The Productivity Commission's figures and the good news they didn't want us to know

Posted to The Age (24/7/2015) on 25/7/2015 at 9:23AM
Commenting on "The Productivity Commission's figures and the good news they didn't want us to know"
http://www.smh.com.au/business/comment-and-analysis/the-productivity-commissions-figures-and-the-good-news-they-didnt-want-us-to-know-20150724-gijnib.html#ixzz3gutgbBkZ

The decline in utility usage and hence productivity is due to closure of large manufacturers which were hungry power users. Certain sectors may increase in productivity due to outsourcing to contractors locally and overseas.

The greatest concern is that "intelligent" machines can replace a lot more human labour, and soon even in the labour intensive service industries like hospitality and aged care. Automated kitchen with minimum number of chefs and cooks, and personal care robots are in the pipeline.

Remote diagnosis and operations by medical specialists, online education, heuristic forensic auditing, etc can all be done via advanced technology, but the high throughput rather the output are achieved with minimum use of human labour and costly brick-and-mortar expenses.

GST on low-value imported parcels moving closer

Posted to The Age (22/7/2015) on 22/7/2015 at 8:55AM
Commenting on "GST on low-value imported parcels moving closer"

http://www.theage.com.au/federal-politics/political-news/gst-on-lowvalue-imported-parcels-moving-closer-20150721-gihfgy.html

It does not need the brain of Einstein to realise that GST should have been imposed long time ago on all online goods, local or from overseas from zero dollar. If the threshold is set to $20, many smart Alec will break up a multiple-item order into multiple orders of $20 or under.


I have written on many occasions about imposition of GST on online import, because many so called overseas suppliers are not genuine "overseas" suppliers, but local operators sourcing supplies from overseas and using leased overseas addresses.


If the U.S. can do it, why can't we in Australia? We are not in 2002 like one reader who used to work with the custom. Technology was not around to speed up the process.


Another reader reckons that PayPal declined to be a tax collector. Well, ATO should tell Paypal the good news about "do it or else".

RBA's Glenn Stevens: Australia may need to rethink growth

Posted to The Age (22/7/2015) on 22/7/2015 at 5:47PM
Commenting on "RBA's Glenn Stevens: Australia may need to rethink growth"
http://www.theage.com.au/business/the-economy/rbas-glenn-stevens-australia-may-need-to-rethink-growth-20150722-gihsvm.html

Policy makers, their advisers and researchers should get their backside off their chairs, in their ivory towers, drive along some shopping strips, around commercial and industrial parks, look up to some of commercial buildings and count the number of For Lease and For Sale signs. I doubt even taking their socks off, they still do not have enough digits to register the number.

The definitions of unemployment, under employment, participation rates are very woolly. Who determines the factor for seasonally adjusted statistics and how it is derived? Glenn Stevens and some economic experts could probably get better results by consulting an octopus or a gypsy.

Many seniors cannot find employment, and with their precious little, some venture into running a business so that their sanity stays intact. Unfortunately, these former employees of some companies do not have much idea and understanding of the complexity in running a business, and most of them will fail.

It is not a matter of increasing or decreasing by 25 points. How will such increase or decrease affect the life of the general population at large? God Save Australia!

RBA minutes confirm scope for further interest rate cuts

Posted to The Age (19/5/2015) on 19/5/2015 at 1:22 PM
Commenting on "RBA minutes confirm scope for further interest rate cuts"
http://www.theage.com.au/business/the-economy/rba-minutes-confirm-scope-for-further-interest-rate-cuts-20150519-gh4s93.html


Falling interest rate will drive the economy to the grave, and along with it, the many self funded retirees.

Sitting on a property that increases in value each day is a mirage, because that is only virtual money. I still need to live in a house, preferably the current one I own and live in. To exchange for a similar one, I lose at least 8% of the value of the property, made up of about 3% in selling expenses including agent's commission, and 5% in stamp duty for the purchased home. It is unlikely to find one that is close to my area, or "comfort zone".

How will the banks raise money from local depositors if there is no interests to be earned? Without the deposits, how will the banks lend money to the borrowers to purchase properties? Money will be switched to different form of riskier investments, and we can see a sudden surge of rebirth of many scammers and snake oil con artists.

The ups and downs of currency caused by the announcement of increase or decrease of interest rate is a joke. Within a few hours, trend goes up and down, but then stabilises again in a day or two. In a short time, the world cannot change unless a war begins, production cannot go up and down unless some natural disasters strike; almost all the poor will remain poor and rich in status quo.

It is just speculation by the greedy. The sad thing is the educated economists start to believe the yo yo effect is as real as what a magic mirror tells them.