Australia to ‘abolish phony debt ceiling’, continue spending-spree

11 12 2013

Published time: December 04, 2013 13:10

Australia will dive further ‘Down Under’ into debt, as lawmakers reached a deal to do away with a limit. The government can now borrow as much as it wants, and will avoid a shutdown when it reaches the AU$300 billion debt limit on December 12.

Federal Treasurer Joe Hockey won over the Greens who had previously supported the Labor Party cap of AU$400 billion (about $373 billion). Earlier, the upper house blocked a motion to raise the debt ceiling to AU$500 billion.

The government must justify any increase in debt up to AU$50 billion Greens leader Christina Milne told reporters in Canberra.

“This, I think, will return some maturity to the debate around debt and get rid of what has become a phony debate every time the government has wanted to raise the debt ceiling,” Milne said Wednesday.

Original Article: http://on.rt.com/52akri

 

Advertisements




Housing bubble talk close to record levels in Australia

31 10 2013

Written by admin on October 30, 2013 – 8:12 pm 

If you have landed on this page searching for information on the Australia Housing Bubble, then you are not alone.

According to a new CommSec Housing Bubble Index, there were 194 mentions of “housing bubble” in Australian Newspapers in September this year. This is just shy of 201 mentions last recorded in January 2003 when Australia’s housing market first entered bubble territory.

Original Post: http://www.whocrashedtheeconomy.com/





Economists reveal the cuts Wayne Swan must take to get the budget deficit down

28 04 2013

How will these “supposed cuts” affect you and your family?

http://www.dailytelegraph.com.au/money/economists-reveal-the-cuts-wayne-swan-must-make-to-get-the-budget-deficit-down/story-fn84gkmz-1226630709115

If we keep a close eye on the so-called “CUT THE FAT: Budget savings measures recommended by economists”. I’m more than certain we will begin to see the “recommended measures” come to pass, slowly but surely.

Sounds to me like the middle-class, are going to be targeted with these suggested belt-tightening measures, again.

Time for families to begin to make their own measures to weather whatever is coming our way, economically.

 

 

 





Deposit Holders fleeced in latest Eurozone bailout

25 03 2013

Written by admin on March 17, 2013 – 8:42 am

Cyprus is the latest country joining the list with Greece, Ireland, Portugal and Spain to receive a bailout. While Cyprus only makes up 0.2 per cent of the Eurozone economy and the bailout is worth 10 billion euros, it is making news headline around the world for its unprecedented ‘levy’ on deposit holders.

Deposit holders with less than 100,000 euros will be hit with a once off tax at 6.75 per cent, while those with over 100,000 will contribute a higher 9.9 per cent.

The announcement has sparked outrage with everyday citizens, queuing to withdraw their life savings. However, it is believed the government has frozen electronic transfers until Tuesday so the levy can be processed on the Monday public holiday.

The ounce of logic for this unprecedented decision comes about as almost half of the depositors are foreign, many wealthy Russians. In addition to the Eurozone bailout, Russia is planning to extend a loan of 2.5 billion euro by five years.

But this is no consolation for Cyprus citizens who will wake up Tuesday morning poorer, some losing as much as 10 per cent of their life savings. In a world economy where we should be encouraging prudence, this decision will undermine any belief in saving, and could have wide spread implications.

» Why today’s Cyprus bailout could be the start of the next financial crisis – The Washington Post, 16th March 2013.
» Cyprus’ savers bear brunt of eurozone bailout – The ABC, 17th March 2013.
» Cyprus shellshocked over eurozone bailout – The Sydney Morning Herald, 17th March 2013.
» Cyprus set for emergency parliamentary session over bailout – The Australian, 17th March 2013.
» Cyprus bailout comes at a cost to bank depositors – MarketWatch, 16th March 2013.
» Cyprus bailout: Man threatens bank with bulldozer – The BBC, 16th March 2013.

Original Content: http://www.whocrashedtheeconomy.com/





NZ’s financial stability “very worrying” – JB Were

17 09 2012

7:15 PM Monday Sep 17, 2012

New Zealand should be “very worried” about the stability of the country’s financial system and active government support is required to save key regional industries, such as Solid Energy’s Spring Creek coal mine, says a top strategist for Australasian broking house JB Were.

Bernard Doyle, head of strategy in New Zealand, also argues the RBNZ should intervene to drop the value of the kiwi dollar.

Prime Minister John Key dismissed concerns about an unstable financial system as “nonsense”, but Doyle’s comments come at a time of growing concern about the high value of the New Zealand dollar.

“The RBNZ is one of the few central banks running relatively orthodox monetary policy,” said Doyle in a research note. It was a “rarity in the global economy,” with positive interest rates and no policy to print money.

“Unfortunately, in a world where the major central banks are breaking all the rules, this is not an advantage,” he said.

The government should also be willing to support key regional industries, in a move similar to its creation of the nine-day fortnight during the 2008 global financial crisis to assist Fisher & Paykel Appliances, now subject to a Chinese takeover bid, to survive.

“Spring Creek will be an important precedent,” said Doyle. The mine was a major employer and contributor to the fabric of the West Coast economy, while volatile global coal prices make “long production decisions particularly difficult.”

Key said the Cabinet expected a report on Spring Creek from the new Solid Energy chairman, Mark Ford, within a week.

Doyle’s commentary comes one week ahead of the departure of Alan Bollard as governor of the RBNZ, to be replaced by former World Bank managing director Graeme Wheeler, and as opposition parties clamour increasingly for a change in monetary policy settings to ease the high kiwi dollar.

Doyle says the RBNZ has been “playing with a straight bat” on its inflation targeting while the US Federal Reserve prepares to print “an unlimited quantity of money”, the Bank of England is “printing money and providing cheap loans”, and the European Central Bank is “making cheap money available”.

Meanwhile, Asian central banks appeared to be targeting relatively stable developed economies like New Zealand and Australia to diversify their foreign reserves holdings, pushing the kiwi dollar up.

Most controversial was the central bank of the financial secrecy and tax haven Switzerland, which had been managing its currency against a “hard ceiling” for the last year.

In New Zealand, current monetary policy settings were “importing other people’s problems.”

Doyle says the RBNZ should cut the benchmark official cash rate to below its current historic low point of 2.5 per cent, use new tools to lean against the potential for lower rates to create an unwanted housing boom, and put “soft caps” on the New Zealand dollar.

Doyle suggests the RBNZ should accumulate New Zealand dollars at various price points, from 82.5 US cents through to 90 cents, at a time when the local unit has been consistently trading in recent days above 82.5 cents, and stood at 82.80 cents late today.

Doyle said the combined effect of Norske Skog halving production at its Kawerau pulp and paper mill, the possible closure of Spring Creek and the threat to the Rio Tinto aluminium smelter were examples of an unstable post-global financial crisis world.

In this environment, some industries would be more reliant on government support than in the past.

While intervention “should feel unnatural to government…passive government in the post-GFC world is equally dangerous.”

Doyle likened a deal for Spring Creek to the US government’s temporary bail-out for the automobile industry in 2009.

– BusinessDesk NZ Herald

Original: http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=10834685





What the Economic Crisis really means to you and what you can do about it?

7 09 2012

Originally
Published on Aug 29, 2012 by http://youtube.com/DoingItOurselfs
Doing It Ourselves aims to broaden understanding of the debt crisis and peak resources and encourage action for the sake of personal preparedness, happiness and ethical living. This animation sums up the key challenges facing our global society of credit crisis and resource scarcity and describes a path we can take to a happier life, now and in the future! Find out more at http://www.doingitourselves.org

 





Higher Food Prices Coming To A Shop Near You

18 07 2012

So the fun begins….I’m guessing the “preppers” must be feeling pretty safe right now!

They might not be a bunch of “paranoid, alternative, radical, conspiracy-theorist believing hippies” after all!

I’m sure “I told you so” won’t pass their lips…NOT!

higher-food-prices-coming-to-a-shop-near-you-20120718-229vk.html