The Aussie politics thread -

 
  wobert Chief Commissioner

Location: Half way between Propodolla and Kinimakatka
Federal Government (Aus) can't run out of money, being the sole issuer of the currency. States on the other hand.........

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  ANR Deputy Commissioner

Printing more money and using monetary policy is not going to get anyone out of recession and it certainly did not end the depression is the 1930s. The government needs to become an employer of its people to build or rebuild infrastructure.and not hand out gratuitous payments like job killer. The big end of town is just protecting their own hindquarters and is not up to the task nor interested in nation building. They are all playing a game of chicken, sitting on their overinflated shareholding seeing who will blink first.
  don_dunstan The Ghost of George Stephenson

Location: Adelaide proud
Printing more money and using monetary policy is not going to get anyone out of recession and it certainly did not end the depression is the 1930s. The government needs to become an employer of its people to build or rebuild infrastructure.and not hand out gratuitous payments like job killer. The big end of town is just protecting their own hindquarters and is not up to the task nor interested in nation building. They are all playing a game of chicken, sitting on their overinflated shareholding seeing who will blink first.
ANR
Speaking of over-inflated shareholdings, there's some things on the ASX and international exchanges that are simply unbelievable right now.

All the Aussie Big Four banks for a start - notices are about to be sent this week to people with their loans on 'pause' in order to re-start their loans - but the heads of the Commonwealth and NAB banks have already said that they don't expect this process to go well because there'll be a lot of customers who can't afford to 'catch up' with their loans considering it was only the repayments and not the interest that was put on hold. The head of NAB even said not long ago that anyone who thought they wouldn't be able to resume payments should have bailed a long time ago - particularly investment properties.

So we have that problem - but we also have stocks being extremely over-valued like Tesla, which is presently valued at more than Toyota despite the fact that they haven't made any money since their inception. I guess its just people looking for somewhere to park their money and they consider that stock a good investment - but is that a good idea considering they've never made money?
  don_dunstan The Ghost of George Stephenson

Location: Adelaide proud
The 'mortgage holiday' period is now officially ending: Banks have started calling/texting/emailing the one-in-five borrowers who took the 'deferral of payments' to inform them that their mortgage holiday is now over and that they have to start repayments again (with interest). The problem is that around twenty percent of those people are refusing to even speak to their banks... from the Financial Review:

The coronavirus pandemic has of course thrown up lots of problems for business leaders, but senior bankers face a novel challenge in working out how to manage the tens of thousands of home loan borrowers who have decided to ghost them.

It's estimated that around one in five customers who opted to defer their home loan repayments are now ghosting their bankers: they are simply refusing to respond to phone calls, texts, letters and emails from the banks.

Now, this is not an insignificant number of would-be ghosters.

According to figures provided to the Australian Prudential Regulation Authority, the banks still had about 414,430 deferred home loans – with a total value of $167 billion – on their books as at the end of July.

Even if the banks have made some progress in whittling down the number of deferred home loans, it suggests that about 80,000 home loan borrowers, who owe a little more than $30 billion, have decided that their best financial strategy is to avoid having any sort of contact with their bankers.

That's not a positive sign that things are okay out there in post-COVID mortgage-land.
  RTT_Rules Oliver Bullied, CME

Location: Dubai UAE
Printing more money and using monetary policy is not going to get anyone out of recession and it certainly did not end the depression is the 1930s. The government needs to become an employer of its people to build or rebuild infrastructure.and not hand out gratuitous payments like job killer. The big end of town is just protecting their own hindquarters and is not up to the task nor interested in nation building. They are all playing a game of chicken, sitting on their overinflated shareholding seeing who will blink first.
ANR
Speaking of over-inflated shareholdings, there's some things on the ASX and international exchanges that are simply unbelievable right now.

All the Aussie Big Four banks for a start - notices are about to be sent this week to people with their loans on 'pause' in order to re-start their loans - but the heads of the Commonwealth and NAB banks have already said that they don't expect this process to go well because there'll be a lot of customers who can't afford to 'catch up' with their loans considering it was only the repayments and not the interest that was put on hold. The head of NAB even said not long ago that anyone who thought they wouldn't be able to resume payments should have bailed a long time ago - particularly investment properties.

So we have that problem - but we also have stocks being extremely over-valued like Tesla, which is presently valued at more than Toyota despite the fact that they haven't made any money since their inception. I guess its just people looking for somewhere to park their money and they consider that stock a good investment - but is that a good idea considering they've never made money?
"don_dunstan"


Tesla has now reported that it made four quarters in a row profit, some few automakers can say.

Share prices are not so much what they have made, its about what people think they will make in the future and considering their books are full and they cannot make cars or release new models fast enough, they have strong prospects. Their side businesses are also in strong demand. (and to think some of us here believe the Australian car manufacturing industry had a future with automakers that barely have a future on their home soil)

Meanwhile almost the rest of the legacy American auto makers are in decline outside the pickup (ute) market and of the pickup makers, even some of these are not expected survive against the wave of electric pickups and existing low production volumes, Ford being the leading exception with its F150.

Expect to see a growing number of infrastructure projects, obviously the acceleration of the Western Sydney airport railway (14,000 jobs) being one of many.

Banks, well they cannot allow the honeymoon to continue. Rule number 1 with a housing loan, always budget for a year's unemployment and you will unlikely ever loose the roof over your head. Rule number 1 with a investment loan,  should not be solely dependent on both rent and your income for repayments, unless you don't like sleeping at night.
  Heihachi_73 Chief Commissioner

Location: Terminating at Ringwood
Printing more money and using monetary policy is not going to get anyone out of recession and it certainly did not end the depression is the 1930s.
ANR
Maybe not notes, but they clearly didn't press enough 1930 pennies back then. Laughing
  RTT_Rules Oliver Bullied, CME

Location: Dubai UAE
Printing more money and using monetary policy is not going to get anyone out of recession and it certainly did not end the depression is the 1930s.
ANR
Maybe not notes, but they clearly didn't press enough 1930 pennies back then. Laughing
"Heihachi_73"


The ways economies run today including the tools at hand are very different from 1930's. Today they are far more responsive and dynamic with live cash flow data, trade etc.

Over the last 70 years we have had artificial inflation through mandated pay rises which follows on to price rises and back to pay rises. Demand only made up a small fraction on inflation and today through 20 years of govt controls we have basically eliminated the bulk of inflation.
  don_dunstan The Ghost of George Stephenson

Location: Adelaide proud
Tesla has now reported that it made four quarters in a row profit, some few automakers can say.
RTT_Rules

The barest of profits.

How's that truck they were going to deliver? The 4WD they were going to be punching out by now?
  justarider Deputy Commissioner

Location: Free at last, free at last
Printing more money and using monetary policy is not going to get anyone out of recession and it certainly did not end the depression is the 1930s.
Maybe not notes, but they clearly didn't press enough 1930 pennies back then. Laughing
Heihachi_73
Pure gold. Straight over the experts' heads. lmao.
  don_dunstan The Ghost of George Stephenson

Location: Adelaide proud
Aussie banks are being quietly bailed out by the Reserve Bank via the Term Funding Facility; they've recently used $200,000,000,000 of that facility - but don't call it a 'bailout'. They want you to call it 'commercial funding facility'...
  michaelgm Chief Commissioner

Some Sydney land value figures were mentioned in the HSR thread, apparently it’s subjective.
See the LNP, paid mates rates for land acquisition, Western Sydney airport.
Who was treasurer at that time?

  doyle Assistant Commissioner

And the liberals nbn fiasco needs an upgrade, funny that.
  michaelgm Chief Commissioner

And the liberals nbn fiasco needs an upgrade, funny that.
doyle
Any guess on the degree of difficulty on that particular backflip?
  doyle Assistant Commissioner

Belly flop... un scrambling an egg has a high degree of difficulty
  kitchgp Chief Commissioner

Be interesting to see if those that paid thousands to upgrade their FTTN, etc to fibre (FTTP) get some sort of refund:
https://www.abc.net.au/news/2018-08-11/people-inadvertently-paying-for-neighbours-faster-nbn/10104778?nw=0

It costs $330 just for a quote!
  doyle Assistant Commissioner

Bloody ideology, looking after billionaire mates for donations and insane profits and selling our country short and now gas, now that's a brain fart bloody Scroto
  don_dunstan The Ghost of George Stephenson

Location: Adelaide proud
The Commonwealth Bank released a series of interesting data tid-bits today that went largely un-noticed in the media but here was two gems that stood out for me:

The first was that 75% of people who have deferred their mortgage payments can't resume paying interest plus principal and have asked the bank for more time and/or interest only until they can get their sh*t together - many have asked if their loans can be deferred until next year or until they can access more of their superannuation. Shock, horror!

The second interesting tid-bit was that 14% of the people who have been deferring their loans are actually on Jobseeker but that this figure is growing fast now that JobKeeper is being progressively wound back. So almost one-in-six of those deferred mortgage holders is presently on the dole and it's rising fast. I'd say if you're on the dole and unable to find another job quick-smart that you're probably in a whole lotta trouble...

That's a total of 650,000 loans nationally that are not performing apparently - and are unlikely to start going 'normal' again any time soon.
  Graham4405 Minister for Railways

Location: Dalby Qld
The price of fruit and vegetables to double (at least) because of a shortage of pickers and there are people on the dole? Something is wrong here...
  don_dunstan The Ghost of George Stephenson

Location: Adelaide proud
The price of fruit and vegetables to double (at least) because of a shortage of pickers and there are people on the dole? Something is wrong here...
Graham4405
You only have to look at how large agricultural employers like Costa treat their employees to know what's wrong.

Most Australians don't find it economical to work for piece-work rates that equate to $12 an hour - especially when they have to pay petrol and accommodation on top of that. That's the source of the problem; the very poor money and the fact that the conditions are absolutely appalling as detailed by this recent ABC report.

I wouldn't do it and I'm pretty sure that you wouldn't want you or your family subjected to those conditions either.
  nswtrains Chief Commissioner

The price of fruit and vegetables to double (at least) because of a shortage of pickers and there are people on the dole? Something is wrong here...
You only have to look at how large agricultural employers like Costa treat their employees to know what's wrong.

Most Australians don't find it economical to work for piece-work rates that equate to $12 an hour - especially when they have to pay petrol and accommodation on top of that. That's the source of the problem; the very poor money and the fact that the conditions are absolutely appalling as detailed by this recent ABC report.

I wouldn't do it and I'm pretty sure that you wouldn't want you or your family subjected to those conditions either.
don_dunstan
Gee. For once I totally agree with Don.
  michaelgm Chief Commissioner

The price of fruit and vegetables to double (at least) because of a shortage of pickers and there are people on the dole? Something is wrong here...
You only have to look at how large agricultural employers like Costa treat their employees to know what's wrong.

Most Australians don't find it economical to work for piece-work rates that equate to $12 an hour - especially when they have to pay petrol and accommodation on top of that. That's the source of the problem; the very poor money and the fact that the conditions are absolutely appalling as detailed by this recent ABC report.

I wouldn't do it and I'm pretty sure that you wouldn't want you or your family subjected to those conditions either.
Gee. For once I totally agree with Don.
nswtrains
Finding myself in that same unfamiliar territory.
  Graham4405 Minister for Railways

Location: Dalby Qld
I wouldn't do it and I'm pretty sure that you wouldn't want you or your family subjected to those conditions either.
don_dunstan
Whilst I haven't done it myself, family members have. I didn't hear any complaints.
  speedemon08 Mary

Location: I think by now you should have figured it out
  michaelgm Chief Commissioner

Caution, NSFW.
YM, not safe for work.Smile

  don_dunstan The Ghost of George Stephenson

Location: Adelaide proud
The Labor Party is advocating spending even more money on things that aren't necessary in order to stimulate the economy - Albo has been tweeting today about multi-billions for social housing repairs, stimulus packages, more money for unreliable green energy etc etc. There's already a budgetary deficit of $200 billion - where does the money come from? And a budgetary deficit is spending money when you don't even know where it's going to come from - they seriously want to double or triple that number?

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