there is never any shortage of prescriptions about what 'we' must do. i do wish writers would nominate who 'we' is. ozzies in particular have no input at all to national policy, generally don't know what national policy is, and are speaking from a point of ignorance exceeded only by their impotence.

i suppose there is some vicarious satisfaction in resolving dilemmas in international affairs, as though one's opinion mattered to anyone. but i would be more impressed if a writer stuck to areas wherein opinions could be tested by action. the difference between discourse and gossip is the possibility of action. that's why oz has chatterati instead of intellectuals, ozzians can talk, but they can't act.

wow, what a load of rubbish. Sad to think I just wasted 60 seconds of my life I can never get back reading this article.

Rather than just going back to 1945, let's revert back to before the Industrial revolution (terrible terrible times, all those poor people being taken advantage of), actually bugger it, let's go back further to before fire was invented, all it ever does it burns things down.

Hang on, let's go back further...there must be a time somewhere in the past when we were all so happy and the world was perfect and we never faced a challenge or a change...surely?

The massive increase in YOUR standard of living is based squarely on the system you disparage so much. Were it not for the same 'rotten' system you would be too busy eking out a living in some cave somewhere to have the time to write an article like this.

Countryboy, did you even read the article?

I will say agree though that at least a portion of our current material standard of living is based on (non-investment) debt and speculation. The best we can hope for is that Australia's productive capacity is dramatically boosted to be actually capable of generating the level of wealth we've become accustomed to, or there will necessarily be a drop in our standard of living. This wouldn't be a huge problem in itself, given that we were perfectly happy 20 or 30 years ago with a lower standard of living, except for the fact that people tend to react badly to losing what they've grown attached to.

Fear can cause market collapse, panic buying, mass lay-offs. There's no doubt that the greed and stupidity behind Automatically Readjusting Mortgages (ARMs)were time bombs - flicked passed around the world. Now we all have to face up to the consequences.

Americans and those holding global securities with ARMs exposure are having a frightening experience as the US slips into a recession.

The job market is softening with consumer spending, property prices are falling, and forced property sales are leaving ghost towns while pessimissm mounts over rocketing fuel and health and education costs rocket.

Obama and Hillary are promissing around US$75 Billion to help mortgagees and poor/middle income Americans ameliorate the pain. Band-aids to fix a systemic problem.

Our Australian regulators and political leaders clearly fell asleep on the job in not recognising that ARMs and similar 'instruments' are laying financial minefields that destroy lives, not only through those directly affected, but those harmed in the sampede as fear takes hold and faith in our governments, regulators and financial institutions is shattered. 1929 revisted.

The real reason for all the financial problems mentioned is the FED
printing money in an effort to prevent a market correction.
Unfortunately for them the market is now making it's own corrections
that will not stop until all the malinvestments are abolished.

Really, you all should know this from your reading of Austrian
economics!

MikeServethepeople” So finance capital itself became a commodity”

Finance has been a “commodity” since the 17th century when central banks were established.

If you can demonstrate the dollar in your pocket is different to the dollar in my pocket, I am prepared to reconsider,..

“Up until the last quarter of a century or so, major economic fluctuations took the form of overproduction of material commodities”

Speculation existed since farmers started to produce beyond their subsistence needs.

Like when farmer Brown, in a year of high yields and glut, decided to store his surplus, against a possible poor year, rather than sell it on the current market at low “glut” price.

I would note the Dutch invented “joint stock companies” (the forerunners of modern corporations) in the 17th century to enable more elaborate ventures to be funded, allowing “shares in a common venture” to be “financed” by separate individuals, the “speculative risk” spread beyond one single merchant.

The occurrence, popularly known as the “South Seas Bubble” happened several hundred years ago, fuelled by speculation in the spice trade of the East Indies.

I would further observe, enforced savings plans, like compulsory Superannuation, will also produce “commodity finance”, that is when there are billions of dollars of superfund deposits (supply) chasing a fixed amount of investment opportunities (demand), the “price” of investment funds will diminish.

I went to your site. As soon as I saw your web banner “Marxism-Leninism, blues music, Bob Dylan and more” I understood your motives.

“Capitalism always finds ways of outwitting the regulators and is itself the problem.”

Actually that is wrong. A system is a system. Abuses of a system are the result of human failings, not system failings.

Whilst you might claim capitalism has its flaws, it betters the economic/political system of the Marxist/Leninist/Stalinists who carry the blood of millions on their hands

3-10 milllion due to Lenin’s man-made famine, 30 million due to Stalins incompetence, deliberate policy and terror, untold numbers due to Mao, Pol Pot etc. etc...

Capitalism has actually "enhanced" millions of lives where as "Marxist/Leninsts" has only destroyed them.