Links 16 April 2018

Global Macro / Markets / Investing:








  1. Couchsurfing and living in cars: 11,000 tertiary students are homeless
    Australian children going hungry, report finds, with one in five kids missing meals
    Someone needs to go around these soup kitchens handing out PHON how-to-vote cards pointing out how globalization and mass immigration is pushing up bills and housing costs and exporting jobs overseas.
    That’ll soon divert some federal pork from sporting stadiums 😉

    • rj2k000, it is one way globalisation because China and India put huge import taxes on cars while the EU only has a 10% import tax on cars. Also, you would not be allowed to buy real estate in Delhi/Beijing nor edit a newspaper there – while people from those corrupt 3rd world nations are allowed to buy any house here and work in any job here.

      Aussie kids going hungry is disgraceful – especially after Bob Hawke said “no Aussie child will be in poverty by 1990”. The Greens must immediately announce plans to make bus travel free for kids and to have free food at school.

      free fruit and vegetables to children at schools have been implemented in the UK and USA

      • The locals are sacrifices on the altar of expediency for the globalists and ideology for the SJW.

  2. Good article on wage theft:

    the current system is set up to be slow and inefficient, because of two significant changes made by the Howard government.

    The first was the abolition of the system of state industrial courts.

    “They were quick and easy and didn’t cost anything, and expert. You could take a case to them and you didn’t have to be a lawyer. They could make an order then and there. Done and dusted.”

    Now, instead of specialist courts, she says, under the “fair work” regime, “it takes forever and it’s expensive and you have to engage lawyers – you’ve got to take an action in the federal court to get your money … and face a judge who might not really know what an award is”.

    The second change is about union access. It used to be easy for unions to inspect wage records. “There were about 5000 union officials around the country and we could go into a workplace and check pay records to ensure people were correctly paid. The unions did that. I used to do that all the time.”

    But the Howard government put severe constraints on that right of employee representatives to check the books to make sure their people were being properly paid.

    “So now, instead of 5000 people checking, you’ve got a couple of hundred,” McManus says.

    Thank you Greens! How about having a different policy to that prick?

  3. Surfing Update Compressed air or Hot air: Making Waves in Yeppoon:
    Is central Queensland a graveyard for entrepreneurs??. Say the Yeppoon region.
    You for sure have heard how we couldn’t build a canoe here, and the Queensland coast line has plenty of ship wrecks and real estate disasters. The massive Japanese Iwasaki resort at Yeppoon is still closed and rotting away, waiting for a cyclone to blow it over as per that Daydream island resort.
    (the Japanese have finally sold out of the gold cost > at massive loss. Whocouldaknowed)
    So I was having a coupla refreshing beers in the Criterion hotel in Rocky, after waiting a looong time on the highway for multiple road works being undertaken from last year’s floods, (the stop & go are now fully robotic) and I asked the bar manager Ryan, how that much hyped Surf Lake toilet plunger surfing thingy is going. He directed my enquiry to a couple of local bar flys, Paddy Plumber and Mick Concreter who were drying – cooling off as well.
    They told me about $9 mill has been spent to date with not much to show for it apart from funny shaped hole in the ground and huge items of (toilet plunger like) rusting equipment lying as a crocodile on the banks of this man made future crocodile slide, or yabby farm.
    They recon the project looks to be at least 2 years away from making waves, >> if ever.
    They say it is to be powered by compressed air, but these guys recon the whole project is just hot air and engineering bulldust. Apparently the surf lake is being built instead of a go kart track, cos the site was too wet.??
    They said there was plenty about it on the surf lakes website, and when I looked it up , the place was supposed to be going NOW, April. The site said they were going to work night shift to have it finished! Finished for what?, Cos its not (allowed to) open to the public.
    To be open to the public, it has to be run like Dreamworld?? (ah, well, better than Dreamworld)
    I drove past, but you cant see much from the road, looked like an ideal place for a crocodile farm, it was plenty wet.
    So they have no worries with water, and plenty mosquitoes and sandflies. Essential crocodile tukka.
    This surf park is the first prototype of the failed attempt to start a surf pool in Brisbane a coupla years ago, when crowd funding raised virtually zero funds. (cos it looked to me and obviously others, as though the team behind it were buying themselves a job with plenty of funding for consultants and project management, all risk carried by the punters.) (anyone wanna buy a monorail?)
    When I asked at the Yeppoon Surf Club, no one knew anything about it?, so I needed a coupla schooners there to consider that. Information is expensive. The ABC has been reporting on the imminent opening of surf parks ,,,for the last 4 years,
    But apart from profitability seems they still haven’t solved the major technical hitch of 10 waves per hour.
    Now we are lucky here on MB, cos it looks like Boomer Engineer’s not too distant relation from Fire wire surfboards may have a contact with another of the Fire wire team who is part of the guiding committee for the project, (consultant) so maybe Boomer has some inside oil. But the locals say its a failure. Who wants to go surfing in a puddle??. 10 waves an hour, and for the girls, what will the muddy water do to my hair??
    My call is surfers won’t pay the $20 to $50 per hour to catch 10 waves in water of any flavour, cos any money in the Rocky-Yeppoon region is from the coal mines and Adani have outlined and Glencore are acting on it, to fully automate coal mining??? On the drive up I saw some of the road work upgrade equipment is automated and AI guided, its impressive to watch in action. Next time you are on a brand new highway, for sure it was built with satellite assisted guidance to the earthmoving equipment.
    But my call is that region is headed for a huge collapse. Long before the surf park is operational.
    Does anyone have any idea how long it takes to repay just say $9 million at $30 per hour, 10 hours a day.
    And they say the final cost is in the region of $18 million.
    Maybe they could build a coal fired power station there in Rocky- Gracemere, 4 x 600mW that would help out the solar in the overcast &rainy weather. WW

    Gold Cost update next week: As the tide recedes???

  4. How about that article on a royal commission required into Victorian police: Some years ago, when I was driving as fast as I could out of Victoria, as Jesus said, when you leave some joint like that be sure to wipe your feet. So as a foot wiping exercise and to have a couple of beers, I stopped in Jerilderie. Now Jerilderie is full of Ned Kelly memorabilia, everywhere, so I asked at the pub what about Ned Kelly. The response was, Ned robbed 2 banks only, but the banks have been robbing all us punters every day in every way. A retrial was held for Ned, and he was found not guilty of the murders of the policemen, but the corruption of the police and the deceit of the banks was up held
    Ned was a horse thief, but If you leave a few sheep around my place, watch what happens, we just cant help ourselves.
    So 3 cheers for Ned and a royal commission into the banks.(and jail those bastards)

  5. that article re: World’s Longest Trial of Negative Rates Shows Lots of Positives is interesting.
    Things to come here maybe, longer term?

    • Another unthinking shallow analysis of what is happening in an economy. Denmark has been running a truly large Current account surplus. So they have some room to move in this area. Note however that surplus shrinking rapidly as the Negative rates start to bite. Note also the increase in household value is in increased value of houses and securities – hoocoodanode that these might increase in value? It’s likely that a continuation of the negative rate policy will result in Denmark running a CAD for the first time since when? At that stage the Debt (net) of the nation starts growing one form and another and starts to use up the great financial and productive state that was bequeathed to the current population by their forbears.
      So are negative rates a great policy for an economy already running a chronic and severe CAD???? Bwahahaaaaa!

      • maybe, but if every country heads this way?
        ….I only have 20 yrs left to live anyway

    • 8 mill
      Same here but I do have 3 grandchildren – so far.
      the aim of Negative and zero rates is to have more and more consumption at faster and faster rates (mathematical necessity in the current model). i.e. to use up our planet as fast as possible and, in the end, to leave nothing behind but a barren wasteland. Not something I want to leave anyone let alone my own kids.

  6. New Zealand update …

    As Government signals big light rail spend, public transport concerns grow in US … Michael Daly … Stuff / Fairfax New Zealand

    As the Government signals it wants to spend billions on light rail in Auckland and billions less on major roading projects in the decade ahead, worries about the future of public transport are growing in the US.

    Those concerns were summed up by a story in The Washington Post last month, headlined Falling transit ridership poses an ’emergency’ for cities, experts fear.

    The article was based on a report from New York-based public transport advocacy group TransitCenter, using data from the US Department of Transportation’s National Transit Database.

    “Researchers concluded factors such as lower fuel costs, increased teleworking, higher car ownership and the rise of alternatives such as Uber and Lyft are pulling people off trains and buses at record levels,” the article said. … read more via hyperlink above …
    Sydney light rail contractor Acciona suing NSW Government; further delays to construction likely – ABC News (Australian Broadcasting Corporation)

    The firm building Sydney’s light rail is taking the NSW Government to court, claiming it is owed more than $1 billion extra, prompting Labor to call the project a “total embarrassment” for Premier Gladys Berejiklian …

    … But the Opposition said the 24-kilometre line from the CBD to the eastern suburbs could now become the world’s most costly light rail project.

    “It started at $1.6 billion, now it’s up to $3 billion perhaps,” Opposition Leader Luke Foley said.

    “If the Government had done its homework there would be no dispute.”

    Deputy NSW Labor Leader and Opposition spokesman for planning and infrastructure Michael Daley said this was the worst project he has seen in his 20 years of public life. … read more via hyperlink above …
    … Are New Zealand politicians better project managers ? … really ?

  7. Good Article
    that is exactly the future for Straya (some cant even say it proper)
    the middle class here is headed for a wipeout, primarily cos of wipeouts in liar loans, IO loans and the failure of real estate as a hedge against inflation AND, a bank for retirement.
    HUGE I tells ya!

    • Spent a bit of time on the weekend with a friend who is a handyman business. Due to a change in circumstances in regard to his main client he decided to do a bit of letter box dropping. Previously this brought in m ore business than he could handle……this time one response from a dodgy lot who don’t pay. Location Broadbeach.

    • Yes WW I did find myself thinking this is what we could very well see in Australia. I guess it all depends on how/if you deal with the cancer once everyone realises that’s the issue. Ireland took one (by no means perfect, but relatively effective) route. Japan another. There’s much to admire about Japan, but also some real examples of what must be avoided at all costs. Number one amongst those is allowing those who drove the ship onto the rocks to stay at the helm for the salvage effort. I have a real dread that this is what we’ll see in Australia. In Ireland at least there was public disgrace and ridicule of the numpties who presided. Of course, that overlooks the fact that the population at large (in Ireland, as in Australia) gladly went along for the ride while the party was swinging.