Country Lad
Off into the sunset
- Joined
- 11 July 2005
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That's a long way from the $1.80/Gj in a gas supply agreement contract I was involved in. Mind you, that was 2002 when coal seam gas was in its infancy.
February 2022 = $39.11
Ok so I might have been absolutely raging about this for the last month after I dumped 6 figures into it only to see it not only bust correlation but actually move in the opposite direction to the 10 year but shhhh don't tell anyoneIt's been well & truly risk-on in response to the news, with crypto in particular running HARD:
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So I'm hoping that these two join back together at some point:
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As you can see there was a beautiful correlation up until the new year, I'd bet on yields rising and then it busted correlation
I remember when Queensland gas was proving up so much gas that they literally could not sell it all because the domestic market couldn’t absorb it, so they started building their own gas fired power stations to convert it to electricity just so they could sell it.That's a long way from the $1.80/Gj in a gas supply agreement contract I was involved in. Mind you, that was 2002 when coal seam gas was in its infancy.
Not really, inflation and taxes is always likely to cause their principle to take a bigger hit than the interest they receive can offset anyone with investments in fixed dollar amounts should not see inflation as their friend.Retired people reliant on interest are winners, people with loans getting more cash.
There are a lot of pensioners who may get .5% on their money who may soon get 1%. I know they are financially illiterate but it will make a big difference to them.Not really, inflation and taxes is always likely to cause their principle to take a bigger hit than the interest they receive can offset anyone with investments in fixed dollar amounts should not see inflation as their friend.
The people with the least concern of inflation are the ones with investments where the revenue rises with inflation, and the capital value of the assets goes up with inflation.
even then the capital value increase will cause a tax hit, due to the capital gains tax taxing the rise in value caused by inflation, but atleast that is discounted by 50% if it’s a long term investment, which makes it much better than a cash investment threat stays the same.
You are spot on Knobby, my MIL has always had a term deposit, when the FIL died she asked me for a bit of guidance. I suggested she pull out her $100,000 term deposit in CBA and buy 10,000 CBA shares, well she still has her CBA term deposit many years later.There are a lot of pensioners who may get .5% on their money who may soon get 1%. I know they are financially illiterate but it will make a big difference to them.
If inflation rises 1% from 3% to 4%, the buying power of their capital base is reduced by far more than the additional 0.5% of income they will receive.There are a lot of pensioners who may get .5% on their money who may soon get 1%. I know they are financially illiterate but it will make a big difference to them.
However they are on a pension which rises with inflation and they are psychologically incapable of spending their capital.If inflation rises 1% from 3% to 4%, the buying power of their capital base is reduced by far more than the additional 0.5% of income they will receive.
Especially when that additional 0.5% of income is taxed.
of course they will feel good, because the income numbers will be higher than last year, but over all they are worse off, their $100K or what ever amount now has far less purchasing power, and the additional income didn’t come close to offsetting it’s erosion.
Again you are spot on Knobby, referring back to the MIL, she qualified for the age pension years ago, but she refuses to apply and now she is 89 years old I don't think she will.However they are on a pension which rises with inflation and they are psychologically incapable of spending their capital.
Do not expect this attitude to grow...Again you are spot on Knobby, referring back to the MIL, she qualified for the age pension years ago, but she refuses to apply and now she is 89 years old I don't think she will.
She would rather live on bread and jam than apply for the pension, some people are like that, she manages on $700/fortnight super from the FIL old Gov super and the term deposit.
I guess if they are never going to spend their capital, and intend to die with it, then a system higher inflation and interest rates might be good for them because they are technically eating their capital without knowing it, because they are spending the interest which is intended to offset the principle loss.However they are on a pension which rises with inflation and they are psychologically incapable of spending their capital.
unless things have changed since mum was on a pension ( there was OFFICIALLY inflation back then ) , those increases are based on CPI which is late and less than the increases on the cost rises currently ... a bit like chasing the bread vendor for crumbsHowever they are on a pension which rises with inflation and they are psychologically incapable of spending their capital.
She is excellent, long watch though.If you have time -
Inflation, Interest Rates, Retail Sales, CryptoARK CEO/CIO, Cathie Wood, weighs in on the workweek drop, the 90s vs. today, inflation, interest rates, and more. As always, she also discusses fiscal policy, monetary policy, the economy, market signals, economic indicators, and innovation.
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