‘I suggest Hastie begin by closing the ‘money laundering’ loopholes that allow the Chinese (and others) to sail shipping container sized ships of money to our cities and regions; effectively selling much of this country away forever.
Unless ‘this’ is addressed first, Hastie is just talking incoherent trash and enabling the CCP to do precisely what ‘they’ want and have done for decades.
Andrew Hastie at Domain defines his pushback plan against Chinese Communist Party encroachments:
…First, we need to recognise, understand, and articulate the challenge facing the West.
…Second, we must enlist the full weight of democratic institutions in this effort, including the giving of major speeches, initiating parliamentary inquiries and passing legislative measures, and educating the public.
…Third, democratic leaders must develop a strategy and define victory…Values must be articulated. Core interests must be defined. Sovereignty, where compromised, must be recovered and protected.
…Fourth, democracies should develop and establish expertise in hybrid and political warfare.
…Fifth, we must build an array of political warfare instruments. This would include cyber, diplomatic, information, and media capabilities.
…Sixth, we should use economic measures to counter authoritarian economic coercion…
Finally, democracies need to prepare for the long haul – and to pay a price. Countering and defeating authoritarian political warfare is likely to require sustained effort and spending over several decades.
Our progress report:
first, we have made good progress but the presense of Gladys Liu in the Government is a major roadblock;
second, we’ve done bugger all. Indeed, we’re so cowed by Chinese threats that the default position is kow tow and not discuss anything;
third, we’ve made some progress with FIRB stiffened and taskforces underway belatedly;
fourth, we’re a long way behind;
fifth, not too bad;
sixth, absolutely nowhere;
seventh, a very minimal start only.
Yet to be discussed with any kind of vigour is:
cutting foreign students and funding universities properly;
increased defense spending;
Basically the stuff that matters. All we have done so far is apply the anti-terrorism model to CCP influence. That may not even work.
There is much to be done. Hastie should get more specific. Until someone in power triggers these debates they will not be had.
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
Property owners say new heritage rules proposed by City of Ryde council will dramatically reduce house prices in the area.
The council will meet on December 10 to decide whether to heritage list a number of properties without the consent of owners.
Jerome Laxale, the Labor mayor of Ryde, said less than 1 per cent of properties within the council had been identified for heritage listing.
“If Council chooses to leave all of these dwellings unprotected, they will eventually be lost forever,” he said.
“With pro-development state planning laws, and on the eve of the medium density housing code coming into force, now is the time to preserve what history Ryde has left.”
But Liberal councillor Jordan Lane said the changes were a “Band-Aid solution” to concerns about overdevelopment.
“There has been enormous opposition to this scheme which arbitrarily imposes heritage conditions on properties, often exhibiting little or no heritage value, without the owners’ consent,” he said.
The council’s move to change heritage rules followed a review that recommended the listing of 44 “items” of historic significance including properties, public parks and street trees and six new heritage conservation areas.
There are only 173 heritage items in Ryde – far less than neighbouring councils such as Parramatta (751), Hunters Hill (515) and Canada Bay (545).
Ryde also has fewer heritage conservation areas than other councils.
A council spokesman said the previous practice of heritage listing properties only with the consent of owners had been superseded – a view disputed by opponents of the proposed changes.
“Since 2010, Council has resolved to protect a number of items of heritage significance at risk of demolition via Interim Heritage Orders and subsequent listings without the consent of the owners,” the spokesman said.
However, the proposed changes have angered residentswho said in a letter to Planning Minister Rob Stokes it had caused “significant stress and anxiety”.
“Residents are insulted that we are referred to as ‘greedy developers’,” the letter said. “We are ordinary hardworking families who don’t want to lose the value of our primary asset, ‘our home’.”
CAAN: VIEW to learn what happened at the Ryde Council Meeting … among the Anti-Heritage Policy supporters were Gung Zhi, Wei Wei Wang, Guanjing Ruan, Silvestor Lauria and Pei Cheng and dozens more!
Scott Mackenzie said the value of his four-bedroom house in Gladesville could drop by up to $300,000 if it is given a heritage listing.
Mr Mackenzie’s house is 100 years old but he said it had been extensively renovated twice in the past 20 years.
Mr Mackenzie said a heritage listing would prevent him building a second storey and add to the cost of maintaining his home.
“Heritage is restricting the ability to do what I need to do with my property, to make our living arrangements the best they can be,” he said. “Other residents are afforded this flexibility – why should owners of older properties be restricted?”
The issue of heritage has also divided councillors, with police twice called to fiery council meetings amid allegations a councillor was assaulted.
Independent councillor Roy Maggio said the changes would discriminate against the owners of older homes.
CAAN: Perhaps the price tag of $2M for this Ku-ring-gai property is more about developers landbanking to make a motzer with higher density … they can afford to make such an offer
“What gives a council the right to diminish the value of a person’s biggest primary asset?” he said. “The residents are relying on their home as part of their superannuation plan or to fund nursing home costs later in life.”
But Graham Quint, the director of conservation at the National Trust (NSW), said the listing of heritage buildings and conservation areas enriched communities and was not anti-development.
“In our experience heritage listing can increase the value of properties,” he said.
Tom Forrest, the chief executive of the developer’s lobby group Urban Taskforce, said the the preservation of heritage should not outweigh other consideration such as housing supply.
“Heritage listings should not be a block to progress and also not be used to frustrate efforts to house the growing population of Sydney,” he said.
CAAN: In Sydney we are living with the awful consequences of the Liberal Coalition Housing Supply that was not able to meet the ‘foreign demand’! To lose lovely Californian Bungalows, Federation, and Mid-Century Homes and gardens for the fast-tracked higher density development now replacing them!
Photo: new owner sought to demolish soonafter purchase to redevelop
Australian Heritage needs protection! Craftsman built …
Heritage home purchased by ‘family’ developer
A Home in Denistone …
OUR MID-CENTURY HOMES TOO!
Robbing Australian families of Mid-Century Homes; their communities, their neighbourhood
WHERE is the respect?
ABSOLUTELY no respect for the Ryde Council Guidelines by those among the Anti-Heritage Policy Supporters
-by registering bogus submissions
-even resorting to violence!
WHO ARE THESE PEOPLE?
THIS – what can only be described as a – ‘MOB’ are not interested or remotely interested in the Heritage of Ryde … in what the Incumbents of Ryde value … our Australian Communities … Urban Bushlands … Neighbourhood Character and HERITAGE!
AMONG the Anti-Heritage Policy Supporters … Gung Zhi, Wei Wei Wang, Guanjing Ruan, Silvestro Lauria, and Pei Cheng and dozens more … what do they value … do they value anything apart from their ‘Own Prosperity’?
WHERE did this deliberate FEAR AND INTIMIDATION CAMPAIGN derive from within our major parties particularly the Liberal Party? Pulling the ‘Race Card’ … to reshape the Australian Society for their own ends … no less …
TO demolish Our Heritage, Our Mid-Century Homes, Our Australian Communities, Our Urban Bushlands and beautiful Vistas to replace with this FUGLY CRAP development! That like their manufactured goods will end up in landfill … in the not too distant future …
WHY … because of GREED … they have been granted the opportunity to greatly enhance their wealth with NSW Planning Law changes to increase density either with high-rise tower precincts or the Medium Density Housing Code of terraces, townhouses, villas, triplex, duplex … with as many as ten terraces on a 600M2 lot!
TO RUN ROUGHSHOD over Australian Communities … with Exempt and Complying Development whereby the neighbours have no say!
VIEW PHOTOS BELOW AND/OR OUR PHOTO ALBUM FOR EXAMPLES OF INFERIOR OVERDEVELOPMENT …
The Weekly Times 4 December 2019
AUSTRALIAN HERITAGE AND MID-CENTURY HOMES
…TO BE DEMOLISHED FOR CHEAP FAST-TRACKED DEVELOPMENT LIKE THESE!
CAAN Photo: Fugly fortress-like townhouse/apartment development Marsfield; out of character with the area
CAAN Photo: December 2019: Ten Townhouses have replaced one cottage and a market garden …
Australian Heritage homes craftsmen built are being demolished for fast-tracked prefab built dwellings; built by foreign workers
WHAT IT MEANS …
10 Xthe load on water and sewerage; waste; and on power; greater Co2 emissions from construction using concrete, glass, steel and ongoing use; and 10 x fuel for vehicles
These developments are not for the Australian community; largely for the overseas buyers seeking an opportunity to launder black money … and to gain a ‘Permanent Resident Visa‘ with Medicare benefits … close to the Mandarin/CCP city of Chatswood … (FIRB ruling 2009; May 2017 Budget Reg. 100% sell-off ‘new homes’ overseas particularly in China)
CAAN Photo: This could be described as the ulitmate IMPOSITION on a mid-century estate in Ryde …. who would buy either duplex?
CAAN Photo: Chinese Greenland Lachlan’s Line, a blight on the horizon for many Kms; Chinese Country Garden in the background; another blight also at North Ryde looming over the village of North Ryde. Can only be described as cheap developments …
*Taxpayer spending on maintaining demountable classrooms in NSW has increased by 800 per cent in eight years.
Money spent on a refurbishment program increased from $5 million in 2011 to $45 million last year, supplementary questions to NSW budget estimates hearings reveal.
The surge in demountable spending comes as many of Sydney’s schools have exceeded capacity, with schools such as Carlingford West Public School and The Ponds High School installing demountable toilet blocks to cope with the population increase.
The Ponds High School P&C president Roland de Pree said next year the school would have 41 demountables.
“This really looks like a Third World country solution in Australia in 2019,” he said.
“The school was originally built for 1100 students and next year we will have 1800 students.”
Opposition education spokeswoman Prue Car said the spending showed there was an overcrowding crisis in schools.
“NSW taxpayers are now being slugged $45 million a year simply to keep pop-up classrooms fit for purpose, because the NSW Liberals have failed to build adequate permanent facilities to cope with student growth,” she said.
An Education Department spokesman said most school infrastructure funding was used to build permanent classrooms in growth areas.
“The increase in funding for the refurbishment of demountables is related to the investment in permanent public education infrastructure and technological advances,” he said.
On Friday, it was revealed that Ralan’s sole director, William O’Dwyer, burned millions on bitcoin, credit cards, properties, and other questionable purchases:
Developer Ralan’s sole director William O’Dwyer has refused to pay back $19 million to the company, saying it was payment in lieu of his salary…
An analysis of cash flow between 2016 and 2019 shows Mr O’Dwyer withdrew millions of dollars which were used for a variety of purposes, including purchasing $1.7 million in bitcoin between 2017 and 2018.
Other spending included $300,000 on school and university fees and $2.7 million in American Express charges mostly for clothing, groceries and holidays. He also made $2.3 million in loan repayments and interest charges relating to his properties…
“We will need to commence legal action to try to recover these monies. Any recovery will be dependent on Mr O’Dwyer’s personal financial capacity to repay this demand,” [administrator] Grant Thornton said.
These buyers are now unsecured creditors of Ralan. They rank below a Westpac secured loan and the Wingate unsecured loan. Therefore, they are likely to only receive pennies on the dollar.
Ralan represents another blow to Australia’s apartment market, which is already reeling from buyer concerns surrounding flammable cladding and structural faults.
Buying an apartment off-the-plan is like playing financial Russian, given buyerscannot be sure that their deposits are safe, nor that their apartments will be built to standard.
WAS this about the Election? It was declared a priority when Gladis became Premier … but it seems the overseas market is so lucrative that the growing pains are now leading to more OVERDEVELOPMENT in Sydney’s South West …
IT was only last week following a community outcry that three devilopers withdrew their developments for 18,000 HOMES in Appin!
BUT for how long?
… TODAY in Limited News we read Sydney’s South West is to be STOKED to feed into Beijing through the Western Sydney Aerotropolis … is that where the tens of thousands of First Home Buyers come from, Mr Perrottet?
WITH thousands flying in to buy every week and laundering money in the Casinos for our Real Estate … the need for ‘affordable housing’ appears to have been eliminated …
AND development of two more Casinos is underway ….
READ MORE … From the Daily Telegraph 30 November 2019
SEARCH OUR WEBSITE TO LEARN MORE … about money laundering, Real Estate Sector exempt from AML Laws, Proxy buyers, Visa Manipulation … Permanent Resident Visa following purchase of Real Estate and some get a PR Visa before coming to Australia!
About AZ Big Media: A company based in Arizona in the United States
There’s no doubt the housing market in Australia today is booming. The conditions in Sydney and Melbourne have continued to be solid with an upward trajectory in prices.
In other cities, like Brisbane, the conditions have firmed. There’s also evidence that housing turnover is starting to rise.
Do these conditions signify that it’s a good time to buy in Australia?
Well, there are a lot of advantages to looking into Australian homes. Although that’s a strong factor, you’ll find other good reasons for buying a property in the country.
Keep on reading to find six solid reasons to invest in the housing market in Australia.
1. Tax Advantage
This is some sort of guarantee for homeowners that they won’t lose as much money on an investment. Australia has a tax break referred to as negative gearing. *
The term means that your expenses and interest payments are greater than the return. This means that even if the house’s price appreciates every year and you have positive cash flow, it may still be losing money.
The negative gearing loss includes the computation of a lot of factors. This includes your property income, property expenses, and depreciation.
You’ll have to figure out the amount you can deduct for depreciation, but you can hire an accountant for that. The expenses include capital items, revenue deductions, building allowances, and more.
If you see a loss, you can get a tax break on all your income. It works by offsetting the net rental loss against your other income.
The result is that, for tax purposes, you have less income. Meaning, you pay fewer taxes at the end of the financial year.
This tax advantage is one of the reasons why buying rental properties becomes appealing to investors.
Did you know that when the U.S. real estate market crashed in 2008, Australia managed to stay afloat? Even if the other countries, like Spain and Ireland, suffered from the bust, the government of Australia was able to stop house prices from falling.
One of the bold decisions they made was to provide a higher amount of grants to first-time home buyers. From $7,000, they increased the grants to $14,000 and $21,000 for established and new Australian homes, respectively.
Many opposed the massive increase. Still, it’s one of the biggest factors why home prices in Australia remained on the upward course. All the while, U.S. home prices went on a decline.
That doesn’t mean the Australian housing market is without fault. But if another housing crisis is one of your biggest concerns, you might be able to rest your fears if you buy property in the country.
3. Strong Real Estate Market
If you’re buying a property for investment, this is a good time to do it. The real estate market is booming once again after a short downturn.
It’s experiencing a sharp uptrend today; the last time Australia has had a high was in 2017.
A huge number of Australians are intending to buy a property today.
The cities that experienced the strongest growth are Melbourne and Sydney.
4. Amazing Views From Australian Homes
It’s no secret that Australia has some of the best views in the world. If you want easy access to such, then moving into the country is a wise move.
The different regions offer different types of views, so you’ll have to take that into account when choosing where to buy a property. Buying a house in Sydney, for example, will allow you to see the Sydney Opera House from various places. You can view it from the Harbour Bridge, the waters, the air, and more.
Buying a property from Villa World in Gold Coast, on the other hand, will give you easy access to some of the most spectacular views in the country. You can chill on the beach, hang out with whales, dine with views, and so on.
The other parts of Australia are easily accessible once you’ve established a home in one part. You can head to New South Wales for the weekend, for instance, or Victoria.
5. Accessible for Foreigners
Australia has strong policies about foreigners purchasing properties in the country. The Foreign Investment Review Board (FIRB) is the one that regulates investments by foreigners, whether in property or business.
Of course, you’ll have to go in through some hoops to become eligible to purchase. There are certain rules to follow, too.
For instance, you can’t buy an established home if you’re not planning to live in it full time. You can, however, buy a new-build property if you plan to only live there at times. You can also buy new ones for investment.
You need a FIRB approval for both these options, but there’s one way that doesn’t need approval. Non-residents can buy off a new plan or apartments directly from the developer. #
#THE GAME OF MATES
6. Living Standard
Australia has good performance in many aspects of human well-being. It measures great on income, education, environment, health, life satisfaction, and more. Overall, it’s a good place to look into if you want to move somewhere with a guarantee of a good life.
CAAN: Measures well for the Harbourside Huxters and foreign buyers/PR Visa Holders but for the middle class and poor incumbents has led to a decline in income and living standards!
Public transport in the major cities of Australia has a high standard. You can go anywhere using buses, trains, trams, and taxis.
CAAN: The MTR Hong Kong owned Metro regularly breaks down as does the new light rail … the heavy rail network is overladen by Visa holder patronage
If you plan to explore the other regions, flying is a good option because of the low prices of domestic flights. Buses and interstate trains are also available as even cheaper options. Trains have the added benefit of beautiful views.
Australia also has much warmer weather, so that’s a plus if you don’t like the harsh winters.
Choose Your Australian Home
Aside from reviewing the specifics of buying Australian homes as a non-resident, you also have to account for the usual considerations when buying a house.
AFTER reading this article … Reflect on what this growth of wealth in CHINA has meant for Australians …
-the High Net Worth from China buy up our property (residential, commercial and agricultural; our sovereignty, our security!)
WE recommend the following …
COPY AND SHARE THE FOLLOWING TEXT …
THEN send objections to your local MPs (State and Federal) either individually or as ‘a group’ … a group can start ‘in your street’ … a tennis club, a mothers’ group … remain independent of others!
Write letters to the Editor of local and Independent papers;
Comment on social media with that copied below and/or extracts from CAAN Website articles
SHARE CAAN Facebook/Website articles to let others know what is going on. (either on Facebook or copy text into emails)
TRY to avoid Chinese made goods; sadly we lost most of our manufacturing when Australian business went offshore!
DON’T SELL YOUR HOME!
–Real Estate Gatekeepers have been exempted, excluded from the second tranche of the Anti-Money Laundering Legislation (October 2018: Morrison Govt.)
–Australian real estate is awash with black money
SHARE your concerns with Labor, The Greens, Sustainable Australia Party, the Centre Alliance, Jacqui Lambie …
-if enough of you do this we may well pull this off! Labor will act … with a groundswell …
(Pauline Hanson and Clive Palmer talk about foreign investment but give their preferences to the Coalition)
LET others know that much of the rot began when the Howard Govt opened the migration floodgates from 70,000 to more than 200,000 p.a
-and introduced the 457 Visa with foreign workers flooding our workplaces
-currently 2.2 Million Visa holders in Australia of which 1.6 Million are visa workers
Temporary Visa holders (students, PhD students, workers, family, guardian, parents, grandparents, investors) can fly in and buy our real estate to gain a Permanent Resident Visa
Foreign visa workers take the place of Australian workers … willing to be exploited with the goal of gaining a Permanent Resident Visa … and the consequent lowest wages growth for 60 years, high youth unemployment and underemployment … the flood of visa workers replacing Australian workers … eroding our wages, conditions and the power of Unions and Australians!
The Foreign Investment Review Board (FIRB) allowing 100% sell-off of ‘new homes’ to overseas particularly China; and the loopholes in that legislation.
The number of wealthy Chinese people has overtaken the number of rich Americans for the first time, according to a report by Credit Suisse.
The bank’s annual wealth survey found there were 100 million Chinese people among the world’s top 10% of richest people, compared with 99 million in the US.
The report says the “rapid transformation of China from an emerging nation in transition to a fully fledged market economy” helped create a record number of rich people.
“Despite the trade tension between the United States and China over the past 12 months, both countries have fared strongly in wealth creation, contributing $3.8tn and $1.9tn respectively,” said Nannette Hechler-Fayd’herbe, the global head of economics and research at the Swiss bank.
Personal savings of $109,430 (£83,630) are required to be part of the top 10% of the world’s richest people. While China has overtaken America at this level, the US is still ahead when it comes to the super-rich, accounting for 40% of the world’s millionaires.
The number of dollar millionaires in the US increased by 675,000 last year to 18.6 million. This means about one in 14 adults in America is a millionaire.
In China, there are 4.4 million millionaires, an increase of 158,000 on 2018, according to the report, and 10% of the global total. There are an estimated 1.1 billion adults in China.
The Brexit-led decline in the value of the pound caused the number of UK millionaires to drop by 27,000 to 2.46 million. The UK held on to fourth place in the global league table behind the US, China and Japan with 3 million millionaires – 5% of the global total.
Commenting on the UK, the authors of the report said: “The outlook is now uncertain, with future prospects depending very much on what happens in terms of Brexit.
“Our estimates indicate a rise of 2.2% in wealth per adult from the end of 2018 to mid-2019. However, both the stock market and exchange rate showed increased volatility over the summer, reflecting the heightening of Brexit worries.”
Across the world,a further 1.1 million people joined the millionaire club taking the total to 46.8 million. Collectively, they own $158.3tn in net assets, 44% of the global total.
The report estimates 55,920 adults are worth at least $100m and 4,830 have net assets above $500m. Net assets are defined as realisable savings minus debts and does not include the value of property.
Credit Suisseforecast global wealth – which increased by 2.6% over the past year – would rise by 27% over the next five years to $459tn by 2024. The number of millionaires is expected to grow over this period to almost 63 million.
Anthony Shorrocks, an economist and author of the report, said: “With almost two decades of data at our disposal, we can see two distinct phases of wealth growth. The century began with a ‘golden age’ of robust and inclusive wealth creation. But wealth growth collapsed during the financial crisis and growth never recovered to the level experienced earlier.
“There was a seismic change at the time of the financial crisis, when China and other emerging market economies took over as the engine of wealth creation.
Meanwhile, the United States has maintained an astonishing 11-year spell of increasing wealth per adult.”
*The report says millennials – those born between the early 1980s and the late 90s – are the least well-off age group.
The report says: “Not only were they hit at a vulnerable age by the global financial crisis, its associated recession and the poor job prospects that followed, but they have also been disadvantaged in many countries by high house prices, low interest rates and low incomes, making it difficult for them to buy property or accumulate wealth.
“Studies in several countries have indicated that the millennials can expect to be worse off than their parents.”
One third of the most expensive homes in Australia have been scooped up by wealthy Chinese investors.
Thirty per cent of multi-million dollar mansions and penthouses around the country are owned by buyers from mainland China and Hong Kong, including coveted areas in Sydney and Melbourne, reported The Australian.
One luxury home in Sydney Harbour’s Fairwater estate went to a foreign investor for $100m and a mansion in Melbourne’s ritzy Toorak was snapped up for $26.25m.
But the nation’s most expensive home eclipsed previous figures after a mystery Chinese-born entrepreneur paid $140m last month for a Barangaroo South penthouse that hasn’t been built yet.
An artists’s impression of Barangaroo South property that hasn’t been built yet
An artist’s impression of one of the many rooms in a Barangaroo South property that was sold for $140m
Once completed in 2023, the buyer will use the top two-storey penthouse as their home and the sub-penthouse as a separate living quarter.
Spanning 1,600 square metres, nine-bedroom home features a master bedroom that is the same size as a small city apartment.
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The tower’s agents said many of the apartments have sold for around $40m to Chinese-born nationals.
The sale comes after billionaire developer Phillip Dong Fang Lee bought a Point Piper mansion for $39.9 in Sydney’s affluent eastern suburbs.
China shows off their strength during 70-year parad
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Sydney Harbour’s Fairwater estate went to a foreign investor for $100m
The home at 40 Wentworth Road, Vaucluse sold for about $70 million. Photo: Supplied
Photo: Domain: 2015
James Packer’s former Vaucluse abode sold in 2015 to Chinese-born Chau Chak Wing for $70m.
While the federal government placed new taxes on foreign investors, migration agent John Hu said Hong Kong nationals have expressed 50 per cent more interest in Australian properties since civil unrest began in June.
‘For enquiries, we are reaching about 1,000 a month and they are asking for different countries and of course Australia is on the top of the list.’
About 1.2 million Chinese tourists visit Australia every year.
– I said to a friend 18 months ago, to watch what happened with the Chinese money pouring into real estate, and what happened in Canada and Ireland with their bubbles. He looked at me blankly, because he didn’t really know what happened in Canada and Ireland, and only heard whispers about the Chinese Laundry.
About a month ago, he told me he now sees what has happened and what may be just around the corner.
SEARCH CAAN WEBSITE FOR:
–Anti money laundering legislation shelved
–real estate gatekeepers exempted
–visa workers; visa manipulation
–FATF and Transparency International
THE SOLUTION …. LABOR Oppose thecheap foreign labourto support capital and … persist with your Policy to implement the second tranche of the Anti-money Laundering Legislation
Yeh. The elite will tell you that you’re a whinger or a racist. To suck it up and move on. But you aren’t. What has happened to Australian income is not only abnormal. It is historic. Worse, it is only half over.
The OECD describes real net income per capita * (RNNPC) in the following way:
While money may not buy happiness, it is an important means to achieving higher living standards and thus greater well-being. Higher economic wealth may also improve access to quality education, health care and housing.
Household net adjusted disposable income is the amount of money that a household earns, or gains, each year after taxes and transfers. It represents the money available to a household for spending on goods or services.
In other words, it is the best measure of per capita living standards in the national accounts.
*Why is that you didn’t know that? Why are you plied with GDP and other useless gauges instead?
Simple. GDP is easy to generate for politicians. You just need more inputs for more outputs. The challenge is to get more from the same number of inputs, that brings home the bacon in the form of rising living standards.
International real GDP Growth Comparisons: Photograph: Lukas Coch/AAP
Prime Minister Scott Morrison and Treasurer Josh Frydenberg.CREDIT:ALEX ELLINGHAUSEN
Pollies hate *RNNPC.
It means tough decisions and sectional losers for collective gain. It means they have to actually lead rather than lie, something our current scum are incapable of.
So, instead we’re stuck with GDP as a measure of your living standards even though it is so manipulated these days that it is not only misleading, it is actively hiding an historic crash in your living standardson a par with the Great Depression.
How can I say something so preposterous? It’s a simple fact:
*In terms of the best measure of living standard that we possess, real net disposable income per capita, post-GFC Australia has its nose just in front of the US Great Depression and it’s about to fall behind.
Yeh, that’s right. All of those sepia stained photos of shabby men in trench coats lined up at soup kitchens and in the dole queue. That’s you.
How can that possibly be? How can you not know it?
It’s because the structure of economic slack is today different than it was in the 1930s. The “output gap” – a ratio of excess supply over demand – that drives high unemployment is more hidden.
In the1930s, if an industrial economy ground to a halt then mass layoffs of blue collar workers would result. It was obvious what was happening to all. *
These days it is very different.
*Our jobs are much more in the services industries which can limit hours more easily without doing layoffs.
It can also slash or steal wages more easily, another effectively hidden job cut. As well, if you are unfortunate enough to lose your job then you can work for Uber. Sure, your living standards collapse but you’re not some obvious problem for everybody else.
*And so we have The Great Australian Income Depression hidden in plain sight.
What’s caused it then? How can be addressed so that living standards rise again? Who is to blame.
*It began with the GFC. That was the first signal that the pretend economy that Western nations had created would crash as they outsourced their real economy to China. *
For a short while Australia was protected from that owing to its massive mining boom. But when that went belly up in 2011 the real trouble began. The crash was expressed through a terms of trade shock that didn’t end until 2016.
Falling iron ore and coking prices represented a massive national pay cut that, over time, was distributed nation wide in falling profits and wages.
But that was four years ago and those same commodity prices have boomed ever since so why hasn’t the income depression ended, I hear you ask? There are a number of reasons but the most important is captured in the following chart:
*Australia has carried a massive output gap – that is, too much supply – ever since the GFC but much more so since 2011 as the twin growth drivers of mining and houshold debt-funded consumption both stalled.
*As you can see, before 2008, as a nation we always allowed immigration to fall when the output gap appeared, to prevent too much competition in the labour market. But afterwards, we did the opposite and ramped up immigration.
Worse, the sources of immigration deteriorated radically from highly paid, skilled workers into desperate and cheap warm bodies from anywhere in the Third World.
*Under this macroeconomic regime, any and every time that economic slack appears it will always land on the labour market in the form of weak wages.
*The rest is history: a permanent income depression for workers as every time the output gap closes, more cheap foreign labour floods intowiden it again, despite the demand that they also bring.
*So, what began as an external shock under Labor, which was too idiotic to cut immigration lest it be labelled racist, has since morphed into a worker-devouring Kracken of permenent Coalition policy that today has Australia rivaling Great Depression USA for falling living standards.*
Don’t be fooled into thinking that it had to be this way. It didn’t. Although there was always going to be some adjustment after the mining boom as national competitinvess was repaired, the use of mass immigration to hide the correction has ensured that certain sectors are protected while other suffer more than they should.
Households and tradable sectors have born the brunt of the adjustment while property, banking and retail (until recently) were protected.
*This happened instead of the far better national interest policies of productivity reform, competitiveness reform and crashing one’s own currency.
Alas, the same policy bastardry it is still happening and the income depression is therefore not over.
*Ahead, the Chinese economy is going to slow to a virtual standstill and the second leg in the falling commosity price story will transpire, denuding the nation of huge slabs of income once again.
With the Coalition determined to pump in cheap foreign labourto support capital, while Labor inexplicably cheers it on, that will again direct all of the adjustment onto labor as Australia’s Great Income Depression runs for another lost decade.
Leaving you far worse off in terms of the magnitude of drop in your living standards than those sorry gents in the faded pictures of 1940.