Weekend Reading: 14-15 September 2019

Global Macro / Markets / Investing:





Leith van Onselen

Leith van Onselen is Chief Economist at the MB Fund and MB Super. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.

Latest posts by Leith van Onselen (see all)


  1. … AUSTRALIA …

    Australia’s new ‘class system’ : Why PROPERTY is more important than salary in 2019 – and you’re not ‘rich’ if you earn $150,000-a-year … DAILY MAIL


    • University of Sydney professors said property not wages determined wealth

    • Lisa Adkins, Melinda Cooper and Martijn Konings had investors as the richest

    • Home owners with mortgage put in the middle with renters, homeless at bottom

    • Having rich parents was seen as big factor in whether someone was wealthy … read more via hyperlink above …

    • boomengineeringMEMBER

      Sorry to tag along Steve but.
      That Bathurst car engine block owner picked my brain then tried to cast iron weld it himself. He tig welded a sample piece as per my conversation ( pre heat etc ) then it broke on a mild strength test.
      When I arrived to see if the block was prepared for me to transport, there was his sons friend brazing it in the cold draught . ”The cheapest way to cast weld” was met with” but we’re going to strap it as well”
      His reason for in house was that he didn’t want the crankshaft damaged or contaminated.
      Wouldn’t have had time to do it anyhow as snowed under with machinery gearboxes, so all good and getting away from iron welding as its too hard to justify the price.
      Just an update.

      • Mining BoganMEMBER

        I was wondering how that turned out. Reckon there’s going to be some pain in the future for those guys and their block. Cast iron is crap enough to work on when you know what you’re doing. Some mates asked me about it a while ago for a back yard job and I told them there’s not enough beer in the world.

        You seem to meet the nicest people in your travels Booma. Is there anyone who isn’t trying to take advantage of you?

        • boomengineeringMEMBER

          Not too far in future the race is only a couple of weeks away. Maybe my easy going personality is sometimes mistaken as weakness, but what the hell everything turns out OK in the long run.
          I did have one failure many many years ago though. For a mining contractor, couple of ton 75mm thick wings. No visible cracks, complained that it took so long, it went to the country. They stored it outside in subzero temperatures when cracks appeared.

          • Boom, What MB said.
            Seems like talented people don’t always have that cold calculating edge of the business side….. Can’t be good at everything. If I kick my machine shop off, I’m no in a hurry to cater for sometimes plain stupid requests that’ll be coming through the door. While I’m open to new insights, I know my field & would rather not do bodgy jobs (their cheap/unworkable way) that’ll see them coming back whinging. So I’ll try to educate them like I’ve done in the past, & show them the door if they can’t encountenance the realities. Safe bet a lot down here will whinge about the prices too, seen it too many times already. – IF (such a small word) I can get some income from my budding ‘bot empire I might be better off just doing closed door proto’s & small niche machines on the machining side.

      • Couple of years ago we had a busted Heavy Tractor sump to weld – there wasn’t a spare in the country. No ovens here, so we built a big bonfire, got it as hot as we could with Wattle, Ironbark & Redgum & welded it while in glowing coals (welder was nearly heat stroked afterward). Kept it hot for a day after before letting it all die out & left it all till it was stone cold. Tractors still running never a prob with it since – & he’s a rough bstard on his gear, but at least he knew to give us our best shot.

        • boomengineeringMEMBER

          Colin, at a Japanese restaurant at
          Narrabeen atm so my ph has second replies as single letters on right.
          Your pre heat is about as good as can do, and any port in a storm. Was a marine engineer and at sea you didn’t wait for parts otherwise you would be in dire straits. The wood fire you created was a exelent choice

          • boomengineeringMEMBER

            That just reminded me of welding a Bisalloy sheath around the America’s Cup yacht keel after it won at Pal Marine, Palm Beach. I had to get the right temp between heat sticks and keep turning it over to stop it bending.

  2. Today’s Marxist Monetary Theory message is brought to you by the letter ‘You’ and ‘You’ and ‘steal from You too’.

    • Hay Counterfiat …

      I keep pointing out that MMT is not new, its based on the collective observations of more than a few authors which predates neoliberalism. Lest we forget the monetarists and quasi monetarists have been administrating [dictating] government fiat during the neoliberal period.


      Oh and “Marxist” views on state fiat is more like old testament monetarists, just with different distribution vectors and state owned production vs Corporate owned production and predominant distribution to the financial elite. Don’t think the evidence on either of those two is all cracked up to be, what the rhetoric suggests. Thus is hard to reconcile your stealing accusation unless you favor one of the above, PK MMT forwards full employment and better fiduciary duty with a more equal baseline for social stability through education and health care. Then people can choose [tm] between the private sector and the JG during their life spans without the fear of getting caught in the poverty trap.

      • C’mon skip, what is printing money if not stealing it from the people who are paid in the stuff.

        One man works 40hrs, makes $2,000, gives $700 to the gubbermint while another picks his nose, farts, presses Ctrl P and ‘creates’ $2 billion in a micro second.

        It beggars belief that people are fine with that.

          • Well it may be true that part of that $2,000 might be attributable to the serial money-printer (by virtue of inflation).

            Nonetheless, it should be obvious to the most peanut-brained out there that printing money, in general, is just thieving from the working classes.

            If you don’t have intellect to make that connection you’re one of the ditch-digging classes.

      • Dominic …

        Finding it difficult to reconcile your rather Sunday school perspective on the topic, not that the whole printing meme is a dog whistle trope. I guess one cant expect too much from those that choose to apply a perspective, arrived at by deduction and some rather questionable antiquarian navel gazing alone – a far representation of what actually goes on. This is a core observation by the PK MMT proponents E.g. making stuff up and then using it to forward policy formation – no functional model of financial – monetary systems yet happy to bang on about what is and is not.

        As far as banks goes I’m with Bill Black, for an insight to the political proceeding the market I’m with Hudson et al [no you don’t have to agree with his economics, but, he gives a fair account of the background. That’s without devolving to money crankery.

        Counterfiat …

        Mumbling on about stuff not adhering to your doctrinaire beliefs is more of a self inflicted condition than it is of anyone forcing it on you. Sorta like some expecting the second coming in their life time, so they can feel right and enjoy all the non believers punishment.

          • Group think cults normally broad bush everything else as ev’bal counterfiat, BTW you should look up terms before using them, better yet take a test to determine your baseline before casting aspersions.

            Not that I don’t think you or your group think comrades will ever stop proselytizing, some consider it spreading the good word or fighting on the side of light ….

        • Skip, no overthinking required — it’s basic economics. A bit like 2+2 =4.

          The more you increase the supply of any good the more the unit value of that good (absent any commensurate increase in demand) must decline. A five year old gets it — so should you 😉

          Please don’t invoke some cult-leading wahoo who’s impressed you. You won’t enhance the efficacy of the argument 😉

          • Ugh … reductive supply and demand fairy tales with a side of CTM … sigh

            First problem is money is not wealth but a transnational tool or a score card aka accounting. Now if you want too dream of CTM you should talk to the Phoenicians and how that worked out in the “long run”, but were not on a CTM based accounting system so why would anyone want to apply those optics on a MMT system. And there is the rub with monetarists – why – did they, furthermore why did this parallel the expansion of free market democracy in lesser country’s and their resulting debt levels – rinse and repeat.

            You probably think goods in a Woolies are a function of S&D rather than administrated, seems some still think their living in a village. For that matter seems there is a whole cornucopia of people out there printing [tm] money via bar tabs, coupons, rewards points, or any one issuing credit with time and space expectations rather than up front on the spot barter.

            Simple economics …. yeah … that’s the problem … then some are want to bang their head on the edifice of being on the wrong side of events and then wail about ev’bal forces …

          • Dominic …

            Playing dumb is not a good look IMO.

            If your going to act like you have a broad based knowledge of something then retreat when faced with those that know more or can see past the rhetorical attempts at ownership of a complex, and deep historical backdrop topic – don’t attempt authoritarian oration.

            I mean if you don’t understand the relevance of the Phoenicians with regards to your previous opinions its not my fault.

            Google translator eh, wellie that sounds self inflicted, I mean not doing your own homework and trusting or relying on Google to do it for you. Might have something to do with your perception of economics as well.

          • Skip, I’m a very comfortable advocate of classical economics and most else, frankly, is just quackery.

            I don’t pay out on people who are Scientologists, followers of the Atkins Diet or avid fans of astrology. Each to their own I say and good luck to them 🙂

          • No this is history and anthro Dominic, albeit classical economics was more natural history and political theory than the ex ante stuff that gets trotted out these days. The point was your views on supply and demand and how that panned out for the Phoenicians from a CTM stand point and ultimately its nation becoming a vassal state.

            I furthered this with the example of prices at a supermarket being administered and not functioning on supply and demand alone, this is basic stuff. The rudimentary model is painfully detached from reality, barter, binary transactions, deductions about what others consider value, rational agent models, et al. Its a very huge rule of thumb with can or can not applies, but by no means is empiric.

            Good night.

  3. NEW ZEALAND: Sadly … just more of the Ardern Governments constant incompetence …

    Duncan Garner: Jacinda Ardern could be forced to resign … Newshub


    ‘PM is incompetent and out of her depth’ – Kate Hawkesby and Tim Wilson … NewtalkZB


    Nationals Housing Crisis to Labours Housing Disaster … The Listener Editorial mid-February this year …



    The KiwiBuild failure should galvanise urgent action on NZ’s housing disaster – EDITORIAL – The Listener

    When a nation’s flagship housing policy is such a spectacular failure that it makes the New York Times, the minister in charge cannot avoid the international embarrassment. …

    … Many of the obstacles New Zealanders have faced in trying to build their own homes – in particular, the cost of land, labour and materials – are largely outside the control of developers, regardless of ownership, and even of scale….

    … concluding …

    … The recent Demographia International Report, which compares median house prices in seven wealthy countries plus Hong Kong, reports that in Australia housing has become more affordable over the past year as prices fell due to tightening credit. Yet, alarmingly, New Zealand housing has simply become more unaffordable since this Government took office. Property here is now further out of reach than in the US, Australia and the UK. This is beyond embarrassment. This is a national disaster.

    New Zealand Vowed 100,000 New Homes to Ease Crunch. So Far It Has Built 47. – The New York Times

    New Zealand housing crisis: just 47 ‘affordable’ homes built in six months | Eleanor Ainge Roy | World news | The Guardian

    • I thought the whole thing was a scam once they partnered [tm] with developers, I mean its like letting the fox lose in the hen house.

    • See I prefer ScoMo to Jacinda. At least with ScoMo we all know he’s full of Shyte. Probably why he exploded at Macca’s all those years back. But with Jacinda she pretends she’s all about doing something about lower immigration and affordable housing, but just another big fake. .She’s like Pinocio except her teeth get bigger with each lie.

      • Gav ….

        Did you miss the part about developers in a PPP, Hughes pro developer lobby is just PO’ed that the punch bowl was taken away. I did unpack Demographias ideological underpinnings back in the day, not to mention how is the Sunshine coast RE he was spruking years ago by deregulating land zoning faring of late … sigh … Gav

          • Just look into Demographia’s original founder, pro developer outfit think tank lobbyist group. Reference to Sunshine coats was from years ago in migs day, article in the Sunshine coast bulletin. Posted it here a few times along with the back drop on demographia.

            Basically it’s grounded on pitching suburban RE and a car as an expression of liberty and freedom, markets sort the rest out. Hence why I used to point out the Texas issues when used as a model, Hugh had to confer with an associate about marginal taxation I pointed out to sweeten C-corp deals and as Sweeper has noted MUD bonds.

            I also made reference to the sociopolitical effects of immigration due to these C-corps and their employees political views I.e. age and outlooks. That seems to be unfolding right now in Texas, similar to my views on C-Corps shift away from Conservative ideology, I mean the market was their baby to administer the ideology. Having it usurped must really stick in the craw, especially from the developer aspect, family formation drives RE sales – then some ponder immigration rates is just about wage suppression …

            With all Roads leading back to Milton and crew …. sigh

      • Hugh PavletichMEMBER

        Randolph … Like poor Skippy, you are talking drivel.

        NZ PM Ardern is the author of her own misfortune.

        She is grossly incompetent and way out of her depth.

        Listen carefully to what Kate Hawkesbury and Tim Wilson have to say above.

        The next TV One Colmar Brunton poll sure will be interesting !

          • … and watch closely the superb Simon Shepherd of Newshubs interview with the Deputy Leader ( and 2020 Election Campaign Director) Paula Bennett … a respected politician of long experience. Very sound.

            When aggrieved Prime Ministers Department staff are forced … due to gross Labour Party incompetence top to bottom … to go to the Deputy Leader of the Opposition for help … you know there are serious problems with the Ardern administration !

            No airhead conspiracies here Randolph. Just remarkably deep and constant incompetence.

            It sure is tiresome … and very disappointing after all these years … refer http://www.PerformanceUrbanPlanning.org .

          • Considering your views on Key and all the verbiage used to burnish him, only to make claims of being betrayed, some peoples veracity is indeed questionable Hugh. Not to mention long track records and as I posted years ago … the core ideological views of outfits that lobby for various industries.

            A bit more honesty would go a long way, not to mention information arb is less than optimal in a democracy, then some will say its not functioning correctly and suggest the need for more authoritarian leadership.

  4. TailorTrashMEMBER

    The memshaib took me along to see Downton Abbey the movie ………..it’s intresting to see the 1920’s British certainty and arrogance replaced with 2019 sensitivity’s ……….where the Irish are hero’s ,the [email protected] get a sympathetic portrayal and the working class are allowed to get ideas above their station ………..this movie is a caricature of a society best left behind …….but sadly we are too keen to recreate it ……in our ignorance ………….and so sadly in Straya ………Lord Reusa will receive you in the library….

    • The entire entertainment industry has been highjacked by the social justice movement. Who gives a sh!t about a good script anymore. In the meanwhile the Head of Casting is now the most important person in the process: mandatorily there must be at least one character of dubious sexual persuasion, one Asian, one of African origin, a female in the main hero role, a white male (formerly a hero) but now in the twilight years and in the process of dying off — and definitely a white male in the anti-hero role. And so on.

      Goodness me, that sounds a little like the latest Star Wars franchise — and 95% of all Hollywood (and Anglosphere) output these days. Just imagine, Hollywood the self-appointed moral compass for western society! Anyone notice the irony? Weinstein (cough, cough)

      Thanks, I don’t need to be patronised by these self-obsessed, arrogant cvnts

    • Just been watching Peaky Blinders on Netflix. Set in same period but a whole different slant on part of that period. I can see it coming back in a modern way too if the money gap keeps growing……

    • Always fun to watch free market sorts lose the plot when the market abandons conservative social mores because it hits the corporatist bottom line …. yet its a market outcome … based on profit alone …

  5. Seventh, surprisingly. It is mighty quiet for this time of night. Either you punters are too drunk, or not drunk enough.

  6. boomengineeringMEMBER

    Livid was the wife after getting up at 4.00am to walk the dogs to ensure beating the traffic before 5.30 to get to the extraordinary strata meeting at CC hoping to force me to get rid of my containers, agitator being the panel beater. Waited for them to open at 9.00. Lo and behold no one showed up as per prior notice given to manager, so no quorum, meeting canceled.
    While there asked strata manager if I could put a fence around my allotted car space a resounding NO she bellowed. Then why has the panel beater have a fence around his? she went quite.

    • Petition for his to be removed based on it obstructing free access within a common space. Also it could be a safety issue.

      • boomengineeringMEMBER

        Thanks Chase. it seems people in glass houses throw the most stones, then shoot themselves in the foot

        • She went quiet….. Push loud, hard, don’t draw breath, & list all the hypocrisies while she’s on the back foot! Keep her backpedaling with a gale till fairness & balance is restored!! And then put the boot in….. Sorry – too much Peaky Blinders.

          • And… if she’s just the Strata manager she can’t say no on behalf of a non existent quorum, she’s just there to manage the meeting & enforce whatever laws/by laws have been made on that particular strata….. which may be a no, but as you point out, should be same for all. (by laws can be made/changed by a quorum…..)

          • boomengineeringMEMBER

            Thks Colin, yep hypocrite alright, don’t really care that he has junk and rubbish everywhere ( looks more like a wreckers yard ) as I’m not there very often anyhow but leave his obsession with containers to himself.

        • Also Boom, you “DO CARE” about his junk – it’s all leverage to set him on the back foot & get him off your back……!

  7. Forget blue or white collar. Society is now about the mortgage – The SMH

    a tax system that rewarded people the more houses and units they owned

    Attack the landed gentry. Put a massive tax on the third house – 50% stamp duty.

    If you are a foreign person who owns residential land in NSW, you must pay a land tax surcharge in addition to any land tax you may already pay.

    The surcharge rate is:

    0.75 per cent from the 2017 land tax year and
    two per cent from the 2018 land tax year onwards.

    Put in a rental tax on foreigners too.

    • Mining BoganMEMBER

      Is that why mortgage scum get upset when rental scum laugh at their self-imposed slavery?

      Man that’s a desperate article. Who wrote it? Sounds like someone who needs to be put on the set on fire list.

  8. Something not widely reported about an Aussie sitting in a London jail cell.

    Julian Assange To Stay In Jail Even After End Of Sentence
    Julian Assange was due to be released on September 22 after serving his sentence for breaching bail conditions.

    • I don’t think he realises how bad this is making him look. Heck, he’s actually made Albo look more politically competent – that’s quite a feat in itself.
      “How good is fcking up in parliament”.

  9. Hartcher is late, but on the ball with most of this……

    PM plays the race card … into China’s hands


    Morrison himself was the first and only one to suggest there was any race element to the pursuit of Liu. And in doing so, he has done Beijing’s work for it. To claim that any scrutiny of an ethnically Chinese person is racist is exactly the tactic of the Global Times and the other mouthpieces of the Chinese Communist Party.

    In doing so, the Prime Minister has helped protect his MP but damaged his country’s ability to protect itself. It was a “profound error”, in the words of a senior Liberal, “that makes it much harder to scrutinise potential agents of influence in future”.

    The Prime Minister won’t have any difficulty in telling Trump that, in this grand confrontation between the US and China, Australia is on America’s side. Morrison needs to remind himself that he’s supposed to be on Australia’s side too.

    ScoMo is about to be hoist in his (own party’s) incompetence and lack of vision

    • After the current batch of ASIO officers retire, the next batch will come from highly corrupt Aussie “unis”.

      Goodness knows if the next batch will be smart enough to identify PLA puppets. Moreover, Scummo has now referred to ASIO officers as “racialist”. ASIO may now be reluctant to identify other PLA puppets if Scummo and Albo are going to stand them in elections anyway.

    • Yup: Kids, here’s the key to the lolly store. Help yourselves, but I’d request that you all exercise restraint.

      • Don’t worry dad last time I got several gingerbread McMansions stuffed with lollies & I wasn’t even sick.
        (😂 auto correct entered loonies instead of lollies … probably more accurate😂)

    • “Mr Byres’ speech also highlighted the squeeze on bank profits from low interest rates as lenders struggle to offset the decline in their lending rates through their deposit portfolios. Mr Byres said smaller banks, which have a higher reliance on deposit funding, could feel the hit on their profits “more forcefully” than large banks, and this could affect competition in the market.”

      Was looking at my supposedly “High Interest” savings account recently. It’s now dropped to a whopping 0.15%. I mean, it might as well be zero and there isn’t much lower for the bank to go.

      Now while I’ve got a fair bit in there not to notice much difference or change to overall quality of life, but anyone reliant solely on fixed interest income has probably already noticed they’re going backwards and has already moved to another asset class or reduced spending.

    • Really good speech. Lots to think about.

      I think if Trump gets re-elected he’ll go hog wild and stick it to the CCP but right now he’s being forced, by the possibility of recession and a stock bear market, to do a delicate dance as these remain the biggest threats to his re-election.

      • You raise a good point. This is why these things go in cycles: (crony) capitalism eventually gets so egregious that there’s a societal backlash and we end up with Jeremy Corbyn and Bernie Sanders coming to power. We try a form of socialism, that fails and the cycle begins again.

          • Sanders is actually to the right of Eisenhower, showing how far right some peoples conception of socialist* anything has moved, centrists are moderate Republicans now, some call these people Liberals.

            * Sanders is a social democrat, nothing to do with national socialists or any other gateway ideology to communism.

            I guess being born yesterday might have something to do with it … that or getting your polysci from the Khan Academy.

    • A multi-polar world became a uni-polar world with the fall of the Berlin Wall and Francis Fukuyama said it was the end of history.

      It was all going so well, until the neoliberals got to work.

      The US created an open, globalised world with the Washington Consensus.

      China went from almost nothing to become a global super power.

      That wasn’t supposed to happen, let’s get the rocket scientists onto it.

      Maximising profit is all about reducing costs.

      China had coal fired power stations to provide cheap energy.
      China had lax regulations reducing environmental and health and safety costs.
      China had a low cost of living so employers could pay low wages.
      China had low taxes and a minimal welfare state.

      China had all the advantages in an open globalised world.

      “The Washington Consensus was always going to work better for China than the US” the rocket scientists are now panicked ….

  10. So the Canadians appear to have arrested Cameron Ortiz of RCMP (Canadian Mounted Police) who has the highest security clearance with access to 5 eyes intel, is described as their biggest security nightmare ever that affects allies. (He’s fluent Mandarin speaker so you can guess who ikely turned him, though Russians in the mix also)
    source @mercedesglobal on twitter

    • I’ve got to say, every time I hear the word ‘Russians’ I switch off. They definitely care about national security and I’m sure they spy on other people (just like every other country does) but they don’t have Imperialist ambitions like the Chinese do.

      ‘The Russians did it’ is an invention of US Democrats still smarting over Trump 2016

      The Chinee, on the other hand, are very ambitious.

      • Huh? How did Russia become so large without Imperialist ambitions? There is little doubt that Russia will annex Finland, Poland, Ukraine and others if she ever gets a chance to do so.

        • Really? I would stop reading conspiracy websites. No doubt you believe the Russians also blew that Malaysian airliner out of the sky too.

          Last time I looked Russia is the product of a decentralising process otherwise known as the dismantling of the Soviet Union. But perhaps I’m just imagining all this.

          • Their proxies blew the Malaysian plane out of the sky, yes. As for eyeing off bits of countries on their borders, history books in general aren’t counted as conspiracy sites.

          • You might be able to claim that the Molotov–Ribbentrop Pact of 1939 and the Winter War of 1940 were ancient history, but you cannot possibly claim that Russia’s annexation of Crimea is also ancient history. I mean, you could but I doubt that that will do you any good.

          • DS – Russia followed the west’s process in Crimea’s case. Russia did same what Kosovo did and the west supported it. You can’t have it both ways mate.

          • @Olaf
            So, potentially some drunk idiots made a mistake in the Donbass region – that’s a definite possibility. But perhaps you’d like to explain precisely what (if it were done deliberately) Putin had to gain from it? I look forward to the justification because what you’ll puling out of your ar$e is not going to be pretty either way.

            Oh, and given you’re so knowledgeable on the subject I’d be very curious to hear from you how you missed the Prime Minister of Malaysia’s recent dismissal of the findings into what really happened. He is on record as saying the entire (Dutch-led) investigation is a complete farken stitch-up.

          • Nikola, a closer analogue is the German annexation of the Sudetenland from Czechoslovakia in 1938. Yes, the West supported Hitler’s principle of self-determination back then, and the rest is, well, history.

            What exactly will stop Putin from annexing other lands from Russia’s neighbors that have sizable ethnic Russian populations?

          • @Sidious
            You’re not much of a historian are you. Allow me to ‘splain the thing. Crimea has always been a Russian asset but given it’s geographical location it was ‘gifted’ to the Ukranians — largely on the basis that the countries would remain allies, which they were, until the CIA-backed Maidan uprising, at which point the Russia-friendly head (Yanukovich) was chased out of town to be replaced with a US-approved puppet. This left Putin in a spot because he has always wanted to keep NATO as distant from the western border as possible and now, with the ‘new’ Ukraine cosying up to the EU he faced the future prospect of NATO weaponry right on the western front, at which point he said: Thanks, I’ll have my port back ya cvnts.

            Not unreasonable I would say. Whatever ambitions Russia may have had in the past have no relevance today — they are not a major military power anymore. Admittedly the western media have been very compliant when fed negative information on Russia’s doings and a gullible public have swallowed a lot of it, unfortunately. The Russkies are a spent force – the Chinese are where the action is.

            You obviously haven’t spent a single minute listening to what Putin has to say but if you took the time rather than swallowing the garbage in our propaganda rags you’d takeaway this: he understands that involving your country in lengthy intractable wars is fool’s game and a surefire way to end up in bankruptcy; he looks at the US and laughs to himself (Afghanistan, Iraq, thousands of military bases around the world) and knows where that’s all headed. He wonders what the US Dollar will be worth in the years to come — and fills the Russian central bank’s boots with gold, all the while selling US Treasuries ….

            Sorry but ‘Russia as bad guy’ is decades old news — Reds under the bed BS. If you want to swallow all that then be my guest.

          • Dominic, where did you get the idea that Russia is not a major military power anymore? It still has a large nuclear arsenal and it was not so long ago that Putin unveiled Russia’s new high-tech weaponry.

            Of course, Putin would be laughing – if the US and China started shooting against each other by any chance, Putin could rewrite the map unopposed in the aftermath.

          • DS – say what you like. simple fact is Russia did same what Albanians did in Kosovo and btw there are no Kosovars as such but Albanians and Serbs that live there. Many years ago there were only Macedonians that lived there, matter of fact. That is before the Serbs and later Albanians moved in and this is little known by many. Serbs would kill me to say this so as you can see I don’t really care about Serbia or Russia or US but I do care about telling the truth. I lived there (former Yugoslavia) nearly half my life.
            But yes, there is always another way to peel the onion when it comes to Russia.

          • @ Nikola

            Close but not cigar (comment further up)

            Crimea voted reunification, during relative peace and in the face of a possibility of a war.

            Kosovo voted separation after deconstitutionalising and expunging all of other constitutional ethnicities from the region.
            The same process you have in Macca but in super slow motion.

          • Gee, Randolph, you must be the first illiterate 8yr old to comment this site. Well done.

            Now toddle off and see what your mummy wants.

      • FYI Dom, most believe you here. If we look to the US and it’s 24/7 Russia did it. I can’t believe the security services there don’t make a definitive statement on China. On IP theft I was working there when a huge one happened in the company I was working for, but we never saw it posted on any of the big US MSM. In states like CA they are broke and the IP $’s would help fix a lot of infra and more. The MSM there would rather keep the other attack going IMO.

  11. I gotta say I am deeply offended by the new female monopoly game and find this discriminating against males and gender neutral individuals. Someone with more money than I should sue them.

  12. Uber:
    There are lots of curious things going on in the world right now — some of them bat sh1t crazy — but how does a ride share App like Uber lose $5.2bn in a quarter?? They take 17% of every fare and UberEats takes 35%. How do you lose money on those numbers? Head office costs? Legal costs? Marketing? It boggles the mind.

    And now every man and his dog is piling on: Lyft, Ola, Didi etc. And they’re doing better deals for drivers (and punters). Didi takes only 5% so how will Uber ever turn a profit if they can’t make one taking 17% and 35%?

    Uber’s market cap is $56bn (after a precipitous fall in share price) but what can its stock really be worth in a market where there are literally no barriers to entry. Its assets are its platform and the name (brand). That’s it.

    • It’s easier to understand this phenomenon if instead of focusing on the magnitude of the losses you instead focus your attention on the nature of the losses (as in exactly which class of expenses consumes most of the corporate level cashflow)
      It also helps to understand who exactly benefits from the accumulation of losses, especially for a business that would externally appear to be hugely cashflow positive.
      Most people still don’t seem to understand that the appropriate Accounting rules (GAAP accounting) depends largely on the nature of your business (Adherence to these rules is often the dominant factor in determining profit or loss). For instance Banks and Financial institutions operate under a very different set of Accounting regulations to say a Manufacturer, which are very different again from say a REIT. Some would even go as far as to suggest that Financial institutions have created this advantage for themselves but today this advantage is so enormous that even businesses with no interest in banking will still wish to appear to be banks or at least will wish to be treated as banks for Accounting purposes.

    • Head office cost is 700 million a quarter, but the biggest segment of loss comes from ‘IPO expense.’

      It is making money, but not for the ordinary shareholder.

      • I’m not disbelieving you but IPO expense makes no sense — I used to raise capital for a living and I cannot think what kind of agreement Uber had with its bankers that they would be shelling out billions each quarter. A performance clause??

        It’s pretty weird

      • I only asked the question, skip 😉

        No need for the attitude. That said, having looked under Yves Smith’s ‘hood’ I still cannot find reference to what their fvcking costs are. Yves’ mate has written this extensive article and still not explained where (precisely) the fvck the costs are coming from. This kind of platform can be run by two men and a dog.

        • What part about Uber never being intended to operate on a profit is confusing, its scaled like most sillycon valley business unicorns – its just an IPO IV fueled by squillionar first in best dressed dumb money, did you miss the Saudis belling the cat. As far as bleeding goes that’s just admin and legal overhead whilst underbidding the market to gain dominate market share – in the expectation – they would one day be monopolists.

          I’m actually quite surprised that you are unaware considering you said you read the Horn stuff and maybe the comments ensconced in the NC posts. You know black box pricing [information arb], silly gameable two way satisfaction reporting, driver operational costings that are unviable as a business requiring churn that will meet the wall sooner than later, early in drivers expectations like that of land holders agreeing to fracking only to find income goes poof in just a few years, I mean is it all you do – is look at some numbers when discerning a business or investments viability in the short and more importantly long term.

    • Dominic,

      It is very strange. Most drivers use all of the platforms, even some taxi drivers.

      The guy who drove on Friday night was talking about the comparisons between the apps and that it is the decision of the rider that determines which platform gets the fare.

      So a platform treating drivers ‘better’ is not the issue.

      It is all about the button pushing of the rider.

      And that is purely marketing. I assume Uber are still spending mega bucks on advertising and fare subsidies (it seems that the cost of running an Uber is not much different to running a cab so any difference in fare is partly subsidy).

      It takes a lot to get a rider who is happy with Uber to bother setting up a new account on a new platform. I like trying new services but I had no complaints about an Uber appearing in 5 mins at a deserted suburban railway station at 1.30 am Saturday morning. I wouldn’t care if Uber charged the same as a cab. It is the ease of ordering, paying and watching the car on approach that is appealing.

      Though the driver on Friday night said there are some pretty great offers out there to get you to try the new ones.

      • Recently JJJ did a taxi – uber comparison and it seems the advanced comparison pricing feature of traditional taxis vs uber was more than 20+% off on the uber app. This is the black box pricing I noted in the comment above, consumers are Milgramed into believing the uber apps pricing information – without means to evaluate. Especially when one considers the spot time psychology of the consumer seeking a service.

        • That might be correct (I don’t use rides/taxis enough to know) but originally there was a difference of between 10-20%.

          Perhaps that was the subsidy and it is now being removed/reduced.

          Every now and then I give taxis a go but almost always regret it. It seems that most of the decent taxi shift drivers are now driving for themselves on the other platforms so you can get some real duds and some very average cabs.

          If you get an owner driver in a cab it is usually ok.

          That is the key – owner drivers. If the taxi industry prioritised owner drivers, Uber would have found it much more difficult to get a foot hold and hold it.

          Switching between platforms seems like the best way to drain the investors ‘subsidy’ funds.

          • The uber app was reporting the taxi was 20% higher than the actual taxi trip. At least the taxi driver did issue the caveat that some taxi drivers did fee pad.

            My concern is the black box aspect of the apps information for shaping consumers choices WRT on the spot timing. Considering ubers M.O. on a wide array of business activities that would be highly suspect, I mean were back to price antics like retail jewelers were renown for E.g. wildly inflated SRP which then gets the huge – on sale – treatment.

            Definitely a violation of the Fair Trade Act, but then again, one could surmise that some might look the other way because at least their counted as employed and he slavish devotion to economic metrics.

          • “..The uber app was reporting the taxi was 20% higher than the actual taxi trip..”

            I will keep an eye on that. I hadn’t noticed a problem before but Friday was the first paid ride for months so perhaps Uber is getting desperate and dodgy.

            There is a black box element to the pricing (a bit like those taxi meters that seemed to run a bit faster) which indicates it may be a good idea to use a range of platforms to monitor prices.

    • Yeah I don’t get this obsession with having the “newest” stuff all the time. The fun stuff is the old stuff. For example I could buy a Bugatti for $1M with 1000HP and not be able to use it in any practical way. Or I could buy a 20 year old Nissan and build it to 1000hp…for less than a 1/3 of the price.

      • Now you’ve got a few months under the belt, how’s the Stagea going Gav? Liking the grip compared to 2wd?

        • I absolutely adore my Stagea with the RB26. It’s a little heavy on fuel use compared to the Jimny, but it is double the engine size, 2 more cylinders and 2 turbos plus a fair bit heavier at 1700kg. That’s the rub really, it’s not a sports car, but I love it’s utility value and I love the RB26 motor.

          It’s just not great around the city given the size of it and the body kit makes it a nightmare for driveways or speed humps if I’m totally honest. But on the open road it’s great fun and it actually draws a lot of attention, much more than I expected.

          Only thing I don’t like is that I care about it, so unlike the Jimny have to be careful where I park it and it currently lives outdoors in the elements. I wash it and then it rains the next day and is covered in filth. I really want my own garage space for it. *sigh* hate this housing market.

          • ErmingtonPlumbingMEMBER

            All the old houses in Ermo have got backyard garages Gav.
            You should buy the house next to mine (owners 93) and we can take turns drinking Pi$$ in eachothers man caves.
            Once they rezone for units in 20 years time we will clean up with our1200m2!

          • My 323 still needs work, but is good enough for a DD. Seems like there’s growing interest in them of late – so rare I guess, but not bidding higher. I’ve been looking closer at either the ST Focus (fwd 🙁 ) or the WRX STI Hatch for something newer. I doubt either will be as agile in really tight twisties even with their electronic trickery because they’re fat & heavier, but maybe good enough for me nowadays (STI will probably out accelerate mine unless I go OTT). Any knowledge on these?

          • @Colin I looked at getting a Subaru but they are known for weak gearboxes (glassbox) and ring land failures and head gaskets going pop..

            I went to look at a Stagea and owner had got a hatch WRX and gearbox was already broken in it. Lol.

          • Colin yes, that’s the model with the glass box. :). 1 of the Stagea sellers I saw had bought 1 since the Stagea was heavy on fuel and he was doing a lot of KM’s per week for work. Within a week the gearbox blew up. He bought it knowing it made a bit of noise but didn’t think it would let go so soon. I test drove a Forester (auto) which had transmission noise,

            RE: panel beating, been doing a part time tafe course for 4 years (Monday Nights) learning to weld, panel beat etc.. I enjoy it. But it’s a slow process/time consuming. No wonder nobody has the skills yet.

      • boomengineeringMEMBER

        That looked a bit like my real old Campagnolo gear change fitted inside the end of the handlebars. Have Di 2 now best ever, flick it and it overreaches to change then settles back in ride automatically. Used to hate fumbling around to ensure exact location of manual.

    • Damn you! Now I’m imaginary bike shopping for a bike I don’t need.
      I used to own one of the Australian designed Quests.
      It’s easily the best bike I’ve owned.
      And the only bicycle I’ve regretted selling.
      More kms with less discomfort than my touring bike.
      More kms at a better clip, and much less discomfort, than any carbon fiber racer I’ve owned.

  13. Parents just went to check out a Mudbrick home in Melbourne’s North East… Groups of people everywhere! Unreal.. The bubble is back… I can’t win. Listed at a price I could buy outright, think some numpty is gonna pay to to $1M for it.

  14. “The Bank of Japan “may [also] hold fire” reckons a story on Reuters, keeping its current QE and negative rates unchanged because Tokyo policymakers “want to keep their powder dry for as long as possible in case Japan’s economy runs into greater trouble.”” – LOL – keep powder dry. – LOL
    This is plain insanity.. anyway seeking opinion please:
    US registered rising inflation and wages while Trump is calling for negative IRs and pressing hard to get at least 25 basis points cut.
    Is the inflation and wage hikes product of too much easing as too many zombie companies still stay afloat thanks to cheap money or is US economy really recovering. My view is whatever the reason FED should not be cutting and if inflation start creeping up FED should actually hike.
    Any opinions on where FED might go next week and why?

  15. “No.2 Eurozone economy France today saw trains in the center of Paris brought to a standstill by the biggest strike from transport workers for 12 years, protesting against President Macron’s attempt to raise their retirement age from 52 for RATP metro staff – a full decade younger than most public-sector staff.” – wow, this would never happen here. Our Gov can bring a law for us to work until 120 and not one cvnt will dare to hit the streets while the French want to retain their retirement age at 52 (the ones that have it).
    And, has anyone heard from MSM about this strike?

    • Our Malfunctioning State Media wouldn’t want to give us any ideas that there’s alternative views to their own.

    • Our Gov can bring a law for us to work until 120 and not one cvnt will dare to hit the streets while the French want to retain their retirement age at 52 (the ones that have it).

      In fact the most likely commonplace response to the French strike would be some comment about laziness.

      That is how comprehensively the neoliberal right own the narrative. We hear about people taking action to achieve a higher quality of life and rather than thinking it’s a good idea, we sneer at them.

    • You can buy quality product in China, but like anything with quality that costs more.
      Problem is the customer, especially Strayan construction companies,
      They go for the low lowest price, they are reluctant to fly someone over to inspect the goods to see if it’s the quality it’s claimed to be, and they rely on the Australian contract law to save them if the supplier doesn’t deliver the right goods.
      That might work if the supplier is based in Australia, but if you are paying for container loads you often have to pay before it leaves China on the ship. Good luck recovering the money.
      Moral of the story do proper inspection before placing on order on the rock bottom price quotation.

  16. True talk people,

    What are everyones thoughts about the new Land Rover Defender? They’re ugly in some photos, but I think in the flesh they’ll look great. There’s still a lot of unknowns about stats, economy and actual price here down under. Definitely an interesting car to consider, although the proposed landcruiser 300 series with a v6 hybrid might step it up again when it has new technology in it, compared to the 200 seeries.

    • When I think LandRover, I used to think of the tough series 3’s & then the 110’s. Now I think LandCruiser – the toughest for our outback & popular for good reasons. Is all that electric going to cope in a deep river crossings compared to a Diesel? How will it go with bulldust all through it? How’s all those extra moving parts going to handle serious corrugations for hundreds of miles? Will an outback mechanic be able to fix it? Will there be parts close by or will it be a 2 week wait?

      Of course, if it’s for tarmac only then nothing I’ve queried applies……. should be tough enuf for that 😉

      • haha, lovely joke. 😉
        replace smoke machine with a 50yo ute in new clothes that can carry just a breifcase more than your common Hilux

    • I run a series III with a holden 202 up the front end. Extremely tough and reliable. Also uncomfortable, slow and thirsty. Not to mention loud, hot on a hot day, cold on a cold day and did I mention thirsty? I doubt any modern version of it is any improvement…

  17. The idiot box, this evening, featuring many touristy adverts for Taiwan, “The Heart of Asia’. What’s that all about?

    • SnappedUpSavvyMEMBER

      I notice the Taiwan ads come and go, I think now because summer is ending as you really don’t want to be there in Summer as the heat and noise and commotion is pretty bad, the other 3 seasons are nice and the people and tiny island country is awesome I highly recommend it

    • Tiawan is (or used to be, I don’t travel there much anymore) a really weird tourist destination.
      First up there are lots of very beautiful mountains and lakes and some very spectacular coast line (most of the beaches are shite but there are a few beautiful beaches at the very southern tip). the night life is great if your into Night markets and street food…I don’t know much about the whole Dance / Music scene but I understand that it is pretty much restricted to Taipei.
      Restaurants vary from outstanding to wouldn’t let my dog eat there. There are some Sushi restaurants that rival anything Japan has to offer really amazing but also expensive, I mean really expensive.
      There are still pockets of Indigenous Taiwan tribes still kinda living tribal life in the mountains. My secretary belonged to one of these groups and took me along to see the festivities one weekend….definitely not what that I expected. and definitely not a show put on for the tourists (like in Hawaii or Tahiti), but I don’t think tourists are welcome either.
      The main problem with being a tourist in Taiwan is the lack of tourist facilities. Basically your either part of a bus tour group (please shot me before I show any interest in bus tours) or you’re on your own, you’ll find that the whole hotel scene is very disorganized and not ready for non-Chinese speaker especially in the south once you’re outside the major cities.
      All in all it’s a great vacation spot, it just lacks real tourist infrastructure but it does have a great public transport system including the High Speed train (runs almost the full length of the island)

      • Just to add something I forgot
        Really friendly people and a very safe place to travel oh and if you like tropical fruit than Taiwan is your heaven.
        One really interesting fruit is called “water-Apple” (or maybe Wax Apple in English) it’s about the size of a small apple but tastes like a Lilly-Pilly the two plants are closely related btw, it’s considered somewhat of a delicacy in Taiwan.

  18. Mining BoganMEMBER

    I’ve just seen an Englishman handball AFL style after scoring a try in a rugby league game.

    Who says we’re not multicultural and diverse?

    • AFL to join the infectious diseases list?

      (I hand-balled a rugby ball to someone the other day and they piped up: we don’t do that kind of thing round here. I was surprised given how well the Lions are going these days)

    • 99pc of the pre LSD criminalisation era cartoons are unlikely to be run again… Tom + Jerry and stereotype maids, Duffy being black, Speedy Gonzales… cartoons from pre-WW2 are probably never to see the TV broadcast ever for the smame reason.

      I see satire going the way of Soviet writers where only intelligent will get the intended message, the reset will laugh but for different reason.

  19. Hong Kong govt urged to act on home affordability ( and learn from Singapore ) … Ecns.cn


    Economist says city can learn from Singapore how to develop its housing

    The government of the Hong Kong Special Administrative Region should provide more affordable housing for local residents and boost the city’s homeownership rate through innovative policies and legislation. …

    … Hong Kong has the least affordable home prices in the world, according to the Demographia 2019 International Housing Affordability Survey. The ratio of the median property price to the median household income, was 20.9 times in Hong Kong, with the home price HK$7.169 million ($916,195) and the household income HK$343,000. That means that it would take an average household 20.9 years to be able to afford an apartment in Hong Kong if there were no other expenses.

    By comparison, the ratio for Vancouver, which ranked second in the latest survey, was 12.6 years and that for third-place Sydney was 11.7 years.

    A total of 49.2 percent of households in Hong Kong own their home, according to the official homeownership rate for 2019. The levels peaked at 54.3 percent in 2004, but have been on the decline since 2011. In Singapore, Hong Kong’s longtime rival, the rate stands at 90 percent. … read more via hyperlink above …
    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
    Definition of an Affordable Housing Market … Performance Urban Planning.org


    • reusachtigeMEMBER

      All tax is evil and no good can come of it. It serves the wrong sort of people. Takes from achievers and rewards failures.

  20. Mining BoganMEMBER

    The Sydney marathon is on. All the talking heads keep banging on about how the race showcases such a beautiful city. That’s because of road closures and hidden homeless. How about they run it at three o’clock on a Friday afternoon and give the world a perspective of what a third world sh!thole it’s become.

  21. Headline in the London Tele this morning …

    “£4.8m golden lavatory stolen from Blenheim Palace … police have nothing to go on”.

  22. Saudi’s should have bought Russian air defences…….Mr Putin must have a big smile on his face this morning


    If this is true the gloves are coming off


    Only a matter of time before Lebanon asks for S400 cover………that explosion in North Cyprus was definitely suss………..despite all the lies told about the Permian the US can’t afford to be sidelined out of the Middle East so will have to act before they are forced to garrison Saudi Arabia on a long term basis, thus freeing up China

    • Shifty Politician

      This is amazing and genuinely fascinating. Can I ask how you came upon this source ?

      China now manufactures and exports weapons which easily compete and in many cases (particularly cost wise) outperform the US exports. These drones were Iranian made, Iran is one of the worlds largest domestic hardware manufacturers due to them being cut off from hardware during the 8 year war. Self reliance became their mantra. The US drone they brought down several years ago was shared with China on a contra hardware sharing arrangement catapulting Iran even further forward.

      They have developed their own local fighter jet for the gulf region conditions

      And remember everyone laughed at the “joke” F-313 “Qaher” Stealth Jet – yeah well its real and up and flying.

      Bolton was just fired. Wonder what is going on.

      Personal view is that the US is attempting to close down all competition to its own supplies of energy and force reliance both energy wise and as a consequence politically / economically on themselves. Drives up oil prices at the same time. Accepting Russia can not be contained (energy wise) but is isolated politically may well be enough.

      From the comments




    • “The Saudi clown prince will have to make peace with Yemen before he can sell Aramco shares for a decent price. He will have to cough up many billions in reparation payments to Yemen and its people before the Houthi will be willing to make peace.” – check mate.
      My only concern is that Mericans (CIA and military hawks) might have deliberately allowed for the attack to succeed in order to start a war.
      But you are right it will be funny if Saudi A buys air defences from Russia even though I am absolutely sure the Mericans will not allow that. It does not mean the Clown Prince may not try and find himself out of a job (or loses his head) in the process.

        • time will tell and time will answer my question about how Houthis managed to strike that deep. If US starts a war it means US allowed those drones to hit the targets and US can handle anything Iran throws at them and their friends. If US does not start a war it means they only bark but will do nothing because they got the message – Iran can shut the Strait of H or, at least, will be able to destroy Saudi’s and couple of other gulf nations oilfields and will trigger massive global recession with oil prices topping $200 before US manages to destroy them.

      • Shifty Politician

        Bolton just got fired for this VERY REASON. No war with Iran coming – would blow up the entire planet – not going to happen.

        The reason it was allowed to happen is drive up US oil prices – same reason every other oil producing nation on earth has been taken out by the US.


        • you think CIA and the military complex care or understand? They are all self serving pr1cks mate and have no clue about wider implications.

        • Bolton should have his stomach cut open and hung by his intestines. As much as I dislike Trump, he does have a humanitarian side; business is business but killing a sh1t load of people to make money is not right. There are some cool heads working behind the scenes to keep a lunatic like Bolton from turning the middle east into a burning pile sh1t like all the other times they’ve tried to “democratise” the region.

  23. Decent attempt at clouding how the Chinese regime uses its influence.


    Of course much of what these China linked organisations get up to is just opportunities for people to network and self-promote but why would the party go to all the effort of creating and promoting these organisations. The obvious reason would be that the organisations provide cover, plausibe deniability, for the authorities’s activities..

    • The Chinese government would just like Australia to happily bend over like it does for our other colonisers.

      A sufficient number of sinophiles will do the job nicely.

      You would be surprised how many organisations there are doing exactly right now that for most of our other colonisers.

      It is quite a jolly circuit if you join up.

      Lots of interesting seminars with canapés and free booze.

      Buy yourself a jacket and tie, look respectable and be civil and you can have lots of fun.

    • We need these opportunities for networking otherwise it is rather difficult for well assimilated and integrated New Australians to meet each other.

  24. boomengineeringMEMBER

    Can’t seem to break my cafe addiction, at Bluewater cafe atm. Oh well, don’t spend on alcohol.
    A fund, update, after 6wks of beating Simon, got put into place by both this morn although they did sit on me all the way on the flat headwind. Consolation prize thrashed them on Forrest Way hill. Simon hates to lose face in front of the others and puts extra effort in.

    • The old sit on your wheel then pop out when you’re burnt. Still you’re doing very well with your training. I’ve only done 160 this week with 100k yesterday. I’m working 7 days a week just like you atm. I was going to go out today, but rained and 56km/h head winds.

      • boomengineeringMEMBER

        First day off today for a while but will do a bit soon then load the truck. Mikes a machine who should have been beaten by a machine repairer. Cut down on laps 2 to 3 (work) so deserved the beating. Actually don’t mind the sis on the wheel thingy as ultimately get more exercise in that way

        Your wind a lot stronger than this morn but wish you went for a short one (not in rain though) just to keep your hand in.
        160 kms 100 yesterday crikey, haven’t counted mine but way more than me.

  25. Some fools on the Idiot Box this morning trying desperately to white wash Liu’s massive fund raising, talking about her er (cough) “so-called connections”. Apparently, the money was all given to her from purely disinterested motives and she wasn’t lying, true blue and dinky dye; no, it was all just a mistake, an accident, a fluke! GOOD GOO the Idiot Box is the moron’s guide to the world.

    Well Sam Dastayari had some very wise things to say in this morning’s SMH:

    ‘ ”You think you’re using them, but they’re using you’: [Dastyari on donors]-well, duh, but to his credit he takes it further- “I thought I was smarter than them, and in hindsight I let myself get used, and that’s on me,” Dastyari tells The Sun-Herald and the Sunday Age. “You may be thinking that you’re the one using them, but in the end they’re the one using you.” ‘ Well, yes, you were using them, but I fully concede that like most ambitious politicians you had an immensely exaggerated sense of your intellect and power. Let’s be honest here, the parliament is dominated by lawyers, real estate agents and union officials. We’re talking pretty mundane intellects with a very narrow vision of the world but powered by immense egos, so no doubt they actually think they’re in charge. Of course they’re not, they’re owned by their donors. So full credit to young Sam for recognising this.

    Sam also has some words for our Real Estate Agent in PM and fake patriot: “It worries me when you use race as a shield from legitimate questions,” he says. “What’s that Hunter S. Thompson quote? Buy the ticket, take the ride. If you get in the ring, you’re going to get punched.”

    Brilliantly said Sam.

    • ErmingtonPlumbingMEMBER

      Fran Kelly was as soft as a sloppy sh!t on the Gladys Liu story this mornings The Insiders.
      The whole panel was.
      Establishment toadies and courtiers the lot of them.

    • Paul Howse is a case in point. Massive need to ‘assert himself’ to compensate for all the years of school-yard bullying because he looked like a pig.

      If it looks like a pig, and puts its snout in the trough like a pig……

      • Glad I’m not the only one hates that pigish looking pig. If ever there was an infected haemmorhoid on the anus of Australia that looked like a pig it’s that swollen pustule.

  26. boom is back!

    Good afternoon,

    I thought you’d find this sale of interest. It shows the strengthening of market conditions.

    – In March 2019, 12 Marmion St, Camperdown was listed for auction with another company.

    – The property was withdrawn from auction and was then was placed for sale.

    – The asking price was $1,250,000 and it remained on the market for sale for 73 days until May 2019.

    Last week my brother and I approached the owner of the property and asked if we can take a buyer through.

    Today we exchanged unconditionally for $1,445,000. Almost $200,000 above the asking price only a matter of months ago.

    • No, it’s not a boom according to the MSM report I read, it’s “ONLY” up 2.5% in the last QUARTER LOL

    • Erm, you got a bargain and you are apparently too braindead to see it. Its sitting on 178 sqm and it has dual access. Compare it to 14 Iredale (1.562, 164sqm) and 3 Albermarle ( 1.82, 123sqm). It also looks far easier to renovate than those other two, and going by the street the council will let you do almost anything. If anything what you are seeing is a tailing off of prices, and that property was priced (deliberately) way under what its market value is/was.

      Still, its unlikely that you and your brother will make a profit of a flip because trades etc are so incredibly expensive in the Inner West. Good luck, you’ll need it.

    • Shifty Politician

      So you paid quarter of a million dollars more than anyone else was prepared to offer ?

      You also paid close to double (nearly a million dollars) more than the property sold for in 2009.

      You’re a tard.

    • Mining BoganMEMBER

      Was looking at some old evangelical looking Eddie Hill stuff the other day. Only 30 years since his first sub 5 second run. He’s not 90 yet, wonder if he’s up for a comeback. It’s not like you have time to react to anything.

  27. Jenman article via Martin’s latest: https://www.youtube.com/watch?v=5oRy8LgneCo

    Auction Clearance Rate Lies


    Everyone, other than consumers, seems to be involved in promulgating this false data, especially with auction clearance rates. Not only does the real estate industry deceive the public into thinking the property market is better than the reality, it also misleads the public that auctions are the most successful method of selling property.

    The truth is vastly different from what the industry tells the public and the media. Unfortunately, the deception is now more brazen than ever. If the same level of deception occurred in stock market data, serious prosecutions would occur. Many stockbrokers cannot believe the blatant deception in the real estate industry. “We’d go to gaol if we did what agents are doing,” said one stock broker.

    • Professor DemographyMEMBER

      Point 1. I despise the real estate industry as much as most here.

      Point 2. While the figures are pumped to look better this is done consistently and hence the relative numbers show ups and downs in the market and correlate with price measures.

      Point 3. At some point 2 might cease to be true but lets await that versus just blindly getting worked up about auction rates.

      • Not sure I agree with 2 .Reckon they are desperate and much more inclined to bullshit.They know as does everyone else on the street that something is horribly wrong

      • Had originally assumed there would be some level of consistency with lagging results, but Jenman’s piece suggests that they are simply making it up to suit their agenda.

        “The second major way that auction numbers are fudged is just as brazen. They simply count sales that are not made by auction as being made by auction. Someone buys a home under private treaty conditions and the agents throw that sale in with auction sales. Hundreds of non-auction sales are counted as auction sales.”

        • Professor DemographyMEMBER

          The relationship between clearance rates and prices is shown in charts about once per week on THIS site.

          If these are fake or wrong let’s discuss that specifically.

          • If the clearance rate figures that end up being bandied around the press and on this site are based on deliberate misinformation as Jenman alleges, then such clearance rates be taken with a grain of salt. On occasion posters here have noticed that sold properties may have been included in more than one set of weekly results, but it is harder to disregard when it is someone connected to the industry claims there is similar widespread fraud.

          • Professor DemographyMEMBER

            If we are seeing INCREASED fraudulent clearance data then we would expect the relationship with prices as shown on this site regularly to break apart?

            Unless the price data is equally fudged. But there are a few different sources to check on that.

            I am not arguing the data is high quality but rather it has been historically of enough quality to correlate with prices going down AND up.

      • Shifty Politician

        Ifs its ok with everyone can I submit this post to the “International Gormless Tard” competition held in Upperarmpit next week ?

        Champ – don’t mind if I call you champ do you ? Champ – for anyone, ANYONE (everyone gif) to think the data from Rp, Core Logic etc is not absurdly manipulated they would be well ahead in their training to take out Gold at Upperarmpit next week. You are completely joking with this thread yes ?

        The DAY after the election the data literally jumped 30%. Wow.

        Everyone has been consistently posting reports of houses being declared sold, included in the results, and listed again a week later. Most unsold properties are simply NOT reported. An issue consistently reported here and all over the web.

        The “cleared auction” results from these agencies would have to be amongst the most rigged, absurdly unreliable data available to mankind – on any issue.

        They admit on their own website that they change their methodology – and frequently have changed it so much that the data is worthless as a long term trend (see directly after the election – it was beyond absurd)

        Finally the sheer level of volume is enough to totally discredit the data. Its completely worthless. It is an entirely opaque, completely captured, 100% non-starter and fundamentally rigged.

        Heres a challenge – I own a software development company which specialises in web software – go and start a web scraper on real estate data and post the results and see how long it takes before you are shut down. If you want some idea of the level of collusion and corruption right to the very top of the Australian political economy the response you get should give you SOME indication of just how rigged it is.

        Another tip – watch the AFL finals – almost every second advertisement is Real Estate Dot Com – any idea how much that is ?

        Spare me the faux incredulity – its seriously off putting.

        • Professor DemographyMEMBER

          Do you think the data has increased or changed in dodginess over time?

          If so it can make sense that the relationship to price may break apart. But we must address why the relationship shown consistently even here on this website has existed.

          This shouldn’t be so difficult or tortured to discuss.

        • Heres a challenge – I own a software development company which specialises in web software – go and start a web scraper on real estate data and post the results and see how long it takes before you are shut down. If you want some idea of the level of collusion and corruption right to the very top of the Australian political economy the response you get should give you SOME indication of just how rigged it is.

          Very interesting… I noticed daftdrop has gone and I wondered why? Why is there so little transparency in terms of what properties get listed for vs what they sell for? No website tracks drops in asking prices (that I can find). How can they shut you down? I’ve thought about building a website to track similar, but unsure how to monetise it. I always assumed that’s why they stopped running.

    • The clearance rates are dodgy but in the eastern suburbs of Melbourne prices are back to 2017 levels, probably due to lack of supply. As someone who wants to buy something there, that’s the reality i.e. prices are insane again.

        • Professor DemographyMEMBER

          Many people are just fatigued by these cycles and want it all over and capitulate. Fine thing to call them idiots.

          • Money get away get house with good pay and your okay Money it’s Crash Grab the Money with both hands and make a Stash (No shiny stuff) New Car, caviar, five Star. Think I’ll buy football team Cheap. I’m alright Jack keep your Gluteus Maximus picking Hands of my Stack. PS. I am Cowboy Yea Har lol

      • Have noticed some 4/2/2 townhouses in East Melbourne suburbs being offered around the 900k-1m mark set for October auctions. I can recall a few years ago similar properties were going at 1.2m in adjoining suburbs further from the CBD, so it will be interesting to see what the spring auction season delivers.

        • Professor DemographyMEMBER

          These sorts of interchangeable products will be the clearer tests of the market. Will be interesting.

      • Shifty Politician

        Sorry – this is unmittigated horse fecal matter.

        The suburbs you are talking about have suffered the biggest falls of anywhere. Many down 30-40% or even more. Its just an absurd claim of the most extreme kind.

        I live there – and you are full of it.

        • I live there too. I’m looking at houses only in North Balwyn (East Kew end)/Kew. The ones that I’m very familiar with ~1.2 have gone 200K over the top of their estimate range, but maybe it’s just the ones I’m interested in. And apartments might be a different story.

        • I live there and am actively looking too. You’re wrong shifty, similar properties vs 6 months ago are now 15-20% up approx. Crazy.

      • Maybe not the same suburbs, but close.
        Beaconsfield Parade, – 3 bedroom apartment built about 2000; one of 24, across the road from the beach with no issues, current vendor paid $650k in 2007, hoped for $ 1.2mio. Highest bid? $750k. (quite a few at the auction – mostly to see what it went for, I guess). Last vendors bid at $1.1m, now For Sale at $1.2m. Good luck, is all I can say!

        • Mining BoganMEMBER

          Let’s use the word delusion shall we? A vendor bid 47% more than the highest bid. Did the vendor expect everyone to admit that they’d mistakenly priced it too low and would correctly reassess the value?

          This country…

      • +2 Andrew, same boat here in eastern suburbs Melbourne. Absolute mania is back on, prices going for pretty much the peak again. I’ve calculated a few, it’s a jump of 15-20% in the space of 4-5 months. Depressing.

    • Mining BoganMEMBER

      There’s been properties I’ve watched for at least six months in NSW and Vic just waiting for a moment of weakness. They’ve all sold in the last two to four weeks. This garbage is back on. Mostly price withheld…embarrassing to admit you didn’t get what you wanted…with the others going about 5% below asking.

      My guess is the others watching don’t want to take the chance if prices escaping out of reach again. 800+ gorillas for retirement towns with limited work opportunities and limited services. What a time to be alive…wait, that’s gone now…how good is debt slavery…

    • Not if it was a basic service (health, education, welfare, etc) or a natural monopoly (airport, port, power, titles office, etc).

    • If anyone else asked that, you’d sigh and ponder the naivety of the question but given bit was you MB, it was framed with acidic cynicism.

      • Mining BoganMEMBER

        There’s a bit of guilt there actually. I was asked recently to go in to bat for someone being tortured by this garbage but I had to say no because my negotiation style of calling a moron a f#cking moron isn’t good when others could get caught in the collateral damage.

        They’ve got better help than me now anyway but it isn’t helping much. The system is a well designed nightmare to force the disadvantaged into suicide. Dead people don’t claim welfare.

    • Classic cognitive dissonance Gav.

      I read about a psychological study in the US where they talked to people who lived downstream from coal mining tailings dams in the mountains. The closer people were to the dams (ie right underneath them) the LESS they claimed there was any danger, and the more certain that the dms were sound, well engineered etc.

      It’s what our brains do so we can sleep at night. We blank over facts to fit a narrative that suits us.

      Beware. Especially (I expect) off the plan apartment owners…!

  28. ErmingtonPlumbingMEMBER

    “coming out as non-binary will inspire anyone else out there who may have heard of them and is battling under the weight of their own inflated ego, to embrace their narcissism as if it were a sexual orientation. After all if we are unable to love ourselves, how can we be expected to be able to tell everyone else what is right and what is wrong with any sense of sanctimonious certainty?

    I have added my pronouns (HE/HIM) to my Twitter bio in solidarity with those whose sense of self-importance must at times be so overwhelming they find it difficult to talk about the complexities of their gender for hours at a time…but by Cthulhu, they still manage it, because they are not going to let the callous ignorance of bigotry win. Very much like being vegan, being non-binary appears to require the person in question to inform anyone within earshot of their chosen pronouns and lecture them in great detail on the emotional turmoil they once endured when some bigoted guy at the McDonald’s Drive-thru window refused to address them as ‘Zir/Zem’, so they demanded to speak to their superior and eventually, after making a song and dance on social media, got him fired. It must be exhausting. Imagine having to sustain that level of self-absorption for any length of time.

    Yes, there is no doubt that being non-binary takes an enormous amount of effort. You have to choose a set of pronouns after obsessing for hours over your identity, educate bigots, decide whether or not to change your pronouns after finding out one of your friends has adopted a set of pronouns that are more exotic sounding than yours, educate more bigots and so on. Emos once thought they had it bad, which is utterly laughable these days.”