Superannuation Raiding Party Being Formed

Reddit

All week we’ve been talking about the big, long-term, generational trends taking place in the economy and in financial markets. Bonds are in a bear market. Residential real estate in the Western world is in a bear market (including Australia, we’d contend). Commodities are in a long-term bull market because of decades of underinvestment in productive capacity and a surge in demand from the developing world. But they are still dusting themselves off after getting blindsided by last year’s collapse in global trade.

Today we’re going to have more to say about common stocks. Some are up. Some are down. Commentators are talking about new highs on the major indexes. And over in America, the S&P 500 made a seven-month high and closed at its highest level since November 5th of last year.

Nice work S&P. Take a bow.

The catalyst for yesterday’s rally may have been that $11 billion 30-year Treasury bond auction the market has been dreading all week. It went better than expected, apparently, meaning the auction didn’t fail. That said, the 4.72% yield at the auction was the highest at a 30-year auction in two years.

Investors are demanding higher yields to loan for ten and thirty and years to debtor governments. But we think the bond vigilantes must be going soft. Someone hand them a crow bar. According to data from Merrill Lynch, 30-year U.S. bonds are down 28% this year. Ten-year notes are down 11%. And even the two-year notes-widely thought of as a near-cash bastion of government-guaranteed safety-are down 0.4%.

Losing your capital and getting killed by inflation isn’t really that “safe” is it?

Speaking of losing capital, what is Federal Treasurer Ken Henry getting on about? Has he formed a raiding party destined for your super annuation assets? Today’s Australian reports that Henry, “has established a departmental review to examine ways in which the superannuation savings pool can be directed to seed new markets and target specific areas, such as corporate debt and infrastructure.”

What does this have to do with losing capital? The government is always after your money. Everyone knows that. But if the Aussie government manages to persuade/sucker/coerce the superfund industry to invest in the government’s priorities, it will be an evolution in the kind of government-managed capital market we seem to be heading towards anyway. We’d suggest it is not a good sign for the safety of your retirement assets.

Super funds represent a pool of capital the government doesn’t have to borrow on the international bond market. Of course, technically the super money is your money. But if Henry is up to what we think he’s up to, your money could soon be financing government-backed infrastructure projects or participating in corporate bond auctions.

You can imagine the super industry would do these things anyway, if they seemed like good investments. But this latest development highlights a problem for both the industry AND the government. It’s also a problem for Australian investors if money expected for retirement is invested in boondoggles or bad corporate bonds.

For the superannuation industry, the bigger problem is that the generational bull market in stocks is over. There are still sectors and industries that will do quite well and that fund managers can profit from. But finding them and managing to get capital into them at attractive prices is going to be a lot harder. People might actually have to work for a living and even think, rather than just clipping tickets and surfing a bull market higher.

For the government, the money in superannuation funds must be irresistible. There’s just so much of it. And gee, it’s not really doing anything productive is it? If there were only a way to commandeer it legally that didn’t look like, you know, theft. Stay tuned. We’ve asked resident super analyst and over-all guru Kris Sayce to comment. More from him Monday.

This brings us to another of those long-term trends that you are probably already aware of, but which we’ll point it out anyway. People in the Western world are getting poorer. It might not look like that, with high standards of living and per capita incomes (which are not, by the way, the same as a high quality of life). But there’s no doubt that globalisation has led to wage deflation for most Western workers, especially in manufacturing but increasingly, also in services and white collar jobs.

Yep. It’s just a much more competitive world out there. And during the credit-backed boom years (really beginning in the post-World War Two years), it meant consumers were spoiled for choice with products imported from around the globe and available at relatively cheap prices.

But remember, the one factor that’s left out of all economic calculations is what’s unseen. Lower prices for consumer and manufactured goods was a tangible benefit everyone could enjoy. What was unseen was the ultimate cost of shifting production off-shore and reorienting the economy to the financial industry and residential housing. It is now being “seen” in the way a fist to the face is seen…and felt.

The ultimate cost is that most people in Western industrialised economies are getting poorer. The deindustrialisation and off-shoring orgy of the last twenty years shifted productive real assets to the developing world. It lowered real wages (adjusted for inflation) as the structure of the job market shifted towards retail, housing, and consumption and away from manufacturing and production. It also lowered savings rates as people mistook easy credit and asset price appreciation for permanent prosperity.

This cost was not apparent in the last ten years of the boom when asset prices went to the stratosphere. People appeared to be getting richer with rising home values and stock portfolios. They may have been income poor, but they were asset rich.

On the downside of the credit cycle, people are now finding out how phony the boom was. Most of the gain in U.S. home prices over the last ten years was simply inflation-funny money financing a mortgage boom that led to a price bubble. Now, asset values are falling. Net worth is falling too.

According to data published yesterday by the U.S. Federal Reserve, total household net worth fell by $1.3 trillion in the first quarter of this year, from $51.7 trillion to $50.4 trillion. The scary thing is that the first quarter drop was actually an improvement on the fourth quarter number, in which net worth fell by $4.9 trillion as the stock market crashed.

For the record, we have no idea how the Fed manages to conjure these numbers, or whether they are anything close to realistic. But let’s pretend for a moment they are legitimate and examine them in just a bit greater detail. Even though these are American numbers, we think they illustrate the same basic point for most Western countries: the credit cycle has left us asset poor and debt rich.

Let’s take 2002 as a starting point. It’s a bit arbitrary. But it was just after the long-term peak in stock markets and just the beginning of the commodity bull market.

Interest rates had been lowered globally in response to 9/11. And the debt boom that led to, among other things, the American mortgage boom, was on. The U.S. mortgage boom was, of course, the origin of all the securitised and collateralised assets that have brought the global financial system to its knees.

In 2002, total U.S. household debt was “just” $8.5 trillion. Six trillion of that was mortgage debt and $2 trillion of it was credit card debt. Over each of the next four years, U.S. households grew their debt at double-digit rates. By 2007, total household debt had grown to $12.9 trillion , $10.5 trillion of which was mortgage debt and $2.4 trillion in credit card debt.

So if you’re scoring at home, mortgage debt grew by 75% in that five-year period and credit card debt grew by 20%. Overall, household debt grew by 51% in five years, from $8.5 trillion to $12.9 trillion. And what did the economy have to show for all that debt?

Well, probably not as much as people expected. But in 2007, it looked like a good deal. The 51% increase in debt was exceeded by a 54% increase in household net worth (from $40.4 trillion in 2002 to $62.5 trillion in 2007). That doesn’t seem a lot of bang for your borrowed buck. But can you really put a price on confidence and the feeling of being better off?

Since the peak in 2007, and since the onset of the Credit Depression, household net worth has fallen by $12.2 trillion, or 20%. Over half that fall has come from falling equity prices, where household equity holdings fell from a peak value of $16.7 trillion to their current value of $9.3 trillion. The bad news is that a second wave of foreclosures on alt-A and Option ARM mortgages probably means even lower U.S. house prices and a bigger fall in net worth.

We’re not reciting this litany of depressing news to be depressing. But it’s simply not a point made often enough in the financial media or by professional politicians: this economic model of stacking on the debt to buy assets doesn’t make people richer. The assets inevitably fall in value when the credit stops flowing, while the debt remains.

That’s where we are today. And that’s why we think the case is getting stronger that inflation is on the horizon. It’s the most likely way out of the debt, aside from actually paying it off and increasing savings. Economist Arthur Laffer agrees.

Laffer warned that the huge growth in the U.S. adjusted monetary base is bad news for investors everywhere. It is an American policy with global repercussions. Writing in the Wall Street Journal, Laffer says that, “The percentage increase in the monetary base is the largest increase in the past 50 years by a factor of 10. It is so far outside the realm of our prior experiential base that historical comparisons are rendered difficult if not meaningless…

He says that, “It’s difficult to estimate the magnitude of the inflationary and interest-rate consequences of the Fed’s actions because, frankly, we haven’t ever seen anything like this in the U.S. To date what’s happened is potentially far more inflationary than were the monetary policies of the 1970s, when the prime interest rate peaked at 21.5%.”

Naturally, this is horrible news. But what should investors do? Avoid bonds. Fixed-income investments get hammered with inflation. Take a look at investments that rise with inflation, like oil for example. Crude futures went over $73 in NYMEX trading on Thursday. And did you see what British Petroleum reported in its 2009 Statistical Review of World Energy?

BP reported that for the first time in ten years, global proven oil reserves have fallen. Naturally, you don’t find what you’re not looking for. But this little number confirms the idea we presented in our “Long Aftershock” report. Namely, the capital spending collapse in the oil industry in 2008 is going to lead to a supply shortage in the coming years. When this fact collides with recovery in demand growth, you will see much higher oil prices.

Alexei Miller, chairman of the Russian’s energy behemoth Gazprom, said he’s standing by his company’s estimate that oil will soon reach $250 a barrel. “This forecast has not become reality yet,” Miller told the Guardian, “given that the [credit] crisis gained momentum and exerted a powerful impact on the global energy market. But does this mean that our forecast was unrealistic? Not at all.”

The decline in proven reserves doesn’t mean the world is going to run out of oil next year. But investors would want to factor it in to their stock selection in the energy sector. Companies that haven’t slashed exploration budgets are more likely to find oil because…well…because they are still looking for it and growing their reserves. Companies not adding to reserves are going to sell current production at today’s prices and forego higher prices from future projects.

There are other variables, of course. You have to control costs. There’s political risk, too. There’s probably plenty of oil to be found in Africa. But doing business there will be another matter. And of course, what about demand? Can you really have another wave of global asset deflation without an impact on global trade and economic growth? Won’t oil demand stagnate if the world is swept into more deflation?

No one knows. That’s the unsatisfying truth. We did read yesterday that Chinese fixed asset investment was up nearly 33% in the first five months of the year compared to last year. The data from China’s National Bureau of Statistics gives analysts hope that China’s resource-driven investment agenda is enough to pull the globe out of its doldrums, or at least keep Australia out of recession.

It’s impossible that China alone could save the world. But then, that’s the reality no one wants to discuss, isn’t it? What if there is no saving a generation’s worth of bad investment in residential and commercial property? What if households, banks, and institutions that own trillions worth of debt-backed securities simply have to take losses? What happens then? What should investors do?

For stocks, the next ten years are hazy. The world’s balance of economic power is shifting. We already know who the big losers are. Ahem. And the winners? More on them-or more specifically, how to be one of them-next week. Until then…

Dan Denning
for The Daily Reckoning Australia

Dan Denning
Dan Denning examines the geopolitical and economic events that can affect your investments domestically. He raises the questions you need to answer, in order to survive financially in these turbulent times.
Reddit

Leave a Reply

48 Comments on "Superannuation Raiding Party Being Formed"

Notify of
avatar
Sort by:   newest | oldest | most voted
Ned S
Guest

Sounds like one more good reason to have your super in a Self Mis-managed Superannuation Fund.

Ned S
Guest
A 12 May 2009 government/Treasury media release stated “… Australia’s Future Tax System Review Panel into the retirement income system … recommends: … * gradually increasing the Age Pension age to 67 years; * gradually aligning the age at which people can access their superannuation savings (the preservation age) with the increased Age Pension age …” Source: http://taxreview.treasury.gov.au/Content/Content.aspx?doc=html/media_releases/05.htm The last budget put the first one in place. I can see that the second one would be a logical enough corollary for any politician who thought it would be politically acceptable (or at least, the opposition would nod happily.) Ken Henry’s… Read more »
Biker Pete
Guest

Don’t disagree that America is cactused, Dan, but as I commented just after you arrived, we’re different! At the time I predicted housing would be largely unaffected. Our situation is just so unlike that of the US and UK. Superannuation is another matter. It’s a huge cash pool just waiting for some government to ‘legally’ access. Think I’ll grab mine ASAP and ride off into the golden sunset..!!! :)

Fred
Guest
It’ll never happen, if the super-fund fat-cats that support the pollies are already having too much fun working all that super loot in markets (properly) behind the scenes, while reporting to ignorant super-annuants a range of C grade investment vehicle “choices” with mediocre returns. They’ll hang onto that party with a vice like grip. Perhaps your super is already regularly re-deployed for the benefit of others – so that when the federalies have a crack at it too, you’ll hardly notice a thing? On another note, we see today that CBA appears to be giving the RBA the green light,… Read more »
GaryB
Guest
Can you trust Chinese Govt stats? We all know about Govts here in Aus and the US and the UK pumping out phoney CPI stats for years, to keep a lid on wages and interest rates. The rosy news out of China early last week, which continues to give a kick along to speculation in commodities and the stock markets, is contradicted by evidence on TV programmes like Dateline on SBS a couple of weeks ago, which showed swathes of empty factories – manufacturing complexes that are vegetating. China may be doing a lot worse than the rest of the… Read more »
Biker Pete
Guest
Hard to know, isn’t it? Our youngest, who speaks Mandarin, was not at all impressed with what he saw in southern China.. and left months before he intended to… . Chinese stats may indeed be fudged… but, as I look around the houses we’re building… and the non-perishable products we’re buying, day-to-day, about 70% of it is Chinese. I remember in past decades, using American, British and Australian products extensively. This market dominance is impressive, even if we’re not too happy about it! As many have commented in this forum, this is no accident. It’s part of a hundred, or… Read more »
Ross
Guest
Dan’s comment “The 51% increase in debt was exceeded by a 54% increase in household net worth … . That doesn’t seem a lot of bang for your borrowed buck.” Let’s take APRA figures for Australian bank lending to the owner occupier and investor residential property market (look at the APRA table yourself and you will see there is little by way of statistical anomoly in the following crystalising figures). Jan 1990 $60.3B Jan 2000 $268.3B Jan 2009 $786.9B Compare the compound here to the asset price inflation within your residential investment portfolio and the population growth and you come… Read more »
Biker Pete
Guest
Well, Georgia Strait is hardly the high seas, Ross. I can retire on rents any time I wish to, now. We’re so positively geared that we need never access the principal in our lifetimes. I accept that our age… and to some extent timing (and sheer good luck!) means we can up-anchor pretty much anytime. My problem is that my wife loves her work… and being many years younger, isn’t _ready_ to retire. It’s more the principle, than the principal, that concerns me. Frankly, I think it would take months to totally fool up Super… and I think I could… Read more »
Greg Atkinson
Guest
On the subject of China I would simply say whatever we think will happen probably won’t :) I recall being in China in the mid 1980’s and if you said to me then that the world would be looking to China to drag it out of an economic slump in 20 years time I would have laughed. Maybe China has already seen it’s best days? Maybe the Chinese economy will pick up again and be the world’s biggest economy within the next 20 years? On the subject of Superannuation I would say that the Government will have a hard time… Read more »
Don
Guest

I wouldn’t be surprised if the rebound in prices is driven by a Sumitomo type buy up of metals by China and doesn’t reflect any real recovery. Regardless now is the time for mining companies (like mine) to go out and raise millions in cash based on this “recovery”, at least ensuring I am employed for another couple of years.

Ross
Guest

Biker Pete, we could get along famously then when you are buying the beer. cheers.

Ned S
Guest
Fred – I can’t see the RBA increasing interest rates in a month or two. The CBA hint is simply that regardless of what the RBA does, the banks will make their own business decisions. An independant rate increase by a bank just puts a bit more pressure on the RBA to drop rates in the assumption the banks will pass a bit of it on and keep the borrowers solvent. Additionally, if my take on how the CPI calcs function is correct, a lower cost of borrowed money is one of the few things that is likely to keep… Read more »
Biker Pete
Guest

So much conflicting data, Ned. My guess is the CBA would like to scare a few punters into locking in a high(er) fixed rate, before interest drops again.. .

Biker Pete
Guest

Ross, we’ve always ‘paid it forward’, long before the film script was written. How many folk to you know who operate a _free_ guest chalet in one of W.A.’s top resort towns… and have done so for fifteen years? We believe in repaying the cosmos for its kindness… . People generally shout me the beers! :)

Ned S
Guest
Biker – I’ve got admit that if I was taking out a mortgage on property now, I’d probably tend to favour the fixed rate. The RBA can ease some more if necesssary but the rates charged by the banks probably aren’t likely to get a whole lot lower. It’s a personal bias I guess, in that rather than leave myself open to the tender mercies of the banks and the economy generally and consoling myself with the thought Everyone is in the same boat, I’d feel happier consoling myself with the thought At least I know I can pay the… Read more »
Biker Pete
Guest
Yes, I agree, Ned, but our situation is quite markedly different than most. We’re fortunate to have an appreciable off$et against each loan. A rise in our rate (say from the existing 5.11% we enjoy, to say 8%) means that technically we’re making 8% tax-free on our bank deposits. That’s why placing all our Super into offsets is so attractive a proposition. I note half-a-dozen ‘thumbs-down’ to that proposition when I last inferred this, but in reality, I’m not alone. One of my tenants, who has numerous properties (and who thinks our double-storey beach house is a bargain) does exactly… Read more »
Ned S
Guest

Thanks Biker – That’s very useful info. I’ll have a chat to my accountant about same.
Re protecting your Tangibles on another post, I wouldn’t worry too much about your super being compromised by Ken Henry. The best I’ve been able to make of it, the plan is to change the rules for those 45 yo and younger?

Garry Norman
Guest
“our situation is quite markedly different than most. We’re fortunate to have an appreciable off$et against each loan. A rise in our rate (say from the existing 5.11% we enjoy, to say 8%) means that technically we’re making 8% tax-free on our bank deposits”. As a CPA this makes no sense, here is why. Taxable income = gross income – less deductions. Interest payments are a deduction against gross income earned, if you reduce your interest amount (via an offset account) you reduce the deductions causing your NET income to rise and you pay more tax. You cant be suggesting… Read more »
Biker Pete
Guest

Depreciation schedules and other claims easily compensate, Garry. It’s working for us! :)

Garry Norman
Guest
Biker no they wouldn’t, having an offset account increases your other claims to “easily compansate” – HOW?. You said an offset is like tax free money it is not. You werent an investment advisor for STORM at some stage. Depreciation is claimed regardless whether you have an offset account. Cant you see the claim you make is crazy, here is what you are saying. I reduce my interest expenses (deductions) via an offset account but that is ok because my other deductions stay the same. So where is the advantage.? Depreciation is unchanged, other claims are unchanged, interest deduction is… Read more »
Biker Pete
Guest

‘comPANsate’, Garry? You’re a CPA?

Gerry
Guest

Leave it alone biker. You have made it clear on an ongoing basis that you are sufficiently well placed to survive all but a nucleur holocust.We get it. You dont care if interest rates rise on your loans as you have large funds on fixed deposits to somewhat offset those rises.That is good for you and all the very best. You know property but know your expertise and just keep away from the taxation and accounting issues and just cop it sweet.

TheGoat
Guest

Biker you wrote ‘comPANsate’, Garry? You’re a CPA?

I read.

Garry you are right but as im an invertebrate I could never admit it. So I will say in my usual childish manner you made a typo and just hope people dont realise you actually spelt the word correctly later in your response.

Grow up.

Biker Pete
Guest

Well, the initial response explaining the mathematics was _blocked,_ Goat… . Can’t have property looking good on a gold forum. Let’s see if this one gets through… ! :)

Biker Pete
Guest
Thanks, Gerry. I’m not here to ‘bait the bears’. I genuinely have learned a great deal from DR (US). Our retirement will be a lot more comfortable because we applied most of Bill Bonner’s strategies (albeit not in property… .) I guess one of my main issues is the common belief here that ‘Aussies have to fall so I can rise.” Nonsense of course. There’s always a win/win possibility in every property transaction. The neo-Marxists here wait, wait, wait (loudly) for their hoped-for last phase in the collapse of capitalism, to rush into property and become capitalists. I’d laugh… but… Read more »
rick e
Guest
In the 70ts did the government had tools (printing money) back then? Or did they just raise interest rates? And why? Was it too sell more bonds? Once interest rates go up people do not have much money to spend or buy items i.e. to pay off loan (moan) You must be a sheep and follow because if you try to save and buy a house without bowering, then once you have save the money too buy house the price would double? Any way I remember when lotto first came out 1 mill prize money would buy you 20 houses… Read more »
Biker Pete
Guest
Pirate land, rick? Well, the thinking here is you lay offshore and when a distressed party heels into view, you board her, shouting 60% off, you landlubbers! This apparently takes _years_ in the Land of OZ; but while you’re laying about offshore it really helps psychologically to gather together a like-minded crew of highly-successful individuals to sing ‘See-Shanties’: See it will work like this; see it’s different this time; see what’s happening in the US and UK; C, I’m a CPA, see? Nahhh, I’m kidding. You probably still have to actually work hard in this life to get ahead. My… Read more »
Ned S
Guest

rick e – One could move to America where there are lots of cheap houses. But seriously, nothing much changes – I know an old bloke who sold a sheep station out Winton way years back; Moved to the coast, bought one (and only one) house to retire in and popped the rest in the bank to live very well off the 10% interest or whatever the banks were paying him back them – Now the family are saying “Should have bought houses”.

Greg Atkinson
Guest

Ned S – or you could move here to Japan. If you get outside of the big cities you can pick up a nice apartment, the interest rates are LOW and you can ride a bike to most places you want to go :) Inflation is not a worry but the earthquakes can be!

Ned S
Guest

Biker – I think if you look back through Bill Bonner’s articles you will find he has a few properties dotted around the globe? So he obviously isn’t anti-property.

Ned S
Guest

Thanks Greg – I’m open to suggestions as you know – Smile!

prozak
Guest

Biker Pete,

Are you sure you are near retirement age? You act more like you are near school leaving age.

Get over yourself mate. There are always bigger fish and you are a tiny tiddler.

Greg Atkinson
Guest

Ned S – one of the few smart things I have done in the last few years was opt for a car-less lifestyle…actually wish I had done it earlier. I picked a place to live where everything is in bike or walking range..even the airport although that is pushing it. This is my own little way of dealing with high oil prices and limiting the amount of money I hand over to the government :)

Ned S
Guest

Biker – Despite your growing list of (What’s the opposite to a “fan”??? – Neither “detractor” nor “critic” seems to cover it?) I’ll be very disappointed if you change your style. Cheers!

Biker Pete
Guest

HaHa… thanks, Prozak. Yes, at 62, I’m going on 17. No drugs, either. Watch out for that stuff. Your doctor may prescribe it, but natural highs beat pharmaceutical crap every time.

Biker Pete
Guest
G’day, Ned. Yes, I’d have to agree that neither “detractor” nor “critic” really fits the bill. It’s demeaning to refer to them as ‘tenants’ too, since almost all of our tenants during the last three decades have been happy during that necessary phase of their lives. These are _not_ happy people. These are folk who have been waiting up to two years for fulfillment of a promise that the GPC would follow the GFC… that the great house they’ve coveted will come with a 50% price tag. We can’t blame them, while the Steves, Gregs and HaHas talk up 60%… Read more »
Biker Pete
Guest

Uh, make that “… the final _planning_ stages…”, Ned. Have to ride into town for the flu shots, now…

Greg Atkinson
Guest

Biker Pete you have lost me..when did I ever talk up property price falls and rent reductions?

Biker Pete
Guest

That’s Greg of Brissy, Greg… Steve K’s alter ego. Apologies for the confusion! :)

Greg Atkinson
Guest

Biker Pete..ok understood :) I was just worried that the sake might be affecting by brain more than I thought!

prozak
Guest

Biker Pete,

I’d say your detractors just see you for what you are…..

Pete
Guest

An old man who finds the need to gloat about his past ‘success’?

I have to admit he does well to subdue some of the less robust personalities on here with his personal attacks. That doesn’t mean his logic-defying spruiker talk is right. That old man would be talking up the might of the German army even as the allies roll into Berlin ;)

Don
Guest

There are plenty of places on the internet where people can hurl abuse at eachother. Let’s not make DR one of them.

Greg Atkinson
Guest

Don, I couldn’t agree more. We can debate, agree, disagree but there is not need to start tossing abuse around. If you have to personally attack a person to counter their point of view then it means you simply lack the skills to present your own argument in a clear and coherent manner. I hope we can do better than that here on DR.

rick e
Guest
Hi all just to let you know I am a VIP DR reader I bought into DR at the 60% off deal, anyway I like there stocks picks, I ask the Dr if there could be a private chat room or notice board so I could talk to other DR members about the stocks they pick without giving the stock picks away on there current public forum. I’d like a bit of feed back, I am sure that not everyone has bought every stock that DR tip. And I am sure there are others that have (researched) the DR tips.… Read more »
Doctor Alex
Guest

Apologies to Don who wrote on 20 June 2009:

“There are plenty of places on the internet where people can hurl abuse at each other. Let’s not make DR one of them.”

Great comment Don. Sorry, but I hit the negative vote button by total mistake, so please don’t feel that someone is hurling abuse at your comment about not hurling abuse!

DoctorAlex

Biker Pete
Guest
Actually, the fella on medication is close to the mark… financially, compared to many in Oz, I’m a tiny tiddler! As far as ‘gloating’, I find McIntyre, Melvin & Chan, and Boholt interesting reading… and never once considered them bragging, gloating or fascists for their beliefs, or success. As far as the latter, it’s difficult to define, but in my case I’ve helped hundreds of individuals to gain higher income and status, without charge; mentored all who sought my assistance, without fee; and provided free accommodation to hundreds of families who needed respite from the cities. Old? I have to… Read more »
slowlearner
Guest
Chronically cash strapped Argentina recently nationalised all private (our equivalent is SMSFs) super funds on the pretext that “as the GFC was impacting adversely on returns to private super funds the governmnet would take them over in return for the default state pension to protect them” In other words, “we’re from the governmnet and we’re here to help you” Remember the words “Hi, I’m Kevin from Queensland and I am here to help you?” The trade union run industry super funds will be the first to be “voluntarily” nationalised. Of course, these decisions are being made by politicians and bureaucrats… Read more »
wpDiscuz
Letters will be edited for clarity, punctuation, spelling and length. Abusive or off-topic comments will not be posted. We will not post all comments.
If you would prefer to email the editor, you can do so by sending an email to letters@dailyreckoning.com.au