Wiki World

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Australian Blog★
ALL BLOG ARTICLES· ──► (BLOG HOME PAGE)

Politicans Made Australia Wealthy - They Certainly Did Not!

Australia is a lucky country. Its citizens have become much wealthier over the past 30 years. We have to thank the politicians for this. What? We most certainly do not owe it to politicians. Australia is richer because China has become richer and Australia is the main source of the minerals China needs to make all the exports which have been leaving that country in increasing amounts, by the year.

The Labor Government had the money from tax collections horded by the Howard Government to bail Australia out of the impending recession. We don't have to thank Howard for this. The money should have been spent on hospitals and schools. The Coalition Government held the economy back even though it was doing very well. And Labor should not take all the credit for Australia not going into recession. The money was there and it spent it. The Coalition somehow lost the plot of governing. It most definitely should not have kept on blaming the states for the hospital crisis. The Coalition spat the dummy and refused to reform the medical system.

Labor tried to reform the medical system. So it hit the Coalition over the head with missed opportunities when the Coalition lost power. A new revamped medical system would have been well set up by now if change had taken place when it should have. The Coalition government is now abandoning Labor's hard fought revamping of health care

People worry over the debt the Labor Government has run up. Remember the colossal amount of money the Coalition Government got from boom times. When the recession is over, which won't be long now, that debt will be paid off quite quickly. The Coalition looks lost in the wilderness at the moment. Members of both Coalition parties know Labor will have all good news for many years to come. The Coalition knows that Labor will be looked upon as a positive government in history as spending cuts must be done - now. This will push the economy into a short recession while the rest of the world booms. You can be sure that when Labor wins again they will start spending again. This is what happens in Britain and the rest of the ex-colonies.

Economics by Ty Buchanan

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Australian Blog★
ALL BLOG ARTICLES· ──► (BLOG HOME PAGE)

Australian Retail Problems Not Caused by the Mineral Sector

There is clearly something wrong with the Australian economy. We seem to in the same position of Indonesia several decades ago when it had oil and the high price was pushing up the value of the currency. A high currency makes it difficult for those producing "non-boom" products to export. That is why the US is printing more dollars to weaken the currency, improve the economy and create more jobs. Nothing much is happening for it though because the US dollar is the major international currency as gold used to be.

Just why Australian shopkeepers are crying fowl is more difficult to understand. A strong currency means imports are cheaper. Australians are very import dependent in their spending habits and buying cheap imports is what they like to do. They buy such imports over more expensive Australian made products, but this shouldn't hurt the bottom line of retailers.

They claim Australians are spending less. Though figures show this to be the case, spending is not that easy to understand. If people save, the banks have more money to lend out to business and those who want to go into debt. However, due to the financial crisis Australian banks have tightened up on lending criteria. They will no longer lend to those with no offsetting assets. In other words, banks are withholding money. This money is not active within Australia. It may be invested overseas by banks.

The retail sector is wrong to blame exporters of minerals, the economy in general or interest rates. Obviously, the cause of reduced spending is the behavior of banks. Government could force the hand of banks. It will not do this as politicians fear a bank crisis occurring here in Australia. Some European countries were devastated by the global banking crisis. Their governments lost billions in propping up banks by giving them money that borrowers could not pay back. It was taxpayers money they were "giving" away.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Economics by Ty Buchanan

Australian Blog★
ALL BLOG ARTICLES· ──► (BLOG HOME PAGE)

Australia's Economy Would "Stop" if Oil Imports Ceased

Some countries are moving toward other fuels such as coal gas. However, public opinion about it polluting the environment could bring an end to the trend of companies running roughshod over properties belonging to others. The search is driven by potential profit not for any long-term goal.

People are complacent. Australia is dependent on fuel from mainly Middle Eastern countries. If a major conflagration occurred there the Australian economy would come to a standstill in a matter of weeks. Rationing would have to be introduced immediately. Health and food would be the main priorities. Distribution would be hit hard as it uses most of the oil imported, apart from private use of motor vehicles.

Australia does not keep an oil reserve. Even though some countries have reserves. It would put off the economic hit for a few months. What is shocking is that even dried food in this country would last only nine days.

Using solar power for transport is not possible. If such a scenario did happen there would be a quick move to other resources like using sunlight to turn algae into a usable oil substitute. It has been calculated that algae would produce a minimum of 60 tonnes of oil from each hectare of pond surface. Streamlined systems could increase yield to over 600 tonnes.

At the moment there is no need to "manufacture" oil from algae. Natural oil remains the cheapest form of energy. Many universities are working on algae. Like everything else in this world new opportunities are only taken when it becomes necessary. Personally, I believe that there are solutions to a cut in oil supplies. Obviously there would be a world economic downturn, but Man has survived due to adaptation to changing environments. An oil crisis would be no different.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Society

Australian Blog★

EU-Thailand Free Trade Agreement Is Pointless

Negotiation between Thailand and the EU for a Free Trade Agreement in isolation from other Asian countries seems odd to say the least. What possible gain could there be for the EU? Yes, Thailand could flood the EU with cheap products thus helping European consumers, but the EU needs more jobs now to lift their economies out of recession. It seems counter-productive.

Another thing is Thailand will have to abide by EU rules which are very draconian and arbitrary in some respects. The EU is a bureaucracy out of control. Microsoft had to pay millions of dollars in compensation for not pushing rival search engines enough. This really doesn't make sense, with Google shipping its Chrome only Android.

Thailand allows cheap generic drugs to be sold to its citizens. If it wins a Free Trade Agreement this will have to end as medications fall under the umbrella of EU intellectual property rights. Paying more for drugs will reverse all the gains made in Thailand's health system.

The EU is ignoring public opinion and plans to extend patent terms for drug companies from 20 years. This will mean monopoly prices extend for much longer in EU countries and other countries will FTAs. Thai people are against any agreement that ends the supply of cheaper drugs.

Thailand exports food, plastic and rubber. It doesn't need the machinery and electrical appliances the EU exports. The question must be asked - Why is the EU bothering about getting a FTA with Thailand? There will be export gains by Thailand at the expense of a more expensive health system. There appears to be no benefit to the EU.

. . . . . . . . . . . . . . . . . . . . .

Society