Is Australia a 'gigantic bubble'?

[Lovey80]

A Carbon tax + Mining Tax = BHP and Rio Tinto will move the majority if not all of there capital to Capitalistic 3rd world countries... why operate when you are working for a government that lets you keep a tiny % of YOUR earnings

Tell you what, how about I come over to your place, sell all your furniture on Gumtree and then give you 30% of whatever is left over after I finish deducting all the costs I incurred selling off your stuff.

That would be a fantastic idea if you were the only person in the country that knew how to sell furniture on gum tree and the alternative would be that the end result of 1for1 attempting to do it himself would be half of what ever that 30% turned out to be. AND 1for1's furniture cost him nothing.

What would really suck for you is if you entered in an agreement with 1for1 to give him 30% of your profits when the likely hood of you making a small profit was very high but the pay off over 30-40 years if you were really smart about it would mean pretty healthy profits down the track for both you and him. Then once he saw you reaping the rewards for working your ass off while 1for1 did next to nothing over those 30-40 years, 1for1 decided that those profits you earned fair and square were some how unfair and decided that he wanted 40% after you had taken all the risks.

 

[Big A.D.]

That would be a fantastic idea if you were the only person in the country that knew how to sell furniture on gum tree and the alternative would be that the end result of 1for1 attempting to do it himself would be half of what ever that 30% turned out to be. AND 1for1's furniture cost him nothing.

What would really suck for you is if you entered in an agreement with 1for1 to give him 30% of your profits when the likely hood of you making a small profit was very high but the pay off over 30-40 years if you were really smart about it would mean pretty healthy profits down the track for both you and him. Then once he saw you reaping the rewards for working your ass off while 1for1 did next to nothing over those 30-40 years, 1for1 decided that those profits you earned fair and square were some how unfair and decided that he wanted 40% after you had taken all the risks.

Given that it's his stuff I'm selling and I can't do it without his approval, I'd make it a point not bitch and moan if he decides it's worth more than what I was paying him previously.

I'm reminded of this quote:

There has grown up in the minds of certain groups in this country the notion that because a man or corporation has made a profit out of the public for a number of years, the government and the courts are charged with the duty of guaranteeing such profit in the future, even in the face of changing circumstances and contrary to public interest. This strange doctrine is not supported by statute or common law. Neither individuals nor corporations have any right to come into court and ask that the clock of history be stopped, or turned back.

 

[CriticalSilver]

Robert Heinlein was a literary giant of science fiction and Stranger in a Strange Land is one of the very best of that genre, but never in any of his novels did he ever take the side of Big Government. In fact, his protagonists raled against the very concept of Big Government and in every circumstance his novels would investigate the virtues of libertarian values. Perhaps he supported big taxing, authoritarian governments in his personal life, but the legacy of his creativity in the literary field is a testimony to the triumph of the individual spirit over the tyranny of the powerful.

If Australia was a Heinlein novel, his hero would be a sword fighting Clive Palmer rather than a hand-wringing Wayne Swan.

 

[Big A.D.]

Yes, I know but that wasn't the point of the quote.

Perhaps this one is more appropriate:

I have altered the deal, pray that I do not alter it further.

 

[CriticalSilver]

And as with any virtuous Jedi master, it should be the light sabre for all Sith lords. That much I grok. :lol:

 

[markcoinoz]

$10B (in new debt) for a Clean Energy Finance Corporation on top of the billions wasted on Carbon Sequestration, Taxing the gas that we all exhale and establishing the premise for taxing life itself, etc., etc. etc. ... sigh.

Here's how the greens are prioritising things.


To rub our noses in just how unsustainable things are, we even have an unmarried, Childless Prime Minister, a lesbian finance minister, a homosexual (ex) Speaker of the House and are arguing the merits of gay marriage, while the private economy is in absolute tatters, family values are disintegrating and we will shortly be faced with government perverts ogling our children and whoever else takes their fancy with naked body scanners at the airports!

If you don't think we are circling the toilet bowl of global epochs, then you're living in a different world to me. There is litterally no way this can continue for ever. But it will continue to go on for longer than we expect.

I had to laugh Gino,

Surely there must be a Polly with Beastiality tendencies.
The rest, you seemed to have covered.

What a warped Government we have.

Cheers markcoinoz

 

[CriticalSilver]

@markcoinoz - Undoubtedly, not to mention what the priests and judges are into. But how else would the great bubble of Australian prosperity end if there was not an obvious excess of perversion and corruption. It's like a sign post.

 

[Lovey80]

That would be a fantastic idea if you were the only person in the country that knew how to sell furniture on gum tree and the alternative would be that the end result of 1for1 attempting to do it himself would be half of what ever that 30% turned out to be. AND 1for1's furniture cost him nothing.

What would really suck for you is if you entered in an agreement with 1for1 to give him 30% of your profits when the likely hood of you making a small profit was very high but the pay off over 30-40 years if you were really smart about it would mean pretty healthy profits down the track for both you and him. Then once he saw you reaping the rewards for working your ass off while 1for1 did next to nothing over those 30-40 years, 1for1 decided that those profits you earned fair and square were some how unfair and decided that he wanted 40% after you had taken all the risks.

Given that it's his stuff I'm selling and I can't do it without his approval, I'd make it a point not bitch and moan if he decides it's worth more than what I was paying him previously.

You live in such a fantasy land. If you had nearly gone to the wall 5 or so times over that 40 years and you were the only one that could have got a cent of profit for him, you leveraged yourself up massively to pull it all off with massive risks, there is no way you would have that attitude.

 

[Dogmatix]

Fall 50 cents on the dollar... what doller? Zimbabwe??... The way the US is looking it wouldn't make a difference.

All the worlds major fiat currencies are doomed, comparing any two is futile.

Thanks, saved me from saying it.

 

[1for1]

Is Australia a 'gigantic bubble'?

To answer thsi... i think you should look into how much the Australian Dollar has devalued, real estate prices are directly inline with inflation.

What we have is a rapidly inflating dollar with a population willing to pay ever increasingly higher real estate prices, and a banking sector very happy to laon huge multiples of capital so mortgages can borrow to the hilt.

Money masters 101 ... make money cheap by manipulating interest rates, once every company and individual is borrowed to the hilt, banksters will call all debts in destroying the masses who THOUGHT REAL ESATE ALWAYS WENT UP. Its called the Business BOOM BUST cycle... a total invesntion of the money masters pulled off through reserve abnks.

So yes the additonal Millions of dollars the reserve bank and big banks have born into exisiting through bank loans and fiscal, monetary policy, now SUPER etc are all stoking the high prices we see for finite commodites with real demand.

The longer the money supply expands without a genuine correction the more a "world of hurt" we will be in.

1for1

 

[Jislizard]

Australia is good at a couple of things, digging stuff out of the ground for other people and letting other people come and visit us.

At 50 cents on the US dollar I am sure that the tourist industry will pick up, we have cute koalas and funny kangaroos.

At least there is no sunshine tax.

 

[KMGeneral]

Is Australia a 'gigantic bubble'?

To answer thsi... i think you should look into how much the Australian Dollar has devalued, real estate prices are directly inline with inflation.
1for1

Hmm.. I had not thought of it that way before. Thankyou for the insight.

 

[Guest]

Australia is good at a couple of things, digging stuff out of the ground for other people and letting other people come and visit us.

At 50 cents on the US dollar I am sure that the tourist industry will pick up, we have cute koalas and funny kangaroos.

At least there is no sunshine tax.

Digging crap out of the ground is only viable if we have a willing buyer.

China is already slowing down economically as their two major export markets (Europe and the US) are sliding into another great depression.

If those markets are not buying, china is not making.

Demand from the resource nations goes down the tubes and that's the bottom line there.

As for the tourist market, you'd have to ask (even at 50c) who in their right mind would want to be travelling for pleasure nowadays?

If our dollar tanks to that level, it's a clear indication the world markets are in the can... people are going to be more worried about paying stupidly large mortgages and putting food on the table to be bothered with a 15 hour plane ride to hug a cute marsupial.

I think there's a lot of complacency Australia wide in the notion that we're infallable and that when the rest of the world is going to utter crap, Aussie will come out fine.

We HAD a security blanket to weather us from what's happening abroad, but it's basically all gone now and the only counter measure left to fend off the global trends is the blunt IR tool and guess what... it's not working either.



This country is suffering from a horrible case of normalcy bias and economic amnesia. The populace knows they rang up far too much on the credit card and now they don't know what the hell to do about it other than to find the biggest money maker still left standing and demand their sacrifice to bail their sorry arses out of this mess.

Guess what? It's going to backfire spectacularly and we'll get back in line with the rest of them.

This country has an account well over due and sticking our collective heads in the sand and hoping it will go away will only make it worse.