Comments on: Government Stimulus Can Only Provide Short Term Boost to One Area of Economy

By: Peter Fraser

Peter Fraser — Sat, 12 Dec 2009 23:42:59 +0000

Nick you said “Skin cancer is not increasing because of the sun”

What other scientific gems do you have to offer the debate.

By: etch

etch — Fri, 11 Dec 2009 11:32:38 +0000

http://www.youtube.com/watch?v=8K9dgqKmJ50&feature=related

By: etch

etch — Fri, 11 Dec 2009 09:37:58 +0000

USA’s economy & greenback is predicted to capitulate in the late first quarter of 2010 12 weeks??????????

its way too far in debt to regain
its gone no turning back,USA is bankrupt totally & its gonna take the whole financial world with it into a depression
this weekend in melbourne is the highest record of house auctions to be held almost a billion dollars worth
the rats are jumping off the ship selling out whilst the goings still good ……..
wat u think?????????

By: Nick

Nick — Fri, 11 Dec 2009 06:55:45 +0000

Cb…I know that when you are dealing with a “mob” in a frenzy all rationale goes out the window.
Starting about 1995, I was telling my clients in the hi-tech industry not to worry about “the millennium bug”. It cannot work the way they were portraying it to work. Due to the hysteria of the time I had a better chance of stopping the tide than convincing anyone that millions were wrong and little old me was right. In the end, who was right???
Skin cancer is not increasing because of the sun…it is because of the massive amounts of sunscreen product people lather themselves (and their children) with. The chemicals in those products react with UV and hence cause the cancers. Worse today, because they are now using nano technology which enters the skin causing more damage, even to the kidneys.
The social engineers are well aware of the power of persuasion and are applying it very effectively. The climate change argument may seem a long way away from the economic topic but it is NOT. It is all cleverly related and unless people understand the broad picture and the lengths the political cartel are prepared to go to to achieve their agenda, they cannot fully understand the topic. Without exception, all the topics discussed on this forum cannot be fully understood or explained, until you pull back the focus and see the greater scheme. Once you do that then it all starts to make sense and follow a pattern. This is why it can never be solved while people remain in the dark. Your super, your savings, your pension, your real estate, your children’s futures all will be influenced by this grand social engineered scheme. Trying to work out a timing for it is futile as it will happen when they are ready for it to happen. All one can do is begin preparing for the worst and paying for the better.

By: cb

cb — Fri, 11 Dec 2009 05:07:34 +0000

Haven’t we been told that the science is settled? Maybe Rudd, Wong and Turnbull, oh and Flannery, should read about this one:

“Climategate: rounding up a posse – at gunpoint
Andrew Bolt – Friday, December 11, 09 (06:17 am)

Britain’s compromised Met Office is rounding up people for a petition to pooh-pooh the significance of Climategate. No relevant qualifications are required, and no inquiry beforehand is needed. Oh, and if you don’t sign….

One scientist told The Times he felt under pressure to sign. “The Met Office is a major employer of scientists and has long had a policy of only appointing and working with those who subscribe to their views on man-made global warming,” he said.

By those standards, these 1700 signatories are outvoted by the 31,000 scientists who freely signed this:

‘There is no convincing scientific evidence that human release of carbon dioxide, methane, or other greenhouse gasses is causing or will, in the foreseeable future, cause catastrophic heating of the Earth’s atmosphere and disruption of the Earth’s climate. Moreover, there is substantial scientific evidence that increases in atmospheric carbon dioxide produce many beneficial effects upon the natural plant and animal environments of the Earth.’”

http://blogs.news.com.au/heraldsun/andrewbolt/index.php/heraldsun/comments/climategate_rounding_up_a_posse_at_gunpoint/

By: cb

cb — Fri, 11 Dec 2009 04:52:49 +0000

Thanks, Nick. As for that wild and seemingly unbelievable scenario, the fact is that it has been done before, and it will be done again. The pipe dreams, the debts, the massive misallocations of resources are all getting bigger and bigger, and it will not be a pretty sight if, and when, this baby finally sh!ts itself.

By: Nick

Nick — Fri, 11 Dec 2009 00:50:17 +0000

Puntpal & cb…you both have very valid points.
Puntpal… I agree that if interest rates remain low it only serves to encourage the sheeple to “jump in” without thinking and basically accumulate further debt. We must remember that we are living in a generation who know nothing else but debt. “I want it now, I pay for it tomorrow..with interest”. They will only change if they have to.
At the same time, true savers suffer.
This can only be curbed by authorities tightening the screws. Forget Rudd, he is too consumed in self interest. That’s why when he gained power, he sack a large chunk of the advisory staff and replaced them with PR staff…a professional smoke screen if you like. So it leaves only the RB to turn the taps.
Cb… as for business and export? I’m involved with both and believe me I know the damage it is causing. I also have very good friends on the land who have reached the point of revolt. In NSW there are farmers who have gone through the hoops to have a couple of tree removed only to find out a short time later that Chinese mining interests have been given the OK to dig up highly fertile land (same land that the farmers could not remove trees) just to do exploratory work to see if there is paydirt there. Strangely this involves removing far more trees that the farmer asked to remove…plus fertile land???
I was told many years ago that the plan was that one day they will zoom in on those who have more bedrooms than there are occupants in the house and allocate other families to co-live in those houses with the owners. Basically, you will not have control of your own dwelling. Seemed farfetched at the time, but I am now older and wiser with 360 vision and am not so adamant in dismissing this theory. Conspiracy theory? I guess it is until it comes true. Until then it’s just a conspiracy theory.

By: cb

cb — Thu, 10 Dec 2009 23:41:56 +0000

I don’t know, PuntPal. Maybe you are right on some aspects of this whole sorry saga. The problem aspect I am focusing on is that every $ an indebted household is forced to pay in higher interest, is a $ less that can be put towards paying down the debt. Same with the high exchange rate killing off exports while rolling out the red carpet for more imports, and the list goes on and on.

By: PuntPal

PuntPal — Thu, 10 Dec 2009 22:00:31 +0000

But cb, the housing bubble is not some benign side aspect of our economy. Besides our commodity exports, it is our economy! And because it is unsustainable and because so many people owe so much money, it cant be ignored or postponed any longer

I disagree that we have bigger issues to worry about then our house prices. This is probably what Americans were saying in early 07

Our unemployment is not an issue and due to artificial stimulation, our economy is now going fine…apparently.

So this is the time we should be paying down debt and letting some house price deflation. You don’t want the banks to have it so good, don’t you realise they are the main beneficiaries from this housing boom. The more people have to borrow, the more interest they pay to the banks, the more profit the banks make. It is that simple.

Now if GS didn’t raise rates, then people would be given the sign that interest rates will remain low indefinitely and rather than deleveraging (which is clearly what is needed) people would keep piling into the market.

As you said, the RBA is there to maintain financial stability. It seems GS believes (and so do I) that a continuation of the housing bubble is only going to make Australia more vulnerable to an external shock (carry trade ends, sovereign default crisis somewhere in the world).

Right now – interest rates increases of a minor nature will do the trick. It will decrease the amount of Ponzi speculation on Aussie houses and in the long-term we will look back at this move as the one smart thing the RBA have done during this whole GFC.

By: cb

cb — Thu, 10 Dec 2009 12:47:45 +0000

PuntPal, that is one way of looking at it. Another would be this:
1. We have bigger problems to worry about than high house prices, such as the maintainance of employment and economic prosperity in the country.
2. It is not part of the mandate of the RBA to worry about house prices. Their mandate is this:
a. Maintain the stability of the AUD.
b. Maintain full employment and the economic health of the nation.

On the first score, the RBA is an abject failure. Just have a look at where the AUD has been over the past decade, or even over the past 12 months. The AUD has been more like a Yoyo, making it a roller coaster ride for anyone trying to run a business, especially if your business is affected by the exchange rate.

On the second score, while the RBA is trying to lean against house prices with higher and higher rates, it is driving up our exchange rate, which neuters our export income and domestic businesses and the jobs they offer are driven out of business, or driven offshore, exporting our jobs and factories.

And we haven’t even touched on what higher and higher rates are going to do for a heavily endebted nation and economy, such as ours. But, hey, the bankers will not be denied. They never had it this good.