IMF endorses this blog: dollar overvalued, need giant RSPT. The Age
China's growing costs. Gavyn Davies
ForclosureGate linkfest. Barry Ritholz
European schlerosis: FT, WSJ, Alphaville (h/t Naked Capitalism)
See also Delusional Economics
Bond bull death. Econompic, Calculated Risk
End of the Wen put. William Pesek
Mr Smith goes to Canberra. Peter Martin
Eeeuuuw. And for a more sickening take. Matthew Stevens
Vale's big African bet. Mining Weekly
3 comments:
Did you see Melbourne: A Parasite City?
The researchers warn this population increase to approximately 90,000 people coming to Melbourne each year has ''led to delusions of endless growth'' within the Brumby government and the business community.
Two-thirds of Victoria's immigration growth has come from international students, with the lucrative market currently under threat from the high Australia dollar and changes to visa requirements.
Almost a third of jobs growth in Australia to August this year happened in Victoria. Much of that jobs growth was from the construction industry, which increased by 50.2 per cent in Melbourne from 2000 to 2009, compared with an 11.6 per cent increase for Sydney.
However, the paper found the city's building boom had shrouded a ''dreadful'' Victorian international trade performance, with data showing that by 2008-09 Victoria's deficit on overseas trade was $35.7 billion, up from $15.3 billion 10 years earlier.
Do I misunderstand you: do you endorse a giant RSPT?
Yes, of course, a resource rent tax is by far the cleverest way to:
a) control the level of income entering the economy so there is less pressure on the blunt instrument of monetary policy
b) keep the currency down by funnelling the proceeds into and offshore SWF
c) using some of the funds to stimulate industry formation outside of resources for when the boom ends
d) deliver fair returns to the owners of the minerals and preserve the one-off proceeds for future generations.
The RSPT as it was formulated was inappropriate for a number of reasons, however the MRRT is not sufficient to deliver the above.
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