$$$ - Protectionism - $$$

[Kipp]

Tourism looks to be a big plus situation as the AUD plunges. Only South Africa, Iceland, Argentina and Pakistan have weaker currencies than Australia. Even the dodgy British Pound is doing better now.

You are kidding right noirua?
So you be okay getting paid in Indonesian rupees or Vietnamese dong then? Cause they are not on your list- so therefore they're obviously stronger, more stable currencies than the AUD.

 

[Kipp]

Exports are of course slowing way down, and people world wide are losing too much money / jobs to even think about taking an international holiday right now - sorry, but that's just nuts.

I am not sure... I think if I had just been made redudant at ANZ, and no hope in hell of getting another banking job, it'd be a great time to take off for 12 months backpacking. That is of course, if the AUD was worth more than the Vietnamese Dong. :

 

[Nyden]

I am not sure... I think if I had just been made redudant at ANZ, and no hope in hell of getting another banking job, it'd be a great time to take off for 12 months backpacking. That is of course, if the AUD was worth more than the Vietnamese Dong. :

You're one of the few exceptions (as you clearly have no responsibilities, and perhaps have savings). Most people have mortgages, a family, bills to pay, and such things are out of the question right now.

 

[noirua]

That's so reassuring. Honestly, stick that in the good news thread; I jest

Sorry noirua, but a falling AUD really is quite bad for every day residents here. There is no silver-lining to a falling aud, even in the export industry.

Exports are of course slowing way down, and people world wide are losing too much money / jobs to even think about taking an international holiday right now - sorry, but that's just nuts.

So, I think I've established now that as a result of far less tourists, and far less exports (at heavily reduced prices) that the exporters aren't doing any better from this; rather they're just doing less than worse.

On the flip-side though, many industries are suffering greatly as a result! Importers, small business, and average-folk. Oil prices have plummeted world wide, but Australia has hardly felt it because our dollar has sunk along with it! Certain goods are going up in prices; in a period where people are already not wanting to spend, or simply cannot afford to - how can this possibly be a good thing?

Am I right noirua that you are currently living overseas and not in Australia? If so, how can you honestly say what is good for us?

Hi Nyden and all, A low Aussie is good for the mining industry and will help Australia with the big slide in commodity prices. Not to say it is an escape from all the woes, just a buffer or silver lining, if you will.
So exports will be greatly helped, and the downside an increase in import prices. But, with prices dropping the impact of higher import prices will fall away.

On the tourism side, the Japanese are going to find prices in Aus well down, and few other countries wont. Australia Zoo is one of those benefiting with their building of hotels.

I am in the UK, but that doesn't mean everyone else I know is abroad or everything I own is abroad, quite the reverse.

From my own experiences in the past, I know it is an individual who suffers, whilst others are unaffected. Always the sad part about it.

Good luck - noi

 

[numbercruncher]

So exports will be greatly helped

Noirua - Our manufactoring base has been destroyed in the great globilisation experiment and the demand for our only export ( stuff out of holes in the ground ) is being destroyed at such a rate that the collapsing AUD wont even go close to compensating that .....

maybe our big export will soon be people looking for jobs ?

 

[Aussiejeff]

Noirua - Our manufactoring base has been destroyed in the great globilisation experiment and the demand for our only export ( stuff out of holes in the ground ) is being destroyed at such a rate that the collapsing AUD wont even go close to compensating that .....

maybe our big export will soon be people looking for jobs ?

Hi bonecruncher

"The Big Apple" and "Motor City" sound like hip, exciting places for our growing lines of unemployed to find work...

 

[noirua]

Is protectionism having Government tax reductions and borrowings, because that country is relatively strong and can do so?

Is bailing out one of your own banks or protecting the customers by covering all of their losses also protectionism?

A country that has loads of dollars to protect runs on their currencies. Is this not protectionism?

God help the weak countries who cannot get the IMF to bail them out of trouble. Their people will starve.

 

[noirua]

"Economic Crisis Deepens in Europe, Asia..." http://www.compareshares.com.au/show_news.php?id=S-533866

It is getting difficult for strong countries now and it is starting to become "everyone for themselves", whilst, of course, being willing to attend any conferences offered and promising to meet again in the future once we've had time to think about it.

Whilst thinking about it, matters will get much worse, so after meeting again it would be better to iron out the problems presented and revamp the whole package and meet again in late 2009.

By late 2009 matters will be too bad in some countries, so it would be far better to strengthen our own asset bases, because if any of us falter badly it would be curtains for the rest. So further meetings are no longer necessary.

 

[noirua]

Interesting to see now if commodity dumping heats up or not. Reports that China are set to sell coking coal as thermal is dire indeed for Aussie exporters. If oil stays around US$40 per barrel, then thermal coal could tank to US$50 per tonne against US$194 in May this year.

OPEC meet again in about 11 days time and could bite the bullet, maybe dropping production by 10% or more.

 

[numbercruncher]

Yes looks like the contract price for coal and iron ore will get smashed going forward, along with demand .....

We still have Mangos and Bananas though hey ?


Everyones got to eat, Mango prices to boom forever !

 

[numbercruncher]

I see your Chinese mates are making it perfectly clear that they are focussing inwards a.k.a Protectionist ?

HONG KONG ”” The chairman of China’s sovereign wealth fund said on Wednesday that China had no plans for further investments in Western financial institutions, nor did it have any plans to “save” the world through economic policies.

..........

Asked whether China might pursue economic policies aimed at saving the world, Mr. Lou said that the country’s leaders had a narrower focus. “China can only save herself because the scale of China is still rather small,” he said, adding that while China has more people than any other country, economic output is still low enough that the Chinese economy is not yet big enough to have a big effect

http://www.nytimes.com/2008/12/04/business/worldbusiness/04yuan.html?

Your on your own Mango munchers and Ruddy has nearly spent all the ca$h !

When do we declare globilisation a failure ?

 

[noirua]

As Russia is downgraded with reports of wages being slashed 50% in the commodity related industries, it is looking like everyone for themselves.

Western countries put out spiel that protectionism is a bad thing whilst doing precisely that.

Australians need to realize that imports must drop decisively and you just must cutback on buying foreign goods.

 

[GumbyLearner]

I agree noirua.

International leaders and the powerful advocates of "free trade" have argued for years that globalism is the answer. Yet it is these same high and mighty who are now begging for a financial saviour and state aid but decrying the need for regulating free markets.

Like Wall St and the car industry in the States.

Maybe they should make a new Rocky movie, where Rocky has to fight a person who defects from United Socialists of America. These guys cant have it both ways. Either a free market run by incompetents or a regulated one run by elected incompetents.

You can't have your cake and eat it too!

 

[It's Snake Pliskin]

As Russia is downgraded with reports of wages being slashed 50% in the commodity related industries, it is looking like everyone for themselves.

Western countries put out spiel that protectionism is a bad thing whilst doing precisely that.

Australians need to realize that imports must drop decisively and you just must cutback on buying foreign goods.

Protectionism was one of the main factors of prolonging the great depression. I'll try to find the link I read.

 

[numbercruncher]

As Russia is downgraded with reports of wages being slashed 50% in the commodity related industries, it is looking like everyone for themselves.

Western countries put out spiel that protectionism is a bad thing whilst doing precisely that.

Australians need to realize that imports must drop decisively and you just must cutback on buying foreign goods.

Russia leading the way .....

Wont be long for our mole men to take 50pc shavings as well or lose their jobs .....

wont bode well for those million dollar houses in the middle of the desert that were going to boom forever ?

Private debt in Australia is gi-normous, just watch it transfer to the government at breakneck speed !

 

[GumbyLearner]

Your right Snake, protectionism did prolong the Great Depression.

I think it is also logical to assume that US Democrat administrations
tend to be more protectionist in economic policy than Republicans.

With their current account shot to bits, out of control debt, rising unemployment, Obama's announcement of a 'new deal' Keynesian type spending on infrastructure (the greatest since the 1950's I think he recently announced) then I think the US will inevitably whether its intention or not, become more protectionist.

Especially, if they are willing to pump-prime the failout packages with government money. IMO!

Protectionism = Trade Barriers = Tariffs = Higher prices

This is would be a good place to look at the effects of protectionism during the great depression

http://en.wikipedia.org/wiki/Smoot-Hawley

I think this may be what you are looking for

 

[numbercruncher]

And without protectionist policy how do you compete against a workforce of 800 million who work for communist currency manipulators for next to nothing ?

Protectionism will be forced on us.....


I imagine carbon tariffs and other climate change initiatives will also effectively be protectionist and punish unsustainable and deadly polluting practices of the developing world.


Globilisation is nice in theory, right up until everyone is working for 5 bucks a day and a handful of global elite own and control everything.

I suspect that Globilisation is going to be a failure, China recently said they intend to look after themselves - we should too.

 

[Aussiejeff]

And without protectionist policy how do you compete against a workforce of 800 million who work for communist currency manipulators for next to nothing ?

Protectionism will be forced on us.....


I imagine carbon tariffs and other climate change initiatives will also effectively be protectionist and punish unsustainable and deadly polluting practices of the developing world.


Globilisation is nice in theory, right up until everyone is working for 5 bucks a day and a handful of global elite own and control everything.

I suspect that Globilisation is going to be a failure, China recently said they intend to look after themselves - we should too.

Hi BC

Ah well. It would appear our esteemed and learned Mr KRudd is going to single-handedly save the Great Globalisation Experiment by loaning Indonesia $1Billion of our hard-earned.

Fortunately, none of our own local industries or social organizations need any money right now, so we have Billion$ to give away. Aren't we nice? I'm sure The World will give us a tick. *coff*

 

[Aussiejeff]

Hi BC

Ah well. It would appear our esteemed and learned Mr KRudd is going to single-handedly save the Great Globalisation Experiment by loaning Indonesia $1Billion of our hard-earned.

Fortunately, none of our own local industries or social organizations need any money right now, so we have Billion$ to give away. Aren't we nice? I'm sure The World will give us a tick. *coff*

Gee, it's getting bad when you have to quote yourself with a Dorothy Dixer!

"AJ you are mistaken! What about all those $Billions given to the Oz car industry and the bailout of ABC Learning now rapidly inflating it's own bailout debt balloon?"

Ah, yes. You are quite right learned poster *coff*

In fact I WAS a tad concerned at the way Ms Gohard fobbed off Ke-e-e-e-rry on the ABC's very own 7.30 Report the other night.

Ke-e-e-e-rry had rightly raised the question (with respect to precedence set by the ABC Learning bailout) of whether the Oz GuvMint (having set the precedent) will now be forced to bail out a whole raft of failing companies over the coming year(s).

Ms Gohard assured Ke-e-e-e-rry along the lines of "the situation with ABC Learning is unique. Child care has always been very important to us".

Hmmm. So, was the situation requiring the bailout of the "important" major car manufacturers also uniqe?

What about the bailout of the "important" car dealers. Were they also "unique"?

The major banks bailout? Unique?

All these bailouts within just a few months at the very start of the Recession. How many more failing "important" businesses are going to require "unique" soothing with GuvMint financial salve? Remember, this "unique" precedent HAS already been set - 4 times if I'm not mistaken!

The GuvMint can't bailout of bailouts without getting mucho-eggo on its face now. Unca Sam has set THAT precedent.

IMO

 

[Julia]

That was a very soft interview by Kerry O'Brien. He should have pursued the question of precedent with more vigour. Just let her waffle on about how much the government cares about the mums and dads.
Come March let's not be surprised when even more taxpayer dollars are thrown in ABC's direction.