Widespread money laundering in property locking out Australians from owning homes, Senate told

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Aristotle Pickett

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Oct 19, 2020
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Senate told
Australia now ‘destination of choice’ for flow of illicit funds, anti-corruption expert says.
Weak and outdated laws are allowing widespread money laundering in the property sector, making Australia a “destination of choice” for illicit funds and “locking many Australians out of owning their own homes”, a Senate inquiry has been told.

The Senate is probing the strength of Australia’s money-laundering and counter-terrorism financing laws, and heard on Tuesday from anti-corruption group Transparency International Australia and its director, former Austrac general counsel Russell Wilson.



 

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E Shed

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We are now so dependant on property price being through the roof for the economy no Government will do anything to change anything that might possibly bring them down. We are a 2 tiered society.
 

kranky al

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We are now so dependant on property price being through the roof for the economy no Government will do anything to change anything that might possibly bring them down. We are a 2 tiered society.
Hopefully young people flee to the regions and burst the bubble
 

HairyO

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We are now so dependant on property price being through the roof for the economy no Government will do anything to change anything that might possibly bring them down. We are a 2 tiered society.

How many politicians dont own investment properties?

They arent meant to vote when they have a vested interest but there wouldnt be a quorum if they recused themselves from such matters.

And the RBA continues to fuel the fire by saying it could be years before rates increase - despite the rest of the world starting to look at increasing rates.
 

Ned_Flanders

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How many politicians dont own investment properties?

They arent meant to vote when they have a vested interest but there wouldnt be a quorum if they recused themselves from such matters.

And the RBA continues to fuel the fire by saying it could be years before rates increase - despite the rest of the world starting to look at increasing rates.

fwiw in my ignorant opinion, the only reason i can think of for them to not be worried about inflation (and the need for a rise this year) is if they think the economy is gunna tank in 2022 (be it property or the mining bubble or the trade war escalating)

otherwise rate rises are inevitable in 2022 IMO
 

HPKS

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Hopefully young people flee to the regions and burst the bubble
A few already have. As it catches on it’ll happen imo. Young people have been locked out of so much of the property market what choice do they have. And no offence to the couple on 7:30 last night but they are not and never will be the average young couple in Australia. Imo it’s bloody obvious why prices won’t come down. How long do you think governments would last if boomers investment properties started tanking? They are never coming down until boomers become the minority.
 

HairyO

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fwiw in my ignorant opinion, the only reason i can think of for them to not be worried about inflation (and the need for a rise this year) is if they think the economy is gunna tank in 2022 (be it property or the mining bubble or the trade war escalating)

otherwise rate rises are inevitable in 2022 IMO

Or they have decided that devaluing the dollar will lead to increased exports and are less concerned with increased costs of imports.

Or it could just be they are hoping to shift markets through speeches without having to make actual changes. One way to earn the $1m a year he gets paid.
 

Ned_Flanders

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Or they have decided that devaluing the dollar will lead to increased exports and are less concerned with increased costs of imports.

Or it could just be they are hoping to shift markets through speeches without having to make actual changes. One way to earn the $1m a year he gets paid.

*sigh*

they cant devalue the dollar without inflation going up. this was cool when we are staring at deflation, but with inflation rising it will rinse and repeat the mistakes made in the usa

and inflation matters because the RBA has to target inflation within a certain band, and rates will go up if they rise above that
 

HairyO

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*sigh*

they cant devalue the dollar without inflation going up. this was cool when we are staring at deflation, but with inflation rising it will rinse and repeat the mistakes made in the usa

and inflation matters because the RBA has to target inflation within a certain band, and rates will go up if they rise above that

Inflation is already rising and they dont seem to care. In theory controlling inflation is the primary purpose of the RBA but its clear they are more worried about other things.
 

Ned_Flanders

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Inflation is already rising and they dont seem to care. In theory controlling inflation is the primary purpose of the RBA but its clear they are more worried about other things.

that will change when it busts past 4% (which we are on the verge of)
 

Power Raid

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We are now so dependant on property price being through the roof for the economy no Government will do anything to change anything that might possibly bring them down. We are a 2 tiered society.

Could you imagine:
- property prices remaining flat, resulting in low building approvals and all those tradies and suppliers out of work
- the pressure on land developers sales are slow
- the pressure and banks as tradies and businesses struggle to meet repayments and trying to sell repossessed properties into a depressed market

For me there is no way out of this without major pain except for:
- the introduction of islamic banking which enables a "bite sized" entry into property markets (you buy 50% of a home and the bank owns 50%)
- nation building where opportunities are created or encouraged to set up in a new capital.......preferably creating a second major city in the west (albany or bunbury/busselton merger).
- AND the obvious one where property taxes are put on ALL properties and appropriately applied based on WEALTH. Wealth taxes are a must in a proper functioning society to balance out income tax and consumption tax.

A wealth tax on property phased in over 50 years, will see investment shift to more productive assets and remove 100% of the "non-self generating profit" (ie actual land improvements) from the owner back to society.
 

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TheBrownDog
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that will change when it busts past 4% (which we are on the verge of)

when shipping, security of supply, stimulus and energy prices ease we will see lower inflation

that said, escalating tensions in a trade war or a real war could get interesting


I'll punt on lower inflation numbers within 12 months
 

Ned_Flanders

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when shipping, security of supply, stimulus and energy prices ease we will see lower inflation

that said, escalating tensions in a trade war or a real war could get interesting


I'll punt on lower inflation numbers within 12 months

the issue is the USA. they are doing jack sh*t to curb it there, and that will have downstream consequences

semi conductors and the supply chain stuff, agree its all short term. us ineptitude however is forever :p
 

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TheBrownDog
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the issue is the USA. they are doing jack sh*t to curb it there, and that will have downstream consequences

semi conductors and the supply chain stuff, agree its all short term. us ineptitude however is forever :p

many countries are looking to decouple their economies in preparation of war

this will create inflation in the short term but having greater competition in the global economy, which was artificially created by policies to monopolise, will lead to greater innovation and lower prices

Australia's Critical Technology Policy is just one example of this
 

Ned_Flanders

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many countries are looking to decouple their economies in preparation of war

this will create inflation in the short term but having greater competition in the global economy, which was artificially created by policies to monopolise, will lead to greater innovation and lower prices

Australia's Critical Technology Policy is just one example of this

its not cost push inflation thats the problem, its the demand pull caused by cheap money thanks to super low interest rates
 

Ned_Flanders

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sounds like the recipe for the GFC

similar

this isnt a dem/gop issue either, they kept rates far too low after the GFC rebuild was underway, and then had to flatline them with covid

its nuts, because people now think 3% is a high interest rate
 

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TheBrownDog
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similar

this isnt a dem/gop issue either, they kept rates far too low after the GFC rebuild was underway, and then had to flatline them with covid

its nuts, because people now think 3% is a high interest rate

I’m also uncertain as to how we can ever stop printing money

No wonder people want to buy physical assets like property rather than hold cash
 

Ned_Flanders

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I’m also uncertain as to how we can ever stop printing money

No wonder people want to buy physical assets like property rather than hold cash

Qe was stopped, and can be done again pretty easily.

It's blind so it's less open to political resistance and interest rates.
 

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TheBrownDog
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Qe was stopped, and can be done again pretty easily.

It's blind so it's less open to political resistance and interest rates.

I appreciate it needs to be done sometimes but we do it too often and too much

the result is the rich get richer and the poor get poorer
 

Ned_Flanders

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I appreciate it needs to be done sometimes but we do it too often and too much

View attachment 1285825

the result is the rich get richer and the poor get poorer

read your own bloody chart

it went up during the onset of covid, and has plateaued for a year

you made it sound like money supply was continuing to grow, its not. now is the time to start cranking it down, in conjunction with rates going up
 

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TheBrownDog
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read your own bloody chart

it went up during the onset of covid, and has plateaued for a year

you made it sound like money supply was continuing to grow, its not. now is the time to start cranking it down, in conjunction with rates going up

I deleted the graph as I posted M2 rather than currency on issue

Nov 21 we have $101.3B on issue and have been increasing this by an average of $300m per week for the last 20 weeks

 

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