Comments on: Bravo Niall Ferguson

By: ken

ken — Mon, 02 Mar 2009 06:50:59 +0000

It is all looking very Japanese, as in the aim of economic policy is to stop people losing their houses and banks from going bust, resulting in a huge public debt. Of course we now know that eventually it all goes wrong anyway.

I have nothing against the sort of debt moratoria that allows people to buy time or actually saves the banks money by avoiding some foreclosures (America already has these, some banks actually decide that it is better not to foreclose) but eternally propping up dodgy loans seems a losing proposition.

By: ned

ned — Mon, 02 Mar 2009 03:31:45 +0000

If only it were that easy Tommy, We never had a large manufacturing base here in Australia and I don’t think we can grow one with our dynamics. Low population combined with a high standard of living work against it being profitable to make consumer goods here. Also our environmental laws are too strict to allow further processing of resources we dig up. I certainly agree we have the ability to produce whatever we want, it just isn’t profitable, instead I think we should look to we can do profitably and I think it is in research and design making money off products we invent or improve which are manufactured overseas by Aussie owned companies. Work smarter, the CSIRO is a great example of what we can achieve if we Aussies use our brains more!!

By: tommyt

tommyt — Sun, 01 Mar 2009 23:46:20 +0000

Otway-Jack, I agree with you mate! I have lost my job!I and others are supposed to bail out those that caused this? what the? Why? I did ask a question here some time ago about nationalising our banks and governing for all of us,not just minority sectional interests (banks and finance houses,only then can we maybe start to sort out all debt, reorganise the economy based on ‘our way’look after those least able to look after themselves, unemployed, pensioners (with priority)and re set the ‘financial rules’ for the future,i.e. savings;work (there is a lot to be done in ‘oz’,we are still a young country)Australian production by Australians for Australians,we can do anything we want to,we have the brains,the people and more importantly all the natural resources we need (for ourselves).

By: Aac

Aac — Sun, 01 Mar 2009 22:53:17 +0000

GSM – your analysis on Storm Financial is spot on

I agree with Prof. Hudson on most points but not sure about the debt forgiveness part. The best means of debt forgiveness is bankruptcy and if anything we could modify the bankruptcy laws in Australia where the person in debt can walk away from their home and start with a clean slate. But they can’t keep their home as this would have unintended consequences as is being found out in the US; ie. the system breaks down as people realize that it’s good to be in massive debt as you will be forgiven.

By: Steve Keen

Steve Keen — Sun, 01 Mar 2009 19:45:25 +0000

Agreed. Michael and I spoke at the same session of the 2006 Post Keynesian conference, and we now correspond regularly. He’s an expert on antiquity economics as well as modern, having originally been an archeologist. And he worked on Wall Street as well, so his knowledge of the system is both academic and practical.

It’s an excellent interview that everybody who visits this site would enjoy.

By: Deflationist

Deflationist — Sun, 01 Mar 2009 18:12:54 +0000

This video is an absolute MUST SEE. Michael Hudson has got to be one of the most enlightened economists of our day…right up there with Steve Keen

http://www.youtube.com/watch?v=3pwAFohWBL4&eurl=http://www.itulip.com/

By: dojufitz

dojufitz — Sun, 01 Mar 2009 17:39:19 +0000

justme

If you do decide to buy Gold and Silver – Silver is very good value – but more violatile – do not put it in the bank – either find a good hiding spot (only you know) or pay for a vault storage – no banks.

By: Frank

Frank — Sun, 01 Mar 2009 17:13:14 +0000

Hehe. Another thought to add to the topic soup. I’ve changed my mind about Hydrogen. How about Ultracapacitors? Make these work well and *boom* everything changes.

By: prudentsaver

prudentsaver — Sun, 01 Mar 2009 12:52:19 +0000

I think gold is expensive in comparison to other commodities. I think better value is found elsewhere. I think gold will reach somewhere around 12500 dollars if US interest rates were to go as high as in 1980. (21.5 %).

i have looked at fixed things such as railroad. CP, canada pacific is at the same price now, as at the market top in 1929. Change have happened to the company since then, but it’s cheap. Other things are cheap. I have looked at shares such as Kodak, they to is not far from their 1929 price level.

By: justme

justme — Sun, 01 Mar 2009 12:05:12 +0000

hi,
this is a fascinating thread. thank you to all of you for your generosity with sharing ideas and information. i watched chris martensens’s videos – very interesting. I’d like to be in a position where my dependence on “the system” is as low as possible but i am really stuck on the gold issue – can someone point me in the right direction for some research on that aspect of diversification and future security (possibly). I am not looking for advice – I’ll make the decision myself – but I am confused about the idea of buying gold and then asking the bank (which i am trying to be less engaged with) to look after it – it may be a very naive question but could someone tell me, do people actually keep it at home in the freezer or do they buy shares in a mine or do they wear it or what?? and how can it be “used” in a currency crisis?
thank you.