Alot of people get confused about what Government means by unemployment rate and what joe q public thinks it means and most people get confused thinking the CPI (Consumer Price Index) is the same as inflation. The numbers produced by Government are valid if you have an understanding of what they are eg check out what CPI actually measures compared to where you spend your money.
Preparing for a depression in Australia
- Thread starter archilles
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Alot of people get confused about what Government means by unemployment rate and what joe q public thinks it means and most people get confused thinking the CPI (Consumer Price Index) is the same as inflation. The numbers produced by Government are valid if you have an understanding of what they are eg check out what CPI actually measures compared to where you spend your money.
At least you are doing better than most so far by keeping your eyes and ears open.
From what I gather by listening to people around me is that "the masses" seem to think the gubbermint will take care of us - maybe even keep giving out cash bonuses indefinitely
I really hope you dont have sleepless nights because really nobody knows for sure what is going to happen. If things get really bad we need to be prepared
by getting rid of any credit card debt, paying extra off the mortgage while interest rates are low etc.... If you need more cash to do those things maybe look at selling any toys you dont really need eg: flash car, boat, jetski or whatever. Also try and cut living costs like food and electricity use to generate more cash.
All we can do is be prepared by having a bit extra up our sleeve. A friend of mine works as a civilian for the defence dept. and he has taken on another job nightpacking at Coles to tip it into his large mortgage.
Im a small business owner in what I think is a reasonably recession proof business. We were going to expand (husband and I) by employing someone else because the business is taking off, but will not do that just now, we will work a little harder ourselves. We get by paying ourselves $60k combined per year plus whatever benefits we get out of the business. We live in the outback without many comforts. I would love to move to civilisation but realise we are better off here for now - got to get 2 kids through school. Only owe $100k on a house that would cost $400k to
replace. House needs some work on it but hey its a house!
My point in rambling on about myself is we have to make the best of our situation and I guess if you need to get an extra job or reduce your living standard a bit to sleep better at night then thats what you should look at doing.
All the best to you.
From what I gather by listening to people around me is that "the masses" seem to think the gubbermint will take care of us - maybe even keep giving out cash bonuses indefinitely
I really hope you dont have sleepless nights because really nobody knows for sure what is going to happen. If things get really bad we need to be prepared
by getting rid of any credit card debt, paying extra off the mortgage while interest rates are low etc.... If you need more cash to do those things maybe look at selling any toys you dont really need eg: flash car, boat, jetski or whatever. Also try and cut living costs like food and electricity use to generate more cash.
All we can do is be prepared by having a bit extra up our sleeve. A friend of mine works as a civilian for the defence dept. and he has taken on another job nightpacking at Coles to tip it into his large mortgage.
Im a small business owner in what I think is a reasonably recession proof business. We were going to expand (husband and I) by employing someone else because the business is taking off, but will not do that just now, we will work a little harder ourselves. We get by paying ourselves $60k combined per year plus whatever benefits we get out of the business.
We live in the outback without many comforts. I would love to move to civilisation but realise we are better off here for now - got to get 2 kids through school. Only owe $100k on a house that would cost $400k toreplace. House needs some work on it but hey its a house!
My point in rambling on about myself is we have to make the best of our situation and I guess if you need to get an extra job or reduce your living standard a bit to sleep better at night then thats what you should look at doing.
All the best to you.
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Yes it was not long ago that OUR GOVERNMENT was telling us IF we had a recession coming it would be light years away, MY HOW TIME FLIES.
http://blogs.theaustralian.news.com...comments/two_or_not_two_that_is_the_question/
This article from November sums our goverment's predictions. They were so wrong then, and even more incorrect now. The IMF is not much better.
Hey archilles
Now you got it! I dont understand why so many people have an entitlement mentality. Nobody is entitled to a fully furnished, stocked with all the toys McMansion unless they have the means to pay for it out of their own pocket.
All you need to do to put things into perspective is look at third world countries that would be grateful for clean drinking water and food for the kids.
I realise that doesnt help anyone out of a financial pickle but the honest question to be asking ourselves is "Who put me in a jar and pickled me"?
It is about needs and not wants for anyone feeling nervous.
Now you got it! I dont understand why so many people have an entitlement mentality. Nobody is entitled to a fully furnished, stocked with all the toys McMansion unless they have the means to pay for it out of their own pocket.
All you need to do to put things into perspective is look at third world countries that would be grateful for clean drinking water and food for the kids.
I realise that doesnt help anyone out of a financial pickle but the honest question to be asking ourselves is "Who put me in a jar and pickled me"?
It is about needs and not wants for anyone feeling nervous.
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People need to stop relying on the government. They cant be providing hand outs, baby bonuses, etc forever. None of this was around 50 yrs ago but people survived.
And those that complain "o but the cost of living has gone up, so we need it" need to have a look around at their own house. If you have a place with an extra bedroom, a plasma screen tv, recently got your bathroom renovated, etc yet still complain you dont have enough, the answer is simple- You are living beyond your means.
And those that complain "o but the cost of living has gone up, so we need it" need to have a look around at their own house. If you have a place with an extra bedroom, a plasma screen tv, recently got your bathroom renovated, etc yet still complain you dont have enough, the answer is simple- You are living beyond your means.
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Hey, I got plenty of both, and kangaroos - the food of the depression?
It's ironic that we need to continually consume more to keep the jalopy recycling all those freshly printed dollars. It's also ironic that if we stop consuming then the whole system comes to a standstill.
The fact is, we have been artificially consuming the future based on easy credit that is beyond most peoples means ie proportion of wage to pay it back is amongst the highest in the world. And until we catch up to that point of consumption equilibrium then the system will contract ie a recession in a negative self feeding inward spiral.
Liquidate debts before the stampede begins?
Actually there were government handouts then milk and Golden syrup to name two This is where the phrase cockies joy originated.
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I guess its a different type of hand out:
50 yrs ago - Hand out = Food
2009 - hand out = Plasma Screen Tv
One is for survival the other is because of greed
Knobby22
Mmmmmm 2nd breakfast
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Uncle Festivus, Achilles (and others).
USA and GBR are now printing money out of thin air to pay national debt.
Surely this will cause high inflation which will reduce the effect of debt but increase interest rates (eventually). Therefore you may be better to hold assets as a hedge against this increased money supply.
I would hold onto investment properties and houses for dear life but obviously if you lose your job then all bets are off. Achilles, maybe you can turn your house into an old style boarding house and share it with lots of single mums and unemployed men.
Knobby22
Glen48
Money can't buy Poverty
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Sell your house because they are coming down all over the World, NZ just been hit hard, Counties in USA are selling their streets to raise money after having sold their Fire stations etc.
In a depression every one goes for gold like they are doing now.
I sold my house Sept.08 and now 35K ahead and Gold has given me 7k this week and hoping for more over the w/end.
I would decide quickly if it is not to late already.
In a depression every one goes for gold like they are doing now.
I sold my house Sept.08 and now 35K ahead and Gold has given me 7k this week and hoping for more over the w/end.
I would decide quickly if it is not to late already.
Just wondering where you get your information from ... or are you just guessing. Show me where this is fact???
Its funny to see how when things are going well, everyone talks like money grows on trees and when things go the other way the trees are stealing the money back from our pockets and its armageddon .. lol
its actually quite funny, people get so caught up in the emotion they miss whats actually happening around them and be positioning themselves for the next upswing. History has a tendancy to repeat itself ... lol
Is now not the best time possibly ever to fix a loan at under 4% for the next 30 years?? Think about it ... its effectivly free money!
i like
INFLATION - I still don't fully understand how printing money out of thin air creates inflation ? I realise that once more money is printed there is more money circulating in the economy BUT what part of this process
causes prices across the board to skyrocket ? especially when people aren't spending as much ?
I agree zt, I think if you havent gone and pickled yourself in debt and dont lose your job and can service what debt you have, then just pull the reins in and sit tight. That is my situation anyhow as well as working my business to the max for more cash flow.
The scariest scenario to me is mum and dad both working fulltime just to pay off the mortgage on the McMansion - there is a chance one of them will lose their job.
I do see what other people with more nouse than me are saying: why service debt on assets that may fall in value eg: houses.
But surely the cycle will begin all over again even if it takes a long time?
Ive been given a lot to think about here - thanks!
Glen48
Money can't buy Poverty
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There is talk of working until 67 before retiring....if you have a job...of course if you are a Storm victim you keep working long after you are Dead.
Toyota have 150 Acres of cars in USA to sell, other car co.the same and other companies who produce will have a back log so no inflation for awhile.
Toyota have 150 Acres of cars in USA to sell, other car co.the same and other companies who produce will have a back log so no inflation for awhile.
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In the good times people would have a nice big superannuation to help them retire at say 55-60. These people now may have to work longer (the top end) all the while we have school leavers (the bottom end) looking for those very jobs that would have been made available by retirees? The employment band is getting bigger (more people looking for less jobs), people start to sell assets, first slowly in the initial stages then it becomes a self fulfilling down turn. Deflation feeds on itself and gets a life of it's own, so the first ones out make the most money or keep most of their wealth intact?
The banks literally force the new money on you to get their share of fees, interest etc and most people oblige by buying flat screen tv's or houses without realising that what they are buying are depreciating assets due to inflation of the money supply.
Deflation is the consumers friend, the banks enemy?
