Far be it for me to wage into this little private war, however, one only has to consider that the big 4 banks all took significant advantage of the US Federal Reserve open book borrowing windows, and we are talking billions not millions, to realise the Australian banking system was on it's knees in 2008/09.

APRA and the Reserve Bank failed to inform investors and the Government about this little borrowing occurrence and as such, investors should be suing APRA and the FED for millions.

The current Labor government was not only lucky to have the funds left by the previous Liberal govt, Australia did not have the negative economic woes fronting most of the EU, Asia and the US.

Energy, that being cheap oil, is the only thing keeping us going, oh that's right cheap oil at $90 per barrel +

what is going to happen when some real growth occurs, energy at $150+ per barrel, economic decline and recession/depression, welcome to the laws of diminishing returns.

With our Fractional Reserve Banking system, we are all going to see 'deflation', global Per Capita Wealth continues to decline and the Cornocopians continue to dance in the street.

Welcome to economics 101, energy verses environment....loss personified.

Get used to it.

Geoff

Ahh, Geoff, they are like the Oracles on the mountain, they are
arguing amongst themselves and when they resolve, if ever, their
differences they may decide to acknowledge the proletariat.

In the meantime, down here in the real world, the diesel shortage in
Asia gets worse, banks in some places are stealing their depositors
money, and we are closing our refineries so we can import 100% of our fuel usage.

Fortunately there are a few economists who have realised that it is
not about money at all, but a more fundamental problem of eroei and net energy.

Until government & treasury economists realise that they are redundant
nothing practical will be done.

People across the world are beginning to realize that their savings are not safe, that they can be raided by Governments and their cabals of institutions who can just take some of their money to help the struggling Oligarchs and Multi-billionaires.

The repercussions of this new reality haven't had time yet to really sink in. When it does we are going to witness a savage reaction and a period of great financial instability world-wide.

You've been warned!

SPQR,

"You are fast becoming my favourite poster."

Your head is easily turned.

JKJ has been around forever - delivering exactly the same spiel ad nauseam.

If the Wicked Witch from the West has taken a bit of time off, it's because she's bored and uninspired with the tripe that gets offered up here regularly.

(P.S....since you're so enamoured of JKJ's dog-eared rhetoric, you should look up Peter Hume's old posts. Let me know if you can spot a difference :)

Let me put another slant on the discussion. If the Labor government had not squandered so much money on allegedly combating the GST then perhaps, and only perhaps, our economy might not be in quite such good shape and our dollar would not be so high. This would then flow on to a much better result for our manufacturing industries and farming sector which are both doing it quite hard at the moment.

David

David, our dollar is high because the US has printing money or rather
sending screen pixels to all in sundry and decreasing the value of the US $.
Anyway, it doesn't really matter we are now entering an entirely new
economic regime and all the old rules are going out the window.
73 Bazz