Latest economic fix

[xelasnave]

I dont know where but it was told me by the radio.

Some wonderful economist has put forward the idea throwing money out of a chopper to stimulate spending....to get the econonmy going stratagy.

Up until now I some how felt confident we are basically in good hands....we are in good hands and I am sure everything will be OK but that hinted at desparation and that they are really devoid of ideas.

In fact us ordinary folk will be presented with opportunity after opportunity we just need to remember how good we really have it because if it gets real bad they will cover us in money.

alex

[matt]

Just think good thoughts, mate

[Ian Robinson]

I think national governments and central banks are and have been in - for at least 2 months in PANIC MODE.

My parents and grandparents taught me , and I learnt similar in uni too , that you do not keep throwing good money at loosing propositions - you walk away and cut your losses . Central Banks and Treasuries the world over are printing money as fast as they can and throwing it at failed companies and industries and not addressing the problem that caused the mess in the first place and , in my view will only make things worse , and deepen the financial catastrophy .

These companies being bailed out should not be , and the golden paracutes taken off the executive who lead the companies into their messes taken away too , and if the industries are so crucial they should compulsorily nationalised.

Too many economists and politicants are hung up on the globalisation thing as the fix to the worlds' problems - which it isn't , and to capitalism and free market consumerism being a good thing.

Russian Communism failed - so has American Style Capitalism and it's about time those in power realised this and took real steps.

[xelasnave]

Money from heaven are pretty good thoughts I think he mustta read it someplace and just cahnged a bit...manner from heaven maybe he got the idea from the good book.
alex

[Zuts]

Originally Posted by xelasnave

I dont know where but it was told me by the radio.

Some wonderful economist has put forward the idea throwing money out of a chopper to stimulate spending....to get the econonmy going stratagy.

Up until now I some how felt confident we are basically in good hands....we are in good hands and I am sure everything will be OK but that hinted at desparation and that they are really devoid of ideas.

In fact us ordinary folk will be presented with opportunity after opportunity we just need to remember how good we really have it because if it gets real bad they will cover us in money.

alex

Tell me where and I will bring my spoon, i mean money box

[AstralTraveller (David)]

Excuse me while I run out and spread some very large tarpaulins all over the place.

Just as well we have plastic money these days. The rain here would ruin the old paper stuff (and it's rained most days for several weeks here ).

[xelasnave]

I had to laugh this morning..Rio T has jumped because they have announced 14,000 folk will lose their jobs... so the stupid see this as meaning profit will be greater because overhead will be lower... bit of a long bow bow draw there... businesses cut jobs to maximise profit and I am sure Rio would have had a trim ship before so a cut now means nothing more than they expect less business, less business means less turnover which for the most part means less profit.... Assuming that with high turnover they were using all economies of scale one should expect from a big player at lower turnovers one must always face smaller economies of scale.... so it ammusses me how the market can grab at news of job cut backs as good... if one has a business and one has to cut jobs it means things are getting worse not better which should see less confidence about the future....
Still what would I know I still can not understand how borrowings can move from one side of the books to the other and turn from debt to income... business and basic money making rules sure have changed over the years...

alex

[Zuts]

Originally Posted by xelasnave

I had to laugh this morning..Rio T has jumped because they have announced 14,000 folk will lose their jobs... so the stupid see this as meaning profit will be greater because overhead will be lower... bit of a long bow bow draw there... businesses cut jobs to maximise profit and I am sure Rio would have had a trim ship before so a cut now means nothing more than they expect less business, less business means less turnover which for the most part means less profit.... Assuming that with high turnover they were using all economies of scale one should expect from a big player at lower turnovers one must always face smaller economies of scale.... so it ammusses me how the market can grab at news of job cut backs as good... if one has a business and one has to cut jobs it means things are getting worse not better which should see less confidence about the future....
Still what would I know I still can not understand how borrowings can move from one side of the books to the other and turn from debt to income... business and basic money making rules sure have changed over the years...

alex

Rio has 50,000 million AUD in debt after buying ALCAN at an inflated price. It is doing this to drop its debt by around 25% otherwise it would probably go under.

[xelasnave]

Thats all I need to know I had better buy some...
alex

[Glenhuon (Bill)]

Originally Posted by xelasnave

I dont know where but it was told me by the radio.

Some wonderful economist has put forward the idea throwing money out of a chopper to stimulate spending....to get the econonmy going stratagy.

Up until now I some how felt confident we are basically in good hands....we are in good hands and I am sure everything will be OK but that hinted at desparation and that they are really devoid of ideas.

In fact us ordinary folk will be presented with opportunity after opportunity we just need to remember how good we really have it because if it gets real bad they will cover us in money.

alex

Throwing a few economists out of the chopper ( somewhere over the Bass Strait for example ) would be a much better idea.


Bill

[Ian Robinson]

Originally Posted by AstralTraveller

Excuse me while I run out and spread some very large tarpaulins all over the place.

Just as well we have plastic money these days. The rain here would ruin the old paper stuff (and it's rained most days for several weeks here ).

The old paper money used to dry out OK .... all you had to do was put them in sunny spot for a while.

[Ian Robinson]

Originally Posted by xelasnave

I had to laugh this morning..Rio T has jumped because they have announced 14,000 folk will lose their jobs... so the stupid see this as meaning profit will be greater because overhead will be lower... bit of a long bow bow draw there... businesses cut jobs to maximise profit and I am sure Rio would have had a trim ship before so a cut now means nothing more than they expect less business, less business means less turnover which for the most part means less profit.... Assuming that with high turnover they were using all economies of scale one should expect from a big player at lower turnovers one must always face smaller economies of scale.... so it ammusses me how the market can grab at news of job cut backs as good... if one has a business and one has to cut jobs it means things are getting worse not better which should see less confidence about the future....
Still what would I know I still can not understand how borrowings can move from one side of the books to the other and turn from debt to income... business and basic money making rules sure have changed over the years...

alex

So much for scoring my perfect job somewhere with Rio Tinto here in Australia , BHPB is also reorganising , have a few job apps with them too and I've recieved emails saying those jobs are now -
on hold pending restructures
or
will not be filled now result of a departmental restructure.

I've been tracking engineering and engineering mgmt openings here in Oz , they've fallen by 50% since July (but are still higher than 24 months ago - don't know how long that will last , and the types of openings have changed).

So RT and BHPB are "restructuring" , Onesteel (recently bought/merged with Smorgans) are offloading people (have or will soon close Newcastle Bar Mill (goodbye to another 600 jobs here in Newcastle) , and Wespac and Macquarie are ditching hundreds or is it thousands , the car makers get a big handout from Canberra and are still sacking thousands anyway), how is this something good ?

Aways the workers who get the pooey end of the stick , when will we learn that when the rot sets in (bad decision making) , that the clean out should be bigger at the top of the food-chain (clean out the dead wood) and bring the middle level and engineering types who are still close to the workface and still have their skills into the void produced. The higher up they are , the less competent they seem to be , and they seem to never stick around on the top jobs long enough for their stuffups to catch up with them and to be held responsible.

Earlier this week HND had a "Special After Hours "Sale"" on Tuesday after 6pm , coinciding with the Fed Gov's Pensioner Payouts , betting that was a flop , since most money wont have gone into accounts even yet as Centrelink would be waiting to the paydays for each person's pension , and will be spread out over a period of 2 week , out to the 18th Dec (I believe) , they should have had the sale on the 19th when all the pensioners will have been more financial , and might have had some change after paying bills , downsizing credit card debts, bought some treats for setting asside for Xmas and NYE , and maybe fixed some important things in their houses or cars. Stupid on the part of HND and a sign of desperation.

And one the matter of helping welfare recipriants , how are people on Newstart, Austudy, Abstudy, Youth Allowance any the less needy of help than pensioners at this time ?.... they've all missed out once again from what I understand. How is that fair ?

[Ian Robinson]

Originally Posted by Glenhuon

Throwing a few economists out of the chopper ( somewhere over the Bass Strait for example ) would be a much better idea.


Bill

No , too expensive , they should be lined up , along with speculators (uhum ...investment bankers) , and a lot of concervative politicans and shot , one billet in the head each is about all they are worth. Especially american ones.

[AstralTraveller (David)]

Originally Posted by Ian Robinson

The old paper money used to dry out OK .... all you had to do was put them in sunny spot for a while.

Sun?? Oh yes I remember that.

BTW Two months ago my mother said 'You know, I think we're going to have one of those summers where it just rains all the time'. There is a while to go yet but so far the old girl's been spot on.

[xelasnave]

Ian when I get my hands on Rio and BHP will you run them for me.

Think good thoughts when thinking about blood suckers.

alex

[Ian Robinson]

Originally Posted by xelasnave

Ian when I get my hands on Rio and BHP will you run them for me.

Think good thoughts when thinking about blood suckers.

alex

Done .... tell me when I start and how much I get to do it.

Let's do the same to Telstra's top echelons too while we're at it.

[GrahamL]

Throwing a few economists out of the chopper ( somewhere over the Bass Strait for example ) would be a much better idea.

Bass Strait is way to close to land bill a few would probably make land with a vision.. best dump the lot down in the Southern ocean

[Glenhuon (Bill)]

[acropolite (Phil)]

Growth is the problem to the answer, while ever our dinosaur governments think we can have continuous (=infinite) growth the boom bust cycles will continue and our environment both physical and financial will suffer.

[Paul Hatchman]

Originally Posted by acropolite

Growth is the problem to the answer, while ever our dinosaur governments think we can have continuous (=infinite) growth the boom bust cycles will continue and our environment both physical and financial will suffer.

This is a popular criticism, but I think it misses the mark.

Consider the case of negative growth, which leads to deflation.

In a deflation environment, it makes no sense to spend your money today because it will be worth more tomorrow as assets deflate and you can afford to buy more of them.

Owning you home would be pointless, because it would be worth less and less each day.

Banks would not lend to you because they would get no return on investment due to low interest rates. Any assets you purchase will be worth less tomorrow, and they can't get their money back if you default.

There is no point making any risky investments, because you become richer simply by doing nothing.

In this environment, there is no investment, no innovation or incentives, because doing nothing with your money is the smart option.

Our whole economic system is built around growth and without it, society will collapse. Recessions and depressions are not fun times for this very reason.

So unless you can come up with another system to encourage investment without growth, I'm afraid growth is the only answer to the question.

Cheers.