'Covered Bond Legislation'. Australia Is A Ticking Time Bomb

So we were just named the happiest OECD nation. We have a strong dollar, gold-plated Credit Rating, low unemployment, Resources Boom.....

We are very lucky to be in this part of the world. China helped us get through the GFC without any trouble. We are the best positioned Western Nation heading into the future. China is predicted to overtake the US as the worlds largest economy in just a few years and we are their second best friend. We have been strengthening ties ever since Paul Keating was Prime Minister in the 80's. Even before that but Keating was the guy that really put a focus on Asia.

I think Paul Keating was a great Prime Minister. Nobody has a good word to say about him other than parroting "the recession we had to have". We did need that recession. It allowed the nation to right itself. Keating knew that. I bet he feels like punching a hole in peoples faces when he hears "the recession we had to have" parroted by parrots. He would know he was right.

Interest rates are the big thing. They must go up right now, not down. We need to deflate the balloon before it bursts in our faces. Instead,they are kept as low as possible. They want us all in. Then, bam

Our Property Market is the biggest ponzi scheme on the planet. Our houses are ludicrously overpriced. They use things like 'first home buyers grants' to keep the scheme going but you may have noticed the scam is drawing to a close. Do not buy a house anytime soon unless you want to live in it for a very long time. They have been increasing since about 1990 and its come to an end. Prices will drop.

The main thing that I think could trigger a massive collapse of our awesome economy is 'covered bond legislation'. The Labor government pushed this through last year while all the clever Australians argued about Boat People. The media was basically silent on the issue despite the fact that this legislation is very very risky. The Greens mentioned it but who listens to them? The labor/liberal duopoly was silent. They wanted us arguing about Boat people as usual.

'Covered Bond Legislation' is taxpayer backed bonds. Australia is seen as a rare safehaven is a shaky global economy. The bonds would be selling well. Now what will happen is, if the next GFC does hurt us and our Banks should fail, now we must add this untold growing mystery number to our 'national debt'. This is the exact same way the US Banks destroyed Greece and Spain.

At the start of this year, 36% of Greece’s debt was held by taxpayer-backed institutions (ECB, IMF, EFSF). By 2015, following the voluntary restructuring and the second bailout, the share could increase to as much as 85%, meaning that Greece’s debt will be overwhelmingly owned by eurozone taxpayers.

www.openeurope.org.uk...

This could now happen to Australia. Who knows what our potential debt will amass to? Gillard and the duoploy has sold us out. Now when the GFC comes around again we will be even further connected to the mess that is Western economies. They will drag us under.

The other massive problem we face is our alliance with the United States. If they were really our friends they would not be risking our friendship with China by being so aggressive with thier military in the pacific. Obama says the focus of the future for the US military will shift from the Middle East to the Pacific. WTF? Why? There is no problem here. Why cant they shift focus to Mexico or something? Why do they have to annoy everybody? The US Marines being sent to NT has angered China. I can understand that. America has already damaged the relationship that we have with China. They risk drawing us into War on our own shores. They risk our economic future. The US are terrible friends to have. There is no need for them to be sending marines here and talking crap. If they were really our friend they would not have put us in such a difficult situation.

anyway, because of the United States our future is not as secure as it should be. Everything might seem great right now and it is,but in reality,we could be in for big trouble.

We need to stop selling Taxpayer Backed Bonds. We must ask the United States to use the Phillipines if they want to annoy the Pacific and make sure China knows that we are their friend. We must address the issue of the Property Market and try to ease it back in an orderly fashion.

Those are our biggest threats-
1 - Taxpayer Backed Bonds
2 - United States Military destroying our friendship with China and in turn,our economy.
3 - Property Market.

Bob Katter from the new Australian Party will not sell us out like the duopoly. I would rather Paul Keating but Katter has some great ideas and I know he will address our big three issues. Gillard will be long gone by the time the Covered Bond Legislation thing blows up. The only person that will protect Australia instead of selling it out by pandering to Americans for no good reason is Katter. Katter is for Australia. Katter is for the people. He will also take on our big two corporations, Wesfarmers and Woolworths. Katter has some great ideas. We really need to elect katter if we want to protect ourselves and find genuine solutions to our potential future problems or things will be worse than 'the recession we had to have". We need a mini-recession right now to right ourselves. Things could blow up in our faces soon and we are not doing anything about it.

Katter is a bloody idiot. He has such a narrow focus that he is incapable of seeing the realistic grey area. To him it's all black or it's all white. We can do better, a lot better.

P

Originally posted by pheonix358
Katter is a bloody idiot. He has such a narrow focus that he is incapable of seeing the realistic grey area. To him it's all black or it's all white. We can do better, a lot better.

P

With who? Abbott?

The media treats Katter like they treat Ron Paul in America.

I bet you dont know about his policies. Have you looked into it or just taken MSMs word for it?

www.ausparty.org.au...

How can we do better than that?

reply to post by Germanicus


Very interesting OP. Well done there, S&F. But... Katter???? Seriously????? This country has no politicians worth a damn anymore. Those days are long gone, its now just a rape fest for big business on all fronts. Its all a miserable mess that someone as narrow minded and backwards as Katter has no hope of sorting out.
We need intelligence in power, not the grotty, weedy, sneaky puppets we have now. No matter what happens, everyday Aussies will lose.

Also, don't say my house is gonna be worth squat, I just bought it 6 years ago and your making me scared!

Originally posted by Qumulys
reply to post by Germanicus

 

Very interesting OP. Well done there, S&F. But... Katter???? Seriously????? This country has no politicians worth a damn anymore. Those days are long gone, its now just a rape fest for big business on all fronts. Its all a miserable mess that someone as narrow minded and backwards as Katter has no hope of sorting out.
We need intelligence in power, not the grotty, weedy, sneaky puppets we have now. No matter what happens, everyday Aussies will lose.

Also, don't say my house is gonna be worth squat, I just bought it 6 years ago and your making me scared!

z

Yeah,I know what you mean. I know Katter isnt perfect and is a bit of a redneck but he really does have some good ideas. I hate Gillard but if you remember Abbott from his time as Health Minister you will remember he is a very cold nasty person. The PR classes that he took seems to have softened his image somewhat but I fear having him as our Prime Minister.

Katter would be funny too. He would be like the prime Minister they gave us on that Simpsons episode Bob Hawke was not the sharpest guy but he was a good guy. I think Katter is too. He seems to love Australia.

ROFL. You can't seriously compare Ron Paul with Katter.

Ron Paul would be the Lion and Katter would be a dyslectic mouse.

I can't stop laughing.

Well, we could give the job to Mr. Speedo. ROFL.

WE HAVE NO ONE! GIVE THE JOB TO ME!

P

Originally posted by pheonix358
ROFL. You can't seriously compare Ron Paul with Katter.

Ron Paul would be the Lion and Katter would be a dyslectic mouse.

I can't stop laughing.

Well, we could give the job to Mr. Speedo. ROFL.

WE HAVE NO ONE! GIVE THE JOB TO ME!

P

Check out his policies. I showed them to the smartest guy on ATS and he was impressed. Cant be all that bad hey. The member is from the United States and had not heard about him or had his opinion influenced by MSM. He is not as dumb as you think.

And he is cool Buster Brown

Katter should be in gaol for crimes against democracy. He is no better than that power mad red headed bitch we have now.

P

Originally posted by pheonix358
Katter should be in gaol for crimes against democracy. He is no better than that power mad red headed bitch we have now.

P

Crimes against democracy?

All I see is his half gay brother that he doesnt even talk to running around liberal media bagging the hell out of him.
And the paper wrote about his daughter assaulting her childs teacher at school. As if that is anybodies business. I liked his comment on it too. He said he was proud of her for assaulting the teacher because the issue was over her Special Needs child. The media is out to get him. Its clear.

What crimes has against democracy?

I have to say this, you made my case for me.

I know we need a new party, Katter is not PM material, hell, he falls short of bell boy material.

P

Originally posted by Qumulys
reply to post by Germanicus

 

Also, don't say my house is gonna be worth squat, I just bought it 6 years ago and your making me scared!

If you're not scared now, you aren't paying attention. Being scared is the motivating factor that will get you ahead of the pack. Get out of debt, & self educate on what to do because time is running out, fast.

“For my part, whatever anguish of spirit it may cost, I am willing to know the whole truth, to know the worst & provide for it.”
Patrick Henry

This sort of brave mindset will, I believe, prepare you from what is coming. You don't want reality to be forced upon you at a time when all the options are gone, & they are running out friend.

Covered Bond Legislation does come across as a scam so the rich can get their guaranteed money for nothing with the interest at the expense of the tax payers. Any ideas where the money raised from this went?

The US and China have both been stomping around this land for a while, along with many other nations. One the military side of things, I would give China more respect if they had the fortitude to talk about Tibet. The US is just one big crazy nutter with the stunts is has been pulling around the world. Must be too much mercury in the water at Washington or something.

As for the property market, lots too it but yeah too expensive for me.

reply to post by CarpenterMatt


Luckily for me I own my house outright. But after 6 years, its only been recently value at $10k more than I payed for it. To think it would slide backwards just makes me miserable, but at least I own it (my house) and not the bank. However, the banks own me. My only income comes from interest on money in the bank. But the interest rates just keep sliding backwards for deposits. I'd love to see 10% plus interest rates again one day! (Which is a totally selfish view I realise compared to most)

Originally posted by kwakakev
Covered Bond Legislation does come across as a scam so the rich can get their guaranteed money for nothing with the interest at the expense of the tax payers. Any ideas where the money raised from this went?

The US and China have both been stomping around this land for a while, along with many other nations. One the military side of things, I would give China more respect if they had the fortitude to talk about Tibet. The US is just one big crazy nutter with the stunts is has been pulling around the world. Must be too much mercury in the water at Washington or something.

As for the property market, lots too it but yeah too expensive for me.

Hey man, the Banks keep the money and sink into other scams. The biggest thing though,is now they are more inclined to take risks. They are basically insured by the taxpayer now and have become 'too big to fail'. I honestly havent read anything about it since it happened because they dont talk about it really anyway and I try not to think about it because it could see us become Greece. I just found a good article that goes through the whole thing though.

Prior to the global financial crisis, Australia had a diverse and highly competitive financial system. The four major banks went head-to-head with the likes of St. George, BankWest, Bendigo Bank, Aussie, Adelaide Bank, RAMS, Wizard, and Challenger. Today every single one of these entities has disappeared as a genuinely independent concern, wholly or partly acquired by the majors (with competition concerns waived by the ACCC), or merged with one another. Prior to the crisis, Australia's banks were not explicitly government-backed. And taxpayers had never guaranteed bank deposits before (or conceived of providing such guarantees for free as they currently do), nor had they ever guaranteed the banks' institutional debts. The taxpayer-owned central bank, the Reserve Bank of Australia (RBA), had also never lent to the banks on the much longer-dated and more flexible terms that it offered as the financial markets meltdown started to gather momentum, and continues to offer to this day. The reason taxpayers had not got into the business of bailing-out private banks was because of a well-founded fear of "moral hazard". That's the concern that once you start insuring away a private company's risk of failure, you remove the critical disciplining influence of free markets. And executives will, over time, start behaving less responsibly, and expose taxpayers to even greater risk of loss.

www.abc.net.au...

Originally posted by Qumulys
reply to post by CarpenterMatt

 

Luckily for me I own my house outright. But after 6 years, its only been recently value at $10k more than I payed for it. To think it would slide backwards just makes me miserable, but at least I own it (my house) and not the bank. However, the banks own me. My only income comes from interest on money in the bank. But the interest rates just keep sliding backwards for deposits. I'd love to see 10% plus interest rates again one day! (Which is a totally selfish view I realise compared to most)

You are fortunate to own your own house, but you are vulnerable with $ in the bank. Your assets are tied to a devaluing fiat currency, & the elephant in the room - hidden inflation. Masked by the wonders of fuzzy numbers, real inflation is running at levels that would freak out the masses if they knew. Using methods from the pre fuzzy days, shadow stats website calculates current US inflation to be running at 13%. Yes, that's why we all work so much, have no time, can't keep up with bills & have both parents working full time in most families if possible. Government funded entities like hospitals also struggle with funding because this process also artificially lowers CPI, & that is what their funding system is linked to. Check these guys out Miles Franklin

I read their free daily newsletter & it is a wonderful source of reality recalibration. Get reading mate.

Let me start by saying I really don't know anything about the political scene, or the financial one, in Oz save for the OP and the occasional story about Aussie elections we get in the U.S. I am basing my opinion mostly on the OP and the comments that followed. If I'm not correctly understanding something, and that shows, know that it was honest ignorance and not malicious.

It sounds like Australia is prepping for a major housing bubble to burst like the one that popped in the U.S. in 2008. Over-valued homes and people getting loans for houses they simply couldn't afford led to an unsustainable boom in the housing market. It left people underwater in homes suddenly worth 2/3 or 1/2 of what they paid. Be careful. Sounds like you came out of the last global debt mess relatively unscathed, but things are so up in the air now on so many fronts, you may not be so lucky this time. If your housing bubble bursts that may be the thing that sets everything else off, or it may be the thing that weakens your economy enough to prevent you from riding out the coming Eurozone storm.

As for Obama provoking China....lots of us have noticed it, too and no one likes or understands it. China owns so much of our debt the only thing that makes sense is that maybe he's hoping an all out war would cancel our obligations..... Joking.....but who knows? After all his rhetoric about being the first " Pacific President " the last thing I expected was an aggressive stance in your part of the world. But then again, the only thing I did expect from him was to be an arrogant ass. In that respect, he has exceeded my wildest dreams.

One more thing, to all those living Down Under....
WTF is up with this business about fining people who speak ill of the carbon tax?

reply to post by Germanicus


Mate, whenever I come into one of your threads I am always looking for the small print at the bottom saying "Spoken by Germanicus for The Australian party and Bob Katter"

Seriously, I feel like I'm being fed a line here or something.

Just so ya know.

Originally posted by Chadwickus
reply to post by Germanicus

 

Mate, whenever I come into one of your threads I am always looking for the small print at the bottom saying "Spoken by Germanicus for The Australian party and Bob Katter"

Seriously, I feel like I'm being fed a line here or something.

Just so ya know.

Two threads.
I was just about to link every thread but [SNIP] that.
You seem paranoid.
Just so ya know

Originally posted by Nietrick
Let me start by saying I really don't know anything about the political scene, or the financial one, in Oz save for the OP and the occasional story about Aussie elections we get in the U.S. I am basing my opinion mostly on the OP and the comments that followed. If I'm not correctly understanding something, and that shows, know that it was honest ignorance and not malicious.

It sounds like Australia is prepping for a major housing bubble to burst like the one that popped in the U.S. in 2008. Over-valued homes and people getting loans for houses they simply couldn't afford led to an unsustainable boom in the housing market. It left people underwater in homes suddenly worth 2/3 or 1/2 of what they paid. Be careful. Sounds like you came out of the last global debt mess relatively unscathed, but things are so up in the air now on so many fronts, you may not be so lucky this time. If your housing bubble bursts that may be the thing that sets everything else off, or it may be the thing that weakens your economy enough to prevent you from riding out the coming Eurozone storm.

As for Obama provoking China....lots of us have noticed it, too and no one likes or understands it. China owns so much of our debt the only thing that makes sense is that maybe he's hoping an all out war would cancel our obligations.....

Joking.....but who knows? After all his rhetoric about being the first " Pacific President " the last thing I expected was an aggressive stance in your part of the world. But then again, the only thing I did expect from him was to be an arrogant ass. In that respect, he has exceeded my wildest dreams.

One more thing, to all those living Down Under....
WTF is up with this business about fining people who speak ill of the carbon tax?

Hey dude. Have you been listening to Alex Jones? He will rot your brain

The Government is trying to ensure that business will not use Carbon Tax as an excuse to unfairly raise prices. They will. They just cant say it. The Carbon Tax gives them an excuse to profiteer.

The Government doesnt care about us having to pay more. They care about business using it as an excuse and in turn bagging the Government.

Its not a big deal though. I dont think it will be enforced. Its more to stop ad campaigns funded by business groups who support the opposition.

With gobal warming now busted, why are you going into a carbon tax?
Just askin.......
Australia is a place ive always dreamed of going for a visit or even emmigrate.
(I am Canadian)
Whats kind of always intrigued me is the breezy independant attitude of the Aussies ive met....
Sorry to hear that you are now going under to the business/goverment cartel.......
No better than any other cartel out of Columbia i believe.
When the goverment talked you into disarming yourselves i began to loose interest in Australia....
Your kick at the totaliatrian can is comming in concert with Americas....Forget China, because you are a US fiefdom now....(as Canada also soon will be)
When will the people understand that the freedom of all is under constant assault, and that we are fast loosing any say at all in anything.
It is becomming so obvious we are a mere resource for those who live off of us.......the owners, the ones who have everything, and produce nothing.
That people have to die to provide for their whims, means nothing to them.......
Recent thread (maybe yours) about fighting back out of your country.....If it isnt you, look the guy up maybe....
There is no way, it seems , to cover all the bases with these slime.
The Icelanders (whom you dont hear about) are the only country brave enough to criminally prodsecute and to throw off the banks yoke of phoney debt.There will come a time, when Australians too: must show their solidarity with sanity, and their courage to defend the moral values which are inherent in all men.
When it comes, i hope there will be signifigant chorus of Australian voices in the revolutionary refusal to suffer and die for the profits of giant conglomerations which represent the ruling class and stand as a buffer between them and us, so that we loose sight of the people pulling the strings,.......This keeps us distracted from associating the policies of these monsters with the majority owners behind them, who care less than the corporations themselves about humanity or its future.