The propertocracy has won another round in the policy fight. Not courtesy of the blood-sucking interests. Rather via the hand of those that set out to end it and instead succumbed to its corrupt siren song.
As Labor gives up on property tax reform, any and all reform actually, the thirty-year Australian property bubble once again has the full support of both political parties in Canberra.
Anthony Albanese has proved himself every bit as empty as Scott Morrison. He cares not for good government nor policy processes. He cares about power for its own sake.
I suppose it was inevitable. Every rule that ever got in the way of the propertocracy has been broken and burned.
It started with John Howard and his tax deformations plus first home buyer grants. It was entrenched by Kevin Rudd and his GFC bailouts for leveraged borrowers and banks. It was bedded down by Scott Morrison with his fear campaigns.
At every juncture, we might have turned back but instead chose the destructive path of property.
Once curious humans capable of great innovation of global engagement, Australians are now incurious debt-slaves easily spooked by the slightest rise in interest rates.
Once competitive animals, Australian banks are now bloated public tics fastened to the financialised flesh of a formerly diversified Australian economy.
We bent the rules for them in the GFC. We broke them in the pandemic. They are now quietly nationalised institutions without the inconvenience of paying any price for it. How else can they trade on stock market multiples double that of the US or Europe?
Any disruption to their businesses will be immediately backed by massive fiscal and monetary support henceforth. At the zero bound there is no other choice. The central bank must print money and give it free to the banks to lend or they will go out of business.
Sadly, this is not the end of the blood-letting. Ahead are negative interest rates that are effectively you paying the banks to lend mighty mortgages.
Finally, although Australians and the economic elite clearly understand the damage done by the great immigration development model, it will be restored no matter who is in power henceforth. If Labor wins the next election, its reform wastrel treasurer, Jim Chalmers, will restore immigration with just as much gusto as any Coalition government.
It will be done for the propertocracy.
And this is where the choices narrow for Australians. Given there is no upside for workers in voting for Labor, the only choice ahead is which form of propertocracy do you prefer.
We can have the honestly corrupt carpetbaggers of the Coalition who don’t pretend to do anything but rort the nation. Or we can have the frauds of the Labor Party. The wolves in sheep’s clothing that will sell whatever policy they need to gain power.
This brings me to the squillion-dollar question. Ask yourself this, if an Albanese opposition is capable of selling out workers in exchange for the keys to the Lodge, what is it capable of doing in power when China brings the heat and threatens it in the future?