Corruption isn’t a new phenomenon. Wherever there is concentration of power, you’ll find corruption. Lord Acton reminded us of this fact a few hundred years ago.
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.
For the first time in history, more people depended on the federal government for their daily bread than on the economy. Less money was being earned than not earned.
Our desire for safety shouldn’t come at the expense of our right to liberty. Any government promising safety by temporary restricting liberty (the restrictions tend to become permanent in some form) should not be trusted.
Right now, hearing controversial views — whether it’s about the market, politics or this damn virus — is more important than ever.
One way to know that gold is headed higher from here is to keep your eye on silver. The gold/silver ratio (in US dollar terms) hit a high in March at 125. Silver made a…
China was the manufacturing powerhouse of the world, and our recycling industry shows you how intertwined our relationship with China has been so far. But our cosy trade relationship is changing…fast.
It’s on like Donkey Kong.Australia is siding with the US. We too will reassess our relationship with China. Things will never be the same again.
But back in the US, teeth are growing longer. At night, you can hear howling in the suburbs…werewolves, witches, and hobgoblins dance around a fire…and a bad moon rises.
It’s not about ‘embedding’ behaviour. It’s about creating a visual symbol of compliance with the state and creating a culture where non-compliance is socially ostracised and financially punished. Masks are about social control.
There are several incentives aligning and converging here. Consumers, governments and economic. All of which could result in a push in the trend for renewables and more pain for fossil fuels…