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Post by SA Hunter on Apr 27, 2019 22:12:50 GMT 10
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norseman
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Practical is Tactical!
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Post by norseman on Apr 28, 2019 7:10:31 GMT 10
The average bloke and family living in the burbs has just got no money to spend full-stop! They've been maxed out for years, basically living a smoke, mirrors and bullshit existence which is now cratered! These people are the larger economy that everyone else lives off and when they tank then each layer of the economy after them begins to tank! There's just nothing left to "inflate"!
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blueshoes
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Location: Regional Dan-istan
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Post by blueshoes on Apr 28, 2019 8:16:53 GMT 10
I think we still have another 1-2 years til the recession really hits but it's gonna be deep... and it will be interesting to see if China and other powers use it to shift world economics away from US currency, and whether this does actually balance things up a bit
The thing that bothers me most about the Aussie economy is that since overseas postage/shipping to Aus is so much cheaper than domestic shipping ... we are effectively competing in a global market with countries with much lower wages which is just going to keep forcing our wages down until that evens out. From that viewpoint, economics is likely to keep deteriorating for a while yet - hopefully we don't get priced out of owning our own land or things will really suck in 20 years time (except for Frosty - yeah yeah we know mate, you'll be fine and it doesn't bother you).
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Post by spinifex on Apr 28, 2019 10:49:14 GMT 10
Measuring inflation in the real economy is a bizarre statistical undertaking at best. Probably what is being measured in the last three months with alleged zero inflation is consumers reallocating expenditure from some of the goods/services used to take the measure to others that are not currently used to take the measure.
I agree with Norseman ... the only way consumer price inflation can happen is if consumers are getting bigger pay packets each year OR racking up more debt. The banks seem to be closing the debt door and that should be the real warning sign that there is an income contraction coming. Are wages rising?
Interestingly, if the economic SHTF gets really bad and banks start taking their well earned losses ... I'll wager the government will start helping them out by giving taxpayer dollars (subsidies) to mortgage owners to enable them to keep making interest payments to the banks. This has already been happening in the farming sector for decades. The Gov dresses up injecting tax dollars into the banks by sending them via a farmer or (in future) mortgagees. What of course should happen, is that Banks should be taking losses on foolish loans that have done nothing except boost inflation. Remembering of course that all new money in western economies (ie the root CAUSE of inflation) is ALL 'created' into existence by new loans. If new loans slow ... inflation slows too. And ... guess where most loans go? And guess what is happening to that cornerstone of the Oz economy?
The irony is delicious isn't it? The group that trumpets loudest against 'socialism' doesn't mind going socialist to support their own interests when the sacred 'market forces' turn against them.
So ... renters ... best of luck with the capitalist socialist system that will see you not only paying rent to your negatively geared landlord, so they can pass it on to the bank, but also your taxes. And ... negatively geared landlords ... best of luck with making future capital gains. The rest of us: good luck with publicly funded health and education as much more tax revenue is diverted to the banks to prop them up.
It's time we went 100% proper capitalist market economy where those who take the risky loans eat their own losses, there are no tax subsidies for anyone and the playing field is a bit more level.
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spatial
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Post by spatial on Apr 28, 2019 13:56:48 GMT 10
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Post by jonasparker on Apr 29, 2019 4:03:56 GMT 10
On a brighter note, Ft. Worth Texas is now the fastest growing city in the US, and Hood County Texas is the 9th fastest growing county in the US. It looks like we bought here just in time!
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Post by spinifex on Apr 29, 2019 19:33:11 GMT 10
Who is moving in there JP? Folks escaping from California?
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Post by jonasparker on Apr 30, 2019 3:55:27 GMT 10
Who is moving in there JP? Folks escaping from California? Lord I hope not!
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Post by 4leggedmutt on May 1, 2019 22:32:17 GMT 10
Hello all....Watched Insight tv program the other night...re increased cost of living, high electricity prices, food prices etc and how quests on the show - people from a wide / varied background - are coping, their wages, job, business, how illness and injury impacted their financial state. Definitely less disposable income out there. Have been trying to sell my 2 rental properties for almost 3 years....plenty of lookers, no one yet has put in a written offer. Neighbours that are out and about in the wider community are also now stating that things are bad out there and that something has to give. So, at least we are aware of what may be coming down the tube. Homeless numbers are up. Living a frugal lifestyle now in preparation for what seems to be the trend.
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spatial
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Post by spatial on Jun 12, 2019 19:45:53 GMT 10
Hello all....Watched Insight tv program the other night...re increased cost of living, high electricity prices, food prices etc and how quests on the show - people from a wide / varied background - are coping, their wages, job, business, how illness and injury impacted their financial state. Definitely less disposable income out there. Have been trying to sell my 2 rental properties for almost 3 years....plenty of lookers, no one yet has put in a written offer. Neighbours that are out and about in the wider community are also now stating that things are bad out there and that something has to give. So, at least we are aware of what may be coming down the tube. Homeless numbers are up. Living a frugal lifestyle now in preparation for what seems to be the trend. It is official _ retail sector is imploding. Lowest interest rates ever for Aus, EU and US looking at dropping interest rates. Big smash coming. Oil price dropping which is a good indication world economy is slowing. China promised more stimulus as economy and stocks going down. Oz economy down to GFC level and no China to save the world. www.zerohedge.com/news/2019-06-11/australias-grim-retail-sector-clearly-recession-warns-national-australia-bank
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spatial
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Post by spatial on Jun 20, 2019 19:37:49 GMT 10
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Post by spinifex on Jun 20, 2019 21:34:56 GMT 10
Gold high in $AUS because our currency is at an extreme low V's $US. Gold is measured in $US.
Enjoy paying more for fuel and other international imports measured in $USD.
We are now likely feeling the effects of global trade war. Happy days.
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frostbite
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Post by frostbite on Jun 21, 2019 7:26:35 GMT 10
it's a good time to buy real estate. My son just bought a nice 4 bedroom house, 3 years old in a rural suburb on the outskirts of Albury. Only $375k. He's planning to put tenants in it, with anticipated rent of $400pw covering the mortgage. The house was so cheap he's already looking to buy another one. Cheap prices, low interest rates, still enough work in the building trades in Sydney make it a good time to build wealth.
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spatial
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Post by spatial on Jun 21, 2019 14:46:51 GMT 10
Gold high in $AUS because our currency is at an extreme low V's $US. Gold is measured in $US. Enjoy paying more for fuel and other international imports measured in $USD. We are now likely feeling the effects of global trade war. Happy days. Gold price is moving up almost USD $60 an ounce from overnight lows to +$ USD 1404.0 It is a real swing to safe havens, many calling it the begging of economic collapse. Hence interest rates dropping and real-estate prices slowing across the globe. It is a very risky time to investment. goldprice.org/
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Post by spinifex on Jun 21, 2019 17:04:04 GMT 10
Diverse investments take out the worst of the shocks. When one thing does poorly another always does well.
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