Weekend reading: 12-13 August 2017

Global Macro / Markets / Investing:

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Asia:

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Comments

      • Looks like Trump agreed to give the generals their war in return to let him run the country..

      • UrbanWastelandMEMBER

        I lump Russia in with the incompetence.
        Except you’re onto something Nik… I suspect the generals are ultimately horny for a war with Russia, not North Korea. Some of them might miss their cold war younger days. NK could just be a trigger.

      • UrbanWastelandMEMBER

        So we’re finally leaving neo-liberalism behind, eh? What does that mean for our Skip?

    • The same reason every single President goes to war – its never a distraction – its about support at home.

      When Donald goes to war with Nth Korea only traitors will question him.

      Pretty simple policy.

      • Not quite. The US’s military industrial complex needs to be sustained and the only way to sustain it is to be engaged in conflict, pretty much constantly. Not only is war highly profitable, many, many jobs rely on the US’s prominent role in ‘global security’.

      • The Traveling Wilbur

        Yep. But it would be shitorangutan. Not gibbon. But don’t use either – they both have more class and better manners than he does.

        Shitcanetoad seems apropos.

  1. migtronixMEMBER

    OMFG I just had to point out to someone – don’t ask why – that cos 90 degrees out of phase is sine. What the fuck are they teaching at school, much less uni, now?

    • ErmingtonPlumbingMEMBER

      I’m sorry Mig,…but your request to “Don’t Ask” has me aching to,..well you know,…Ask.

      At 1am on a Saturday morning, Im thinking you must have been trying to pick up some good sort,…with something like,..”90 degrees phase difference between x and y inputs, blah ,blah, blah, blah,…blah, blah,..blah, blah, blah, blah”
      .
      If so,… eww,…how did that go for ya bro?

      • migtronixMEMBER

        No Ermo for whatever reason, after a random conversation progressed, I found myself trying to explain 3 phase alternating current – 120 degees out of phase, certainly not 90! Cos^2+Sine^2 = 1 as per pythagoras. Don’t tell skip about the antiquarian use of trigonometry will you?

      • @Mig I had similar discussion one time with an Electrician about why there was no need for the Neutral in a 3 phase system to carry 3 times the single phase current. The moment that he tried to defend his ignorance by proving to me that I was wrong, I knew I needed another Electrician…He started with the phrase. Now just listen…I’ll keep the math simple for you…

    • Hardly surprising in NSW of the 70K+ students sitting the HSC each year less than 9K take a Math course that would introduce Sine/Cosine as waves 90deg apart. you might expect any year 10 student to understand this just based on the idea of rotating around the unit circle but I think you would be horrified by the number of teenagers that get this wrong.
      Check out how many / few students take math seriously
      http://www.uac.edu.au/documents/atar/2015-tables/A2.pdf
      No math taken for HSC = 20k to 30K each year.
      General math = 31K students (course is basically year 9/10 math revised with some finance math and probability)
      Math (old 2 unit) = 16K …some of these guys should understand Sine / Cosine as waves
      Math Ext1 = 9K all of these students should know this stuff
      Math Ext2 = 3K (all Ext2 students do Ext1 so don’t double count) If they dont know this than they’re in serious trouble

      I used to worry about this but fortunately I learned that Australia is the Cleaver Country, oh how my heart settled when Ju-liar muttered these reassurances.

      • St JacquesMEMBER

        The destruction of Oz’s educational standards began long before Julia Gillard. While the whole blame cannot be laid at the feet of neoliberalism, there cannot be any doubt that the commodification of our education system has been and continues to be most destructive.

    • What’s the point in taking maths in this economy? Lol. Be a car salesman or a mortgage broker or something. Or if you’re a girl do a basket weaving degree then HR/Recruitment. Get much the same money without the pain.

      I get sick to death of people saying we should be smart cnts, but they never mention hey maybe we should pay nerds more? This country has a commie mindset when it comes to salary. There’s nothing wrong with education it’s parents reflecting their own experiences of the working world onto their kids.

      You can even work your way up the Coles ladder and get $100k as store manager.

      • Yep. After they’ve had a nervous breakdown after they realise they’ve been sold out to 457s, and suffered the humiliation of having to be vetted by the basket weavers. This country is pure bogan mafia country.

      • Mining BoganMEMBER

        This one time in a business establishment I had to ask for pencil and paper to show a girl that she was misled by her management and that the item I wanted was indeed cheaper than what she was pushing.

        “Wow, you’re right! Are you a policeman?”

        When you think about Scummo’s claims that Mum and Dad policemans are clever and good-looking investors then maybe that question makes sense.

      • Bingo!

        40 year old computer programmers are imported to work for $2000/month. So, what is the point of Aussies studying IT?

        The trouble is, 457 visa staff are imported to do the whole gamut of jobs from burger flipper to chartered accountant – not just IT. It is a miracle that Japan is allowed to have a shrinking population and an unemployment rate of 2.5%.

      • billygoatMEMBER

        @Owen
        I got ‘vetted by a basket weaver’ recently for sales role.
        Unbearably bubbly and unable to deviate from the script.
        Mystifying how HR & recruitment are a thing.
        spectacular waste of time & funds.
        I’m female can ‘read’ a person in a moment, could do the HR thing standing on my head – it’s all bu$$shot role playing, acting – therefore inherently dishonest.

    • I’ve programmed hundreds of games in my youth, did maths – don’t care about sin, cos, tan.

      Have to know hundreds, thousands of functions, algorithms, syntax, semantics, covering a dozen languages. Half the time I have to look up basic crap like modulo because, meh. Don’t get me started on vectors.

      A lot of programmers are like this – there is literally so much going on. Was teaching a kid the other day about long division and forgot the basics.

      Who cares ? We all study and engage in different things.

      I bet most here probably don’t know the intervals in all the modes, or even the Major and Minor scales for that matter. You probably don’t know the circle of fifths, and have DEFINITELY never heard the word epicaricacy.

      eiπ + 1 = 0

      Let me know how you get on with the simplest and most well known equation of them all.

      • migtronixMEMBER

        So you can keep the logic together long enough to deliver a working algorithm but you can’t keep a simple right angle triangle in your head? What games are you designing – text character based green screen MUDDs? Wow so special

      • Geeze mate Eulers Identity needs to be respected, the most beautiful equation in all of Math has earned the right to be presented properly

        e** (i π )+ 1 = 0

      • depending on how you think about it can be cycle of 4ths
        but the 5th scale degree starting from C = G the key of which has one additional #
        keep going 11 times and you’ll end up back at C

      • fisho – good formatting
        Yeah I thought I could incorporate Mathjax scripts but they didn’t run properly I’m certain I’ve seen it here before so I might give it another shot later.

      • Also, in the extremely unlikely case that anyone is remotely interested. to remember scale structure for major (or Ionian) you just say
        Tone Tone Semitone, Tone Tone Tone Semitone (ie 2 tones, then 3) Also the semitones occur at the 4th degree and the 7th.

        With modes it finally clicked for me when you ask (for example in D Dorian) what is the original scale of the number of Dorian scale.

        Ie in D Dorian, “what scale has D as the second degree”. The answer is C. So the scale you use to construct D Dorian are the notes of the C scale.

        D E F G A B C

        Now compare to the equivalent major

        D E F# G A B C# D

        We see notes flattened on the third degree (F versus F#) and the seventh degree (C versus C#).

        Dorian is a particularly blues mode, Jimi was a huge fan, and the difference between relative minor (Aeolian) vs Dorian is in the 6th degree. In Dorian the 6th degree is not flattened (B versus Bb) for D Dorian.

        Playing the relative minor does not work so well in blues, hence beginning lead guitarists learn a scale without the 6th (pentatonic = 5 notes = 1 b3 4 5 bIV = D F G A C.) Note you can’t tell if this is Aeolian or Dorian

        Finally the moving of the 5th degree to the Dorian 6th degree gives us what we think of as the blues sound

        In A it is the 1 and 5 chord (A and E notes) to the 1 and 6 chord notes (A and F#)

        Georgia satellites (https://www.youtube.com/watch?v=PdpAop7gp0w)
        Bring it on home (https://www.youtube.com/watch?v=pAO0ib8a0dU)
        V8 car with tattoos (https://www.youtube.com/watch?v=fouK5ErEbdM)

        I am a bit of a nerd, to be honest

      • migtronixMEMBER

        “I am a bit of a nerd, to be honest” don’t worry Harry it’s a common affliction around here – and cheers for the breakdown

      • The Traveling Wilbur

        @mig

        Yes, 4 years sure, but don’t leave us hanging mate… did you make it to second year and pass after the 4th go or not?

        *slinks away shamefully, awaiting future comeuppance*

      • So why does relative minor not work so well in blues?

        Well, very commonly you will be playing chords I IV and V of the key.

        In a blues D this means the chords you will be playing are D G and A. (not Dm, Gm and Am)

        Now, a chord is usually constructed of 3 notes from a scale. 1 3 and 5. It sounds weird to us when we play the minor pentatonic pattern when we move to G in the chord progression. The notes of G major are G B and D. If we play G minor in the solo (G Bb D) it sounds weird to our ears. Without getting too technical we are really moving a long way away from the 2 sharps in D major when we play G minor which has 2 flats.

        This is made worse by beginner guitarists who play patterns with the pentatonic, moving the patterns around to match the chords.

        One of the major steps in a developing guitarists life is being able to play solo notes to different chords, but playing the solo in the same position, which is where modal playing comes in. And why you learn all those scale patterns/shapes starting from each string!

        Now, strap yourself in for some serious discussion on modal lead playing…..

        Jokes – I know how boring this is so i won’t inflict it on you – but i fuckin love it!!!!

      • epicaricacy: noun. Used to denote insufferable smugness when used.

        “Hey Dick did you see that overweening wanker? He just said epicaricacy”

        “Lol what a poseur

      • ErmingtonPlumbingMEMBER

        “Jokes – I know how boring this is so i won’t inflict it on you – but i fuckin love it!!!!”

        I think we are all enjoying watching you waffle on about something you are passionate about, and Ive certainly learned a little today, which is good, even if Ill probably forget at all by tomorrow.

        Keep em coming, Harry!

      • @ know idea that is cracking my tiny eggshell mind. I understand about 50%

        he looks pretty suss looking at the side all the time, like the mafia are telling him what to say

      • Know IdeaMEMBER

        I suppose if I were lecturing a group of Harvard music students that I too would wish to keep a close eye on them.

      • Thanks Harry. Music theory as it applies to lead guitar is one of the world’s most interesting topics IMO.

    • Mig , you can earn over 250k a year with average maths. Don’t even need to go past year 10.
      So you can do maths , nice. 99% of jobs don’t require more than year 10 math. You only need to count how many NG properties you have! Lol

      • ErmingtonPlumbingMEMBER

        Yes, Well, I got kicked out of school half way through year 11, I was doing Advanced Math at the time. (School attendance conflicted with my surfing schedule, and a natural high intelligence was no longer enough to “wing it” through exams with high marks, with zero effort put into home study and homework,…the 40 to 50% of Assignments that I did bother to do and hand in always scored very well though!) along with my unfortunate attitude to “Putting in an Effort”,..A decade of fairly regular (daily) Cannabis abuse, starting around 16 has probably also contributed to my not reaching my “full Math Potential”.

        I can remember my year 10 English teachers report card comment, verbatim,

        “It is Very hard to assess Mr Xxxx English abilities, as he has handed in ZERO of the set tasks for the Year!
        Mt Xxxx is however a very avid reader,…though NEVER of the class Novel.”

        Needless to say, I don’t think I have ever included my High School report card to a prospective employer within a Resume.

        So you know,… having stated the above,… esp the frequent Mull usage in my younger days, It should be of no surprise that Im quite concerned about this Talk around Increasing the GST to 12.5%,…How the Fuck am I suppose to calculate the GST when its not 10% anymore!?

        I mean, right now, I just make up a price and say thats plus 10 percent and can figure it out there and then, in my head!

        But 12.5% WTF!

        Sometimes I state a Price including GST and then at invoice time, I have back calculate to the before GST price!,…Nows thats not to hard, Ive just got to divide by eleven and times by 10,…pretty easy on my mobile phone calculator, using whole numbers,…but seriously WTF is a dumbs shit plumber supposed to do when its 12.5%!!!!

        I can see Im going to have to employ some Chinese Kid as my apprentice, Just so I can calculate the GST on my Invoices!

      • @Ermo I left school when I was 16 and moved to a commune, as luck would have it the guy running the place was a retired astrophysicist, I learned more about pure math sucking on that bong than in all my subsequent years at various Universities.

      • Note for Erm re GST at 12.5%. Dont stress 1/8 is 12.5%. So if you quote $1200 before GST then GST is $150=1200/8 which your phone calculator will do. Hence your quote incl GST is $1350. And if you start with a quote including GST you divide by 9 to get the GST and multiply that by 8 to get your income. Not too different from the current system just different numbers. And still can be done with a phone calculator. Cheers.

    • Its not a right angle triangle though is it. Sine is not simply a right angle triangle, further – Cos (90) it is not Sine – its 1

      Eitherway – you are blathering on about how “inept” everyone else is, yet you are clearly inept. Totally. There is simply no doubt about it. Unless you think you are a master of everything (sorry, we all know you think that), unless you actually ARE, which you are definitively not, then your blathering about others inadequacies merely highlights your total lack of ability to critically assess – that everyone has these fundamental flaws in some area which others would scoff at – but only YOU are dim witted enough not to realise this.

      The only conclusion is that it is you proving Dunning Krugers theories that the dumber, more ignorant and less informed one is – the more absolute they are in their beliefs and assertions because they are too stupid to know otherwise.

      You epitomise this.

      .

      • migtronixMEMBER

        And it wasn’t a random conversation with a random person it was a random conversation with someone who understands math well enough to know better. Know I’m putting it down to his being as drunk as I was but it’s such a fundamental principle to electromagnetic signal processing – we were talking about synths and the topic of line noise came up – that really one should catch oneself before uttering it.

        Did i mention it was 1am and I was drunk? I wasn’t getting all uppity idiot – not like you do.

      • The only problem that matters is the squaring of the circle. And from what I can tell, most here are doing a shit job of it.

        Peace profound.

      • I never understood the attraction of quaternions for what is simply a complex ordered pair problem. Always looked like a difficult way to represent a simple problem. Maybe it’s me that needs some educating.

      • DarkMatterMEMBER

        Hamiltonian mathematics looked like it was dead and buried until the 20th century came along and found it. The great advantage of quaternions is that they eliminate the singularities associated with the Euler methods. the common term for this problem is “Gimbal Lock”. If you are doing computations for things like satellite orbits, you don’t want to have calculations where the denominator is close to zero resulting in a loss of accuracy.

        If you look at any modern Game Engine, you will find quaternion libraries. GPUs prefer quaternions for the massive number of rotational matrix calculations that are required. William Hamilton ended up being a rock star for the 21st century computer chips.

        I think Hamiltonian mathematics is also important in relativity and quantum mechanics. Interesting to note that the quaternion is expressed as a + bi + cj + dk which is a 3 dimensional vector plus a scalar, same as a coordinate in time space. Good luck trying to visualise how a quaternion works unless you can think in 4 dimensions.

  2. Asset Swap myths and legends.

    One of the biggest was that QE was ‘just’ an asset swap. The modern banking and monetary apologists loved to roll that one out to justify why having an ‘independent’ Central Bank wade out into the market to ‘support’ its banking franchisees and the private-public monetary model was nothing for anyone to worry about.

    “..The Fed owns more than a quarter of the $6.86 trillionin agency mortgage-backed securities, and its holdings are likely to dwindle to almost nothing at some point because it only bought the securities as an emergency measure to prop up U.S. housing in the last recession..”

    https://www.bloomberg.com/news/articles/2017-08-11/fed-taper-plan-brings-risk-to-mortgage-debt-unseen-in-treasuries

    Yep – you read that right. The US fed owns almost $7 Trillion in residential mortgages!

    Emergency measures? It’s freaking a decade later. There is more mould on those emergency measures than that oozing thing at the back of the vegetable crisper.

    Every one of those mortgages effectively represents money handed by a buyer to a seller of assets. In other words the ‘wealth’ of asset holders selling assets has been enhanced by the actions of the Fed an, “independent” of the democratic government, institution with effective control over public money.

    The funds used to buy those assets were created out of thin air. Now some might say that creating $7 Trillion dollars in new money and handing it to asset owners is unfair, inequitable and the sort of thing that boards of unanswerable central banks do because they work for banks and existing asset holders and not for the general public.

    Those “some people” would be exactly right.

    Now some apologists will say how important it was to “put a floor” under the US housing market but $7 Trillion is a lot more than a bit of decking. Plus how does anyone know whether the floor that was built is not full of termites and dry rot. A fake floor that is only stays solid if the Fed keeps pumping public money into the market via the reinvestment of the proceeds of repayments of earlier purchases.

    If the Fed actually ends its experiment as the housing asset price fluffer of last resort we may find out.

    So what would have been a fairer and more democratic and more accountable way of squirting $7 Trillion dollars into the US economy as bloated housing prices found their true floor?

    Simple – having the Federal Reserve finance (interest free) $7 Trillion worth of fiscal policy in the form of either government expenditure or equitable tax cuts.

    The exact composition would have been a matter for the political process but the test of success would be:

    1. The extent to which the expenditures expanded the productive capacity of the US economy.

    2. The proceeds found their way with as few jumps as possible into as many US wallets as possible.

    For example: Say $10B on improved public transport or even a fast train line somewhere – anywhere. You know like the ones poor China seems able to whip up by the dozen.

    But as you all know by now, we can’t have good things because protecting the public-private monetary model with a dominant role for asset price fluffing private banks is just toooooooo important.

    Cue the bank apologist flying monkeys to swoop in about now.

      • oo7…. you rang – ????

        Btw splaining stuff to be – accurate – is not to be confused with being an apologist… its not like the Judaic – Christian thingy….

        All the assets were jumbo, it was just an expansion of the balance sheet, you know liquidity stuff, that said, it was a market based management policy and not a social policy. If you have dramas with it I find it hard to reconcile with your market based approach to everything. Now if your going to bang on about social policy’s look no further than congress, they have the power over disbursements, so, trying to lay responsibility on the fed for social policy is wonky at best.

        Yet were right back to the Vietnam war… where inflation was a real issue and the anti taxers and ideological loon pond backed by wealthy vested interests made it impossible to tax the inflation accordingly to strata. This is made worse as this was the starting point for c-corps to start looting their own company’s or others [LBO’s- Munger]. So the only option was Volckerization, that sorted it, but, the knock on effects wrt labour inputs became permanent as it assisted with the looting. Which imo was facilitated by Wall st, it became a fundamental market perspective – short term-ism for rent extraction for the c-suite as all performance based remuneration was tied to equity.

        On the other hand if you have dramas with the Fed you might want to reconcile the increasing staffing by main stream economists, that were groomed in privately funded academia and the dominate narrative they held. I mean you can’t just hand wave away Greenspan or the Chicago boys influence, these were the “wise men” remember.

        disheveled…. Look your camp handed over the keys to the market fundies and now need a scapegoat to pin the results on… wanking on about the fed or money forms is ludicrous… it was the dominate economic ideology which laid the foundations to this mess…. own it…

      • Skippy,

        “…All the assets were jumbo, it was just an expansion of the balance sheet, you know liquidity stuff, that said, it was a market based management policy and not a social policy….”

        Just a $7 Trillion dollar balance sheet expansion from buying up freshly originated mortgages. Do you know what a mortgage is. Do you understand that even today the Fed is supplying the mortgage market with super cheap mortgage money. Originators sell to Fannie and Freddie who sell to the Federal Reserve. Holding up asset prices.

        A program that makes our own AOFM efforts look like child’s play.

        Yep not a social policy, nothing political about that.

        You don’t get political economy clearer than that and all delivered by the private banker owned Federal Reserve.

        And all this coming from the great neoliberal activist Skippy.

        You make it too easy.

        So much lol.

      • I thought your beef was with banks creating “private fiat” not with the CB creating real fiat.

      • btw social policy would have been debt relief or cramdown which only Congress can do as Skippy noted. The Fed can’t write off the mortgages and they can only buy mortgages with government guarantees. The size of the balance sheet isn’t a huge deal it’s just a natural consequence of short term rates falling to zero which forced the Fed to buy long term Treasuries and MBS to lower the long end of the curve.

      • Sweeper,

        “…I thought your beef was with banks creating “private fiat” not with the CB creating real fiat…”

        Ha ha very good but even the publicly created stuff needs some quality assurance!

        Otherwise it gets a bad name.

      • oo7…

        “And all this coming from the great neoliberal activist Skippy”

        It would help if you did not use nomenclature that you obviously don’t understand nor have a functional historical perspective of….

        My links to Philip Mirowski works alone should make that abundantly clear, yet, again you pop off with some unfounded slander to engage in more of your sloppy perception management.

        What exactly is neoliberalism, and where did it come from? This volume attempts to answer these questions by exploring neoliberalism’s origins and growth as a political and economic movement.

        Although modern neoliberalism was born at the “Colloque Walter Lippmann” in 1938, it only came into its own with the founding of the Mont Pèlerin Society, a partisan “thought collective,” in Vevey, Switzerland, in 1947. Its original membership was made up of transnational economists and intellectuals, including Friedrich Hayek, Milton Friedman, George Stigler, Karl Popper, Michael Polanyi, and Luigi Einaudi. From this small beginning, their ideas spread throughout the world, fostering, among other things, the political platforms of Margaret Thatcher and Ronald Reagan and the Washington Consensus.

        The Road from Mont Pèlerin presents the key debates and conflicts that occurred among neoliberal scholars and their political and corporate allies regarding trade unions, development economics, antitrust policies, and the influence of philanthropy. The book captures the depth and complexity of the neoliberal “thought collective” while examining the numerous ways that neoliberal discourse has come to shape the global economy.

        http://www.hup.harvard.edu/catalog.php?isbn=9780674033184

        disheveled… from day one on this blog I have been very anti neoliberal whilst providing extensive links and unpacking of it and why…. your one function is to forward your camps hypothetical and largely ideological monetary theory’s w/ a side of free market.

      • Skippy,

        Whatever takes your fancy but your position on the role of private banking is indistinguishable from the neoliberal position.

        All you do is obsfucate the role of private banks, make excuses for the role and deny its significance. Anna Bligh could not be more pleased with your efforts.

        You don’t seem to grok that when you tell me yet again that the roots of our problems lie deep in the Swiss Border circa 1947 that is of no help to your attempts to ‘stick up for private banks’. It just makes your desperate excuse making appear even more bizarre.

        Privatising public money IS a core goal of neoliberalism.

        You are a vegetarian trying to argue that bacon is not meat!

        The determination by some people “on the left” to insist that the current role of private banks warrants preservation is plain wacky though possibly it arises from a misguided belief that real reform is just too unimaginable. Some seem to fear that it is a bridge too far to question the role of private banks.

        To the contrary the role of private banks is the place to start as fixing that will make the rest of the reforms much easier as the banks and their minions will find their balanced budget manias and other hokum in the dustbin. You are working to preserve the myths and fables of neoclassical economics.

        But do what you must.

        After all apart from you and Sweeper we don’t really have any other determined defenders of the banking system status quo on MB.

      • oo7…

        http://www.softpanorama.org/Skeptics/Political_skeptic/Neoliberalism/index.shtml

        https://www.emptywheel.net/2014/12/14/the-neoliberal-inhabitants-of-mont-pelerin/

        Look oo7 your personal opinions don’t carry any water, there are numerous authors and books from a multi discipline back ground which all agree with the source of neoliberalism. FFS there are statements on public record from key neoliberal agents about how they think and their ideological agenda going back 70ish years. I mean you just can’t string a bunch of vacuous words together that have absolutely zero reference points or means to evaluate their validity and then finish it off with the loose conjecture that disagreeing with your momentary prospective is pro private banking – in its currant iteration.

        Just the fact that private banks currently operate in such a socially destructive manner is a direct result of neoliberalism influences, but, its not just limited to private banks, so I have no idea where you think screwing with the monetary system, run by neoliberals at the moment, has the effect you believe it will have, when at the end of the day, the same neoliberals will be running the new monetary system. Systems have no agency oo7 its the humans operating them that do. This is made even more surreal by your missives about financial regulation by “wise men” quips, but at the same time expect “wise men” to undemocraticlly administer the monetary system.

        Need I remind that neoliberals hate democracy….. because of Hayekian paranoia complexes e.g. democracy is a gateway drug to Stalinism… but its cool to be Stalinistic in driving the neoliberal agenda….

        Disheveled…. The strangest bit is you think[?] being anti private banking makes you anti neoliberal… where as your anti democratic views on monetary administration is pro neoliberalism.

      • I would also add I have no clue where you get the idea that I forward neoclassical anything, especially as its basically AET with bad maths and physics to give it a veneer of science or empirical quality. Its via those opinions that not only banking, but c-corps and a plethora of other social ills like wealth concentration and 34T parked in tax havens, not to mention the vast majority not receiving any proceeds from parabolic increases in productivity, but are expected…. let them eat equities….

        I mean your well aware that I’m in the PK camp and associate with Wray, Black, Oz Bill, et al, are you asserting they are all neoclassicals in drag too…

        Disheveled…. Look when you can show me how your monetary system addresses the core aspects of neoliberalism then I might consider it. Till then its just distraction or worse a side show…. deliberate…

      • 007, that barely deserves a sincere response since you are just trying to get a wind up.
        Firstly you are not opposed to private banking. Like Rothbard, what you are opposed to are a small, ever shrinking sub set of some banks liabilities which in some ways can serve as means of exchange. That is all your beef is. I have demonstrated time after time that 1) there are real limits on the qty of these liabilities that can be created (which unlike your theory ties back to data) and 2) these liabilities don’t even come close to having equal status with the states money so your “private fiat” thing is a defining error – they are just another promise to pay the states money with costs and benefits to issuance. So your whole conjecture has been debunked, yet you keep trotting it out and even worse pretend that not just are you criticising one ever shrinking method of some bank financing, you are actually criticising private banking and the underlay of neoliberalism. Which is just an astonishing claim. I mean if all the commercial banks decided to swap their demand deposits for commercial paper is it really your position that banks would suddenly stop being so damaging, the rich would start paying there taxes and the neoliberal era would come to an end?
        Or to restate, if banks moved even further in the direction they have been moving under neoliberalism (purely to get around regulation) – away from demand deposit taking towards more non means of exchange funding – is it your position neoliberalism would come to an end?
        And the truth is you are perfectly fine with private banking. I’ve barely seen any complaints from you in relation to CBA, you didn’t criticise the profits at all cost behaviour at Barclays repeat, repeat, repeat. You are fine with private banking, yet you reference Chifley – amazing.

      • Before sons rugby just to finish this off…. you and mig-i think Bill Clinton is a leftie or use him as a prop to forward your ideological advocacy. Here’s the rub, Bill and Hillary Clinton are moderate republicans, that is why they went after the suburban moderate republicans in the last election, they did not even pretend to pander to the so called lefties like Obama did.

        Both of you just can’t seem to put the last 50ish years of politics into perspective [feature or bug????]. The right has moved the Overton window so far right that anything moderate is seen as lefite, hell Goldwater would probably be viewed as a leftie these days.

        Hell Hillary was a Republican before switching over to the Democrats, only because she thought she could drive her agenda better from that platform. Geeeezz one would think the whole Haiti thingy would have clear that up for once and all. I mean the only thing between the two is really the whole patriarchal aspect wrt to the old guard in the republican [neoliberal] party, their just fighting for equal rights within the neoliberal camp, you know the hard core fundie right wingers that think America has gone to the dogs because of women’s rights and democracy.

        Look both Clinton’s are pro free market, both want to privatize social security and run it through Wall St. as well as medicare and anything else they can get their mitts on, so this whole leftie thing is absurd.

        Disheveled…. so in conclusion… if your optics are that bad what does it say about everything else…. eh….

      • Skippy,

        I hardly need to add anything to that as you make my case for me.

        You don’t understand the difference between banks and non-banks. As a consequence you don’t really understand the signifance of the deregulation of the banks and the impact of that deregulation on the non-banks.

        To you they are the same thus when I focus on the core of the problem – the licensed banks – you think I don’t ‘care’ about the non-banks.

        Well I do as anyone who reads what I write knows full well.

        As for the shifting Overton Window well duh i know that but what you seem to be blind to is how your optics on the role of private banks reflects that shift. When I call you a bank apologist that is simply because 50 years ago the lines you are running were the core of bank apologies. That you think you are being ‘reasonable’ and I am the ‘radical’ is Overton Window in action.

        Fortunately, the window is shifting back and everyday we are seeing people say much the same stuff as I say. I know it horrifies you but MMT folk are giving the role of private banks much more attention as well.

        Even the RBA is starting to have a go.

        The spotlight is turning on it has the role of private banks in the middle of its beam.

        You say I don’t have a problem with the current role of private banks? Now that is just bizarre.

        I think what you mean to say is that you seem to think i believe that banks and other private financial organisations would not need regulation if the government had a monopoly over the creation and withdrawal of public money.

        Well let me set you straight on that. Any organisations issuing IOUs or promises should be subject to sanctions for fraud. The most obvious type of fraud is issuing an IOU that you know you cannot honour per the terms of the promise.

        So yep even if the private banks were stripped of their privilege and left to intermediate 100% public money and/or issue their own purely private bank notes – corporate paper – they would be still subject to oodles of regulation because we know that fraud is to bankers as tomatoe sauce is to pasta.

        Exactly the kind of fraud our banks currently commit each and everyday. The only difference between now and 100+ years ago and a future scenario is that the taxpayer now goes guarantor.

        And we can see all around us how well that is working.

      • oo7….

        I well aware of the MMT perspective wrt private banks and size is an issue [again a problem economic libertarians created via anti trust views and economic efficiency due to size rubbish] as well, as the manner in which markets are tightly coupled. That still does nothing to change the fundamental perspective your monetary theory [hypothetical] is based on or how its administered. Nor does it change your unsupported and strange mingling of social and monetary policy’s to make a case about your feeling about the fed [the thing from Jekyll Island level pop novel].

        I side with sweeper in his above comment and the ethical dilemma it creates in your case, it does not add up and by large is highly suspect.

        Disheveled…. This is compounded by your old antics and cast of supporting characters from Brown, Musgrave, et al….

        PS. Yet the MMT camp is quite opposed to your views, publicly, and reasons clearly stated.

      • MMT and Debunking AMI: Positive Money: LIVE with L Randall Wray

        https://www.youtube.com/watch?v=-7StbLkjBQk

        Old Joe’s head is imploding in the comments section, still banging on about debt free [positive] money, which then makes it a commodity and not money…. errrr… not to mention the propensity for the PM camp to still peddle the fractional reserve meme to the unwashed.

        I would also add that MMT has not put the idea of shutting down private banks out of the qestion, its just concept that you can fully nationalize money creation, something that I think you should clearly understand from a historical account.

        Anywho….

        http://neweconomicperspectives.org/2013/12/essays-monetary-theory-policy-nature-money.html

      • Skippy,

        “…I would also add that MMT has not put the idea of shutting down private banks out of the qestion..”

        Well it seems we are making some progress but once MMT starts talking about that it can hardly claim to be an operational description. Perhaps it just a sign that more people are getting to the point I got to with MMT and are seeing it as an excellent explanation why reform is necessary.

        At the very least the current monetary arrangements do not assist general understanding by the public and at worst they are an exercise in concealment and obsfucation.

        I had a look at the video and some of the comments and it seemed to be just another bunch of hair splitting about money as debt and central bank accounting with a side serve about the status of the Fed. A bunch of people arguing at cross purposes about a bunch of distinctions that don’t matter very much compared to the bigger issue of what is the fairest and most equitable and production way of operating a public money system.

        The advantage of talking about the Australian context is that at least our institutional structure is relatively straight forward.

        I don’t think anyone thinks there is any real obstacle to a better method of crediting the ES Account of Treasury than the current approach of almost exclusive reliance on interest bearing government bond issues.

      • Couple of things….

        There is a huge difference in the perspective about money, whence it came and its historical underpinnings [no cheery picking for ideological reasons]. The term debt is not an ideological or religious and especially a political plaything and the accounting realities between various issuers and users is not a monolith.

        Additionally the Treasury has the legal power, always has, as well, as Congress, so the ev’bal fixation on the Fed as an institution is inaccurate. But hay to some its a nice place to off load responsibility on or a factor of misinformation with intent, and probably a mixed bag with some induced ignorance created by the take over of academia by the dominate you know who.

        Disheveled… worst bit is its the unwashed that get ground up or trampled upon by this rubbish….

  3. George Brandis, federal attorney-general, is expected to make an “imminent” announcement about boosting powers and resources of Austrac, the government agency that combats money laundering, according to a department spokesman.

    But it is expected to fall short of extending existing laws to cover real estate agents

    From the AFR

    • he is not going to shut down the greatest money laundering operation in human history. If anything he may enhance it.. can’t wait to see what those powers woul be.

  4. Attended a Property Council event in Sydney yesterday. NSW treasurer says the state is big fan of short-term accomodation, and that they are working on a build-to-rent program.

    It’s the signal that bailout for builders and developers as they arm to be running out of suckers to buy apartments but can’t let prices fall.

    • That will cause oversupply and stil bring prices down. But building white elephants like that gas plant in Victoria may do the trick to keep people in their jobs without causing price pressures on RE.

    • Pretty funny…. eh….

      Everyone should own a property [happiness], then the same mob financializes it, and then has an epic case of buyers remorse as it turns into a speculative frenzy.

      disheveled…. RE as bitcoins….. manic mig-i….

  5. St JacquesMEMBER

    What’s with all this talk and headlines in the MSM about “low wage growth” ? Wages are stagnating in any meaningful sense, and this has been worsening over the last five years and is now threatening outright shrinkage in real terms as it looks to drop below the (rigged) official CPI. And many wage earners have big debts to pay. The great Ponzi machine that is the Australian “economy” is spluttering.

      • St JacquesMEMBER

        No worries mate, the cartel….er….business lobby reckons all we need is a flick from the wand of the Confidence Fairy and all will be good.

    • I must admit I struggle to understand why you see a disconnect
      IF the value of Labour falls to near zero levels due to global wage arbitrage or Robotics or immigration than wages must eventually follow. This change in the price of labour does not directly impact Assets especially assets like land / houses. It simply means that we will enter a period where Assets like RE are never in effect traded for man-hours of Labour.
      The logical extension of this is that assets like RE will in effect become their own currency, RE will be traded in kind but never sold for the accumulated “savings” of labour. In effect we will enter a new era of Feudalism. With this in mind is it any wonder that our Tax system is evolving to shelter RE owners from Tax, while increasingly the nations Tax burden falls on the shoulders of average workers whose labour has no intrinsic global value.
      IMHO Any fair tax system for the era we’re entering would focus on taxing assets particularly non -productive assets like land and houses but good luck getting that Tax law passed.
      I sometimes wonder how our compliant Aussie “she’ll-be-right” population will take to this new Feudalism.

      • St JacquesMEMBER

        JAPAN, USA, SPAIN, IRELAND ICELAND, FINLAND….. AUSTRALIA 1870s-80s, etc, etc, etc huindreds of times the world over. Banks create debt from thin air and people speculate creating bubbles. Nothing new or robotic about that at all.

        edit: I do agree we’re falling into an age of feudalism, but people are waking up and they will destroy it. The defeat of that psychopath – Hillary – marks the beginning of the end for this emerging financial feudalism. At the moment it is confused, but rapidly gaining force and coherence. The days of free capital flows, independent central banks, etc are numbered.

      • St Jacques…

        Debt has always been created from – thin air – since time immortal, before money and banks….

      • Its a social condition that pre dates banks, it about people exchanging stuff and how time and space is reconciled.

      • migtronixMEMBER

        “and how time and space is reconciled.”
        How do you reconcile breadth and width? You can’t reconcile orthogonal vectors

      • St JacquesMEMBER

        Just on that last point of yours CB, as more and more people struggle, while the landed get ever richer while evading all but the most minimal of taxes, first will come the sarcasm, then sarcasm will turn into anger and the façade of she’ll be right will drop off. As AnonNL pointed out, Australians are actually very anxious people behind their masks of laidbackness.. I can’t tell you when, but look at the angry US election. Over a certain threshold the mood can turn sour very fast. What seemed solid suddenly melts into air.

      • DarkMatterMEMBER

        ->fisho That is a good summary of the decreasing value of human labour. A type of feudalism where land is the only real thing of value. If you take it further, it really is a rabbit hole.

        If “robots” make stuff for free, why would a landowner grow excess food for the masses? They have nothing to trade for it.

        To enforce land rights you need police or an army. What do you pay them with? Food? That would mean an armed self contained feudal style kingdom.

        If the robot factories can make anything, why not make robot soldiers? The “landed” would be under threat from the “unlanded”.

        Maybe every person would be granted a small parcel of land by birth right? Perhaps that would work.

        The problem we seem to have is that the inevitable erosion of traditional work value is bringing us to the point where nothing makes sense. The future seems to be an unthinkable amalgam of economic contradictions and absurdities. Obviously something will happen, but what does come out of this may not be explainable in terms of conventional economic thinking.

      • ErmingtonPlumbingMEMBER

        “I sometimes wonder how our compliant Aussie “she’ll-be-right” population will take to this new Feudalism.”

        With a bit of luck,…I hope it’ll get Aussies of their Arses and engaged in the political Process,..while they still have the ability to fight back, through democracy.

        https://youtu.be/TYxGkFxb7f4

        7.08 mins to 9.07mins in,

        Is Corporatism a kind of Feudalism or Communism ?

      • @DM Re NeoFeudalism
        Yeah it’s an inescapable conclusion that assets like land are diverging from other asset classes and becoming their own currency.
        Look at the Political interference in the process of creating “Residential Land”, these land use laws exist for no reason other than to prevent an empowered individual from using their own labour (zero trade-able value) to provision/create their own “Residential Land”. Traditionally Man-Hours of Labour is/was the variable which unified the two value systems. In functioning jurisdictions sans political restrictions we can still transform cow pastures into Residential Estates for the total spend of something like 2000 man hours of labour. What’s 2000man-hours in Robot hours….hmmm better forbid self provisioning and create this Urban Planning monster. Policing these Urban Planning policies essentially prevents the counterfeiting of this new elite currency. If that’s not neoFeudalism than frankly I don’t know what to call it.
        If can’t possibly purchase a house with the savings from your labour (or through your labour directly) than the worker must effectively enslave themselves to acquire assets or accept their role as second class serfs.
        The rest of your rabbit hole analogy suggests that medieval serfs had any rights, truth is only the lords had rights and these included to right to F#ck the serfs so it’s wrong to imagine this society will value itself using metrics like GDP (which will clearly collapse) rather they will value themselves in simple terms like acres of land and numbers of Investment Properties….The last Sydney BBQ I attended proved to me that we’re well on our way to achieving this class divide coupled with a suitable asset based wealth system.

      • “Yeah it’s an inescapable conclusion that assets like land are diverging from other asset classes and becoming their own currency”.

        There are some similarities between money and land. The biggest one imo is that land, like money, seems to almost always trade above it’s intrinsic value. Which either says that it goes through long-term bubble cycles or alternatively that there is a liquidity return or premium to holding land which increases it’s unobserved return (like money) and increases it’s demand v other assets . Keynes wrote about excessive demand for land possibly having the same effect as excessive demand for money due to a stubbornly high unobserved return in c 17 of his General Theory although I think he thought it was less an issue than pre-capitalism:

        “It may be that in certain historic environments the possession of land has been characterised by a high liquidity-premium in the minds of owners of wealth; and since land resembles money in that its elasticities of production and substitution may be very low,[8] it is conceivable that there have been occasions in history in which the desire to hold land has played the same role in keeping up the rate of interest at too high a level which money has played in recent times. It is difficult to trace this influence quantitatively owing to the absence of a forward price for land in terms of itself which is strictly comparable with the rate of interest on a money debt. We have, however, something which has, at times, been closely analogous, in the shape of high rates of interest on mortgages.[9] The high rates of interest from mortgages on land, often exceeding the probable net yield from cultivating the land, have been a familiar feature of many agricultural economies. Usury laws have been directed primarily against encumbrances of this character. And rightly so. For in earlier social organisations where long-term bonds in the modern sense were non-existent, the competition of a high interest-rate on mortgages may well have had the same effect in retarding the growth of wealth from current investment in newly produced capital-assets, as high interest rates on long-term debts have had in more recent times.
        That the world after several millennia of steady individual saving, is so poor as it is in accumulated capital-assets, is to be explained, in my opinion, neither by the improvident propensities of mankind, nor even by the destruction of war, but by the high liquidity-premiums formerly attaching to the ownership of land and now attaching to money. I differ in this from the older view as expressed by Marshall with an unusual dogmatic force in his Principles of Economics, p. 581: — “

    • ‘stale pop-culture references to aggrieved white martial glory’ – that is in the 4th line.

      ‘The humiliating tyranny of a limited and largely market-based national health insurance plan, in short, finally faced defeat in the name of courageous liberty—liberty as imagined by a movie that the anti-immigrant Right calls “THE white nationalist masterwork.” – end of paragraph 1.

      ‘But Atlas Shrugged’s strident glorification of selfishness also guided Alan Greenspan as he ran the Federal Reserve into the financial crisis and Ross Ulbricht as he built the “dark web” into an international opioid market. Ideas have consequences.’ – end of n-1 para before summary.

      Whatever this article is about, public choice has nothing to do with it. Relevant: http://archive.is/MZlmv

      Why relevant? ‘His favorite way to consume news is to forgo primary sources in favor of skimming two paragraph dissections written by others who also forwent the primary sources. Unmotivated, unthreatening and unrelevant, publicly not drawing from the system according to his need but privately disavowing a lack of contribution back to the system according to his ability.’

      Does that sound familiar at all.

      • T, if you read the whole article you will find a very good discussion of Public Choice Theory.

      • Sorry bud – the writing makes my eyes bleed. We live in a world going to hell due to the retarded religious beliefs of the left. The article is basically a left mouth piece attacking ‘others-who-disagree’ with ad hom’s, and accusing them of doing the usual things that the left does. This is left wing fan fiction, and as far as I can tell projection.

        I mean, she is pulling in randoms who sell drugs on the dark web, Alan Greenspan for the 2008 crisis (or something), the Koch brothers. The right wing version of this involves trans dimensional aliens and the illuminati – this is the level of stupid you want me to take seriously?

  6. Looks like things are slowing down in Sydney Southwest as the 2 properties that are selling within 50m from where I live are still organising Open House inspections 3 Saturdays in a row and the RE agent now has a For Sale sticker on his BMW. lol
    Both properties have been for sale for about 5 weeks now and I can hardly see anyone turning up to inspect them.

    • There’s an agency I’ve seen that has an old kombi van all done up and restored. It has a coffee machine in the back so people can get a coffee and look sophisticated and cosmopolitan as they walk around inspecting the house planning on dropping a couple of mil to live in a bogan suburb an hour from the city.

      • TailorTrashMEMBER

        Yes I’ve seen them too ….an hour of posing ….leads to a life of debt burdened misery ………….

  7. Musical theme for the weekend: the bomb
    Yo La Tengo – Nuclear War
    https://youtu.be/iv4hNAZqLGE

    Frankie Goes to Hollywood – Two Tribes
    https://youtu.be/SXWVpcypf0w

    OMD – Enola Gay
    https://youtu.be/-vMBp6iUJzk

    Young Marble Giants – Final Day
    https://youtu.be/rB8ymBZwgOE

    The Smiths – Ask
    https://youtu.be/2xBy65SxjL0

    Babybird – Fireflies (for the fan clip that uses footage of bombs)
    https://youtu.be/MDDHFq-cV0g

    Penderecki – Threnody for the Victims of Hiroshima
    https://youtu.be/Dp3BlFZWJNA

    Twin Peaks – Season 3, Part 8
    https://tinyurl.com/y8dbayos

    • Not only Europe, it is also happening all over South East Asia.

      We have just returned back to Bangkok after a week in Pattaya, at the height of the low season. On a Tuesday evening we were waiting at Pattaya pier for our local taxi driver to pick us up and return us to Jomtien Beach. There was a constant never ending line of Tourist buses disgorging 1,000’s of Chinese tourists into the Walking Street precinct. Our hotel, one of the biggest complexes in Thailand was comprised of at least 70% Chinese. The only English speaking person we met was an Armenian guy at the local 7/11…lol, never met an Aussie. This is in stark contrast to what we have experienced in the past….since 1989. They say it is good for the economy, but the overbuilding has gone bat shit crazy. Back in Bangers, I do not recognize the skyline any more. New high rise towers everywhere, no doubt clad in flammable material, The Thai’s have forgotten about the painful lessons of 1997, they now rank very high on the debt to GDP rankings as do many of the SE Asian countries.. Everybody has a brand new SUV bought on credit, the place is booming accordingly….but for how long ?

      The ‘chinese effect’ is alive and kicking, driven by record levels of debt and speculation. This quarterly newsletter from Crescat Capital is a must read and explains in detail the China effect driven by debt that is going to end with a spectacular blow-off top…

      https://www.crescat.net/crescat-capital-quarterly-investor-letter-q2-2017/

  8. bolstroodMEMBER

    Alhough Climate Change deniers have overtaken the LNP, they have not yet infiltrated the Australian Armed Services
    https://www.theguardian.com/environment/2017/aug/11/australia-potentially-disastrous-consequences-of-climate-change-inquiry-told
    Our military are concerned with the security affects of mass displaced people movements around the planet swamping their ability to control them.
    And they have cause to worry
    https://www.forbes.com/sites/trevornace/2017/08/03/global-ocean-circulation-appears-to-be-collapsing-due-to-a-warming-planet/amp/

  9. An essay on the make up of the jerk.
    https://aeon.co/essays/so-you-re-surrounded-by-idiots-guess-who-the-real-jerk-is

    “I submit that the unifying core, the essence of jerkitude in the moral sense, is this: the jerk culpably fails to appreciate the perspectives of others around him, treating them as tools to be manipulated or idiots to be dealt with rather than as moral and epistemic peers. This failure has both an intellectual dimension and an emotional dimension, and it has these two dimensions on both sides of the relationship. The jerk himself is both intellectually and emotionally defective, and what he defectively fails to appreciate is both the intellectual and emotional perspectives of the people around him. He can’t appreciate how he might be wrong and others right about some matter of fact; and what other people want or value doesn’t register as of interest to him, except derivatively upon his own interests. The bumpkin ignorance captured in the earlier use of ‘jerk’ has changed into a type of moral ignorance.

    Some related traits are already well-known in psychology and philosophy – the ‘dark triad’ of Machiavellianism, narcissism, and psychopathy, and James’s conception of the asshole, already mentioned. But my conception of the jerk differs from all of these. The asshole, James says, is someone who allows himself to enjoy special advantages out of an entrenched sense of entitlement. That is one important dimension of jerkitude, but not the whole story. The callous psychopath, though cousin to the jerk, has an impulsivity and love of risk-taking that need be no part of the jerk’s character. Neither does the jerk have to be as thoroughly self-involved as the narcissist or as self-consciously cynical as the Machiavellian, though narcissism and Machiavellianism are common enough jerkish attributes. My conception of the ‘jerk’ also has a conceptual unity that is, I think, both theoretically appealing in the abstract and fruitful in helping explain some of the peculiar features of this type of animal, as we will see.”

  10. [email protected]MEMBER

    Fergie has the shits up….

    http://www.smh.com.au/business/banking-and-finance/regulators-put-the-boot-into-banks-trust-deficit-growing-20170811-gxuagg.html

    • ‘He said it would take Livingstone another week to call Medcraft to apologise.
      “I thought we had a good relationship and I’ve worked very hard to build that relationship,” he said.’

      Sums up everything that is wrong. But no one cares because SSM is back in the news – courtesy of the LNP.

      • [email protected]MEMBER

        medcraft is deluded or else….mates..

      • Jake GittesMEMBER

        Once this blog had a feisty conversations over economics and politics over the weekend and now it’s all about onansim.

      • I put it to you, Mr Gittes, that the majority of the conversations about politics and economics on this site are onanism.

        As a total aside, I have always wanted to make a euro fetish porn film called Onan the Bavarian.

      • Jake GittesMEMBER

        The Bavarian accent is marked by diphthongs and that resembles the type of cry emitted in orgasm, so that is a movie project with some reality to it.

      • Bowie – Let’s Wank, ABBA – Wanking Queen (resist the temptation to visualise), Flashwank, The Safety Wank, I Wanna Wank with Somebody…

      • DarkMatterMEMBER

        Did you know that Joy division logo is actually a Fairlight Waveform display? That was on the old green monochrome display and the cpu was a pair of 6809 micros running out of phase. The guy who was programming that display was at the desk behind me back when they were at Rushcutters Bay. That was when we actually used to make stuff. The support calls were quite unusual. Stevie Wonder, Peter Gabriel – all the 80s icons. Back then they had their own wavesolder machine in the basement and made everything on site. It was such a privilege to work for Fairlight, they had a very talented european classical guitarist who screwed together their keyboard assemblies (with velocity sensing). He just wanted to be a part of Fairlight. It was a very interesting place.

      • @dm thanks. fascinating and depressing.

        where are our modern accdacca/inxs/even kylie?

        our saints/nick cave?

        even t emmanuel?

        bah humbug everything is shit.

      • Music turned to shit around the same time as the bubble and mass immigration started in the late 90s. No coincidence imo.

      • Darkmatter,

        I must say I’m very jealous of your time with the Fairlight.
        Is it true that Iva Davies would come around and fiddle with it pre Icehouse, when it was in the testing stage?

        My JD fandom is going to come out here. I apologise in advance for being such a pedant.
        The image on the cover of ‘Unknown Pleasures’ has an astronomical background. Here is Peter Saville, the graphic designer responsible for it, talking about it and displaying where he grabbed it from.
        https://youtu.be/reEQye0EOAw

        The producer of ‘Unknown Pleasures’, Martin Hannett, really wanted a Fairlight but Tony Wilson wouldn’t buy him one.

        “Hannett also heard the future in the new sampler, the Fairlight: early adopters included Peter Gabriel and producer Trevor Horn. But demands that Factory buy him the sampler fell on deaf ears. “We said, ‘What? Sorry, we’re spending the money on a nightclub,” recalled Tony Wilson – namely, the Hacienda. “Trevor Horn gets the Fairlight and does Frankie Goes To Hollywood, and the rest is history. If we hadn’t been so mean and stupid, Martin would have invented the next stage in music.””
        https://thevinylfactory.com/features/introduction-martin-hannett-10-records/

        Gavin,
        I haven’t been able to listen to ‘Closer’ in full for years. It used to be one of my favorite albums, but once I had read the bio of Curtis written by his widow, ‘Touching from a Distance’, the characters and backgrounds that informed each track became real. Sephulchral is the best word I’ve heard used to describe that album.

      • jeez i was only making a play on words

        I’m sorry for besmirching the immortal memory of ic

      • Haroldus,

        Best JD joke I have ever heard was made by Gibby from Butthole Surfers.
        He was guest hosting rage back in 2001 and said “Here’s a band that’s well hung. Here’s Joy Division with ‘Love Will Tear Us Apart.” It even made his band-mates cringe.

      • DarkMatterMEMBER

        I can’t remember Iva Davies, but at the time it may not have registered who he was. It was a different time and there was a lot more optimism around with innovation. Nobody much cared about real estate. I do recall the day someone brought in an early version of the Roland Guitar Synth and did a lunchtime concert. There was the VoiceTracker that turned voice into midi and I think was used by Lori Anderson. That was designed by an engineer who had lost most of his fingers in an Everest climb. Probably the biggest 80’s Fairlight culture shock was the CVI (Computer Video Instrument) which is responsible for all that weird 80’s video effects. It was actually a simple device that digitised the RGB pixels in a frame and had a big RAM lookup table that translated each colour to a new one. That LU RAM was controlled by a micro with all sorts of fades and wipes etc. That changed the way we saw videos in the 80’s.

    • ErmingtonPlumbingMEMBER

      How about Changing the word sit, with Wank, in ACDCs “Can I sit next to you girl”

      Bon does insist a little to stridently and aggressively, that he be allowed to sit next to, said girl,.. a bit creepy and rapey by today’s standards really

      https://youtu.be/S4AA_ieB7Z8

      Does he say,…”I’ll lick your ear” or,… Rear?

    • Ah we can wank if we want to, we can leave your friends behind
      Cause your friends don’t wank and if they don’t wank
      Well they’re no friends of mine

  11. I dont know if this has been posted here

    http://www.afr.com/real-estate/property-is-austracs-moneylaundering-blindspot-20170811-gxu269

    Malcolm Gunning, president of the Real Estate Institute of Australia, also supports tougher financial scrutiny of buyers but wants it done in conjunction with the Australian Taxation Office and Austrac when property deals are settled.

    Proposals to check at the point of sale, such as an auction, would be impractical and difficult to police, he said.

    Under existing law, real estate agents and other businesses involved in buying and selling real estate do not need to identify where the money comes from or who is paying.

    The law does not require real estate agents, lawyers, accountants or any other person involved in the deal to identify the beneficial owner of the deal. A beneficial owner enjoys the benefits of ownership though title is in another name, such as a company.

    The Black Economy Taskforce is warning identity fraud is “systemically undermining” the nation’s financial system and is expected to call for a new approach in its pending final report.

    The scale of the problem has been highlighted by an alleged perpetrator of the CBA scam using 11 false identities to transfer tens-of-millions of dollars out of Australia, according to court documents.

    Security specialists claim large amounts of money can be transferred into fraudulent bank accounts created with stolen identities purchased on the ‘DarkWeb’, which is like an eBay for criminals.

    “Lenders have abrogated their responsibility to know and identify their client,” said Geoff Stockton, chief executive of PRM Group, a risk management specialist. “People are taking advantage of being able to open an account, borrow and transfer cash from behind a computer.”

    Real estate agents report unprecedented numbers of overseas’ buyers of residential and commercial property in Melbourne and Sydney paying cash, typically transferring payments from a local account.

    Asians were last year the biggest investors in Australia, spending about $47 billion largely on residential and commercial property, according to the Foreign Investment Review Board.

    An estimated 70 per cent of Chinese buyers pay in cash, according to Transparency International, an international non-government organisation targeting corruption.

    70% paying in straight cash ! That’s incredible to me

    Of course its not actual cash, it all comes through an Australian bank at some point but CBA can’t be expected to keep track of it all

    • TailorTrashMEMBER

      …..and while the Primeminister is talking about sending young Australians to fight Korean War 2 …..what the fuck is he doing about this ?
      ……..maybe if we send our youth to be killed there will be even more homes for those cashed up Chinese buyers to Hoover up ………..bye bye Straya!

      • proofreadersMEMBER

        Remember the old homily – if you want to create a distraction from problems on the home front, go to war overseas. Probably works every time and especially with superficial Straya?

    • sanity from an unexpected source: http://www.globaltimes.cn/content/1058905.shtml

      Quote: According to a revised regulation on Xinjiang’s family planning policy, regional ethnic minorities could no longer enjoy as lenient a family planning policy. It states that starting July 28, all urban couples in the region have been allowed to have two children, while rural couples can have three. […] The change reflects the country’s respect for ethnic equality.This move should be expanded to other places, especially in minority areas, depending on local conditions,” said Huang Wenzheng, an expert on demographics. ”

      People thinking about demographics, and not buying multi kulti koolaid! unpossible!

      lol… they probably think we are approaching peak baizuo…

    • TailorTrashMEMBER

      The once mighty BBC is now too busy being super PC and making sure it’s stories are sufficiently diverse and it’s photos “inclusive” and representative of
      the new multicultural “vibrant” Britain to post a story like that .

    • DarkMatterMEMBER

      The sale of ARM (the chip that powers all the phones and tablets and SBCs) really was crazy. Probably one of the most valuable bits of tech they had. It would be like the US selling Intel to China.

    • migtronixMEMBER

      “Meanwhile, rival governments — across Europe, in Japan, China, India, America, Canada and Australia — are investing money and energy in order to nurture their precious high-tech companies and protect their national assets from foreign predators.”

      🤣🤣🤣🤣

  12. Haroldus,

    Here’s something to keep you busy.
    Who are all the cameos in this video clip?
    https://youtu.be/j3fLn4FYWH0

    Try not to peek at the comments below the clip.

    Here are the ones I think I can make out, in no particular order.
    Bjork
    John Peel
    Bernard Sumner (New Order, Joy Division, Electronic)
    Andy Fletcher (Depeche Mode)
    Rick Smith or Kyle Hyde (Underworld)
    Billy Bragg
    Jeff Lynne (ELO, Traveling Wilburys)
    Steve Martin (it’s a maybe?)
    Howard Devoto (Buzzcocks, Magazine)

    • also that was a very annoying song

      I hate it when the bass does that little move down 3 steps then works its way back up

      everyone was doing it for a while

      • It’s their throw away pop song making fun about throw away pop songs.
        Their first three albums make up one the great runs in music.
        Pink Flag, Chairs Missing and 154.
        If you are into virtuosity I’d give them a miss.
        If you are interested in (pop) music as nothing more than forms and shapes of sounds, they are great.
        The singer was an art school student whose teacher was friends with Eno.
        He’d be given a lift home by the teacher and would hear his teacher and Eno discussing the possibilities of art and music.
        Suddenly, anything could be a song.
        Punk was happening at the time so he thought “Why not?”.
        He also wanted to do rock without the roll.

    • Jake GittesMEMBER

      That will send a chill down Reusa’s spine: he is always saying, using a 19th century racial descriptor, that Chinese buyers are to be celebrated.

    • I’ve noticed they’ve been saying people are ‘heading north’ or elsewhere now. Had a story on the news today, showed a bunch of Indian immigrants from Sydney heading down to Melbourne to buy blocks on the outskirts for 200-300k.

    • Syd and Mel purely rely on Chinese hot cash now and to some extent to Indian ( I think Indians turned up since modhi went after their cash). Any areas that these people don’t see as attractive are already struggling. I see it here in state southwest – 2 houses not even 50m from my place just did their third open house Saturday thingy and I doubt they had 10 visitors between them. Even the re agent of one of them is selling his BMW – so commissions must be thin of late.
      10 visits over three weeks I meant to say.

      • I don’t tend to think of Indians and wealthy like the Chinese but I guess if you’re trying to stash corrupt money after the Modhi crackdown that makes sense.

        It’s weird because Brighton in Melbourne had almost all properties pass in yet outer suburbs that I would think far less desirable still get $1M + price tags.

    • “The pullback, they said, would be driven by China’s latest crackdown on capital outflows and corporate leverage, which they argued would lead to an 84% drop in overseas property investment by Chinese corporations during 2017, and another 18% in 2018.”
      Let’s see if that happens as it will be particularly bad news for Oz. It will coincide with slowdown in residential building activity while AFR and others think such slowdown will be offset by starting commercial building.. But then again, article probably refers to clean money and does not take in consideration dirty money.
      I am still wandering how long before we see a trade war with China because of this..

      • Neither. When one is confronted with a difficult financial challenge they should always ask themselves “What would Reusa do?”. Therefore, haroldus should invest in Australian property and he’ll have accumulated wealth far greater than any amount of gold in no time at all. How to start down this road to guaranteed riches? I hope mummy and daddy haven’t gone on too many river cruises this year. Or, perhaps you can take all that money they’ve given to you to hold onto so that they qualify for the pension and get a little something 50km from the CBD that had no amenities or services that’ll be worth a zillion in three years time. The only thing that is holding you back is yourself, and the political-economic environment that you live in.
        Best of luck.

  13. [email protected]MEMBER

    cop that ya annelids.

    http://www.smh.com.au/federal-politics/political-news/twiggy-snaps-branding-greens-the-party-for-paedophiles-20170811-gxucee.html

      • [email protected]MEMBER

        golden rule springs to mind…
        …white mans burden too

  14. The all-embracing security state we all are supposed to be so scared of is mostly reactive. It can’t protect our extraordinary privilege.

    https://www.rt.com/uk/399419-uk-carrier-drone-landing/

    GPS looking more and more like a back number…….military going to rely on Google Maps ?

    https://www.newscientist.com/article/2143499-ships-fooled-in-gps-spoofing-attack-suggest-russian-cyberweapon/

    US oligarchs soon to feel the same winds of change as the Russian ones ?……they are all in breach of existing anti-trust laws if anyone wants to prosecute them.

    http://www.unz.com/ishamir/bring-me-the-head-of-jeff-bezos/

  15. twiggy brings a gun to a knife fight… http://www.smh.com.au/federal-politics/political-news/twiggy-snaps-branding-greens-the-party-for-paedophiles-20170811-gxucee.html

    is it bad that i get a shaden-boner anytime these moral totalitarians get kicked in the ovaries? No idea who is right of course, but happy to see the Greens mocked, and chances are Twiggy is in the right here.

    Greens senator Rachel Siewert, ‘None of us has a monopoly on the truth and grown ups should be able to respectfully disagree about how best to tackle difficult situations’ – how do you like them apples. This bi*&ch is at the forefront of a movement whose rationale is ‘we have a monopoly on truth! now do what we want’. schmuck.

    • I’m inclined to just let people drink and smoke if things are that bad for them. We load up boomers on tax payer funded drugs. Their blood streams are half chemical. Pretty much androids.

    • adelaide_economistMEMBER

      The only person going nuts is the author of that article. Seriously. Totalitarian Australia? Yep, I expect to see a focus on metadata retention, changes to laws allowing military to act by Federal declaration, ability to detain people indefinitely but what do we see in the second sentence:

      “They are doubling taxes on all foreigners who own property, which is a violation of international law, and then they made it a crime for a foreign to even buy a house undisclosed.”

      Um, missing the point slightly.

      • St JacquesMEMBER

        You beat me too it, I mean confusing this article is such a confused grab bag of half digested ideas; the Oz government hates foreigners?Please, how many the thousands, if not tens of thousands of illegal purchases of Australian homes have been prosecuted by the lettuce leaf waving FIRB? C’mon! And the confusion of the hard left with Nazism? Here’s a list of the big corporations that benefited and played a key part in the Nazi regime: http://www.businesspundit.com/10-global-businesses-that-worked-with-the-nazis/ . In fact the fascist regimes came to power on the back of support of big money as a way to crush unions and the left, particularly Marxist inspired political movements. The real problem, as discussed per yesterday with fisho, formerly known as Black Fella and China Bob, is the emergence of a right wing neo-feudal society and its refusal to tax land and other rentier assets like intellectual property rights, etc, thus the crack-down on workers income, including the cash economy. But unlike China Bob, I already see the reaction against this neo-medieval society rapidly emerging, if in a confused form, like the rise of Trump and Brexit. And it will be destroyed, if needs be, with violence.

  16. migtronixMEMBER

    “The brokerage industry has fought long and hard against the DOL fiduciary rule, but has it really been bad for business?

    An article in the Wall Street Journal concludes that so far the Obama-era rule has been “a gift” for Wall Street. That’s because it is prompting firms to move more clients into fee-based accounts, which have long been more lucrative. The article notes that in earnings calls, executives are reporting a positive impact from this shift.”

    http://www.barrons.com/articles/how-the-fiduciary-rule-has-been-good-for-wall-street-1502479894

    • migtronixMEMBER

      “This week, Berejiklian said she was proud of the way her government had treated the city’s most vulnerable. She was speaking after the decision to enact the Martin Place move-on powers.”

      Bank lobbyist in training

      • Given how retarded everyone is you’d do the same. You simply can’t fix this level of retardedness without the hugest propaganda and psychoanalysis campaign in history.

  17. The Traveling Wilbur

    BTC/USD
    4,061.0
    +405.4 +11.09%

    And that’s during a weekend dudes and dudettes… (yes, open Sat and Sun). Alta vista USD reserve currency status. Caveat: until quantum arrives. (cause some dummies will still buy fiat for a while when it does)

    “Let it be, let it be”.

  18. ErmingtonPlumbingMEMBER

    “Bill Shorten the ‘most dangerous left wing leader in generations’, says Malcolm Turnbull”

    WTF!,…he headed a right wing Union and heads the Tory light, right wing faction of the party!
    He’s a Right-winger!,…just as tight as Turnbull!

    Now maybe if we give,” Albo a Go”.

    • The Traveling Wilbur

      Ah… Burntall’s right you know. First leader Labor’s had in a while that might actually get elected. : ))

      They’re not dangerous when they’re in opposition…

  19. bolstroodMEMBER

    At this point we have Haroldus leading the Weekend comments with 35 posts
    Running second and closing fast is Mig with 27 posts.
    Footsore a creditable 3rd with18
    242 coments to date

      • Exactly. I’ve taken Brenton’s advice and toughened up. I’ve mostly ignored the more idiotic comments directed my way and the more obsessive stalkers. My position on CBA far closer to legal reality than the lynch mob element here.

        Someone needs to sit back and undertake a cool evaluation of comments and how new contributors are welcomed (as in, not). Macrobusiness articles are edgy, challenging and some I agree with, others no, and some are outside of sphere of interest/knowledge. It must pain the owner(s) of Macrobusiness that it has attracted an angry lonely men’s shed audience intent on keeping others out and bitching more than any private schooler I’ve ever known.

        There are some temperate intelligent contributors and that’s great. Honestly, a weekend sees nearly 300 comments and most are shit. Sorry.

      • You calling people who disagree with you or who want to wind you up on the internet ‘stalkers’ is just so typical of a lot of modern day women. You use the word in order to flatter yourself and belittle men at the same time.

        Anyway MB isn’t here to appeal to the likes of yourself. You have The Australian, and mammamia.

      • I’d say Simone has a point. Look through the posts over the last weekend and it went from banter between Mig and Simone to others joining in with Simone copping snide remarks from left and right. It got out of hand and that’s not right. Simone’ point is also that this behaviour is not consistent with MB clear goal of attracting a professional readership. And on that score she is quite right. Can we keep it professional and respectful please?

      • migtronixMEMBER

        BS Simone doesn’t have an opinion on CBA other than “let it run its course” and “50k violations are less than 1% of transactions so meh”.

        I try to ignore all the airhead crap about Italian flats….but then I try to keep it professional (whatever that means)

      • ErmingtonPlumbingMEMBER

        ” ‘stalkers’ is just so typical of a lot of modern day women. You use the word in order to flatter yourself and belittle men at the same time.”

        Mmm,…yes Agreed.

        But I think in the Case of our “Simone”,…well I think we are dealing with a Middle aged Man, masquerading as a hip 20s something Sheila,…that’s Cool,… we all like to pretend we are a princess, and feel Special,.. sometimes.

        Every time I read one of “her” posts,..I’m thinking of this Guy,

        https://youtu.be/OKnGFuthtFM

  20. Lots of talk about money, assets, RE, et al, but, not whom created the enviroment which encouraged and enabled it to all occur… did it work out as envisioned or according to plan or blindly destroy as it lurched from one failure to another… seemingly oblivious to all the information to the contrary…

    Disheveled…. always amazed how – stuff – has this super natural power over humans….

      • Yet in your book crypto is both a store and a bright shining light to guide humanity from the darkness, all humans have to do is worship it. Not that anything that goes up in price quickly could be called a store of anything, not historically supported.

        Promises is just a fact of the human condition, been that way since before your camp even got a bright idea, blink of an eye stuff. I guess some environments might encourage otherwise, that then begs the question of why would one want that in the first place. Especially if shown to be contra to the norm or worse socially corrosive.

        disheveled… at this junction the results are not encouraging, but, its seem super natural powers of stuff keeps the faithful on the path [dependency].

    • Ahh skip always rhymes and riddles. You must love The Riddler in Batman?

      To quote Dave Grohl don’t bite us get to the chrous. Why don’t you tell us what you’re getting at? Or who you’re pointing the finger at? Otherwise I’ll assume it’s Zionist Jews into usury. 😀

      • Relevant Stakeholder

        @Gavin, he either picks on Hayek, a non-Jewish Austrian, or Bernays, a Jewish ad man. He also blames Christians (usury ban) for the financial power of Jews.

        As I believe skip is an American I would bet on Euro royalty. Outside chance of the Catholics.

        Hopefully this is enough bait to get a clear answer 🙂

      • Don’t understand whats so cryptic about people finding stuff having magic powers considering history and all, even if its not a religious totem. Stuff having some sort of agency thingy, physical [observer bias] or mentally perceived [bias conformation].

        What I do find curious is the replies and what that indicates about these peoples mind sets. Firstly claiming to be confused about a well trod bit of human histrionics and then quires about Judaic – Christian stuff.

        Disheveled…. I have pointed out more than once in the past that all major religions roots are in PIE culture, tho I still don’t see any reference to suggest what some here imply.

      • I will say RS yours was the most guttural.

        “@Gavin, he either picks on Hayek, a non-Jewish Austrian, or Bernays, a Jewish ad man. He also blames Christians (usury ban) for the financial power of Jews. ”

        I don’t pick on Hayek, I show how he went from being an honest academic to being a funded ideological warrior right about the time his theory’s were shown to be false. Don’t know what Jewish or Austrian has to do with those observations.

        Bernays was much the same albeit more of a popular ring master who enable supply side economics and the currant consumerist belief in the magic powers that things could imbue onto their owners. There is a reason billions are spent on advertising, now with the advent of the IOT its almost non stop.

        As far as Christians banning usury I think you need to examine that a bit more, yet slavery and a plethora of other ills were accepted. I would also note that separation of church and state makes that perspective moot, risk premiums with overheads included are not usury in this religious opinion. I would mention tho that the unleashing of egregious interest rates was a result of the economic libertarians arguments and supported by a vast majority of the Christian public servants in Congress and the Senate. Go figure.

        Disheveled…. Lulz my Grandfather was Jewish [German] tho cosmopolitan and married to a Lutheran [German] and on the other side were Mid West Southern Baptists [the quite type]… so before I was even in high school I had attended pass over [private affair in the desert with some midget rabbi – epic story] and Baptized.

      • Relevant Stakeholder

        So you’re like a mild socdem Debord, no need to be so cryptic…that describes half the site.

      • ErmingtonPlumbingMEMBER

        “Lulz my Grandfather was Jewish [German] tho cosmopolitan and married to a Lutheran [German] and on the other side were Mid West Southern Baptists [the quite type]”

        Wow,… Christmas days must have been a hoot!, Skip.
        Did the rest of the family like to point out to Poppy Lulz,…at Christmas lunch,…that Jews killed Jesus?

        I hope all was forgiven,… for that,… and the War that killed all those good Christian boys.

        PS,…Love ya stuff Brother.
        😘

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