The greedy little nation that sold its soul for house prices

There was a time when Australia’s housing bubble was not much more than a curiosity. Contained mostly to Sydney it seemed it would pass with a little pop and be forgotten.

Then there was a time when the bubble went national. And suddenly the little pop was going to be a big pop so monetary and fiscal policy began to distort in support of it.

Next there was a time when moral hazard became so great that the bubble grew to engulf all policy and media, marginalising an entire generation from home ownership. Politicians routinely lied to cover the collapse in evidence based policy-making.

Finally, we come to today. When notions of managing the macro-economic levers of an economy now boil down to just one thing:

  • low interest rates to prevent the housing bubble bursting;
  • fiscal repair to prevent the bubble bursting, and
  • mass immigration to prevent the bubble bursting even though it is crushing living standards and gutting wages.

This classic slippery slope upon which one bad policy choice cannoned directly into the next is not over. Three ridiculous further steps are being mulled that will ensure the complete selling of the nation’s soul in a vain attempt to save house prices. The first is captured by Anthony Bubalo of the Lowy Institute:

Not long ago I listened to four Australians of Chinese heritage speak at the Lowy Institute about the impact on their communities of the foreign interference question. Some of the issues they raised were similar to those articulated by Muslim Australians when they talked about the effect of terrorism on their relationship with broader society.

…The government is certainly seized of this challenge. New legislation has been passed and a new position, the National Counter Foreign Interference Coordinator, has been created in the Department of Home Affairs, similar to the longer-standing position of Commonwealth Counter-Terrorism Coordinator.

But alongside these measures the government will also need to protect the bonds in our society that allow people and communities to cooperate and trust each other despite cultural, ethnic, religious, or ideological differences.

…Some lessons are obvious, such as the importance of precise language. In the same way that it is vital to distinguish between the ideas of Islamist extremists and those of the Islamic mainstream, we must avoid using the the word “Chinese” in relation to foreign interference to ensure we are not conflating the CCP with Chinese Australians.

Feel good drivel aside, the only response that will work to prevent the spread of influence within said community from corrupting the wider democracy is to cap its numbers. There is no need at all for discrimination. That is anathema in a modern multicultural nation. We should simply slash the permanent migrant intake in total. Problem solved.

Literally, the only thing standing in the way? House prices.

The second slippery slope we find ourselves on is the responses being mulled to collapsed wages. This time from Peter Hartcher:

There is a case to update and improve the current enterprise bargaining system, but it needs to done intelligently. Inflexible new industry standards could be disastrous.

The McManus ACTU also demands the scrapping of the current practice of secret worker ballots before a union can call a legal strike, and banning outright any enterprise agreements that are agreed without a union.

So Aldi supermarkets, for example, a generous employer that offers pay and conditions above and beyond the rest of the industry, resists any union involvement in its workplace negotiations. On the McManus agenda, Aldi would be obliged to deal with the Shop, Distributive and Allied Employees Union. This union commonly negotiates lower pay for workers so long as the employer eases the way for its workers to join the union.

How can the ACTU endorse these policies while at the same time being in favour of the very mass immigration program that has destroyed industrial relations standards? Easy, house prices. The CFMMMEU now runs the ACTU and it wants more building for its members. In classic building site style, everyone else can fuck off.

Finally, we have the Coalition musing on a new immigration management brain fart, migrant tag and release in the bush:

A new population policy that could produce sweeping changes to keep new migrants in regional Australia and improve the co-­ordination of infrastructure development to take account of growth trends is being developed by the Turnbull government.

The policy, slated to be released later this year, comes amid increasing backbench pressure for a firmer and more clearly articulated immigration policy, with MPs citing concerns in key Sydney and Melbourne electorates about the impact of population growth on quality of life.

Totally unmanageable without migrant proof fences and satellite tracking bracelets. But house prices need support so let’s abolish freedom too.

It’s all so bizarre. All we need to do is cut immigration and let house prices fall. There’ll be a period of adjustment while wages and the currency correct but it won’t be too bad. We’ll still be on the doorstep of Asia. The students and tourists will still come, in greater numbers than ever as we get cheaper, but they’ll also go home not pressuring living standards. Broader tradables (40% of the economy) will boom. Commodity income will surge, lifting the Budget. Our maginalised youth will have much greater opportunities to advance their global opportunities as Dutch Disease ends. Incomes will ultimately be much more sustainable.

Then we can all move on with a much healthier economy, polity, society and strategic outlook.

The alternative is to sell our freedom to China, our standards of living to a few rich developers, our politics to carpet baggers and our society to fractious class wars. Just for higher house prices.

If a more ignominious fate awaited any nation in history then I’m not aware of it.

Houses and Holes
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  1. “The alternative is to sell our freedom to China, our standards of living to a few rich developers, our politics to carpet baggers and our society to fractious class wars. Just for higher house prices.”

    Keep the masses square under the thumb and neck deep in debt to do anything about the oligarchs stepping all over them, it’s the grand plan.

    • Absolutely. Once you are up to your neck in debt, you are much more compliant. Even to the point of agreeing to eat a sh1t sandwich as long as it means you can service said debt. What a web people find themselves in.

    • All for high house prices, certainly…However do not overlook the massive household debt and the enriched bankers who enable them. Inevitably the 0.1 %.

      The massive immigration serves to expand a market maxed out on debt with the taxpayer and government borrowing on the hook. The benefits privatised and the losses socialised.

  2. Super Phoenix

    The title nicely summarises what happened in Straya. If only Strayans had the wisdom of heeding Yoda from long ago:

    But beware. Greed, fear, folly. The Moron side are they. Once you start down the Moron path, forever will it dominate your destiny.

    • Damn that Yoda! It’s because of party poopers like him that my condo in Dagobah has not increased in value since I bought it in 1985.

      • reusachtigeMEMBER

        Someone needs to put up an infographic showing the land mass and population of Tatooine vs Coruscant to show how much extra vibrancy Tatooine needs. Should be good for house prices. I’d say get in now and buy Lars Homestead before the boom really kicks in!

      • Reusa a star wars nerd? Oh my goodness there is no way you’re having fabulous relations… Maybe at Cosplay parties for geeks but not real relations parties with consenting adults.. haha.

  3. The students and tourists will still come, in greater numbers than ever as we get cheaper, but they’ll also go home not pressuring living standards.

    No they won’t. We do not have first rate tertiary education. If the student visa-employment visa-permanent residency-citizenship nexus is properly broken then expect every university with a swollen administrative function to cry poor and most private colleges to disappear

  4. There is another way to track new migrants. Peter can make them wear yellow star. Proven method..

    • Import farmers from South Africa who have spent their entire life on a farm – instead of 3rd world urban slum dwellers who have never seen a combine harvester.

      Some people actually prefer to live in a rural area! Such people can be found the um, rural, areas of South Africa.

  5. Its about time this site stood up and grew a spine, the MSM rhetoric is now close enough to smell the stale coffee breath. Double down and throw off the shackles H&H.

    • My proposal for the most effective political protest action has always been the following. Covertly organize a large number of young people with some amount of cash saved, legally acquire a farm somewhere within driving distance of a city for the going rate of around $5,000 per acre, and let everyone put up their own cheap homes with off-grid services.

      Shlomo Angel et al in “Housing Policy Matters” discuss the mechanisms by which extra-legal slums are built in developing nations; this is little understood by us in the west. They are actually not “squatting” per se; they are extra-legal developments, with extra-legally enforced “title” changing hands between the developer and the buyers of “plots”. They are organised and coordinated like a mass squatting outbreak at the outset, and “development” then proceeds with the residents already in situ. Development is actually like a series of “improvements”.

      Now that most people can afford motor scooters, these extra-legal developments are taking place outside the existing city and are more spacious and better appointed – and the urban land racket is being collapsed just like the Model T Ford started to do in the west 100 years ago.

      The UK has the most “mature” regulatory-enabled racket, which has been in place since 1947; and the authorities are completely geared up for draconian instant responses to any episode of squatting – any attempts have been met with tear-gas, riot gear, paddy wagons and swift sentencing to jail terms. The “powers that be” in Straya are not that bright and don’t understand the potential threat yet, probably because the people also don’t understand the racket’s mechanisms.

      So someone should do it, perhaps in collaboration with immigrants with experience in extra-legal development in their own countries of origin.

  6. australians dont want cheap houses. most millennials and younger, those who would actually stand to benefit from lower real estate costs, don’t even care. they actively cheer lead for mass immigration, censure anybody who suggests a link between population growth and real estate, and happily pack into inner city share accommodation (or live at home until they’re 40) as though it is the only world they have known or ever could be. none of these penks are protesting or rioting, but when it came to the rights of 2% of the population to enter into a dying legal institution (most of whom don’t even want to) they were willing to throw up the barricades and be machined gun to death in the streets until the laws were changed. what a pack of clowns.

    the rest of australia either are up to their eyeballs in debt and don’t want negative equity or are too busy backpatting themselves for their massive home value % increases over the past 20 years to ever support policies that would bring real estate costs down to earth.

    • YEsterday I saw a rubbish collection truck empty the cashed in bottles and plastic containers redeemed by the punters after being carefully sorted
      they are all collected in 1 truck, plastic and glass.

      • yes i have seen that too, i wonder how much gets actually recycled vs just sent to landfill.

      • reusachtigeMEMBER

        As long as poor hobos like stagmal are making profits, albeit minuscule, who cares where the sh1t goes, you’ve sold it on and collected your gains!

      • I can send you a photo of a nice new warehouse in western Sydney being used to store and re-sort these bottles and containers… essentially manually again… dumped on the concrete slab of the warehouse – before being crushed and packed on pallets and transported elsewhere….

    • You are so right about young people, and it is so sad. There is more chance they will end up supporting Chavismo socialist government that will “give them housing”, than that they will support reform that will allow the market to be affordable again. Watch the UK. The young people’s popular choice “PM Jeremy Corbyn” could turn the clock back to the 1940’s again. If you want to know what that was like, I recommend the book “Ordeal By Planning”, by John Jewkes. That book, and that episode in British political history, badly needs to be better-known. The political reversal back to a Conservative government in the 1950’s only came because the socialists “next step” was too much for the voters: “employment boards” which would control where and for whom everyone worked. Far too few people know what a foolish socialist experiment happened in grand old Albion at that time, it averted being an earlier Venezuela only after a few years of lesson-learning.

      • Phil, the Tories in Britain were mad/corrupt enough to privatise the railways in the 1990s. Even Margaret Thatcher refused to privatise the railways! Now, train tickets are bloody expensive.

        Corbyn wants to nationalise the railways.

        The Greens in AUS are talking about buying back the electricity grid – but who knows if they have the guts to do so. If the political parties were funded by the AEC rather than corporates, they need not give a damn about what Angus Willox wants.

    • stagmal, it is a mistake to link land prices to mass immigration – Trump certainly did not. Trump pointed to other issues caused by mass illegal-wage immigration: “the American dream is dead”, etc.

      • And this is far easier to see in the USA, as they have dozens of cities including the fastest-growing ones in the first world, with house price median multiples of between 3 and 4. Given this very clear evidence, it is easy to point the blame for housing affordability issues where it belongs: regulatory rationing of the rate at which rural land can be turned into housing supply. I wish Trump and his Housing Secretary Ben Carson would tackle this head-on, there is every justification to do so, as the macro-economic and social interests are so inextricable from this issue.

    • Exactly. There IS no way out that isn’t going to be an economic and social disaster.

      If house prices rose sharply one day and were reversed the next, almost no one suffers. If prices rise sharply for six months and then fully reverse, a few people will have difficulty – but the losses will be isolated and limited, posing no sort of systemic threat. But if real house prices stay at current levels for the next 20 years, most of the housing stock will have been purchased (and borrowed against to finance) at today’s incredibly high prices. There will have been a massive real wealth transfer to this generation of sellers (sellers, not owners). And that transfer itself simply can’t be unwound no matter what happens to house prices. If house prices were to fall now, there has still been quite a redistribution, but four years of turnover is quite different from 20 years of turnover.

      • I agree. It’s not like it’s a conspiracy by a few people or it’s the government not doing what people want or anything like that. Virtually the entire country is in on it and virtually the entire country freaks at the idea of any significant drop in house prices.

        It got to the point where just a couple of years ago, even I was beginning to wonder if it was the new normal for Australia. I had been looking at this since 2008 and so by 2016 I’d been waiting around 8 years for what I thought was the inevitable, only to see prices rising again on the East Coast. Now I realise it was probably the blow-off top but the whole thing has become so entrenched as an idea in Australia that I can’t see any easy way out.

        People need to have their expectations reset and that is not going to happen easy.

  7. Meh. Proper lending and underwriting standards will be enough to burst the bubble. I’ve seen it unfold before. In other countries, the market seizes up, and would-be sellers become inadvertent landlords. This somewhat cushions price falls. However, none of these other countries had the genius of negative gearing. It’s effect is that Aussie house prices exceed rental metrics, and therefore there will be far more people who need to sell, exacerbating the crash. Wait and see the headlines come December / January.

    • Don’t get too excited. Dave lays out the extent of government support in his piece – that should be a clue.

      The kitchen sink will be used to support the bubble and the bubble will be saved.

      And you and those like you will claim “well, we didn’t see THAT coming!”…in the fine tradition of Keen.

      Except you should have, because the pattern is well entrenched and has even been spelled out for you by me (and now Dave).

      The government is still intent on supporting the bubble. And the government is FAR from impotent.

      This guides how I choose to deploy my money. My money is where my mouth is. Where is yours, Andrew?

      • Thats the beauty of it, there is not enough money to save all the parasites. THe fighting, which used to be for Kabuki theatre to keep the populace distracted, now becomes for realz.

        Can’t wait! Am stockpiling pop corn.

      • Meh. We’re going to see a goodly correction here. And in real terms the bubble is a goner. There are now much better options to make money in other assets and your refusal to see it is the giveaway.

      • HnH Meh. We’re going to see a goodly correction here. And in real terms the bubble is a goner. there will be a correction, but I don’t think it’s “here”. Not yet. Everything that has happened so far can be reversed.

        There are now much better options to make money in other assets agree that there are much better options to make money. And, to be clear, my money is not in housing. But nor is it bet against housing (nor in cash in anticipation of needing it in the short term to buy about-to-be-good-value housing).

        and your refusal to see it is the giveaway.

        I stick to the facts, without convincing myself that reasonable-looking-forecasts are actually facts. It’s not over yet. The kitchen sink has not been thrown.

        I actually think that the signal that it is finished will be the government coming out and EXPLICITLY saying that they will take measures to support high house prices. If that happens, that means the game is lost for them.

      • P
        We are in this situation cos of a mindset by the majority
        a mindset of such magnitude normally can not be altered by education, hence religion
        it has to be bred out over time
        survival of the fittest wrti large

      • I agree Peachy. The one constant in this sorry tale has been the underestimated preparedness of governments globally to support house prices. It is also the obvious fact that those who benefit most from expansionist monetary policy also control it.

      • That government support most likely to manifest via nationalization of insolvent banks and then widespread failure to enforce against millions of broke mortgagees crying poor because they were “just trying to build a decent life for themselves”.

      • From a purely analytical point of view the market should correct – it’s a question though of what Government’s will do. Predicting this IMO is a bit of a mug’s game though which makes investing extremely hard. I actually think investing would be a lot easier if Governments weren’t in the picture; then we could actually make educated decisions about where to put our money.

        Honestly though I think Peachy is right. Allowing people with existing loans to refinance is probably what they will end up doing or something like it; it just seems too simple and seems like a way to grease the wheels of any adjustment to lending standards. Especially since due to regulatory changes investment rates in some cases have risen over 2% with tighter lending criteria and without any RBA moves at all. It’s like there’s been many rate rises for this class hence it isn’t surprising they are under pressure.

      • What exactly is the kitchen sink? It looks to me like govt has already been doing that and, to mix metaphors, has run out of bullets.

      • Mike – the shape of the kitchen sink is difficult to predict, but I’m pretty confident that I will know it when I see it.

        As it is, super isn’t finished, debt isn’t finished, immigration isn’t finished. Land release restrictions certainly aren’t finished. Foreign buyers – not finished. Etc etc.

      • The kitchen sink isn’t the stop of the bust. It’s the bailout. This goose is cooked peoples. Nothing more can be done for this that won’t cause undesirable feedback loops.

        From the comments of the people here, I’d say that the vast majority of you have never seen a bubble.

      • @kodiak – a distinction without difference, mate. Doesn’t matter if it never busted or busted and was bailed out if the outcome is that housing is still unaffordable, the prudent/young are locked out and screwed, the older/imprudent showered in largesse.

      • Sadly true, my little stone fruit, and the failure to enforce security against those who borrowed like drunken sailors will put a floor under price falls, making the real adjustment much slower than they should be. Meanwhile, time waits for no man.

      • The distinction is that housing will become affordable while Canberra extends and pretends. It’s already happening.

      • @kodiak – A explicit bailout if successful is even worse IMO in that it gets rid of any uncertainty/risk of the government NOT taking action unlike the current situation where people are assuming they may not. Moral hazard then takes hold giving confidence for people to borrow/bid even more in the future. After all we now know it is a government guaranteed investment.

        If they do any bailouts housing in real terms housing may fall; but to debt holders nominal returns matter just as much. After all most are leveraged and as long as the nominal rate is rising returns on capital employed are still positive and net wealth position (house – debt) is still rising.

      • By supporting the bubble the Govt is sowing the seeds of its demise i.e. there are costs associated with these policy decisions and the piper will have to be paid. You would have to believe that the laws of economics could be suspended indefinitely in order to believe the Govt can save this bubble.

        There is a cast-iron way to ensure that ‘nominal’ house prices never fall from current levels — but there is no way to prop up ‘real’ prices.

    • FiftiesFibroShack

      “Meh. Proper lending and underwriting standards will be enough to burst the bubble. ”

      True. Though, ironically, I doubt we’ll see improved standards until property is getting hammered. That seems to be the case in the pockets of housing doom out in the regions.

    • BS. APRA have helped accume soo much ammo on the frontline by way of tighter lending standards – and not only for IP lending – that any hint of calamity will encourage their slow release. Its a two-way street afterall. Higher prices are built-in for now..

      • Yes. MPLOL is very much easy-come, easy-go.

        We saw what Fannie Mae and Freddie Mac did in the us when credit flows were thought to be insufficient. There is a play book for all this.

  8. I recently finished reading a book on the holocaust called Mans Search for Meaning. The author talks about kapo’s who were prisoners but did the dirty work of the nazis. I kept thinking who or what type of person would do such horrible things just save their own skin. Then I look at our politicians and without a doubt they’d be kapos.

    • Look at the spanish portugese in south america 1500
      plenty of recent examples.
      indians in the USA 1860
      how about tasmania??? 1800

    • Mining BoganMEMBER

      Have a look at Cambodia. Lots of stories of people torturing and murdering their own to protect themselves and their families.

      The only constant thing in history is that it repeatedly repeats.

      • Yeah but they got to feel good doing it because they told themselves they were doing it for ‘social justice’ and ‘equality’. As long as they felt good and could tell themselves they were such ‘good people’, that’s the main thing.

    • interested party

      J, I would go so far to say that they already are…. they are using the Australian love of a punt against us through housing, while keeping us distracted via the media, and then shout down/totally ignore any requests or suggested policy changes to change the direction of this issue.
      It has to be a deliberate process. THEY know what they do, and what the results are going to be. All the bleating from any opposition is just used against us to keep us fighting each other( distraction )….meanwhile……the program continues.

    • I think closer to “Hitler’s willing executioners” which fingers the processes of modernity that segment accountability to the point of personal moral justification. “I’m just stuffing hair into pillows, i’m not responsible” the whole mortgage broker industry is built for this purpose.

  9. “Feel good drivel aside, the only response that will work to prevent the spread of influence within said community from corrupting the wider democracy is to cap its numbers. “ Huh?

  10. ErmingtonPlumbingMEMBER

    “Feel good drivel aside, the only response that will work to prevent the spread of influence within said community from corrupting the wider democracy is to cap its numbers.
    There is no need at all for discrimination. That is anathema in a modern multicultural nation. We should simply slash the permanent migrant intake in total. Problem solved.”

    It maybe “problem solved” for the metropolitan bourgeois bohemians who’s careers not affected by the temporary visa classes that allow foreigners to work here, and who lament their being locked out of purchasing trendy terrace houses in the most fashionable suburbs of Sydney and Melbourne,…but it no silver bullet or overarching solution for a smashed Working class and certain under assult sections of the middle class.
    The Temp numbers need a big pairing back also.

    As for the line,
    “There is no need at all for discrimination. That is anathema in a modern multicultural nation.”
    How is it that the current intake does place Chinese and Indian people at the top of our intake in terms of numbers?
    Is discrimination at play here?
    How dose any ethnic group get to the top of the list, over another ethnic group?
    Does the same ratio af successful to unsuccessful aplications exist for all ethnic groups?
    If the high numbers of certain ethnic groups are being driven by big business and small businesses,…is it not their “discrimination” and desire to drive down Australian wages, that has lead to the issue of this supposed 5th column infiltration by the CCP, as being a credible threat.
    Is the current system really that “Non-discriminatory”?

    Saying that only the Permanent intake is relevant, is either Virtue signaling or toadying to sections of the business community.
    There is 900,000 more tempoary residents than there was 10 years ago! and the numbers continue to increase.
    How can you state that only the Perm numbers count?

    • +1. Nailed it.

      I throw up in my mouth now every time I hear the clear frame glasses brigade use the term multicultural. It doesn’t work, no one wants it and it’s forced on us. But hey, how good is the food mahn?

      • EP some good points. The writer has said previously he believes in liberal capitalism. I believe in democratic socialism. I put that filter on when I read his work, overall in the analysis of the nature of Australian society as presented here, I find plenty to agree with.

      • In regards to it being a modern multicultural nation, I question that. Anglo Celts still dominate the top echelons of our Govt, institutions, media, academia and our corporate world. Hear a lot about gender balance in these realms, ethnic balance I hear zero about. The gender balance argument improves outcomes for Anglo Celt females predominantly.

      • A nation that is paying lip service to gender equality but also importing thousands of males from India, Africa and the Middle East is an oxymoron that takes some beating.

      • Indeed, if we wanted more women in leading roles in Australia, the best way to do it is to only allow female immigrants. Then tighten up the visas so that only Australian citizens can bring spouses into the country. Removing the third world males from the equation would probably make mass-immigration a lot more palatable anyway.

      • @Stephen – The technical term is problem glasses. When you see problem glasses on a manjaw, run like your life depends on it. Good chance she has bug-eyes type friends, possibly people who refer to themselves as male feminists too (non ironically).

        Physiognomy rarely lies – no upside to high T chicks with a 60’s feminist chip on their shoulders. Best case scenario, false rape accusation and sher ruins your life. Remember boys, don’t stick your d!ck in crazy. Trust your lying eyes for the love of god.

        PSA: Ladies, don’t fall for the covert contract nonsense these @ssholes do, and beware of weak men, they can clearly bee seen by bug eyes, and look for the whites of the eyes visible above and below the iris. Below is drug addict, above is sociopath.

      • @T – you’ve blown my world with your post, man.

        Can you please point me to more resources on physiognomy interpretations (like your example of bug eyes and whites visible above/below iris)?

      • @ Peachy – its been obvious for a while, but the word ‘bugmen’ is only becoming popular now. They were referred to as soyboi’s earlier, but it did not quite cover the exact sentiment.

        Essentially, we were trying discriminate based on biological proxy, and it turns out skin color is a lousy proxy to be racist on (as in, does skin pigmentation actually correlate with behavioral characteristics), it does not work. That is, a based American black man is likely to be quite sensible, but an albino Somali is pretty much the same as any other Somali

        Apt to ‘chimp’ out, if you want to trigger leftists – use as in, “Did you see the `insert-group-here` chimp out?” – note you can insert any group here as the aim is to trigger the leftist, hence Asian, for example, works – despite the whole chimp out should only work with black people and their descendants, because the slur used correctly is based on comparing african people to chimps, the leftist will intuit that you are dissing him/her, and react appropriately.

        The thinking is that skin color (with its meh correlation to behavior) works only because it is easy to spot, hence it is a used as a proxy for a meta of all sorts of behavior types. Things like gait, posture, line of sight etc are far more useful when collecting biological data. Amusingly enough, skull size (that oh so discredited science) is pretty close to skin color in predictive utility (iirc).

        tl,dr; – We tried to be racist on basis of skin color and failed because it does not work. Other biological data, is far more effective basis to discriminate on.

    • FiftiesFibroShack

      “How is it that the current intake does place Chinese and Indian people at the top of our intake in terms of numbers?
      Is discrimination at play here?”

      They’re the most populous countries in the world, so % of our immigration intake is going to naturally reflect that to some degree, just based on the numbers applying.

      • Rubbish, they are chosen and marketed to as priority because they are the most exploitable and that’s the norm in their countries.
        Just because they have fkd their populations doesn’t mean we have to do the same here.

      • ErmingtonPlumbingMEMBER

        Are the figures, the number of applicants per country, released?
        If they do represent 90% of all Applicants (chinese and indians),…do you believe they should represent 90% of all new Australians?
        If we end up re colonized by 2.5 billion Indian and Chinese,…that wont be very “Multicutural” it will just result in Balkanized ethnic mono cultural enclaves,…not a multi cutural diversity amoung an Australian identifying citizenry.
        Wasn’t colonialism supposed to be a bad thing when it was done to indigenous Australians?

        If it is to be based purely on number of applicants,…what happens to our Islander, South American, Arab and European comunities?
        Just let all them all “erode away” so as not to be “Non discriminatory” of a more populous couple of Culture’s?
        Doesn’t sound very “diverse” to me.

      • FiftiesFibroShack

        @EP I don’t know the figures, just pointing out the large numbers make sense given their large home populations. Toss in the current living standards in their home countries and that’s an extra push. There could be more nefarious reasons, though it doesn’t seem they would be needed to explain our intake.

        We’ve always tended to have waves of immigration of some ethnic group. It doesn’t appear to have ever been well managed.

    • that’s it EP, as already said “nailed it” ………… your point about the disproportionate sub-continentals & Chinese numbers has to be addressed in any sensible attempt to run a proper migration policy vs population ponzi ………..

    • Because the government knows this cohort’s experience and qualification will not translate to high income work. The government knows these people will take low skill and low paying jobs – all under the banner of ‘skilled migration’. We are becoming a service economy and so business wants lower paid workers to support this.

  11. Great article H n H. Ignore the static. I’ve been following politics for 40 years and you’re spot on with this.

  12. You know when someone lies and and when questioned they keep lying and it becomes a even bigger and bigger lie. Well.

  13. Jumping jack flash

    Great article.

    Mass immigration is hurting wages for sure, but only for you and me. It benefits the top tier immensely. We can easily see that because wages are still inflating, on average, driven by flawed statistics and skewed by the top end where wages are still rising, and quickly.

    It is all because of greed and debt.

    The top tier: the business owners; the business decision makers; our own politicians, are still comprised of people, and people have debt. Gargantuan mountains of it. Fantastic and unbelievable piles of debt. To owe the bank a million debt dollars is pure madness, yet people don’t think twice before signing up. All the debt needs to be repaid in full plus interest. So the ones who hold the power gouge the price of essentials and destroy the labour market so they can get extra dollars to repay their own debt and keep up with the cost of living, at the expense of everyone else.

    Extreme debt makes everyone grabby, and divides society.

    This, of course, sets up a death spiral for the economy – the result of their actions is rising living costs and stagnant wages in an environment of extreme debt servitude – which will certainly cause economic collapse. But who knows when.

  14. As much as HnH suggests that we’ll see an export led recovery if we can only get the AUD to fall, I personally can’t see it, unfortunately the craziness of the last decade has done lasting damage to our real economy, deep seated damage that can’t and wont simply reverse at the right exchange rate.
    The house price madness has completely transformed our economy and it can’t get back to where it was no matter how much wishful thinking we shove at it.
    Take the Automotive industry, it’s dead …it’s buried…they’ve disassembled the factories and sold the land for (you guessed it …housing)
    Most of high tech Australia( that is still hanging on) has no chance of ever expanding into global markets, we just don’t have the global product base nor do we have the development teams and most importantly we have practically zero skilled R&D managers. Only a fool would throw money at this and expect a return, making for an even more worrying outcome if people/gov’ts try.
    Nope, like it or not Australian Politics and Economics is all about housing and will remain so. I guarantee Aussies will double down on this insanity long before they try to find real answers through alternative (aka real) investments.

    • We can import the talent from Europe and North America. Problem is with the preponderance of third world males we have accumulated in the last decade (in terms of both seediness and violence), big Australian cities are just not pleasant places to be a young-ish expat anymore.

      It used to be unheard of to get bashed and robbed by a gang in the Melbourne CBD. Now, its commonplace. A lot of young people, particularly women, don’t feel safe going into the CBD.

      Plus look at places like Sydney – the nightlife scene has been totally destroyed by lockout laws. How can you attract a 30-something American/European technical specialist expat if there is nothing to do?

      We have a lot of crappy migrants that we need to send back.

      • The reason to not come to Australia is because it is a hostile place to the young in terms of cannibalizing the future. There’s no violence problem where I live. But I sense that there is no future, either. It’s all been slain to feed the FIRE sector. My children will doubtless end up back in the US. Nobody in their right mind with any talent or ambition would move to Melbourne if they had a chance to sample it for a year.

    • Jumping jack flash

      Export what?
      And at what price?
      Will anyone buy it?
      Where’s the means of production? The tooling? Will we import tools for production? A low dollar won’t help there…
      Will investors put their debt dollars into buying the means of production and then expect no investment return for 30 years while this low-dollar-inflated initial outlay is repaid?
      Doubt it.

      Prices are set by costs of production and our costs of production are inflated by the debt everyone has. A low dollar could mitigate this, I agree. But it will also make all imports more expensive.

      Expensive imports would be difficult to hide in the CPI… and then one thing leads to another, and before you know it we have interest rate hikes!

      But say we do decide to give it a red hot try. So how far back the production chain do we go? Do we relight the fires in the foundries and start smelting again to create the tools required for producing useful stuff again?

      Bring it on!
      We would almost need to do this.

      It could take a while…

      • Super Phoenix

        The trouble is, the Moron Side of the Force has been ruling Straya for so long that Strayans had long forgotten how to produce things.

        And not too far off from forgetting how to think.

        And how to feel.



        … have we reached the bottom yet?

      • Absolutely: as you’re saying re-start production of what, on what machines, manned by which tradesmen.
        Even if you did buy some exotic new fully Automated systems (for big bucks USD) who exactly would have the skills to keep these new machines running. It’s a pipe-dream nurtured by economists / accountants with little understanding of product manufacturing / engineering problems.
        And why would any sane investor start down this path when it’s equally likely that the AUD will be at 40c or $1:00 to the USD in a years time, with this value shift having absolutely nothing to do with the productivity of the Aussie economy. A globally focused export oriented manufacturer would have to have rocks in their head to even start down this path. I mean seriously WHY base it in Australia when their are much better countries to build the factory that would actually respect what you’re bringing and reward you accordingly.
        Nope We need to learn from our mistakes in the most painful way possible before any resurgence is possible.

  15. Sidebar – make sure you all go online and opt out of the government My Health electronic register. No way they will be able to keep your medical record safe and out of the hands of those looking to profit from it.

    • I had to phone them to opt out as the site did not work – they asked my reason for opting out and i said “i don’t trust this government to run anything IT related or to not lose/sell the information.” The person said that was the most common answer cited.

      • It’s hilarious actually because if the website does work (it did for me) one of the three radio buttons for reasons is “I do not trust it to be secure” or something along those lines. So they fully know that people don’t trust them, yet they are continuing to go ahead with it.

      • Mining BoganMEMBER

        There was a head honcho on the wireless this morn defending it and saying it hasn’t been hacked yet so nothing to worry about.

        My reply is why bother hacking when they’re handing over the information to anyone who asks. Why the hell Customs need to know about that mole on my back I’ll never know.

  16. Ok, so the penny has finally dropped for me. What Anus Bollox and his mates have done with their ‘compact’ is to tie up the CFMMMEU and ACTU with the High Rise Harry’s of Australia. They have backed immigration to the moon so that their workers can build dog boxes and their LNP mates can cream off the massive profits – tossing the crumbs of the giant’s table to union members as they do.

    The ACTU vision and social contract is so short sighted that we need to destroy our cites as this is the only means by which they can keep people employed.

    It’s completely unsustainable – doomed to a massive crash unless mass immigration is permanent. Hence the ACTU will gladly destroy Australian living standards and workers conditions for the rest of its members and completely trash any residual respect for the labour movement in the process. They have used useful idiots like the social justice warrior Dr Liz Allen to invent the meme that only racists will resist this gravy train.

    Is this Bill Shortens vision for Australia? It seems exactly the same as Malcolm Turnbull’s vision for Australia. Great work you morons. You are joined at the hip.

    Bring back the death penalty for treason.

    • Jumping jack flash

      “Is this Bill Shortens vision for Australia? It seems exactly the same as Malcolm Turnbull’s vision for Australia”

      one and the same.
      Bill is a bit further away from the hook because he’s not actually in power so he can get away with mouthing off some completely sensible and populist ideas without fear.

      But if he was in power, then Labor would be just as impotent as LNP are now.
      Never forget the vacuum that was RuddGillardRudd, and then, completely unsurprisingly, the vacuum that is AbbottTrumble.

    • Super Phoenix

      Be careful of what you wish for, Clive. It would be a little too late when you are facing a firing squad.

      It would be worth remembering;
      Inducing house price falls is *the* no. 1 treason in Straya.
      Followed by wishing for house price falls….
      Followed by talking about house price falls….
      Followed by….

  17. You must remember that the more multicultural we get the less we will think of the marginalised youth (or pensioners) as ‘ours’. I believe this is the underlying reason that the US welfare state is so much less generous than the European. We are not a multicultural society. We are not even a we. Those with means do what they can (a lot) to ringfence their families and associated communities from the impact of immigration (bank of mum and dad etc). Those without foam at the mouth in public (e.g. the racist rants on trains a couple of years ago) while their communities (and unions) are destroyed. Our politics increasingly reflects a divided people bickering among themselves while the elites entrench their positions. Lowering immigration massively now might save the nation, but it may well already be too late.

    • Great point. The White Australia Policy was enacted for exactly this reason.

      “Shortages of labour led to high wages for a prosperous skilled working class, whose unions demanded and got an eight-hour day and other benefits unheard of in Europe.” “Australia gained a reputation as “the working man’s paradise.”

      “Colonial Secretary Joseph Chamberlain explained in 1897:
      We quite sympathise with the determination…of these colonies…that there should not be an influx of people alien in civilisation, alien in religion, alien in customs, whose influx, moreover, would seriously interfere with the legitimate rights of the existing labouring population”