Now that things are returning to normal, what to make of this unbelievably high inflation rate?
I’m sure when the Reserve Bank measures inflation, it doesn’t take into account in its basket of goods MLs charging 5, 10 or even 15 dollars more. Nor would it know that (K) Rebecca is probably $400 now for a root.
What to make of petrol prices (thanks Putin) going to $2.20, coffee at $5.50, used car prices more than new car prices, electricity price rises, domestic airfares doubling in price? Forget about buying a nice house. But wages will be lower still by the time those 200,000 immigrants bust the doors down to get here next month.
Rant over
Mate when you wake up every morning and when you go to bed every night and every second in between be thankful you had the good fortune to be born in the best country in the world (well at least top 10 anyway).
The vast majority of humanity is born and spends their whole life in a shit hole country.
The balance here is the increased supply of MLs and WLs as boarder opens up. Increased supply should keep a lid on punting inflation- in theory. As far as RBA is concerned I would argue they know better than most how to fuck this up and easy money has driven asset inflation for the last 2 years or more. Oil price will eventually fall, and is having minimal impact on wholesale prices. Yes it hits the punter hip pocket but most inflation is coming as a result of supply chain issues. Bring on the rant.
Mate, the RBA is a toothless dog. Always a dove. Oohh, we can't risk the property prices in Australia. You know what happens to doves? They get eaten by Hawks. Watch as the RBA continouously comes up with excuses not to raise the interest rate. They'll be saying inflation is high, but wages are not going up, so they gonna keep making cheap money until it goes up. How it goes up? They have no idea.Originally Posted by Fred Flintstone
Or here's a classic one: They're saying house prices starting to cool down will prevent inflation from going up, thereby preventing interest rate hikes. I don't know if they're stupid and think we are stupid as well, or they just have a bad memory because when house prices were going up, they were saying house prices did not affect inflation so it was not a good reason to raise rates! So house prices going up doesn't affect inflation, but when it comes down it does?
Meantime the central banks around the world who probably have enough conflict of interest controls in place to ensure the people who are controlling the levers actually cannot profit from keeping the levers at a certain setting, are raising interest rates. Voila, watch the AUD plummet like a rock.
Here's something to think about. It is true that the people controlling the RBA are legally required to disclose their own financial positions in order to prevent self-gain using the powers vested in them. Phil Lowe has disclosed that he does not own any investment properties (that's right, zero), for example. Same goes for his RBA colleagues. None of them have any investment properties. It is freely published by the RBA. But here's the thing, what about all the people around them? Family members or trusted associates? Nope, no need to disclose anything. All of them are virtuous penny pinching buggers, every single person who is connected to them are like that. How likely do you think that can be true?
The RBA is governed by the government, in the same lazy and ineffective way as the ASX is by the ASIC. All kinds of shenanigans can be played without any oversight on them.
With the property market. it’s all about the monopoly who can afford it with all those portfolios. Nowhere near 2 people first homebuyer with low-med income able to buy unless you got big depo. as now average house in sydney min 900k-1.5m.
The rich getting richer. the poor will just suffer and not able to join the game. especially with the new generation if they don’t have their parents welfare.
Most of banks already rose their interest. And frankly, grocery prices gone up 5-15%. Only the prices for massage haven’t changed.
Sometimes you just have to accept that some people can stay in your heart but not in your life
The experts were stating interest rates won't increase until 2023 or 2024. Well, it's going to occur early probably this year and wait to see how many people will have difficulty in making repayments on their mortgages.
As for those RBA officials of course they have nothing in their names. It's all in family trusts and private companies to minimise paying any tax at all. The wealthy pay little or no tax. The ordinary worker is the one paying taxes while the rich get richer.
Yes, everyone in the general public are feeling the pain of inflation, it's only the RBA that says CPI is "close to its target" of 3%. They need to be transparent and explain how they came up with their CPI because it is frankly unbelievable.
I think the real threat is our energy cost as that alone will impact on Everyone and Everything!
Origin is shutting down its largest coal power station which supplies 25% of its output. The replacement “batteries “ only run for two hours ? And what are they gonna to use to re charge these batteries??
Australia has ample supply of coal and natural gas and yet our energy cost is amount the highest in the developed world , why ?
Mismanagement or equipment and plants too old and lack efficiency? I don’t know the answers but higher energy cost is definitely coming, and spare a thought for those low income families who will have to choose between food on the table vs keeping the home warm in winter ?
Home warm in winter? Try living in a rental in Sydney. Could burn $5 per hour on radiators or save the money and go out for a quick punt every now and again
Energy only adds about 3% to input costs in Aus. Wage growth is likely to be the big factor as demand for higher pay takes hold. Origin isn’t closing down for another 3 years, so I wouldn’t panic just yet. Batteries and renewables are well on the way to add real supply.
Our coal and gas price is high as the price is linked to the international market. No Government has set aside any amount of the product for local use. Watch the price spiral if each way Aldo gets in.
If we have to tighten our belts later it will have an impact on our punting and how frequent we visit the shops. If some shops and girls believe they can increase prices during tough times then you wonder whether there will still be the same demand for FS and massage services.
It might also be shops trying to compete with each other. I had a mamasan message me asking if she should raise her prices since two shops in the same area went up by $10.
This will be unpopular on the forum, but I advised her to do so.
Our energy costs are so high because we are desperately trying to appease the Climate God. It’s because of the subsidies we provide to windmill and solar panel owners. Renewables can only ever be viable if they are pumped up with tax payers money. The economics don’t stack up otherwise. I worked in this sector for a while.
The only ones getting rich from this scam are the investment banks which promote these schemes (like Macquarie), investors in renewables (the Chardonnay socialists like Turnbull, Holmes a Court, Cannon-Brookes etc), land owners who lease out to the energy producers, the constructors, the operators who usually have a 20-30 year supply contract and the Chinese companies which provide the windmills and PV panels. The average family suffers. The poor can’t keep warm in winter. All our manufacturing jobs go to China and India because they have cheap, coal fired electricity there.
The funny thing is that all the volcano eruptions in 2021 would have wiped out all the climate change progress for the past 10 years. Yet no one mentions this! It’s crazy and arrogant to think that we can somehow change the world’s temperature by driving electric cars,
drinking almond milk or by switching to windmill power.
Japan uses our coal to run their power plants. They can do it with less pollution. We should ask the Japanese to do it for us.
I think it's the coal industry that has been fighting to maintain its subsidies, or have them increased, to help them stay afloat over here.
Maybe we should all focus on sex to keep warm and more nudity to keep cool
We're trying to appease the climate change gods AND the 70's hippie gods. Other countries tackling climate change with renewable energy have the huge advantage of being able to supplement the inconsistency of renewables using nuclear energy.
We on the other hand have been seriously gimped by CANE and FOE from way back in the 70's when they managed to wrangle the Gov into agreeing never to use nuclear energy. This is in a country that has abundant supplies of uranium that can be mined with minimal cost, has practically zero natural disasters like earthquakes and volcanoes, not to mention having many many sparsely populated remote areas. From a practical perspective, Australia is probably the best place in the world to build nuclear plants. Yet we cannot do that.
The people behind CANE and FOE ought to be named and shamed for their role in guaranteeing a bleak energy future in Australia. School history curriculums ought to have this information so that every Australian kid knows who is to blame for the tough spot we are now in. At least they will learn that activism for a perceived "good cause" can have wide ranging negative impacts.
Petrol prices began to rise when OPEC reduced supply
Supply chain problems
Immigration falling impacted Labour Supply
Quantitative Easing being rolled back
Inflation is either demand pull or cost push
The RBA is independent of Government when setting interest rates
Stagnant wages over the last decade means consumers rely heavily on credit
Any interest rate rise will hit over leveraged households hard...mortgage defaults will escalate
Interest rates also affect the strength of the currency...this in turn impacts cost of imported goods further fueling domestic price rises
It's a balancing act....and time sensitive
Go and enjoy first. Life is too short. We still have Covid after 2 years. Russian is having fun with the Ukrainian. Next China is having fun with Taiwan. Share market is going down. House prices go through the roof. Dutton and Scomo is talking war with China all most daily.
My advice is to go and have a good fuck if you have the money. As some one say you can't bring all the money to your grave.
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