Wednesday 22nd of May 2024

no-no-no, this is serious...

economics

Reserve Bank governor Phillip Lowe isn’t worried about housing bubbles, government debt or potential inflation outbreaks.

Australia’s top economist is fixated on two things: jobs and wages.

And on both counts, unfortunately, the outlook isn’t great.

It will probably be at least three years until workers see their pay packets growing and the economy starts really heating up again.

In the meantime, Dr Lowe and the RBA intend to use every policy lever at their disposal to hasten the recovery.

“Very significant monetary support will need to be maintained for some time to come,” he told the National Press Club on Wednesday.

“It is going to be some years before the goals for inflation and unemployment are achieved.”

Until those goals are reached, the headline interest rate will remain at 0.1 per cent. And, in the interim, the RBA will create another $100 billion to keep a lid on federal and state government “borrowing costs”.

They’re unprecedented decisions for Dr Lowe, but who could blame him? For working Australians, the RBA’s latest forecasts make for very sobering reading.

Nominal wages growth is still expected to be less than 2 per cent a year in 2023, after recovering from just 1.4 per cent a year in 2020, which was the slowest rate on record.

Unemployment – currently 6.6 per cent – will fall from the highest level in nearly two decades at about the same rate, and is expected to hit 5.25 per cent about halfway through 2023.

And because so many people will be looking for more hours or jobs, underlying inflation will stay below the RBA’s target of 2-3 per cent until 2024, according to the central bank.

 

Read more:

https://thenewdaily.com.au/finance/finance-news/2021/02/03/rba-lowe-jobs-wages/

 

 

adding to the list: the US capitol...

list...

 

My common sense prism seems to be broken... I see these Covid-Trump-Hope moments through cartoons — old cartoons... The top cartoon from Bruce Petty's Money Book is savage. The one above is from MAD magazine. Both are from the mid 1980s... and since then, life has taken many twists and turns that are the same as before. We don't really know what we are doing, but we are doing it... The machine is sputtering but we still use it. We replace the technologies with faster ones, but the shit seems to be the same with a different shade of colour.

 

So, as the Christians-for-Trump chastise the Christians-for-Biden who made the Jacobins overtake the Burke conservatism, momentarily, tch tch..., our lockdowns has disrupted the flow of our petty exchanges. Instead of visiting artisans markets, we now get stuff delivered to our isolation pad... And before they had a chance at proper living, our youth will find themselves in a home care for oldies — old so soon.

 

And looking at the small end of the telescope of history:

 

Burke soon took an active part in the domestic constitutional controversy of George III’s reign. The main problem during the 18th century was whether king or Parliament controlled the executive. The king was seeking to reassert a more active role for the crown — which had lost some influence in the reigns of the first two Georges — without infringing on the limitations of the royal prerogative set by the revolution settlement of 1689. Burke’s chief comment on this issue is his pamphlet “Thoughts on the Cause of the Present Discontents” (1770). He argued that George’s actions were against not the letter but the spirit of the constitution. The choice of ministers purely on personal grounds was favouritism; public approbation by the people through Parliament should determine their selection. This pamphlet includes Burke’s famous, and new, justification of party, defined as a body of men united on public principle, which could act as a constitutional link between king and Parliament, providing consistency and strength in administration, or principled criticism in opposition.

 

Read more:

https://www.britannica.com/biography/Edmund-Burke-British-philosopher-and-statesman

 

Burke was annoying. He was a man of "THE" System... He hated revolutions and loathed people power, if this meant that the lower class controlled their destiny and rejected the notion of the divine. 

 

Nowadays, we're more concerned about the style of chiffons we're going to wear in our virtual public. 

 

Has Covid-19 claimed another victim? With lockdown seeing online companies buy up bricks-and-mortar retailers, the innate social nature of shopping is changing forever – with devastating effects for fashion and subculture.

In Britain, the high streets have been on unstable ground for a long time, as local councils have seen city centres as cash cows, upping parking charges and using armies of attendants to pounce on unsuspecting out-of-towners who stayed ten minutes too long in a space. The decline in the number of shops in our high streets has been inevitable.

Large, suburban retail parks with free parking and easy access have really given our city and town centres a drubbing. And now a year-long series of lockdowns and restrictions on trading have meant that many of us have turned to online shopping; Britain has become a nation of people waiting in for deliveries of lounge wear and perhaps the odd fancy top for a weekend Zoom party. As a Generation X new wave punk, I find this utterly depressing.

In fact, it’s really made me nostalgic for the old days. When I was 15, I had a part-time job as an Avon representative – I would go up and down my street, which was my patch, selling bottles of Timeless perfume and scented body lotion. At Christmas, my order books would be full of costume jewellery and bath salts, and favourite perfumes in novelty Christmas bottles; this was as sophisticated and as remote as early 1980s shopping got. My mum used to get the Freemans catalogue, so every six months we would have a house full of women getting excited over Lulu’s newest collection of skin-tight snow-washed jeans that they could pay 90p-a-week for over 25 weeks.

...

 

I hope that, after lockdown and post-Covid, our youth come out of their homes, get off their screens, interact with a world that is dangerous, messy and exciting and, most importantly, revolt against ‘Instafashion’ they neither chose nor styled themselves. And if they don’t, they can rest assured there will be some extremely interesting and stylish Gen X raves going on in care homes in the coming years… 

 

Read more:

https://www.rt.com/op-ed/514490-lockdown-high-street-online/

 

 

Dangerous street?... No, most of our youth, when the lockdowns are over, will be of doing barbecues-on-Sundays age, if not about to retire from a life of unemployment... Life... Was it worth it?

 

Would not miss it for quids...


the propheteress and the cyber-profit robbers...

 

US Treasury Secretary Janet Yellen has warned of an “explosion of risk” from criminals using digital technologies.

The Covid-19 pandemic has made the problem worse, because it has moved more crime online, she said on Wednesday.

Ms Yellen told a US Treasury roundtable that cryptocurrencies held promise, but were too often used for crime. 

However, she said new financial technologies could help fight crime and also reduce inequality.

“We’re living amidst an explosion of risk related to fraud, money laundering, terrorist financing, and data privacy.

“As the pandemic has moved more of life online, crime has moved with it. We’re seeing more – and more sophisticated – cyberattacks aimed at institutions that hold up our society: hospitals, schools, banks and even our government,” she said.

The former Federal Reserve Bank chair also warned of the misuse of cryptocurrencies and other virtual assets.

“I see the promise of these new technologies, but I also see the reality: cryptocurrencies have been used to launder the profits of online drug traffickers; they’ve been a tool to finance terrorism,” she said. 

Ms Yellen vowed to modernise the Treasury’s approach to dealing with financial crimes. 

This week, bitcoin hit record highs after Elon Musk revealed he had bought $1.5bn and would accept the cryptocurrency as payment for Tesla cars in the future. 

Addressing inequality 

Ms Yellen said financial technology (fintech) should also be used to address persistent inequality in the US. 

She said Covid-19 had exposed massive inequality, which she described as “one of the worst subplots of this pandemic”.

 

 

Read more:

 

https://www.bbc.com/news/business-56021100

 

 

 

 

I like "Trump 'doesn't understand economics'"... No-one does. Or to say the least, we do know that we have to accept (or not) artificial flexible values of our exchanges — goods, services and currencies — that have no basis in the natural world, day to day, BY STYLISTIC CHOICE... And let's not mention taxation, which cyber-money tends to avoid by being "direct private transactions"...