Read this innovative Helo Magazine interview. As a crisis journalism magazine, we were interviewed via a skype roundtable chat session:

Part of the intro states:

Can Pacific peoples bridge the world’s chasm between understanding cause and effect of climate change as well as coconut colonialism? Paradise, blue water, blue skies, abundant marine life, smiling faces, bible harmonies, simple lives, and resorts for cashed-up suburbanites. Or abject poverty, menacing kava stares, razor wire, machete-wielding youth, laplap dictatorships, tribal violence and raskol gangs running amok.

We jump into the interview:

Karl: My answer is to use the language of the corridors of power to fight back:  Use economic lingo to protect the earth, the community. Also, foreign aid has to be carefully looked at. Throughout Melanesia, aid has built ring roads around islands and new wharfs so the Multi-National Corporation’s (MNC’s) can rip out the resources quickly. Thirteen such projects by the Millennium Development Corp in Vanuatu. [For example] the ring road is almost finished on the main island of Efate.

Daniel J Gerstle, HELO Editor:  Forgive me, but given that foreign aid development may need to be done with more fairness, particularly in terms of MNC, does it really follow that you consider those ring roads and development unhelpful to the indigenous people in other ways, in terms of infrastructure, healthcare logistics, and markets?

Karl: More resource-based greed is showing through in the carbon cowboys scouring Papua New Guinea (PNG), and I bet other Pacifica islands. Check the comments re: Kirk Roberts.

The roads do improve life in the short run—less dust for local communities, quicker travel times – are dwarfed by the motivations these improved services provide to land sharks. Land becomes hugely valuable when you can fly into an airstrip in the north of Efate, one of the 13 infrastructure projects being built in Vanuatu, and zip off to the coastal mansion you have. All with little interaction with the locals, missing the urban drift in Vila. When this happens the local fisheries are fenced off by these essentially gated communities and the locals can no longer live off the land.

They have to head into town to work for the man. This form of dispossession has racked all developing countries where land scarcity delivers more workers to the smokestack MNC’s, and thus cheap labour. Check out the land speculators paradise: They have the cheek to call it barrier beach! To turn it into a marketing ploy when the locals can’t fish there no more!!! This site is in Santo, the 2nd biggest island in Vanuatu. 

Elite property investors are attracted to this slick site. Check it out and invest with a click of a button, with no thought of the impact on the local community. The Washington consensus has been aiming for this, for the flexibility of capital to swoop into a country and buy up a prime location, sell it a year later to make a killing. This is happening to all of the world’s most beautiful areas, particularly those like in the pacific where private land title is barely thirty years old.

Read more at HELO

photo credit: NomadicLass

Renegade Economists Podcast 131

As broadcast on Wed March 10th, 2010 on 3CR
Subscribe to the podcast

Show Notes:
The Communication in Commons: Natalie Pang, Visiting Research Fellow, Nanyang Technology Co Uni (Singapore) discusses the evolution of the digital commons and what access issues we must be aware of.

Read more of her excellent work:
Wiki on the Knowledge Commons
On Bounded Rationality
Thesis

On Nauru (re DJ Spooky interview last week):
6 Principles for Resource Wealthy countries:

1. Transparency – all royalty revenues must be documented either on a public website, and/ or on a Council noticeboard in the city square etc.
2. A Permanent Trust Fund must be set up, following the same rules of transparency. The Alaska Permanent Trust Fund is the benchmark, where only the interest earnt is paid out as a Citizen’s Dividend.
3. Participatory Democracy – all citizens vote on their priorities for proposed budgetary expenditures
4. An environmental bond of $1million must be placed in a holding trust on condition that certain environmental standards are met throughout the operation and at the closure of the mine.
5. Royalties – charged at a minimum of 30% at the ‘farm gate’ price (30% of the market value as it leaves the mine/ farm). No fixed price to be agreed upon in contractual negotiations.
6. Beware of the resource wealth cascading into higher land prices (and thus mortgaged costs AKA bank profits). This brings into play the bigger issue of genuine land reform.

Music

Suzanne Kraft – Lovely
Entertainment for the Braindead – Pirates
Misanthrop – Commercialism

photo credit: waferboard

Land in Short Supply in Perth

The Urban Development Institute says there are currently fewer than 1400 blocks of land for sale in Perth.
..
But, the Real Estate Institute believes there are a lot of speculators sitting on land waiting for prices to improve before releasing them for sale.

The UDIA is concerned that with 1200 migrants visiting Perth each week, the 1400 blocks of land for sale is insufficient to address affordability.

With only 7 auctions last weekend and 20 on Feb 21, for example, it seems that the property downturn in Perth is still in effect. How many other blocks are being withheld and aren’t up for ransom at present?

With higher populations, the demand for land will rise. The REI rightly states that many speculators are sitting on idle blocks waiting for money to grow on trees.

Higher populations should encourage development upwards, not outward. Prime locations become more valuable, ensuring that owners have to make their land more productive to warrant the investment.

The issue is that with more and more builders turning to land banking as a means to an ends – free skiing in Aspen funded by you the taxpayer, you the worker – there is less motivation to build upwards.

This trend will hit the Rudd Government this election year. The rush to remove democratic rights of appeal for local communities in a bid to counter the private sector’s preference for land banking, may well cost some Victorian ALP members their seats.

When will government’s of all persuasions look lobbyists in the eyes and tell them to disappear? Land banking is not only forcing our mortgage costs through the roof, but it is robbing communities of our best and brightest people. How many GP’s have given up their practice for such speculative activity?

Renegade Economists Podcast 130

As broadcast on the mighty 3CR – Wed March 03, 2010
Subscribe to the podcast

Show Notes – ‘All Puns Intended’
Internationally acclaimed multimedia artist Paul Millar (DJ Spooky) discusses his Nauru Elegies project. Hear with interest how Nauru, the modern day equivalent of Easter Island, has overexploited its resource base.

Neo-colonial resource stripping amidst poor economic policy have much to answer for.

The multimedia show touring the globe highlights: “Polyphonic issues including matters of ecology and raw material (phosphate), geo-political history, virtual-banking and economic corruption, global climate issues and information networks.

The interview, recorded on the Yarra River, features music from DJ Spooky’s new album, the Secret Song.

Download the interview (30mins)

photo credit: striatic

Our submission to the Digital Dividend green paper for the sale of 4G Electro Magnetic Spectrum licenses.

Karl Fitzgerald

The electro magnetic spectrum is a scarce resource.

Over time it will increase in value, especially with the advent of new technology.

As such, the recent release of the iPhone 3GS has delivered windfall profits for the telco’s with the additional use of video/ web apps. 4G will dramatically speed up the search times and thus useability of the resource and technology.

In order for the public to gain a share of the naturally increasing value of the 4G resource:

A yearly EMS rent is to be paid by all EMS license holders at a fixed percentage, based on it’s ANNUAL value.

Property valuers and media consultants can quite easily determine the yearly value of a telecommunications license.

We propose a 10% annual licensee rental based on the yearly value.

This will keep a lid on speculative interests that may find motivation in flipping such a resource for exorbitant profits.

By doing so, the Rudd – Conroy government will help to keep a lid on the price of telecommunications, the very breath of the market system with it’s desire to deliver ‘perfect information’ to consumers.

With land prices increasing $766 a DAY in the December quarter, Phil Anderson will analyse economic prescriptions and asset bubbles. Are bubbles essential for banking liquidity? Who is meant to borrow this credit and for what?

Phil Anderson, Director of Economic Indicator Services and author of The Secret Life of Real Estate, will discuss economic policies in light of his arresting array of charts.

We will be challenged with fresh findings from a range of markets (gold, copper, real estate, shares and a few surprising markets) as we sculpt a new perspective on future economic outcomes.

Phillip’s predictions from last year’s talk have been remarkably accurate. Forecasting is always fun with Phil.

$5 entry, 6.30 – 8 pm | JASPER HOTEL (former YMCA)
489 Elizabeth Street | Melbourne (right next to the Vic Market)
RSVP

photo credit: dbgg1979

Today’s Crikey had this corker:
The housing market:

Ben Loiterton writes: I am hoping you are alert to a gigantic sleeper issue building up steam in the community, although I haven’t seen any commentary from you at all.

The issue is the alienation of the entire younger half of the population from the housing market as the bubble keeps inflating due to deliberate Government policies and the relaxation of laws allowing foreign home-buyers to bid up prices.

Even though we have the most expensive (and over-geared) houses in the world, it seems all the baby boomers really don’t want a house price correction — which is not surprising give they own 95% of the equity in Australian residential assets. Also seems the banks are not too keen either now that they have given up on being commercial banks (lending to businesses) and have, in effect, become giant mortgage funds … (that in itself could be a big problem for the country if the bubble deflates!).

Most folk under the age of about 40 in this country are simmering with anger — either they cannot get into the market and are paying record rents, or they are in the market in tiny units and semis but can’t afford to upgrade to family homes when they have kids.

The resentment is starting to really boil — just see the reaction/comments to articles like this yesterday.

The Ruddites relaxation of restrictions on foreigners buying residential property to put a floor under property prices at the exclusion of Australian homebuyers is simply outrageous. More and more young people are becoming outraged by the bubble and the government’s direct support for it as all in the name of protecting boomer’s housing equity and bank balance sheets – but having the effect of financially ruining the next generation or excluding them from the Australian Dream.

This could be a big vote swinger in Gen Y, most of whom voted for Kev07. Climate change and health might seem to be the electoral issues of the day, but this generational wealth injustice is fast emerging as the main issue facing young Australians trying to establish themselves in the world.

Taking our lead from a superb weekend of discussions amongst a gamut of switched on thinkers at the Sustainable Living Festival, Karl Fitzgerald and Andy Moore presented the Renegade Economists live from the event.

During the show we ran through a dream list of predictions for a Transition Decade to sustainability

Listen to the show (right click to download) as we make our way through:

2010
• Speculators Savaged by GFC

2011
• Vested Interests Exposed
• Lobbyocracy Outlawed

2012
• The People Awaken

2013
• Election based on Geonomics Tax Reform
• Income Tax Halved
• Stamp Duty abolished
• Land Rent system imposed (5% on yearly land valuations)
• Carbon Tax system starts with great fanfare
• Profits soar in green industries
• Affordability improves

2014
• Geonomics system expands
• Payroll Tax removed
• Company tax abolished
• Resource Rents capture 80% of mining profits
• Natural Monopolies pay annual license on value of privilege (ie banks, phone, water companies)
• Wage levels shoot up as less paid in rent
• Tax incentives for localised bio-char projects
• Council rates change to Site Value only (improvements no longer taxed)

2015
• Scare campaign by vested interests shot down by Chris Judd
• Urban Density, walkability jump
• Citizens paid for Eco System Services management
• Community Land Trusts surge in popularity
• Lord Mockton admits he was wrong

2016
• 7th new (magnetic) train line built in Melb
• 60% of houses have govt funded solar/ micro power generation

2017
• Carbon Taxes increased, air pressured cars outsell petrol

2018
• Extra government finance piled into saving plankton (possible as
  tax havens now rendered obsolete)

2019
• Govt encourages people to work from home
• People work less hours as less needed for mortgage

2020
• Greens around the world are thanked for saving the planet

photo credit: mescon

The merchant banker’s millionaire formula has been exposed yet again, this time in Greece. A country whose public finance mechanism has been undone over decades of lobbyocracy was left with little choice but to sell off its crown jewels.

It has been widely reported that Goldman Sachs helped create off sheet balance accounts where finance was provided in return for swaps to the rights to highways, airports and even the national LOTTO.

This is the merchant banker’s dream. The ticket to an ever lasting free lunch, bankers get to ramp up the fees for airport parking and highway tollbooths according to the projected desires of their next round of bonuses.

Taking ownership of LOTTO defines a new paradigm of monopolistic dominance over a society. One wonders why Macquarie Bank hasn’t thought of this earlier?

Now the vested interests have wound down our wages so much through land price appreciation/ aka asset bubbles that our employers have little to pay us.

For many people, gambling on a LOTTO ticket is our last remaining hope. And guess who now benefits from that in Greece? The people who have manipulated the people’s opportunity into their billionaire bonuses.

Will the home of democracy be the 2010 ‘tip of the iceberg’ that brings a sense of futility to democracy without economic justice?