We have all gone away fro the fact that Australians are the wort savers in the world per head of population …
In the old days you wouldn't get a home loan unless you proved that you were a good saver … go figure.
Today you can get a 110% home loan that will keep you broke forever … great strategy.
All our politicians are flying around the world but not dealing in our own back yard … YES that's you Kevin 767
Where is the incentive to say????????????? forget about NEGATIVE gearing why not give Aussies tax incentives for SAVINGS accounts.
IMHO Gerry Harvey is part of the problem because he gives 5 year loans to people he knows will never be able to pey it back and he has made a BILLION dollar from this WOW what a hero ????? go figure …….
The world is in an implosion mode because of bad credit … doesn't that this mean we have no money or no cash … and that is where the saying comes from … cash is king.
Me you or any guru cannot predict the future other than admitting that if we continue on this path there can only be doom ahead … I am not negative here … prove me wrong and show me where the prosperity lies in Assets v's Liabilities … lets stop talking about tops and bottoms and lets start working on solutions for the future of Australia and the world not to mention our children 30 years from now …
D
I agree that there is little incentive to save. Whatever you earn in interest is calculated as part of your taxable income. And if that interest pushes you over into a higher tax bracket then you end up paying even more so we do need tax concessions on savings accounts.
As far as our economy is concerned it is now mostly based on consumer spending. Back about 50 years or so the strength of our economy was measured by our manufacturing industries and there was no such thing as credit cards. If you wanted to buy something then you needed the cash to pay for it right then or you had to put it on lay by. Just about the only thing you could get a loan for was a house and even then you would have had to pay a deposit.
Fast forward 50 years. Our manufacturing industries are now a shadow of themselves and the strength of our economy is now measured by consumer spending and how much we spend at big department stores. Credit has been sold to us a lifestyle with banks and other institutions handing it out like there was no tomorrow and gorging themselves on the interest rates they charge. Want that big screen plasma or LCD television? Don’t let the fact that you can’t afford it stop you. They want you buying things that you don’t really need with money that you don’t have and our economy is really in a precarious position because of this.
The government will always have cash but what is it really worth?. All they do is keep printing more of the stuff but no longer have any asset like gold to back it up which creates higher inflation. In Germany during the 1920’s they had hyperinflation. People would use money as fuel for their stoves because it was cheaper than using the money to buy firewood. The world now is vastly different and such a scenario is unlikely to be repeated but there are consequences to simply printing money whenever you need it.
I recall just over a year ago attending a seminar where the presenter said that the housing crisis in the US was only a minor issue for us here in Australia. 12 months on and the ripple has turned into waves of financial bad news for just about everyone.
The days of 110% finance are well over.
I can remember the old days of saving money in the bank and then paying interest to the ATO in advance for the next years interest etc.
I just lost interest in doing that."All our politicians are flying around the world but not dealing in our own back yard" But that's understandable, Remember he has all those important NWO meetings to attend.
Has anyone ever thought that maybe they WANT everyone in debt and they WANT everyone to be a good little Broke Environmental Protection, Terrorist hating Nut ? The more stupid, broke and sidetracked the public are, The more they are withheld from any normal sense of reality, That's how criminal banksters steal trillions of dollars without anyone ever knowing.
As for hyperinflation being impossible, lol. Go to wikepedia and type in hyperflation, They have examples of 30 different countries experiencing hyperinflation in the past 100 years.
There is even numerous countries that have experienced it since the 90's so YES it is infact very possible that it will happen.
Peter Shiff is predicting hyperinflation in the US. No wonder with the amout of money they are printing. You know, Once people stop buying there T bills they are bankrupt, Thats when there printing presses will have to go like mad and inflation will implode there country to pieces.
The dollar rally is not going to last much longer, Thats when we will see some interesting things happen.
Also note that the great depression didnt really fully start untill 2 years after the 1929 stock market crash.
Thats gives us untill 2010-2011
Also another intresting thing, Anyone know Gerald Celente ? He is the guy who runs Trends Research and predicted a lot of things like the 1987 stock market crash, the 90's recession, tech bubble crash ect.
He is saying he is pridicting wide spread tax and food riots by 2012, Take a look, It was up on FOX news.
Do not forget the CPI at say 3% so when you get your pitiful interest payment then subtract the Tax payable and CPI loss and your savings are going backwards.
I stopped saving money in the early 90's due to having to pay tax on interest earned on saved already earned taxed money.When I lived in the UK the government introduced tax-free savings accounts with a higher than usual rate of interest, that were available to everyone – they were called "TESSA's". I think they still have something similar and offer a higher than usual rate of interest. You have to keep the money in them for a fixed number of years though, I think it was 7 or something like that. Otherwise you lost the interest-free benefits.
interesting thread.
I still can't believe that the entire world economy is falling due to the credit binge in the US. Surely this wasn't the only foundation for modern civilization.
Neither do I understand the solution offered by the governments of the world: ..
..that the way to improve things is print heaps of cash and throw it at the people to buy more consumer crap they don't need and is basically worthless.
What the hell is financial stimulus going to do when handed to consumers dazzled by shiny techno gadgets? The very people who caused this trouble with credit they couldn't afford.
And the savings comments here mirror my own thoughts.
Surely an economy needs to be built on value adding industries and valuable assetts that actually have lasting worth and add to the progress of the world.
How does buying worthless junk with credit people can't pay for become the underlying foundation for capitalism,?
or is a high number of transactions just the easy way for governments to tax to the max.
F F's sake.
Stu
The western world has turned into a population of mindless consuming zombies.
Have you heard the story of the wall mart worker who was killed in the black friday sales ?
The Zombies trampled him to death to get there cheap Xboxes and then refused to stop shopping when police came
Maybe David Rockerfella and his nwo are right, Maybe we need to reduce the world by 80% to get rid of all the zombie scum
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