Inflation

[qldfrog]

Oh Mr Frog you are being so cynical.

I get a second life : good rain on the roof at long last ,so expect the worst as I am on rain gauge steroids

 

[divs4ever]

some rain here but do not expect the local villagers to arrive here on rafts boats and floaties

but saves me putting on the sprinklers in the close paddocks ( the reduce risks if a runaway fire )

might help the grapes as well

 

[Value Collector]

No sensible person would compare Australian and US taxation systems.
Unlike here in OZ, the US states are allowed to raise income taxes as well as sale s taxes, and they vary enormously from state to state.
The states can even create a wealth tax as California is planning to, and there is nothing in their constitution to prevent it.
Mick

Of course you can compare taxation systems of different countries, just because they are different doesn’t mean you can’t assess their total affect.

Especially when looking at how one particular thing like investment earnings are handled I can not see a problem.

But, my main point was simply that it’s often said that Australia should get rid of either cap gains discount or franking credits because others don’t use them.

I simply brought up the USA as an example to show that even though they don’t have exactly the same cap gain discount and franking credits, they still have an alternative system which has the same effect.

————————

The USA system and the Australian system aren’t actually that different.

USA has sales tax - Australia has Gst
USA has income Tax - Australia has income tax
(USA income tax is just broken up between state and federal)
USA has company tax - Australia has company tax.

 

[over9k]

Worth the 12 minutes. This dude is absolutely correct about this industry and what it's moving where being a canary in the coal mine.

 

[Telamelo]

‘Ridiculous’: RBA governor Michele Bullock slammed for blaming inflation on haircuts and dentist trips​

https://www.news.com.au/finance/economy/interest-rates/ridiculous-rba-governor-michele-bullock-slammed-for-blaming-inflation-on-haircuts-and-dentist-trips/news-story/47cefde0d72eaf4a2d954316946c0c47

 

[divs4ever]

‘Ridiculous’: RBA governor Michele Bullock slammed for blaming inflation on haircuts and dentist trips​

https://www.news.com.au/finance/economy/interest-rates/ridiculous-rba-governor-michele-bullock-slammed-for-blaming-inflation-on-haircuts-and-dentist-trips/news-story/47cefde0d72eaf4a2d954316946c0c47

probably no surprise given all the kicks-in-the-teeth the citizens are being given by Canberra and RBA whilst haircuts aplenty from councils , power companies and insurers

but keep going blame it on the cash-cow ( the tax-payer )

 

[Telamelo]

probably no surprise given all the kicks-in-the-teeth the citizens are being given by Canberra and RBA whilst haircuts aplenty from councils , power companies and insurers

but keep going blame it on the cash-cow ( the tax-payer )

How expensive is getting a men's haircut these days!? like used to be $10-$15 at most now they're charging $35+ or more! don't even mention Dentists lol

 

[divs4ever]

How expensive is getting a men's haircut these days!? like used to be $10-$15 at most now they're charging $35+ or more! don't even mention Dentists lol

yes don't mention dentists ( i have a top-up order in for extra PSQ , today ) , BTW i had all my teeth removed at 21 ( years old ) unpleasant then but saved a fortune later

haircuts ??

my hair chose suicide i see not reason to spend cash to hurry up the process ( and since i am retired , i don't have to look good for job interviews )

 

[qldfrog]

How expensive is getting a men's haircut these days!? like used to be $10-$15 at most now they're charging $35+ or more! don't even mention Dentists lol

Obviously my home insurance jumps by 50%. Or $2.5k ...would have matched the increase on more than a 100 haircuts a year.
For those knowing me and my bold patch,you would agree a haircut every 3 days would be quite a challenge

 

[farmerge]

‘Ridiculous’: RBA governor Michele Bullock slammed for blaming inflation on haircuts and dentist trips​

https://www.news.com.au/finance/economy/interest-rates/ridiculous-rba-governor-michele-bullock-slammed-for-blaming-inflation-on-haircuts-and-dentist-trips/news-story/47cefde0d72eaf4a2d954316946c0c47

Wow we have we got the smartest people in charge here.

 

[farmerge]

Wow we have we got the smartest people in charge here.

Would appear that the organ grinder's monkey is calling the shots. The only difference between her and the monkey is the pay packet The monkey gets peanuts and she has to use a wheelbarrow to move her salary.

 

[Telamelo]

Obviously my home insurance jumps by 50%. Or $2.5k ...would have matched the increase on more than a 100 haircuts a year.
For those knowing me and my bold patch,you would agree a haircut every 3 days would be quite a challenge

Yeah too right about the significant hike in insurance premiums - way way above so called CPI figures

 

[Belli]

Yeah too right about the significant hike in insurance premiums - way way above so called CPI figures

The last figures I saw, which was quite a while ago, around $0.20 in the $1 went on re-insurance. If the re-insurers reassess risk and increase prices as a result or reduce their exposure to this market, it's going to cost the insurer and so you and me. That's one factor which is not fully appreciated by many and I get why as it's a very boring subject.

This is from Hannover Re about its losses in property and casualty reinsurance component due to various events and across a number of countries.

"The largest individual losses in the first nine months included the devastating earthquake in Türkiye and Syria at the start of the year with net expenditure of EUR 273 million. Severe storms that affected northern Italy in the summer at a cost of EUR 132 million and wildfires in Hawaii amounting to EUR 87 million were further notable events. The major earthquake in Morocco resulted in additional losses of EUR 70 million. Tropical Cyclone Gabrielle in New Zealand and Hurricane Idalia in the United States took a further toll in amounts of EUR 66 million and EUR 55 million respectively. Additional costs were incurred in amounts of EUR 46 million in connection with unrest in France and EUR 38 million from May storms in Italy."

Funny thing about re-insurance. If it weren't in existence, society would essentially grind to a halt. No one business or individual could afford to self-insure for the range of risks. Back in the day the term for it was Environmental Risk.

For a bit of fun (?) reading go back and read about the Names when it went wrong for them at Lloyd's. It was around the time of the GFC.

 

[sptrawler]

An inconvenient truth, panic is setting in, the Govt saying "look into my eyes, look into my eyes, repeat after me".

It is definitely home grown and still growing, we are nurturing it, nibble up the wages, crank up the costs, feed in the migrants, nibble up the tax base, slowly slowly milk the taxpayer.

Of course the hairdressers, dentists, eating out etc are going up, their costs are going up, they aren't there to provide a public service.

PM insists inflation is globally-driven, RBA boss says it's homegrown

Just a day after RBA Governor Michele Bullock said inflation in Australia was largely "homegrown", Prime Minster Anthony Albanese is remaining adamant it's a global phenomenon.

www.abc.net.au

From the article:
Just a day after the head of the Reserve Bank said inflation in Australia was largely "homegrown", Prime Minster Anthony Albanese has remained adamant it is a global phenomenon.
Addressing economists on Wednesday evening, RBA Governor Michele Bullock said inflation was increasingly driven by domestic services, not imported goods.

"The remaining inflation challenge we are dealing with is increasingly homegrown and demand driven," she argued.

Speaking on Thursday, Mr Albanese avoided adopting similar language.

He said his government had put "downward pressure" on living costs like childcare, energy bills and medicine costs.

Ms Bullock last night said the early driver of inflation was supply chains struggling amid the COVID-19 pandemic and worsened following Russia's invasion of Ukraine.

But on Wednesday she said there were several signs that inflation was domestically-driven and at risk of remaining elevated.

She said price rises were not just isolated to the cost of petrol, electricity and rent.

"Hairdressers and dentists, dining out, sporting and other recreational activities – the prices of all these services are rising strongly," Ms Bullock said.

"This reflects domestic economic conditions and is an indication that aggregate demand is sufficiently greater than aggregate supply to sustain these price increases."

 

[over9k]

So she's just signed her own death warrant.

They'll be figuring out how to get rid of her already.

 

[frugal.rock]

Put her on a bus with a and the bus can't slow down under 50 km/h or she gets fired.

 

[Smurf1976]

haircuts aplenty from councils , power companies and insurers

Now consider what councils, energy, insurers are themselves spending money on and it all gets rather circular.

Councils for example will definitely be spending on wages, electricity, fuel, insurance, etc so the others putting prices up means councils do likewise with rates.

Now consider that the insurers are ultimately paying out for tradies and materials. Now the tradie has higher household bills so raises their prices, the material supplier has higher costs so raises their prices.

It all becomes a spiral where everyone's chasing higher costs trying to recover them.

I'm firmly with the RBA on this one. Inflation seems fairly entrenched - pretty much everyone's chasing inflation that's already occurred, trying to raise their own prices or wages to catch up.

 

[over9k]

The only thing I'd like to inflate with my local council is the yield of the atomic bomb I want to detonate on it.

 

[mullokintyre]

In most countries, CB's raise interest to curb rising inflation.
So, if one looks at the following article, one might reasonably expect that inflation in falling in the majority of countries.
From Business Insider

Central banks around the world have been hiking interest rates relentlessly in the last 18 months to tame inflation — but some are now cutting them.

For the first time since January 2021, there are more central banks cutting rates than those hiking them, according to a report released by Deutsche Bank research strategist Jim Reid. Business Insider viewed the report, which was released on Tuesday.

The trend started last month, with 10 central banks cutting rates — outnumbering those that hiked rates in the same time period, according to Reid's analysis of 81 central banks around the world.

The trend continued this month with five central banks — including include those in Brazil and Peru — cutting rates so far.

While major central banks like the US Federal Reserve and the European Central Bank are keeping rates steady right now, there are bets that they, too, will start to hike rates in the months ahead.

Swiss bank UBS, for one, said last week it's expecting the Fed to slash rates as the US economy enters a recession around the second or third quarter of next year.

A global trend in interest rate cuts would bring relief to debtors as it would make the cost of borrowing for anything from mortgages to credit cards lower.

At one level, one might think that the Governments position that inflationary pressures are largely external would hold true if inflation is falling at a global level.
However, one might also suggest that the massive post covid money supply flood from pretty much every country on earth was a major driver, and Australia was right up there with the bst of them in chucking out free money.
If inflation persists in Australia as other countries see it falling, the Fed guvmints positon is blown out of the water.
Mick

 

[mullokintyre]

In the top ten inflation gripped scoreboard, we do not even get a mention.
Mick