19 July 2019 – The CEC Report – Politicians freak at economic truths / 50th anniversary of Apollo 11

welcome to the cec report it's the 19th of July I'm Robert Burke and I'm joined again by CC leader Craig Ashwood welcome yeah thanks Robbie in this week's CDC report politicians freak at economic truths condemned Australia to economic disaster and the 50th anniversary of Apollo 11 the economic imperative for Australia to go to space before we begin Craig as usual what we cover on the show we publish in our weekly Australia lip service magazine so we can't do justice on on all these topics in the time we have on the show if you want to know more call in on our toll-free number and get a copy of this especially this week's issue which has a lot on the space subject that we'll discuss at the end right because with some it's definitely worth celebrating but we're a bit short of time today because I fit to get through so let's get into it politicians freak at economic truths can demonstrate to economic disaster the trip I took to Western Australia for that that we talked about last week on the show where John Adams and I were driven around by Barry Mason through Mandurah and we did a show on it called the economic massacre manager on the John Adams Martin North channel interest of the people which are really urged viewers to watch that's had a huge reaction it's like we've come in from the east to comment on their situation looking at it through the eyes of people from the east we said that we said look we're looking from the standpoint of this of what's happening in Mandurah and wo more generally was happening in Melbourne and Sydney the financial system would be toast well Robbie I I was born and raised in Western Australia so it's not all focused on the east now that's why I understand Amanda used to be a really sleepy little town for many many many years and what happened was it led to boom yes and now that our point is its leading the bust yeah right so there was and and that that's the main point of it the thing is though there's been two types reactions it's been welcomed by the general public over there we've had nothing but positive feedback from normal people saying finally you're saying what we're experiencing not just on pre housing but on the the decay and social decay that goes without including the drug problems etc in the area unemployment but the politicians Craig have freaked so you've had in this the the 17th of July manager of coastal times you had this front page mandra's reputation battered as our city cops status of worst case scenario the sky is falling special report and then over there on the pages four and five the report on the show that I did with Martin north and John Adams and then you got doomsday economists out of order and attacks from the mayor the local labor Member of Parliament and the local federal Liberal Member of Parliament so this is the state labor member apartment the federal Liberal Member power the problem is for their message is this section of the sheet of the newspaper the numbers at a glance housing renters insolvency unemployment all back up what we are saying and even the front page of the newspaper just the just the headlines on the side fast food break in stores hit just talking about the huge problems that are in Mandurah as a result of this economic decline right so we I'll give you one example when I play this clip from this just a local shop owner who was a he owns a sports store in mandro he was interviewed on six PR to talk about the fact he had been broken into the day before and and it went on more general prop comments about the state of Mandurah he cited this show that that was done to say look these people came over from the east and they said it as it is listen to him say that so this is part of the problem that we're talking about this is a social problem that without starting to head into you know we're being economically strangled so I'm not sure if you're aware but you know 41% of Mandurah households or postcode households or sixth to one I have a they're either underemployed or unemployed that's forty one percent so then you've got is it can you tell me where you're seeing that figure just in case anyone wants to challenge it okay so that was given to us through some analysts that actually put up on YouTube just a couple of days ago the economic Masek of andhra you can search it on youtube you'll find it up there and you'll find they've gone and been very thorough in their analysis they work with the ABC they work with a number of other government bodies you know these guys are not amateurs these are these are professionals in their field yeah so I certainly don't have any reason to doubt what they're saying and we're seeing exactly what they say is you know fact in this town so if we go back to the situation of underemployed or unemployed 41 percent so Craig he specifically confirmed that he's that that what we said is what he sees every day but what did the politicians say well the one old quote is Andrew hasty he attacked the show he called it over the top and here's the problem with hasty saying that I I've met Andrew hasty Craig he wanted to talk about the housing crisis yeah and he made it clear his interest was personal because he lives in mandro right so why is he saying the opposite to the local paper well the same day he's saying that his assistant treasurer of his government Michael suka announced or did this big plug in that in the paper saying to young people get into the housing market now the 5% deposit scheme that starts in January he implied that'll make house prices skyrocket he said chance it now get in now and you'll be able to get in before it skyrockets and you'll have an even better deal right that's what that so these people these politicians they're either in denial or the more important point is they're being dishonest to the public because they are trying to do one thing get prices going up again and the reality we talked about they were worried is going to talk it down right isn't here's the thing they don't want a solution that's not a solution isn't the real solution here is to let prices come down but do something orderly about it that's the problem is if we're in a bubble right and when you're talking about housing prices house it should never have been part of speculation which has been made so if you look at a house price they should have been historically something about three times the median wage right there in the capital cities of Melbourne and Sydney they're eight ten twelve the Southfield got 29 29 times so look this is a bubble it's going to collapse you have to have an orderly way of doing it now we've written the legislation which is a debt moratorium legislation to actually provide the mechanism whereby we freeze mortgages and we freeze people being thrown out of their homes people say that'll never happen well I guess it has happened in the past it happened in the United States in the 20s and 30s the homeowners and Loan Corporation of Franklin Roosevelt was put in place to deal with over 1 million mortgages right so the question is you're going to allow this thing just to crash like have a manager of tight style thing across first of all if they if they did succeed in propping up prices again all they're doing is kicking the can down the road and when it does a cash revenge because it's too much debt then although even we be even worse or you've got the two choices you're about to lay out let it crash and have desire stuff yeah or do something orderly and that's the point is that you know we've had these economic rationalist policies for four years now 3040 years people are used to a monetary system where the old dollar making profits investments are the primary thing what we say is that's not true a government has to protect the general world for the people so we're looking at it from the point of view is this is the likely scenario of a complete collapse of the housing market how do you reorganize the the the people's mortgages and housing values in order to be able to keep people in their homes keep families in their homes look Robert you've already had this is look at the crime that's happening in Bandra now what happens if that happens across Australia yeah right the police forces Encana be able to police it they know that so this has to be tackled from a completely different way the citizens electoral council represents the policies of actually supporting the general welfare and that's why over at this legislation to keep people and farmers on their end so if people can get a copy of that we have a thing called the on it and it's on our website the cc's five-point program that's explained in there here you can also get a copy of the actual legislation let's take a break and we'll continue this after welcome back to the CC report we're discussing politicians freaking economic truths condemned Australia to economic disaster now what we discussed before the break which is the these politicians like Michael suck where they're talking about get into the market now and you know that because I wonder they want to pump it up that the the truth about that that people have to understand is politicians don't care about the public when they're saying this the the regulators don't care about the public all they care about is the banks one of the biggest the biggest financial problem in Australia is they allowed our banks to become more exposed to one asset housing than any other banks in the history of the world effectively right and so as it wobbles and goes down the banks are in trouble now so this is what the system has done that includes the government includes the regulator's etc this week graham samuel released his capability review into the bank regulator opera and the whole thing is a sham now there's some truths in there that that are always in these things but in general in terms of the real stuff it's a sense it's a sham so the headlines call it a scathing attack on APRA's culture and those sort of things but at the core it's a whitewash of the fact that opera has not regulated this risk the banks have craig it's just what not only has of white washed out its praised APRA as quite an impressive and forceful regulator in matters of traditional financial risk no it is not and that yesterday's Australian newspaper quoted both our friend dr. Wilson Tsai and the economist Steven keen on the fact that opera is given credit for keeping the bank's solvent for the last where all I did is create a credit bubble through housing right and that's what we're paying for now anyway I asked the economist Philip Seuss about this from a LOF economics I asked him to comment gonna play two clips asked in a comment on the manageress story because he knows Westeros very well and what it means specifically for the banks so look at this clip so you've seen the show that John and Martin did which I appeared on in the interest of the people which I recommend people watch on the interests of the people channel it's called the economic massacre of manager just give us your general impressions of what you saw well I've been to Mandurah Perth all throughout W a numerous times over the years and all the way into the G up to the GFC mandra's ills boom times according to the the famous demography report Mandurah was the third most unaffordable region in Australia at the time and then when the GFC hit something cracked and it never quite recovered and the mining boom held it up for a while through through to 2012-13 and from there it just came basically off a cliff prices and rents have come down by a third population inflows have weakened it's very much a retirement town but for as long as those flying fly at workers came in and spent things were pretty good and now it's over the last five years things have taken the tumble for the worse now it's 30% down in nominal terms but it's even worse in real terms right that's relating that difference well it's the difference between nominal and real is just the in the adjustment you make for inflation which is typically positive around two or three percent per year the thing about Perth manager during the times of the mining boom was that inflation was actually quite higher due to the much stronger wage growth and a lot unemployment rate but now that's certainly not the case anymore so it's about 40 percent down in real terms in Mandurah and all of w.a which is roughly about 20 percent down normally it's actually about 30 percent down that's right so when I was there I had this where we're from the East Coast where you know John's from near Sydney I'm from Melbourne like you Philip and we'd been looking around our areas and we haven't seen anything yet here like W a and so my impression when I saw this is oh my god if the rest of Australia was like this Australian banks would all better already be in trouble that's what I wanted to put to you do you think how much trouble do you think the banks were in would be in if the big markets like Sydney and Melbourne become like Western Australia and Mantua they would probably come very close to insolvency definitely the MPL is a non-performing loan rate would rise much higher that have a lot more bad and doubtful debts to deal with on their books and that is why the establishment is in such a panic they don't particularly in my mind that if places like Perth manager or regional Queensland or Darwin take a bit of a hit because by value the they're careful to smaller oil markets it's too small a piece of the pie in Australia but overwhelmingly Victoria in New South Wales or Melbourne and Sydney account for just over two-thirds of all value of all property in Australia so this is where the action is and that's why the establishment is now going all out with a per makings changes RBA cutting and don't forget the RBA is already engaged in QE it's targeting bank funding costs and soon it's going to move over to targeting government Treasuries and then it'll move over to targeting the banks abs and RMBS securities even more so than they've done to try and force down the yields and the funding costs in order to lower the mortgage interest rates so they would when you say targeting those things that these are our set back securities and residential mortgage-backed securities the RBA would let the banks sell those to them so they can inject more money into them pretty much and by doing that by purchasing them on mass they can lower the the yields and the intention is to try and lower the mortgage interest rate to try and get more lending happening and then I got Philip to explain how banks cook their books here's an example of that he's that he that was brought to his attention and I do this to pretend their risk is lower than it is I what's this important clue so since the last episode aired had a couple of people contact me from in and around industry and they were telling me what the banks do is that on the front end a bar oh it just might see that they're playing mortgage you say a half million dollars principal and interest this is apple pie stuck the kind of stuff but on your back end the bank could have split it up into four or five six segments and the purpose for this is to basically hold down the loan-to-value ratios and to also originate more interest only loans but to do then disguise them as principal and interest right so for instance if you had say a million dollar mortgage you had at the front end it just looked like one plane mortgage but on the back end they have cut into four segments what the first segment is a $700,000 interest on a loan and then you have the last 300,000 cut into three portions of principal and interest so three pni mortgages but because the bank then uses an unweighted LVR methodology there are by lvr that 75% principal and interest and only 25% interest only and so to the to the borrower and also to the data they provides to the regulator's the credit rating agencies and auditors it seems like a standard principal and interest loan well it's okay in case people missed that just to interpret it because it was what unweighted means is seven hundred thousand and three million is divided into one a lot of seven hundred thousand and three lots of one hundred thousand yeah but that's for parts and they can use an unweighted average where they they claim there are four quarters of the mortgage yep and present their figures to the regulator's in their own they're fooling them so we discussed this last time they actually fooling themselves if they if they want to if they do this but this is the sort of trick and it's it's clearly fraud I mean what you know what other intention is there this is the sort of trick they're prepared to resort to just to pretend they're books a bit in there well with the onset of neoliberal privatization deregulation since the eighties the banks have had a long time to optimise their mortgage systems to produce the outcomes they want yeah so Craig this what Phillips just gone through is an example of how under the current regime regulation is way too complex and it's based on all these knobs and levers of capital requirements and stuff how can we simplify regulation so the bank's can't game them like that well Rob we're going to introduce glass-steagall and then this is this is our legislation here Robbie it's 14 pages it's not complex and what it does it simply separates out the retail banking or the commercial banking activities from all the speculative merchant banking investment banking activities it breaks up the banks and gets rid of the insurance houses the stock broking houses that there are stuffed in these banks today so what it does is simplifies banks down to being boring old banks and that's what we need in this system people who can speculate they can use investment bank and we're not saying you don't have investment banks if you don't want them but the rules are different they don't have access to people's deposits if you've got deposits you can't do any of that that's right and that's better than it all that's the technicals of our legislation that's simple but again this flies in the face of 40 years of monetarist policies of the policy the economic rationalism or breaking down the economy selling off assets so it's completely opposite direction but it's the only solution it's gonna work yeah ok thanks Craig let's take another break welcome back to the C's the report finally 50th anniversary of Apollo 11 the economic imperative for Australia to go to space and just quickly Prague before we get to the subject in the break we were given the news that the Daily Mail Online which has ranks with the New York Times is the biggest online newspaper worldwide also covered the manageress story economists drive through w8n counting endless for sale signs on properties revealing the true extent of australia's housing crisis so we have really made a big splash with that people can look that up on the Daily Mail website so let's get on to something far more elevating which is the space programme this tomorrow Saturday or US times Saturday that is when Neil Armstrong the 50th anniversary of Neil Armstrong landing on the moon this is mankind's greatest achievement and it came out of something actually evil the Nazi rocket program v2 rockets which my grandfather experienced bombing London when he would live there in the Blitz in World War two right the they took that technology and they used it for peace and created the space program incredible thing we're saying we should this this is good for the economy explain Craig house space exploration which some people just think is a big bill of money explain how it's a science driver well Robbie let me rose what you're dealing with in space exploration is you have to overcome all sorts of problems because you're dealing with trying to understand how the universe actually works so what you do is you make discoveries of how the universe works you make discoveries of new technologies and those technologies then can be played back into the economy and what you see is an increase in the capacity of that economy to support the populations around the world that's what's happened with the space program so you know for every for every year I think it's every cent spent there was $0.10 returned to the economy because of this process through better technology better technology and bring Australia Australia got in on the ground floor I think we were the third country to launch a satellite from our own territory but after the the 70s you know they just stopped funding it and we've done very little since then but you've looked at Andrew you told me Andy Thomas he had a some australians have participated yeah I know Robbie we published and thus online people can get it that's Australia's blueprint for economic developments our development program for Australia it goes through water projects in nuclear power it goes through you know all that high speeds trains high speed shipping now in there we also talk about Australia actually has to have a space program and we've interviewed dr. Andy Thomas who is I think one of our most famous astronauts because he spent 130 days on the MIR space station and he was participated in at least two Space Shuttle missions and he goes through and he's called for a space agency serious space program we actually have the geographical advantages here in Australia particularly in Cape York you know because I want to be near the equator and Cape Yorkers of that position but see Robert this gets back to the sense that Australia as you get out of its colonial mentality yeah we have an enormous country here we can develop if we embrace the idea of a science driver like Kennedy did with the space program not just for space but for everything else you we can transform this economy we can create high-paying jobs we're gonna have high-speed rail systems like maglev systems or high-speed rail systems for Freight all over this console instead of just digging up dirt and sending it overseas we could actually use it here to elevate our economy much higher than just look worried that that's the robber you got to get out of the colonialists you know mentality you know if Australia was to become a sovereign nation we're not a sovereign nation right now we don't have control of our banking system we don't developing our country like the way we should but if we were to grab hold of the idea of developing our country you know accelerating a science driver and then have our politicians actually support the idea of a science driver economy this place could be transformed in a very short period of time and Rob we wouldn't have the drought problems that we now have in the center of New South Wales we you know got four or five towns running out of water when a lot of that water for example up north there's water running out to sea yeah you know the Bradfield scheme which we go through and here would solve that problem you might have run a few pipelines from it across to these particular towns but that would give a nun an ending amount of water before those counts so let's in other words let's solve the problems right and and in a high-technology way description one thing I want to mention just briefly people could look it up we won't have time but fusion technology if we can ever develop it and master it can really change transforms the earth because it solves all energy needs we've been calling for Australia going nuclear for a long time yeah this is our newspaper a new citizen again it's online – Australia must enter the nuclear age that people want to understand more about nuclear power go on their own they onto our website and we could mine an element of the moon called helium-3 that can help do that for us one spiral shuttle space load fuels the United States for a whole year that's right the Craig we're out of time thanks very much if there needs to listener tune in next week you

Maurice Vega

35 Responses

  1. It is sad that the comments of this channel seems to be full of flerfer nutcases. It kind of puts a stain on the quality content.

  2. Do you think that in the future you guys could find some places like mandurah on the east coast. It would be cool to see what you think. Ie a coastal area approx 100 km from a cbd.

    There are places like wollongong and newcastle but they are much bigger areas. Im thinking maybe places like Bribie Island and cabulture in Queensland. Maybe even a harvey bay even though it is much further away from Brisbane.

    It would be cool just to get some ideas about how similar places are panning out on the east coast.

  3. The problem is the Government is owned by the plutocrats and the plutocrats own most of the shares in the big four as well as having massive property portfolios. Because money is now so cheap, the only place to get some return on capital is in the property market. This is the problem when you have blown asset bubbles across all asset classes; there is no place for you to put your capital that doesn't involve significant risk. The plutocrats have understood to achieve a return in this risky climate, you must control Australia’s politicians, regulators and monetary policy. I understand these times are unfair for the average man on the street but you can learn much from this treachery by our puppet politicians and corrupt institutions. Just watch carefully, join the dots and learn.

    For those plutocrats who own these property assets to extract themselves from the market before a severe downturn, they have to entice more suckers into the market; this is the current stage of development. When you control Australia’s politicians, regulators and monetary policy, this is not a difficult task; especially when you have those who control the mainstream media also working for your interests. Sorry folks, but the plutocrats can’t allow property prices to fall significantly until these property assets have been transferred and they have exited the market. Come in Sucker!

  4. John Adams is a prophet of doom too be fair. If you spent too much time listening to him you would think the world is ending

  5. Love the remark. Let's finde solutions… Green the dessert.. is one I'm fighting for wee have all the opertunertyes.. A danich guy in Africa

  6. I truly can’t believe that you guys are still falling for the moon fiasco and the satellite scam . The INternational SpAce StatIon is a scam to siphon off 54million US$ a day .. sorry guys but I thought your street cred was a little more informed than that . Elon however will be proud if you mention him next as that’s the vision in your sights .

  7. I think we should stop the current rampant manipulation (the last 5 months have shown us how fraudulent our systems are) of house prices and let it collapse, it will recover eventually. Will a lot of people lose their homes? Yes, but those people have taken risks that they should not have taken and will learn a valuable lesson going forward. The rest of us will be purchasing those troubled assets from them at a reasonable price and finally be rewarded for our diligent saving / investing. That is how it should be, but things seldom turn out the right and just way, so lets see.

  8. Just how corrupt can the Australian government, APRA and the RBA get and continue to get away with it. You've often spoken about the bail in legislation as of 14/2/2018. Just the way it was 'snuck' through the near empty senate that day is a perfect illustration of the underhanded tactics and corrupt activity the Australian government participates in to the detriment of the 'Australian people'!

  9. Fifty years later… and there is doubt that Apollo ever landed on the moon. Could it be because they lost all the evidence?

  10. All the okker pollies are complicit in drugs; child trafficking; pedophiles; murders all evil.And we talk about this shite! Who do you think is behind this evil? I give up on dopey okkers

  11. Man going into a lie(space) is a furfy these blokes should know better.This is what pisses me off with the CEC.
    The CEC are laggards the show already went past them.
    These ephesians 6:12 crooks are all over us with lies.. Roosevelt was a NWO commie who lead the Americans into the war with his set up Pearl harbor scam attack…time to get real!

  12. they are politicians aka ostriches God help us. Is this the best we can expect from our so called leadership. And yes a house is a place of abode first and foremost. Forget this investment BS

  13. If anyone in this day and age are pathetically stupid enough to believe a politician or a bureaucrat, lol, well you deserve all the pain you receive. That will wake you up to reality.

  14. Nazi evil?

    "We are not in the business of killing Saxons." Adolph Hitler.

    Churchill was commissioned to drag a very reluctant British Empire back into a war with Germany by the Banksters.

    He had to bomb German civilians for three months to provoke Hitler's retaliation, the so-called blitz.

    We, Us, We bombed our own kin into a bloodsoaked rubble at the behest of the Banksters.

    And the Germans, the Victims of Our atrocities, are evil?

    How easy it is to shout "Nazi". How hard is it to think.

  15. I hate it when they say their in denial (politicians). Its the weakness of the CEC to understand the psychology of the modern political system. The game of politics is to land a high paying political appointment as a member of parliament. Representative government is extinct. The political process is a sham and now dysfunctional. Career politicians have overtaken the system and self interest reigns supreme. The game is to protect your taxpayer paid job so you can retire in luxury.(SEE MO EVIL HEAR NO EVIL) . Is it that hard to understand?. Like the Roman Empire before collapse, Politics was seen as a road to enriching oneself. The CEC report is excellent but for some reason they will not reveal the core problem that now makes politics dysfunctional. The major problem is a big fat taxpayer funded pension waiting for the obedient politician. The big fat political pension is the cause of the problem of dysfunction. If politicians had to wait until 67 years of age to access the pension politics would change for the better.

  16. Efforts to introduce glass-steagall will fail because we can't defy the 5-I's + EU financial cabal rules. Just imagine what would happen if we didn't obey & follow whatever the US & UK does?

  17. Respectfully, the "space" and "Apollo 11" subjects are based on the world's greatest scientific and corporate fraud, by the mother of all fraudsters, NASA. The science fiction and fraud is still being perpetuated to this day. Don't be a part of it. I enjoy and share all your videos, except this one.

  18. Fusion Energy ? that's just 20 years away  ..    ( LOL !!! – it's been a running joke for over 60 years or so now ! lol )  –  We can't  do fusion yet  and probably never will until we develop technologies to contain pressures and magnetic strengths of a sun  ON EARTH (which is 1000 times smaller then the sun !)  . Fusion Energy is a 'utopian' thinking . Better concentrate on something we REALY can achieve NOW  – and that is Liquid Fluoride Thorium Reactors (LFTR's)  or any other kinds of Molten Salt Reactors (MSR's) . Don't go solid fuel Thorium Reactors or even worse Thorium-Uranium (weird mox fuel) reactors  as they have massive pressures in them  , just like Fukoshima , Chernobyl and Long Island  – "they are bad , mkay ?"  –  BUILD  LFTR's …  be smart . Chinese are beating us to it  ,  maybe even  they already have succeeded  … if so ,  god help us all …

  19. Not many people want to live in Mandurah but a lot of people want to live in Melbourne and Sydney especially all the illegal immigrants can be brought over to Australia with the condition that they have to live in the country towns of Australia that's the deal after the period of 5 years expires they
    Move to the city's mainly Melbourne and Sydney and house prices get pumped up again!
    The ilegal government and the ilegal banksters they won't rest till they have taken everybody's property off them so we can be a Communist country China has moved into Perth already they keep bringing in lots and lots of equipment it's unbelievable

  20. the only good thing about the moon landing was to test astronauts and various NASA rocket/ electrical/ computer engineering , and make satellites work. The moon has no feasible mining or other resources. So, the Moons only importance to humans, are the tides.

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