Is Bitcoin becoming subprime?

It’s not been a good start to the year for cryptocurrencies, with Bitcoin halving in price from its November 2021 high to below $33,000 last month and barely moving since. Other crypto’s have suffered a similar fate, with second most traded Ethereum also losing half its “value” in recent months. The powers-that-be are coming after


Bitcoin squeezing out other cryptos as it zooms higher

The number of memes around financial assets – and their cryptozoological Frankenstein cousins – continues to mount as the world’s central bankers unleash as many acronymic “easing” programs they can to arrest the COVID economic depression. HODL was the classic one for Bitcoin, as it crushed under the weight of its first bubble in late


MB Radio: A podcast of gloomy disposition

  With the sheer enormity of the COVID19 pandemic’s economic impact only starting to dawn, David Llewellyn Smith and Leith Van Onselen spoke with Gunnamatta on the major forms the shock has taken through the Australian economy.  Over the course of about 75 minutes (3 parts) they cover the ugly numbers and the dynamics across


More calls to ban crypto as Bitcoin leaps again

by Chris Becker Here come the regulators. From the Guardian: The UK’s markets regulator has proposed a ban on financial instruments linked to digital cryptocurrencies such as bitcoin, warning that such products could cause huge losses for retail consumers unlikely to understand their risks or value. The Financial Conduct Authority (FCA) said products such as derivatives and


Spending more on defence won’t save Australia from China

by Chris Becker Should Australia “dramatically increase military spending” due to the temporary perceived unreliability of Trump’s Presidency and hence the collective defence of the continent? From the ABC: Former Defence Department official and intelligence analyst Professor Hugh White said he believes China’s inevitable rise as this region’s dominant power means Australia must urgently rethink


Jacob Greber kidnapped by aliens!

We are sorry to report that the AFR’s US correspondent has been kidnapped by aliens and felt the cold kiss of a rectal probe today: Australia’s treasurer hunkers on the top floor of his department’s Langton Crescent HQ in Canberra putting final touches on the government’s finances. …The reason? Inflation has reappeared, seemingly out of nowhere


Here’s a Black Swan for ya: Trump does MMT

The Economist tackles MMT today: That perspective is not always clear; there is no canonical mmt model. But there are some central ideas. A government that prints and borrows in its own currency cannot be forced to default, since it can always create money to pay creditors. New money can also pay for government spending;


El-Erian nails MMT

Via Bloomie comes Mohamed A. El-Erian on MMT: The current window for the MMT debate has been opened by the protracted period of reliance on unconventional central bank policies that has followed the global financial crisis and the European debt crisis. Despite the initial concerns expressed by some economists, this period of ultra-low interest rates and ballooning


The trouble with Alan Kohler and MMT

At The Australian today comes Alan Kohler hosing MMT: The trouble with modern monetary theory (MMT) is that, as with fiscal policy generally, it would be run by politicians, and we’ve only fairly recently managed to prise monetary policy away from them. …monetary policy looks exhausted, at least in terms of stimulating real activity and


More economists with balls needed

by Chris Becker From the bowels of Ross Gittins comes “Positions vacant: the nation needs economists (women preferred)” Never in the field of economic conflict was so much analytical effort devoted to so few… as in Reserve Bank governor Philip Lowe’s one-man crusade to save the economics profession. This latter-day Lord Kitchener wants more young


Ray Dalio: capitalism isn’t working

by Chris Becker It’s always interesting to hear mega-capitalists complain about the very system that provides them opportunity to turn their talents into Scrooge McDuck size piles of cash. Furthermore, it’s usually the most successful that have the most liberal of views and Ray Dalio, head of hedge fund Bridgewater, has weighed in again. From CNBC:


The paradigm now shaping our world’s digital cities

Cross posted from The Conversation: by Davina Jackson Honorary Academic, School of Architecture, University of Kent Today’s smart cities rely on networks: squillions of semiconductor devices that constantly pulse electromagnetic waves (light and radio frequencies) through telecommunications satellites. Data Cities, by the author. Lund Humphries (2018), Author provided Another genre of satellites, equipped especially for Earth


ABC goes gaga for Modern Monetary Theory

Trust the ABC to  like this idea: The radical idea of offering every person a government-funded job is finding new supporters in Australia as proponents claim it could eliminate unemployment overnight. US economist Stephanie Kelton, who served as Bernie Sanders’ economic adviser during the 2016 presidential campaign, is currently touring Australia to promote the concept


Why Trump tax cuts failed

From Paul Krugman: The answer, I’d argue, is that business decisions are a lot less sensitive to financial incentives — including tax rates — than conservatives claim. And appreciating that reality doesn’t just undermine the case for the Trump tax cut. It undermines Republican economic doctrine as a whole. About business decisions: It’s a dirty


The problem is not neo-liberalism, it is neo-feudalism

Former RBA boss and blood-sucking banker, Bernie Fraser, is having a whinge today: Neoliberalism has caused “misery and social polarisation” yet remains in vogue with the Coalition government, according to the economist Bernie Fraser. The former Treasury secretary and Reserve Bank governor has made the comments in a presentation circulated to participants of the Australia


A statistical rival for Anscombe’s quartet

Quantitative and statistical models are extremely useful in investing. But they are guides, not gospel. Forgetting there are real consumers behind the sales numbers and real companies beneath the profit numbers is the first step to an investment model that is going to fail when you need it most. There is a reason you never


A walk through the RBA Chart Pack

by Chris Becker As a chartist, this is my favourite release by the RBA – it’s Chart Pack time! Let’s go and unpack what the boffins at Martin Place have done on their etch a sketches.. First some global GDP, inflation and Chinese economic activity. Worldwide GDP is tracking at 4% – nice and smooth


Musk looking to privatise Tesla

by Chris Becker Elon Musk has “surprised” the market by laying out a tentative plan to privatise the currently publicly listed Tesla electric car/solar energy company with a $420 per share price offer. Shares lifted nearly 11% to finish at just below $380 per share in response, following a similar surge after the Q2 earnings


Macrobusiness Chartfest 12 May, 2018

AUSTRALIA Australian Federal Government Balances since Federation – note the 50s & 60s, our government is looking to debt load and dissipate with population ponzi again. Australian government debt to GDP – we have driven it higher to bloat property prices and trash our education sector, while exporting the non-mining or agriculture external facing sectors


The end of middle management

Cross posted from The Conversation: by Massimo Garbuio, Senior Lecturer, University of Sydney and Nidthida Lin Senior lecturer, University of Newcastle The trend of “flat” organisations is catching on at some of the world’s biggest companies. It’s easy to see the appeal when you think of a utopia where everyone in an organisation has a


Bitcoin volatility is normal – for Bitcoin

As the Aussie dollar makes new highs, going through 79 cents against USD, Bitcoin and other cryptocurrencies have sold off once again. It doesn’t take much for the volatility to spike with news – rumors actually – that the South Korean Government is flagging a potential a ban on cryptocurrency trading, sending bitcoin prices down over 20%


Will Bitcoin follow the silver 1980 bust?

Bitcoin mania has similar parallels with the epic silver bubble of the 1970s: Silver went through a huge bubble, moving from $6 to nearly $50USD per ounce in just over a year due to the Hunt brother’s cornering of the market. At the peak they owned one third of the world’s supply. Sound familiar? The


A closer look at the latest RBA Chart Pack

The RBA has released its latest monthly Chart Pack. Here are some interesting visuals to consider going into next month’s meeting: First up, looking abroad where the G-3 economies continue to have flat wage growth but modest unemployment figures since the GFC: Headline inflation is also still flat below 2%, but rising from the 2015