Hoarding Without Consequence

Hoarding Without Consequence by Renegadeeconomists on Mixcloud

Renegade Economists Show 368

As broadcast on the 3CR airwaves 5.30 – 6pm Wednesdays.
Subscribe to the free weekly podcast.

Show Notes

Catherine Cashmore discusses the 7th Speculative Vacancy report. Beyond the staggering 64, 386 empty properties the report quantifies, we discuss some of the finer points of inefficient land use and its effects.

We also delve into real estate theory and demand assessment – how developers adjudge as to when and by how many properties they will ‘free’ in the next ‘staged release’. One developer here is up to stage 128 and has barely started. Miraculously prices keep going …..up! Somehow this is not price manipulation according to the competition commission. Adding insult to injury, the MSM blames affordability on the Housing Supply Crisis.

Of course this hoarding has little consequence for property speculators. They pay barely $1600 on holding charges (Land Tax and Council Rates) vis $60,000 in capital gains.

The burden of such behaviour is instead placed on the community, where record high mortgages (spread over 30 to now even 50 years) reduce local expenditures, sending the domino of lower local employment, increased commuting time and greater survival imperatives on a world already drowning in insecurity.

It’s always a laugh on the Renegade Economists.

Related Links

Catherine Cashmore’s Specualtive Vacancies event presentation and audio

Press release
The related media can be seen on the report page linked above.

Williams Landing investor data
Williams Landing neighborhood analysis

G20 Policy Exclusions

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Renegade Economists Show

As broadcast on the almighty 3CR airwaves 5.30 – 6pm Wednesdays.
Subscribe to the free weekly podcast.

G20 Policy Exclusions: Gary Flomenhoft (PhD Affiliate, Uni QLD) joins to discuss the G20 world where inclusionary growth, rampant privatisation and a flat earth are fair game for renegade economists. Additional issues include peak oil, tax evasion, corporate control and the global land bubble.

G20 Policy Exclusions by Renegadeeconomists on Mixcloud

Show Notes
Herman Daly
Inclusive growth
G20 Oil exploration
Intra-company debt financing tax dodge
LuxLeaks – follow @neilchenoweth

Read about our 7th study in Housing Vacancies – Speculative Vacancies 7 – Empty Investor Homes Ignored. Report author Catherine Cashmore will be on next week’s show.

Photo – Enough Food IF

ASX Investigations, Tax Evasion

ASX Investigations – Tax Evasion to Land Banking by Renegadeeconomists on Mixcloud

Renegade Economists show 366

In the build up to the G20, Dr Mark Zirnsak, Tax Justice Network discusses his report on tax evasion – ‘Who Owns the Commonwealth’. We finish with another report based on publicly available data (via ASX listed company reports), David Collyer reports on Englobo Land Banking Profits During a Housing Supply Crisis. See you at the Speculative Vacancies 7 report release, Wed Nov 12th.

Check more show notes on our sister Prosper Australia site.

The ABS a national treasure

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Finding the Signal in the Noise by Renegadeeconomists on Mixcloud

Renegade Economists Show #365

Finding the signal in the noise: Dr Jack Barton & Dr Bob Stimpson (aurin.org.au) join to discuss the good news story behind big data. We cover the macro analysis possible with geo-spatial analysis, the importance of quality data and the relevance of location, location to enabling better decision making. Elsewise we are flying blind!

Show Notes

Prof Robert Stimson’s brief CV – 49 books and 450 scientific papers!

During  the show Dr Stimson makes the claim ‘the Australian Bureau of Statistics is a national treasure.’ We couldn’t agree more and hope that its’ budgetary position can be prioritised.

Dr Michael Vardon, former head of the Australia’s System of Environmental Economic Accounting – a world leading report – has appeared on this show a number of times in shows 275 and 334.

AURIN is funded by the Australian Government through the Education Investment Fund, and the National Collaborative Research Infrastructure Strategy (NCRIS). The $24 million AURIN initiative is building the e-research infrastructure to enable better understanding of the current state of Australia’s cities and towns and to meet the challenges they face.

AURIN is a national collaboration delivering e-research infrastructure to empower better decisions for Australia’s urban settlements and their future development.

I finished the show imagining what our future might be like if the geo-spatial analysis of seeing who has what disease (or which community has few parks)  is cross referenced with the cost-benefit analysis of various infrastructure projects. Citizens could click another layer on a website showing where the marginal seats are and who received what infrastructure spend. An enhanced sense of transparency will occur, bringing us closer to the type of economic democracy we demand.

Important links:

ANZLIC

Englobo – Land banking profits during a housing supply crisis – on tonight.

The 7th Speculative Vacancies report, RSVP Nov 12th

Jack Barton informed that Anthony Townsend is a leading thinker on the interface between technology, planning and decision making.

Photo courtesy Pieter Pieterse

 

Taibbi’s Divide a warning to Australia

the Divide
An email from listener, radio show guest and long time Prosper member John Jamieson, too good to hide in my inbox.

I managed to track down a copy of “The Divide” written by Matt Taibbi and published by Scribe Publications earlier this year.

This book really offers an insight into where Australia is going, as we have set our agenda to following the USA down a similar path to disaster.

Over the last two decades, America has been falling deeper and deeper into a statistical mystery (possibly rubbing off into our own ABS!). As poverty has gone up, crime rates have come down, but the prison population has doubled (I think OZ is following suit). Certainly our local regional prison in Albany is currently about 60%-70% over its design capacity at the last count.

Meanwhile fraud by the rich wipes out 40% of the world’s wealth – yet the rich get massively richer and no one has gone to jail!

In search of a solution, journalist Matt Taibbi discovered the Divide, the seam in American life where two troubling trends – growing wealth-inequality & mass incarceration – come together. Basic rights are now determined by wealth or poverty, allowing the hyper-wealthy to go unpunished, whilst poverty itself has been turned into a crime!

In his book “The Divide”, Taibbi takes us on a galvanising journey through both sides of the American justice system and uncovers the startling looting that preceded the financial collapse as well as the story of a whistle-blower who got in the way of the largest banks in America, only to find herself in the crosshairs. On the other side of the Divide, he shows how the newly punitive welfare system treats its beneficiaries as thieves, whilst stop-and-frisk practices have led to people being arrested for simply standing outside their own homes having a quiet smoke in the evening!

Taibbi lays bare America’s perverse new standard of justice – a system that devours the lives of the poor, turns a blind eye to the destructive crimes of the wealthy, and implicates us all. We in Australia are implicated by association, as we often blindly go “wham, bam with Uncle Sam!”

The book focuses on the banking and financial structures that have risen into a position where the large private banking cartel in the US & its connection with the UK banking cartel have completely corrupted the financial system, after the Clinton administration removed the Glass-Steagall Act from their legislation, which formerly had some semblance of stabilising the banking fraternity. [Glass-Steagall was introduced by the Roosveldt government to re-generate the US economy after the depression of the 1930’s].

He demonstrates how the derivatives market sponsored the massive real estate bubble that then led to the US government bailing out all the private banks who were “too big to fail” to the tune of about $3 – $4 trillion dollars; these banks then manipulated these “bank guarantees” to make further in-roads using methods that should have resulted in their owners and directors all going to jail for at least 200 years, instead they were simply given some small fines of a few million here and there (& probably the fines were paid from the money they were given by the government!)

It seems like our own financial system is closely aligned with the way the US & UK operates and we should be not supporting and giving any guarantees to all those banks that are supposed to be “too big to fail”. Even in the UK they are trying to re-institute Glass-Steagall, but so far without success. The US should have simply nationalised the banks along the lines of our old “peoples bank” Commonwealth Bank of Australia, or the existing Peoples Bank of China.

The Chinese government banking people, I understand, are at present financing a huge 633-unit high rise building project in Melbourne, I suspect to chew up quite a few millions of their US dollars that they currently hold and want to get rid of in quite a smart way to help their domestic pension funds. In the meantime the BRICS international finance group have been launching its own path into the future in global finance [BRICS is the “cooperative” financial model of Brazil, Russia, India, China, South Africa] with an Asian Infrastructure Bank. This has been set up to promote infrastructure and development in areas of the world previously being raped and pillaged by the “western democracies”.

When I’ve spoken to Asian business men they see the US as a “dying corpse” and that Australia is the pot of gold at the end of the rainbow.

See if you can lay hands on a copy of The Divide and I’m sure it will give some food for thought on the Renegade Economists program, broadcast on 3CR, Melbourne. This book is a devastating account of the inequality in America’s justice, immigration and social-service systems; it’s probably what Abbott & Hockey picked up last time they were over in the USA, so that they could frame their new policy programs!

Image – Molly Crabapple

Opportunity and Equity