage spaces, but if things get truly desperate I’ll hire a workshop or garage for the cars and shoot the dog (just kidding I love the bastard) but I am at the end of my tether.. I have even started to look in Newcastle for a house and considered living out there and commuting for 4 days (3 nights in a small flat in Sydney) then return to Newcastle…

        The Inner West of Sydney is full of specufestor rentals that are in shoddy condition.. in fact I read an article in the paper today stating that vermin, roaches and other pests were very common in those suburbs because renters didn’t have the money to take care of them and had tried to deal with them on their own to no avail. As someone who has to deal with cockroaches in the summer, I’ve been to Bunnings to buy sprays and crap to help keep them out, but they are only ever token efforts…

        I honestly can’t imagine buying the house I rent for around 1.6M when it only costs something like $30k per year to rent, rock and hard place. It would be nice if they turned the heat up a little on the landlord class and forced them to provide adequate accommodation for a change.

        The Government needs to enact legislation to just “let it happen”.
        https://www.youtube.com/watch?v=pFptt7Cargc

  21. I didn’t expect to see BKL in the list of most shorted stocks along with MND and WOW. On the other hand, CCV is not shorted at all – makes sense.

    • Could someone please start a guide to maximising your benefits as a young person who qualifies for the pension.

    • Mining BoganMEMBER

      Hmmm…his figures are worked on 2% bank interest, yet when my eyes are pulled to the right of this page I see an ad for 3.1%

      Do Noel’s eyes not get pulled right?

    • Gunna’s comment had an ’em’ (short for emphasis, usually meaning italics) tag that wasn’t closed properly and it seems to have affected everything after. I’ve put a closing em tag at the start of my comment but I’m not sure if it’s worked as the preview is still in italics.
      Edit: didn’t work lol.

    • sorted Gents, sorry. I have no idea why it would be that my comments (and their italics) would have that effect on everyone elses formatting…..