Links 8 November 2019

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Unconventional Economist

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 Unconventional Economist (see all)

Comments

  1. I would just like to point out to millenials who are all keen to go “OK boomer”

    Gen X are in between, right.

    We’ve been fvcked for decades, and it looks like we should have ODd when we were 27, like our contemporaries.

    Point is Gen X aint boomers.

    • There is an ongoing misinformation paradigm here. The problems have nothing actually to do with age groups. The problems are around productive and non-productive; around contributors and takers; real workers and parasites.
      A reasonably large sectors of boomers were shafted well and truly by the system. The fact that, as a generation, those Boomers getting shafted were far outnumbered by the Boomers on the take – so the system was continually reinforced by those numbers and continually distorted to benefit those.
      Did Boomers on the take virtually bankrupt the country and screw future generations? Yes!True! Are the policies and values espoused around MB designed to reverse the distortions favouring the non-productive? NO! Generally what is proposed, both here and pretty well everywhere else – universities, Treasury, RBA Banks et al, are guaranteed to make the current gross distortions even worse.

  2. Well worth the time to read
    https://www.smh.com.au/politics/federal/liberties-for-the-chosen-ones-what-and-who-do-morrison-s-liberals-stand-for-20191107-p5389j.html
    I especially liked the following paragraph.

    “Choosing not to do business with companies that threaten the health of the planet is everyone’s basic right,” Cannon-Brookes said this week. “It’s a way to get business to do the right thing, because we are all accountable.”

    Do the Liberals and Nationals really need this reminder of what the free market means? They have just been shamed by a billionaire who lives in a free market they only know from books.

    Having worked at several startups I have to agree it’s a lesson in free market mechanisms that’s not for the faint of heart. It’s a fundamental tenet of startups that if you can’t run faster and jump higher than you definitely belong in the lions jaws this destruction of the weakest is the force that delivers both labour and capital to the strongest players.

    • The Traveling Wilbur

      Well, yes … but there’s also being ‘allowed to operate’. E.g. all the companies with actual experience in grants administration were denied that opportunity when the contract for that was awarded without a tender to a call centre operator.

      Politics comes into those jaws right there.
      And over almost all of the Murray darling.
      Politics. Politics and mates.

      Wonder how that half a billion saving the reef thing is going.

      • I don’t understand your critique
        Nobody ever said that participating in corrupt practices wasn’t “a nice little earner” for everyone that is involved
        Startups on the other hand are pure capitalism with a hefty dose of Libertarianism. Startup’s in a way deny they owe anything to the society that did the hard yards developing the valuable (marketable) skills these individuals have so starting with zero social debt they shoot for the moon. Success means jobs for many that never existed before and money flow that’s new to teh economy…that’s not the same as corruption.

        • The Traveling Wilbur

          The examples I gave illustrate a couple of ways where the snark-like free market isn’t allowed to operate as one. Free market? We may as well discuss the merits of a merit based promotions system in the public service, or what individualised communism or an Australian’s *right* to free speech are.

          None of these things actually exist. Was my point. Doesn’t contradict your original one, just adds dimension to what does ‘free’ mean.

    • Great article actually, I particularly liked:

      When Peggy Noonan remembered her time as speechwriter in Ronald Reagan’s White House, she had no trouble listing the president’s convictions. Here is just one. “He believed that government out of control is the main threat to individual freedom in the modern world.”

      If Morrison needs a lighthouse in rough seas, those words might help him find the way.

      • They’re All already out of control! They’re no better than weather vanes whiplashing in their own turbulent winds. The sooner they all unscrew & blow into oblivion the better.

  3. https://www.macrovoices.com/736-macrovoices-192-keith-mccullough-inflation-accelerating

    Erik Townsend and Patrick Ceresna welcome Keith McCullough to MacroVoices. Erik and Keith discuss:

    Q4 2019 Macro themes–What is next?
    Inflation or stagflation – is time to own gold?
    What is next for the Chinese economy?
    Outlook on US dollar
    Equity markets – FOMO vs. deteriorating earnings expectations
    Perspective on the market melt up
    Labor share of income and corporate margins
    Long short pairs trade in software industry

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