Links 19 August 2019

Global Macro / Markets / Investing:






    • this recession is going to be our own, home born end raised
      sure government is going to try to show it as someone else’s but ….


    Shenzhen experiment could shape China’s future growth … EDITORIAL … South China Morning Post

    Shenzhen is the designated hi-tech hub of Beijing’s Greater Bay Area development plan. Photo: Sam TsangShenzhen is the designated hi-tech hub of Beijing’s Greater Bay Area development plan.

    Shenzhen was where China’s market reforms began 40 years ago and it has since become a hi-tech powerhouse, so it is natural that Beijing should be looking to the city for inspiration to propel the nation to the next stage of development. President Xi Jinping and other top leaders have given it special status, allowing it to trial innovative ideas for growth that if successful, could be a model for others to follow. The approach comes at a testing time, with China locked in a trade war with the United States, Chinese economic growth slowing and neighbouring Hong Kong mired in a political crisis. But given a proven track record of effective policymaking, there is no better place to experiment with and perfect new schemes and strategies.

    The plan was recently announced with little fanfare after being given the go-ahead by the nation’s top body overseeing economic and administrative reforms. The boraod idea is that Shenzhen will be given space to experiment to enable it to boost its “innovation-focused development strategy”. Beijing’s policies have traditionally been top-down, but the new approach is a bottom-up initiative. … read more via hyperlink above …
    Uncertainty hangs over Foxconn’s newest China factory as trade war and economic slowdown take a toll … He Huifeng … South China Morning Post
    ‘Brutal consequences’: Ansell warns China over exodus of manufacturers … Darren Gray … Sydney Morning Herald

  2. University funding to be tied to graduate jobs as freeze lifts – SBS

    Tie it to the salaries that the Aussie graduates get. And deport the dumbest 90% of the foreign “students”.

    • Finally some action that may help our corrupted tertiary education sector. I wonder which university departments will have the highest number of unemployed graduates?

  3. The Tesla Conspiracy… or Am I a Dead Whistleblower?

    Excerpt on the author’s business, EVTV

    EVTV has largely ceased to convert ICE cars to electric drive, which was long our only reason for life. It started in 2009 and while the Tesla Roadster was much discussed, not a single one had ever been actually delivered. If you wanted an electric car in the spring of 2009, you had to build one. There were ZERO models offered by the sum total of all automotive manufacturers worldwide. We defined, aided, abetted, and enabled the tinkerer/innovator stage of the adoption curve and noted numerous times that on achieving “early adopter” phase we were out of it.

  4. NEW ZEALAND: Demand for lifestyle / life sentence blocks will fall dramatically as increasingly more affordable REAL NEED & MANAGEABLE sections / lots on urban fringes belatedly become available soon ( … and too … taking pressure off elite soils) … as we await Urban Development Minister Phil Twyfords announcement this week …

    … these looming long – awaited political changes regrettably overlooked within this particular article below …

    Lifestyle block bargains to be had, but experts warn to go in with eyes wide open … Susan Edmunds … Stuff NZ
    … Now reversing the idiotic planner lifestyle blocks and outlying towns splatter ‘flight to affordability’ … to sensible and normal urban expansion …

    The ‘New Zealand Dreewam’ is still alive … Wendell Cox … New Geography

    … extract …

    … First, there has been a large increase in “lifestyle blocks,” which, according to Statistics New Zealand allows “people to enjoy a rural setting while still working in an urban area.” Typically these properties have single-family houses on small rural, but not agriculturally commercial properties. By 2012, lifestyle blocks had consumed more than 870,000 hectares in New Zealand, (2,150,000 acres or 3,350 square miles) more than three times the 227,000 hectares (560,000 acres or 875 square miles) occupied urban areas, according to Statistics New Zealand. Thus, while land use plans have driven up the cost of the New Zealand Dream within urban areas, many households have pursued their Dream in single-family houses on far larger lots in the countryside.

    Second, in late 2017, New Zealanders elected a Labour Party led coalition government that promised to improve housing affordability. The government promised to abolish the urban growth boundaries, that so often accompany severely unaffordable housing around the world. … read more via hyperlink above …
    … Urban Development (then Housing) Minister Phil Twyford clearly explained the key issues late March …

    New Zealaned (then Housing) Urban Development Minister Phil Twyfords speech to the New Zealand Initiative Members Retreat … New Zealand Government / Beehive

    … extract …

    … In our view there are three big challenges that have to be addressed:

    1. A broken system for financing infrastructure

    2. A planning system based on urban containment

    3. The failure of governments until now, both local and central, to actively work with the private sector to enable urban growth and expansion. … read more via hyperlink above …

  5. Rare to find an investor who will admit to their losses.

    Hughes on his bar investment: “I don’t drink and I had a wife at the time … I invested $100,000 for my share and I sold that share for $1.”

    In 2017 he dropped $3.0967 million on the five-bedroom Elsternwick home in Elsternwick that was renovated by Josh Barker and Elyse Knowles on The Block. His bank later valued the property at “much less” than what he paid for it – something Hughes disputes. “For f*ck’s sake … I just think it’s good value and in a few years’ time people are going to be going, ‘Well, f*ck, didn’t he do well with it!’ I am playing the long game, all right? That is what I say to my wife, anyway,” Hughes told Stellar in February last year.

    Despite Hughes disagreeing with the bank’s assessment he did admit that it was hard finding a tenant for the property. “I had trouble renting it,” he told Triple M’s Hot Breakfast in January 2018. “It took a while. “At one point the real estate agent rang me and said, ‘someone wants to move in but they’ve got a dog’. I felt like saying, ‘I don’t care whether they’ve got a meth lab’.