Category Archives: Economics & Finance

6 figure education debt NZ version

Each generation starts with less that the one before, this now means starting with negative wealth.

Each generation starts with less that the one before, this now means starting with negative wealth.

Recently we have had debates about education funding and regulation. So it would be a worth considering the woeful path New Zealand took with its education funding model about 23 years ago.

The New Zealand loan scheme, the rapacious debt monster that for the first 20 years of its life was unbankrupt-able. Starting out at 7% plus CPI interest rates being charged daily culminating in monthly 2% penalties for non payment, this political football generated billions of dollars of debt placed squarely on the shoulders of the youngest and least able to pay. How did people deal with this in a country with shallow employment markets, low wages and few opportunities. One option was emigration and a significant number who did so simply left the debt behind. Australia with its strict privacy laws vast landscape became an attractive hideout for those who sought to escape the debt slavery of the student loans scheme. Australia is home to approximately 7500 long term non payers owing about 450 million dollars of this debt.  Worst of all was the continuous tinkering with the terms and conditions of this debt making it difficult to understand what was actually required. This confusion was exacerbated by the IRD deliberately providing misinformation to confuse and deceive borrowers in paying more that they were legally required to. The IRD is a powerful government agency in New Zealand and has on occasion enacted legislation taking force retroactively, one of the more infamous cases was the first student loan bankruptcy in the mid 1990’s where the borrower had filed for bankruptcy and been discharged after several years only to then be told the loan could not be bankrupted and the debt still stood. For almost 20 years the loans could not be bankrupted. Recent developments with contacting historical borrower appear to be a form of gaming borrowers and simply waiting until they have enough assets to chase despite ignoring them for many years. The statue of limitations on debt  ( typically 7 years) does not apply to these loans either.

Recent changes to information sharing between the ATO and  IRD ( NZ ‘s tax office) announced by Tony Abbott means that the ATO will be giving information to New Zealand regarding borrowers that are sought for payments. The Australian based hold outs have been getting some very large bills lately.

http://www.scoop.co.nz/stories/PA1502/S00379/information-sharing-on-student-loans-welcomed.htm

Recently however the NZ government relented and accepted that a NZ student loan was in fact bankrupt-able, this of course leads to the inevitable new wave of bankruptcies where the largest  (and often only debt cited) was the NZ Student loan. So here we have Kristina Andersen, New Zealand based bankruptcy specialist explaining the situation in an interview with radio New Zealand.

http://www.radionz.co.nz/national/programmes/sunday/audio/20175273/kristina-andersen-student-loans

But the New Zealand government has changed it’s mind before (retrospectively) to re-shackle a bankrupt with their student loan debt all over again.  I’m sure many of the long term defaulters are watching this situation carefully so see if it a real remedy or whether it is just more ‘bait and switch’ policy in the student loan shell game. I guess that’s the reason why they called it the student loan scheme.

Scheme ( definition)

2; an underhand plot; intrigue.

3; a visionary or impractical project.

Yes the student loan scheme certainly turned out to be underhanded and completely impractical for borrowers.

 

The amusing fact is this, NZ student loan borrowers are actually advised to consider declaring bankruptcy right after graduation.

nz student loan IRD parody

http://www.studentloan.org.nz/planning.html

So that is the possible legacy of a completely deregulated education system with loans and debt as fuel for a massive debt and bankruptcy bomb the explode in the future.

Eventually one would hope the business model of putting students in to enormous debt with the intention of farming them over a lifetime will come to an end with the simple inability to pay converged with the fact that information is now almost completely free via the internet. The voucher of a university degree will simply lose its luster as a guarantee of a better middle class life. There is of course the real competition, open source, free market online style education.

It’s seems an anachronism that people would opt for 6 figure debt for information they could get for free. Perhaps the university degree will become a thing of the past, and future people will educate them selves in a lifelong process of continuous learning.

Flowchart of civilization destruction

red pill header1

Redpill body1

You really need to see this on a really big screen.

 The word “dysgenic” was first used, as an adjective, about 1915, by  David Starr Jordan, describing the dysgenic effect of World war I. Jordan believed that healthy men were as likely to die in modern warfare as anyone else, and that war killed only the physically healthy men of the populace whilst preserving the disabled at home. Stolen straight from Wikipedia.

In essence war weakens a society immediately and for generations to come.

 

So an entirely plausible chart showing causes and effects of various social institutions and political themes leading to a feedback loop between banks and those pushing progressive (politically correct) culture.  Was this actually planned this way of was it an accidental consequence of different groups lust for power at all costs?  Either way it is a very interesting analysis of some very big issues. There is the further prong to the assault of attacking logical reasoning also, to prevent people from comprehending what is actually going on.

 

One can almost image it as a power point presentation being displayed somewhere quite vile.

Billions wasted on job search fraud

ABC 4 corners investigation has uncovered the amoral gamification of government contracts purported to offer job seeker assistance.

http://iview.abc.net.au/programs/four-corners/NC1504H004S00

This video may not be available after march 9 2015 so get in fast.

Forging and falsifying documents seemed to be industry standard practice.

Specific rorts uncovered were:

Categorizing people into more at risk categories in order to get more funding.

Claiming payments for assisting job seekers into work even when the job seeker was not assisted.

Funneling job seekers into in-house training courses  order to claim a training payment, often the training was low quality, inappropriate or never actually provided.

 

What is more shocking was successive governments were aware of the widespread fraud and waste but did nothing to punish the fraudsters.

So a total of 18 billion dollars was spent on this program, conservative estimates are that about half was fraud by the contracted  agencies.

18 billion dollars spent over a 16 year period is a lot of money, what else could be done with such a sum.

In November  1960 President Kennedy was elected and quite quickly promised to have a man on the moon before 1970.

In the period of 1961 and 1969, 34 billion dollars was spend on getting man on the moon.

So effectively we could have had half a moon landing for the price of the wacky ideologically driven ‘be mean to the battlers’ program.

The original NASA moon landing from 1961 to 1969 cost 34 billion dollars. Australia waste about half this amount harassing unemployed people in the early 21 century and has not landed a man on the moon.

The original NASA moon landing from 1961 to 1969 cost 34 billion dollars. Australia wasted about half this amount harassing unemployed people in the early 21 century and has not landed a man on the moon.

So who is behind all of this, who else Tony Abbott,

Minister for employment when the program was announced,

under John Howard.

 

 

Sub prime mortgage crisis explained

I’m sure there are a few people other there really not sure what the sub prime crisis was, or what caused it to occur.

How did so many supposedly smart financiers and bankers get sucked into it, or where they knowing and willing participants, feeling that they were not going to be held liable.

I must admit if you use the language of the accountants, lawyers, banker and government its really hard to decipher what actually happened and who was at fault.

What you do know is you got shafted but you aren’t exactly sure how this happened.

Help is at hand.

Here is a really good common sense explanation of what happened using a small pub as an example. This analogy is approved my our economics adviser as ‘more or less what happened’.

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Mary is the proprietor of a bar in Dublin. She realizes that virtually all of her customers are unemployed alcoholics and, as such, can no longer afford to patronise her bar.

To solve this problem, she comes up with a new marketing plan that allows her customers to drink now, but pay later. She keeps track of the drinks consumed on a ledger (thereby granting the customers loans).

Word gets around about Mary’s “drink now, pay later” marketing strategy and, as a result, increasing numbers of customers flood into Mary’s bar. Soon she has the largest sales volume for any bar in Dublin.

By providing her customers freedom from immediate payment demands, Mary gets no resistance when, at regular intervals, she substantially increases her prices for wine and beer, the most consumed beverages. Consequently, Mary’s gross sales volume increases massively. A young and dynamic vice-president at the local bank recognizes that these customer debts constitute valuable future assets and increases Mary’s borrowing limit. He sees no reason for any undue concern, since he has the debts of the unemployed alcoholics as collateral.

At the bank’s corporate headquarters, expert traders figure a way to make huge commissions, and transform these customer loans into DRINKBONDS, ALKIBONDS and PUKEBONDS. These securities are then bundled and traded on international security markets. Naive investors don’t really understand that the securities being sold to them as AAA secured bonds are really the debts of unemployed alcoholics. Nevertheless, the bond prices continuously climb, and the securities soon become the hottest-selling items for some of the nation’s leading brokerage houses.

One day, even though the bond prices are still climbing, a risk manager at the original local bank decides that the time has come to demand payment on the debts incurred by the drinkers at Mary’s bar. He so informs Mary.

Mary then demands payment from her alcoholic patrons, but being unemployed alcoholics they cannot pay back their drinking debts. Since Mary cannot fulfill her loan obligations she is forced into bankruptcy. The bar closes and the eleven employees lose their jobs.

Overnight, DRINKBONDS, ALKIBONDS and PUKEBONDS drop in price by 90%. The collapsed bond asset value destroys the banks’ liquidity and prevents it from issuing new loans, thus freezing credit and economic activity in the community.

The suppliers of Mary’s bar had granted her generous payment extensions and had invested their firms’ pension funds in the various BOND securities. They find they are now faced with having to write off her bad debt and with losing over 90% of the presumed value of the bonds. Her wine supplier also claims bankruptcy, closing the doors on a family business that had endured for three generations, her beer supplier is taken over by a competitor, who immediately closes the local plant and lays off 150 workers.

Fortunately though, the bank, the brokerage houses and their respective executives are saved and bailed out by a multi-billion euro no-strings attached cash infusion from their cronies in Government. The funds required for this bailout are obtained by new taxes levied on employed, middle-class, non-drinkers who have never been in Mary’s bar.

Now, do you understand economics in 2015?

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http://comicchill.com/?p=72

Worst of all this could still happen to other parts of the economy, including the monetary system, your cash in hand could suddenly become as worthless as a 2006 sub prime CDO.

Shout out to M V.

Syria,Kurdistan, ISIS, Oil, Pipelines, BRICS and geopolititcs

 

 

 

Some very interesting geopolitical analysis ( treating the world as a chess board) relating to OIL, the middle east and the interested parties.

It hardly looks all that significant , but your quality of life literally flows through this steel pipe. Who controls these pipes ane where they are built or destroyed are what most wars in the last 100 years have been about.

It hardly looks all that significant, but your quality of life literally flows through this steel pipe. Who controls these pipes and where they are built or destroyed, is what most wars in the last 100 years have been about.

 

Here is a useful map to help you understand current and potential future political borders in the middle east.

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900 Million dollar poverty enforcement scheme (work for the dole)

UnicornFishingTagged

 

http://www.abc.net.au/news/2014-07-28/will-work-for-the-dole-increase-your-chances-of/5630302

From this article today, which you may have seen on television today if you watch ABC.

http://www.abc.net.au/news/2014-07-28/government-reveals-details-of-dole-overhaul/5627660

 

Now watch the video again considering these details which you may have missed:

1) Food was being delivered to people who would otherwise go hungry.

This means poverty is severe and welfare is clearly failing. This generally means there are very limited prospects for employment in this area because money is simply not flowing in this community.

2) Tons of food was being transported,  in particularly vegetables and bread. Question is why aren’t these products being sold in supermarkets? Are supermarkets simply squeezing out  local manufacturers?

3) The young woman (Stacey Binns) was working for no payment.

This means no amount of work she was doing would increase her disposable income, and would not start money flowing in her community. Therefore what she was really doing was being forced to perpetuate the poverty in her community.

4) The young woman (Stacey Binns) quite rightly pointed out that there are hundreds of application for every job advertised. Her chances are slim of getting out of the poverty trap deliberately created around her.

5) This is one of 18 high unemployment areas around Australia where this scheme has been rolled out this month and already the federal government wants to expand the scheme further making it nationwide by July 2015.

6) The government will spend 900 Million dollars rolling out this scheme, that’s almost  enough to send a rover to the surface of Mars. It well known that these schemes are generally not successful and actually if anything reduce the chances of transition from welfare to work.

7) 900 Million dollars is enough money to give 18,000 people 50, 000 for one year, I think 18,000 people having a basics income would generate more jobs than a downward economic spiral. The almost 1 Billion dollars will be wasted on a variety of corporate scumbags lining up for a hand out while attacking people on benefits.

8) Work for the dole or ‘help and hassle’ welfare schemes only really function when the economy is super hot and unemployment is extremely low (2% or less), not when unemployment is well above 5%.

9) All of this has been tried before and even without the stipulation to engage in slave labor, when there are no jobs no amount of looking for them will be successful.

 

Proof? (Warning kiwi accents.)

I cant try any harder!

-A young man shows quite succinctly by canvassing numerous Auckland suburbs that the jobs were simply not there.

The clip is from a much larger series by Alistair Barry which you can find links to here:

http://occupymelbourne.net/2014/05/21/australia-2014-copies-new-zealand-1984/

 

Don’t be too impatient give it a few minutes, you are practically looking at a working crystal ball, everything you are seeing now in the Australian economy was tried in New Zealand 25 years ago. The result was a disaster, by the time the right wing neo-con government was voted out off office in 1999 , the economy was shrinking at 2% though strangely the government  statistics department was claiming it was growing at 2%. Though that is a separate scandal in itself which strangely got very little media traction. Of course this all happened while most western economies were booming, showing how much of a complete failure it was to improve the economy.

This of course was simply a tactic to reduce the average wage and introduce a whole new strata of New Zealand society to a lower standard of living ,and quite a  few to abject poverty. Interestingly this right wing government launched a radical slashing of welfare just after assuming office on a strong majority after a lack luster two term Labour government with leadership changes in the dying days, sounds too bloody familiar.

 

Inflation note:

For reference in 1991 $50 NZD was worth about $86NZD in today’s money. The inflation problems experienced in Australia in the 90’s had already happened in NZ in the 80’s. Food prices are comparable with Australian prices though meat is about 20% less expensive due to exceptional livestock rearing climate (fertile soil, lack of drought and neither too hot or cold most years). Beer and other alcohol is 50% cheaper due to much lower excises, personally I think if it wasn’t the country would be empty and Bondi  Beach would be full. New Zealand actually produces enough food to feed itself and all of Australia, a good reason to be in the good books with the bloody kiwis, or at least have a comprehensive invasion plan.

 

 

End The Fed Rallies Are Spreading Like Wildfire

 Starting in Berlin about two  months  ago, huge Anti-war and   End the Fed rallies have begun to spread all over Germany and the rest of Europe.
The protesters consider the corrupt banking system the chief problem in the world today.
At it’s core, the Occupy Movement also had the anti-fed and fiat currency protests, but often activists who brought up these subjects were and are dismissed as right-wing conspiracy freaks by the socialist element that tried to hi-jack the occupy movement. Looks like the tide may be turning.
In Australia we currently have a lot of people protesting the budget and the latest government, but very few seem to understand the global connection. Time to wake up!

Submitted by Mike Krieger of Liberty Blitzkrieg blog:

This is a fascinating development and one that I had no idea was happening until today. It seems that rallies are spreading throughout Germany protesting the corrupt and dying global status quo. One of the key targets of these groups is the U.S. Federal Reserve system, which as I and many others have maintained, is the core cancer infecting the entire planet.
According to the organizer of these rallies, they have now spread to up to 100 cities and have a combined attendee base of around 20,000. What is also interesting, is that the mainstream media in Germany is calling them Nazis. In Germany, if you don’t support Central Banking, this apparently means you are a Nazi. What a joke. Just more proof mainstream media everywhere is complete and total propaganda. It is also a good sign, since it shows the desperate lengths to which the power structure will go to keep their criminal ponzi alive.

Do these folks seem like Nazis to you?

 

Tony Abbott budget explained

abbott domanitrix bagged and tagged

Liberal party stench of corruption intensifies

abbotwifeabbottdaughter

 

I wish we could all ‘do the heavy lifting’ like Tony Abbott and his family are.

 

Dad bringing home 500,000 per year with a guaranteed superannuation of 200,000 per year plus perks, Daughter getting a full scholarship to university, Mum used to work for the Rothschild’s (masters of of the financial universe) bank. Gee they are doing it tough! Well they would be doing it tough if the average wage was 2 million per year, but its not. This greedy pig has his snout in every trough and is as corrupt as they come. He has the audacity to talk about doing things according to the constitution. Well Mr Abbott, the Australian constitution I have read clearly specifies the penalty for treason as being, death by hanging. What is does not specify is where the culprit is to be hanged from. Honestly, it’s looking more and more likely that Tony Abbott will be the first sitting Prime Minister of Australia to be hung for treason, and I suggest that if we can’t hang him by the scrotum we’ll hang him by his ankle…until dead.

 

 Old money is behind politics, as the puppet masters.

Work for the dole: UK experiences and analysis

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Poundland is a low cost retail chain in the UK. Workfare was the work for the dole scheme they had in the UK at the time.

 

workfordole

You could say its way of reducing the minimum wage by stealth.

 

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‘Tory’ is UK political slang meaning right wing corporate owned politicians. If you step back and look at the bigger picture you can see the agenda here. Hint: Germany made similar reforms in the mid 1930’s.

 

If a typical individual could learn how to do your job in two weeks or less, you are at serious risk.

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