Updating the Property Indicator That Has Predicted Every Major Recession

Rent-seeking sits at the root of most (if not all) our economic woes — and wars for that matter.

It is why we have a land cycle, commodity cycle, a credit cycle — and ultimately, a volatile business cycle.

Australia’s economy is built around it.

Over 80% of today’s wealthiest Australians have made their fortunes speculating on property, mining, banking, superannuation and finance — gaining favourable property rezonings, planning law exemptions, mining concessions, labour law exemptions, and credit creation powers.

If you want to free yourself from wage slavery, you have to learn to play the game of monopoly as they have.

As one of Australia’s greatest monopoly players, Rupert Murdoch quipped in his 1994 John Bonython lecture ‘The Century of Networking’:

‘Because capitalists are always trying to stab each other in the back, free markets do not lead to monopolies. Monopolies can only exist when governments protect them.’

I explained in The Cashmore Files (which is available in the Member’s Publication section of the website) how land (economic rent, and the credit creation process that backs it) was purposely written out of economic textbooks. This happened shortly after the economist Henry George rose to prominence in the 1890s.

It left many economists and politicians blind — unable to predict forthcoming recessions.

This misinformation was, and always has been, a form of protectionism for the wealthy.

I dare say that understanding the mathematics that underpins rent-seeking is more important to humanity than E=mc². Greta Thunberg would do well to study it.

When you appreciate how lucrative rent-seeking is to those in power, it is very easy to see how democracy fails us. Instead, it works tirelessly to silence voices by politically reinforcing faulty economic theories.

I’d go so far to say that if economists fully acknowledged it, and governments acted on it, the results would be akin to discovering new continents. Monetary theorists, too, would contemplate its importance in respect to the credit creation process.

It can be summarised simply.

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