over9k
So I didn't tell my wife, but I...
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The number fudging will continue until the data improves.
As i had a quick look at the budget, I expect local inflation to go on:
Cash thrown away plus money invested in non productivity increasing tools
If you could get 1kw of power thru gas or coal for xcents and you need to throw 27 billions of so to get that same 1kw labelled Green, one does not need to be Einstein to realise that the cost of power is increasing
Funny how the proponent of cheap if not free renewable power..yes..it has been sold like that, feel obliged to pile cash in cash to soften the electric bill hits...From the snippets I'm reading while on holidays, it sounds like Jombo is still insulating the plebs from the new inflated cost reality, that they have to face sooner or later.
Meanwhile the real issue of property prices keep spiralling away, extending the gap between the haves and have nots, it would appear that our society will end up very much like the U.S. in the not too distant future ay this rate.
RE prices stable if not down a bit, and some salaries jumping higher, housing is cheaper now than a year ago vs most incomes ..From the snippets I'm reading while on holidays, it sounds like Jombo is still insulating the plebs from the new inflated cost reality, that they have to face sooner or later.
Meanwhile the real issue of property prices keep spiralling away, extending the gap between the haves and have nots, it would appear that our society will end up very much like the U.S. in the not too distant future ay this rate.
CPI at 0.3 vs 0.4 estimated. Also entirely predictable reaction.PPI up 0.5% month on month vs 0.3% estimated. Exact reaction(s) to everything you'd expect.
Hire a businessman as a prime minister?UK inflation data misses estimates and NZ holds at 5.5%.
NZ is smart. Aus should be doing what NZ is.
Or change party to ensure ideology / fanatism is less of a factor?Hire a businessman as a prime minister?
Unfortunately in Australia we can only choose from a rotten fish or a rotted fish, or a rotting fish.Or change party to ensure ideology / fanatism is less of a factor?
Raising rates to 5.5 and keeping them thereHire a businessman as a prime minister?
Do we have a party in Australia that’s not based on Ideology and fanaticism ?Or change party to ensure ideology / fanatism is less of a factor?
The government’s economic boost will not stop retrenchments in many enterprises during the next six months.
We will see a rare convergence of forces – higher revenue and profits plus widespread staff retrenchments.
Telstra fired the nationwide retrenchment starter’s gun this week.
Retailers in Australia, the US and Europe are all finding current trading much tougher and that is being reflected in share prices.
But don’t be surprised if there is a rise in the Australian base profitability in coming months.
We are looking at a major injection of spending power into the economy starting with the July 1 tax cuts, which are spread across the board.
Then comes a likely increase in base wages as a result of the national wage hearing and thirdly, a large crop of baby boomers are set to hit the cash withdrawal entitlement age and are now able tap to their superannuation cash either via a pension or lump sum.
The overwhelming reader response to my superannuation measures impact commentary this week indicates that community confidence in superannuation is declining sharply as a result of government actions. The cash withdrawal rate may accelerate.
To that we add a government that is spraying money around to keep the economy strong and hold back the cost of living leading up to next year’s election.
The power price subsidy is the best example.
Obviously, those under rent and mortgage stress will use much of their additional cash to keep their head above water but those — often in the older age brackets – who are not stressed will spend chunks of the extra money hitting their bank accounts.
But then come the retrenchments, which are set to be accelerated by the 700 pages of government industrial relations legislation.
On Thursday, I set out in simple terms how at least part of the IR measures will transform the way enterprises big and small are managed. It will lower productivity and increase costs.
These future government blows come as the costs of doing business are continuing to rise relentlessly and companies will try and tap the extra money in the system with higher prices.
In normal times, when there is the possibility of stronger trading, enterprises hold on to their staff.
Many will follow the traditional strategy, but the current tougher trading environment is causing a great many companies to look at a restructure of their labour force, involving retrenchments.
The years of labour shortages have often resulted in over-hiring and overpayments.
But that retrenchment impetus now has an extra dimension because the IR legislation will give unions far more power over the management of enterprises.
Telstra’s major restructuring this week was announced without detailed consultation with the unions.
Such actions may be difficult after August 26, when the IR Act comes into force, but in a year’s time, it will be impossible as the legislation shifts control of enterprises in the direction of unions.
Companies that believe they will need to restructure will need to follow the Telstra example and begin that restructuring process before August 26 and execute it swiftly while they still have control over the workforce.
Those that don’t act quickly may never be able to gain the efficiencies.
Accordingly, in the coming half year many of those enterprises benefiting from the cash stimulation will not maximise their sales returns because they are reducing their labour force. But this will often maximise the profits.
The Reserve Bank will, of course, be monitoring to what extent the cash injection boosts inflation in coming months and that will play a big role in their interest rate decisions.
Most economists expect that there will be an interest rate cut towards the end of 2024.
But by that time the horrors of the IR legislation and the lower productivity it promises will be very apparent.
Australia is the only developed country in the world that has taken steps to deliberately reduce productivity in the current environment.
The IR legislation may take a while to kick in, but longer term we are set to be a much higher-cost nation, with obvious implications for long term inflation.
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