Here are my favourite points from the linked article.
Referring to the most recent global economic crisis as a mere ''blip'', he said the coming crisis could undo the mining boom and bring on inflation of the kind not seen since the 1970s.
The response globally to the financial crisis was mostly to kick the can down the road. At some point this must stop, and the longer it goes on, the worse the resolution must be.
Joking that he could not talk about Australian interest rates, which were in any event ''always appropriate'', the Reserve Bank board member warned that the inflation would spread worldwide.
I would say that Australia has been severely buffered from global inflation by our exchange rate. Who knows how long this can last. My suspicion is that if interest rates go up to fight inflation, our local economy will flounder and we will end up having to drop interest rates severely and get our share of inflation anyway.
Australia needed a sovereign wealth fund to store mining income while it lasted, ideally stored in a separate account for each taxpayer so the government could not raid it.
Of course I agree about using the tax revenues raised from the mining investment boom to save for our future. The idea about giving each taxpayer an account seems particularly interesting. I haven't put much thought into it but at first glance like the idea.
The $50 billion national broadband network epitomised the sort of waste Australia could not afford. ''I would say to any politician who thinks that spending is worthwhile, take your salary as shares in NBNCo. If you think it's a good investment, you'll be ahead,'' he said.
While I think the idea is great, the positive externalities generated by the NBN should factor into the equation, yet these can't be captured by revenue from broadband access. But in general I like the idea.
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