11th July, 2018
Unparalleled crisis forges unexpected collaboration
The effort to rescue 12 young Thai boys and their
football coach in the most dangerous cave rescue ever
is indicative of how nations with completely different
politics, cultures and "values" can come together in a
time of crisis, when human lives are at stake.
In the coming period, humanity will have to band
together on a much larger scale to rescue countless
billions of citizens from the impact of a new global
financial meltdown. Nobody knows when it will hit,
but in order to be prepared for the impact we need to
act as if it were scheduled for tomorrow. In fact, the
preferable option is to implement the prescribed solutions
pre-emptively, in order to mitigate the worst
of its effects.
Articles include the following:
- Are Australia's Big Four banks effectively bankrupt?
- Where is Labor on Glass-Steagall?
- APRA sits on its hands as super funds gamble on derivatives
- Why Glass-Steagall?
- Australia's foreign debt vulnerability demands Glass-Steagall
- Abbott's call to exit Paris Agreement is ironic
- The City of London's China pivot
- Can North America's two insurgent Presidents get along?
- OPCW reports no nerve agent used in Douma, Syria
- Novichok nonsense part II sets new standard for absurdity
- Court victory for political rights in Ukraine
- Parliament might be in recess but the CEC is not!
- The urgent need for a New Paradigm in international relations
Click here for more...
18th July, 2018
Are Australia’s Big Four banks effectively bankrupt?
On the same day last week that the Australian Prudential Regulation Authority (APRA) chairman Wayne Byres claimed that the banks had passed stress tests conducted by the bank regulator in 2017, the Citizens Electoral Council’s Australian Alert Service published an article by Robert Barwick entitled, “Are Australia’s Big Four banks effectively bankrupt?”
The 11 July AAS found that Australia’s banks are not “unquestionably strong”, as the government and regulators claim; that they have the highest exposure to housing of any banks in the world by far; that the housing market is a world-record bubble; that the nature of denials by the government, regulators, banks and real estate industry is eerily identical to Ireland before its crash in 2008; that the actual capital of the banks, and not the fraudulent risk-weighted capital, is razor thin; that the banks are entirely dependent on all borrowers continuing to make their mortgage payments, except that Australian households are on the edge, suffocating under the highest household debt in the world with no capacity to absorb the interest rate rises that have already started.
It concludes: “Australia’s banks are dead men walking, effectively bankrupt.”
Click here to read a PDF copy of “Are Australia’s Big Four banks effectively bankrupt?”.
Stress tests a ‘joke’
In stark contrast to the AAS, APRA claims its stress tests proved that the banks would survive a severe extreme downturn. Byres elaborated the stress test scenario in his 11 July speech to the Australian Business Economists in Sydney:
“The basic scenario was a severe economic stress in Australia and New Zealand, with a significant downturn in the housing market at the epicentre. This was triggered by a downturn in China and a collapse in demand for commodities. The subsequent downgrade in sovereign and bank debt ratings leads to a temporary closure of offshore funding markets, a sell-off in the Australian dollar and widening in credit spreads. Australian GDP falls by 4 per cent, unemployment doubles to 11 per cent and house prices decline by 35 per cent nationally over three years.”
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