World Bank says collapse has arrived

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Global poverty media call. 10/11/08
Creative Commons License photo credit: World Development Movement

The reality is finally hitting. World Bank says collapse has arrived:

global economic activity would shrink “for the first time since World War II, with growth at least 5 percentage points below potential”.

This statement is an important recognition that the world economy and with that the security of our livelihoods are under its biggest threat, perhaps ever. Will this lead to thinking outside the box? Unfortunately the UK and the US have taken to printing money (a recipe for hyper-inflation disaster), such is the limit to their two dimensional economic tool box.

This is an attempt to maintain the wealth gap, rather than allow market forces to wipe out the greedy for their exuberant behaviour.

Listen to what Hudson has to say here on Renegade Economist TV. Make a cup of tea to hear him speak at length on “The Way We Were and What We Are Becoming”.

We need to reduce the amount we are paying in rent/ mortgage asap. Then we will have a enough for food and fun, savings and investment. Business can start up without the monthly threat of tying ends together to make payments for double the long term rental average (Australia).

Eyebrows raise when one reads that 130 developing countries, a massive 67% of the world’s nations (and probably 80% of its population), will suffer dearly from the policy black holes of the Washington Consensus.

Some say that more foreign aid must be given as payback for the failure of neo-liberal economics to deliver the goods. With over $US 1 trillion in aid since WW2 having taken these countries BACKWARDS, would it not be time to look outside the square?


Letter to the Socialist Alternative

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Flame of the Revolution, Halle, DDR 1988
Creative Commons License photo credit: sludgegulper

In Socialist Alternative, issue 13, February-March 2009, which was circulated widely in Orientation Week at the University of Queensland, the first page proclaims that “Capitalism Caused this Disaster”.

The correct slogan should be that “Land Parasitism caused this disaster”. At least two thirds of the cost of urban houses and buildings is the cost of the land, which is why 80% of the wealth of this country is owned by, at most, 15% of its inhabitants.

Capital is a major factor in increasing the wealth of the nation, but land ownership is the major factor in halting progress, creating poverty and unemployment. The building of roads, factories, houses, etc. depends on access to land and all are dragged back by the cost of land. Thus, land monopolisation is the real reason for the unsustainable loans and mortgages forced upon businesses and home owners and the soaring cost of rented accommodation which is driving so many Australians into homelessness.

Instead of penalising production by evil and crazy taxes such as income tax, payroll tax and GST, we should abolish these taxes and instead take for the community what really belongs to them, namely, the community-created value of land.

It is estimated by the States’ Valuers General that this source of revenue would return many billions of dollars – more than enough to meet the nation’s needs. At the same time, it would encourage production which in turn would substantially reduce unemployment and homelessness.

Karl Marx, perhaps influenced by the American Economist and Philosopher Henry George, came to acknowledge the distinct and vital role played by land in his later publications; unfortunately, Communism was founded on his earlier version of Das Kapital in which land and capitalism were joined together as a single entity. No wonder it collapsed under the corruption which this misunderstanding inevitably created.

Cecil and Helen Stowasser, March 1st, 2009.

Hudson on Max Keiser

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Our dreams have been answered! Max Keiser interviews Michael Hudson. Keiser runs one of the worlds most popular economics based podcasts, that often has the team cracking up at the unconventional but highly entertaining Keiser and his well versed co-host Stacey. Hudson has an oracle message – does it get through Max?

Check out the busy Michael Hudson on the Renegade Economists TV show – 4,500 views in just 24 hours! Well done Harrison and co.

Carbon Taxes to make a comeback

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Creative Commons License photo credit: Mikko Itälahti

The Australia Institute’s Richard Dennis makes some key comments in An idea whose time never came.

Minister Wong is now arguing that, under her scheme, individuals who lower their energy use will enable the government to reduce the number of permits the following year, effectively raising the cap and allowing individuals to “do their bit.” This is a great idea. But the problem for the minister is that nobody knows what she is talking about. The question for her is simple: On which page of the white paper is this spelled out?

If the federal government is to be taken seriously where the CPRS is concerned, it needs to make some significant changes both to the targets, which are pathetically small, and to the structure. The scheme needs to be modified so that when individuals, communities and any level of government make significant efforts to reduce emissions, the number of permits issued in subsequent years reduces accordingly. For example, when Kevin Rudd announced that $3.9 billion was to be spent on insulation in order to decrease emissions by four million tones per year, he should have simultaneously announced that the number of permits issued would fall by four million per year.

For all our new friends from the SLF, we recommend you read this article. Stay tuned for our next piece on the ETS and the need for a carbon tax.

Confessions of an Economic Hitman

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A fantastic book to read (reminded me of an early Ludlum book…tho this is as real as it gets), author John Perkins talks about the background to his writing. Readers of this site will put 2 + 2 together as to who really benefits from the work of these engineering behemoths.