When a trading “rabble” hit financial markets in late January, with retail investors – the “Main Street Traders” – putting a squeeze on Wall Street’s squeeze of GameShop, financial journalists were furious on behalf of the merchants of debt who offer nothing but their own enrichment.
In light of worrying developments, I review the trends putting pressure on our democratic institutions. Fortunately, new policies and serious protests can halt the trends and bring out the better nature of voters. However, such movements are not in sight. (more…)
While many have described the 2020 budget as designed for men (Ross Gittins, Blokey budget reflects core values, SMH, 21 October 2020), it goes deeper than that. This budget was not crafted from thoughtlessness; its intimidating outcomes were intended. (more…)
The US Fed Chair Jerome Powell last week buried wage inflation targets. Always terrible, does this burial mean new hope?
The bag of Covid-19 policy responses bulges with inconsistencies. The first people to admit they knew the least about this virus strain were epidemiologists who knew the most. But how frustrating when politicians shift positions in pretence they know (anything).
As countries world-wide shut down, short-sellers scurry around like thieves in the night. Why are they dangerous and what could be done?
Australia’s tragedy has brought a scandal about hard issues: Morrison separated politics from government too publicly. (more…)
Was it surprising to hear AUSTRAC’s allegations that Westpac breached money-laundering laws 23 million times? When the LNP won government in May 2019, bankers cheered reinstalled Ministers, delighted that the Royal Commission’s February recommendations were unlikely to be fully implemented. Conditions were in place, then, with the unfolding script already tattered. Less discussed was the meaning of “money laundering”. (more…)
Central banks are rarely discussed until booms turn to busts. Like many others, politicians turn on central bankers in ignorant blame, particularly when central bank (CB) messages are unattractive. The LNP detests the Reserve Bank of Australia’s urging that it fosters higher wages and engages in long-term investment. But what can CBs actually do? (more…)
Public benefits in restraining business-financiers (the modern incarnation of Robber Barons defined by US economist Thorstein Veblen) are rarely debated, despite corporate corruption and social injustices. ‘Politics of envy’ or ‘unfunded empathy’ spin, shouts down policies aiming to curb social-economic destruction. Pecuniary power-and-control motives are not empathetic. But, controls on looters might see less devastation of the people and land.
Liberal UK Prime Minister Gladstone, 1868-94, grumbled that William III put the state in a position of ‘subservience’ to induce ‘monied men to be lenders’ in 1694. As Australia faces recession, the Government bows to every bank demand for low wages and flatter taxes, to foster more household debts, rather than a fair and cautious economic policy.
When Morrison says, ‘Labor cannot manage money’, he must deny banks’ large-scale 2007-2011 crises – GFC – an outcome of Liberals’ mismanagement of money. Incoming Labor reversed looming depression in a brilliant world-first. The myth, john-menadue-the-myth-that-the-liberals-are-better-economic-managers/ P&I, relies on crucial cover–ups. Some are illustrated in the Financial Sector Royal Commission that Liberals restricted before it started. (more…)
The Coalition’s strategies for 2019’s election include reiterating Howard-Costello slogans. Australia’s 1996-2007 racist divisiveness is a factor while its economic policies copied decades of attacks (UK and USA) on social justice. But the sainted banks delivered the GFC just as Howard lost his own seat. Rudd-Gillard prevented the worst finance crisis fallout of other rich democracies but could not reverse Howard’s tax cuts for the affluent, largesse to private schools, lards of privatisations, plus a Goods and Services Tax on everyone else, while unions’ ability to gain fair wages was reduced. Can Howard slogans resonate in 2019? (more…)
When Ken Henry (NAB Chair) tried to dismiss SC Rowena Orr’s questions about the NAB top management’s significant compliance breaches with “Well, we could have fired everybody, I suppose”, he was correct. Hayne did not call his bluff. Henry had a duty to fire them, since the Gillard legislation about the clients’ best interests was saved, though later PM Abbott tried his best to ensure that banks need not serve people’s best interests. That they plainly did not (anyway), is a story of former Treasurer Costello’s making. (more…)
Times are dangerous for the ABC, at least to those who appreciate fair, independent journalism. My example is Emma Alberici’s report on corporate tax cuts, which was stating what is well-known across the OECD for years. In addition, taxes are no charity. (more…)
The Hayne Royal Commission has, so far, found not just “misconduct”, but a long list of dubious activities over previous money laundering and insider trading cases. Such tactics are common to the largest finance centres, Wall Street and the City of London. (more…)