The whole banking sector is already the beneficiary of trillions in giveaways from the Federal Reserve. Putting more of it on deposit in Black-owned banks will do nothing for the majority of Black people in…
Brexit, the US-China trade war and conflict in the Middle East.
It seems we are quickly moving into an era where markets are dominated by politics.
What is the real impact of politics on the economy and global markets?
On any given day you may see the ASX up or down on a variety of politically-driven events.
At The Rum Rebellion we take a long-term view. Ultimately, markets are driven by earnings and interest rates. At a fundamental level, this is all that matters.
Brexit and the US-China trade war can impact earnings and interest rates, so to a degree, these are relevant to market moves.
The real impact of politics on the economy and global markets though, is that it creates a smokescreen for investors.
The back and forth detracts from a clear-eyed view of what’s really wrong with a country — especially here in Australia.
What’s wrong with Australian politics?
Of course, Australian politics has recently impacted markets. The ASX got a short-term boost from the Liberal victory in the federal election.
However, successive governments (on both sides of the aisle) have created a system that results in an excessive amount of capital flowing into the property sector.
Investors have been rewarded by speculating on land, rather than investing in longer-term productive enterprises. Commodity-based income underwrites this national pastime, which is why the commodity/housing nexus is so important to ongoing growth.
It has left us with a foreign debt of $1 trillion, and the continued selling off of assets to fund our property obsession. As a result, we have a chronic current account deficit. In the year to 30 June 2018, the deficit was around $50 billion.
The trend reversed recently on the back of a commodities boom, in particular iron ore.
Hooked on houses and mining again…
What’s Australia’s political relationship with China?
Everyone knows we have a close economic relationship with China. They now own some of our ports, gas pipelines and electrical grids.
They pour money into real estate and mining as well.
But our over reliance on this investment comes at a price — we don’t have anywhere to go if the relationship breaks down.
As a result, we are sceptical of China as a force for good in Australian politics and our commentary reflects that.
Climate change policy and what The Rum Rebellion stands for…
Instead of facing these issues, Australian politics is tearing the country apart. One of the chief culprits is climate change. Climate change and what to do about it has been a key destabiliser of national politics since it increasingly became a political issue from around 2007.
The Rum Rebellion is a libertarian voice. While we think all governments are corrupt and self-serving, out of principle we particularly abhor the ‘government knows best’ views emanating from the left of centre.
We don’t pull punches and we don’t accept money from advertisers, so we can tell it like it is.
On this page you can find all our political analysis. We cover topics in US politics, Australian politics and pretty much any political factor that could move markets.
You may disagree with us, or even be offended. We aren’t fussed though, we take freedom of speech seriously.
Out with the old; in with the new! Forget the past! Let’s march into a glorious future…blind, deaf, and dumb to everything that came before us!
That’s why the ‘reparations’ argument is not likely to go away. It ‘ticks the boxes’ of many of our fantasies…and excites the grubby self-interest of the elites.
Dear readers can stop worrying about ‘defunding’ the police. It won’t happen. Even the protestors aren’t serious about it. They want more police…to police the police…and to police our thoughts, too. They say the US…
Here at the Diary, we’re not Republicans or Democrats…libertarians…or even anarchists. We just don’t like anyone telling us what to do.
While the number of COVID-19 cases levelled off in some areas…and rose in others…all of a sudden… Forget COVID!
Sad, but true. Those we have been trained to believe do not have our best interests at heart. Remember when the coronavirus first hit, and Trump claimed that hydroxychloroquine (HCQ) may be a useful medication?
Just think about what’s happened in the past few months.The economy effectively ‘turned off’…with a 50% drop in GDP…and 20% unemployment.…The Fed ‘printed’ three trillion in the last three months.
With the Queen’s Birthday public holiday in all Australian states and territories bar Queensland and Western Australia, the ASX is closed today…