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Bill Evans: RBA still to cut, with QE to follow

Via Bill Evans at Westpac: The Reserve Bank has released its quarterly Statement on Monetary Policy (SMP). The two key areas of most interest in the Statement are around further policy insights and the RBA’s growth, unemployment and inflation outlook. The discussion on policy was particularly interesting. The Overview for the Statement, which we expect


Globalists rejoice: Bloomberg to challenge Trump in 2020

Via the NYT: Michael R. Bloomberg is actively preparing to enter the Democratic presidential primary and is expected to file paperwork this week designating himself as a candidate in at least one state with an early filing deadline, people briefed on Mr. Bloomberg’s plans said. Mr. Bloomberg, the former New York City mayor and billionaire businessman, has


NSW Treasurer signals stamp duty land tax switch

With NSW’s stamp duty receipts sinking like a lead balloon: NSW Treasurer, Dominic Perrottet, has called for tax reform, including the elimination of inefficient state taxes like stamp duties, to spur growth: Given that the NSW government is already building almost as much infrastructure as the market can handle, slashing taxes for business and homebuyers,


Laundered Chinese money gushes into Australian property

Earlier this year, billionaire Huang Xiangmo’s permanent residency was cancelled for reasons including character grounds. Today, The AFR has published a detailed investigative report on how Huang Xiangmo laundered money through Australian real estate to buy political influence: Huang Xiangmo, the Chinese billionaire at the centre of a NSW corruption inquiry and tax office investigation,


Dalio: Fix wealth inequality or face “violent revolution”

Via the Hartford Courant: Two hedge fund founders on Tuesday called for the reform of capitalism to combat economic inequality and stem political upheaval. Before a crowd of about 200 at the Greenwich Economic Forum, a two-day alternative investment industry conference, Ray Dalio, founder of Bridgewater Associates, and Paul Tudor Jones, founder of Tudor Investment


“Double agent” Gladys Liu bought electorate with own cash

Her own cash says The Australian: Embattled Liberal MP Gladys Liu personally poured at least $100,000 into her campaign at the last minute to win the marginal Melbourne seat of Chisholm after being told she didn’t qualify for a significant cash injection from the party. Ms Liu donated a “six-figure’’ sum to her own campaign


Perth property’s triple crash

October was a very bad month for Perth’s housing market, with the latest data on dwelling values, dwelling construction and dwelling rents all posting ongoing falls. Consider first Perth dwelling values, which have now fallen by nearly 22% from their June 2014 peak, after falling another 0.4% in October: Western Australian dwelling construction also continues


Cannon-Brookes attacks Fuhrer Morrison

Every modern nation needs good billionaires to fight evil ones. I have my issues with Mike Cannon-Brookes and the Atlassian cheap labour arbitrage model but on climate change he’s excellent, via David Crowe: “The people protesting over climate change are not quiet Australians. They are being loud because the government is quiet on the climate,”


Recessionberg has crashed the economy

L-plate treasurer, Josh Recessionberg, has done the near impossible and crashed the miracle economy. When he assumed the role of Treasuerer, Recessionberg made a critical misjudgement that if he follwed the Costello recipe of running surpluses, cutting taxes and stuffing in migrants then he’d force the RBA to ease, and rising house prices would boost


International students at schools is “privatisation by stealth”

Two month ago, the chief lobbyist for the International Education Association of Australia (IEAA), Phil Honeywood, demanded Australia’s public high schools boost enrolments of international students: Australia should be recruiting more international students to attend its high schools and marketing its school curriculum to overseas international schools more aggressively, according to the International Education Association


Joye: RBA QE to buy RMBS

From Chris Joye today: After three years of inertia, a new intellectual paradigm has emerged from within the Reserve Bank of Australia. It has gradually taken form in speech after speech from the governor, Phil Lowe, and his acolytes. And its increasingly lucid logic rubbishes the concerns of critics worried about the consequences of extremely


Bring on the Aussie Brexit

Lowy Institute’s Sam Roggeveen does a shockingly arrogant job on an Aussie Brexit today: There are strong parallels between Australian politics and the chaos witnessed in recent years in Europe and the United Kingdom. My contention is that in Australia, immigration – a long-running point of domestic controversy with profound consequences for foreign policy –


Why do wage ‘mistakes’ always benefit the employer?

Crikey’s Bernard Keane has torn apart the claims by employer groups and senator David Leyonhjelm that the complexity and inflexibility of awards is behind the spate of wage theft ‘mistakes’: Even as Woolworths was preparing to acknowledge yesterday that it had stolen the wages of nearly 6000 of its employees, it was getting its defence


King Scott to ban climate protests

It’s all about free speech with the Coalition so long as it doesn’t upset their mates: Scott Morrison has flagged new laws to crack down on activist protesters who target mining businesses, declaring “absolutist environmentalism is testing the limits of the right to protest”. The Prime Minister will use a speech to the Queensland Resources


Angry China lashes Australia for being decent

Via the ABC: China is warning Australia to avoid straining bi-lateral relations following criticism from Australia’s Foreign Minister Marise Payne on China’s human rights record. During a foreign policy speech in Sydney on Tuesday, Senator Payne said Australia would continue to advocate for democracy and human rights in China, adding that staying quiet on sensitive


David Leyonhjelm’s recipe for low-wage serfdom

Senator David Leyonhjelm has penned an article lambasting the moral panic over ‘wage theft’ and prescribing a policy of full labour market deregulation: The [wage theft] issue originates in Australia’s absurdly complex industrial relation system, with its mess of awards and agreements barely changed from the middle of the 20th century… What this “crisis” reveals


Investor mortgage growth crashes into negative

The Reserve Bank of Australia (RBA) has released its private sector credit aggregates data for the month of September 2019: A chart showing the long-run breakdown in the components is provided below: Personal credit growth (-0.7% MoM; -1.4% QoQ; -4.4% YoY) has plunged, whereas business credit growth (0.4% MoM; 0.9% QoQ; 3.3% YoY) and housing


Deep within Home Affairs pornopticon, Dutton likes to watch

From deep inside the Home Affairs pornopticon, Peter Dutton likes to watch, via ZDNet: The Department of Home Affairs is hoping to use its Face Verification Service and Document Verification Service across the economy, and is backing its use for age verification for Australians to look at pornography. Writing in a submission to the House of Representatives


Dr Doom hoses MMT

Via Nouriel Roubini: With the global economy experiencing a synchronized slowdown, any number of tail risks could bring on an outright recession. When that happens, policymakers will almost certainly pursue some form of central-bank-financed stimulus, regardless of whether the situation calls for it. A cloud of gloom hovered over the International Monetary Fund’s annual meeting