Letters to the Prime Minister

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—–Original Message—–From: Prime Minister of Australia via Prime Minister of Australia <webservices@pmc.gov.au>
Sent: Sunday, 8 November 2020 9:56 AM
To: milton@miltoncaine.com
Subject: Your message to the Prime Minister
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Submitted on Sunday, 8 November, 2020 – 09:56
Title: Mr First name: Milton Family name: Caine
Email address: milton@miltoncaine.com
Your address: Newcastle, NSW, 2287, Australia
Subject: Awaiting a response to letter re the economy
Comment:
Dear Prime Minister,
I wrote to you on the 6 March,2020 on matters concerning the economy and I note that the government is doing very little in regard to getting the country going after a shut down due to covid19. The latest interest rate cut to almost zero will do very little and leaves the financial system in charge of the economic recovery – this industry have rorted Australia and Australians Billions of dollars as demonstrated by the Royal Commission yet they are the drivers of the economy still.
The other stimulus of construction of infrastructure and housing is narrow in focus and aids developers who also have demonstrated their poor practices in many areas causing sub-contractors cash flow issues and bankruptcies.
Manufacturing must be kicked started again as per my original letter: “A direction for recovery can be made if the government bites the bullet and have defence materials purchase the disused car manufacturing plants and commence plans to build Australian Military Vehicles in this country with a view to seeing vehicles for government (police and emergency vehicles) and private use developed. We have the chance to re-develop the Australian and the Holden badges once again in this country”.
This expands recovery and gives hope to other manufactures that we are back in real business and not just a service economy, which we are heading towards. Note the financial industries still are up to many questionable actions including the huge comparative charges on credit charges and service charges when compared to current official interest rates.
Yours in Good Faith
Milton Caine
Atachment included in the email to the Prime Minister is below:
—-Original Message—–
From: Prime Minister of Australia via Prime Minister of Australia <webservices@pmc.gov.au>
Sent: Friday, 6 March 2020 4:36 PM
To: milton@miltoncaine.com
Subject: Your message to the Prime Minister
Thank you for your message to the Prime Minister at pm.gov.au. For your records, a copy of your message is set out at the bottom of this email. All items of correspondence are read and carefully considered, however not all items will receive a response. When responses are sent, these items will be sent via the same method in which they are received; via email or Australia Post. In some cases, where appropriate, your correspondence will be referred to other Federal Ministers or state/territory governments for their consideration. This will occur when the issue raised falls within their responsibilities. This is an automatically generated email. Please do not reply to this email as this address is not monitored. If you have any problems with this service please contact the Web Administrator through the site feedback service at https://www.pm.gov.au/site-feedback
Submitted on Friday, 6 March, 2020 – 16:35
Title: Mr First name: Milton Family name: Caine
Email address: milton@miltoncaine.com
Your address: Newcastle, NSW, 2287, Australia
Subject: The economy
Comment:
Dear PM,
Please note I have attached at the bottom my letter to the editor in today’s Newcastle Morning Herald 6/03/2020 as well as an article by John Hewson in the same paper. Mostly I do not give too much time of the day to the failed Liberal leader yet this time he is somewhere near to a point that needs to be made. Over the past years since about the 1980’s little has been done to set the economy up well and we are now at a point when the economy is on the verge of slipping into a cycle that will lead into a deep recession unless real action is taken. All of the governments have been using money supply as the only leaver to manage the economy and yet there is a plan that ought to better and that is creating real stimulus of the economy and not just having money circulate with our real growth. The lever of money supply is applied to either increase the supply of money or to decrease the supply of money. Printing of more money can increase the money supply as can the reducing of interest rates and the withdrawal of money or the increase of interest rates will reduce the supply of money. These often can cause huge issues for the debt of a nation. Low interest rates will tend to cause a rise in total debt of the nation while higher interest rates will cause difficulties in servicing previous debt . Well managed this can assist in stimulation yet used alone it can become like a drug and self-feed to the point of either stagflation, or a recession and at times can cause an economy to flip flop between both. The problem for Australia is with the use of money supply alone and the winding down of Australian industry and manufacturing, the overseas ownership of real-estate and businesses, and the “free trade agreements” we have an overall reduction in the work hours of the nation and this give no strong foundation for our economy. The effective interest rates are close to zero% and at the doorstep of negative interest rates. Considering that the government is about to introduce a limit on cash spending of $10,000 and essentially creating a dual monetary system (Monetary Policy with Negative Interest Rates: Decoupling Cash from Electronic Money, WP/18/191, August 2018 1/31) and this is not good when the financial industries when through an inquiry that demonstrated $billions were defrauded from the public via various deviant plans by these self-same industries that will have virtual control over the economy and therefore our own personal funds. This is not a good look in many ways and must be prevented at all costs.
The gross domestic product has got to be better than the flow of money that is doing nothing but actually the value added into the economy by the action that the flow of money creates – e.g.: how many trains produced and sold for circulation, how many cars produced and sold for circulation, how many fridges produced and sold for circulation. When the flow of money is related to the purchase of foreign produced products then the circulation of money shows activity without real growth – only a pseudo growth is really shown and often there is debt number associated with the trade involved in that transaction. The stimulus package of Kevin Rudd did more for the Chinese government in the long and short term than it did for Australia which was totally only short term and creating a large debt with the growth is was purported to have resulted from the economic stimulus package.
It can be well established that manufacturing a product in Australia that cost up to 30% more than importing the product from another country is more beneficial for the Australian economy. The reason why includes that the workers will spend their wages and this will create effective economic activity and tax revenue for the Government. Those employed will not be receiving welfare and hence lessens the burden on the welfare system. As the economic activity created by the expenditure of the earning from the local production will have ripple effects throughout the economy as each additional transaction will cause a stimulation affect in the economy in which it is spent.
The dogmatic desire to be beholden to a surplus at all cost will not assist the economy nor will it prevent a recession creeping up but if the government does not act responsibly and fully assess the situation we will see the next recession ambush us good and proper.
A direction for recovery can be made if the government bites the bullet and have defence materials purchase the disused car manufacturing plants and commence plans to build Australian Military Vehicles in this country with a view to seeing vehicles for government (police and emergency vehicles) and private use developed. We have the chance to re-develop the Australian and the Holden badges once again in this country (https://en.wikipedia.org/wiki/Australian_Six and https://en.wikipedia.org/wiki/Holden). We can have effective stimulus packages that have tied grants to Australian businesses that will produce products for Australia consumption and to examine every trade deal to make sure it is beneficial to Australia’s long term future.
It is my view that the IMF is not a trusted advisor of the Australian public economic circumstances and a distance must be created between their advice and the government of this country.
Yours in Good Faith
Milton Caine
A: PRICES TIGHTEN DEBT TIES
In Wednesday’s paper, there was an article about the price rises in housing being good (‘Property growth outstrips capital cities’, Herald 4/3), yet housing affordability is a real problem for many and one of the causes of homelessness. I believe it seems rather odd to celebrate increases in house prices. I would think that a price reduction or a “slump” in prices would be of greater value, making housing more affordable. This, coupled with the reduction in the official interest rates (‘Questions over coronavirus rate cut’, Editorial 4/3), are both going to encourage price growth making housing less affordable for the most vulnerable. Stimulus packages of all governments have the financial industries lend more money, creating greater debt and borrowing capacity for both businesses and the private person. This makes us all bound tighter to the financial institutions, yet these are the same ones that a royal commission revealed had severely failed the Australian people. Billions of dollars via various schemes that the financial inquiry revealed, and there was virtually no penalty imposed upon them for this. Instead, it seems there is just a plan to increase our dependence upon them.
The old Scottish saying; “You can’t buy it if you can’t pay for it” is buried by the current practice of “Why pay for it if you can borrow to get it”. In my opinion a new direction is needed.
Milton Caine, Birmingham Gardens
Government’s spin on economy exposed
HEWSON’S VIEW – JOHN HEWSON
THE management of the Australian economy is in the spotlight. While the Morrison government has persisted with its pre-election rhetoric that “Our Economy is Strong” and emphasising their commitment to “Make it Stronger”, our economic wellbeing has been slipping further away. Our economy has been weakening for at least the last couple of years. The latest growth numbers, released this week, suggest our growth rate was a mere 0.5 per cent for the December quarter, and 2.2 per cent for the year 2019. This is well below what the government/authorities had been forecasting, and well below what they consider to be our “trend growth rate”. Wages have been weak and flat-lining, household debts are at record levels, and unemployment has recently begun to rise again, with nearly 2 million people either recorded as unemployed, or unable to get as much work as they want. The government’s slogans and rhetoric therefore haven’t been resonating with the public (quiet or otherwise) who have mostly been struggling with the ever mounting costs of living, in the context of all this economic uncertainty. Of course, the government now faces the inevitability that our growth will slow even more, as the effects of the drought, the bushfires, and the coronavirus flow through. Indeed, given the inherent weaknesses in our economy, it is now possible that our economy could slip into recession in the course of this year. While the government has ignored many calls over many months (including from the Reserve Bank, business and civil society groups, and international agencies such as the IMF) for them to stimulate our economy, it is only in the last few days that Morrison has began to acknowledge the need for stimulus ……… While we have enjoyed some 29 years since a recession, this may be coming to an end.
John Hewson is a professor at the Crawford School of Public Policy, ANU, and a former Liberal opposition leader.