Australia and money supply growth

Discussion in 'Markets & Economies' started by rbaggio, Feb 6, 2011.

  1. glam

    glam Member

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    Well many assets are thought to / or expected to / or historically have doubled every 7 - 10 years.
    Property is one example which is ofter touted as doubling every 7 - 10 years.
     
  2. rbaggio

    rbaggio Active Member Silver Stacker

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    Well well well ... From http://www.rba.gov.au/statistics/frequency/fin-agg/2011/fin-agg-0611.html

    "Other personal credit declined by 0.4 per cent over June, after decreasing by 0.1 per cent over May.

    Business credit declined by 0.7 per cent over June, after being flat in May.

    Over the month of June, M3 declined by 0.5 per cent and broad money decreased by 0.6 per cent."
     
  3. aleks

    aleks Well-Known Member Silver Stacker

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    Out of the 417 odd months Since 1976 of reporting figures in M3, twenty three of them have been deflationary

    Nov 1986 -0.1%
    Jan 1991 -1.0%
    Arp 1991 -0.2%
    Oct 1991 -0.4%
    Nov 1991 -0.2%
    Mar 1992 -0.5%
    Oct 1992 -0.1%
    Apr 1993 -0.1%
    Aug 1993 -0.4%
    Dec 1993 -0.1%
    May 1996 -0.1%
    Sep 1996 -0.1%
    Nov 2000 -1.0%
    Apr 2001 -0.3%
    Jul 2001 -0.4%
    Jun 2002 -1.2%
    Oct 2005 -0.1%
    Mar 2009 -0.2%
    Sep 2009 -0.1%
    Oct 2009 -0.1%
    Nov 2009 -0.2%
    Dec 2009 -0.2%
    Jun 2011 -0.5%
     
  4. Guest

    Guest Guest

    You need to start looking at things inversely.

    The Australian dollar has lost over 50% of it's buying power since 2000.

    Measure the fiat against commodities instead of other currencies and it'll become a lot easier to understand.

    The Aud is simply the best of a bad bunch. ALL fiat currencies the world over are tanking.

    The presentation of which has confused over 99% of the population into assuming they have 'gotten rich' because their commodities 'doubled' or more in 'value'

    Damn fools - all.
     
  5. CriticalSilver

    CriticalSilver New Member Silver Stacker

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    [​IMG]
    Source: http://dollardaze.org/blog/

    If you're peddling harder and harder and wondering why you are not getting ahead, the answer is pretty obvious.
     
  6. Agauholic

    Agauholic New Member

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  7. SilverSaviour

    SilverSaviour New Member

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    Have you ever heard of the CPLIE ? (Guide to Investing in Gold and Silver - Michael Maloney)
    They tell you the CPI is xx % but that doesn't mean it is.
    The CPI calculations are modified when items in the "basket" become too expensive.
    Items are either adjusted in value, or just removed altogether.
    Food, energy and oil keep getting reduced because they are going up !
    Anyway, my point is Gubment LIES about CPI, so don't believe it.
    Just ask some low income earners and pensioners on the street if they think its harder to get by nowadays.

    And if anyone actually believes that an expanding money supply is a good thing.. NO NO NO
    very very bad thing, pretty sure I don't need to explain it on this forum ! And already explained to some degree on this thread.

    Watch property over the next few years! we are so close to the top of the bubble.
    Sit tight, keep buying the shiny stuff, and trade it all for property when the time is right :)

    BTW, been reading this forum for ages, this thread made me finally register and post.
     
  8. SilverPhoenix

    SilverPhoenix New Member Silver Stacker

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    Welcome SilverSaviour

    Was it the Buzz lightyear cartoon or the expertise displayed. I've learnt a lot from this thread to. Not interesting - vital.
     
  9. aleks

    aleks Well-Known Member Silver Stacker

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    Very interested to see what the M3 growth figures are for Jul 2011, if we get a month to month contraction....

    I will be asking Where's my $900 debt funded cheque? Sorry make that a $1020 cheque.
     
  10. aleks

    aleks Well-Known Member Silver Stacker

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    M3 growth for jun 2011 has been amended to -0.6% and the RBA has plubished 0.7% growth for July 2011.
     
  11. aleks

    aleks Well-Known Member Silver Stacker

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    1.3% growth for M3 in August, everything is A-ok and back to normal
     
  12. rbaggio

    rbaggio Active Member Silver Stacker

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    Over the month of September, M3 grew by 0.8 per cent and broad money grew by 0.9 per cent. Over the year to September, broad money grew by 8.3 per cent.
     
  13. Fe Mike

    Fe Mike New Member Silver Stacker

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    That's not a good Tuesday. Did you at least back a winner?
     
  14. rbaggio

    rbaggio Active Member Silver Stacker

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    "Over the month of October, M3 grew by 0.4 per cent and broad money grew by 0.5 per cent. Over the year to October, broad money grew by 8.2 per cent. "
     
  15. notanother

    notanother New Member

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    I'm certainly no expert on this subject but perhaps the big growth spurt in money has been government borrowings to supplement the losses in gst and stamp duty since 08? The housing market and property in general HAS BEEN our economy for a lot of the last decade and that is now going out the window with bugger all new homes and commercial being built and no where near the number of house flips occurring. But social security still has to be paid, and from memory SS is 50% or better of the federal budget. SS money floods straight into the economy.
     
  16. rbaggio

    rbaggio Active Member Silver Stacker

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    All I know is, the money supply is growing at > 8% pa (which is MUCH higher than the published/official rate of inflation, to which all fixed incomes are pegged), and I'm getting much less than that in the bank account.
     
  17. aleks

    aleks Well-Known Member Silver Stacker

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    I love this thread :)
     
  18. Agauholic

    Agauholic New Member

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    fkn keynsians
     
  19. Different Here

    Different Here New Member

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    Credit growth is anemic by historical standards. The RBA has no choice but to keep cutting rates or risk all out deflation.
     
  20. rbaggio

    rbaggio Active Member Silver Stacker

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    "Over the month of November, M3 was flat and broad money grew by 0.1 per cent. Over the year to November, broad money grew by 7.1 per cent."
     

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