June 12th 2014 Cancellation

The June meeting cancelled according to the rules of the club.  At time of posting a meeting in July had been held with additional support.  The club again intended to convene August with the ASC  secretary, who prepares and offers considered thought regarding what's presented, regrettably absent.    

May 8th 2014 banks & educ., analyst Q & Ans; GFC part 1...

The agenda presented by the club secretary Mr. D. Brooke
Subjects presented in order

Introduction

1. Recorded Introduction:
Link to alternative site for immediate play [ASC Audio_3 05/14]

Edit. Tape Intro. Don 05/14
Present 1.

First Part: Student education debt, a problem tax payers share with other developed countries.  Because of  an over supply of graduates the job market now offers lower pay.  Lower interest rates coupled to inflation (higher consumer good prices) accordingly serves the banks well.Told of the collapse of "triple A rated" investments.  Bond issues by governments in various jurisdictions provide tax advantages to holders.  However a down side to excessive bond promotion caused a Caribbean island to become heavily indebted, to the extent of economic collapse.A drug Zohydro (hydrocodone) has been questioned as to efficacy.  Beware youth ... said the commentator, psychedelics caused the "Mi Lie" massacre in Vietnam ...

Second part: A investment analyst questioned about China, Europe and Russia in respect of gold -- both China and Russia big buyers -- and should be better placed if/when the "bubble bursts", economic crises results by degree.  Brought on by excessive consumption, countries highly leveraged without gold reserve suffer by degree.  Within the euro. block legislation enacted, a contingency for "Bail Ins".The interviewed elaborates on why price of the same commodities differ in geographically separated locations.  Asked about real estate (land and buildings), considered ranked with bonds and paper money as a asset class; though tangible like most commodities, the economic circumstance -- where the Q and Ans. took place -- prompted considered re-positioning.  

Link to alternative site for immediate play of discussion following. [Edit. 712_0080 05/14]

Edit. 712_0080 05/14  

Present 2.

Members etc. present, undoubtedly given better insight into the financial and cultural destruction of a North Atlantic island, caused by economic adaption imported from without. Attention then to America, New York and Wall Street. Numerous approaches made to people for comment, many internationally known names associated with finance and government. Others not implicated in what is termed the GFC debacle, but positioned to express criticism of administrations during the presidencies of Messrs. Reagan, Clinton and later Mr. Bush.  
A history of money lending institutions from years prior to WW11 the beginning of the 21st century.  The latter end of this period Investment and Loan Co's tendered for the general public funding, like never before.  As enterprise in common, exponentially grew both in capital and human resource, so did embezzlement, one grand scale case cited.  In America people in high places moved between finance institutions and government positions from the mid 80's to the late 90's.  Three named (but not herein cited) protagonists given special attention during this part of the documentary, promoted previous dubious trends, as one invited commentator said " ... a capturing of the political system".

So from embezzlement next the documentary cites money laundering and financial deals apparently contrary to US law.  American (- international) corporations ( with global representation ) have paid large amount of dollars(sic) for infringements, but according to narration, they (corporations involved) refuse to admit culpability.

Before conclusion of this part to the doco. -

•   Derivatives, the marketing of them escape government intervention.

•   Followed by the introduction during the first years of the 21st century of CDO's.  The vehicle whereby  derivatives, loans and later sub-prime loans/mortgages were packaged and on-sold; Edit. Quite an elaborate(?!?!) construct, as pedagogue illustrated to screen.      

Link to alternative site for immediate play of discussion following.
     
Edit. 712_0081 05/14
CONCLUSION with a vote of thanks for the secretary evenings events. 

April 10th 2014 Farming trend, child care, accusation ... lobby & eco. growth China

The agenda presented by the club secretary Mr. D. Brooke
Subjects presented in order

Introduction.

Carelessness in recording the the secretary's opening to the meeting and the material
introduced, meant the lead-in was Don's reading of a excerpt from " The Three Colonies of Australia ".
As recalled (two months later at time of blog preparation), the introduction would have included expressed condemnation of  public figures, now in retreat from public scrutiny, thankfully these utterances didn't  record as they probably were defamatory.    

Reference to "The Three Colonies of Australia" there no surprise the culture of this country (Australia)
developed along traditional lines, that some academic or academics coined the phrase "Cultural Cringe".  [Ed. see last month]

 Recorded Introduction:
Link to alternative site for immediate play.

Edit.PartIntro. Don et al. 04/14

 Link ASC 1st half 2014
The Three Colonies of Australia

Present 1.

"Palomar", Bank West et al. relationship with receivers, West Australian Government and
Federal Government assistance (lack thereof), "Fly In " corporate farmers AND mental health
care.  The farmer of "Palomar" predominated during the present, intended as representative of a
class of farmers in that State.  He and predecessors developed a holding worth Au$5
Million, at the time of receivership his equity was 30%*.  The question arises how big has
a holding got to be to get recognition as a "Fly In" corporate?!?! Another fact, a
dwindling number of farm operators in the State, at the time earlier this year carry a
total financial indebtedness of Au$14 Billion. A parliamentary spokesperson stressed
adjustment: when cost of farm production is not matched by returns, thereby to maintain
solvency (per. those rural interviewed).  De-population of rural towns, farming is a
commercial activity traditionally dependent on loaned money from year to year.  To reduce
cost the latter resulting, "Fly In" farmers when wanted at seeding and harvest replacing
permanent rural based workers.

* The farmer apparently shares a common knowledge, at least with people who have had
contact with that aspect of accounting i.e. the wind-up business Receiver. He stated his
30% equity would be lost to the wind-up process.

Link to alternative site for immediate play of discussion following.

712_0075

Present 2.

From ABN 2 another aspect of an imbalance -- but one in process of inquiry -- that of child
minding.  Competing ways of addressing a increasing problem to the community.  The current
government payments, at least for working parents and those staying home seem generous. But
apparently, at about $75 a day minimum, Not So!  [Ed.What was payed 10 years ago to child
minding centres has increased 150%].  The program dealt with the demand side of the issue,
little was said about the supply cost, i.e. of minding centres.  It was suggested "the well
 off" monetarily should be allowed 30%(sic) -- maybe why Don made this selection?!?! -- tax
 offset, whereas less fortunate up-to 90%, this for a nanny carer.  Maybe the job of carers
in whatever capacity needs looking into, as costs seem the bugbear of this human resource
preparation activity.  [ ED. What was not mentioned during this report. the duel payment
systems in place -- media article 25/06.14].  We were told the Productivity Commission(?) should report to government later this year.  [ED. The day of typing this a news item radio station 2GB, reported some
care workers get about $3.50 take home pay after tax and deductions. If that's the case
there's a lot of hooch in this system assumed accounting for ... ].

Link to alternative site for immediate play of discussion following

Edit.712_0076

Present 3.

The next two selections were interviews intended to be linked.  A former Foreign Affairs
Minister in the previous government and the chairman Australian Israel and Jewish Affairs
Council in reply.  The former critical of the latter's preponderant lobbying influence with
the government.  In the lengthy biography of this minister"s time in office, he noticed
outcomes favorable to Israel on issues of "settlement" (Israel's land occupations) and the
thwart of Palestinian recognition as a country.  The chairman of the lobby group
representing Israeli interests was in denial, as to influence; this you can guess
expected.

Current affair 7.30 Report with Robert Carr.
Link to alternative site for immediate play of discussion following.
Edit.712_0077

Current affair LateLine with Mark Leibler.
Link to alternative site for immediate play of discussion following.
Edit.712_0078

A confessed Fabian Socialist and a Zionist in a tit for tat ... Intriguing!

Present 3.

A corollary to the February's offering and the Chinese city of Wuhan.  The viewing,
originally a television documentary -- believed not seen before by club members.  China cam e out of the Mao, red guard era after the chairman's death, the year mentioned 1980. From
1980 to 2008 when the GFC struck China was a creditor nation regarding Balance of Trade.
With the onset of the GFC the World has been doing less business with China. China then
turned from export trade to infrastructure and residential development.  The Chinese
people save much more of their income than Westerners so we were told. This lack of consumer
propensity was criticized, due to the debt carrying of the nation, trillion of dollars owed
to banks throughout the World.  The physical growth over the last 5 years of infrastructure
and buildings was compared to America, a country that took 100 years to achieve a
comparable book value.  [Ed. Why America(?), Japan's growth took 100 years to reach a
economic sustainable position].  So if there is a plan in place for China, its people, to
avoid a slide of GFC proportion, this program attempted but failed to discover from those
interviewed.  [Ed. Only thing known in these parts, China has fists full of US$ to spend in
 the Southern Hemisphere between Longitude 40 degree East of Greenwich to 80 degree West
of Greenwich].

Expectation for a contribution to materialise, dispensing with the February blog on China's
residential oversupply still holds.    

Link to alternative site for immediate play of discussion following.

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CONCLUSION More  comment with a vote of thanks for the secretary evenings events.