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It doesn't seem as though any Govt wants to bring on a recession, which really is one of the only ways to reset prices.In a broader sense there's an awful lot going wrong at the moment.
Housing, inflation, energy, wars overseas, industry closing, rising bond yields, wobbly stock markets, full time jobs seem to be in decline, etc.
Some of this is beyond the control of the Australian government but some of it's within its power to deal with if it's up to the task.
I say that having serious doubts that either side is actually up to the task.
The same issues we are having in Australia, seem to be happening in the U.K, maybe the Govts are afraid of an escalation of hostilities if the West has a severe recession.
But I find it strange that the house spiral is being allowed to continue, in the end workers have very little reason to go to work, when all they are doing is treading water or going backwards.
Also now we are seeing a contraction in their wealth, as the stock market shrinks, so does their super, so not only are house prices escalating away, their last hope backup plan of maybe when I retire I can pay off my mortgage with my super, is looking shaky.
Interesting times.
Even the ABC is starting to take note, which tells us it must be getting bad, I'm surprised there hasn't been a halt put on immigration, maybe waiting until closer to the election.
Maddison and her family live in a tent. Her parents say they can't afford the fuel to drive her to school
Sixteen-year-old Maddison's family pays $360 a week to live in a tent after having to move out of their rental home when it went up for sale. The teenager has big dreams, but she worries about her future.
www.abc.net.au
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