She probably feels pretty safe, at least for now.Michele needs to be careful, she is speaking outside the narrative, Phil Lowe did that and look what happened to him.
I could go into examples but in short the basic problem is a "big and dumb" approach is being applied.Now don't get me wrong, most rules exist for a damn good reason, but if someone with several decades' experience/knowledge is telling you that the rule is wrong, you should listen to them.
This is also a serious issue. It comes from rote learning. Raw memorisation of information. Knowing the dots without being able to connect them.the vast majority of the workforce (especially in transaction roles) dont understand the why behind why they actually do something.
Until the next federal elections.And how long will the rebates last?
One year, two years. forever?
Mick
Inflation comes in at 3.5% thanks to energy rebates.
I fail to understand how the government giving money to citizens to help with energy bills somehow reduces inflation.
For those Busineses that do not qualify for the small business rebate, the costs are still going up.
And of course, the threshold for a busiess to receive the rabate varies from state to state.
View attachment 183296
And how long will the rebates last?
One year, two years. forever?
The market has seen through this crap, and immediately boosted the AUD/USD pair so that it went through the 68 cent barrier.
Mick
Here is a representation of the electricity prices with and without the subsidies.Inflation comes in at 3.5% thanks to energy rebates.
I fail to understand how the government giving money to citizens to help with energy bills somehow reduces inflation.
For those Busineses that do not qualify for the small business rebate, the costs are still going up.
And of course, the threshold for a busiess to receive the rabate varies from state to state.
View attachment 183296
And how long will the rebates last?
One year, two years. forever?
The market has seen through this crap, and immediately boosted the AUD/USD pair so that it went through the 68 cent barrier.
Mick
The subsidies are real, the effect on inflation is real. The month on month inflation rate was 0%. The dollar went up and then dropped back when this was realised.Here is a representation of the electricity prices with and without the subsidies.
Mick
View attachment 183318
Just quoting this post re: the discussion around electricity subsidiesFor clarification, this is an excellent example of my previous posts re: interest rate rises being a very blunt instrument and actually reducing supply somewhat as well.
Previously, if you could borrow the money at, say, 1%, then if you had an investment in zinc that was going to yield you, say, 5%, then the investment makes sense and would go ahead and thus increase the supply of zinc.
But if you can yield 6% just sticking the money in the bank then investing it in a zinc factory would be moronic. Even if the yield was the same, the return in a savings account (so to speak) is risk free, so you still wouldn't do it.
It's in this way that while a rate rise will reduce demand for stuff, it also makes at least some supply side investments no longer viable even if we assumed demand for the product remained the same.
It's in this way that you can see how a supply side restriction is basically the nightmare scenario for policy makers because the only way to improve it via monetary policy is to keep interest rates low enough for, say, a new zinc factory to be viable, and that means that your demand side remains too high.
The only way to fix it is with some kind of subsidisation and that money has to come from the tax pool, so either taxes increase and everybody gets pinched that way or they're diverted from something else the government is funding and that goes (or has to be paid for out of your own pocket) instead.
The only other option is for the government to borrow the money to fund the subsidies (like it's been doing for 15 years) and that particular piper must be paid eventually.
Households and small business are both now being directly subsidised.Here is a representation of the electricity prices with and without the subsidies.
hmmm
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