i am not an economist but what do you do when you have rising inflation and negative growth(which no doubt will continue when GDP is released in august). raise rates to control inflation or lower rates to maintain growth. i believe they will rise as the RBA is always inflation driven. my utility bill is going up about 20% this year alone.inflation seems to be accelerating and interest rates will rise further-but this inflation is not driving by local demand. increasing rates will not lower prices much more-but it will close shops down.which is what im seeing occur locally.i see a sustained lack of growth if not shrinkage of our economy for the foreseeable future.
as to interest rates we all know that the banks determine rates in this country which is what occured doing our last run of rises. ANZ believe that they will rise-WESTPAC believe that they will fall. ANZ didnt wait for the RBA to increase last time before they did and WESTPAC didnt either-yet on the downside they await the RBA guidance.
Sunday, 31 July 2011
US debt ceiling
It looks like a compromise has been reached on the debt ceiling increase until after the next election.1 trillion over 10 years and a commitee to reduce another 1 trillion over 10 years.since the US racks up about 100 billion debt a month this is merely trimming the hedges.i suppose its a start but come early 2013(assuming the world hasnt ended)the ceiling will be reached again and you will probably find that budget expenditure has increased instead of decreasing. but of course the stock market rebounded-crisis solved. tommorrow never comes in finance.
Monday, 25 July 2011
world debt
It is now a good time to look at world debt issues, something that our government or reserve bank doesn't seem to do. there is still a presence of increasing interest rates driven by inflation-but where is this coming from. i see falling prices in australian retail-people aren't spending, therefore this must be from sources beyond australia.
rising world inflationary pressures caused by the debasement of fiat currency's by the unlimited printing of new money.banks have taken a hit on the greek default and america is arguing over the debt ceiling-which we all know will be increased at the last minute.even now ben bernanke is shining up his golden horse (actually i forgot.he doesn't like gold- its price highlights the great job he is doing).i will rephrase- even now bb is shining up his paper horse to ride in and save the day-the solution-more liquidity; another trillion will fix the problem.
On another note our deepest sympathies go out to the people of Norway.we had a similar event happen here in australia. even after many years it is still uncomprehendable how someone can show that much comtempt for anothers life. In a modern world all people should have the right to seek their own individual path but this should only be on the basis of self improvement and betterment of others-any ideology that utilises fear and hatred as its tools will be resigned to the past as together we move forward
rising world inflationary pressures caused by the debasement of fiat currency's by the unlimited printing of new money.banks have taken a hit on the greek default and america is arguing over the debt ceiling-which we all know will be increased at the last minute.even now ben bernanke is shining up his golden horse (actually i forgot.he doesn't like gold- its price highlights the great job he is doing).i will rephrase- even now bb is shining up his paper horse to ride in and save the day-the solution-more liquidity; another trillion will fix the problem.
On another note our deepest sympathies go out to the people of Norway.we had a similar event happen here in australia. even after many years it is still uncomprehendable how someone can show that much comtempt for anothers life. In a modern world all people should have the right to seek their own individual path but this should only be on the basis of self improvement and betterment of others-any ideology that utilises fear and hatred as its tools will be resigned to the past as together we move forward
Monday, 18 July 2011
carbon tax2
as the labor party cranks up their advertising campaign to sell the carbon tax i must mention a few things.when gillard said all would be revealed that appears to be another lie. nothing was really explained- no new tax scales.no mention of blowing 4 billion on purchasing overseas credits-which are totally bogus. i also read that the sale of a home will require a green star rating costing several thousand. another bogus scheme used to rob the people. please dont waste our money, used it in the most efficient manner.
also one more point about the carbon tax. would labor be pushing it if the greens did not hold the balance of power? no way. the greens have got their fingers all over this. so come out from under gillard's skirt and stake your claim
also one more point about the carbon tax. would labor be pushing it if the greens did not hold the balance of power? no way. the greens have got their fingers all over this. so come out from under gillard's skirt and stake your claim
Thursday, 14 July 2011
carbon tax
do we need a carbon tax? firstly i am not a scientist, Gillard is not a scientist and you the reader are probably not a scientist. so what do we do? ignore their advice- i think any responsible government must act.
lets look at the package- this is the first tax in history i know of that costs the government more money than it initially recieves. but dont be fooled, this is just the cost of the goverment getting their foot in the door. like all taxes this will eventually cost everyone. what hasnt been displayed is the new tax scales as the raising of the threshold to 18k must be offset by he lowering of other tax rates since people on 80k will get no tax cut.
the greens have been clever in not making a chest beating stand- this is progress in their agenda and any talk of abbott rolling back this tax is dribble because the greens wont let him. the removal of petrol which is the greatest source of carbon is once again to make it more palatable- i believe this will be included at a future date
but like I said initially, any responsible government must act. I just dont agree with the timing. the world appears to be the verge of GFC2. we are totally reliant on the mining boom and chinas GDP. The rest of our economy is struggling-poor retail,high dollar-falling property prices. I believe that we will be in a technical recession when the latest GDP figures are released. falling global consumer demand will bring about a fall in the carbon production for now- so lets wait before we rush into this- another year wont hurt.
lets look at the package- this is the first tax in history i know of that costs the government more money than it initially recieves. but dont be fooled, this is just the cost of the goverment getting their foot in the door. like all taxes this will eventually cost everyone. what hasnt been displayed is the new tax scales as the raising of the threshold to 18k must be offset by he lowering of other tax rates since people on 80k will get no tax cut.
the greens have been clever in not making a chest beating stand- this is progress in their agenda and any talk of abbott rolling back this tax is dribble because the greens wont let him. the removal of petrol which is the greatest source of carbon is once again to make it more palatable- i believe this will be included at a future date
but like I said initially, any responsible government must act. I just dont agree with the timing. the world appears to be the verge of GFC2. we are totally reliant on the mining boom and chinas GDP. The rest of our economy is struggling-poor retail,high dollar-falling property prices. I believe that we will be in a technical recession when the latest GDP figures are released. falling global consumer demand will bring about a fall in the carbon production for now- so lets wait before we rush into this- another year wont hurt.
Friday, 1 July 2011
greens take control
with the start of the new financial year it seems like a good time to start my blog. as the greens now take control of the senate and bob brown becomes the new de-facto prime minister. of course labour have only themselves to blame as they have moved so far to the right, and with the demise of the democrats"keep the bastards honest"
who ironically capitulated because they weren't- we are now in our current situation.
so starting today the public officially puts the greens on trail. i for one will be watching intently. no longer can the greens merely contend themselves with the habitat the of purple-headed tit pecker bird. they now represent all australians and will need to find that delicate balance between their ethos and the needs of the people.
i will attempt to update every week and give my opinion on any relevant issues
who ironically capitulated because they weren't- we are now in our current situation.
so starting today the public officially puts the greens on trail. i for one will be watching intently. no longer can the greens merely contend themselves with the habitat the of purple-headed tit pecker bird. they now represent all australians and will need to find that delicate balance between their ethos and the needs of the people.
i will attempt to update every week and give my opinion on any relevant issues
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