Hi all
Wth all the turmoil in the world markets, banks falling over like a house of cards or getting bailed out, should we be concerned in Oz.
Yes the politicians are putting a very noted reassurrance that everything is ok.
However lets look at what could unfold currently our foreign debt is rising we are using debt to service debt and it is growing. Once it gets to a certain point the lender says no more borrowing. ABS has all the stats re: the billions in loan.
So what would a govt. do:
Print more money: this would have a significant effect on inflation so probably wouldn't do that.Drop in AUD$ would make exports more attractive so more money in
Low interest rates due to world circumstances makes it not real attractive to invest.
So where does the money come from Could the banks start calling in loans and cut there losses irrespective of vals etc.
Do you have to have a situation where a default has occurred before the bank take the property.
Property vals could be lower than what they are now and be worth less than the loans. eg US UK
As we have heard this situation is unprecedented.
Would you be prepared if the bank called in your loan?
I am no economist but this is concerning?
Cheers
SGOur government has no control over how much money is printed or what interest rates are, All this is decided by the all knowing all powerfull owners of Reserve Bank Australia.
There is already massive inflation in Australia, Billions are printed every year ! Why do you think a $50 000 house from 20 years ago now costs $400 000+ ?
There is a specail trick to help fix all that, Its when you take a bad debt or liability and repackage it as a AAA+ security asset, Sell it and then lend out another 10:1 more money based on that original bad debt
Its genious ! and no one will ever find out, shhhhhhhh
As for Australia's invincible ecconomy, I would'nt worry to much about it, Our shit is unsinkable, Our fundamentals are sound:
1: Personal Credit card debt has doubled to 50+ billion in that past few years
2: We have the most unafordable houses in the world
3: Our dollar is crashing (Currently 63c) This is excellent for our ecconomy and only affects things that are unimportant like food imports ect
4: Our wonderful governement is secretly taking money out of our future fund and giving it to our banks to stay afloat, I would'nt worry as we where not going to get the money from our future fund anyway, Much better for a greedy globalist to get his hands on it then us.
5: Carbon Tax, You know, Global warming, You know that evil thing called carbon dioxide, The most important ellement in our existance, You know, The one that allows photosynthesis to work, The element that all the plants in the world breath, The same element that comes out of our lungs when we breath, Well you are all going to be taxed on the most important gas that is on this world and if you don't like it your a terrorist working with alkida and will be tasered. But understand, The world governments had to tell us this global warming is caused by Carbon Dioxide (Even though its called by the sun getting hotter) because you need to be taxed more to pay for globAL debt.
There is a huge boom comming our way and if you wanna take advantage you need to get into the stock market right now ! to make some money before the next great property boom hits and you miss out !!! Next year the average property will cost $800 000 and the year after $1600 000
ive bought a tent ad a oil lamp so we can bunk together when society goes back to the middle ages.
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