See the latest Australian dollar analysis here:

Stock markets are generally buoyant across Asia today with a few macro releases, including Australian construction data, disappointing to the downside, but having almost no effect on risk taking.
The Shanghai Composite is up nearly 1% going into the close, taking back most of the previous losses to remain above 2900 points at 2964. The Hong Kong Hang Seng Index is up about half a percent, shrugging of its own slightly disappointing GDP print to be almost at 29000 points. The current rally remains intact , with prices remaining above the high moving average and the trendline on the daily chart:

US and Eurostoxx futures are unsteady given the glitch on the CME exchange but it looks somewhat positive for the S&P 500 tonight where that particular market needs to break the psychologically important 2800 point level to really get juices flowing:

Japanese stock markets are doing well again despite the stronger Yen with the Nikkei 225 taking back its previous losses to be up 0.4% going into the close at 21546 points, still above key resistance that had been broken recently. The USDJPY pair has come back ever so slightly in the last couple of hours, but is barely hanging on after the large selloff overnight, clinging to the mid 110’s with momentum still quite negative:

The ASX200 is up slightly, making good on its previous poor showing to currently be up 0.3% to 6145 points, maintaining above the key 6100 point resistance level after previously setting up for further gains above 6200. The Australian dollar has shrugged off the poor construction data print and all the revisions by the investment banks to remain just below the 72 handle, with short sellers unable to catch a break!

The economic calendar continues tonight with a North American focus, namely Canadian CPI, then US advanced trade goods and Fed Chairman Powell’s testimony to Congress, although that might be overshadowed by Michael “The Rat” Cohen’s testimony. Plus another DOE crude oil inventory report.
- Macro Afternoon - June 28, 2022
- Macro Morning - June 28, 2022
- Macro Afternoon - June 27, 2022
Conservatives howl about lenient sentences, but when one of their own is convicted of child rape they scream injustice and wheel out little Johnny Howard.
There’s a new word in town.
PELLOPHILES.
thx
Now its Tony Abbott’s turn to come out in defence of his pedophile god-king.
The Liberals are in full-throttle self-destruct mode.
‘Devastating’: Tony Abbott called his ‘friend’ George Pell following Tuesday’s guilty verdict
https://www.theage.com.au/politics/federal/devastating-tony-abbott-called-his-friend-george-pell-following-tuesday-s-guilty-verdict-20190227-p510n5.html
Bald Archy 2005 “The Cardinal With His Abbott” by Tony Sowersby
http://www.baldarchy.com.au/wp-content/uploads/BA-2007-030.jpg
Now look here kiddies, this is where you insert your finger 😉
fk self destruct, self immolation is too good for them
https://noplaceforsheep.com/2019/02/27/what-i-want-to-say/
Ahem … conservatives mate …
Luckily lawyer, Robert Richter, described one of Pell’s offences as a “plain vanilla sexual penetration case where the child is not actively participating”. What a fn joke! Anyone know who is paying for this chunts legal costs? If it’s the Catholic Church…
“George Pell plaque to stay at Sydney’s St Mary’s Cathedral despite child sex offences conviction”
https://www.abc.net.au/news/2019-02-27/george-pell-plaque-to-stay-at-st-marys-cathedral/10852422
Vomit.
Might make it a trophy for trophy hunters.
@Ortega
>George Pell plaque to stay…
I doubt very much that it will… not now, not anymore.
I saw that reported. Didn’t see it delivered live, but, the first thing I thought of was “hmmm… guess someone doesn’t mind too much if their client goes away for a looooooooong time”.
Wilbs you could be right. That phrase has reverberated discordantly around the nation (and the world?)
W
‘plain vanilla…’
I guess he meant at least it wasn’t a kinky act abusing minor e.g. with BDSM overtones or a bloke dressed up in a weird costume, cos that’d be a whole other story.
In the mean time, next time a cop pulls you over for speeding, just explain ‘it was just a vanilla act of exceeding the speed limit by 30ks’ and you should get off*
*Note: no resemblance with real legal advice is intended or should be inferred.
pell plaque is disappearing. bank that!
Rupert Murdoch has given out his orders.
Miranda Devine, Bolt, Howard, Abbot…All on record defending a convict pedophile.
Ring master
After being convicted in a court of law, by a jury of his peers, with one boy not here to experience justice, the reactionary punditry has surely played its most depraved hand by going in to bat for Pell.
An orchestrated performance worthy of Wagner himself.
Edit: In reference to Reusa, not Ortega’s comment.
I saw Alan Jones on telly this morning, Ch 9 I think. He basically called the convicting evidence flimsey and suggested the appeal might see a better result for Pell.
Yeah couldn’t believe they would say that. No thought about the boys that were violated
Hmmmm… Legal advice from Alan Jones…
Up next on your favourite talk-back all talk all the time station… The inaugural Annual Leap Year lecture on Human Rights by guest speaker Vladimir Putin.
Well of course they are screaming and whinging but who cares, really?
I am extremely proud of Australia to be FIRST in convicting a C A R D I N A L for child sex offences. I did not think I would see the day of this happening.
Is there any other country on the face of the planet that can get that done?
Chapeu Australia, well done!
Yet again, gold, gold, gold to Straya?
There is a big difference between a conviction and a sentence which incidentally hasn’t been handed down in this case.
But such nuances are lost when the bigots come out to play.
Would you be referring to Andrew Bolt? He is, after all, a convicted raci$!t.
The Shovel is onto it: http://www.theshovel.com.au/2019/02/27/howard-i-only-give-character-references-to-respectable-paedophiles/
Brilliant new Mark Blyth: https://www.youtube.com/watch?v=tmtK2thXOUs
I could listen to Scottish accents all day. He doesn’t swear enough for a Scotsman though!
Funnily enough, when I was in Scotland, it’s was them that couldn’t understand my Aussie accent!
I listened to this while
pilferingsourcing a piece of hydraulic hose (intact, fittings both ends) from a, errr, backhoe.Got my mood up.
Making a bong eh.
You’ll thank me, once you get to use it. It’s ergonomic in how it fits in your hand, anti-slip (provided you wiped off the hydraulic fluid), and, best of all, whoever it is at the other end, enjoys it so much that the safe word doesn’t get used at all…
*Looking at Haroldus* I think you have a first customer… I’ll leave you to it…
Just as long as it was plain vanilla pilfering.
Santa Teresa residents win legal battle against NT Government over dilapidated housing
https://www.abc.net.au/news/2019-02-27/santa-teresa-community-wins-housing-class-action-against-govt/10853674
Former AFL boss Andrew Demetriou grilled in court about $145m Acquire Learning collapse
https://www.abc.net.au/news/2019-02-27/demetriou-grilled-about-145m-acquire-learning-collapse/10854062
Dodgy football and dodgy training courses.
Blazing stars of the Aus economy.
I’m thinking Mon could be the short-term short opportunity on AUD just prior to the RBA meeting on Tues and national accounts on Wed. I can’t see that enough weakness is priced in – although in theory it should be.
Bcnich any views?
Know your place slaves!
https://www.theage.com.au/business/companies/from-29m-to-just-1-how-the-gpo-s-value-fell-on-the-stroke-of-a-pen-20190227-p510j5.html
I’ll take two!
VCAT really need to be overruled , the ruling is insane.
Read the last quarter of the article. VCAT applied the law as it stood and said it should be changed, to the chagrin of the property lobby.
hey Gav, was this one you mentioned?
markets within markets…
https://www.domain.com.au/news/exceptional-one-of-a-kind-mid-century-north-warrandyte-house-beats-all-expectation-804693/?fbclid=IwAR16QuC68WqoV0vOamOn9tgEoBNuZKQ7TkfIx1k1TZ6smpzvdpyhnEZ0TgI
Yep, absolutely crazy. Just mental to pay that much for it. At $700k I thought it was cool and retro and a bit far from transport (15mins to the station) but $1.29m knock me down with a feather.. trust Domain to pick it up and run with it.
By the way if anyone needs a house sold. Let me know as soon as I show interest in it it is likely to have an offer. 😁
Global credit crunch
https://www.zerohedge.com/news/2019-02-26/bubble-warning-property-prices-dubai-continue-plummet
Brilliant.
The world’s most expensive property market is crashing
https://www.theage.com.au/business/markets/the-world-s-most-expensive-property-market-is-crashing-20190227-p510gh.html
Dubai is a classic case of the stupidity and excesses of the rich. Build a city in a sandstorm swept desert fed by water desalinated by burning sh1tloads of oil to make a playground for the uber wealthy. I mean, they built a fvcking indoor ski slope there for gods sake. Unbelievable.
Well at least their population get to enjoy the spoils of their resources. Australia exported as much gas as Qatar and we have fckall to show for it.
As for an indoor ski slope, thats Childs play. we extract gas, ship it to Japan and then ship it back to Australia.
Left wing lunatics finally grow some brain cells!
https://www.caradvice.com.au/729993/nsw-opposition-plans-to-slug-car-buyers-with-the-highest-stamp-duty-in-australia/
Right wing pricks have long complained that the LCT does not apply to yachts. So here is the LYT!
Put in a mansion tax on every mansion costing over $2 million. New York State has a mansion tax.
At a glance, this is good, progressive tax policy
You could look at it for as long as you can stare at an Escher picture for without blinking, and it would still be good, progressive tax policy.
What would be even better is a second tier gst rate for ALL ‘luxury’ items. Like yachts, cars, helicopters, pens, clothing, TVs, footballs, antiques and plumbing fixtures over a certain retail value. E.g. $40,000.
Neeed a special tax on high-flow showerheads! Don’t forget!
LOL! Haven’t heard that one for a while!
As long as it retails for over $40,000, it’s in!
(don’t want those peasants who’d have to suffer the hardship of a 30K one to have any more suffering to do)
Mostly just catches NSW up to the other states as far as the article explains it.
I guess you’re not in the market for one of those items in the foreseeable future, Jacob. If you are, you better jump in quick with your order and beat the tax. 😉
Just another whingeful attack on successful people. “Hey give me more of other people’s money so I can remain a leeching sh1t”
Just another whingeful attack on successful people.
A bit like what happened to poor old George.
Pakistan ‘shoots down two Indian jets’ in Kashmir escalation
https://www.bbc.com/news/world-asia-47383634
when’s the election?
Hey ! No fair…..this is not the war everyone has been planning for…….they were getting ready for quite a different war.
The cricket world cup schedule has them playing on 16/06/2019 at Old Trafford.
A: goes ahead with electrifying crowd atmosphere
B: abandoned due to riotous crowd behavior
C: proceeds without spectators due to security concerns
D: cancelled due to team member “attrition”.
E) BCCI gets Pakistan banned from WC
http://www.espncricinfo.com/story/_/id/26045366/bcci-mulls-asking-pakistan-world-cup-ban
What happens if someone goes out to bat with a suicide vest strapped on?
Reckon umpires would look long and hard at any lbw decision.
Leg before wicket, head caught behind.
I’m confused. It looks like India and Pakistan are racist?
Is the problem a lack of vibrancy?
Maybe we should have more students over here to see how a multicultural success story operates, and the delight of the legacy citizens.
You are confused. This is the result of British imperialism, driven by white middle aged male privilege.
I knew it was my fault somehow!
Hey, when did downed enemy pilots start being arrested instead of captured?
Sounds like stupid PC nonsense to me.
Captured is a war time reference and likely invoked Geneva convention obligations etc. also means that they should be released…
Arrested (for spying ?) means that it’s carte blanch in how they are treated, where they are prisoned and what the “judicial” process is.
Can’t they settle this dispute by playing the Kashmir Cup. Best of seven test cricket matches and the victor holds the land for the next four years. All these jets are just postering nonsense.
Ha ha ha!
Wool doing OK
https://www.abc.net.au/news/rural/2019-02-27/quick-go-the-shears-as-wollgrowers-cash-in-on-wool-market/10854126
this is not ok
https://thewest.com.au/business/agriculture/saudi-agricultural-livestock-investment-company-in-70m-deal-to-buy-john-nicolettis-wheatbelt-farms-ng-b881106065z?fbclid=IwAR2YG6-6HjKqBZkafsuLMkGXXmojajA94jPrYyeh4x9ilTI8bADP6CC7wFk
Come back Chinese all is forgiven!
Come back Daigou, come back chinee… love you long time!
Loving watching MMTers duck and weave Krugman’s interrogation.
The minute they encounter someone able to cut to the chase analytically, who isn’t drawn in by stupid word games around bank reserves, natural rates of interest, “horizontal transactions”, “net financial assets”… and who can actually write clearly, the whole edifice crumbles.
But based on my experience with MMTers I think Krugman is yet to reach peak frustration or realise just how much the over engineered façade hides an empty core.
To date the MMT camp has got it right wrt others failed predictions, more so all the wonky econometrics that even Keynes himself was against.
Then again if you could be bothered to read the in depth MMT literature you might not have to rely on neoclassical quislings like Krugman.
Read it. To put it charitably it’s wrong.
In fact since I was able to open the empty box of word games I can even answer Krugmans last 2 questions he posed to MMTers to save them the trouble (without the didactic detour into why the natural rate doesn’t exist):
1. Yes
2. Amazingly, Yes
And I saw in the other thread you raised the loanable funds thing.
Where in Krugmans entire retort did he refer to loanable funds?
He was talking about the aggregate demand schedule. That adjustments in interest rates see a movement along an aggregate demand schedule to achieve full employment. Does MMT now say the aggregate demand schedule doesn’t exist?
The only coherent explanation of MMT I’ve read says it does exist it’s just vertical. ie. employment is completely determined by fiscal policy.
“Where in Krugmans entire retort did he refer to loanable funds?”
Errrrrr – ????? – you mean the neoliberal cornerstone is not just visible in your spectrum or blind to the Philips curve thingy …. you know the tool used to gut actual Keynesian economics and bastardize it like Robinson pointed out.
Restated: Nowhere
Krugman’s argument with Kelton does in fact rest on the loanable funds theory, though he never uses those words:
The question then becomes one of tradeoffs: would the things the government could buy with a higher deficit be worth the lost private investment due to a higher interest rate? Often the answer will be yes. But there is a tradeoff.
Why does Krugman assume a tradeoff between gov’t deficit and private investment? Why does he assume that increased fiscal spending will necessarily lead to higher interest rates? Because he assumes that gov’t spending and business investment are both coming out of one pool of available funds, i.e. loanable funds.
You really think Lars is like that Sweeper, engaging in bad faith or talking out the side of ones mouth like oo7’ers do, low ethical bearing just to service some ideological faith [working for the side of light stuff]. Something I remember you – again – taking him to task for but now engage in the same type of dialectal rhetoric.
This is not to mention fiscal and monetary policies are not substitutes for one another, as one can directly effect demand while the other is a “let’s hope this works how we want it to” approach. And finally, there is no necessary connection between fiscal and monetary policy. CBs can set their rates at whatever they feel like, without regard for fiscal variables.
Which again is strange considering oo7 agenda to administrate sovereign fiat by an unresponsive non democratic board of sound money free market ideologues where sky fairies and IR are synonymous in distribution. I’m just gob smacked at both of you ….. sigh ….
Skippy,
That is clearly a cut and paste. Albeit clear, but wrong.
So I will respond.
No Krugmans argument does not rest on loanable funds.
Once again he is talking about the aggregate demand schedule and assuming it has a downward slope.
This is not contentious at all and is about the one thing economists agree on that. Look at any post war recession (and recovery) possibly excluding the GFC.
I will ask again, is MMT saying the aggregate demand schedule doesn’t exist or are you saying it is vertical. Please provide answers without silly detours into discussions about loanable funds.
Secondly in answer to Krugmans second question which you have provide an incorrect answer to and which I said the correct answer is “Amazingly, yes”:
Thoughtful MMTers will have to acknowledge that expansionary fiscal policy Is also expansionary monetary policy. This is the case because per liquidity preference theory of interest rates (MMT’s sole cause and effect theory of interest rates) the CB will need to drop the target rate in order for the increase in monetary base to be held willingly and this won’t be inflationary because the aggregate demand schedule doesn’t exist or is vertical pending MMT confirmation. Unless the CB were to pay interest on reserves to maintain a target rate – which would merely transfer the entire national debt to the banking system and would mean the same interest cost had the deficits been financed by bonds. So why would the CB do this, especially when the interest rate can be set anywhere because the AD schedule doesn’t exist (or is vertical – pending official MMT confirmation). This is your model, or the analytical reality of all the silly word games.
Secondly re. the Lars article:
I am not accusing him of anything merely disagreeing with his characterisation of interest rates in Keynesian theory.
Instead of reading regurgitated comments from MMTers on what Keynes said regarding the interest rate maybe try reading Keynes.
Keynes had the interest rate in his investment schedule and also emphasised that money demand would increase with income other things being equal and in the absence of CB would therefore lead to higher interest rates.
Read ch 17 starting with this sentence:
“IT seems, then, that the rate of interest on money plays a peculiar part in setting a limit to the level of employment, since it sets a standard to which the marginal efficiency of a capital-asset must attain if it is to be newly produced“
So you again resort to neoclassical semantics. That is the argument that mmt makes and what part about Keynes have you forgotten in describing everything as cookie cutter economics to be worshipped e.g. what might be applicable in the past or now is not aways hold true in perpetuity. I see you have staked your position with the neoclassicals and all that baggage that comes with it. Good to at least see the pro neoliberals front when pushed.
Krugman is a fake, Sweeper and every thinking person can see he is just mouthpiece for the elites and the owner of his newspaper. If you want some links to the many times he has been discredited by economists and others, let me know. There’s heaps out there. MMT is already happening, just not for us. It is just a description of reality, bro. Is part of why china’s buying us and not the other way around.
The fact that he’s talking about it shows how far we’ve come. Ten years ago, no-one outside of a small group had any idea that federal taxes cannot be respent or that the funding of federal government spending by borrowing from the financial markets is actually a political choice for a country like Australia
Best bit is the grumbling about academic status with attendant doctrinaire attitudes, Wray clearly notes that MMT has both tertiary and actual environmental experience … sigh … unlike Milton et al they actually worked in the field they are talking about and not making deductive remote philosophical musings about reality.
Hay its not like the Jacobin was not always a free market site or something, its just that some have spoiled the brew which has constipated the magic sparkle free market pony from clearing the ill wind trapped inside it.
Groan … rational agent models, share holder value memes, Powell memo, Citi memo, ALEC, Citizens United, pro Corporatist SCOTUS stocked pond, public choice theory, reduced democracy, dumbing down of citizens through education which prefers widgets for plug and play market desires, managerial capitalism, executive renumeration incentives, 34T-ish in tax havens, marginal economics, etc, etc …..
What field? Hedge funds and tax shelters? Great
You guys can call Krugman fake but at least he writes clearly and gets to the point.
Yeah like you can’t search peoples CVs and then lump everyone into some nice little strawman to pin everything on.
What part about the decades of dominate economic ideology and its results is confusing, especially when clinging to clearly refuted tropes and confusing PR as intellectual introspection.
Next thing you’ll be siding with Summers or Trumps 8 ball economic advisor.
Please … is removing the gold standard NAIRU QTM hyper inflation [zomg weimar inflation – oops trade shock] buffer such an affront, considering the sociological data wrt to austerity to service the misdeeds of the elite investor class and its propensity to push society to the hard right – nationalism, fascism, weird going pro, civil disorder, societal dysfunction, just because doctrinaires of all stripes can’t compromise*.
* – that is what Wray was doing mate…. compromising with all the doctrinaires and not being some ludicrous purist in some dead end ideological bear pit – survival of the fittest winner take all …
Bloody hell mate Keynes strove to amend so much crap in ill health whilst his contemporaries sat on gilded perches funded by their respective donor classes and you side with Krugman -?????
ATO whistleblower faces six life sentences, roughly the same as Ivan Milat
https://www.theage.com.au/business/small-business/ato-whistleblower-faces-six-life-sentences-roughly-the-same-as-ivan-milat-20190226-p510d2.html
‘Know Thy Place, Slave!’™️
House price falls are not the economy’s biggest worry
https://www.theage.com.au/business/the-economy/house-price-falls-are-not-the-economy-s-biggest-worry-20190227-p510gk.html
The Liberal party must be broke to resort to these measures.
https://www.canberratimes.com.au/politics/federal/mps-allowed-to-spend-millions-of-taxpayers-dollars-on-radio-and-tv-ads-under-new-rules-20190227-p510mb.html
The Morrison government will allow MPs to use millions of taxpayer dollars on television and radio advertising for the first time, in a move it says will enable regional and rural MPs to communicate with voters more fairly.
Special Minister of State Alex Hawke confirmed he has overturned regulations that prohibit MPs using their $137,000-a-year, taxpayer-funded office budgets for television and radio ads – which takes effect immediately, in time for the election.
When questioned, the PM described it as a vanilla act of desperation.
He also muttered under his breath: “What is this? do you think I’m made of money, like Turnbull? Why don’t you go and get a better job?”
Where the public are not participating.
Indeed, Hawke needs to try harder if he wants to graduate beyond just plain, vanilla and truly impress?
plain 6 minutes vanilla.
Gotta wonder when these stories really start coming out of the woodwork…..
I’m 57, in a reasonably paying job (apprx 160-170k pa) and have income protection insurance
I’ve got 3 IPs plus PPOR.
The IPs I built as a triplex development, build strata, finished in 2015.
IPs are currently likely to sell for around 80K each less than what they owed for the build, plus selling costs of around 12K each.
Development total cost 1.1M = 367K each
Current market likely to sell is around 285-295K average days to sell around 30-60 days (so add in another 3K of lost rent when on market)
Total selling 290 x 3 = 870 K less 3 x 12 = 36 K selling costs = 834K
Total loans on IPs = 814K (P&I)
Plus loan for the development against PPOR 325K (P&I)
135K in offset
PPOR no debt, value is around 550K which is about what I paid for it 8 years ago.
Rents are $310-$320 per week
If I sell, my capital loss will total around 260K – 270K. I have no hope of making that again before I retire.
Given the poor market I would also need to stage the sell off so I’m not in competition with myself, so likely to be over an 18 month period (and as tenant leases come to an end).
https://www.propertychat.com.au/community/threads/sell-and-take-the-hit-or-hold.37349/
This has to be playing out more often than we hear about…
But Joe Hockey said CG’s are a reward for giving up yield.
Joe Hockey also said he owed that dude at “HelloWorld” … 😛
and that house are affordable because people buy them
Imagine being in that guys shoes right about now? Ughhh good luck.
He has made an obvious mistake in having his PPOR in another country.
Well it must be, because it hasn’t changed in value in 8 years…
Ummm… I hope he’s got some really hip-high wellies… on second thought – they may not help as the crap comes from him, not from outside. 😀
A colleague told me today that he is ahead on PPOR and behind on the IP. With his children starting to leave home for study he and his wife are considering selling the PPOR and moving into the IP in order to not be caught underwater.
He compared this to a neighbour who calculates that the purchase and renos on their place have cost high 500s, would be happy to get get low 500s and are having the RE agent say they’d be lucky to get above 490. If they sell now they are 100 down before taking into account anything else.
The times they are a-changin’.
Did you reply with “swings and roundabouts™️” ? 🙂 … kinda the “learn to code” response for the australian specufestor species.
But swings and roundabouts are both fun. Cant loose.
Ah maybe that’s what the specufestors thought it meant.
Ino, I believe the correct term is “markets within markets”
He was very matter of fact about it. He knows that things are going down (and that property doesn’t always go up) and he has to make a decision about what to do next.
*laughs at Timmeh*… Location location location, no? how about “supply and demand, matey”… or “in average, if you bought about 30 years ago, you are still well ahead” 😀
When the person from work said that to you, how did you restrain yourself from bursting into laughter? I couldn’t.
What? I thought property investors were all rich, wealth building and all that. Now they’re even complaining when their banks ask them how much toothpaste they buy.
Don’t forget they’re also all good looking and well-endowed like Reusa?
Nah – don’t worry – where they’re going, the won’t need toothpaste anymore.
Meth – not even once.
If it’s the big house, toothbrushes are quite handy…
I like the bit where he says he has income protection insurance!
Does he think it guarantees him an income if he gets sacked or gets his hours cut?! 😂
Hopefully he has LMI so he gets a cash handout if he defaults on his mortgage too! 😂😂😂
+1. Income protection does not cover redundancy or retrenchment. In a year’s time this guy may find himself unemployed, homeless, and zero or negative equity.
Great. 3 families might then get a chance at reasonably priced housing.
well its not happening for him is it? he’ll fk about until negative equity eats him.. dill get out now
and the size of his debt … at his age? banks fault
but but but…. he doesn’t want to … ‘give them away™️’ 😀
You had me at “18 months™️”…
also parsing the link, I see.. ” or hold” now that’s comedy
I couldn’t help myself and clicked. Yup. It’s Perth.
and wot? a lot of the replies say Hold … no wonder the poor fella is confused.
Wait till this exact thing hits the east coast, and it shouldn’t be far away by now I would think. We are going to need a bigger fan!
HODŁ!!!1oneone
I think it will unwind quicker on the east coast because the leverage is so much higher. Loosing 10% on a 300k property is much more manageable than 10% on a 1M property.
“Wait till this exact thing hits the east coast”
I don’t know why Timmeh but my first thought was that world record line, they show in the pool at the Olympics, racing across the Nullarbor
Great image CP!
Here, have a pension years sooner than GenX.
The beauty of these stories is that most people will be hesitant to advertise their losses (and by implication their poor investment choices), so you can be sure that it is happening elsewhere. While these investors suffer in silence, that will hopefully maintain the facade that things might be going ok long enough to put off any emergency government or RBA action.
Yep, but isn’t that the way all credit driven manias end? It’s been depressing yet fascinating to watch this all unfold in front of me rather than read it in a history book. The bitcoin mania was even more horrifying to watch, it showed human greed turned manic in such a small timespan.
A) not horrifying; hilarious.
B) not over; still going (was back at 4K this week).
Otherwise, agree entirely. Would add; many valuable lessons to be learned from the experience of living through 1) BTC 2) Aussie housing. But I repeat myself.
And my Android phone (I’ve just noticed) knows how to turn Aussiehous into Aussie housing. That says soooooo much.
@TTW
My little SE has learned how to spell Reusa correctly… I don’t know whether to be scared or aroused. .
Meanwhile in Canadia:
https://www.greaterfool.ca/2019/02/26/stressed-out-2/
https://www.theguardian.com/australia-news/2019/feb/27/nsw-election-2019-sydneys-growing-pains-capture-voters-anger
Growing pains. Or too much vibrancy?
Dunno, but looking at those pollies in the pictures, I can’t escape the following (uneasy) feelings:
* they’re all dead inside – dead eyes, dead faces.
* it’s not a smile – it’s a rictus – a terrified one at that
* those with not dead eyes, are really not happy. Really… not… happy!
To be fair, we’re all dead inside smiling a terrified rictus.
@Haroldus Which one is you?
Karen McKeown
^^ I’m quite well known for being extremely alive when I’m inside.
https://www.youtube.com/watch?v=-LdYXYNtPJI
That Guardian picture of housing utopia brings back to mind that 1960s song, Little Boxes, about then middle-class suburbia in the US and the lyrics of which song started:
“Little boxes on the hillside
Little boxes made of ticky tacky
Little boxes
Little boxes
Little boxes all the same
There’s a green one and a pink one
And a blue one and a yellow one
And they’re all made out of ticky tacky
And they all look just the same …”
Except that they’re now big boxes in Straya?
Gonna need lot’s of Mothers Little Helpers!
What a drag it is getting old
Kids are different today, I hear every mother say
Mother needs something today to calm her down
And though she’s not really ill, there’s a little yellow pill
She goes running for the shelter of a mother’s little helper
And it helps her on her way, gets her through her busy day.
https://www.youtube.com/watch?v=TCD3Wa5RvjE
There is a Facebook page called Tradie mayhem. It’s appalling, They think it’s funny all the terrible standards now, put me well off buying anything less than 15 years old. So much dodgy crap Out there.
My very first thing is if there are no eaves, it’s straight off the list. Next thing is if it doesn’t have copper water pipes.
That – or learn to do it yourself. It certainly isn’t coding! 😛
I keep thinking this… Just buy a block in a semi rural area and build my own mudbrick. Can’t be worse than the crap being thrown up at the moment by qualified tradies.
Hempcrete is the new mud brick Gav. Check it out
Welcome home kids.
https://www.abc.net.au/news/2019-02-27/sharrouf-children-alive-aussie-jihadi-bride-flees-islamic-state/10844578
They have made that bed. Time to lie in it and love it.
bet you 50 bucks at least one will be back by the end of the year. 100 all the survivors are.
Cadogan helps a bloke with 4WD purchase
https://www.youtube.com/watch?v=XLKFHohoFvA
OK who spiked the MB water cooler with acid this week – ???? – reminiscent of heavens gate peeps thinking the space was getting closer.
Well, we need the acid to help us decipher your divine comment thingy. *chortle*
I know some have a hard time researching links or reconciling anything that confronts ones environmental biases timmeh, hence every time things get bit wobbly the cackling gets excited.
Remember all those years ago I showed what a joke the shareholder value meme was yet some aground here argued for it, then gold bugs, anti AGW fundies, et al ….
More acid pls Timmeh!
@Arrow2 HCN or HF? 🙂
Depends, am I drinking it or throwing it at the screen?
Everytime there is a long thread with Skippy and others having a debate I feel like I’m watching Fear and Loathing in Las Vegas all over again. I have no idea what’s going on, but I know someone else out there understands it and is probably enjoying it.
https://youtu.be/K89dChsgznw
Edwin Almeida – What Are The Numbers Really Telling Us?
https://www.youtube.com/watch?v=mKBl8PQ19TE
Australian Housing Correction – Kick in The Pants!
https://www.youtube.com/watch?v=5cBUJoWTtvE
New Zealand – 1910 RARE PICS !
https://www.youtube.com/watch?v=4W6BYaW6WU8
Then some are confused about that dialectal style thingy I talk about or bad faith – see oo7.
https://www.nakedcapitalism.com/2019/02/randy-wray-response-doug-henwoods-trolling-mmt-jacobin.html
Is it an accident that notable high priests of MMT have a background in banking and finance rather than academia?
Thank you for proving Wray’s point, ditto for finally owning your neoliberal tendencies rather than burnishing your image by taking AET to task.
Merely asked a question. You could have answered it if you felt it was simply an accident.
But you didn’t.
Do I look like a can opener …
You may be peanut butter.
https://www.pinterest.com.au/pin/221872719115452206/
Footsore,
That jar looks very old.
The contents is bound to stick to the roof of your mouth.
btw Skippy. Doug Henwood’s article is very good. You should read it.
In summary; and I feel I’ve made a few of these points:
MMT is a libertarian compatible theory, which junks the most interesting and insightful parts of PK, demonises taxation (which is the main countervailing tool to fight inequality), it’s proponents don’t write clearly and resort to mockery and insult, and when it all boils down it is just a fantasy “theory” and weak response to decades of right wing anti tax hysteria (probably the centrepiece of neoliberalism) and snake oil for the socialist left
But apart from that it is just what the Left needs.
“That fantasy looks like a weak response to decades of anti-tax mania coming from the Right, which has left many liberals looking for an easy way out. It would be sad to see the socialist left, which looks stronger than it has in decades, fall for this snake oil. It’s a phantasm, a late-imperial fever dream, not a serious economic policy”
.
To the peanut gallery above having a petite mal over MMT …. what part about mainstream economics not having a functional model of both monetary or financial systems during the neoliberal period, at least, and its effects, say the GFC, is confusing.
oo7 did you miss Roberts tirade only to have the bailouts pointed out – having nothing to do with MMT. This is the rub for yonks, ideologues demanding MMT take an ideological stance so they can engage in philosophical wankery and antiquarian morality plays. When it doesn’t they have to be made up from whole cloth because that’s how far down the gurgler the deductive process they’ve gone, nothing new, just tired old truisms and hot button talking points rehashed and re-decanted.
Sweeper … what like the academics at the Chicago school or one of Kochs little induction camps, not to mention Keynes disdain for those approaches, lest we forget he was a new deal architect and worked against the hard money sorts.
Hint … MMT does not make policy, that is the domain of dominate economics regardless of political party, and has more to do about the donor class taste for self interest. Don’t see much banging on about actual agency in that neck of the woods for some reason.
MMT doesn’t have any monetary theory. That’s why it’s so poorly labelled.
It has a fiscal theory, actually a public finance theory which says the government can finance deficits with bonds or cash, so it may as well finance them with cash at any point in the cycle at any level of employment.
At its core MMT is strictly monetary e.g. sovereign autonomous issuers don’t need to borrow to fund and half the confusion is due to the hybrid system of gold standard hangovers on a fiat system. The only thing about fiscal is getting rid of NAIRU and the gold standard hyper ventilation about inflation everywhere, you know decades of deflationary forces leading some neoclassicals to pat themselves on the back about keeping it under control. Then some around here scratch their heads about sticky – flat wages, never mind wages and productivity diverged in the 70s whilst corporatist were looting the joint.
Then again all the pearl clutching over QE – bailouts amounting to over 30T-ish et al totally blew that old fear card to smithereens, but yeah, MMT is carrying water for the third way …. sigh. What part about neoclassical economics setting the stage for all that is unfolding around us pre and post GFC is confusing to anyone.
Randy really has a way with words.
“…..It adopts all the usual troll methodology: guilt by association, taking statements out of context, and paraphrasing (wrongly) without citation….”
He really nails the Empty Pouch right there.
Keep up the good work Sweeper.
Most enjoyable.
Henwood’s article is actually very very good. In classic MMTer style they just obfuscate and play the man.
Skippy won’t address them just like he hasn’t when I’ve made similar points.
More quotes:
“Mosler was described by a colleague as “politics agnostic”; by Yves Smith of Naked Capitalism, a promoter of the school, as a “conservative.” Wray has said MMT is compatible with a libertarian, small government view of the world. Kelton, in an interview with the activist and journalist Nomiki Konst in which she describes MMT as a “brand,”
“MMTers junk a lot of the most interesting stuff about PK economics. Unlike Joan Robinson, an early contributor to the PK tradition, they rarely ask what she called “the greatest of all economic questions . . . what is growth for?”
“Taxation may not be full expropriation but it’s the next best thing in this fallen world. It is a form, however mild, of socialization — transforming private investment and consumption into public expenditures. And divorcing taxation of the rich from the provision of public services throws aside the material and agitational advantages of waging class war through fiscal politics”
“On social media, the style of argumentation is even more striking. Critiques are first met with the assertion that you just don’t understand — you haven’t read enough of the literature to comment knowledgeably. But they’re quick to resort to mockery and insult”.
… who does that sound like??
“More broadly, we have a private economy driven by exploitation, overwork, asset stripping, and ecological destruction. MMT has little or nothing on offer to fight any of this”.
MMT redresses all concerns for those that actually do the reading and don’t play the semantics mugs game. That’s what neither of you two have actually done, read the expansive literature, better to engage in what Wray points out.
Its not like I had to point out Ruml to you some time ago Sweeper, so were you just ignorantly assured in your perspective or was it a case of pretending because how that would screw with some peoples framework.
You both understand your taking the neoliberal stance.
See you problem is demanding MMT having some bolted on ideology, neoliberals use MMT just fine for MIC and Corporatist machinations, does that mean MMT is neoliberal – no – what it does mean is those in power can utilize its potential to forward their ideological agenda …. just as they could do with any other system.
Now many in the MMT camp suggest the potential should be administered by social democracy with a dualist perspective to capitalism.
Then again one might be mistaken for some around here to prefer how labour theory, as noted by Hudson, decides distribution and its attendant function to the power influence of any political or ideological agenda ….. funny that ….
I seem to remember you having words with oo7 about moralizing money as an A political approach to a political problem Sweeper ….
Sweeper,
“..Henwood’s article is actually very very good..”
I have it now and will give it a read on the train!
Very very very good ….
Yeah how much critical thinking did it take to come up with that free market bias enforcing bit of Bernays PR … hope no faith [tm] was disturbed …
Do you even know what a gas it is to watch you two occupy the – same space – after all the fracas over the years – like a flick of a switch. Reminiscent of the American monotheistic gathering some 20 odd years ago where they decided to put aside all past grievances because of the shared belief that people turning their backs on orthodox monotheistic religion was a threat not only to their influence and power to shape the social narrative …. it was a thread to humanity as they saw it all together.
Like many of us have noted, for a few decades, if not pre dominance of mainstream economics that Austrians and neoclassicals were just two groups under the same tent. You even agreed with me oo7 that that bad maths and physics had mangled and distorted your puritan ideological philosophy to incoherence. Now look at you embracing the models you once had such disdain for …. absurdly hilarious.
Then Sweeper does the same when calling out others for mangling Keynes when the man him self said he was the only non Keynesian in a room full of Keynesians. His main advancement was not to get mired down in orthodoxy and wonky models e.g. his past observations were not immutable empiric stuff without a use by date. Stuff has to be put into context wrt to the enviroment wrt time and space …. or are some arguing that the currant enviroment is a static representation of the enviroment that Keynes lived in …..
Skippy,
why are you such a devout convert to MMT?
You say it’s not a prescriptive political agenda supported by ideology it’s just a description of the monetary system (meaning public finance)
I strongly disagree.
But assuming you are right and it’s just a self evident description of reality; why can nobody give clear simple answers to simple questions – without a foray into loanable funds, the natural rate of interest, the uselessness of neoclassical economics, calling people neoliberals who don’t understand the material they’ve read etc..
https://www.jacobinmag.com/2019/02/mmt-modern-monetary-theory-doug-henwood-overton-window
Positive vs Negative Forces in the Canadian Real Estate Market
https://www.youtube.com/watch?v=KknzLXRh25o
Crashpawn on ABC The Business
Tools down
https://www.abc.net.au/news/programs/the-business/2019-02-27/tools-down/10855384
forward to any pellophiles needing guidance
https://noplaceforsheep.com/2019/02/27/what-i-want-to-say/
It does seem that Martin North has upset some unsavory people.
http://digitalfinanceanalytics.com/blog/dfa-blog-under-attack/