Morning,
Markets are up, must be the tariff's!
or could just be the Labor data.
RBA minutes show more rate cuts in the works, must be worried about growth more than inflation at this point in time i guess.
Steel tariff's up today/tonight.
South Korean presidential election won by Lee Jae-myung
“Social justice is a fraud, a promise to distribute what one would not have if one followed its bidding. Wealth just would not be there or would rapidly disappear.” - Fredrick Hayek quote. Common sense too.
Musk attacks the big beautiful bill's spending. He'll end up being called heartless like poor old Maggi .. Lol.
The nicest way out of this mess is with DOGE savings and economic growth, not necessarily big government spending cuts, if they can get on a track where non-government economic growth oustrips the government spending growth and slowly re-balance the trade deficits aswell then the spending ratios Musk is worried about won't be as bad as he fears. The Tariff's play a large part in making all this happen and are needed because the trade relationships are so far out of balance.
It's the same with most western type countries, including ours imo. The problem we have is that Government spending growth is the sector thats continually growing, even some Australian economists mentioned this problem this week, no business sector growth and all Gov growth, this is also why our Gov now accounts for about 35% of GDP which is a ridiculously high number. This is unsustainable because the Government eventually runs out of businesses and incomes to tax to support it's delusional spending habits. Then what happens is governments try to 'partner' with and 'invest' in companies to bank some money that way but what happens from this is the companies first have to raise prices and normally end up going bust because the government starts calling the shots and this always ends is disaster which history clearly shows. Plenty of failed windmill projects, costings are ridiculous like with Snowy2, governments have no idea what they are doing, lots of fantasy but nearly always fail in practice in the real world.
Yes Governments need to stimulate at times but you can't run a model of continued, ever increasing stimulus for decades and not expect to turn into a communist country where the Government controls everything and everyone becomes equally poorer except for those who are more equal than others of course. In Australia we can become more communist than others due to our mining sector and the Government revenues it provides but still all other small businesses and lots of industries and manufacturing get wiped out first like we've experienced, we end up with one or two stores controlling the markets and they work with the government to push ideologies like Wollies, Coles, bunnings and Qantas etc do.
The solution is accept our mistakes and de-regulate and go for globally competitive economic growth, something like Milei is doing but in slower motion as we don't have such extreme problems as they had yet.
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