rba

Modern World Economy is Built on a Foundation of Unsound Money

March 1, 2010 by admin

(Daily Reckoning) Last time the world's financial markets panicked, something strange happened: the U.S. dollar and U.S. bonds rallied while stocks, commodities, and emerging markets sold off. The same thing could be happening now. It's not so much a flight to quality as it is a flight to liquidity and a massive case of global risk aversion. [..] ..just because Ben Bernanke and the global cabal of counterfeiters don't want something to happen doesn't mean it won't happen anyway. The deflating of the reflated asset bubble is going to happen sooner or later. The world's massive inverse pyramid of debt is supported by a very small asset base. read more

AOFM sells $1.25b in Treasury Bonds

February 22, 2010 by admin

(SMH) The Australian Office of Financial Management (AOFM) sold $1.25 billion in Treasury bonds at tender on Friday. [..] The total value of the 57 bids received was $4.490 billion. There were 28 successful bids, of which 24 were allocated in full. read more

Thomas Edison quote: "If the Nation can issue a dollar bond it can issue a dollar bill. The element that makes the bond good makes the bill good also. The difference between the bond and the bill is that the bond lets the money broker collect twice the amount of the bond and an additional 20%. Whereas the currency, the honest sort provided by the Constitution pays nobody but those who contribute in some useful way. It is absurd to say our Country can issue bonds and cannot issue currency. Both are promises to pay, but one fattens the usurer and the other helps the People."

Housing affordability plunges

February 22, 2010 by admin

(SMH) Soaring house prices, rising interest rates and a winding back of the first homeowners grant all contributed to housing affordability taking a nose-dive at the end of 2009. The deterioration was widespread in all capital cities and regional areas, with the largest falls recorded in Sydney, Brisbane and Canberra, according to a Housing Industry Association (HIA)/Commonwealth Bank of Australia survey. The association is forecasting a moderate housing recovery in 2010 with about 152,000 dwelling starts. But that's still below the 190,000 required to keep pace with Australia's population growth. [..] "Without the required new home building to keep up with underlying requirements, house prices and rents are expected to continue pushing upwards through 2010," Mr [senior economist Ben] Phillips said. read more

RBA bosses to face House committee

February 17, 2010 by admin