Inflation

[divs4ever]

In the top ten inflation gripped scoreboard, we do not even get a mention.
Mick
View attachment 166140

but who fudges the data least , but Australia normally has positive trade balances ( especially if we stop wasting funds on war toys ) that would be some advantage in the wooden spoon race

 

[mullokintyre]

We now have someone else to blame as Michele Bullock, Deputy Governor of the RBA, has now been appointed as Governor.

Frankly, their focus is not on individuals doing it tough. If the economy consists of 1m people and 2,000 go to the wall, that's a poor outcome for those individuals but as long as overall the economy is sound the job is done. They are not going to appoint a courier driver struggling to make ends meet as Governor.

Unfortuantely, it would appear that MS Bullock is no better than her predecessors.
According to Evil Murdoch press

Reserve Bank governor Michele Bullock says the 13 rate hikes over the past 18 months have created a “a lot of political noise and a lot of noise from the general public”.

Speaking at a conference in Hong Kong alongside other senior central bankers from Europe, UK and Asia, Ms Bullock told the audience that 45 per cent of Australians had a mortgage, either over their own home or an investment property.

“And that's created a lot of noise. People are very unhappy,” she said.

“But what I'd like to highlight here is (that) despite that noise, households and businesses in Australia are actually in a pretty good position, their balance sheet pretty good.

I don't know where Ms Bullock gets her data from that allows her to comment on the robustness of household and business balance sheets, but I suspect away from the lofty well paid circles in which she resides, it would be treated with derision.

“Through the pandemic, they built up large savings buffers, and they're largely still intact. Housing prices are rising again, much to everyone's surprise, so that's sort of helping people feel a little bit more wealthy.”

Despite fears that the so-called fixed-rate mortgage “cliff” would send many borrowers to the wall, Ms Bullock said the many households coming off these record low fixed rates were “managing quite well”.

“All the indications from the banks and all we hear from the banks is these, these households are doing fine. So actually, from a financial stability perspective, this all looks rather good,” she said.

Taking economic evidence from the banks can be a little dicey, its iin the interst of the banks to keep rolling the dice with further interest rate hikes.

Mick

 

[divs4ever]

I don't know where Ms Bullock gets her data from that allows her to comment on the robustness of household and business balance sheets, but I suspect away from the lofty well paid circles in which she resides, it would be treated with derision.

disdain comes to mind , but heck am only talking to struggling farmers and the odd manufacturer who exports his products internationally

 

[sptrawler]

If you benefit from it then it's understandable that you want to keep it.

But looking at it from the point of view of a government housing policy, the justification for it was to encourage investment in NEW housing and provide more affordable housing by increasing supply.

As a housing policy it has clearly failed , being that Australian housing is one of the world's most unaffordable and the policy costs the taxpayers billions of dollars a year which could be invested by governments into affordable housing.

So clearly as a housing policy it's a dog and is now just another way for a certain class of investors to reduce their taxable income and get a discount on capital gains tax as well.

In other words, an upper middle class tax rort.

Kohler sums it up well.
Now financial success is largely a function of geography, not accomplishment

Australian housing wealth is meaningless, destructive and fundamentally changing our society | Alan Kohler

High-priced homes do not create wealth, Alan Kohler says, they redistribute it. Now financial success is largely a function of geography, not accomplishment

www.theguardian.com

 

[farmerge]

disdain comes to mind , but heck am only talking to struggling farmers and the odd manufacturer who exports his products internationally

I wonder if the organ grinder's monkey has ever had a conversational with an average Joe to actually find out first hand what Struggle Street is like. Unlike the leafy burbs where she resides.

 

[divs4ever]

I wonder if the organ grinder's monkey has ever had a conversational with an average Joe to actually find out first hand what Struggle Street is like. Unlike the leafy burbs where she resides.

well i grew ( from three to my early twenties ) on the Western fringes of Brisbane , now my household didn't have many bells ( or whistles )

with some home-made furniture , some pre-owned , but some of the neighbours were far worse than us , some houses didn't even have a rear wall ( backed onto bushland ) just blankets/curtains

all million-dollar houses now after it was 'gentrified '

 

[farmerge]

well i grew ( from three to my early twenties ) on the Western fringes of Brisbane , now my household didn't have many bells ( or whistles )

with some home-made furniture , some pre-owned , but some of the neighbours were far worse than us , some houses didn't even have a rear wall ( backed onto bushland ) just blankets/curtains

all million-dollar houses now after it was 'gentrified '

I thnk that anyone growing up in the late 40s and 1950s probably now this kind of story all too well.
I grew up during the 50s and my parents certainly struggled for many years. There wasn't much in the way of surplus money but we all made do and lived a pretty healthy existence, growing most of the vegetables and and had some chooks. Things for some have certainly changed, but sadly for others that era just could be re-visiting again.

 

[divs4ever]

I thnk that anyone growing up in the late 40s and 1950s probably now this kind of story all too well.
I grew up during the 50s and my parents certainly struggled for many years. There wasn't much in the way of surplus money but we all made do and lived a pretty healthy existence, growing most of the vegetables and and had some chooks. Things for some have certainly changed, but sadly for others that era just could be re-visiting again.

might be more than a visit , might be an entire era , as infrastructure will not be upgraded in a timely manner

 

[over9k]

It's almost as if it's all deliberate somehow.

 

[qldfrog]

might be more than a visit , might be an entire era , as infrastructure will not be upgraded in a timely manner

Always remember that what prevents poorer people to do as in the 50s is regulation.
You can still find a block at $300k and a shed for $50k
A family can have a roof on its head for $350k easily...but..
They are prevented to live in it and set it up by regulations and government interventions which apply similarly in a capital city CBD and 200km from broken Hill/ woopwoop
Only to complain later about mc mansions and promote trailer trash with lipstick..sorry tinny houses living...
So instead of unsighty fibros, we got homelessness.
A great achievement of always more government intervention on one of the least populated continent on earth

 

[over9k]

The fact that immigration levels are running at such a level as to require the building of the entire city of canberra or the gold coast every 12 months is what's causing the strain.

 

[farmerge]

The fact that immigration levels are running at such a level as to require the building of the entire city of canberra or the gold coast every 12 months is what's causing the strain.

And when will the powers that be finally wake up to that fact, not enough of anything for a growing population which is mostly in the coastal fringes and suburbia.

 

[over9k]

And when will the powers that be finally wake up to that fact, not enough of anything for a growing population which is mostly in the coastal fringes and suburbia.

It's not an accident.

We've been over this guys...

 

[over9k]

It's that gap between the end of 07 and about now that we basically never want to see ever again.

Problem is that during that time countries (and people) plunged themselves into so much debt that avoiding that negative area is going to come at tremendous cost.

The RBA is miles behind the curve on this one.

 

[mullokintyre]

Australias inflation falling.
FromEvil Murdoch Press

Inflation has decelerated to 4.9 per cent in the year to October, from 5.6 per cent in the month before, ahead of the Reserve Bank’s last board meeting of the year on Tuesday.
The welcome and sharp decline in the annual growth rate of consumer prices comes after surging energy and fuel prices drove annual inflation higher in August and September.

The latest figures from the Australian Bureau of Statistics come after the RBA hiked rates to 4.35 per cent on Melbourne Cup Day, citing a growing concern that consumer price growth was proving stickier than hoped.

RBA governor Michele Bullock said on Tuesday that despite the “noise” generated by the public and politicians after 13 rate hikes, that “households and businesses in Australia are actually in a pretty good position”.

Investors are pricing in a 10 per cent chance of another rate rise next week, and economists believe that any further tightening is more likely to come in February.

Ms Bullock has said that the drivers of higher inflation are now “homegrown”, rather than coming from overseas developments, such as jumps in global oil prices.

Mick

 

[over9k]

U.S growth comes in at 5.2% vs 5.0 estimated. Still no recession/contraction concerns so more rate rises still not off the table. PCE up 3.6 vs 3.5 estimated.

 

[Belli]

A number of forum members may find this interesting. A little different from the CPI.

Selected Living Cost Indexes, Australia, June 2024

Living Cost Indexes (LCIs) measures the price change of goods and services and its effect on living expenses of selected household types

www.abs.gov.au

 

[over9k]

Gold just cracked a new record. Zoom zoom!

 

[moXJO]

Gold just cracked a new record. Zoom zoom!

COME ON SILVER!!

 

[sptrawler]

It's not an accident.

We've been over this guys...

Nailed it, the way to fast track productivity, is to get the workers hungry for work, any work just to make ends meet.
In the mid 1970's at the steel works guys were in tears if they couldn't get an overtime shift, these days you struggle to get them in for the Mon-Fri shifts.