Tag: economy

We need truth and facts – not lies and spin – » The Australian Independent Media Network

Despite the slagging off at Labor by the Coalition, simply because of debts accrued to maintain the economy through an unexpected crisis – namely the GFC – the Coalition now finds itself in the same situation through COVID-19, and has to go down a similar path. Have they done as well as Labor did? NO! Why not?

We need truth and facts – not lies and spin – » The Australian Independent Media Network

Coalition plans on track — corporate slice of the nation’s pie hits all-time high

The process of shifting wealth and income from the poor and middle to the rich continues apace. Alan Austin examines the latest national accounts. FOR THE FIRST TIME since 1959, when Australia first published detailed national accounts, the share of all income going to corporations has risen above 30%. Simultaneously, the share for employees has fallen below 50% for the first time ever.

Coalition plans on track — corporate slice of the nation’s pie hits all-time high

Turning a blind eye: Trump missed the chance to make the economy great

Donald Trump's economic record is not as stellar as he would have you believe.

a familiar talking point for Trump, who returns often to the theme of how much he juiced “the greatest economy that we’ve had in our history, the best.” Donald Trump’s economic record is not as stellar as he would have you believe. Donald Trump’s economic record is not as stellar as he would have you believe.Credit:AP None of those historical claims are true. In his first three years, he wrought slightly less employment growth than his predecessor did, the same gross domestic product growth, slightly better stockmarket growth and the same wage growth. Before the pandemic, Trump’s economic record was unremarkable for a 21st-century president, even though he was able to enact a large amount of the agenda he ran on in 2016, and even though he enjoyed what by one measure was more supportive policy from Congress and the Federal Reserve than any president in a generation.

Turning a blind eye: Trump missed the chance to make the economy great

A Hurricane, a Pandemic, and Trump: The Triple Crisis Is Barreling Down on Florida – Mother Jones

Jonah is at home on the SS Florida the Whale is waitng in antcipation (ODT)

Florida accounts for 10 percent of the country’s COVID-19 cases, with almost half a million cases and already 7,021 deaths. Fifty-one hospitals have run out of ICU beds as the state still is adding another 9,725 new cases on average a day. The hurricane has only contributed more chaos to the equation. State-run coronavirus testing sites have closed on Florida’s eastern coast in anticipation of the storm (originally, the state considered consider closing all of its testing sites before Isaias changed tracks). And hospitals also must plan for the worst. Florida Governor Ron De Santis said he doesn’t “anticipate hospitals needing to evacuate patients.” But one small hospital in Brevard County, which is in the anticipated path of the storm, already has moved its COVID-19 patients. The state has had to stockpile supplies in preparation, including 20 million masks, 22 million gloves, 10 million gowns, 1.6 million face shields, 270,000 coveralls and 20,000 thermometers, while ensuring there are generators for nursing facilities should the power go out.

via A Hurricane, a Pandemic, and Trump: The Triple Crisis Is Barreling Down on Florida – Mother Jones

How Trump broke America: Economy plummets historic 33%, Covid Deaths at 1500/ day, and 40 mn could lose Homes

Trump declares this a historic rebound by the best President ever and he’s your’s America. (ODT)

via How Trump broke America: Economy plummets historic 33%, Covid Deaths at 1500/ day, and 40 mn could lose Homes

Old Dog Thoughts- Ch9 took over Fairfax the heat is really on to get rid of the ABC and blinker Australia.

Fighting Fake News with REAL,22/6/20 ; The unrelenting attacks on the ABC ar intended to Blinker Australia; What you won’t find ina Murdochian World; You don’t grow an Economy without Spending $$ but on what is important;

The secret behind the booming stock market in the face of the coronavirus crisis – ABC News

Australian currency is seen next to a wages graph

American Economy is in Intensive Care (ODT)

But with rates now at zero, money printing — or quantitative easing as it is called in polite circles — is all they have left.

It’s cash that’s being created out of thin air.

And a huge portion of it is being poured straight into stock markets regardless of what is happening out there in the real world.

The graph above tells the story. In the past few months, America’s central bank has bought more than $US3 trillion ($4.37 trillion) worth of “assets”.

These include US government debt, mortgage debt and other debt securities, using cash it has generated out of thin air, simultaneously driving interest rates down and flooding the economy with cash.

It has spent more than double the amount outlaid at the height of the global financial crisis. And, it appears, we’ve only just begun.

The biggest side effect, however, is that wealth becomes more concentrated among the already wealthy.

If you own a house or stocks or bonds, you’ve become rich without even trying.

 

via The secret behind the booming stock market in the face of the coronavirus crisis – ABC News

Sweden Is Not The Model, by Paul Craig Roberts – The Unz Review

What is Herd Immunity and How Can We Achieve It With COVID-19 ...

Others tauting the “open” Swedish model ignore that according to the Swedish Riksbank de facto the Swedish economy is closed. Sweden has experienced a sharper drop in first quarter GDP than the US, with the Swedish economy down 11%. The Riksbank’s estimates are a 70 percent decline in restaurants and cafes, a 90% decline in cinema, sports, and other crowd events. a 40% decline in car sales, a 23% fall in exports, a 30% decline in shoes and clothes purchases, a 75% drop in Swedish recreational travel.

The “open” Swedish model is a bet on herd immunity which at our present state of knowledge is merely an assumption.

President Trump and the neoconservatives are determined to blame China for manufacturing the virus in the Wuhan laboratory despite the fact that the US knew about the research and contributed to its financing, which was approved by Dr. Fauci himself. So when Trump and the warmonger neocons point at China the finger also points at the US.

Sweden Is Not The Model, by Paul Craig Roberts – The Unz Review

Old Dog Thoughts- We need to save the News. We need the ABC. Restore the Cuts & revive Aunty so she can breathe

www.gstatic.com/tv/thumb/persons/86836/86836_v9...

Fighting Fake News with REAL 21/4/20; What over half Australia thinks; People vs the “Economy”; You can have both an Economy for people; COVID & The News; Miriam’s Trump;

Sweden Is Right. The economy should be left open, by Mike Whitney – The Unz Review

Democratic Socialism practices trust in Individuals (ODT)

What the Swedish experiment demonstrates, is that there’s a way to navigate these unprecedented public health challenges without recklessly imposing police state policies and without doing irreparable harm to the economy. And, yes, the results of this experiment are not yet known, but what we do know is that most nations cannot simply print-up trillions of dollars to counter the knock-on effects of bringing the economy to a screeching halt. These countries must dip into their reserves or take out loans from the IMF in order to recover from the lack of production and activity. That means they’re going to face years of slow growth and high unemployment to dig out from the mess their leaders created for them.

via Sweden Is Right. The economy should be left open, by Mike Whitney – The Unz Review

Debt, House Prices and the Virus: How prepared are Australians really? – Michael West

House auction

Before the coronavirus, property market pundits were tipping their usual, regulation, 10% rise in house prices. They have been quiet in recent days. Callum Foote reports on the impact of the virus on an already weak economy, racking up the present crisis against the Global Financial Crisis (GFC). Australians are unprepared. The ratio of household debt to household disposable income is now at an all-time high, suggesting the risk to property is also at an all time high.

via Debt, House Prices and the Virus: How prepared are Australians really? – Michael West

Productivity problem? Start at the bottom, not the top

Look to Australia's largest businesses rather than government when it comes to productivity.

Since 2002, Quinn showed, the most productive Australian firms (the top 5 per cent) had not kept pace with the most productive firms globally. In fact, Australia’s ‘productivity frontier’ has slipped back by about one-third. The best of ‘Made in Australia’ hasn’t kept pace with the best of ‘Made in Germany’, ‘Made in the Netherlands’ or even ‘Made in America’.”

And then there’s the other 95 per cent. In the past two decades, their output per hour worked has barely risen. So 19 out of 20 Australian firms don’t produce much more per hour than they did when Sydney hosted the Olympics.

A Productivity Commission study has found that half the slowdown in productivity improvement in the market economy in recent years is accounted for by manufacturing. A separate survey of management practices in manufacturing firms found that Australia’s managers rank below those in Canada, Sweden, Japan, Germany and the US.

The drop we’ve experienced is “not the fault of employees: there are simply fewer good opportunities available. According to Treasury’s analysis, much of the drop in job-switching is because workers are less likely to transition from mature firms to young firms. With fewer start-up firms, it stands to reason that there are fewer start-up jobs.”

Productivity problem? Start at the bottom, not the top

Old Dog Thoughts- Why is the notion of a “common good” or a “transition to” create such panic in conservatives. They feel they just might lose a “historic right”

Illustration: Simon Letch

Fighting Fake News with REAL,19/2/20; Australia’s Economy has no place for the Common Good; Elitist Sound Bytes dominate our News;

Melbourne closes on Sydney as nation’s economic powerhouse

Melbourne contributed 40% of the nation's economic growth over the past year and is tipped to close the gap on Sydney as Australia's economic centre.

SGS Economics and Planning found that during 2018-19, the Melbourne economy alone accounted for 40 per cent of Australia’s total growth. Melbourne gross domestic product reached $369 billion compared with regional Victoria’s $76 billion.

Australian GDP expanded by 1.9 per cent but Melbourne’s own GDP lifted by 4 per cent. Sydney GDP at $461 billion grew by 2.6 per cent, its lowest rate since 2012-13, to account for a third of national growth.

Source: Melbourne closes on Sydney as nation’s economic powerhouse

US official brags that American weapons will bring you the magic of friendship, especially if you ditch Russian and Chinese arms — RT USA News

US official brags that American weapons will bring you the magic of friendship, especially if you ditch Russian and Chinese arms

The ultimate American Trumplican “Sales Pitch”(ODT)

via US official brags that American weapons will bring you the magic of friendship, especially if you ditch Russian and Chinese arms — RT USA News

Essential poll: most think economic stimulus more important than surplus | Australia news | The Guardian

Josh Frydenberg and Scott Morrison leave the Reserve Bank building

Survey shows 56% of respondents would rather see the government fend off a downturn than deliver a surplus

via Essential poll: most think economic stimulus more important than surplus | Australia news | The Guardian

Turkey, the Kurds, and Lots and Lots of US Weapons | The Smirking Chimp

the Turkish military doesn’t function without the U.S. weapons industry—and the approval of the U.S. government. Absent all the hardware bearing Made in America stickers sitting in Turkish military bases, we would probably not be fretting about what Turkey’s government was doing to the Syrian Democratic Forces.

placing American military personnel in harm’s way apparently carries less political risk than endangering the profits of munitions manufacturers, or the careers of foreign policy experts.

via Turkey, the Kurds, and Lots and Lots of US Weapons | The Smirking Chimp

Brace yourself: the Trump slump hits US economy and the world

Trump: China should investigate Bidens

FACT

When he isn’t raving about how the deep state is conspiring against him, Donald Trump loves to boast about the economy, claiming to have achieved unprecedented things. As it happens, none of his claims are true. While both GDP and employment have registered solid growth, the Trump economy simply seems to have continued a long expansion that began under former president Barack Obama. In fact, someone who looked only at the past 10 years of data would never guess that an election had taken place.

via Brace yourself: the Trump slump hits US economy and the world

Banks aren’t passing on the RBA’s full interest rate cut, and while the Treasurer might be furious, there is a reason why – ABC News (Australian Broadcasting Corporation)

Jyske Bank branch in Copenhagen

Australians are carrying the 2nd most personal debt burden in the world will they now be paid to increase it? Wages are and have been stagnant for years production is up so who has profited from growth if personal debt has increased so much? Not the average Australian. Immense effort is being made to force fixed savings into the market. The banks dont lose by the way they continue to charge for their services. Debt is a good way to keep a nation’s work force obedient and compliant while income and wealth gaps grow. It’s what appears to be a respectable form of human bondage under the surface but human bondage nevertheless. (ODT)

Denmark’s third largest lender, Jyske Bank, is in effect paying home owners to borrow at the moment, with a standard mortgage of -0.5 per cent; now that’s value.

Jyske can do this by borrowing money from institutional investors at a negative rate — and there’s plenty of negative interest rate paper floating around at the moment, somewhere north of $US15 trillion ($22.37 trillion) in value — and passing it on to their customers, who then can pay back less than they borrow.

The bank clips the ticket with the usual fees and charges, but leaves the customer gruntled and still makes a tidy profit on the loan.

via Banks aren’t passing on the RBA’s full interest rate cut, and while the Treasurer might be furious, there is a reason why – ABC News (Australian Broadcasting Corporation)

Old Dog Thoughts- LNP- Is the WW2 Italian Tank 1 gear Foward 5 Backward

Fighting Fake News with REAL, 30/8/19; Scumbag College truth in Humour; LNP spinning like Trump a fake reality; Dutton says China is Harsh and inhumane, LNP is like and Italian Tank 1 gear forward 5 gears backward;

Share market correction may be imminent for ASX, stockbrokers warn – ABC News (Australian Broadcasting Corporation)

A screen displays stock market prices dropping in Sydney on Monday, June 4, 2012.

How to rip off peoples savings 101. What the government wants you to see a boom for you to follow in a world of debt. They want your money and you to spend spend spend until you can’t anymore.

  1. Cut interest rates to record low margins and drive people with savings into the stock market spend and watch it boom.
  2. Wait for the correction and then watch people suffer.Fake booms real busts losers and winners neither the realm of the elderly whose money is managed by others and only want to reach end of days without worry.
  3. Self Managed Savings advice it’s safer under the bed than with sharks. (ODT)

Key points:

Australian shares are near record highs while interest rates are near record lows
Analysts say the disconnect between the two usually means that one market will be “spectacularly wrong”
However, analysts also the Australian share market is not heavily overvalued

Share market correction may be imminent for ASX, stockbrokers warn – ABC News (Australian Broadcasting Corporation)

The RBA must be tearing their hair out – » The Australian Independent Media Network

It is inconceivable that they would choose now to pay down debt when they could borrow money at such low rates and really kick start the economy through government spending on productivity enhancing investments.

It’s not only the surplus fetish that is a problem as former head of the RBA, Bernie Fraser, points out. The government’s self-imposed cap on tax-to-GDP would also act as a restraint on the economy.

“What this dopey cap does is that it acts as a cap, not just on tax but also on expenditure, so if you have to do something you’ve created a problem for yourself,” he said.

With borrowing costs so low, an exchange rate at the bottom end of its range in recent times, surging iron ore prices boosting our terms of trade, and a nominally low level of unemployment, things should be going a lot better than they are.

But the reality is that social security payments are too low and many people are living in poverty, wages have stagnated, underemployment is rising and job security is falling.

Yet all this government can talk about is tax cuts for the wealthy and delivering a surplus.

via The RBA must be tearing their hair out – » The Australian Independent Media Network

The government has dug itself into a deep hole and the walls are crumbling – » The Australian Independent Media Network

In the past five years the population has grown by just 8%, but government spending has risen by an incredible 21%. By sheer luck the mining boom has increased revenues by 27% but windfall gains like these are not sustainable.

The Daggy Dad “please like me” tour, backed up by his affable side-kick doing slide shows of endless cherry-picked graphs, is nothing more than an advertising campaign. Their claims of strong economic management are based on unrealistic assumptions about future wage growth and consumer spending and completely ignore Australia’s spiralling household debt.

They are reliant on precarious revenue from resources and seem clueless about the importance of diversifying our economy and building new industries to take up the slack caused by technological disruption and the inevitable demise of the fossil fuel industry.

via The government has dug itself into a deep hole and the walls are crumbling – » The Australian Independent Media Network

After the hype, our economy’s grim reality setting in

Illustration: Matt Davidson

It laughs at Treasurer Josh Frydenberg’s claim in the April budget – and Scott Morrison’s claim in the election campaign – to have returned the economy to “strong growth”, which will roll on for a decade without missing a beat.

Why is the immediate outlook for the economy so weak and uncertain? Not primarily because of any great threat from abroad – though a flare-up in Donald Trump’s trade war with China could certainly make things worse – but primarily because of one big and well-known problem inside our economy: five years of weak growth in wages.

via After the hype, our economy’s grim reality setting in

The Coalition can’t manage money – » The Australian Independent Media Network

Only one-eyed Coalition supporters could construe the deteriorating state of our economy as somehow acceptable, as having nothing to do with the stewardship of the government. Instead, they will likely insist that the Coalition knows what it’s doing, has everything under control, and that we’re all doing fine. They will extract any morsel of ‘good news’ from the economic data to bolster their conclusions.

They will go on insisting that ‘The Coalition is the superior economic manager’, although the evidence inexorably leads to the conclusion: The Coalition can’t manage money.

via The Coalition can’t manage money – » The Australian Independent Media Network

‘An erosion of commitments’: Trade talks in trouble as US accuses China of backtracking

Donald Trump has decided to increase tariffs on US$200 billion worth of Chinese goods.

What seems to be missing is blaggart Trump not only said he’d raise the 10% tariffs already in place but he’d add 25% on $ 200 bill goods more. This seems as much a backdown than anything else. But it is an action nevertheless he says is good for the economy. He also says it’s not a cost to Americans because the Chinese have to pay it?? The man certainly said the same about the wall didn’t he??. Americans don’t have to pay?? (ODT)

Donald Trump’s top trade advisors have accused China of reneging on promises made during recent negotiations and confirmed that the US will increase tariffs on US$200 billion ($286 billion) worth of goods this week.

When the US President tweeted about the tariff hike on Sunday, local time, many investors and analysts hoped it was a short-term negotiating tactic designed to extract a better deal from China.

via ‘An erosion of commitments’: Trade talks in trouble as US accuses China of backtracking

‘Defied all odds’: Australia’s sharemarket continues to shock

https://static.ffx.io/images/$zoom_1.061%2C$multiply_1%2C$ratio_1.776846%2C$width_1059%2C$x_0%2C$y_94/t_crop_custom/w_800/q_86%2Cf_auto/be5b0340e7525facc035189e5476c39229ea8aee

Housing Crashes Stocks Boom, Stocks Crash Housing Booms, Swings and Merry-go-Rounds how to stop them taking your money (ODT)

Despite a backdrop of troubling economic signals, the nation’s benchmark S&P/ASX 200 Index rallied almost 10 per cent in the first quarter — its best-ever performance to begin a year in data going back almost three decades. Strong commodity prices and promises of easy monetary policy from central banks are working in the gauge’s favour even as Australia’s property slump deepens and its economy continues to wane.

via ‘Defied all odds’: Australia’s sharemarket continues to shock