Australia, you’ve officially jumped the shark

But.....the AUD didn't 'go with' the Reminbi....? In fact, most senior economists have said there's an element of decoupled buffer between the Reminbi and the AUD.....the USD.

I mean, the Renminbi devalues 2% and the AUD slips barely a cent against the USD? Not exactly fireworks.

 

Good point.

From my experience as both an employee and as an employer, most workers go to work and do a decent job, then go home.

The percentage who go to work and actually think like, and think for; the Company and/or the Boss, and look for ways to make themselves more valuable, and to look for ways to make the business more profitable - is small.

As an employee, I have always tried to be involved in the business and think of ways to help my Boss make more; to keep my job secure etc. There is no guarantee this will happen, but I'd rather be a benefit, than a certain redundancy candidate.

I have had such employees who were terrific contributors over and above their job description, and they were well compensated for their attitude and contribution.

 

Alan Kohler on the news last night stated that in real terms after inflation the average wage went backwards this last quarter.

This is a sign that employers are not too keen to increase wages, not too keen to hire.

You have to ask yourself; why?

What staggers me is how the CBA can still post a record profit....again in this climate.

 

True, our dollar didn't move much against the $US but the devaluation in the Reminbi makes it less likely that the Chinese will be able to afford to buy the products that were touted as our export saviours under the Chinese FTA (iron ore, beef). There's also been a concerted effort on the part of the Chinese government to make their own iron ore more competitive with Brazil and Australia so the devaluation will help immensely.

 

The bankers and financiers are at the very top of the food chain, they can buy and sell politicians at the bat of an eyelid. Why do you think all the talk of macroprudential reform last year disappeared into the ether? The Big Four told Canberra not to do it, that's why.

We had our treasurer telling us last year that our 'healthy' banks were the envy of the world and that the mega-profits they are making are actually wonderful for the country because that money eventually filters back into ordinary people's superannuation. The banks are untouchable in nearly every sense, they write their own rules.

On the other hand, millions of workers in this country on average wages appear to have no leverage whatsoever in the political system despite the fact that they're the ones who actually elect the people who govern. They're also the ones who are keeping the show on the road... Although shrinking wages might look good for business on paper there will be all sorts of terrible unintended consequences over the next few years.

 

.....and such is the reason for the Chinese wanting to stimulate their domestic consumption.