Thursday, 21 June 2018

Around the Traps 22/6/18

It is time again for Around the Traps.

Aussie,Aussie,Aussie,Oy,Oy,Oy
Northern America
Europe
Asia
Wonk
General
Climate
Andrew Gelman (mainly stats)
Genial Dave Giles(econometrics)
Dianne Coyle (quirky + book reviews)
Vox wonk

Wednesday, 20 June 2018

Income tax 'cuts' almost always increase the structural deficit.

Income tax 'cuts' almost always increase the structural deficit.This is because the commensurate cut in spending is never done.
Reagan and Bush and now Trump have done this in the USA. Howard did this in Australia ) It should be remembered the ALP did not criticise this. Indeed they implemented some of the cuts.
HERE is a good article about what a structural deficit is and what it means. HERE is my modest article on it. HERE is a good article about a person who does not have a clue about the subject!

If a Government cuts taxes but not spending it means revenue will not rise as it should.For a government to do this in the context of budget repair it is the height of fiscal irresponsibility. More so if you put a cap on revenue as a % of GDP.

Me thinks if the ALP puts budget repair top of the pile and not tax cuts they will romp in.

Monday, 18 June 2018

Scott Morrison caught out again.

Liberals as slow  learners.
when they originally won office Abbott and hockey tries the cupboard is bare argument. Only problem was PEFO. It showed their argument was cobblers. It seemed  neither understood fully what the charter of Budget Honesty really means, Strange they were ministers when the legislation was brought in.

Now Scott Morrison has been caught out again on PBO costings. Neither his office nor even Morrison himself seem to understand that the PBO can cost any policy as well as Treasury. Trying to 'fiddle' with their costings is stupid.

Introducing the PBO was the best thing Wayne Swan ever did besides ensuring we did not get a recession from the GFC.
Anyone in Parliament has access to it thus Oppostions now have no excuse for poor costings. the ALP are using it very well.

Sunday, 17 June 2018

Australia V France

So near yet so far away.

We deserved a draw yet were denied. in this family of referees we were absolutely perplexed by the VAR decision. When the FIFA technical committee decided to give reasons why the decision was correct it got worse. Risdon got the the ball yet it was a trip?
I maybe a tad too cynical but if the incident happened at the other end then I very much doubt any decision to review the decision would have been made!

'Aussie' Bert made one bad decision. Rogic should not have played. He was never going to get the space to do any attacking and his defending is always on the light side. Irvine would have been a better selection and would have let both Jedinek and Local Carlo boy Mooy to less defending and thus more energy in the last 10 minutes.

I also did not understand putting on Juric.

Some might say we did not look like scoring. Well neither did France.
Sainsbury and Mooy were magnificent. But there was not a bad player on the filed.

I am confident we can beat both Denmark and Peru.

I suspect Mooy is buggered after this game so I would pick McClaren up front for his pace and striking ability, Azhari in stead of Kruse, Irvine instead of Mooy.

Go you good things.

Whoopsy,
I should have added Aussie Bert and his crew performed wonders in the defence. We would have leaked a number of goals against France under Ange, not under Aussie Bert.

Thursday, 14 June 2018

Around the Traps 15/6/18

It is time again for Around the Traps.

Aussie,Aussie,Aussie,Oy,Oy,Oy
Northern America
Europe
Asia
Wonk
General
Climate
Andrew Gelman (mainly stats)
Genial Dave Giles (econometrics)
Dianne Coyle (quirky + book reviews)
vox wonk

Tuesday, 12 June 2018

Trump and Kim meet

Well they both have met.
We know for example Trump gets on with the dictator better than the elected leader of Canada, Says a lot really.
We again find out Trump is hopeless with alliances. He knows the costs of everything but the value of nothing.
He again does something which he does not tell South Korea about.

I tend to agree with Benjamin Habib. as Walter Mondale might say wheres the beef? We might have gotten a definition of what denuclearisation means!

added bonus Daniel Flitton

I forgot two things.  Why the 1994 deal failed.

Why would the most stringent inspections succeed in North Korea when they were clearly succeeding in Iran but Trump broke the deal.

Sunday, 10 June 2018

The Socceroos and Russia

I must be honest. I am not optimistic about our game with France on Saturday night.

First the good news.
History shows France is a slow starter, If you must play them then the first game is the best.
It also shows south American teams do not play well in Europe.
We also know Denmark have injury problems in their defence and the replacements are slow ( which is why McClaren is still in the squad.

Now for realism.
We have played four games under 'Aussie' Bert. We have only played well once.
both Milligan and Risdon look out of their depth in their respective positions.
Abbout is fast, fit and will ling upfront but lacks touch.
Mooy is not giving any killer passes to Leckie or anyone else.
It appears Milo is on the outer and he was a tower of strength against Honduras. He never lost a tackle or header. He was inspiring.
Rogic and Mooy appear not to be able to play together, They have defensive limitations.

My thoughts.


  • Move Rogic to Striker. He does have one hellva strike on him 
  • Move Milo to centreback back
  • Pick Arzani ahead of Kruse. Kruse has not been the same player since he was badly injured.
  • Pray!!!
I always live in hope however

Thursday, 7 June 2018

Around the Traps 8/6/18

It is time again for Around the Traps.

Aussie,Aussie,Aussie,Oy,Oy,Oy
Northern America
Europe
Asia
Wonk
General
Climate
Andrew Gelman ( mainly stats)
Genial Dave Giles (econometrics)
Dianne Coyle ( quirky + book reviews)
Vox wonk

Wednesday, 6 June 2018

A few comments on Australian politics

By-elections
We had recently Reach-Tel polls both nationally and on two by-election seats.
A few things to note. polls on by-elections are quite unreliable. As a resident of Bennelong I know this only too well.
We can add to that by asking why the two seat polls are so different to the national poll particularly since both are marginal seats.

Barnaby
I do wish Joyce would leave politics and get a job with Hancock. He is insufferably embarrassing these days. For  such a 'wonderful' retail politician and she being a PR guru they both stuff up every time when they front cameras or give an interview.

One Nation

I talked before about Pauline Hanson. doesn't she look old and haggard these days!  I am afraid implosion will always occur in One Nation as it is essentially a cult built on Hanson. When people are elected and realise she is not very smart ( euphemism) and has a Svengali behind her there is always a dispute. What makes this worse is that she demands loyalty and gives none herself.

Tuesday, 5 June 2018

South Australia a net electricity exporter?

Surely this cannot be true. south Australia is now an electricity exporter.

Yep it is even though plenty of 'conservative' commentators said blackouts would be a way of life given how much renewables is a large part of electricity generation in south Australia.  The Tesla battery has a competitive advantage when it comes to dispatchable power.

No wonder AGL is planning on a battery at their Liddel site when the power station is no more.

Monday, 4 June 2018

Sydney Radio

I thought I would get away from the serious today.

I will concentrate on AM radio as the only FM radio I listened to ABCFM and whatever 102.5 is calling itself. ( it has a great blues program from 8 p.m. on Monday nights).

ABC Radio  National is a jewel. It is also a bit of a curates egg. I have neither the time nor the inclination to investigate all the programs they have but a few I do like are:

  • Background briefing. It it is on a subject that interests you it is essential listening. I still remember one done on dentistry and Multi-national corporations. My demist fully supported its investigations.
  • Geraldine Dooge and her morning program on Saturday. If I am awake I always listen to it.
  • Tom Switzer's between the lines. He has personality and interesting guests
  • Phiilp Adams late night live. Loads of personality , a great radio voice and fascinating guests usually talking about their book articles.
  • Breakfast would be essential listening if Hamish McDonald took the program over from Fran Kelly.

ABC News Radio is very good when parliament was not on. News from around the world from various radio organisations. Hate Aussie rules on the weekends though.

ABC Local radio ( which is what they call 702 these days) is good for the current affairs programs when on. AM on in the morning , PM in the evening and the world at noon at midday. ( strange about all those programs.)

2GB is the highest rating station. It is also the most biased station. Tony Abbott, Peter Dutton are regulars who 'interviewed' on the station. Fake news like a lack of electricity following Liddell being closed own is regularly talked about.  Malcolm Turnbull is not liked but tony Abbott is. some of the 'personalities' have do have loads of personality so you can understand why they are successful.Ray Hadley or Ben Fordham come to mind. however Alan Jones does not . He is simply a grumpy old man who whinges a lot and he has no personalty. ( My own Alan Jones story will come along at some stage. He sounds like the insecure, vindictive person he is yet he is popular. why?

2UE is now simply a sports station after its  unsuccessful foray into lifestyle. most of its presenters are deadset boring. ( is that a good sporting sentence). I don't want to hear about ice hockey or US basketball or even AFL .Its superstar is Billy McGee. Loads of personality, tons of enthusiasm for any sport and always talks as he understands all facets of the sport he is taking about,, I know him from the A-League show on 2GB and he is a breath of fresh air. He comes on about 8.15-30 at night to talk about up to date sport.  He talks as though he is a lot younger than he actually is.
One boring thing is on saturday and sunday night they replay press conferences.

2KY is simply if you are a loser who punts a lot and thus loses money. Only in Australia.

It can get very boring at night on the weekends with all station ( except radio national and 2 KY) broadcasting AFL or NRL games.

Sunday, 3 June 2018

If you like Statistics ( and econometrics)

Over at the excellent Econbrowser Menzie Chinn put up this post estimates-of-excess-fatalities-in-puerto-rico-post-maria and then this post excess-deaths-inferred-from-puerto-rican-administrative-data and finally this post please-do-not-comment-on-this-post-unless-you-understand-the-following-terms. Sorry this is the last post garbage-and-non-garbage-estimates-puerto-rico-edition

I  told them all TWICE to read Andrew Gelman's post which was data-code-study-puerto-rico-deaths.

All useful posts if you merely studied statistics at Uni when doing Economics like me.

Please note the comments . They are quite good at Andrew's blog. Not so at Menzies's.

I should add it highlights the difference between statistics which is Andrew's great strength and econometrics which is Menzies's

Thursday, 31 May 2018

Around the Traps 1/6/18

it is time yet again for Around the Traps.

Aussie,Aussie,Aussie,Oy,Oy,Oy
Northen America
Europe
Asia
Wonk
General
Climate
Andrew Gelman (mainly stats)
Genial Dave Giles (econometrics)
Dianne Coyle (quirky + book reviews)
Vox Wonk

Wednesday, 30 May 2018

The US company tax cuts

There has been a lot of debate on what will occur in lieu of the reduction of corporate taxes in the USA.

Willem Buiter and Anne Sibert examine this in a really interesting article.

Menzie Chinn back in April examined net-vs-gross-investment It is related.

Tuesday, 29 May 2018

Poll roundup.

A bonus today as the imitable Mark the Ballot writes on newspoll-adjustment.

Then of course we have the latest from Kevin Bonham.

He savages Simon Benson quite rightly.

Monday, 28 May 2018

The Carbon bubble and the pricing of bank loans

An utterly fascinating paper at what I call Vox Wonk called carbon-bubble-and-pricing-bank-loans.

It appears banks did not price in much risk ( in terms of stranded assets because of climate change) before 2015 but appear to be doing so now.

In Australia it is highly pertinent in the financing of coal powered stations.!

Sunday, 27 May 2018

Trump and the Korean Farce

Donald trump has not grown in office. He remains the total ignorant  person he was on the campaign trail.

Other Presidents have said no to North Korea even after the leaders of the two Koreas have met. He has few if any decent advisors in Foreign Affairs and certainly none that have any expertise on the Korean peninsular.

It puts the Korean murderers on an equal footing with the US President for a start.
After boasting he should get a nobel peace prize Trump then cancelled the meeting on the most specious of reasons. There have been a lot of humorous memes on Trump's woeful letter.  It would have helped if Bolton and Spence had a little of of knowledge on the Korean situation but they have not apart from Bolton wanting to stop the meeting. ( His writings range from delusional to a outright absurd. Can anyone imagine what a new war bring?)  Spence is simply an ignorant fool when it comes to anything on foreign affairs.
How come no-one there understands the first person you tell about breaking a meeting is the south Korea President.

The Korean murderer is more than a match for Trump in the PR stakes. Knowing the South Korean noses would be out of joint he met again with the South Korean President. This put Trump in an untenable  position.

So now we have US officials trying again to organise a meeting.

The whole thing shows Trump and his 'team' are ignorant and really do not have much of a clue.

Some additional material.



Thursday, 24 May 2018

Around the Traps 25/5/18

It is time again for Around the Traps

Aussie,Aussie,Aussie,Oy,Oy,Oy
Northern America
Europe
Asia
Wonk
General
Climate
Andrew Gelman ( mainly stats)
Genial Dave Giles (econometrics)
  • nuttin
Dianne Coyle (quirky + book reviews)
Vox wonk