Links 23 June 2017

Global Macro / Markets / Investing:







Unconventional Economist
Latest posts by Unconventional Economist (see all)


  1. Mark Latham episode featuring Mr William Bourke was uploaded by The Rebel Media – and them alone I think.

    If I go to – the latest article says “why welfare needs to be abolished and replaced by tough love”.

    Oh dear Mark. Are you the same bloke who I voted for because you wanted to take funding away from private schools in 2004?

    Mark Latham used to upload videos under his own steam – why become a part of the Rebel Media?

    I am not sure if Rebel Media is anti-poor but their latest article seems to be.

  2. UK monetary policy: you cannot be serious? – Mainly Macro
    “The only thing you might worry about in these circumstances is that inflation might be more persistent than you thought because nominal wages start to rise as workers try and avoid falls in real wages.”

    UE I hope when you post this it doesn’t mean you have read it!!!!!
    What a load of complete drivel that reflects everything that is wrong with modern economic thinking. The stupidity of this is monumental. When the Western world is drowning in debt to an extent that out democratic and social institutions are about to come under severe strain these morons keep peddling this debt doesn’t matter crap.
    Equally this promotion of lower interest rates so we can all consume more of our world even faster is just so far beyond stupidity that it beggars the imagination. I’d guess that at the same time the bloke is some sort of hero in the conservation/anti carbon dioxide brigade.
    What do these blokes use for brains? It has to be the opposite end of their trunk to their head.

  3. “”China’s Trump Honeymoon: Unexpected, and at Risk of Ending – NY Times””
    The NYT has zero credibility. It is just a mouthpiece for the new York fraternity who think the rest of America is deplorable and needs to be forcefully and brutally ruled by a New York Democrat and her band of violent followers.


    Christchurch office glut leaves nearly 1 in 4 vacant |

    Some undeveloped sections in central Christchurch may remain eyesores for years as more office blocks are left empty than before the region’s earthquakes.

    Nearly one in four new central city office spaces are vacant – more than double pre-earthquake levels.

    Property researchers say the main development phase in the city is over, with just a few projects yet to come, such as the Spark building in Cathedral Square and the convention centre. … read more via hyperlink above …
    Not surprisingly, a Regional Economic Report by the Ministry of Business Innovation and Employment (MBIE) last November, stated compound employment growth over the past decade nationally had been 1.4% … an appalling quarter that within the Christchurch Council Area … some 4 times the national figure in the adjoining smaller and functional local government area of Waimakariri and a stratospheric 7 times in the smaller and functional Selwyn to the south.

    There are two types of local government in this world … the small and the bad.

    People and business have fled the political and bureaucratic mayhem for a normal environment to live and work.

    Christchurch ‘went to the dogs’ with the forced local government amalgamations back in 1989.

    Much has been written about these issues over the years …

    Christchurch: The Way Forward | Scoop News

    • Build Baby Build … Bryan Caplan … Library of Economics & Liberty … h/t WC …

      Ed Glaeser makes the case for housing deregulation for Brookings:

      Housing advocates often discuss affordability, which is defined by linking the cost of living to incomes. But the regulatory approach on housing should compare housing prices to the Minimum Profitable Construction Cost, or MPPC. An unfettered construction market won’t magically reduce the price of purchasing lumber or plumbing. The best price outcome possible, without subsidies, is that prices hew more closely to the physical cost of building.

      In a recent paper with Joseph Gyourko, we characterize the distribution of prices relative to Minimum Profitable Construction Costs across the U.S… We base our estimates on an “economy” quality home, and assume that builders in an unregulated market should expect to earn 17 percent over this purely physical cost of construction, which would have to cover other soft costs of construction including land assembly. … read more via hyperlink above …