The Platypus Exception

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Will the markets – both housing and equity – continue to be responsive to changes in the cash rate made by the Reserve Bank of Australia? Or will Aussie mortgage rates decouple from the cash rate as the global cost of capital goes up? That was just one of the many interesting questions that came out of last night’s debate with Rory Robertson.

If you’re a pugilist or a fan of broken noses, you will be disappointed to learn the evening did not come to blows. It was spirited though. And by the end of the night, it was clear what the differences are in the positions: one camp believes things are pretty much okay here and house prices are supported by population growth and low interest rates. The other is a bunch of wacko residents of Extremistan with odd theories about what money is.

More on that shortly! A hint – we are all residents of Extremistan now, thanks to 30 years of cheap money fuelled global growth. The great contraction is upon us.

But the RBA was really the big newsmaker in Sydney yesterday and was not at all worried about Extremistan. The men who set the price of money in Australia decided it was neither too hot nor too cold yesterday. It’s just right…for now.

If it’s really true that a small group of men and women can know what the price of money should be at any given moment, then we’re going to write Pope Benedict and ask that he cannonise Glenn Stevens. Each interest rate decision is a kind of transubstantiation…a miracle whereby the tens of millions of private calculations in the real economy are simultaneously subsumed in the brain of the central banker…and turned into a price.

Monetary miracles aside, the markets seemed to like the RBA’s statement. US stocks were up and the Aussie dollar rallied. Newswires referred to the RBA’s vaguely bullish comments about Asian growth. Everyone is still hoping China can do whatever it’s still doing for Australia, in whatever way it’s still doing it.

What is it doing, anyway? It occurred to us that the correlation between low levels of Australian unemployment (around 5.6%) and Chinese resource demand is something more alleged than proven. There may actually be some proof that Chinese resource demand supports a large part of the Aussie job market. But we haven’t seen it yet. If you have some, let us know.

Meanwhile, the Wall Street Journal‘s Matt Phillips reports that the RBA’s statement might not be as bullish as risk traders and yield hunters have been led to believe. He quotes this line from yesterday’s announcement: “The expansion remains uneven, with the major advanced countries recording only modest growth overall, but growth in Asia and Latin America, to date, very strong. There are indications that growth in China is now starting to moderate to a more sustainable rate.”

“Starting to moderate…” Hmm. The issue of China’s relative strength has indirect bearing on the housing argument. The bulls argue that a strong economy with low unemployment means no mortgage stress for cashed-up and fully employed homeowners. Only a rise in unemployment to U.S-like levels (officially 9.7% but likely at least twice that) would kick the legs out from under all those new first home buyers the government invited into the market.

But as long as it’s all good in China…she’ll be right.

And in what looks at least to be unambiguously good news, Australia ran a $1.65 billion trade surplus in May, according to figures released yesterday from the Australian Bureau of Statistics. Thank you coal, you black beauty you. And thank you iron ore you reddish orange beauty, you.

That kind of national income may, now that we think about it, support employment indirectly. The money comes in. It has to go somewhere. Will it go to foreign shareholders? The government (taxes)? Or will it go forth into the economy and multiply?

John Peters, a senior analyst at Commonwealth Bank, says the figures may force the RBA to put up rates even higher later this year. “Trade will clearly be one of the key factors to drive economic growth back to a higher level, along with dwelling investment and business investment. This type of growth in export income is a fairly significant stimulus.”

If he’s right, then the obverse must be true too, right? That is, if booming coal and iron ore exports support the economy in strange, mysterious, and potentially stimulating ways, then crashing coal and iron ore prices undermine Australia’s economy in potentially recessionary ways, do they not?

Well of course they do. It’s not that much of a mystery. But if you’re not familiar with the argument, check out our Exit the Dragon report for the whole story.

We’ll leave it others to decide who won last night’s debate. To be fair to Rory, most of the time, anyone making the orthodox, steady-as-she-goes, keep doing what you’re doing argument is right. Most of the time, the extremists are wrong.

But not all the time. And when they are right, the magnitude of their rightness is breath taking. More importantly, our central point last night was that central bank manipulation of the cost of capital is what creates bubbles…giant oceans of misallocated capital based on bogus price signals that encourage consumption and production out of whack with underlying demand (not supported by cheap money).

Further, there is ample evidence in the last ten years that globalisation accelerates instability. Cross-border capital flows are great for investors, to be sure. But the more complicated any system gets, the more unstable it gets too. And in the chase to instantly price in and understand thousands of events each day, investors rely on models to find out where the best place to park their capital.

But these models – from Long Term Capital Management’s to Bear Stearns and Lehman and AIG – rarely model the extreme event (a credit depression). Statistically, their models tell them the probability is so low it is not worth preparing for.

We’ve seen how that worked out, haven’t we? And if the number of extreme financial events seems to occurring with more frequency than models would suggest, an inquiring mind would want to know why, wouldn’t it?

The answer, we think, is obvious. Cheap money creates credit bubbles and misallocated capital. Asset prices driven up by borrowed money eventually revert back to a mean when the money dries up. Our central argument is that Australian house prices are the last in a long line of leveraged asset booms, all of which, save Australia’s housing market, have blown up.

Real estate, though, unless it’s a world-class cluster-storm like the U.S. subprime crisis, rarely blows up. It unwinds over many years. Buyers are generally not forced to sell and the market can remain illiquid for many years until a market clearing price emerges. In real terms, house prices stagnate.

That is one possibility here in Australia. Another is that your editor is flat-out crazy and has failed to understand the basic structural forces that support house prices in Australia – immigration, restricted supply, low rates, and a pre-disposition to homeownership.

For various reasons we won’t go here, we think all of those arguments are tenuous, or at least variable (immigration rates can change…demand for accommodation does not automatically correlate to mortgage finance demand…interest rates are at historic lows and probably headed up).

But by the end of the night, we think the debate had produced a clear difference of honest opinion. Rory, if we understand him correctly, believes the ultimate job of the central bank is to support asset prices by lowering the cash rate in times of crisis. We believe the central bank creates the crisis with an artificial cost of money that inevitably is kept low to promote growth (and keep the property spruikers happy).

It ought to be the central banks role to promote and guard sound and honest money, not support asset prices. But then, we don’t believe there ought to be a central bank at all. And in any event, the coming months will tell us who really determines the price of money in Australia – the RBA or the global bond market.

Already Australian banks borrowing money over-seas – and Aussie banks finance at least a quarter of their domestic lending from foreign borrowing – are having to pay more than the cash rate. Funding costs are up. Rory conceded that in a genuine credit crisis, Australian banks would be hard done by.

The question is whether there will be a crisis that pushes up funding costs so high Aussie banks must put up mortgage rates too. It may not have to be some crisis event, though. As we’ve reported in the past, public and private sector borrowing – some new short-term borrowing and some rolled over from lower rates – is set to hit nearly $5 trillion in the next 24 months.

Australian banks have to compete for that capital with other global borrowers. The big saving grace now is that the difference in yields between Australian and American debt makes some Australian debt attractive on a yield basis to foreign investors. Imagine that. Investors hunting for yield through securitised residential mortgages.

You could even argue, though Rory didn’t, that fixed income Australian securities would be the toast of the globe if the Fed chooses to keep rates low. But our argument would be that in a second phase of the credit depression, Australian assets will be treated like the plague (as is the case with most risk plays…and Australia is considered a risk play). Without the funding, what then for house prices?

What we both agree on is that no one knows what will happen. Your editor believes that the Austrian theory of the business cycle has both explanatory and predictive power when it comes to figuring out what has to happen at the end of a leveraged asset boom. But it is true – from meat pies to the platypus (both reptile AND mammal!) and in many other ways-Australia is exceptional. So will the housing market here be the only exception to the rule?

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.
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87 Comments on "The Platypus Exception"

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Benjamin Marks
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Apropos to Mr. Denning’s excellent arguments, Adam Smith said: “A dwelling-house, as such, contributes nothing to the revenue of its inhabitant; and though it is, no doubt, extremely useful to him, it is as his clothes and household furniture are useful to him, which, however, makes a part of his expence, and not of his revenue. If it is to be let to a tenant for rent, as the house itself can produce nothing, the tenant must always pay the rent out of some other revenue which he derives either from labour, or stock, or land. Though a house, therefore,… Read more »
Jay
Guest
I personally believe that rather than China being the supporter of our economy, it is house price stability (stabilised partly through Government manipulation via increased FHBG, banking guarentees and the RBA) that has maintained our low levels of unemployment. We fortunately avoided a large enough bubble popping pin, for the moment.. Currently, I see house prices supporting the economy more than the economy supports it. Although real wealth cannot be generated through a non-productive speculative investment, business stability provides more productivity than business instability. Now the point where this has become skewed is that instigation of large boom cycles (house… Read more »
Ross
Guest
Jay, super, the 4 pillars, house prices. All the same cheap one liner socialist party trick to ride cycles and build pretend wealth. “Stabilisation” until the forces of misallocation created by that very false notion of systemic de-risking cause inevitable bubble then collapse. From the perceived “stability” we generate discretionary services consumption which we milk with consumption tax and it lasts as long as the pantomine does. You will get to look back and see whether you have built good productive infrastructure in the meantime or whether we have flushed it all down the toilet with middle class welfare and/or… Read more »
KP
Guest
Ah, Jay… you would need the Govt right out of housing to sort it out. From their Council planning experts and zoning to their fees for permits; from the stamp tax for State Govts right through to the Feds competing with private landlords and having a private bank, the State distorts the housing market. Without any State involvement I’d expect houses to drop from $400K to $200K, but much more important is that you could stick two packiing cases together and live in them. Its not the million dollar end that suffers important distortion, (although from the moans of the… Read more »
antisoc
Guest

any chance of getting a transcript for that debate? Maybe the video/sound was recorded and can be put up on youtube for all DR followers? I and im sure many others here, would be very interested to hear more than just a summary of the events…..

Biker
Guest
“To be fair to Rory, most of the time, anyone making the orthodox, steady-as-she-goes, keep doing what you’re doing argument is right.” Yeah! :) and “…your editor is flat-out crazy and has failed to understand the basic structural forces that support house prices in Australia – immigration, restricted supply, low rates, and a pre-disposition to homeownership….” Nah… . Dan’s been here for decades! He _understands_ us. :)
Jay
Guest

What would be worse, allowing the banks to fail through letting house prices rot or maintain a stable price level? Dont get me wrong, I would love to see prices fall to pieces, besides the fallout…but say if it were possible for our hard earned tax money or use of low rates to keep house prices under support, would the country be better or worse off 10 years down the track?

Biker
Guest
“…would the country be better or worse off 10 years down the track?” A few here certainly would be better off… and that’s far more important, isn’t it? :) Your hypothetical demonstrates perfectly why financial refugees should immediately charter a vessel to Extremistan before Australian banks fail, property crashes, stockmarkets plunge, unemployment doubles, China pops and numerous other calamities befall us. If the vessel sails off course, put ashore _anywhere_ else on the planet and seek refugee status. You’ll be _much_ better off than in Oz. And remember to advise the government of your new refuge of your ‘banks-must-fail’ plan.… Read more »
Ross
Guest

US bankster insiders with less self incriminating testimony emerging :

http://noir.bloomberg.com/apps/news?pid=20601088&sid=aB6iaq_10GJo

Motive for smoke derivative counterparties is established. A long way to go yet.

Question on Obama political position on $400m bankster lobbying spend vs bank balance sheets position being far worse than presumed? How about both?

PremiumFinance
Guest

Hey Dan, this is interesting post. Australia has succeeded by staying out of the global recession but will the country bet better or worse after ten years is very tough question. Personally I think the country’s property bubble may be worse off in 5 years as I think it may go burst as it’s getting out of hand with some of the prices and competition to buy houses , it reminds me of some areas of Europe where for about 10 years of booming money its goes all of sudden burst.

Ned S
Guest
Hey Biker, what do you reckon about that idea of trading Oz residential RE housing indices on the ASX? Sounds like it could have some advantages – No tenants to give a bloke grief; Don’t have to share any of the rent with the likes of management agents or local city councils or tradies (because there is no rent I guess – Bit of a bummer that but what the heck, they don’t earn much rent anyway); Could still do all the neg gearing stuff I assume – Just like any investment; But a bloke wouldn’t get to claim depreciation… Read more »
Biker
Guest
Don’t know enough about it, Ned. We’re really happy with the way it’s working now… . Our only real concern is that one of our two rental agents is really ripping us off. The other company charges us about half as much. Once we’re both fully retired, we’ll scrap the first agent… and save ourselves thousands annually. We’ll keep the second agency, as a.) they’re honest and fair; b.) we’ll be abroad so much. What appeals to us about property is that it really is _tangible_. There’s nothing illusory or transitory about it. I read OMG’s post with some “there-but-for-the-grace-of-God”… Read more »
Stillgotshoeson
Guest
Comment by Jay on 8 July 2010: “What would be worse, allowing the banks to fail through letting house prices rot or maintain a stable price level?” ” would the country be better or worse off 10 years down the track? ” My personal belief is the banks in America that were going to go under should have gone under, those people fortunate enough to have had a mortgage through those banks should have ended up with their houses free and clear. The “Keynesian” aspect is the US honours the citizens deposits only. TThe US would be in a far… Read more »
Biker
Guest
“…if the debts had been written off and limited, instead of going onto the public purse whilst still on the private sector too.. Things would be a lot better… ” Initially I thought your opinion completely correct, Shoes. But why should bank depositors’ savings be lost, to save property owners? Neither group should ever have been exposed to the fraud of those Ross rightly terms ‘banksters’. Something of the magnitude of this fraud would undoubtedly be the subject of a Royal Commission here, with the guilty parties gaoled as Alan Bond was. Yes, the Yanks convicted Madoff, but they also… Read more »
Stillgotshoeson
Guest

I did not say depositors money should be lost.. The Deposits should be guaranteed..
either through an insurance or government policy.. “deposit Guarantee”

Biker
Guest

“I did not say depositors money should be lost.. The Deposits should be guaranteed.. either through an insurance or government policy.. “deposit Guarantee”

We agree. But as _no_ private company would ever insure no-doc, low-doc NINJA loans, you really mean government insurance, government intervention.

Dan
Guest

Madoff got done in because he ripped off the _wrong_ people. Us ordinary people don’t really count.

Biker
Guest

“Us ordinary people don’t really count.”

Hey, we ordinary people count… on all seven fingers, in my case… ;)

Ned S
Guest

Depending whether you are talking about one hand or two, you’re either a chippy or a mutant then Biker?

I can normally get to five OK, but lose count when I have to switch to the other hand.

‘Course me bro’s the brains of the family – I’ve heard him get into double digits with his shoes and socks off! :)

Stillgotshoeson
Guest

It is possible, if Biker is truthful, that he lost a few fingers in a motorcycle accident. I nearly lost my left forearm when I crashed my FJ1200 back in 1989. Lucky for me Surgeon saved it so I still have 10 fingers

Steve
Guest
It looks like the “investors club” is at it again, http://au.biz.yahoo.com/100706/2/2e463.html Apparently they are now “demanding” the Reserve bank slash interest rates by 2% “demanding” woow I am sure the RBA will be taking this seriously hahaha “Investors Club president Kevin Young said the group recently had a meeting with RBA officials to ask why Australia’s interest rates are higher than those of other nations.” Maybe while he is at it this moron could ask why our housing is over double the price is should be and why his greed is more important than Australians who want a roof over… Read more »
Ned S
Guest

Yeh, by and large Shoes, from what I’ve seen, bike enthusiasts either find their careers cut short or find it is no longer critical to keep testing their theory that the faster they can get across the intersection, the less likely it is that something will hit them. ;)

Biker
Guest
Or I simply can’t count to ten, as Ned surmised. Maybe a kinder way of correcting the all-too-common ‘us / we’ phenomonen(?) ;) Nice motorcycle, Shoes. Hope the bike survived OK… . No digits missing, but enough stainless and titanium to keep a Third World country in budget surplus. (Just got thru’ the metal detectors without a peep.) “I’ve heard him get into double digits…” Ahhh, if we get into double digits, Steven might get his McMansion, Ned!!~ Investors’ Club? Ours has two members. A fella who _is_ a member dropped by when he saw our For Sale sign recently.… Read more »
Biker
Guest

Ned: “…their theory that the faster they can get across the intersection, the less likely it is that something will hit them…”

That’s actually one of my ten rules for survival, Ned. Comes right after: “Every b*stard out there is trying to kill me!~” Forty-two years’ continuous riding on 26 motorcycles and our Ten Commandments still apply. :)

Ned S
Guest

“Every b*stard out there is trying to kill me!” – I rode for a few years Biker. And ended up coming to the genuine conclusion that automobile drivers genuinely didn’t see me. ‘Course the reason they don’t see a bloke is usually because they aren’t looking for you. But either way none of it is a huge consolation while the various body bits are (hopefully) mending … :)

Steve
Guest

Yes biker you tell him that I am sure he had plenty of other properties to pick from.

Stillgotshoeson
Guest

Comment by Biker on 9 July 2010:

Nice motorcycle, Shoes. Hope the bike survived OK… .

Nope.. Bike was written off. Bought another FJ1200 in 1995 Had that till 1999 when my first son came into the world and I sold it.
My first bike was a BSA Bantam.. Not many of them here but back home as a teenager they were a bit more common.

Biker
Guest
Shoes: “Bike was written off.” Sorry to hear that. Mine cartwheeled at 110 kph, full-toss hit. Rebuilt it, using parts obtained from the internet, after I got out of hospital… a fairly long visit. Steven: “I am sure he had plenty of other properties to pick from.” There are a few, but not in our price range; or built to the quality we attain. Doubt he found one, but maybe the Investors’ Club found him one! ;) Ned: “…automobile drivers genuinely didn’t see me…” It’s the ones turning right, across your path, that will take you out. Nearly forty years… Read more »
Ned S
Guest

Just reading the front page of the Sydney Morning Herald online, an oversimplification could be that either the days of ‘high’ interest rates are over or the Djia is on its way to 1K over the next Austrian business cycle:

http://www.smh.com.au/business/stagnant-rates-rock-savings-returns-20100709-10383.html

http://www.smh.com.au/business/guru-predicts-dow-could-fall-to-1000-20100708-102eb.html

The good news is that horse meat may be available for the privileged few who can afford protein:

http://www.smh.com.au/lifestyle/wellbeing/horses-for-courses-as-diners-eye-off-equine-entrees-20100708-101ws.html

Bunny ‘n bungarra stew is sounding better all the time Biker! :)

Ned S
Guest

“It’s the ones turning right, across your path, that will take you out” – Yeh, one got me that way too; A bit over 30 years ago. Not sure what the go was really? – She was on a giveway sign and had slowed right down to do all the right things and have a good look both ways – And immediately after looking at me she drove into me? ! :) :) :)

Stillgotshoeson
Guest

Shoes: “Bike was written off.” Sorry to hear that. Mine cartwheeled at 110 kph, full-toss hit

Over 100mph for me… Shattered both bones in my left forearm, 6 broken ribs, wrenched knee and a dislocated shoulder. Not a scratch on my body though, riding gear took the “scrapes” Only have scars on my left forearm from the surgery to put the plates in..

Bike. Busted forks, front wheel never seen again, frame bent, engine casing ground down on one side.

Biker
Guest
Pretty sure it was actually Shoes who alerted me to Prechter’s warnings, Ned. Coincidentally, he also recently predicted that the banks would forget about the RBA’s recommendations… and just raise rates willy-nilly… . Against that scenario, new rules prohibiting exit fees _may_ rein the banks in a little. And construction and new building starts are falling all over the country, meaning banks will compete for reduced starts. The figures for FNQ, if true, are staggering. House monthly approvals have fallen from 177 per month to 68. Units are worse, having fallen from 85 per month, to just _four_. The number… Read more »
Biker Pete
Guest

“…front wheel never seen again…” HaHa….!!~

I never saw my front mudguard again either. It’s said that no-one bothered to extract it from the roo.

The roo was apparently propped up against an electricity pole, its front paw wired up in the V-for-Victory salute. It was gone by the time I was discharged, so I can’t verify the story. :)

Biker Pete
Guest

“…immediately after looking at me she drove into me? ! :) :) :) )

Two similar near misses, Ned. Both drivers (one an elderly woman) established eye contact, then proceeded to turn across the bike’s path.
Rule One applies again. “Every b*astard AND his Mother is trying to kill me.”

Ned S
Guest
They slow down to steady their aim maybe Biker? :) There’s a correction cooking over this way. Out in the boondocks at least. Stuff you could buy 15 years ago for 50K that went up to maybe 320K looks to be more around 280K now. Lots of differences in suburbs though. The new boondocks on the northside has lots of stock but no cheapies. I do love bike yarns – On the few occasions I hit the deck I don’t recall much about it – Happily doing my own thing one moment – Flat on my back the next wondering… Read more »
Ned S
Guest
Always fancied a little BSA Bantam Shoes. Only ever even got sort of close to buying one of them – It had been left outside with no spark plug in the head – For quite a long time. (Some people just ain’t got no respect!) One of them and a 500cc twin AJS parked in me loungeroom to keep the polished boards well oiled and my joy would be complete maybe? I dare say DRA might tell me they aren’t productive investments? But what the heck! Hey I don’t spend much on productive investments like hair cuts and razor blades… Read more »
Steve
Guest

Why not slash rates by 2% just like the investors club want

Why not?

Let have inflation at 10%

Why not?

Lets end up like Zimbabwe,
lets all be rich

why not?

lets do that and watch my 140K go down to 100K in real terms

why not?

and watch house prices go from 700K to 900K

why not?

just to make the investor club happy

They looked scary protesting on the news “demanding” the RBA slash rates
we had better do as they request, after all they work had for their investments

Ned S
Guest

Yeh, or as Buffett apparently said “If you’ve been playing poker for half an hour and you still don’t know who the patsy is, you’re the patsy.” :)

“Keep a dancin’ Maria” – Paul Hogan.

Ned S
Guest

I try pretty hard to not think too hard about what the world might be like if it was fair – ’cause that would mean doing away with national borders and passports – And by and large, I’ve seen nothing to indicate that Aussies would enjoy that.

Ned S
Guest

By and large, I see my fellow inhabitants of the planet as greedy money grasping pieces of shite – With Aussies having the special good fortune to be amongst the more ‘spoiled’ of same. Whilst simultaneously seeing nothing especially wrong or unusual in this. Given that neither Jesus’ nor Marx’s proposed alternatives seemed to suit our natures very well? :)

Ned S
Guest

By and large, I see my fellow inhabitants of the planet as greedy money grasping pieces of doggy do – With Aussies having the special good fortune to be amongst the more ‘spoiled’ of same. Whilst simultaneously seeing nothing especially wrong or unusual in this. Given that neither Jesus’ nor Marx’s proposed alternatives seemed to suit our natures very well?

Stillgotshoeson
Guest
http://www.dailyreckoning.com.au/cba-and-their-bad-debt-problem/2010/02/10/ Comment by Biker on 9 July 2010: Pretty sure it was actually Shoes who alerted me to Prechter’s warnings, Ned. Coincidentally, he also recently predicted that the banks would forget about the RBA’s recommendations… and just raise rates willy-nilly… . If I delve deeper into the older threads I am sure I can find an earlier post saying a similiar think about banks raising rates outside of RBA moves… Fairly sure I raised in in my arguments in our “debates” on property last year when I first started posting to the forum… Comment by Stillgotshoeson on 10 February 2010:… Read more »
Stillgotshoeson
Guest

Interesting reading in todays NY Times….

http://www.nytimes.com/2010/07/09/business/economy/09rich.html?_r=1&ref=business

Biggest Defaulters on Mortgages Are the Rich

http://www.nytimes.com/2010/07/10/business/global/10won.html?ref=business

In Asia, an Era of More Expensive Borrowing

Biker Pete
Guest
S: Why not slash rates by 2% just like the investors club want BP: Most members I’ve seen, on the news, appear to be retired. Possibly an equal number of retired folk live on interest from their savings. Dropping rates for one group of investors hurts the other… and raising them vice versa. S: Let have inflation at 10% BP: Don’t follow your logic. S: Lets end up like Zimbabwe, lets all be rich BP: You think they’re rich in Zimbabwe, Steven? Do you think the ZIC caused inflation in Zimbabwe? S: lets do that and watch my 140K go… Read more »
Biker Pete
Guest

Ned, on bikes: “I dare say DRA might tell me they aren’t productive investments?”

I’ve actually made money on one bike and one boat over the years, Ned.
The profit from the boat went into realty… and I’ve never been able to retrieve it!~ The missus isn’t really a great sailor…

Figure I’ll make money on the next of my vintage bikes I sell. One recently sold for five times what I paid, in the US.

On ‘fairness’. All one can really do is practise it oneself. Think global, act local.

Don
Guest

Great to hear that you are enjoying Cairns Biker! The lagoon pool is pretty cool – they have recently finished repairs on it last week and reopned it so good timing mate!! Hope the weather clears us soon – it has been overcast for a month almost now :(

Pleased to hear that you don’t think Cairns is a lost cause mate, still we are moving to Townsville in the next few months as we are recommissioning a mine at Charters later this year.

Biker Pete
Guest
G’day, Don. What is particularly impressive about the lagoon pool is the perpective from the road and park. To the uninformed eye, it appears that it all connects with the ocean (at high tide, anyway… .) Also great to see so many people using it, from 6:00 am….!! Yesterday there were several hundred swimmers, loungers and sunbathers in the immediate vicinity, enjoying the sunshine. Yes, it’s very overcast today. We canned a day out on the GBR, in fact… . Still, Perth is experiencing a week of storms, with winds up to 100 kph. Our jet’s engines screamed for the… Read more »
Lachlan
Guest
Ned I reckon my cows n chooks must think Im a greedy parasite. But they certainly love me at feeding time, even when not. But im a happy parasite I guess since my system is sustainable. To be honest I dont have my own cattle at present but helping manange 100 or so on the farm I live on. With the private sector in tatters USA mega government spent 2.6T for 1.6T return in tax revenue (first 9 months 2010 fiscal year). They cant save the planet. Wait there. I think we can break the deadlock. All we need to… Read more »
Don
Guest

Have you been to the salthouse yet? Not a bad bar or restaurant :)

http://www.salthouse.com.au/

Don’t count on this overcast weather clearning up mate – it has been like this for weeeeekkkkssss.

Enjoy Port Douglas! Good food at the Salsa, try their thai chicken spring rolls with banana mayonaise :)

http://www.salsaportdouglas.com.au/

Don
Guest

Comment awaiting moderation? Hmmm try this then:

Have you been to the salthouse next to the pier yet? Not a bad bar or restaurant

Don’t count on this overcast weather clearning up mate – it has been like this for weeeeekkkkssss.

Enjoy Port Douglas! Good food at the Salsa, try their thai chicken spring rolls with banana mayonaise

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