Where will all the money come from to fund the stimulus?

[satanoperca]

The fat lady hasn't begun to sing.

 

[wayneL]

They won't have the balls to raise taxes, 'cept maybe GST.

So will be paid for by inflation... perhaps.

 

[macca]

The fat lady hasn't begun to sing.

Unfortunately, you are right, the next two reporting seasons could be very nasty for most stocks

 

[macca]

They won't have the balls to raise taxes, 'cept maybe GST.

So will be paid for by inflation... perhaps.

Bracket creep for the next 10 years and a reduction in services.

Perhaps they could have a 2030 love in and invite all the movie stars like Kevin did, that was a huge help last time

 

[sptrawler]

Possibly hoping the aussie dollar will finally devalue, now they have joined the money printing circus.

 

[wayneL]

Possibly hoping the aussie dollar will finally devalue, now they have joined the money printing circus.

I kinda hope so, I'm positioned pretty bloody well for that.

 

[over9k]

Bracket creep for the next 10 years

This would unironically be the best way to do it IMO.

But yeah. Many government funded *things* are going to simply be gone for years and years and years.

 

[wayneL]

MMT, will fix everything, 'cept the hyper inflation.

I'm investing in wheelbarrow factories.

 

[over9k]

The libertarian in me is actually kind of liking a lot of this (aside from the QE).

I've wanted a lot of the fat to be trimmed (defunded) for years.

 

[Dona Ferentes]

They won't have the balls to raise taxes, 'cept maybe GST.

So will be paid for by inflation... perhaps.

posted elsewhere; I like the thinking behind this guy
https://themarket.ch/interview/russell-napier-central-banks-have-become-irrelevant-ld.2323

we'll stumble on.

 

[Chronos-Plutus]

Just listening to the Treasurer and Finance Minister over the last few days; I think that their economic advisor's assumptions are way off the mark. International travel will not be coming back early next year; if it does, then we will just go back into lockdown again.

There is an obvious disconnect between their health advisors and their economic advisors. I would have thought that Treasury and Health would be meeting every few weeks, at least, to coordinate policy and forward plan. Obviously not.

 

[over9k]

Governments? Incompetent?

Naahhhhhhhh...

 

[qldfrog]

MMT, will fix everything, 'cept the hyper inflation.

I'm investing in wheelbarrow factories.

MMT? Is it the acronym for this new monetary policy with helicopter money and never paid back borrowing?
Genuine question

 

[qldfrog]

posted elsewhere; I like the thinking behind this guy
https://themarket.ch/interview/russell-napier-central-banks-have-become-irrelevant-ld.2323

we'll stumble on.

Nice find...

 

[sptrawler]

If the quantative easing, ends up with the aussie dollar at 40c, well that makes everything good, exports cheap, aussie manufacturing viable, a bit of collateral damage but hey thats life.

 

[Chronos-Plutus]

If the quantative easing, ends up with the aussie dollar at 40c, well that makes everything good, exports cheap, aussie manufacturing viable, a bit of collateral damage but hey thats life.

Don't imports become very expensive like TVs, fridges, cars and so on? Our miners and farmers might like the devaluation in the AUD because commodities that we export are priced in USD; however we don't manufacture much anymore and cost of products that we import will skyrocket. I suppose that such a devaluation in AUD over a prolonged period will direct business/commerce to manufacture domestically.

At the moment I have heard that somewhere between 70 cents to 80 cents USD per $1 AUD is a sweet spot for our economy.

 

[aus_trader]

At the moment I have heard that somewhere between 70 cents to 80 cents USD per $1 AUD is a sweet spot for our economy.

Well, we have touched the lower end of that sweet spot lately...

 

[Smurf1976]

MMT? Is it the acronym for this new monetary policy with helicopter money and never paid back borrowing?

Yes.

Modern Monetary Theory.

Not to be confused with methylcyclopentadienyl manganese tricarbonyl which is also commonly abbreviated to MMT.

 

[qldfrog]

Don't imports become very expensive like TVs, fridges, cars and so on? Our miners and farmers might like the devaluation in the AUD because commodities that we export are priced in USD; however we don't manufacture much anymore and cost of products that we import will skyrocket. I suppose that such a devaluation in AUD over a prolonged period will direct business/commerce to manufacture domestically.

At the moment I have heard that somewhere between 70 cents to 80 cents USD per $1 AUD is a sweet spot for our economy.

That's the common assumption valid for major economies but looking at Argentina's pesos, Argentina should be an export industrial juggernaut ...
Once your industrial manufacturing means have all been sent to the scrapyard,a devalued currency leads to more raw product exports, higher energy cost..oil..and poorer suffering population .
A lower aud will not help us,too late by decades in my opinion

 

[Chronos-Plutus]

That's the common assumption valid for major economies but looking at Argentina's pesos, Argentina should be an export industrial juggernaut ...
Once your industrial manufacturing means have all been sent to the scrapyard,a devalued currency leads to more raw product exports, higher energy cost..oil..and poorer suffering population .
A lower aud will not help us,too late by decades in my opinion

If we are going to take a longer term view to devalue our currency; the government needs to encourage manufacturing domestically now with incentives. For example: many want to transition to wind and solar for energy; so the Australian government should be assisting business to bring supply chains and manufacturing for windmills and solar panels to Australia ASAP. Once we have the industrial and manufacturing capacity, not just in the energy sector, built up domestically; then we can devalue our currency.