- BUSH & HU JINTAO IN AUSTRALIA -
At Barvennon we have been shearing, which has
curtailed other activities (like writing this diary). The price of
wool seems to have dropped drastically. Probably the strengthening
AU$ is the cause. (It has now risen about 40% above it's lowest
point US$0.50c a couple of years ago). Our dollar is
strengthening because the US has engineered the $US to fall. With
it falls the tied Chinese currency (Yuan) and China is one of our
largest wool buyers. The tying by the Chinese of their currency
to the $US is a brave move. This is because they must maintain
parity by purchasing US deposit bonds (e.g. Fanny Maes etc) to stop
their own currency from bloating. This artificial strengthening
of the US$ gives a free ride to those US corporations who want to
invest in foreign instruments, (which permit enormous profits to be
realized as the dollar falls due to those burgeoning investments.)
Liberal journalist economists believe that the US$ fall is due
to trade imbalance caused by overspending by the US government.
(My own guess that they are victims of a disinformation initiative by
the CIA. I think that the real cause of the fall is purchases by
the US public of cheap Chinese goods, and coupled with massive
purchases by US firms of foreign investments).
Bush & Hu plan to address the Australian
Parliament in Canberra next Thursday and Friday. This is an
extremely interesting development. Your diarist will be watching
closely for indications. Hu seems to be a very intelligent
leader. Unfortunately for the Chinese, he is not intelligent
enough to understand that he should destroy the political system that
exists in China & retire as quickly as possible. A directed
economy will never surpass a libertarian economy. Science,
technology, politics and manufacturing work best in a competitive
environment. (look at Israel, Switzerland, maybe California?).
The bottleneck to obtaining a functional liberal democracy is the
attitude of the masses. If they have always been supervised, they
have not learned responsiblity in government. The Swiss have been
at it for generations.
Australia's interest rates are predicted (by
journalist economists) to rise in the next quarter. Their
reasoning is that the property market is still hot, and that the
(secondary) economy seems to be overheating. An interest rate
rise would be bad for export (mostly primary) industries. Our
export industries are what makes us a wealthy, successful
economy. If we wish to keep the price of land low, then we should
increase the cost of holding land. The simplest way to do this is
by raising rates. When rates become high, then the capital cost
of land will diminish. See Henry
Gun violence is trending upwards in Sydney.
This trend was predicted by your diarist when gun control
laws were enacted. Our politicians and journalists prefer to
give a racist reason for the increased violence. Their
explanation is that Muslims (or arabs?) like to settle arguments
outside of established legal systems.
In the weekend Australian there was a report of at
least one local Muslim cleric who condemned Jihad on Australian
soil. Unfortunately, the attitude of our politicians and
journalists (see above) is undermining his support, strengthening
instead local Muslim support for clerics who preach Jihad in Australia,
- INDONESIA -
Back when Gus Dur was overthrown, your diarist
foresaw trouble, admittedly not how it would develop. Now Megawati
is having problems with Muslim terrorists, and does not have the moral
authority that would have been held by cleric Gus Dur to act strongly
against those terrorists. In the nation that has given the
English language the phrase "run amok", the position of the Indonesian
army following it's interference in the succession is invidious.
- IRAQ -Despite the biased reporting of the mostly liberal (read conservative left wing, aka politically correct, aka left wing loonie) press in Australia, hints are beginning to filter through that a large majority of Iraquis welcome the US invasion. Meanwhile the democrats (liberals) in the US Congress are attempting to have the grants for rebuilding Iraq declared to be "loans". That is quite short sighted of them, but then again, politicians in democracies are notorious for their lack of sensitivity, maturity, intelligence, rationality, & etc.