Links 4 September 2019

Global Macro / Markets / Investing:





Leith van Onselen


  1. I hope the ATO nails transfer pricing. It has to be a prohibited, if not the law needs to change immediately.

  2. It is wrong to compare western banking loans to loans created by state owned enterprises in China. The writing off of the Chinese loans is , like the creation of helicopter money, absolutely massive. The Chinese recognise that the creation of debt is merely a book entry if the loan is never enforced, and this forms the basis of its mercantilist policies.

  3. The Fed: “When economists ruled the world” [The Economist]. “Few economists worked at the Federal Reserve in the early 1950s. Those who were on the staff of America’s central bank were relegated to the basement, at a safe remove from the corridors where real decisions were made. Economists had their uses, allowed William McChesney Martin, then the Fed’s chairman. But they also had ‘a far greater sense of confidence in their analyses than I have found to be warranted’. They were best kept down with the surplus furniture and the rats.”