COVID 19 and unconditional income supplement to all Australians

Discussion in 'Australia, NZ, Pacific' started by DennisTate, Mar 17, 2020.

  1. DennisTate

    DennisTate Well-Known Member Past Donor

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    Canadian veterans came back from WWII talking about Australian and Ghurkur soldiers and how amazing it was to work with them when going up against some seemingly impregnable heavily fortified German stronghold...... well....... I am Canadian and I have a challenge for all Australians to implement this proposal even before we Canadians will manage to get it done..... .but some of us are making a sincere effort.

    Here is a copy of most of the message that I posted to the Facebook wall of my local Member of Parliament over the weekend:

    .....I am of the belief that this virus could set in motion a Bear Market, another 1929, and in my forty or so years of researching some theories on economics I am of the belief that one of the best responses to the possible economic fall out may be:

    "Five hundred dollars per Canadian per month, can this work?
    I am advocating the usage of the Bank of Canada that is owned by all Canadians to finance giving five hundred dollars per month to all thirty seven million Canadians.
    It will of course mean much more to poorer Canadians than to millionaires........
    but it could be surprising how many stay at home wives with cheap and stingy millionaire husbands who control the purse strings of the home may find this extra five hundred very helpful indeed.
    I suspect that well over eighty percent of of Canadians will spend this money reasonably well and:
    1. enrol their kids in more after school programs.....
    2. begin to purchase a higher percentage of organic produce vs the cheap GMO stuff
    3. purchase a newer car, SUV or half ton truck
    4. do renovations to their homes
    5. hire landscapers to do certain projects on their properties
    6. pay down their debt loads, especially the higher interest ones
    7. buy a new home rather than renting
    8. buy a cottage outside the city so that they can get away for weekends
    9. many will choose to move to rural Canada in order to escape relatively hectic city life
    10. eat at nice restaurants more often
    11. I also believe that a significant percentage of Canadian women who would have chosen to have an abortion under the present economic situation will CHOOSE to keep their babies as opposed to having an abortion!
    I suspect that less than ten percent of Canadians will attempt to live off this five hundred dollars / month and simply use it to drink or smoke more.
    To whatever degree this happens the worst cases where these Canadians put themselves and others in danger this can be dealt with by issuing food stamps vs a monthly check."

    I posted this to the wall of my local Member of Parliament to give him and his boss P. M. Justin Trudeau something to think about.
    Here is my understanding of what happens if my nation Canada begins to use the Bank of Canada again as
    we used it from 1938 to 1974 to create an extra eighteen billion dollars per month to pay out an unconditional income
    supplement of this nature.

    This extra eighteen billion dollars would be taxed back into the treasury after it would turn over roughly three times so
    it would soon balance the deficit and begin to pay down the national debt of Canada by about eighteen billion dollars
    Canadian per month.

    The key though is that it has to be created in the same manner as we used from 1938 to 1974 when then Prime Minister
    Pierre E. Trudeau made what could be argued was one of the biggest errors by a sitting Canadian P. M. in this last century.

    https://www.facebook.com/SeanFraserMP/posts/2637804269833837
     
    Last edited: Mar 17, 2020
  2. DennisTate

    DennisTate Well-Known Member Past Donor

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    So although the situation in Australia is somewhat different than here in Canada here is some information for comparison that is relevant. Five hundred dollars Canadian per month is basically a welfare payment for a single man with no children who already has their own home. I am sure that significantly less than ten percent of Canadians would want to attempt to live off this unconditional but taxable income supplement and basically use it to feed their smoking, drinking or drug habits.

    It will cost over eighteen billion dollars per month to give five hundred dollars per month to all thirty seven point six million Canadians who will not have to take it if they don't want it much as Canadians have to apply for Senior Citizens pensions and Canada Pension Plan. My understanding is that this eighteen billion dollars would be taxed back into the Canadian treasury after it would turn over roughly three times.

    I believe that roughly half of Canadians would use an income supplement of this nature to pay down their high interest debts such as credit card debt. By reducing the cost of interest on Canadians the net effect of this income supplement in theory.... .could lead to a DECREASE in the over all cost of living but..... .I predict that the real estate and construction industry would soon heat up as many Canadians would build a second or third home.

    My understanding is that nearly all eighteen billion dollars per month....... less whatever is put into Registered Retired Savings Plans would end up at first decreasing the deficit..... and would soon be put each month toward the national debt of Canada that to my thinking looks like it was deliberately made to look bad according to the theory of three economists.

    One of the simplest explanations for all this is done by a former Canadian political leader.



    For the record... I personally think that Mr. Hellyer's usage of many strong terms is unnecessary and he decreases the probability of his theory being adopted by using such strong language but.... he does make excellent points regarding all of this.
     
    Last edited: Mar 17, 2020
  3. Woolley

    Woolley Well-Known Member

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    Saw this on FB under the MMT group....maybe MMT will finally break through the artificial barriers put up by classical economists now.
     
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  4. DennisTate

    DennisTate Well-Known Member Past Donor

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    Please send me a friend request through Facebook so that you can comment on my wall but frankly my wall is public so you could start commenting there even if we are not officially Facebook friends. I do feel that time is of the essence and some well informed comments could convince a number of sincere and gifted Canadian political leaders to come out of the closet and endorse this........ It is not inconceivable to imagine P. M. Justin Trudeau to do one of his famous (or infamous in the minds of many)... apologies....... for his dad making a serious error back in 1974..........

    ... and P. M. Justin Trudeau could in one day pretty much make up for what I and many fellow Canadians consider to have been a truly terrible error forty six years ago by his dad.

    I am working on bringing the impressive Mr. Peter MacKay and many of his supporters over to looking at this option very, very seriously.

    Australians and Canadians went into WWI and WWII even before American political leaders were able to convince American citizens that those wars were their wars as well so it seems rather appropriate if we Australians and Canadians get involved in the economic part of WWIII first...... which is explained powerfully around the fifteen minute of this video when CIA economist Mr. Jim Rickards back in 2014 gives the number of seven hundred and ten trillion for the worldwide Derivatives markets...... and expresses his concern over the possibility of a ONE HUNDRED TRILLION DOLLAR MELTDOWN in the world's Derivatives markets that could spread to other markets like a virus.


    FORGET IRAN, IRAQ, UKRAINE
    THIS IS WHERE WWIII STARTS...
     
    Last edited: Mar 17, 2020
  5. DennisTate

    DennisTate Well-Known Member Past Donor

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    You Australians are uniquely set up by your geography to play the role of the rescuer of the metaphorical "damsel in distress" for the owners of all vulnerable real estate along Canada's Bay of Fundy.

    I began to ramble on regarding all this back in 2010:



    The Greening of the Sahara

    More recently I came up with a question that I believe has the potential to shift the environmentalism movement away from a Carbon Tax toward more of an emphasis on deliberately turning deserts green through mega-scale desalination of ocean water for agriculture, for towns and cities experiencing water shortages and for reforestation projects that in my opinion are win - win - win - win - win sort of ventures for essentially all eight billion of us?

    ..... "Residents of Nova Scotia and New Brunswick are facing a rather simple mathematical problem that forces us to take a rather dim view of a Carbon Tax.

    .... "If average ocean levels rose by eight to ten cms (3 or 4 inches) could high tide...
    ... rise by one meter in the Isthmus of Chignecto in Nova Scotia, Canada?
    This question is logical because the geography of Canada's Bay of Fundy produces the world's highest tides. In my part of Nova Scotia in Guysborough County there is very little funnelling of tidal waters......... so high tide is only about one to one point five meters above low tide.
    In the eastern area of the Bay of Fundy high tide levels are up by ten to fifteen meters."

    Every cubic meter of ocean water that is desalinated and added to the water table of Israel, California, Algeria, Qatar, Jordan, Saudi Arabia, Australia, Nevada, South Africa, India or any other nation with lots of desert is really good news for the owners of the real estate along the Bay of Fundy and of Anchorage Alaska that have the second most extreme tides in the world for very similar reasons.

    High tide waters are funnelled by the Bay of Fundy into a more and more narrow area and on top of that......... the Bay of Fundy is over one hundred and seventy miles long so high tide water cannot fully drain back into the ocean before the next high tide waters pile on top of them.

    It is my habit to attempt to take problems.... and proposed possible solutions.... and connect them together and I would recommend that some of you do some research on a very interesting Canadian who has campaigned for public office already who I believe is all set up to play a massive role in a major shift in the world economy away from political correctness and ineffectiveness...... toward practicality and the application of the western Canadian saying......."Get 'er Done!"

    (hint... post number six)....

    Global Warming and Environment: Rejecting Alarmism and Focusing on Concrete Improvements




     
    Last edited: Mar 17, 2020
  6. Woolley

    Woolley Well-Known Member

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    If I do friend you on FB, I expect you to honor my privacy here and elsewhere.
     
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  7. Woolley

    Woolley Well-Known Member

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    One idea I have for America is to immediately forgive all student loan debt. Provide tax credits for the loan amounts for anyone who has paid a student loan from 2010 to the present. In return for the payoff by the FED or Treasury, the notes signed by students and families could become the assets they could keep on the balance sheet indefinitely. This would allow for double entry accounting to be followed with the asset becoming the person and their future potential. In a way, this is exactly what TARP did for the banks by having the FED assume all those bad loans. Same thing in my book.
     
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  8. DennisTate

    DennisTate Well-Known Member Past Donor

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    Certainly... but I will send you a personal message because it is a fact that I have over three thousand friends already on Facebook and because I have campaigned for public office I probably have attracted more attention than many of my friends may feel comfortable with.



    Wow!!!!!!!!!

    This is an absolutely fascinating idea that I already have a possible way to fit this in!
     
    Last edited: Mar 17, 2020
  9. Woolley

    Woolley Well-Known Member

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    I think it could work if one treats that loan doc in the same manner as a bond. Why not? Both are promises to pay at a future date. Students could either repay them over a lifetime or the FED could just depreciate them over a 50year period. Its about using fiat money to fix a problem only fiat money can solve.
     
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  10. DennisTate

    DennisTate Well-Known Member Past Donor

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    That idea has enormous potential.

    This idea can make all of this more understandable"

     
    Last edited: Mar 18, 2020
  11. DennisTate

    DennisTate Well-Known Member Past Donor

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    This blog has some exceptionally useful information on all of this:

    http://understandingcanada.ca/2019/11/much-ado-about-1974-the-bank-of-canada-in-the-70s/
    Much Ado about 1974: The Bank of Canada in the 70s

     

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