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Diary of a B+ Grade Polymath ([personal profile] tcpip) wrote2004-10-10 11:56 pm

John Howard is Brilliant, and the Labor Party has no courage. The New Zealand option.

There have been only two elections in the past ten years that I have guessed wrong. The 1999 Victorian state election and this Federal election. And in this election I must admit, that Howard's cunning and sheer capacity to strip himself of any veneer of moral integrity in the mindless pursuit of power surprised me.

Interest rates. What a plan of evil genius that was.



See, this is how it worked: Over the past eight and a half years, with massive government cutbacks in services and such enormous increases in household taxation that we now have the highest taxing government ever, our previous public debt has been shifted to a much larger private debt. Not for the big-end of town of course, but rather the private debt of ordinary Australians, who now have the biggest household debt (mortgage, credit card etc) in history. It was an act of little economic dexterity and of course, allowed the opportunity for John Howard's masters to skim a little more cash.

Consider it a market relationship. Certain members of society have a pathological desire more money. Other members of society have a pathological desire for more power. A mutually succesful contractual obligation is derived and lo! we have the ruling class, or at least nearly all of them. Ahh, yes... Class. Not allowed to mentioned that word anymore are we? No, we're all one big happy family in this country all pulling together for one another. But I digress...

Howard put ordinary Australian households in a situation of the worse debt they've ever been in. And then what? He threatens them! "Oh, look out! It's the high interest rate bogeyman!". Indeed, that struck a chord. After all, if interest rates do go up for many households already at the edge of their debt limit it's curtains. And not just metaphorically. Situations like this do lead to those awful suicide-murders with alarming regularity.

And, like the "Never ever GST", the "children overboard" events, or the "weapons of mass destruction" and that enormous list of prior deceptions, it was A BIG LIE. I swear, Howard is so brilliant at this. With his lust for power (rather sad and pathetic at his age, I think), he not only hinges the election campaign on the issue of trust, with no sense of irony, he actually distracts everyone from the possibility that once again he's going to deceive the public again!

Interest rates. Determined by the Reserve Bank of Australia, independent of the edicts of the Government. Primarily influenced by interest rates in economies of size and influence far greater than ours. Howard knows this, after all, he was Treasurer of the country when interest rates were over 20% and he certainly doesn't blame himself for that! The best any government can do is to position our little economy so that any dramatic international changes don't affect us as badly. If you're in doubt of this, do some international comparisons of interest rates of OECD countries over time. When the big economies move, we move with them. And as an export-orientated country, there's not very much we can do about it.

I don't blame the electorate for not knowing this. The overwhelming majority haven't done high school economics, let alone university economics and are completely oblivious to the behaviour of international money markets and the institutional machinations of how interest rates actually work (in a sentence: when the economy is healthy there is usually a demand for more investment which puts pressure on the money supply causing an interest rates increase). Heck, they're battling to work out the family budget each fortnight. And, I must confess, I underestimated it as in election issue as well. After all, I live like a Scottish Calvinist and actually have net savings. Things like massive improvements to public schools, a substantial tax cut for nearly all those earning less than $50,000, protection of old-growth forests, ending dangerous military adventures etc seemed more substantial.

No, I blame the pathetic campaign of the Labor Party which, with all their positives, forgot something that Beazley never did - that there are people out there who are really funding it hard and the prospect of 17.5% interest rates was just a nightmare. So what did Labor do? Did Labor go on a furious angry attack and point out in bold stark terms that this is yet another weapon of mass deception? Of course not, they played right into Howard's hands. Mark Latham signs a big piece of cardboard that endorses the point of view that somehow the Australian government could exert real influence over the flow of capital in the international economy. And as one Liberal commentator pointed out, stunts like that don't change people's minds. But it did put into people's minds that somehow the Australian government could substantially influence international trends. And on the election day, that high number of undecideds came out and played it safe. After all, under Howard, interest rates couldn't possibly rise, could they?

Fear. Uncertainity. Doubt. The essence of John Howards marketing. Like I said, brilliant. And when the next election comes around, when this lie has been exposed, rest assured there will a new one and, perhaps once again, Labor will dither.

Anyway. Richard O'Brien and I got to the Blackburn Primary polling booth at 5.45am. We set up, worked all day and achieved a 3.5% swing to Labor when the rest of the seat went 3.8% to the Liberals. A fairly typical performance from us, but not as good at the 11% gain on primaries we achieved at the Parkville polling booth in the 1999 state election. I reckon a couple of Labor strategists - including Bob McMullin ("Labor's master strategist") -who's losing more elections that Arthur Calwell - needs to be replaced and Rich and I can move in their stead.



However, New Zealand does beckon more (again) as a viable option. And I am a citizen after all..


The election result has underscored my feelings from the last one - which convinced me to move to East Timor - that I can have no pride in being an Australian. We have become a country where "the fair go" is no longer part of the national ethos, we where we lock refugee children up behind razor wire, a country of wowser puritans which is economically myopic, racist to both our indigenous people and migrants and utterly subservient to American foreign policy. And under such circumstances, one has to be a realist and work out whether it is a more efficient use of my energies to try to turn the situation around here, or further the progressive reforms already started in a place like New Zealand.

There are negatives of course. New Zealand, being more isolated from its major trading partners, has a lower purchasing power per capita $21,600 USD (NZ) versus $29,000 USD (NZ), making NZ wages roughly 75% of their Australian equivalent - and no, that's purchasing power, so don't think "but rents are cheaper". Unemployment is lower (4.7% versus 6%) but there's a poor distribution of income, especially at the more extreme points (bottom 10%, top 10%). Infrastructure isn't quite as good on most issues (rail, roads, pipelines) on a per capita basis but in telecommunications they're almost equal ('phones per capita, Internet users per capita) and in some cases they even far surpass Australia (e.g., radio). The electricity production is comparable and less than 1/3 of it comes from fossil fuels (compared to Australia's 91%). The current account deficit and foreign debt is somewhat better than Australia's although at some stage it'd probably be a really good idea to diversify their exports a bit more.

What I find most appealing however is the political system. A unicameral parliament made up of single-member constitutuencies and proportional representation seats with special seats for Maori constitutencies. In the last election (2002) Labor received 41%, Nationals 21%, New Zealand First 10%, ACT 7%, Greens 7%, United Future 7%, Others 7%. From what I can tell, ACT are moderate capitalist libertarians, NZ First are old conservatives, anti-immigration, anti-indigenous rights (and to think my mother is a personal friend of their leader, Winston Peters *shakes head*), United Future is a "family values" party, moderate conservatives with a god-awful website as well.

So whilst NZ isn't some sort of Labor utopia the fact that the nominally "conservative" parties have fragmented into "modern", "traditional" and "reactionary" wings means that I find that I could at least deal with the ACT and the Greens (cf., "geolibertarianism") under a general social democratic orientation. I could live with that. In fact, I think some real mileage can be gained from it, especially given New Zealand's propensity to engage in brave acts of independent foreign and domestic policy. All of this is very encouraging compared to the Australian political landscape.

And besides... There's this little town called Dunedin...


All other events in the past week went well in comparison. Clinton's launch of "Reluctant Saviour" on Australia's foreign policy on East Timor was positive and, having now finished the book, I can recommend it even higher. As I expected, this is a book of disturbing (well, not disturbing to me) facts, and strong theory based on rather common-sense elucidations.

Richard Stallman's presentation on the danger of software patents at the Uni of Melbourne was extremely well attended - at least five hundred people. The straggly haired programmer from the seventies, picked his nose, kicked off his shoes and utterly destroyed the idea that patents are good for software development - remember you, and your users, can be sued for software that you wrote. Want to protect yourself? Well, read the tens of thousands of software patents in Americo-legalese.

Wednesday is Deb's opening for East Timor Women Australia at 6pm Ross House, 247 Flinders lane, Melbourne with East Timorese music, coffee, and nibbles

Finally, on Friday [livejournal.com profile] severina_242 is having her exhibition "Domos Monstrous" with Kerri Michael at the Intrude Gallery, 114 Gertrude St, 6.30 - 8.30 pm. I had a little to do with this, writing the original proposal for the exhibition which, contrary to most art critics who claim the Australian suburban landscape is plain, safe and boring, presents the suburban dream as a disturbing nightmare that is unsettling and dangerous. Come along and support great art.

Update

Where to for workers and the left? forum at 7pm Thursday 14 October, Upstairs, Mac's Hotel 34 Franklin St CITY (Between Swanston and Elizabeth sts). My ([livejournal.com profile] paula_angela) fellow speakers are: Fraser Brindley, Greens Councilor, Moreland and Tessa Theocharous, Socialist Alliance candidate, Moreland Council

and I've just applied to join the New Zealand Labour Party.

[identity profile] frou-frou.livejournal.com 2004-10-10 02:07 pm (UTC)(link)
A fairly typical performance from us, but not as good at the 11% gain on primaries we achieved at the Parkville polling booth in the 1999 state election

Might I be so bold to claim some of that credit for myself, Lev? I worked hard with you on that day too :)

[identity profile] tcpip.livejournal.com 2004-10-10 02:15 pm (UTC)(link)

Indeed you can, and yes, you did work hard on that day - and surprised the daylights out of Rich and myself when you mentioned we'd won eight seats... turned out to be an underestimation!

Ahh, those were heady days...

What are you doing up so late on el-jay anyway? ;-)

[identity profile] tabouli.livejournal.com 2004-10-10 02:21 pm (UTC)(link)
Interest rates. What a plan of evil genius that was.

Indeed it was. I'm the first to admit I'm shaky on politics and economics, but I have a pretty good handle on human nature, and the minute I saw those Coalition ads on interest rates rising under the ALP I heard the alarm bells ringing. After all, in the last few years, the amount of none-too-economically-savvy people who've been lured into mortgages they can't afford by the housing grant and all the dodgy mortgage brokers I hear advertising their services ("No deposit, no worries!") must be huge. Surely, I thought, Latham is savvy enough to see this and counter those ads ASAP? But no.

Sigh.

[identity profile] zey.livejournal.com 2004-10-10 04:21 pm (UTC)(link)
As someone who's thinking seriously about the NZ Option, what's the particular attraction to Dunedin?

New Zealand beckoning

[identity profile] geoff.livejournal.com 2004-10-10 05:17 pm (UTC)(link)
funny you should mention it.. i may be joining you there (or going to Vancouver, BC) if Our Upcoming Elections here take to a More of The Same fate.

i see that .nz has ADSL, but avarice greed seems to be ruling the day and it is therefore conciously pricey due to Telecom New Zealand's scarcity tactics.

as you know, i recently returned from spent 6 years in a country where The Telecom there is doing exactly the same thing to the detriment of The Greater Good.

in any case, i'm In Process of postulating an exploratory trip to .nz check, but not Czech, things out. from what little i've gleaned, Auckland seems to be the "warmest place" with "the most civilization" (i.e. fast internet and good food -- remembering that's all that's really needed to live a good life... :)

[identity profile] monkeygirldiva.livejournal.com 2004-10-10 06:52 pm (UTC)(link)
i can definitely understand the urge to move to new zealand... in cairo during the last iraq war, i was telling people i was a new zealander for personal security reasons. as a result, i feel like i have a certain affinity with the place (and the people), even though i've never even been there :)

Re: New Zealand beckoning

[identity profile] kimeros.livejournal.com 2004-10-10 07:47 pm (UTC)(link)
I vote for Wellington over Auckland, I guess that's why I live here :-)

Wellington has a lovely civilized and friendly atmosphere although I admit it's not as warm as Auckland.

you vote for Wellington over Auckland

[identity profile] geoff.livejournal.com 2004-10-10 08:09 pm (UTC)(link)
1. why?

2. pro's & con's, pretty please...?
with (or without) some Orange Mousse on top :)

Wellington

[identity profile] aayande.livejournal.com 2004-10-10 08:20 pm (UTC)(link)
Admittedly Auckland might be warmer but it's also wetter and Wellington gets more sunshine. I reckon the coffee is better here too. And we've got fast internet too - the only major competitor to Telecom (TelstraClear) currently offers its fast cable internet only in Wellington and Christchurch...

Re: you vote for Wellington over Auckland

[identity profile] pftqg.livejournal.com 2004-10-10 08:27 pm (UTC)(link)
I vote for Wellington (or even Christchurch).

Not because I don't like Auckland (I do), but because ADSL is such a waste of time and money it's not funny. TelstraClear (!) actually compete with their cable internet products. Surprising that (unlike phone charges) Telecom has not even bothered to actually compete on this, and then harp on about "xtra broadband". Heh.

Re: New Zealand beckoning

[identity profile] pftqg.livejournal.com 2004-10-10 08:31 pm (UTC)(link)
Actually Auckland does not have the fastest internet (though there is limited access to a new radio based service...) as realistically unless you get fibre and live in the central city (two pricey options), then the most you'll get is ADSL (at somewhere between 2 and 6 Mbps). In Wellington or Christchurch you have cable (which has 2 or 10 Mbps plans).

ADSL is not worth thinking about here, as Telecom refuses to really compete. Cable, however, works quite nicely for those who can get it (me!).

Wellington is also the Cafe capital (or at least it was), and is rather better laid out for those who enjoy such things (the central CBD is rather more flat than Auckland's, which is rather humorous).

Re: Wellington

[identity profile] geoff.livejournal.com 2004-10-10 08:41 pm (UTC)(link)
i'll take more sunshine and less wetter over warmer (provided the delta isn't That Large ;) any day.

i see you're also into electronica -- is there a good scene for that in Wellington (or Auckland, for that matter)? any radio stations, commercial or university, that play it? i'm thinking of taking My Next Career in That Direction.

i wasn't aware of the TelstraClear/cable option to TPC (The Phone Company), so that is a major plus (along with the more sunshine, of course!) :))

thanks for your time, really appreciate it.
geoff

Wellington is also the Cafe capital (or at least it was)

[identity profile] geoff.livejournal.com 2004-10-10 08:47 pm (UTC)(link)
what dose this mean/infer/refer to?

wrt to fast(est) internet, here in The San Francisco Bay Area i'm paying $40 USD (~58 NZD) for 3 Mbps ADSL. in Prague, where i lived for the previous 6 years, i was paying twice that amount for creaky 256kbs connection using an 802.11b p2p connection. i would hate to have to go back to under 1 Mbps again.

thanks for your insights, really appreciate it.
geoff

Re: Wellington is also the Cafe capital (or at least it was)

[identity profile] pftqg.livejournal.com 2004-10-10 08:52 pm (UTC)(link)
A couple of years ago Wellington had more Cafes per capita than New York. I have no link to something to back it up, but it was true when I came here 2 1/2 years ago.

I pay (well, myself and flatmates) pay $58/mnth for 2mbps down/256k up. Cable here is not as bad as I've heard it being in the US - I guess due to it having speed caps the cables are generally not over crowded. (Namely I have no problem reaching the max of 2mbps downloading.) 10mbps costs more. Quite a lot more. Bastards.

Re: Wellington is also the Cafe capital (or at least it was)

[identity profile] geoff.livejournal.com 2004-10-10 09:06 pm (UTC)(link)
i've just been poking about the TelstraClear's Paradise High Speed Internet website and it looks like *all* the packages have monthly traffic allowances :(((, while TPC's Xtra JetStream Surf Flat Rate ASDL offers an Unlimited monthly traffic option (albeit at only 256kbs). speed vs. limits... hmmmm

Re: Wellington is also the Cafe capital (or at least it was)

[identity profile] pftqg.livejournal.com 2004-10-10 09:14 pm (UTC)(link)
Indeed they do have traffic limits - but so does the flat rate plan (speed drops once you hit 10GB or so).

The excess of traffic coming in (vs going out) is what causes high cost of bandwidth here (at least bandwidth that includes traffic charges). Mainly it's the international traffic which costs (due to that pesky cable going between us/the Aussies and the US), but TelstraClear (and other Telcos) are doing there best to eliminiate local traffic being "free" (which it should be).

I'd rather have high speed than unlimited traffic. Four of us here rarely go over the 5GB cap we have (we did once). And 256k isn't high speed, at all. Shudder at the thought.

Plus Telecom is evil, supporting them is just silly. Have a look at Woosh, which in Auckland and the Wellington CBD offers "250k", but with unlimited downloads, is not Telecom, and is CDMA-based wireless (not, however, part of a cell "phone" system, it's purely data from what I understand) - www.woosh.co.nz.

[identity profile] jadine.livejournal.com 2004-10-10 09:36 pm (UTC)(link)
The electricity production is comparable and less than 1/3 of it comes from fossil fuels

Wow, that's really impressive.

Vancouver! You want to move to Vancouver!

Re: Wellington is also the Cafe capital (or at least it was)

[identity profile] geoff.livejournal.com 2004-10-10 09:48 pm (UTC)(link)
i believe The Problem is They, Your Evil TPC and Southern Cross -- the jointly owned undersea cable provider, have conspired to have most of the cables 40 Gbit capacity lie idle/unused/unconnected. just because They can. :(((

The Result: artificial b/w scarcity and high(er) prices for extant internet offerings. if They were to open, er, light it all up, It could provide 11.5 continuous kilobits every second of every day to every one of New Zealand's 3.75 million people.

thanks for the pointer to the woosh guys -- will check it out (although i have doubts that any wireless only data network offering unlimited traffic will ever be able to pay back their initial capex, let alone, break even/make a profit).

[identity profile] tcpip.livejournal.com 2004-10-10 09:50 pm (UTC)(link)
Wow, that's really impressive.

New Zealand has lots of mountains, lots of rain ergo lots of hydroelectricity.

Australia could be just as efficient. We have a lot of sun here, know what I mean?

Vancouver! You want to move to Vancouver!

*nods* Option two is Canada, and Vancouver in particular (hey, does William Gibson still live there?). Would like to visit it first of course.

What surprises me about Canada is that they seem to have done correctly everything that Australia stuffs up on... A federal government, multiculturalism, indigenous affairs..

[identity profile] tcpip.livejournal.com 2004-10-10 09:53 pm (UTC)(link)

*nods* You're exactly right. With the fall in interest rates - which is usually a sign of poor investment demand - "ordinary" Australians started trying to play landlord and capitalist. So we have a lot of people with a second and third mortgage and a swag of Telstra2 shares and debt.

[identity profile] tcpip.livejournal.com 2004-10-10 09:58 pm (UTC)(link)

A small city (200K, IIRC). A university city, with quite a decent university (Otago). Amazingly attractive place, albeit very hilly. Close enough to the central lakes and so'west mountain region. Very Scottish, of the liberal Presbytarian variety.

Oh, and the Labor Party out-polls the conservatives 4:1. ;-)

Re: Wellington is also the Cafe capital (or at least it was)

[identity profile] pftqg.livejournal.com 2004-10-10 10:02 pm (UTC)(link)
Indeed, however ultimately some of the cost comes from the US (etc.) gateways who charge us. Of course 40gb connectivity is now looking less and less useful (so god damn small! Need more)

11.5 continous kilobits doesn't sound that good to me :) - and it's no longer 3.75 it's 4.07 according to Statistics NZ

[identity profile] tcpip.livejournal.com 2004-10-10 10:06 pm (UTC)(link)

New Zealand has a certain gusty approach to foreign affairs that means that they're prepared to tell a larger power to "get nicked, we're doing it our way". Usually small powers can be easily manipulated to their detriment. Look at East Timor's minister for foreign affairs for a prime example :/

Mind you, Canada does it to. The US is probably still smarting from the time they tried to invade and were soundly defeated...

Re: Wellington is also the Cafe capital (or at least it was)

[identity profile] tcpip.livejournal.com 2004-10-10 10:17 pm (UTC)(link)

11.5 continous kilobits doesn't sound that good to me :)

Yeah, but it would be 11.5 for every single person, all the time.

It's like the 'phone lines over here. Estimated normal use compared to capacity - 2%.

Re: Wellington is also the Cafe capital (or at least it was)

[identity profile] tcpip.livejournal.com 2004-10-10 10:20 pm (UTC)(link)
The Result: artificial b/w scarcity and high(er) prices for extant internet offerings.

*nods* The economics of telecommunications infrastructure is quite interesting. I tend to the opinion (heck, I've been saying this one for years) that the public sector should look after the infrastructure and the private sector should look after the service. This would result in maximum productivity in both areas.

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