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The Forum > Article Comments > Which bank could give Australians a better bang for their buck? The RBA > Comments

Which bank could give Australians a better bang for their buck? The RBA : Comments

By Nicholas Gruen, published 17/10/2017

When it comes to banking and superannuation, competitive neutrality should include government competition against the private sector.

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Definitely need a financial circuit breaker to get critical investment happening!

Nicholas's idea not without merit. And not to be simply discarded untried or untested! Because it's outside the box thinking!

Other than that, something popular in other jurisdictions but remains untried here are self terminating, thirty year bonds.

We need a mechanism or financial vehicle that not only returns our two trillion super fund here for onshore investment. But design the instrument in such a way as to leverage an additional two trillion, marking time in multinational company coffers, and only needing a safe harbor and a safe bet!

Because it's impossible to lose on energy? That would be a good place to start? But only as the investment vehicle nothing more!

Modest returns could be fully franked or tax free. With the latter costing us nothing, given we see virtually none of the income, these funds earn now!

Done selling the farm and or our economic sovereignty!

If I had my druthers we'd get of the backside, figuratively speaking and get into some feasibility studies and technical research into LFTR technology, and use that when fully developed, around seven years from now to become the basis/template for mass produced LFTRs?

That could be sited virtually anywhere. Military bases, mine sites, industrial estates and desal facilities.

Mass production of a tried and fully tested technology, would massively reduce rollout costs and by implication, massively reduce the cost of the energy they'd produce! If not the domestic retail price?

Industrial energy could be supplied at cost plus 10% to get some volume happening! And a far better way to both build and guarantee exponentially expanding cash flows.

And that my friends, is how you do, a better bang for the buck!

Always providing we don't repeat mistakes of the past and sell performing assets, we've created, simply to get past revenue reductions/economic slow downs/political difficulties!

Not the dumbest thing we've done? Just can't remember when or what that was!
Alan B.
Posted by Alan B., Tuesday, 17 October 2017 8:53:27 PM
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Nicholas,

Feel free then to pop into your local RBA branch and chat with a manager about getting a loan then. Or will you have to wait until the RBA increases its staff 1000x and builds its 1000s of branches ATMs etc.

Once all this happens you might find the interest rate a few % higher, and you will find the RBA then competing with its own customers.

The tendency is for government owned banks to fail, which is why the CBA was privatised.

P.S. the creation of money happens in that fashion with the private banks.
Posted by Shadow Minister, Wednesday, 18 October 2017 8:22:47 AM
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