Links 24 September 2019

Global Macro / Markets / Investing:





Unconventional Economist
Latest posts by Unconventional Economist (see all)


  1. The Traveling Wilbur


    (win the race no one else knew was on, as Ghandi said. Well he might have. Can’t prove he didn’t. Right?)

  2. … United Kingdom … Thomas Cook …

    … What lessons should be learned from this ? …

    THOMAS COOKED Thomas Cook LIVE UPDATES – ‘Holidays DOUBLE in price’ after travel firm collapses … The Sun

    Thomas Cook travel chaos: firm’s collapse leaves 150,000 stranded abroad – live update … The Guardian

    Why did Thomas Cook collapse after 178 years in business? … The Guardian

  3. experience discrimination: survey – The SMH

    Probably does not say who is discriminating against them.

    Kid of refugees from Vietnam went to high school here and applies for jobs but gets rejected by Indian managers who hire other Indians?

    Not really a case of Anglos discriminating against the immigrants from Vietnam.

    • The Horrible Scott Morrison MP

      Discrimination against Christians, property investors, and ordinary mums and dads is rife in this country.

  4. (check out the just released IPSOS ‘Living in Australia’ Survey … and compare … )

    NEW ZEALAND: Housing affordability is STILL the biggest public policy issue in New Zealand … IPSOS July 2019 Monitor …

    The Ipsos New Zealand Issues Monitor – July 2019

    The 2019 15th Edition Demographia International Housing Affordability Survey released 21 January clearly illustrates why … being the worst in the Anglosphere due to inept political leadership …

    2019 15th Annual Demographia International Housing Affordability Survey

    Housing Affordability Ratings … Median Multiples … All Markets

    Australia 5.7
    Canada 4.0
    China (Hong Kong) 20.9
    Ireland 3.7
    New Zealand 6.5
    Singapore 4.6
    United Kingdom 4.8
    United States 3.5

        • Boring? yeah I know you are right! But I’m not as suave looking as you are so I have to settle for something less 🙂
          I love your total commitment!

      • Yeah Eff it!!! Why give a RA about anything. Who cares that, with a private sector running chronic deficits, every dollar of government deficit has to be funded by selling off more of our nation to foreigners – especially the Chinese that MB loves to hate?
        Jericho is a total fwit who can’t string together more than two digits in a sum equation.

          • That is stupid BS resulting from a totally myopic viewpoint. For God’s sake THINK!!!!!! Yeah you can create the bloody stuff – but how do you STOP it. It flows!!!! It flows until one of two things happen – in THIS economy.
            1. You remove it by taxation – which we are not doing in this argument because we are determined to run a Fiscal deficit.
            2. It gets removed through the Current Account Deficit (yeah I know that after 60 continuous years of severe CAD’s , we recently managed to concoct a mini temporary CAS,) The CAD has to be financed. It gets financed by borrowing from foreigners or selling them assets.

            What the hell is wrong with everyone that they cannot conceive of anything bar the simplest first layer of thinking or maths?

          • The third way to take out the injected funds is higher interest rates. However of course saving anything, including the environment, is not on anyone’s agenda – while they all claim to be saving the bloody planet. Talk about total hypocrisy.

          • while you are right about the mechanism you are missing two key points:
            1. economy grows so additional few % of GDP just makes government created money supply fixed relative to size of the economy (deficit at the peak was less than 3% of GDO and around the size of GDP growth). Even in the age of gold standard supply of gold was tracking at that rate
            2. that money is literally nothing compared to debt money created by private banks over the last two decades or so. If we should be worried about selling off the country we should look at private debt that sold not only Australia as a country but Australian people into slavery

    • what do you think will cost to build a new 1GW coal or nuclear power plant in Australia? How many years would it take?

      just look at things we built or just attempted to build in last decade

      • Of course the cost of everything is totally out of control. It’s pretty easy to see why. What have we attempted to build in the last 20 years other than fire boxes for people to live in and more faciltiy for them to get to shops more quickly?
        We just want more consumption for more GDP exactly as Jericho prescribes. It’s all good!!!

          • Yeah bloody great – which necessitates dismantling any serious manufacturing and the shut-down of major industries evedry time there is a bit of a hot day! Oh and it made a corrupt damn lot of charlatans like the Turnbulls rich!!! Even damned well worse most of the bloody things are foreign owned. So we subsidised foreigners to establish them, imported ALL the componentry, now we pay foreigners excessive tariffs to run our own damned country.
            We’re a pack of bloody geniuses we are!!!!

          • we would have no chance of building a coal power plant even by importing everything including workforce

            our disintegration of manufacturing and technical expertise has nothing to do with environmental agenda but rather with financialisation of the economy under neoliberalism

          • Flawse, Its coal plants that shut down on hot days not wind or soalr. They are far more reliable and predictable than the coal industry. We have all the tech and prerequisites to allow us to be the heavy industry leaders of the world.

    • Flawse, if our LNP mates could bring themselves to have a consistent policy on energy taking account of externalities (pollution, unfilled/unreclaimed mining sites, leaking gas fields), the world would be a much better and we would have cheaper price.

      When you have a PM who thought it was smart to take a lump of coal into parliament, what hope do we have?

  5. Hugh PavletichMEMBER

    NEW ZEALAND HOUSING: ANZ Bank economists need to be educated by Westpac Bank economists …

    ANZ senior economist Miles Workman says despite the fact land costs make a significant contribution to house price inflation, the downsides to simply freeing up more for urban use suggest a careful and considered approach is needed |

    Land makes up a pretty hefty chunk of the price of housing.

    The cost of land has made some significant contributions to house price inflation in New Zealand over the years.

    Yet take a drive though the Kiwi countryside and you could be forgiven for thinking there is an abundance of land and that a simple way to address housing affordability is simply to extend a few urban boundaries, pop in some roads and get building.

    But alas, land appropriate for housing might not be as abundant as first thought and land available, particularly around key urban boundaries, is currently being put to good use. …. Read more via hyperlink above …
    Possibly the ANZ NZ Bank could continue with the ‘Hisco Approach’ ( former ANZ Bank CEO David Hisco’s home sale to wife) by providing heavily subsidised housing … to the deserving for a change …

    FMA says ANZ NZ should have disclosed the sale of an Auckland house to the wife of its former CEO David Hisco as a related party transaction, questions role of auditor KPMG … Gareth Vaughan … Interest Co NZ
    … or better still (give the ANZ Bank shareholders a ‘fair go’ break as well) … ask the Westpac Bank economists to educate them in housing reality … and what peoples preferences are …

    Survey finds Kiwis’ backyard dream still alive and well (Westpac Bank) … Scoop New Zealand

    The vast majority of New Zealanders still dream of owning a home with a backyard, according to new research into Kiwis housing preferences commissioned by Westpac NZ.The vast majority of New Zealanders still dream of owning a home with a backyard, according to new research into Kiwi’s housing preferences commissioned by Westpac NZ. … read more via hyperlink above …

    • Is this the action of a bank that isn’t in some sort of trouble behind the scenes?
      They are acting desperate.

    You have stolen my dreams and childhood with your empty words.

    And good on her. If she’s the face of an angry generation of young people I stand behind her. Yet we have ScoMo bringing coal into parliament. How good is ScoMo?