|IndyWatch Australian Economic News Feed Archiver|
IndyWatch Australian Economic News Feed was generated at Australian News IndyWatch.
By Amanda Froelich
By 2050, the worlds human population is expected to reach 9.7 billion. Considering 795 million people still go to bed hungry each evening, this is concerning. Fortunately, sustainable solutions exist, and they include vertical gardening and permaculture farming among others. The latter has been employed on a one-acre farm in Australia and reportedly works so well, enough produce is grown to feed 50 families.
The Limestone Permaculture Farm may be minute in size, but it produces enough produce to feed dozens of families. Started when wife Nici developed an illness, the farm now educates the local community about permaculture and even offers internships.
TreeHugger reports that the Coopers have been farming for close to a decade. At Limestone Permaculture Farm, they grow organic produce, raise sheep goats and chickens, keep bees, and even build with recycled materials. Much of the farm is powered by energy from wood, water, and the sun.
The premise of permaculture is to mimic the social design principles observed in natural ecosystems. Opposite of large-scale mono-cropping (growing one crop at a time), permaculture farming creates symbiosis so a variety of plants may thrive. Some of the permaculture principles implemented by the Coopers include swales, a chicken tractor and even self-seeding edible ground cover.
Reportedly, husband Brett discovered permaculture over a decade ago. He told the Newcastle Herald,...
Australia is plotting an ambitious new Digital Economy initiative and blockchain is part of the plan, a new paper reveals.
China has begun rounding up and detaining Bitcoin executives who run exchanges in the country, amid a huge crackdown against cryptocurrencies.
As the war on Bitcoin continues, Chinese media is reporting that executives who operate Bitcoin exchanges are being told they are not allowed to leave Beijing whilst the government conducts an investigation.
A number of informed sources say the executives of special currency trading platforms are not allowed to leave Beijing to cooperate with the investigation. In accordance with regulatory requirements, trading platform shareholders, the actual controller, executives and financial executives need to fully cooperate with the relevant work in the clean-up period in Beijing.
Trustnodes.com reports: Australias Financial Review (AFR) says the above has been confirmed with them by a source close to one of the biggest exchanges, Huobi, which told them its founder, Li Lin, was required to report to the authorities and cooperate with their work at any time.
The draconian measure is undertaken following a decision by Chinas Communist Party to close down all crypto exchanges, with trading volumes in the country dropping considerably.
Chinese trading volumes now account for only around 5% 10% of bitcoins or ethereums global trading volumes. With price there significantly lower. Leading CoinMarketCap to exclude them from calculations of average prices.
Its no secret that I am a big believer in gold.
But today, I want to take a look at the case against gold.
Starting from a low of about $250 per ounce in mid-1999, gold staged a spectacular rally of over 600%, to about $1,900 per ounce, by August 2011.
Unfortunately, that rally looked increasingly unstable towards the end.
Gold was about $1,400 per ounce as late as January 2011.
Almost $500 per ounce of the overall rally occurred in just the last seven months before the peak.
That kind of hyperbolic growth is almost always unsustainable.
Sure enough, gold fell sharply from that peak to below $1,100 per ounce by July 2015. It still shows a gain of about 350% over 15 years.
But gold has lost nearly 40% over the past five years. Those who invested during the 2011 rally are underwater, and many have given up on gold in disgust.
For long-time observers of gold markets, sentiment has been the worst theyve ever seen.
Yet its in times of extreme bearish sentiment that outstanding investments can be found if you know how and where to look.
So far this year, theres already been a change in the winds for gold.
A change that, in many ways, I predicted in my most recent book: The New Case for Gold.
But today, I want to show you three main arguments mainstream economists make against gold.
And why theyre dead wrong.
The first one you may have heard many times
Argument #1: Not enough gold to support the financial system
Experts say theres not enough gold to support a global financial system.
Gold cant support the entire worlds paper money, its assets and liabilities, its expanded balance sheets of all the banks, and the financial institutions of the world.
They say theres not enough gold to support that money supply; that the money supplies are too large.
That argument is complete nonsense.
Its true that theres a limited quantity of gold. But more importantly, theres always enough gold to support the financial system.
But its also important to set its price correctly.
It is true that at todays price of about $1,300 an ounce, if you had to scale down the money supply to equal the physical gold times 1,300, that would be a great reduction of the money supply.
That would indeed lead to deflation.
But to avoid that, all we have to do is increase the gold price.
In other words, take the amount of existing gold, place it at, say, $10,000 an ounce, and theres plenty of gold to support the money supply.
In other words, a certain amount of gold can always support any amount of money supply if its price is set properly.
There can be a debate about the proper gold price, but theres no real debate that we have enough gold to support the mone...
Uh-oh. Jamie Dimon and the crypto haters better pay attention. Japan is making them look behind.
The banks there are getting together to launch something called the J Coin.
Its a digital currency, and its designed to mimic the national one the yen.
The banks there are working overtime to protect their market share from the encroachment coming from Apple Pay and the Chinese behemoth Alipay.
These banks know if they dont carve out a niche in this new market, theyll get left behind.
J Coin would offer commission-free remittances, instant transfers, and cheaper overseas movement, for starters.
I told readers of Small Cap Alpha recently that we have to follow whats happening in the crypto market even if you dont want to risk a penny on it.
This is because cryptos have so much potential to erode existing revenue streams for established companies.
For example, if you happen to own shares in the Australian Securities Exchange [ASX:ASX], you should check out a guy called Professor Mike Aitken.
Hes developed a new asset trading system called digi.cash, which he says would bring instant settlement and practically zero cost to trading.
That could be a problem for the ASX, considering it earns around $300 million a year from clearing and settling the cash equity and derivative markets, according to The Australian Financial Review.
The monetary system hasnt sat still for 5,000 years, so theres no reason to think it cant shift again away from what we have now. Im pretty sure were heading into a new phase now digital, or crypto.
Physical cash is becoming irrelevant, whether we like it or not. But it does pose various problems. For example, how long before governments and the elites look to lock us all in a closed loop where there are no private transactions?
Theres latent potential now for official currencies to go completely digital and all of them will be tracked. Everybody wants your data, and to know what you do.
Governments are likely to bring their legal tender laws to bear on cryptos in the same way they force us to use the official currencies of today.
I have no doubt the market can provide a secure, private cryptocurrency. But governments would make it illegal for corporations and companies you deal with to accept it. The usual coercive stuff.
If you want to pay your electricity bill, youll have to use the crypto the government wants you to use. Something like that.
A Swiss bank, for example, could hold physical gold in a vault, and issue tokens relative to the size of the holdings. Its what exchang...
The co-authors on this paper (pdf) are Andrew Leigh and Mike Pottenger, here is the abstract:
The paper estimates long run social mobility in Australia 18702017 tracking the status of rare surnames. The status information includes occupations from electoral rolls 19031980, and records of degrees awarded by Melbourne and Sydney universities 18522017. Status persistence was strong throughout, with an intergenerational correlation of 0.70.8, and no change over time. Notwithstanding egalitarian norms, high immigration and a well-targeted social safety net, Australian long-run social mobility rates are low. Despite evidence on conventional measures that Australia has higher rates of social mobility than the UK or USA (Mendolia and Siminski, 2016), status persistence for surnames is as high as that in England or the USA. Mobility rates are also just as low if we look just at mobility within descendants of UK immigrants, so ethnic effects explain none of the immobility.
Social mobility is indeed difficult to pull off. Hat tip goes to Ben Southwood.
The post Greg Clark visits Australia and finds high rates of status persistence appeared first on Marginal REVOLUTION.
In Part 1 of this mini-series When relations
within government were sensible the US-Fed Accord Part 1 I
examined the pre-1951 agreement between the US Treasury department
and the US Federal Reserve Bank, which saw the bank effectively
fund the US Treasury. The nature of that relationship, which began
when the central bank was formed in 1913, changed in 1935 when the
legislators voluntarily chose to change the capacity of the
currency issuer to buy unlimited amounts of US Treasury debt
directly to one of only being able to purchase the debt in the
secondary markets once issued. But the effect was the same. The
central bank could control the yields at any segment of the bond
maturity curve at its will. The shift in 1935 was the result of
conservative forces that were intent on derailing the governments
capacity to use the consolidated central bank/treasury to
efficiently advance well-being. They wanted political constraints
placed on the Treasury, such that it would have to issue debt to
the non-government sector before it could spend, which they knew
was an arrangement (similar to formal debt ceilings) that could be
used to pressure the government towards austerity. By the time the
Korean War ensued, these conservative forces were winning the
political debate and big changes were to come, which would limit
the fiscal capacity of the US government to this very day. The
result has been an inefficient fiscal process prone to capture by
conservatives and certainly not one that a progressive would
consider to be sensible. I analyse that shift post-1942 in this
blog, which is Part 2 in the series. In Part 3, we pull the story
together and reveal what was really going on.
The first graph shows the yield behaviour of long-term government bonds from the end of WW2 to the late 1950s. The vertical line (Treasury-Fed Accord) marks a discrete shift in policy, which we will discuss in this Part and the final Part of this mini-series.
Clearly, the pegged arrangement was effective (it was abandoned, as we will learn, in 1951).
The US Federal Reserve Bank was not necessar...
Accurate and consistent energy auditing is critical to the uptake and quality of energy efficiency projects as it is often used as the basis for business case justification, project design and as a baseline to measure post-upgrade savings. Presented in partnership with the NSW Office of Environment & Heritage, the EEC's Energy Auditing to the Australian Standard training program gives energy audit practitioners the skills and knowledge to deliver energy audits that meet with Australian Standard 3598:2014
Can Putin Stand Up To Washington?
Drake University Emeritus Professor of Economics Ismael Hossein-zadeh explains that the reason Russian President Vladimir Putin so often blinks when Washington confronts him is that the ruling oligarchs in the US and Russia are members of the same financial elite. The more than one hundred Russian billionaires are financially integrated into the West and are able to elevate their interests above Russian national interests.
If this is correct, then Russias only alternative if Russia is to remain a sovereign country and escape being another Washington puppet state like the UK, all of Europe, Canada, Australia, and Japan is to nationalize without compensation the holdings of the Russian billionaires. Most of them stole their fortunes in the turbulent days of Soviet collapse and privatization. The Russian people should steal them back.
What's behind the recent national security-driven decision to block a Chinese acquisition of a U.S. firm?
4. MIE: Go see Moana in Maori (NYT).
Australia's securities markets regulator is weighing the use of blockchain as part of broader data strategy.
Bitcoin and other cryptos are no longer double taxed in Australia
Queensland Premier Anna Palaszczuk has followed Bill Shorten in blaming privatisation for the woes of the electricity network. Shes basically right, although theres much more wrong with the National Electricity Market than that.
Equally importantly, in terms of getting a good outcome, shes on a political winner in the fight with the Turnbull government and particularly the Abbott faction pulling Turnbulls strings.
No one fully understands whats going wrong with energy policy, but Australians love renewable energy and hate privatisation. Both of these judgements are validated by experience. Renewable energy has overdelivered on its promises while privatisation has (at best) undelivered and more commonly made matters worse. So, the idea that the LNP can win the debate on energy policy by bashing renewables and attacking public ownership as socialism seems pretty implausible.
Edward Hopper Automat 1927 Australia: A Delusional, Stuffed, Basket Case, Bubble, Third World Economy (MB) With QT On The Way, This Market Is Headed For A Brick Wall (Boockvar) Where Deutsche Bank Thinks The Next Financial Crises Could Happen (CNBC) Just 4% Own Over 95% Of Bitcoin (HowMuch) MPs
Yesterday, we told you about a special report Nick Hubble has prepared on why gold is the perfect investment for any Australian right now.
Its called The AUSSIE Case for Gold. And you can get a sneak peek here.
Nick is the Editor of Jim Rickards Strategic Intelligence advisory here in Australia.
And while it seems people all over the planet have their heads firmly stuck in the bitcoin frenzyJim and Nick have been quietly investigating the REAL threat to the world economy.
Australia is a key part of it.
You can think of this report as the missing chapter of Jims bestseller, The New Case for Gold.
So, were releasing a special, 2017 limited print run package. Why? To help navigate your wealth through what Jim calls the next monetary reset.
This is something that could finally bring down the global eight-year-old bull market.
What could be the trigger?
As Jim explains below, one factor people still seem to ignore is ever-rising US national debt, which, as of today, is over US$20.1 trillion
The blame for this comes from the cost of major wars, the 2008 financial crisis, and a bevy of irresponsible government spending.
But, as much as we like to criticise government for being completely irresponsible with our money, the past is in the past.
What matters now is how we get out of this mess.
Thats why I want to share with you Jim Rickards latest take on the situation.
Read on below for the current state of the debt crisis, but, more importantly, a clever first step on how we can get out of it
Right now, the United States is officially $20 trillion in debt. Over half of that $20 trillion was added over the past decade.
And it looks like annual deficits will be at the trillion-dollar level sooner rather than later when projected spending is factored in.
Basically, the United States is going broke.
I dont say that to be hyperbolic. Im not looking to scare people or attract attention to myself. Its just an honest assessment, based on the numbers....
September 20, 2017: A new economic study has completely undermined previous claims that the Trans-Pacific partnership agreement without access to the giant US market would still result in significant economic gains for the remaining 11 countries.
The study has emerged as the TPP-11 countries meet again in Japan on September 21 22 to negotiate possible changes to the TPP text without the US. Some governments only agreed to US proposals like increased monopolies on medicines and copyright, and foreign investor rights to sue governments, in order to gain access to the US market. They want to drop or renegotiate these clauses.
The new study by Rashmi Bunga, a senior economist working for the United Nations Committee on Trade and Development, has been published by the University of Munich.
The study is a detailed critique of the attached paper by Kenichi Kawasaki from the Japanese National Graduate Institute for Policy Studies. The Japanese and other TPP governments have been using this paper to argue that there would still be economic gains from an agreement between the 11 remaining TPP governments without access to the giant US market.
The UN economists paper shows that the economic modelling used in the Japanese paper rests on a series of completely unrealistic assumptions that ignore negative outcomes from trade agreements and always come up with a positive result (p. 3).
These assumptions include that there are no unemployment effects and no trade deficit effects, which are in fact two of the main real-world negative impacts resulting from trade agreements.
The UN study also shows that Japanese paper vastly exaggerates positive economic outcomes resulting from removal of non-tariff measures in the TPP, by assuming that all such measures will increase overall economic welfare and ignoring any negative effects (pp. 4-5). But some of these are the most controversial clauses on medicines and copyright monopolies that other governments are rejecting because of their negative effects.
The nontariff measures in the TPP include increased medicine monopolies which will delay the availability of cheaper medicines and increased copyright monopolies which will increase payments to copyright holders at the expense of consumers. Both the UN paper and studies by Australias Productivity Commission show that these will increase costs to governments and consumers, and have a negative effect on the ec...
I am travelling all of today to the US for the MMT Conference in Kansas City
which begins on Thursday. I hope to see some of you at the
conference which will be a major development in our program of work
and advocacy. From there I am onto London for the British Labour
Party Conference presentation (Monday) and the book launch of my
latest book (with Thomas Fazi) Reclaiming the State: A
Progressive Vision of Sovereignty for a Post-Neoliberal World
(Tuesday see below for free ticket access). For details of all the
events associated with my speaking tour in the next fortnight see
While I am away, the blog might be rather sketchy. The itinerary is very tight with lots of travel which is disruptive for considered research and writing.
I also wont be able to attend to comments in the next 24 hours or so.
At the very least, while I am away, I will keep a daily diary and post audio, interviews, photos, videos etc where possible.
But for now some music .
On Thursday night I am playing guitar in Kansas City with a jazz trio (piano, bass, drums). This is the sort of stuff we will be exploring although it might go from this to some things a little more raucous as we go!
It is one of my favourite records of all time. A Blue Note label jazz classic.
Thursday, September 21: Kansas City International Conference of Modern Monetary Theory see program for details.
Friday, September 22: Kansas City MMT conference, as above.
Monday, September 25: Brighton (UK) I will be speaking at a fringe event Economics for a Progressive Agenda associated with the British Labour Party Annual Conference.
Location: The Brighthelm Centre, North Road, Brighton, BN1
Time: The event will run from 14:00 to 17:00.
Entry: Free. All are welcome.
See RSVP page.
Also The fringe event that promises to empower Labours Progressives against neoliberalism for more details and backgrou...
You cant stop things like the blockchain. It will be everywhere, and the world will have to readjust. World governments will have to readjust John McAfee, Founder of McAfee As youre aware by now, the worlds largest corporations and most governments are already testing the incredible potential of it. Australia, Japan, and Germany are 
The post Blockchain & Cryptocurrencies Dont Say You Didnt Know appeared first on The Last American Vagabond.
By Fiona MacDonald
For the first time ever, scientists have stored light-based information as sound waves on a computer chip something the researchers compare to capturing lightning as thunder.
Light-based or photonic computers have the potential to run at least 20 times faster than your laptop, not to mention the fact that they wont produce heat or suck up energy like existing devices.
This is because they, in theory, would process data in the form of photons instead of electrons.
We say in theory, because, despite companies such as IBM and Intel pursuing light-based computing, the transition is easier said than done.
Coding information into photons is easy enough we already do that when we send information via optical fibre.
But finding a way for a computer chip to be able to retrieve and process information stored in photons is tough for the one thing that makes light so appealing: its too damn fast for existing microchips to read.
This is why light-based information that flies across internet cables is currently converted into slow electrons. But a better alternative would be to slow down the light and convert it into sound.
And thats exactly what researchers from the University of Sydney in Australia have now done.
The information in our chip in acoustic form travels at a velocity five orders of magnitude slower than in the optical domain, said project supervisor Birgit Stiller.
It is like the difference between thunder and lightning.
|IndyWatch Australian Economic News Feed Archiver|
IndyWatch Australian Economic News Feed was generated at Australian News IndyWatch.
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