Discussion in 'Wealth Creation & Management' started by ozcopper, Apr 2, 2020.
the govt is LETTING you access $20k of YOUR money. think about that.
Come budget time....first cabs off the rank for tax / levy increase will be the usual soft targets of alcohol and smokes, followed by fuel excise going up to combat lower oil / petrol prices and therefore revenue decrease being received by Govt.....then in no particular order, any proposed tax cuts get dumped, GST goes up to 12.5 or 15% just to name a few.
Good luck to the LNP Govt unwinding / stopping all the free social subsidies they have handed out. If the LNP extends the additional social welfare payments (the new ones) beyond 2020, it'll become ingrained and an election loser for them as Labor will promise to keep everything in place regardless of how it will be funded....and the voters love them.
Got to admit, I see this $1,500.00 a fortnight wage subsidy as a beta test for a "universal basic income".....just needed the right economic conditions to try it out.
that is definitely a concern I have, Id say the government has that concern also, Labor have shown this tobe the case in previous times.
Likely be very hard to remove this with the greens and Labor kicking up a stink offering the money free, Likely do what they did last time and set up some sort of Environmental tax scam to fund it lol
GST to 15%.
Income tax increase.
Compulsory super increase.
GST on bullion.
Capital Gains tax increase.
Emergency services levy increase. https://www.revenue.nsw.gov.au/taxes-duties-levies-royalties/emergency-services-levy
Private health care increase.
Car Rego increase.
Stamp duty increase.
Contractor licence increase.
Politician allowance increase.
There's no free lunch.
govt transparency decrease
purchasing power of fiat decrease
living standards decrease????????
real estate values decrease??????????????????????????????????????????????
Surely the Australian government will just follow the lead of the US and monetise the debt.
MMT is here and as Oddjob suggested, UBI is being tested out. Nobody cares about debts or deficits any more, the voters sure don't so just print.
If you want save big $$$$ in your government super, stop paying disability insurance especially if you no longer have a job.
The Feds don’t need to, they’ve got more money than everyone else.
The States are a different matter.
The Aussie reserve bank cannot print money as freely as the US, as the Aussie dollar is not a reserve currency. If the Aussie reserve bank prints money, it de-values the dollar, but some of the debt in Australia is denominated in US dollars - so you can see the problem with printing Aussie dollars. the US is the reserve currency, so the US can go for its life and print away (until the ROW loses confidence in its reserve status).
The government will try to grow the economy so its growth outpaces the debt growth, shrinking it (in relative terms) over time. It also will need to address the issue of wealth distribution to avoid internal conflict (like what is beginning to occur in the US) - this may mean increasing taxation of the wealthy.
Only if the printing makes its way into the real economy. Money velocity is an important factor when assessing inflation risks. These stimulus packages and job seeker programs will lead to inflation, but they're just the tip of the debt iceberg.
Iron ore futures are above US$100/tonne again, thanks to issues in Brazil mines. Interesting to see if China wants Aussie ore or not... https://www.wsj.com/articles/brazil...s-iron-ore-market-as-prices-surge-11589982491
Beijing is trying to undermine the Australian economy in preparation for a takeover. But Beijing has big problems - China will soon enough be suffering bank failures and runs, more state owned enterprise failures and massive numbers of private business failures and bankruptcies and defaults. in the end there will be a breakdown in social harmony and internal civil unrest. Let's see how Pooh Bear likes that scenario.
Agree. In my view it's all hanging by a thread... let's say Trump gets re-elected, he may be able to push CCP to collapse, CCCP style. Think how different the world would be if China "balkanised". Otherwise we're quite furked. Just look at HK.
no doubt they’ll start rolling out Universal Basic Underclass too soon
All good though, just raise GST on most of the goods they buy with that money
I've always said that the way to deal with Chinese is to walk away and don't respond. What Australia needs to do is to establish closer economic and military relationship with south east asia.
True. Anecdotally and perhaps interestingly, Crispin Odey just sent a letter to his investors:
Crispin Odey, one of Europe’s highest-profile hedge fund managers, said that governments may ban private gold ownership if they lose control of inflation in the wake of the coronavirus crisis.
“It is no surprise that people are buying gold. But the authorities may attempt at some point to de-monetise gold, making it illegal to own as a private individual,” Odey wrote in a letter to investors seen by Bloomberg. “They will only do this if they feel the need to create a stable unit of account for world trade.”
“History is filled with examples where rulers have, in moments of crisis, resorted to debasing the coinage,” he wrote. Odey is not alone in betting that gold will benefit as high inflation follows the coronavirus crisis, although market measures of inflation expectations show that it’s far from a consensus view.
Absolutely. There are plenty of markets out there and we have plenty of things to sell.
Strategically, China has actually no business in Asia pacific. All the wars fought in china over the last 2000 years are with the following countries in decreasing order of frequency.
Fully agree. Which is why e.g., the Indonesia FTA came in with exceptionally good timing. Well played by Morrison govt.
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