Politics Should Australia set up a sovereign wealth fund?

Should Australia set up a sovereign wealth fund?

  • Yes

    Votes: 2 100.0%
  • No

    Votes: 0 0.0%
  • Let the bloody Pom's pay for her

    Votes: 0 0.0%

  • Total voters
    2

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Upton Sinclair

Norm Smith Medallist
Suspended
Jul 31, 2011
5,441
2,013
AFL Club
Collingwood
Is it a good idea for Australia to save for the future? Or should we just dig up our resources AQAP and let the market sort it out? Outline why you think so below.
 

blackcat

Bruce Doull's brother WarrenEllis no hipster beard
Dec 29, 2003
28,017
13,886
Beverly Hills 90210 Antifa bracket
AFL Club
Richmond
tell me htf r they gonna fund it, the miners will just regime change on whichever gov't comes in. Chance of the IPA'ers and HRNicks from the tories run this thru. 0%.

Chance the ALP have the ability to get it thru? 0%

if you want the fund, move to norway.
 

Scotland

TheBrownDog
May 5, 2006
61,952
68,560
AFL Club
West Coast
Where will it come from?

What will it be used for?

How will it be administered?
 

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Clay Davis

Brownlow Medallist
Sep 16, 2006
19,991
1,855
ge
AFL Club
Fremantle
I find it a bit circular, really. What would a sovereign wealth fund invest in? Over the past ten years your best bet would have been the big miners. So, you take from the big miners to ... invest in the big miners!
 

Underdog

Brownlow Medallist
Jul 30, 2005
23,961
10,833
Perth
AFL Club
West Coast
Other Teams
Swan Districts
well, lets just nationalise the miners. I dont think you will find much sympathy for Gina Reinhart or Twiggy Forrest

I think you will actually...

The notion of forcibly acquiring assets from someone who has invested heavily and taken a substantial risk in order to create a successful business that creates wealth to employees, associated industries and the country via exports is absolutely absurd.
 

Tex_21

Norm Smith Medallist
Apr 4, 2008
6,656
1,109
Die Kaffeeklatsch
AFL Club
Geelong
Other Teams
Landsborough
Have posted about this before, but I'm in favour of a SWF that is funded by a rent tax tied to commodity prices (or the terms of trade). This method leaves the motive to improve efficiency and increase profits, in which case the standard rate of tax will apply, but also takes a share of the benefits that accrue as a result of fast-rising commodity prices (for obvious reasons this level would be indexed, probably to the CPI or similar index).

I saw Max Corden talk recently on possible policy responses for the dutch disease in Australia, and one of the options he presented (paper is available on the Crawford School website at anu.edu.au somewhere) was a SWF that invested purely abroad, to mitigate the effects of huge inflows of capital to Australia and its appreciation on the $A.
 

rayven

Norm Smith Medallist
Jun 26, 2005
9,955
1,749
AFL Club
Adelaide
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I heard keating speak on lateline last summer...he wanted that huge superfund (2nd biggest saving pool in the world apparantly) to fund afforable morgages for Australians...

Evidently the IMF(american reserve bank basicaly) didn't like this as a nation would gather huge wealth and not need tow a global political line and not individuals who could be "influenced'..

I rekon Chifley had similar philosphies towards "bankers"...
 

Dry Rot

My hat is better than yours
Feb 21, 2002
39,039
12,369
Hawaii
AFL Club
Western Bulldogs
I heard keating speak on lateline last summer...he wanted that huge superfund (2nd biggest saving pool in the world apparantly) to fund afforable morgages for Australians...

Eh? Is Keating losing it?
 

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medusala

Cancelled
Aug 14, 2004
37,209
8,420
Loftus Road
AFL Club
Hawthorn
I heard keating speak on lateline last summer...he wanted that huge superfund (2nd biggest saving pool in the world apparantly) to fund afforable morgages for Australians...

Another Fannie Mae. What a brilliant idea.

As for the Norwegian SWF I am sure its massive EURO exposure will all work out wonderfully well.
 

Slax

Brownlow Medallist
Jan 13, 2001
15,888
6,908
Waiting at the door for the pub to reopen
AFL Club
Brisbane Lions
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Another example of why Barnett will be in power for the next decade.

If Australia had set up superannuation properly the government could of been a supoer fund and thus would've had the capacity to fund the sovereign wealth fund in a similar way to what Singapore does.

This would of meant that superannuation would not of been eaten away by useless charges and fees, leaving the population better off.

Of course this is based on a premise that the government would actually invest wisely which judging on recent decision has to be questioned.
 

Radical Roo

Club Legend
Sep 8, 2009
2,152
18
Thornbury
AFL Club
North Melbourne
This is the first sensible thing i have heard, we need to save save save, we need cash cash cash in the bank. We need to make a surplus surplus surplus for our future future future. We need to be ruthless about this, the future of the nation takes precedence over any current day squabbles like refugees, gay rights, gender equality. We need to take action now. We need to mobilize and mobilize now.
 

The_Reaper

Hall of Famer
Jan 26, 2006
40,411
31,653
Perth
AFL Club
West Coast
Other Teams
East Fremantle
This is the first sensible thing i have heard, we need to save save save, we need cash cash cash in the bank. We need to make a surplus surplus surplus for our future future future. We need to be ruthless about this, the future of the nation takes precedence over any current day squabbles like refugees, gay rights, gender equality. We need to take action now. We need to mobilize and mobilize now.

Barnett is an arrogant man but he does know what he is doing.
 

Slax

Brownlow Medallist
Jan 13, 2001
15,888
6,908
Waiting at the door for the pub to reopen
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This is the first sensible thing i have heard, we need to save save save, we need cash cash cash in the bank. We need to make a surplus surplus surplus for our future future future. We need to be ruthless about this, the future of the nation takes precedence over any current day squabbles like refugees, gay rights, gender equality. We need to take action now. We need to mobilize and mobilize now.
Agree RR, but the only thing is that the media see now benefit in discussing it as it doesn't rate.

All the media want to talk about is sensationalism and the same things that the shock jocks go on about on talkback radio. None of this has any real impact on our daily lives yet our media is full of lies, innuendo and useless information. If you removed all the crap for the nightly news the 30 minute editions wouldn't last until the first ad break.
 

Radical Roo

Club Legend
Sep 8, 2009
2,152
18
Thornbury
AFL Club
North Melbourne
Agree RR, but the only thing is that the media see now benefit in discussing it as it doesn't rate.

All the media want to talk about is sensationalism and the same things that the shock jocks go on about on talkback radio. None of this has any real impact on our daily lives yet our media is full of lies, innuendo and useless information. If you removed all the crap for the nightly news the 30 minute editions wouldn't last until the first ad break.

Sad isn't it, we really need to have a fair dinkum shake of the sauce bottle don't we.
 

tandino

Brownlow Medallist
Mar 16, 2007
12,799
10,182
Showers Stand
AFL Club
Essendon
Another example of why Barnett will be in power for the next decade.

If Australia had set up superannuation properly the government could of been a supoer fund and thus would've had the capacity to fund the sovereign wealth fund in a similar way to what Singapore does.

This would of meant that superannuation would not of been eaten away by useless charges and fees, leaving the population better off.

Of course this is based on a premise that the government would actually invest wisely which judging on recent decision has to be questioned.

I'd take my chances in the stockmarket.
 

nut

Brownlow Medallist
Mar 16, 2002
19,285
10,613
AFL Club
Richmond
Other Teams
Richmond
Another Fannie Mae. What a brilliant idea.

As for the Norwegian SWF I am sure its massive EURO exposure will all work out wonderfully well.


As of the 31th od dec 2011 it was valued at 573 Billion US. It's projected to be double by 2019.

60% is invested on the Stockmarket. It holds 1% of the worlds Equity Markets. 1.73% of the Euro Markets. 50% exposure to Europ, 15% asia, 35% Americas and Africa ..... Id say it doing pretty well.

Each man women and child has 1,000,000 US sitting in the fund for the furture of ALL Norwegians.... Sounds terrible.:rolleyes:

What do we get from our natural resources??? Mr Forest, Gina, and a constent flow of cash to overseas investors.And blinded greedy twits who sit all day on the computer hoping to get some crumbs at the expense of Australia long term future.

What year are we in the mining boom now??? 15 years????20 years????...30 years??? What have we got to show for it???? Over priced Housing sector.... people living beyond their means.... and a country the is 100% reliant on the income generated from China.... We live and breathe because of China. If China slows we slow and the snow ball effect will be enormous... the housing prices will fall, the unemployment rate will sky rocket.

Norway is now able to invest in other industries and spread the risk from the eventual loss of Oil revenue. Apparently this is stupid???? Are you people serious.
Do we hope that the ethical minds of Gina and Mr forest will help us through the bad times??? yer right.

I support the minning tax..... but I would rather the revenue put in a SWF.