I don't think this bodes well for Australia at all. http://www.adelaidenow.com.au/money...r-millions-index/story-fn3hwldr-1225994666436
This coming week will prove interesting as petrol prices are set to jump 10cents a litre. As the price of petrol rises so too do the price of many other items. Reports from the Middle East show an oil refinery and pipe lines om fire in Libya. This will surely mean a rise for Texas Sweet Crude tomorrow when the markets open. Can't figure out JulieW why your post didn't attract more response. Hope the Silver Stackers havn't gone to sleep counting their silver. Enjoy your posts. Keep up the good work. Regards Errol43
Well inflation was always going to ramp up here, as a symptom of our ballooning money supply. Was just a matter of time. The inflationary pressures of a natural disaster here and there are just a kicker. http://forums.silverstackers.com/topic-6059-australia-and-money-supply-growth.html
Don'r worry. PM Gillard will be introducing a flood tax and a carbon tax, this will help all of those who are struggling to make ends meet.
People in my age group (32) only care about is their own personal lives which is composed of latest stuff, friends, beer, girls and party (not in any specific order). I am sure it is much worse in the younger generation. When people will start to wake up when they start wondering why they dont have enough to maintain there lifestyle. As Gerald Celente says "when people lose everything, they lose it". Thats when we will see real change from the culture of apathy gripping this country and hopefully that will cause a change in the Australian people from just caring about their own lives to caring about the direction of society as a whole.
Yes, it will be a shock. Older members will remember 1990, I remember my parents sick with worry as their home loan interest rate rose to 19% and businesses went to the wall one after another. The current generation of teens - 20 somethings were brought up in Australia's greatest boom time, and have no concept of what it is like in a time of high unemployment coupled with impossibly high costs of living. The Entitlement Generation (which is a cruel name, kids are a product of the environment that they are raised wthin) is not prepared for such a scenario. It is even worse now, back then we weren't spending hundreds of dollars a month on cell phone and broadband bills, and electricity was cheap, and rents were low enough that renting a pad was quite affordable despite high interest rates. In 1990 a kid could leave school, borrow a little off dad, find a cheap shop and open a record shop or a second hand book shop and be a small business operator..... No chance of that now, no such thing as a "cheap shop", even traditionally bohemian places like Newtown or Brunswick St. cost a fortune now.
I filled up with V-Power yesterday $1.609 per litre. I think its only going to start getting worse from here on. Might be time to execute my proper food stacking plan, the 50kg rice was a temporary thing to see how things will go. Slam
Article quotes a banking/insurance executive. Concern for the little guy? Really? Or are his numbers not being met? The cynic in me was just waiting for the sales pitch (income protection insurance, life insurance, blah blah blah). I'm one of those 3.7 million with little traditional bank savings as my goal is to move all my savings into PMs eventually. Mr. O'Farrell can stop being "concerned" for me.
Last time petrol was high in Aus it didn't seem to matter. Big 4WD sales stayed high, and the economy seemed to tick along ok. I think the general rising cost of living won't bring us down. I'll believe that people's budgets are maxed out when I stop seeing streams of people walking away from the restaurant across the road with coffees in their hands. The general population has had is easy for a while, and don't have a proper concept for tough times. That's why there has been a constant whinge but no action for the last 7 years. The big hit will come in the form of a china meltdown or a dollar collapse. People will know what a tight budget is. Fancy buying coffee, yet no having savings.
The inflation figures well above 3% should ring alarm bells for the debtors. It means 2011 will not see interest rate relief at all, but more likely further rises. We're still below the national average and have plenty of room to move, no matter how much the debtors squeal like little piggies at their lifestyles becoming unaffordable. The one damn good thing about a recession like this is that it's an economic cleansing process and very well long overdue. I remember seeing this lead up during the late 80s. I know what's coming next and it's going to make the 90s recession look like kindergarten IMHO.
Another grocery chain (Metcash) reporting price deflation on dry and fresh groceries: Source: http://www.theaustralian.com.au/bus...e-deflation-hits/story-e6frg9h6-1226014619090
Who knows how long before it gets really bad. Paying off debt should be a priority. Though for many people it's probably already too late.
I know you were using the analogy of Aus's post but forget the huggies - go modern cloth nappies, thousands cheaper in the long run.
okay, i've been toying with this dilemma - buy PMs ('cause it's fun) or pay off the debts. Well while i'm on the higher salary i'll focus on the debts. Cheers NM
