tag:blogger.com,1999:blog-9716997.post1679485099456884852..comments2024-03-15T23:30:38.471+11:00Comments on Lindsay's Lobes: Rate cuts are bad policyLindsay Byrneshttp://www.blogger.com/profile/11030132436987752741noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-9716997.post-37531301953066759542015-03-13T14:40:41.737+11:002015-03-13T14:40:41.737+11:00http://www.positivemoney.org/our-proposals/creatin...http://www.positivemoney.org/our-proposals/creating-sovereign-monetary-system/Rachaelhttps://www.blogger.com/profile/09986426250922969714noreply@blogger.comtag:blogger.com,1999:blog-9716997.post-49587723511991415332015-03-13T14:39:18.617+11:002015-03-13T14:39:18.617+11:00That's fantastic that you're still getting...That's fantastic that you're still getting letters published in the fin review. Nice one!<br />Have you heard of <br />http://www.positivemoney.org. They're suggesting "sovereign money creation" as an alternative to existing monetary policies. Obviously the UK and Australia are quite different bit I thought their paper "Sovereign Money" was interesting. How would this apply in Australia? Rachaelhttps://www.blogger.com/profile/09986426250922969714noreply@blogger.comtag:blogger.com,1999:blog-9716997.post-16957473848561125762015-02-10T13:23:47.131+11:002015-02-10T13:23:47.131+11:00Hi Susan
Thanks for your interest and the article...Hi Susan <br />Thanks for your interest and the article which I read with interest. I do agree with some of the sentiment expressed in that we are close to a tipping point with debt levels still no better than the position just prior to the GFC. <br />But in my view this requires governments and their citizens to adjust to a policy predicated on the more realistic anaemic demand that is likely to persist. This arises from the supply side , as a consequence of an excess of commodities/capital to demand, afflicting many developed economies. <br />You asked my opinion on the article and at the same time bemoaned his lack of detail in relation to international finance. <br />Let me attempt to outline what I think is the case from my perfective. Firstly I think it is unwise to take a broad brush approach and assume one shoe fits all as for the most part both Australian and Canadian banks and their central bankers have avoided the excesses which are evident elsewhere. Floating exchange rates ensure that prices match supply and demand and there is no need to introduce quantitative easing measures, as last resort-currently being implemented by the EU. <br />You also can’t simply look at debt levels without examining the underlying assets represented by that debt. <br />As you would be aware there is nothing wrong with a government issuing bonds to finance future investment in improved facilities and essential infrastructure so long as there are quantifiable benefits which will exceed the interest cost in the future. Just as it is incumbent where there is excessive private capital, for that excess to be returned to the true owners who are of course, the shareholders. In that respect the problem of past and present excesses has more to do with the executive managers of these large corporates, who are, after all, were just employees, with often overly generous share options and who don’t always share equally in the risk. The European Union was a totally flawed concept right from the outset, with the UK wisely electing to stay out of the euro zone. The lack of supervision and governance by some states was nothing short of scandalous. <br />Best wishes <br />Lindsay Byrneshttps://www.blogger.com/profile/11030132436987752741noreply@blogger.comtag:blogger.com,1999:blog-9716997.post-977415556406738602015-02-08T05:44:24.897+11:002015-02-08T05:44:24.897+11:00Hi Lindsay,
Even though I've spent some time e...Hi Lindsay,<br />Even though I've spent some time every morning for years reading articles about international finance I'm still at a loss when it comes to the details. I think the banks and governments are deliberate in their obfuscation of the essence of what's being done. It's been a long time now since money had anything to do with material wealth and what does happen now is money making more of itself through bonds, buybacks, certificates and whatever else can be used to justify adding zeroes. I've understood for a while now that the financial policies of individual governments have little or nothing to do with their populace. I wonder what you'll think of <a href="http://www.theautomaticearth.com/2015/02/debt-in-the-time-of-wall-street/" rel="nofollow">this article</a> I read a couple of days ago.<br />All the best<br /><br />susanhttps://www.blogger.com/profile/16747450215034568033noreply@blogger.com