I have no interest in owning gold for the same reason I have no interest in owning land. The source of wealth began changing 150 years ago from assets to income.
Are the wealthiest people in the world land owners? Is Bill Gates a land owner? Is Microsoft extracting economic rents from Seattle? A place almost no American wants to live because it rains 300 days per year? What about Warren Buffet? Does he have millions of serfs in Omaha picking his cotton? How about Michael Dell, Serge Dassault or Georg Schaeffler?
Sure we have a rentier class in Australia, but so does every other country full of peasants who haven't yet mentally exited the middle ages. In fact, if you go through Forbes Global rich list, with only one exception, the billionaires that made their money from property are from a country full of mentally backward medieval peasants: China. Then you have oil and gas, another economic rent, dominated by medieval peasant countries, like Saudi Arabia.
People have not been pushed out of the inner city of Sydney by the rentier class, but by corporations, who create their wealth by adding value. And even the corporations are continuously discovering new ways to avoid rentier extortion by governments and land owners. Global tax and legal structures, profit shifting, regulatory arbitrage, offshoring and outsourcing.
And now we have the internet, which makes economic decentralisation easier than it has ever been. Sure, medieval peasant countries have done everything in their power to stop the spread and rise of the internet. These authoritarian regimes understand implicitly the consequences of laying bare their redundancy in the value chain. But that will only result in those countries falling further and further behind economically and socially.
“Talk sense to a fool and he calls you foolish.” - Euripides
I have no interest in owning gold for the same reason I have no interest in owning land. The source of wealth began changing 150 years ago from assets to income.
Are the wealthiest people in the world land owners? Is Bill Gates a land owner? Is Microsoft extracting economic rents from Seattle? A place almost no American wants to live because it rains 300 days per year? What about Warren Buffet? Does he have millions of serfs in Omaha picking his cotton? How about Michael Dell, Serge Dassault or Georg Schaeffler?
Sure we have a rentier class in Australia, but so does every other country full of peasants who haven't yet mentally exited the middle ages. In fact, if you go through Forbes Global rich list, with only one exception, the billionaires that made their money from property are from a country full of mentally backward medieval peasants: China. Then you have oil and gas, another economic rent, dominated by medieval peasant countries, like Saudi Arabia.
People have not been pushed out of the inner city of Sydney by the rentier class, but by corporations, who create their wealth by adding value. And even the corporations are continuously discovering new ways to avoid rentier extortion by governments and land owners. Global tax and legal structures, profit shifting, regulatory arbitrage, offshoring and outsourcing.
And now we have the internet, which makes economic decentralisation easier than it has ever been. Sure, medieval peasant countries have done everything in their power to stop the spread and rise of the internet. These authoritarian regimes understand implicitly the consequences of laying bare their redundancy in the value chain. But that will only result in those countries falling further and further behind economically and socially.
Nice addition and perspective. Prime examples of new business models can be seen in the sharing economy: Uber, P2P lending, and Air BnB come to mind.
Okay lets test this gold, sold and forex strategy on the numbers if I can Jimbo.
Just about a year ago you posted clear objective evidence of your net worth on here via your bank account statement to show that your net worth was about AUD $400k, is it now higher?
Yes mate, but that was just money in the bank. In a current account.
It must hurt to see a balance that doesn't have a - symbol in front of it.
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be rising.
Well the fiat monetary crisis continues. The threat of a bond market collapse doesn't recede. The bond market was strong in the 90's as retirement funds net added to the system. But the worm has turned and retirees are looking for their money.
Because of this the fiat system is on shaky grounds and gold remains a serious competitor.
Meanwhile Shadow follows the AUD down to 30 cents with his Sydney portfolio.
The next trick of our glorious banks will be to charge us a fee for using net bank!!! You are no longer customer, you are property!!!
I have no interest in owning gold for the same reason I have no interest in owning land. The source of wealth began changing 150 years ago from assets to income.
Are the wealthiest people in the world land owners? Is Bill Gates a land owner? Is Microsoft extracting economic rents from Seattle? A place almost no American wants to live because it rains 300 days per year? What about Warren Buffet? Does he have millions of serfs in Omaha picking his cotton? How about Michael Dell, Serge Dassault or Georg Schaeffler?
Sure we have a rentier class in Australia, but so does every other country full of peasants who haven't yet mentally exited the middle ages. In fact, if you go through Forbes Global rich list, with only one exception, the billionaires that made their money from property are from a country full of mentally backward medieval peasants: China. Then you have oil and gas, another economic rent, dominated by medieval peasant countries, like Saudi Arabia.
People have not been pushed out of the inner city of Sydney by the rentier class, but by corporations, who create their wealth by adding value. And even the corporations are continuously discovering new ways to avoid rentier extortion by governments and land owners. Global tax and legal structures, profit shifting, regulatory arbitrage, offshoring and outsourcing.
And now we have the internet, which makes economic decentralisation easier than it has ever been. Sure, medieval peasant countries have done everything in their power to stop the spread and rise of the internet. These authoritarian regimes understand implicitly the consequences of laying bare their redundancy in the value chain. But that will only result in those countries falling further and further behind economically and socially.
It's the transmutation stupid.
Australia is transmuting into the white trash of Asia with Frank, Shadow, Stringbag leading the charge.
People have not been pushed out of the inner city of Sydney by the rentier class, but by corporations, who create their wealth by adding value.
And now we have the internet, which makes economic decentralisation easier than it has ever been. Sure, medieval peasant countries have done everything in their power to stop the spread and rise of the internet. These authoritarian regimes understand implicitly the consequences of laying bare their redundancy in the value chain. But that will only result in those countries falling further and further behind economically and socially.
Not sure where you're going with this - agree with you on the productivity side of things, but are you suggesting corporations have a sovereignty of their own, and will eventually assume responsibilities currently carried by the state (like infrastructure and health care), and if so do you think this is a good or bad thing? Do you agree with economists like Piketty who think there should be a global tax on capital to avoid this shuffling of money from country to country to avoid paying taxes?
When I see the popularity of people like wildcard candidate for leader of the UK Labour party Jeremy Corbyn, it almost feels like there's a popular revolt brewing against what people percieve as being sold short by 15 years of "New Labour" cosying up to big business.
Shadow
17 Aug 2015, 12:04 AM
Yes, and I'll pop around later for a few drinks. I'll bring pizza.
Do you decide to leave him off ignore because you think he occasionally has something interesting to say? Because you think it's your responsibility to neuter his spreading of lies and misinformation about the property market? Or do you just get pleasure from teasing him?
"It were not best that we should all think alike; it is difference of opinion that makes horse races." - Mark Twain on why he avoids discussing house prices over at MacroBusiness. "Buy land, they're not making any more of it." - Georgist Land Tax proponent Mark Twain laughing in his grave at humourless idiots like skamy that continually use this quip to justify housing bubbles.
When I see the popularity of people like wildcard candidate for leader of the UK Labour party Jeremy Corbyn, it almost feels like there's a popular revolt brewing against what people percieve as being sold short by 15 years of "New Labour" cosying up to big business.
Mr Corbyn, what a guy, one of his many outlandish policies is to "re-nationalise" the mining and power industry, is it any wonder that all of Labours foes desperately want him to be appointed as the party leader.
On the other hand if he does get a crack at the title and gets some traction with his British subjects then he will undoubtedly be that character that is depicted in figure 9 of the Road to Serfdom in Cartoons.
Are the wealthiest people in the world land owners? Is Bill Gates a land owner? Is Microsoft extracting economic rents from Seattle? A place almost no American wants to live because it rains 300 days per year? What about Warren Buffet? Does he have millions of serfs in Omaha picking his cotton? How about Michael Dell, Serge Dassault or Georg Schaeffler?
I've seen Bill Gates house from the water in Seattle (some lake in the middle of the city) so I'll say yes. Its quite nice and (apparently) has a 25 car garage underneath.
I've also visited the Redmond campus just out of Seattle which I believe Microsoft actually owns. It has over 100 buildings that employees work in.
Seattle is a great little city. It has a great music scene (obviously famous for grunge back in the 90s), you can go skiing after work in the winter pretty much just outside the suburbs. Good access to wilderness areas like Mt St Helens and you can be in Canada in a little over an hour (and Whistler maybe 2 1/2 hours).
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